Ged Carroll

Category: china | 中國 | 중국 | 中華

Ni hao – this category features any blog posts that relate to the People’s Republic of China, the Chinese communist party, Chinese citizens, consumer behaviour, business, and Chinese business abroad.

It is likely the post will also in other categories too.  For example a post about Tong Ren Tang might end up in the business section as well. Inevitably everything is inherently political in nature. At the moment, I don’t take suggestions for subject areas or comments on content for this category, it just isn’t worth the hassle.

Why have posts on China? I have been involved in projects there and had Chinese clients. China has some interesting things happening in art, advertising, architecture, design and manufacturing. I have managed to experience some great and not so great aspects of the country and its businesses.

Opinions have been managed by the omnipresent party and this has affected consumer behaviour. Lotte was boycotted and harassed out of the country. Toyota and Honda cars occasionally go through damage by consumer action during particularly high tensions with Japan.

I put stuff here to allow readers to make up their own  minds about the PRC. The size of the place makes things complicated and the only constants are change, death, taxes and the party. Things get even more complicated on the global stage.

The unique nature of the Chinese internet and sheltered business sectors means that interesting Galapagos syndrome type things happen.

I have separate sections for Taiwan and Hong Kong, for posts that are specific to them.

  • Battle for open platforms + more stuff

    Epic’s battle for open platforms ignores consoles’ massive closed market | Ars Technica – and the majority of games played on Fortnite are played on consoles. Epic’s battle for open platforms rings hollow. More gaming posts here. More on other (more legitimate) battles for open platforms here. Epic’s battle for open platforms is about extra revenue not consumer benefit. They’ve deliberately picked a fight for some reason that won’t become apparent yet. One also has to view Epic’s battle for open platforms through its Chinese ownership as well

    Why marketers should embrace Share of Search as a metric | WARC – “The SoS calculation itself is simple. Calculate a rolling 12-month average of the various brands to be analysed, including your own. Total this. Divide each individual brand’s 12-month rolling average by the total and turn into a %. This is Share of Search, using Google Trends data.” More here in an interview for Contagious by Les Binet. Why share of search is a vital marketing metric | Contagious – The internet has made it almost impossible to accurately measure brands’ share of voice and the world seems perfectly content with that trade-off, so marketers have been forced to look for a replacement metric fit for the digital age. Share of search, it seems, might just fill the void…. Binet however is tentative on the tantalising prospect that share of search can give marketers an almost immediate insight into how a brand-building ad will perform over the long term. ‘Kind of,’ he says, when asked if share of search could show brands the value of emotional advertising in days instead of years. ‘You can to some extent use it to get a prediction of the long-term effects in the short term,’ he says, ‘but it may not work in every category. It tends to work best in categories with considered purchases.’ What most excites Binet about his research, though, is that when he looked at the effects of advertising on share of search he saw – consistently across all categories – that around 40% of the impact was felt in the short term (the first month) and around 60% of the uplift was delivered over the long term (the following two years). ‘That 60/40 ratio is one I’ve seen before,’ he jokes, alluding to his earlier work with Peter Field, The Long and the Short of It, which established a 60/40 rule for brands looking to divvy up their marketing spend between long term brand building ads and short term activations. ‘So the share of search analysis provides a further piece of independent, empirical evidence for the hypothesis we have about how advertising works.

    Brand is a strategy | WARC – Gartner recently announced that, partially at least, in response to the pandemic and its associated uncertainties, CMOs now rank ‘brand strategy’ as their top priority. As with any survey, we should consider the research skeptically — but since CMOs largely direct how they spend their budgets, it’s worth the industry that serves them considering what they might be looking for assistance with.  The survey was interesting beyond the headlines. Last year the same group considered analytics their most vital marketing capability, which highlights both the increased scrutiny that marketing faces to be accountable and the endless pendulum that swings in the industry, between brand and performance. And they are going into prioritisation of brand just at the time when the board will squeeze them on performance

