Category: business | 商業 | 상업 | ビジネス

My interest in business or commercial activity first started when a work friend of my Mum visited our family. She brought a book on commerce which is what business studies would have been called decades earlier. I read the book and that piqued my interest.

At the end of your third year in secondary school you are allowed to pick optional classes that you will take exams in. this is supposed to be something that you’re free to chose.

I was interested in business studies (partly because my friend Joe was doing it). But the school decided that they wanted me to do physics and chemistry instead and they did the same for my advanced level exams because I had done well in the normal level ones. School had a lot to answer for, but fortunately I managed to get back on track with college.

Eventually I finally managed to do pass a foundational course at night school whilst working in industry. I used that to then help me go and study for a degree in marketing.

I work in advertising now. And had previously worked in petrochemicals, plastics and optical fibre manfacture. All of which revolve around business. That’s why you find a business section here on my blog.

Business tends to cover a wide range of sectors that catch my eye over time. Business usually covers sectors that I don’t write about that much, but that have an outside impact on wider economics. So real estate would have been on my radar during the 2008 recession.

  • Drop shipping + more stuff

    Is This the End of Drop Shipping from China? | Jing DailyThe profitability and success of the drop shipping model comes from a price disparity between the products manufactured in the Western Hemisphere and those from China, but also from a shipping price disparity. In other words, if the US government increases tariffs on Chinese products, or raises shipping rates for packages arriving from China, the whole model becomes noncompetitive. And this is exactly what has happened. This makes the likes of Shopify look like a Ponzi scheme facilitator. The UK edition of Wired magazine had an interesting article on the weird world of drop shipping: ‘It’s bullshit’: Inside the weird, get-rich-quick world of drop shipping | WIRED UK – In some ways drop shipping feels old to the likes of me. It reminds me a lot of TV shopping and multi-level marketing in terms of persistent agile middle men. This article goes into the get rich quick culture of drop shipping. What struck me was the extraordinarily negative view of the future that these people had. There was a dystopian emptiness at centre of everything that the drop shipping bros did. From this perspective drop shipping bros are different to their peers that would have sold time shares, life insurance, photocopier leases or even crypto currency. It also shows that Chinese manufacturing and business practices haven’t improved over the last decade. The only piece that these two articles miss is the the supply side postal subsidy that the Chinese government gives to domestic exporters. This fuels everything from drop shipping to Chinese Amazon marketplace vendors and Chinese DTC apparel vendors who advertise on Facebook. More on Chinese online marketplaces that fuel drop shipping here.

    Mediatel: Mediatel News: “Mind-boggling”: the industry reacts to ISBA/PwC reportIn a study of the “premium parts of the programmatic market”, including fifteen major advertisers, 300 distinct supply chains and 12 premium publishers, just 51% of advertiser spend on digital inventory was going to the working media. Meanwhile, 15% of marketing spend was disappearing into an “unknown delta”, and was unattributable anywhere in the supply chain. In response to the report’s findings, the market was warned that if it could not deliver standards and transparency, advertisers may take their money elsewhere and the Competition and Markets Authority might even intervene – the content came as little surprise, though it is nice to have numbers put to this. Timing-wise this is a body blow to the media industry. Its also concerning given the disruption-driven flight to digital by marketers – I don’t think you’ll see better multi-channel brand building media plans, but a greater focus on direct response instead. More here Mediatel: Mediatel News: ISBA/PwC: 15% of programmatic supply chain costs ‘unattributable’ 

    Hamilton Bohannon: Disco Disciple & House Precursor | Attack MagazineBohannon was essentially creating dub mixes of soul records for club DJs. Except he created them with a band, not via studio equipment. In pioneering this minimal, dance-floor focused aesthetic, Bohannon pre-dated loop-based house records and the repetition of acid house and loop techno. On his Worldwide.fm tribute to Bohannon, Francois Kevorkian described the drummer as: “One of the most brilliant and original artists of his time who helped define as well as forge the template for the sound of dance music”. Bohannon, along with many other innovators, contributed to the development of what would lead to house and techno a decade later

    How China Has Capitalized on the Coronavirus | The National InterestChinese government’s alleged efforts to hide the facts about the coronavirus. This process is necessary. Equally important, is the imperative to fix a national security vulnerability that the pandemic has revealed: China’s quiet net of influence over the agencies and international bodies that America has relied upon in the post–World War II era. Here, the Center for Disease Control’s (CDC) early response to the coronavirus is an unfortunate object lesson. Bad assumptions about the good faith of the Chinese government can have devastating consequences – this is going to bring all kinds of unintended consequences

