Economics or the dismal science was something I felt that I needed to include as it provides the context for business and consumption.
Prior to the 20th century, economics was the pursuit of gentleman scholars. The foundation of it is considered to be Adam Smith when he published is work An Inquiry into the Nature and Causes of the Wealth of Nations. Smith outlined one of the core tenets of classical economics: each individual is driven by self-interest and can exert only a negligible influence on prices. And it was the start of assumptions that economists model around that don’t mirror real life all the time.
What really is a rational decision maker? Do consumers always make rational decisions? Do they make decisions that maximise their economic benefit?
The problem is that they might do actions that are rational to them:
Reducing choice when they are overwhelmed
Looking for a little luxury to comfort them over time. Which was the sales of Cadbury chocolate and Revlon lipstick were known to rise in a recession
Luxury goods in general make little sense from a ration decision point of view until you realise the value of what they signal
Having a smartphone yet buying watches. Japanese consumers were known to still buy watches to show that they care about the time to employers when they could easily check their smartphone screen
All of which makes the subject area of high interest to me as a marketer. It also explains the amount of focus now being done by economists on the behavioural aspect of things.
The split economy is used a term differentiate from the sharing economy. I first heard of it on the Robin Hood Snacks Daily podcast. The sharing economy has been discussed ad infinitum and is very popular. It encompasses high growth businesses like AirBnB, Uber and DoorDash.
The split economy is used to differentiate itself from the sharing economy. They have some elements in common. Like the sharing economy, the split economy focuses on maximising the utilisation of assets. The difference is that the consumer isn’t paying for a just a service, but also fractional ownership of an underlying asset.
An example would be fractional ownership of sports cars via ‘clubs’ :
Curvy Road
AutoXotica
Exotic Car Share
Fractional ownership of art:
Feral Horses
Masterworks
ArtSquare.io
None of these are necessarily ‘new’ business ideas, but they are now starting to get heat behind them.
Pacaso
Snacks Daily discusses a company called Pacaso. Pacaso buys high end properties and then divides it up into fractional ownership. They then charge a management fee to configure the home with personal pictures, a full fridge, fresh laundry and extensively cleaned. Its a sophisticated boutique experience, that is cheaper than full ownership, but with all the practical benefits.
https://flic.kr/p/2kR9khu
Back in the day, Pacaso would have been described as a timeshare business. However the reputation of timeshares has been tainted by high pressure selling and criminality. Split ownership allows Pacaso to put distance between the timeshare sector and itself. It allows the business to ride the coat tails of valuations enjoyed by sharing economy companies.
Adult male virginity soars | Boing Boing – There are far more merciless forces in play, not least dating and hookup success being forced onto the same algorithmic curve as everything else on social media; the increasingly hypnotic impulse to live lives online; and the generally hopeless economic circumstances of young people who are getting very little out of life, but haven’t yet decided to burn it all down – interesting disparity between men and women in the data. I think the reasons behind adult male virginity soaring are multi-causal. I can see how adult male virginity trends will be be endlessly kicked around by a football to suit one viewpoint or another
China
How much will China grow as an export market? | Hinrich Foundation – Policy makers are currently in a conundrum over how best to engage economically with China. Underlying much of the debate is the assumption that China is a huge and rapidly growing market. While that has historically been true, the falling import intensity of China’s economic growth suggests a more limited market than foreign exporters assume
A number of Hong Kong oligarchs brought up in mainland China, initially made their money on smuggling materials into China. This was back when the country was closed off. This included luxury goods, oil, truck tyres, machine parts or antibiotics. For instance, casino magnate Stanley Ho made his first fortune during world war II and the aftermath smuggling luxury goods from Macau into China. So it didn’t surprise me to see Fujianese Chinese connections involved in smuggling crude oil into North Korea.
New York Times YouTube channel
The New York Times Visual Investigations team used a mixture of old school investigative journalism and open source intelligence techniques championed by Bellingcat to blow open the story.