    Google ends direct cooperation with Hong Kong on data requests over national security law – The Washington Post – Google is blocked in mainland China, but accessible in Hong Kong. By refusing to review Hong Kong government requests for data through its normal process, Google seems to be acknowledging the broad reach the law gave China into Hong Kong. – Contrasts with the kind of dance that HSBC and Swire seem to be doing

    Strategist’s Digest: the gulf between corporate values and company culture | Contagious – Over 80% of large companies publish on their websites the values they profess to live by, according to research. Integrity was the most often listed value, claimed by 65% of all companies. Collaboration came second, with 53%, and customer focus was third at 48%. But do these values make a difference to the companies’ culture and how they behave? The researchers used Glassdoor reviews, posted by employees, to find out. After analysing 1.2 million reviews for more than 500 large companies, they found no significant correlation. In some cases there was even a negative relationship between core values and the company culture as reported by employees. And more at the Sloane Review – | When It Comes to Culture, Does Your Company Walk the Talk? | Sloane Review 

    Jimmy Lai/Hong Kong: buy orders on democracy | Financial Times – Next Digital is a benchmark for resistance to Chinese authoritarianism in other ways. Views on its digital platform double when there are protests, to an average of 80m a day. Next Digital has survived constant mainland pressure, including the withdrawal of its underwriter just before its listing and advertising boycotts by Chinese companies. The shares trade at a just over 0.3 times book value. Investors with ethical policies may have awkward questions for HSBC and Standard Chartered. These UK-listed banks have expressed support for the law under which Mr Lai was detained. The arrest of a chief executive warns foreign multinationals to locate elsewhere.

    How Car Companies Engineer the Sounds of Their Doors to Imply Safety – engineering to design every aspect of the experience

    Anti-mask group in Tokyo slammed for “cluster festival” | SoraNews24 -Japan News – thankfully only a fringe behaviour but interesting that it gloms on to similar patterns as UK protestors, such as concerns about 5G

    Sweatpants Forever: How the Fashion Industry Collapsed – The New York Times – For years, Sternberg had been saying that the fashion industry was a giant bubble heading toward collapse. Now the pandemic was just speeding up the inevitable. In fact, it had already begun. An incredible surplus of clothing was presently sitting in warehouses and in stores, some of which might never reopen. “That whole channel is dead,” Sternberg said. “And there’s no sign of when it’s turning on again.” – well worth reading particular the section about novelties. Novelties is when fashion houses put on additional zips or features just to get into department stores

    Movable wealth｜Ngan Shun-kau – Chinese UHNW (ultra high net worth) individuals (100 of them or so) have 78 trillion yuan offshores in Switzerland

    Why share of search is a vital marketing metric | Contagious – share of voice for the digital era

  • Mamahuhu + more things

    Scarlett, Shanghai and Me is a short film by comedy troupe Mamahuhu. They describe it as a film about coming to the end of your life as an expat in China. But I thought it was interesting as an examination of our lives with technology. Major Chinese cities now routinely use facial recognition as a biometric ‘key’ for things like entry access and voice services. Mamahuhu then ply a good deal of creative licence on top. The technology drives a ‘programmed’ world around you, what I’ve called in the past, the web-of-no-web.

    Action Bronson’s latest single Latin Grammys taps into Bronson’s long held love of bodybuilding and powerlifting. The video is like a sophisticated version of JibJab’s Elf Yourself with the sheen of VHS tinged nostalgia.

    Sam Chui got a behind the scenes tour with United Airlines to see how they were preparing for passenger flights in a COVID-world. Its fascinating to see how they’re re-engineered the passenger experience and back-end pre-flight processes such as cleaning the plane. It’s fascinating to watch, I am curious to see how much of this will stay when the COVID crisis is over?

    If you have ever watched Reservoir Dogs; or listened to the soundtrack you will know the ‘boss radio’ sound. (The Reservoir Dogs soundtrack was very popular in its own rights; in a similar way to The Guardians of The Galaxy mixtape of a few years go). ‘Boss radio’ was started in Los Angeles in the 1960s. You had a rise in teenage culture, surf culture. So KHJ decided to compete by devoting more of their air time to music. It was also famous for the ‘sound’ of their DJs. You can here this sound in this sales presentation recordings, presumably for brands and advertising agencies at the time.