    The Other Pandemic: Why US Youth Continue to Use Juul Despite Reported Drawbacks | The National Interest – mirrors past youth perception on cigarettes

    [Letter from Hong Kong] Dream State, by Yi-Ling Liu | Harper’s Magazine – really great article on Hong Kong and some of the percularities and power of Cantonese as a language

    Apple’s repair policies are utterly shameful and should be outlawedDigital waste is a huge problem, and Apple is a major contributor to it. All of these old MacBooks, iPhones, iPads and other products just sit around in the deep recesses of our closets, or worse, at the bottom of landfills. The fact that the FTC is willing to listen to right-to-repair advocates and examine the potential for policy change is promising

    The Quietus | Features | Tome On The Range | Split: What Love Island Tells Us About Culture & Class In Modern Britainresearchers from the London School of Economics, Sam Friedman and Daniel Laurison, published a book called The Class Ceiling, summing up years of research on exactly this relationship between cultural aspects of class and social mobility. They were given unparalleled access to Channel 4 and interviewed a top senior commissioner at the broadcaster to find out how he got to the top of the company. Mark (not his real name) was honest about many of the economic privileges that helped him along the way: a private school education, a place at a top university and the ‘bank of Mum and Dad’ to secure London rent while he navigated the precarious world of the creative arts. He recounts how those without this crucial safety net ended up having to take safer and more stable jobs within the industry, such as more administrative roles but with less career progression. In his own words, without such privileges the risk of going for the top job would have been like ‘sky diving without a parachute’

    Penguin Classics Cover Generator – create your own classic book cover

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    If this blog was a Penguin paperback….

    Aspirational Femininity in Contemporary China – How Brands Can Better Engage – trying to deal with alpha female aspirations

    What happens when a major media empire shuts overnight? | Digital | Campaign Asia“Primetime segments, which aired key programmes aligned with the advertising of prominent brands, are now no longer available. Brands will feel the pinch with the redistribution of advertising spend, loss of audience reach and reallocation of audiences against different channels.”

    HONG KONG: What NXT did next… | What Hi-Fi?3M uses its bending wave touch screens in the development of advertising and kiosk touch panels, while with its partner Qinetiq NXT’s producing solutions for use in transport applications such as high-end ex ecutive jets and even some locations on the London Underground.Work is also going on with printed electronics and other unusual applications: luxury birthday cards from Hallmark now use NXT technology to play high-quality greetings music when they’re opened! – NXT originally came out of work done on Saab fighter aircraft to reduce cockpit noise

    Nintendo: Switch it up | Financial Times – interesting analysis on Animal Crossing and the Nintendo Switch. If the Wii taught us anything , it is that Nintendo marches to its own beat. Its games and audience are different to PlayStation and Xbox

    Tencent surveils foreign accounts to aid domestic censorship | Financial Timessurveillance of private messages is also applied to accounts registered to foreign mobile numbers, in order to build up its repository of sensitive files and thus better censor China-registered accounts. The research shows how Tencent not only conducts censorship, but also informs and develops its own censorship strategies. In addition, the company is likely to support the government’s political research. “If the Chinese government has any need to regulate public opinion, they will certainly use the database of politically sensitive content by WeChat” to learn from, said a Beijing-based professional who has worked closely with the government. The professional added that WeChat’s database of sensitive content was “probably the most comprehensive and updated one in China”.

    Wink to customers: Pay us or your stuff breaks next week ↦ – a lot of the functionality shouldn’t need the cloud in the first place. Instead it opens customers to this kind of blackmail

    360 Deep Dive: Today’s Broadcast TV | Park AssociatesTV antenna usage in US broadband households jumped to 25% in 2019 and is expected to grow as COVID-19 has kept consumers at home. Content styles and genres grow and change, while business models and transmission technologies evolve and cause disruption, but nothing changes the end consumers’ goal: to find video that they want to watch. Secondarily, consumers want to find that content in a manner that is affordable and easy

    Chinese EV startup accuses Tesla of ‘bullying’ over IP lawsuit – Nikkei Asian Review – Chinese engineer who moved to Xpeng allegedly walked out with code