A Brief History of Semiconductors: How The US Cut Costs and Lost the Leading Edge | by Employ America | Mar, 2021 | Medium – As the industry matured and the competitive environment changed, the policy framework shifted as well. Since the 1970s, industrial policy has been incrementally replaced by a capital-light “science policy” strategy, while mammoth “champion firms” and asset-light innovators have replaced a robust ecosystem of small and large production-focused firms. While this strategy was initially successful, it has created a fragile system. Today, the industry is constrained on one side by fragile supply chains narrowly tailored to the needs of a few firms with enormous investment moats, and on the other side by the many asset-light design firms who are unable to generate or capture process improvements – this going into reversal is going to offer a bonanza for semiconductor manufacturing equipment vendors
Hong Kong Cantopop singer Eason Chan cuts ties with Adidas after brands reject forced labour – probably one of the odder celebrity backlashes against western companies not wanting to use forced labour in its supply chains. Chan is a Cantopop singer, he has low to no exposure to the mainland. His fan base is in Hong Kong and amongst the Hong Kong diaspora. On balance, give the age profile most of his fans will be ‘yellow’ in terms of their viewpoint. He is doing himself no favours by putting his head over the parapet. His fan base will shrink because of his hyper ‘blue’ alignment. I wonder what brought about his performative outrage. It carried more weight than Hong Kong politician promising not to wear another Burberry scarf until the brand backtracked on using Uighur picked cotton.
Luxury Brands Are Moving Into Online Stealth Mode. But How Can They Measure Success? – At the beginning of this year, Italian fashion house Bottega Veneta signed off its social media accounts not with a bang, but with silence. The move, which was followed by the removal of its content on its Weibo account, was praised by many and marked a decided shift in the wider luxury market between brands that choose to be more inclusive in mindset, and those that are taking a more exclusive approach with their customers – I was surprised when many luxury brands went on to social media in the first place. On the flipside it makes complete sense for premium streetwear brands like Moncler.
H&M boycott in China intensifies over Xinjiang supply issue | Marketing | Campaign Asia – The statement surfaced on social media yesterday and sparked an online storm of opinions. Comments on Weibo included “get out of Chinese market”, “the company’s clothes sucks, and I will no longer buy”, and “I heard that you are boycotting Chinese cotton, then I will boycott your products”. Chinese actor Huang Xuan has also terminated his relationship with the brand, according to reports. On his Weibo account, he posted a statement that said he was “firmly opposed to any attempt to discredit the country”. Those calling for a boycott claim that international sanctions against China are unjustified and based on “biased reports in foreign media and from international human rights campaigners”. – its a day with a ‘y’ in it, which means that China will be waging war by other means. The most recent high profile example would be the way Lotte was run out of China. The sooner the west start boycotting the Chinese market and supply chain the better. More at the FT – H&M and Nike face China backlash over Xinjiang stance | Financial Times
Technology
Molson-Coors Discloses Cybersecurity Incident that Affected Production in 8-K Filing | Data Privacy + Cybersecurity Insider – Molson Coors Beverage Company (the “Company”) announced that it experienced a systems outage that was caused by a cybersecurity incident. The Company has engaged leading forensic information technology firms and legal counsel to assist the Company’s investigation into the incident and the Company is working around the clock to get its systems back up as quickly as possible.
I wrote a blog post back in February 2014 that highlighted 40 blogs that inspired me, revisiting this post I decided to write about 2021 blogs that inspire me. But first how did the original list hold up in 2021?
Original list in 2021
Name / Category
Description
Analysis
Wall Street Journal Corporate Intelligence blog
No longer exists, the link defaults to the Wall Street Journal front page.
Edge Perspectives with John Hagel
– No longer exists
Monocle Monocolumn
Monocle has kept the archive online, but the Monocolumn is no longer updated. It has been abandoned in favour of the Monocle Minute
The Asia Society have a blog which alternates between amazing photography from the region and analysis pieces with an academic / think tank type feel. It is still maintained
Still sporadically posted to by Robert Kelly a Korean-based professor of international relations, it has some interesting posts analyzing the complex relationships across APAC. In 2017, became better known when his children gatecrashed a television interview he was doing via Skype with the BBC
Bytes of China
No longer available
China Real Time
The blog has disappeared and now diverts to the WSJ’s Asian news section.