  • Anti China + more things

    This was the last place I expected to see anti-China sentiment addressed. I like Steve Guttenberg’s writing in the past for CNet on all things hi-fi and now follow his videos. What he does in in video makes up in enthusiasm, what he lacks in production skills. It was interesting to see him shoot a video that directly addressed a desire in his audience to not buy Chinese hi-fi products. Whilst some of this is about protecting well loved brands, I think some of it reflects a real turn in consumer sentiment towards an anti-China tone. Guttenberg manages to address the topic in an even-handed manner and tries to take some of the vitriol out of the discussion. More China related content here.

    The New York Times wrote a great feature on the rise of statist intellectuals in China who are influencing government policy. Providing an intellectual justification for Xi era policies. What’s interesting is that they draw on German intellectual thinking used to support Nazi ideals of authoritarianism: ‘Clean Up This Mess’: The Chinese Thinkers Behind Xi’s Hard Line – The New York Times 

    Ambient music to work by. There is an internet community who are re-editing selected pieces of sci-fi soundtrack to provide an epic ambient audio background. Here’s edits that have been done featuring Blade Runner and Ghost In The Shell.

    This TV series provided one of the best backgrounds of Irish history. I remember seeing one or two of the episodes that my Dad had managed to capture on video tape. I can also recommend Robert Kee’s book Ireland which accompanied the series. It stops during the Troubles. Given the quality of the series and the mainstream audience that it received at the time, the UK is still astonishingly ignorant of Irish history. This has become especially apparent the Brexit process. Unfortunately it doesn’t seem to have been moved on to Blu-Ray, DVD or legitimate streaming services. More Irish-related topics here.

  • Memes as protest tactics + more

    Why Protest Tactics Spread Like Memes – The New York Times – often, she noted, the images’ similarity was unwitting. In their spread, their simultaneity and their indirect influence on each other, the protest videos had all the characteristics of memes, those units of culture and behavior that spread rapidly online. The same cultural transfer that gives us uncanny cake-slicing memes and viral challenges also advances the language of protest. “We live in this world of attention dynamics so it makes sense that tactics start to converge,” Ms. Mina said. She called the images’ tendency to build on each other “memetic piggybacking,” and noted that everyday items that are subverted into objects of protest are “inherently charismatic.” – protest groups tactics as memes. Memes are a transmissible idea; whether its knowledge, humour or even cat gifs. Memes are something learnable and easily repeatable. The Hunger Games three finger salute or the LIHKG are deliberately chosen memes. Reciting lines from films or TV programmes like The Office are memes. Similarly protest slogans like “Liberate Hong Kong, Revolution Of Our Time’, ‘Five Demands, Not One Less’ (FDNOL) are memes. Other memes evolve due to pragmatism, such as the use of umbrellas during the 2014 protests. More meme related content here.

    Hong Kong Protests 2019
    Hong Kong Protests 2019 by Jonathan van Smit

    German oil refinery to build 30 MW hydrogen electrolysis plant – Reuters – great news. I think hydrogen fuel cells should be a more important part of the energy mix

    Apple Faces $1.4 Billion Lawsuit by Chinese AI Firm in Siri Patent Fight – WSJ – Conflicts over intellectual property, technology and trade are driving bilateral relations between the U.S. and China to their lowest point in decades. Last Friday, President Trump threatened to ban Chinese short-video app TikTok on national-security grounds. U.S. officials have been involved in talks over a potential sale of TikTok’s American business to Microsoft Corp.