    Future of Our Global Economy: The Beginning of De-Globalization – DER SPIEGELIndustrial machine producers, of the kind that make a huge contribution to the German economy, have begun shifting priorities from making the supply chain as cheap as possible to making it as secure as possible – this sounds more like an acceleration in change rather than radical change due to COVID’19

    Britain’s wartime generation are almost as pro-EU as millennials | LSE BREXITthe prevailing political environment shapes the long-term opinions of those in their formative years. Given the current ubiquity of the Brexit debate, today’s arguments and events surrounding integration will almost certainly have a significant impact on the most recent generation, namely those born after the millennium. In exactly what way these debates will shape public opinion, however, remains to be seen. – Hmm, when I think back to the nasty Tory narrative of the Thatcher years that put Blair and Brown into power, I wonder if this won’t make them even more right wing….

    WPP wins Unilever media duties in China | Media | Campaign Asia – Unilever and WPP also have a long history. More recent connections include a WPP ‘Team Unilever’ in-house partnership launched in Singapore in 2018 and led by Mindshare’s Sudipto Roy, and the appointment of former Unilever CMO Keith Weed to the WPP board in 2019.

    Common Enemy | Harper’s Magazine – interesting article about Taiwanese and Hong Kong resistance to the Chinese Communist Party

    The Promise—and Risk—of a Career in TikTok – VICE – but what’s the commercial value of their content?

    The Perfect: T-shirt – according to Kim Jones, Samuel Ross and David Fischer

    Judge Timothy Kelly Stunned by Facebook’s Violation of Law | Law & CrimeThe allegations in the Complaint reflect many ways in which Facebook purportedly acted improperly. Some of these allegations represent discrete and poorly considered decisions, such as allegedly encouraging users to provide phone numbers to better secure their accounts, but then using those same numbers for advertising without telling users beforehand. Others appear to reflect Facebook’s willingness to deceive its users outright, such as allegedly telling the public that it would not share their personal information with third parties when it was continuing to do so. And still others represent systemic oversight failures, such as allegedly allowing third parties to access users’ personal information without the users’ knowledge and without controlling how those third parties would use the information. Most of these allegations represent violations of the 2012 Order; several are new violations of law. But all of them suggest that the privacy-related decision making of Facebook’s executives was subject to grossly insufficient transparency and accountability

    Even After A Large Increase Due To Half-Life: Alyx, Less Than 2% Of Steam Users Own VR Headsets – I was expecting a much higher adoption rate amongst Valve users due to its serious gaming focus and exposure to Chinese gamers

  • Japanese environmental sounds + more

    The meticulous design of Japanese environmental sounds – ‘kankyō ongaku’ – a strand of Japanese minimalism that emerged in the 1980s to soundtrack the architectural wonders and commercial advancements of the country’s economic boom years. In the west we put up with muzak; but the Japanese environmental sounds are highly engineered minimalistic experiences

    Visualizing the Most Loved Brands, by Generation – you do have to wonder about of the quality of the data

    The Internet Used to Make Us Smarter. Now, Not So Much. | Douglas Rushkoffwe too easily lose sight of what it is that’s truly revolutionary. By focusing on the shiny new toys and ignoring the human empowerment potentiated by these new media — the political and social capabilities they are retrieving — we end up surrendering them to the powers that be – I think this is as much about how is online as the online tools

    macos – How to find cause of high kernel_task cpu usage? – Ask Different – this is quite surreal TL;DR charge your laptop on the right hand side – what on earth is going on here.

    #SafeHandFish – I love this idea of repurposing packaging, but I wonder where they got the blue lids from?

    Amazon makes books, video, music and more available for freeAmazon sees if it can get UK consumers to adopt its services during the COVID lock-in – this is all about habit building

    Imagination Commits to Keeping U.K. HQ – For Now | EE Timesunderlying this is very likely to be a worry for Imagination that a move to China could end up with its intellectual property owned by China. And that could worry its major customers, including Apple  — a customer that the now former CEO Ron Black worked hard to win back