    Google to invest $450M in smart home security solutions provider ADT | TechCrunch – tech eats the old economy due to obscenely high share prices

    7-Eleven owner is buying Marathon Petroleum’s Speedway gas stations for $21 billion – CNN – it’s a good deal for Marathon; but looks expensive for Seven and I (7-Eleven’s owner). 7-Eleven would need to get $175,000 net profit a year out of each gas station to make it worthwhile at the current purchase price

    Op-Ed: Never Trust Mark Zuckerberg Again- PingWest – a few things in this. 1/ Facebook probably didn’t get anything out of its reprochment with China. Yes China could stop advertising on Facebook, but A/ Chinese state owned companies not advertising on Facebook would be immaterial and probably benefit Facebook politically B/ Chinese private sector companies don’t have a lot of choice, so China would see a good deal of SME job destruction. 2/ The US government have more leverage. In this respect its like the embarrassing HSBC kowtowing in reverse. The Chinese author now realises how lame it looks when you’re on the other side of it

    Pompeo the Maoist – SettimanaNews – Borrowing from the logic used by Mao Zedong in his On Contradiction, Pompeo tried to prove that CCP didn’t represent the Chinese people, and that actually the party is the enemy of the Chinese people. This point is fundamental because, as Mao put it, the crucial political element is to know who is with us and who is the enemy, and the party should always represent the people. Pompeo stated: “We must start by changing how our people and our partners perceive the Chinese Communist Party. We have to tell the truth.” What is the truth, according to the US secretary of state? It is that: “We know … that doing business with a CCP-backed company is not the same as doing business with, say, a Canadian company. They don’t answer to independent boards, and many of them are state-sponsored and so have no need to pursue profits… We know too that if our companies invest in China, they may wittingly or unwittingly support the Communist Party’s gross human rights violations… We know too too that not all Chinese students and employees are just normal students and workers that are coming here to make a little bit of money and to garner themselves some knowledge. Too many of them come here to steal our intellectual property and to take this back to their country.” Therefore, he argues that the US should de facto work as a new revolutionary party: “We must also engage and empower the Chinese people—a dynamic, freedom-loving people who are completely distinct from the Chinese Communist Party.”

    Breaking Off TikTok Will Be Hard to Do — The Information – basically China still has control despite the window dressing. Given the structural, development, infrastructure and control aspects on this; how can Microsoft negotiate and engineer a clean break in the limited time that they have for TikTok versus Douyin? Some interesting analysis at the FT: The challenges Microsoft faces in buying TikTok’s US arm

    ARM China Asks Beijing to Intervene in Row With U.K. Parent – Caixin Global – It is interesting that the ARM CEO thinks he has the political juice to go against Hopu and its head Fang Fenglei. Is there more than meets the eye going on here? More from Sina.com’s tech channel (via Google Translate): Sina.com Technology Channel ARM China debacle – the intention of Hopu Investment , which represents 36% of the investors of the central state-owned enterprise financial institution in the joint venture, to join hands with foreign shareholders this time? Hopu and Arm recently appointed Hopu Investment’s Teck Sien Lau (Singaporean) as Chairman of Amou China, and Arm President Graham Budd (British) as Vice Chairman. In addition, Arm and Hopu previously appointed two co-CEOs (one Singaporean and one Chinese) on the disputed board of directors, and the board dispute is currently being resolved in legal proceedings. It seems that Hopu hopes to help Arm replace the existing management team and actually control the operation of the joint venture company through this operation. However, under the premise that HOPU violated the Chinese party’s agreement to act in concert and joined hands with Arm, such an organizational structure obviously did not represent China’s national interests. In addition, can they lead the technical team to realize the original intention of the joint venture company and truly realize the vision of autonomous and controllable core technology that China needs? More on ARM here.

    How to Keep Your Skin Healthy While Wearing a Mask | Vogue Hong Kong 

    Facebook Employee Leaks Show Betrayal By Company Leadership – “hurting people at scale” is a brutal header on the article

    Upfield targets block butters with vegan Flora Plant range | News | The Grocer – repackaging to remove the negative connotations of margarine by creating ‘vegan butter’ in salted and unsalted variants. *Disclosure, I worked with Mullen Lowe and Phd to develop ‘Family Brands’ global digital strategy, prior to Flora et al being sold off to Upfield. My work covered Blue Band, Bonella, Country Crock, Doriana, Dorina, Flora, Imperial, La Perfecta, Maizena, Milda, Mirasol, Planta, Planta Fin, Primavera, Rama, Sana, Stork, Tulipan, and Vitam

    Tymbals : Bytedance and the hypergrowth delusion – Nigel Scott explaining the importance of context when there is yet another hyperbolic growth story in the tech sector

    Slack Files EU Competition Complaint Against Microsoft | The Official Slack Blog – feels a bit Netscape all over again

    Influencer Marketing Panel – some useful primers here from the CIPR, in particular about UK regulations

    Imint is the Swedish firm that gives Chinese smartphones an edge in video production | TechCrunch – The hyper-competitive nature of Chinese phone makers means they are easily sold on new technology that can help them stand out. The flipside is the intensity that comes with competition. The Chinese tech industry is both well-respected — and notorious — for its fast pace. Slow movers can be crushed in a matter of a few months. “In some aspects, it’s very U.S.-like. It’s very straight to the point and very opportunistic,” Lifvendahl reflected on his experience with Chinese clients. “You can get an offer even in the first or second meeting, like, ‘Okay, this is interesting, if you can show that this works in our next product launch, which is due in three months. Would you set up a contract now?’” “That’s a good side,” he continued. “The drawback for a Swedish company is the demand they have on suppliers. They want us to go on-site and offer support, and that’s hard for a small Swedish company. So we need to be really efficient, making good tools and have good support systems.” – Ok a few things. 1/ The hyper competition is a very Chinese phenomenon. Like when in someplace like the UK Chinese restaurant opens in a neighbourhood, another will move in next door. In China, you end up with clusters of barber shops, tea shops and restaurants right next to each other in; actively competing. It’s about rapid small iterative steps of innovation, or what Huawei used call ‘customer focus’. It’s not paradigm shifting stuff. 2/ Its interesting that Imint have taken the German middelstadt model to software. Historically, German companies have managed to focus on a niche and do it really well. There is a long-term focus, continuity, independence, flexibility innovation and customer focus. They are nimble by nature and design with lean hierarchies and a family-like corporate structure.

    Google in Talks to Take Over More Search Tasks on Samsung Phones – Bloomberg – Samsung would be giving up more user experience control and by implication, becoming more commoditised. To be fair a lot of Android skins and bundled apps haven’t been great. What happens with Google’s Pixel brand devices?

    Aaron Toponce : The Physics of Brute Force – Why you should use encryption and why Moore’s Law’s limitations and physics indicate an optimal key size when using it against non-quantum computing.

    Europe and AI: Leading, Lagging Behind, or Carving Its Own Way? – Carnegie Endowment for International Peace – Europe, meanwhile, despite having certain advantages such as a strong industrial base and leading AI research and talent, is punching far below its weight. This state of affairs is especially due to the fragmentation of the EU’s digital market, difficulties in attracting human capital and external investment, and the lack of commercial competitiveness. Fortunately, in recent years, European leaders have recognized the importance of not lagging behind on AI and have sought to raise their ambitions. Leaders such as German Chancellor Angela Merkel and French President Emmanuel Macron have stressed the need for Europe to become a leading global player on AI, and the new European Commission has made AI a top priority for the next five years. By declaring AI a major strategic priority, several member states and EU institutions are taking steps to advance the continent’s ambitions for AI leadership

    COVID-19 and biopharma in China | McKinsey – fascinating read. In particular the growth of health insurance. Up to now, one of the reasons why Chinese consumption is so low the high amount of savings to cover health costs. (Yes, I know property and parent care are also huge areas for savings). But that is why Chinese people are generally lower in credit use in aggregate and have a large amount of savings. Private health insurance could have a huge impact on future consumption patterns and act as an economic driver

    Dundrum Town Centre introduces a ‘Crowd Checker’ | RTE – interesting piece of service design to support opening up of retail. Dundrum shopping centre would be the Irish equivalent of Westfield in London. It is Ireland’s largest shopping centre. RTÉ has a broadcast studio there to capture the opinion of the average Irish person as needed.