    Luckin fraud admission leaves more questions than answers · TechNodeusing part of his handsomely-valued Luckin shares as collateral to take out loans, Lu Zhengyao has made away with in excess of $500 million. That amount would have been much, much smaller if Luckin’s numbers were accurately reported. All this makes it hard to believe that COO Liu Jian would commit fraud without the actual or constructive knowledge Chairman Lu Zhengyao, CEO Qian Zhiya and CFO Reinout Hendrik Schakel. My present hypothesis is that Liu, as a long time errand boy for Chairman Lu Zhengyao, has taken the fall to buy time for Luckin’s management to work out their next move – interesting read. It does make you wonder about other Chinese firms

    Booking Holdings to announce lay-offs after securing $4bn loan | Financial Times(Glenn) Fogel told the 530 employees on the call, which was first reported by the Dutch newspaper NRC, that bookings on the travel company’s platforms had dropped 85 per cent year-on-year in the preceding week and that the loss in revenue because of reduced rates at hotels was even greater. – I’d imagine that’s going to blitz their Google advertising spend reputedly 10 billion dollars a year pre-COVID

    Why China is losing the coronavirus narrative | Financial Times – just wow, it won’t affect public opinion that much, but will affect government and wonks : When Roger Roth received an email from the Chinese government asking him to sponsor a bill in the Wisconsin state legislature praising China’s response to coronavirus, he thought it must be a hoax. The sender had even appended a pre-written resolution full of Communist party talking points and dubious claims for the Wisconsin senate president to put to a vote. “I’ve never heard of a foreign government approaching a state legislature and asking them to pass a piece of legislation,” Sen Roth told me last week. “I thought this couldn’t be real.” Then he discovered it was indeed sent by China’s consul-general in Chicago. “I was astonished . . .[and] wrote a letter back: ‘dear consul general, NUTS’.”

    ‘A level playing field’: digital giants will have to pay for news | Sydney Morning Herald – interesting move ‘Josh Frydenberg will impose a mandatory code on the digital giants after losing faith in their work on a negotiated settlement with Australian media companies to reimburse them for news and other content.’

  • TSMC to SMIC + more things

    Huawei is gradually shifting chip production from TSMC to SMIC  – this is China decoupling from western supply chains. TSMC to SMIC also has the additional benefit of damaging Taiwan’s leverage on China. More on Huawei here.

    Plastic surveillance: Payment cards and the history of transactional data, 1888 to present – Josh Lauer, 2020 – interesting but hardly surprising conclusions from data-mining

    ‘Furious and scared’: Long before COVID-19, these families knew Canada’s long-term-care system was broken | The Star – issues with Chinese government-owned companies and a complete lack of accountability

    HNA in chaos as internal divisions erupt in public | Financial TimesOne investor who sought to buy a large real estate portfolio from HNA in late 2018 said that the deal fell through because it was no longer clear who was in control of the assets – this is interesting when you start about thinking allegations of all Chinese businesses (like Huawei) essentially being state-directed businesses. Especially when you consider it in the context

    Inside Icebucket: the ‘largest’ CTV ad fraud scheme to date | Advertising | Campaign AsiaWhite Ops has uncovered what they report to be the largest-ever connected TV fraud operation in history, affecting more than 300 publishers and millions of dollars in ad spend.

    Local TV Is Back (With an Assist From Coronavirus?) | The National Interest – yet broadcast TV isn’t in mix when experts talk about advertising at the present time

    What really happens to the clothes you donate | Macleans – interesting complex supply chain for fibres and nothing. Also interesting how grading of garments stayed within the Asian diaspora formerly based in the British colonies of East Africa

    Sorry Huawei, the P40 Pro without Google apps is just too broken to live with – probably one of the best rundowns on how the lack of access to Google mobile services is handicapping Huawei handsets

    China’s top chipmaker says it can match Samsung on memory tech – Nikkei Asian Review – how much of it is stolen technology?

    Contingency planning: where should brands be moving their ad spend? – GlobalWebIndex – an interesting read but needs the additional lens of channel effectiveness as well

    Cam Girls, Coronavirus and Sex Online Now – The New York Times – it will be interesting to see if it continues on post crisis

  • How brands grow part 2

    I’ve been re-reading How Brands Grow Part 2 by Jenni Romaniuk and Byron Sharp. Part 1 is well known. It is the go-to bible for consumer marketers written by Sharp.

    part2
    How Brands Grow Part 2 by Romaniuk and Sharp

    In part 2 Sharp and Romaniuk looked at business-to-business marketing, luxury marketing and influencer marketing. The things that I found particularly interesting in part 2:

    • The heuristics around business-to-business marketing are remarkably similar to consumer marketing. This means that even in B2B marketing, the importance of brand building is paramount. This is very much at odds with the way in which business-to-business marketing is practiced
    • Part 2 provides a much needed dose of pragmatic realism on influencer marketing. Influencer marketing carries the most weight with people that would be interested in the brand anyway. It is less efficient than marketers seem to believe. If you look at Unilever at the end of the Keith Weed era; influencer marketing took an outsized proportion of marketing spend that could not be explained in a world of zero based budgeting (ZBB) that the company had brought in
    • Romaniuk and Sharp manage to explain why luxury brands need sustained advertising to sustain their standing despite the very nature of luxury being hard to find (and so discover) unless you’re part of the cognoscenti

    Regardless of your marketing area both part 1 and part 2 will help you to be a better marketer. What immediately becomes apparent is that empirical research done by Sharp and company outlined in part 1 and part 2 are best viewed selectively.

    Fads become orthodoxy in the face of empirical evidence to the contrary. A classic example would be the headlong dash into digital regardless of its role in the marketing mix.

    It would be great if these books were paid attention to as well as read by marketers.

  • Misleading ad metric + more news

    Facebook executives ‘knew for years’ about misleading ad metric | Financial TimesThe lawsuit claims that Facebook represents the potential reach metric as a measure of how many people a given marketer could reach with an advertisement. However, it actually indicates the total number of accounts that the marketer could reach — a figure that could include fake and duplicated accounts, according to the allegations. – Facebook’s misleading ad metric isn’t news in its own right. What’s interesting is that the FT article goes on to claim that potential audience size in some states were bigger than publicly available data and seemed nonsensical in comparison to say census data

    UK lays out plans for legal e-scooters, medical drones and more transportation innovation in test cities | TechCrunch – if electric scooters is going to be anything like what I saw in Paris, it’ll be carnage

    Xenophobia amid the coronavirus pandemic is hurting Chinese immigrant neighborhoods – Voxanti-Asian xenophobia and racism have become a bigger issue around the world as a result of Covid-19. As Nylah Burton reported for Vox, in major cities like Los Angeles, Seattle, and Toronto, East Asians have been targeted — from racist comments made by TSA agents to verbal street harassment. Meanwhile, Chinese restaurants across the globe say they are struggling for business because of widespread misconceptions about the “cleanliness” of their food – exceptionally dark reading

    Time Out rebrands to Time In as coronavirus ‘social distancing’ takes effect | The Drum – circumstance encouraged Time Out to rebrand, but the strong equity they have in their brand allowed them do so successfully, like Pizza Hut’s Pasta Hut or the Google Doodle

    Madison Avenue Insights | Creative agencies: winning the battle but losing the warCreative agencies have mastered the requirements of integrated campaigns, from TV to online video, websites, Facebook, Instagram, ad banners and e-mail marketing. It’s a pity, then, that this victory is being undermined by agency price-cutting strategies that leave agencies understaffed and underpaid. Senior agency executives need to create winning business practices – they’re losing the business war. – great read by Michael Farmer. I suspect the piece that’s missing is the devastation wrought by procurement

    Russian influence operations using netizens in Ghana to target African Americans – GrapfikaThe operation used authentic activists and users, fronted by an ostensible human rights NGO, to covertly propagate an influence campaign. It is not the first time such an attempt has been made, but the tactic is of concern. The unwitting individuals co-opted into the operation bear the risk of reputational or legal jeopardy; indeed, CNN reported that the Ghanaian operation was raided by law enforcement as a result of their online activities. For the human rights community, the risk is that genuine NGOs may be misidentified as being involved in influence operations by accident or malice, and there is also the danger of tarnishing the reputation of important work and organizations across the field – its a fascinating read – a mix of information ops, subterfuge and offshoring. The west African link is interesting

    The Public Interest and Personal Privacy in a Time of Crisis (Part II) – Google Docs – part two of an essay by a Chinese academic- l linked to part one in this post

    Between Privacy and Convenience: Facial Recognition Technology in the Eyes of Citizens in China, Germany, the UK and the US by Genia Kostka, Léa Steinacker, Miriam Meckel :: SSRN 

    Lao Dongyan, “Artificial Intelligence” – Reading the China Dream – piece on biometric recognition