  • Zero touch spaces + more things

    Zero touch spaces – Wunderman Thompson Intelligence  – I am actually liking these Logan’s Run style personal space bubbles. I also understand Wunderman Thomson’s concerns over zero touch spaces being close, but still isolated. I think of zero touch spaces as a physical manifestation of what we do mentally through cocooning with gadgets such as iPods, smartphones (and apps) and noise-cancelling headphones. Before that there was social networks (rather than real world networking), sat navs, etc. Both the zero touch spaces and cocooning puts distance between us and the world around us.

    https://flic.kr/p/hFSb5T
    Fiona Paton geodesic dome

    Government minister Liz Truss. get pwned on Brexit, international trade and the WTO by Adam S Posen of the Peterson Institute of International Economics. The discussion is so one-sided, it is like watching a naked drunkard getting mauled by a polite but hungry polar bear. Truss’ ministerial portfolio is international trade. It’s exceptionally grim to watch if you’re based in the UK.

    Ad Aged: Talmudic, Biblical, Keynesian and Advertising. – I have taken a different path. I always have and I always will. I try to do what I think is right and smart and good—and mostly difficult, not what is popular, obvious and pandering. Never trust anything from anyone who spends a good portion of their time practicing expressions in front of the mirror – some savage burns in this post

    How a Chinese agent used LinkedIn to hunt for targets – BBC News – The use of LinkedIn is brazen, but not surprising, said Matthew Brazil, the co-author of Chinese Communist Espionage: An Intelligence Primer. “I think lots of worldwide intelligence agencies probably use it to seek out sources of information,” he said. “Because it’s in everybody’s interest who is on LinkedIn to put their whole career on there for everybody to see – it’s an unusually valuable tool in that regard.” He said that commissioning consultant reports is a way for agents to get “a hook” into a potentially valuable source who might later be convinced to supply classified information. I’d be surprised if LinkedIn wasn’t used in this way.

    You Won’t Find These Masks at 7-Eleven – The New York Times – Although the pandemic will end at some point, he added, “people will still be using masks because they’re afraid.” While it’s unclear how well some of these more ambitious masks will fare with consumers, one innovation has been a clear hit: face coverings with high-tech fabrics that are said to provide superior comfort or protection. As summer temperatures rise, masks made of materials intended to keep wearers cool are in demand. People who have been wearing reusable cloth masks — including those sent by the Japanese government to every household in the country — are finding them ill suited for the heat and humidity of summer in central Japan, much less Singapore or Hong Kong. – That humidity also has issues for skin conditions beneath the masks offering beauty product opportunities. More design-related posts here.

    Parfums Givenchy Debuts Makeup in Animal Crossing – WWD – we’re seeing more of these brand activity for a few reasons. Lockdown gave the game increased cultural relevance. The game has a significant amount of female users. Like the original Atari games it isn’t too childish or gender-specific. Animal Crossing’s creator tools allowed consumers to bring brands to the platform.

    Jibo, the social robot that was supposed to die, is getting a second life – The Verge – interesting how NTT is looking to build an all digital version, I think the physical artefact is as important as the digital being

    China’s two-child policy means more babies named after mum | Today Online – Giving the mother’s surname to a child is gaining traction in Chinese cities, defying deeply entrenched family traditions in the country. The country’s one-child rule, which ran from 1979 to 2016, meant daughters have also been tasked with safeguarding their parents’ wealth and bloodline — previously this had been the preserve of male heirs. This caused a shift in some family’s attitudes but it was the law change to allow couples to have two children that has ignited the trend for kids to be given the maternal name. Now, some parents are giving the father’s family name to the first born and the mother’s to the second child.

    He’s 83, She’s 84, and They Model Other People’s Forgotten Laundry – The New York Times – these are the cutest influencers