A ‘best of ‘ website that looks at different technology categories
What surprised me about the 2012 list is how many blogs covering different aspects of China in terms of the technology scene, culture and online life have disappeared or stopped being updated. Despite the fact that now, more than ever, they are needed.
Major media outlets have walked back from building blogs based on interest areas or personalities ( like a traditional newspaper columnist).
By comparison, I have a compiled an exemplar list of inspirational 2021 blogs. I look at more but that would be ludicrously long to compile.
Asian Sentinel is edited by a couple of veteran Asia based journalists. The content comes from a number of experts in the region in specialisms such as finance, economics and policy.
English language blog that collates Hong Kong celebrity news from Cantonese language media. It is was important for me to keep an eye on this when working in Hong Kong. It is also a good way to track the slow death of the Hong Kong domestic media industry.
English language version of a Japanese news site that focuses on ‘fun, weird, and intriguing news from Asia, particularly Japan’. It has some great Japanese consumer insight content including retail experiences
The South China Morning Post historically was the paper of record for Hong Kong. It’s medium-to-long term usefulness looks in question with the National Security Act and the Chinese government pressure for Jack Ma to divest media ownership
Colossal in their own words – “an international platform for contemporary art and visual expression that explores a vast range of creative disciplines.”
George Tannenbaum is a 40 year creative veteran in the advertising industry. His blog is a mix of smart thinking and ranting about ageism and other isms in the ad industry (there’s a lot of them to rant about)
France Telecom has a blog about the bleeding edge of technology. Alongside the usual 5G flag waving you’d expect from a major mobile network operator there’s some thoughtful content
Despite the name, covers technology and does some interesting business analysis. I really like the way everything is delivered in succinct bullet points
China and the UK test HSBC Bank divided loyalties in Hong Kong — Quartz – If HSBC Bank were to spin off its China operations, it wouldn’t be the first bank to reconfigure its ties due to a changed political situation. In the 1980s, the British banks Barclays and Standard Chartered pulled out of direct operations in South Africa amid global pressure against the apartheid regime. The bank’s actions “highlighted…the fact that financial institutions were not unassailable when faced with public pressure on ethical issues. HSBC Bank is betting that the screwing China will give it is still better than the west, more from the FT here: HSBC Bank shifts ‘heart of business’ to Asia in latest strategy revamp | Financial Times
Book Review: Rural Youth Key to China’s Human Capital Crisis – Caixin Global – Rural China is so systematically neglected that it has become nearly invisible not only to most outside observers but even to urban elites within China. But this “invisible” part of China will determine its economic future. Instead of sitting in an ivory tower advising Chinese officials what to do, the authors and their team at Stanford University’s Rural Education Action Program (REAP) have been helping China’s rural youth on the ground in practical and realistic ways
Exclusive: Scientists at top British universities worked with Chinese nuclear weapons researchers – Scientists at Britain’s leading universities – including Cambridge, Edinburgh and Manchester – have worked on a string of projects with researchers at China’s nuclear weapons research institution – it doesn’t necessarily mean that they were helping the Chinese build a new generation of warheads but its not a good look
Consumer behaviour
Cultural Differences May Affect The Outcome Of A Pandemic: New Research : Goats and Soda : NPR – Tight cultures tend to have had a lot of threat in their histories from Mother Nature, like disasters, famine and pathogen outbreaks, and non-natural threats such as invasions on their territory. And the idea is when you have a lot of collective threat you need strict rules. They help people coordinate and predict each other’s behavior. So, in a sense, you can think about it from an evolutionary perspective that following rules helps us to survive chaos and crisis
Notice, Shift, and Rewire: Starting the Journey to Dismantle White Supremacy | by Anna Madill | Feb, 2021 | B The Change – interesting read. What struck me is how much this goes against efficiency and effectiveness in terms of everything one would have been taught in business management, to focus on what I’d call internal quality. It is predicated on a sufficiently slow rate of environmental change / client demands in order to allow this to happen. It is an ideal work environment (and I don’t mean that in the terms that they define it) but in a more general sense. It goes against the grain of the observations of James Gleick in his work Faster
MACAU DAILY TIMES 澳門每日時報 » Hong Kong | Thousands flee for UK, fearing China crackdown – What’s surprising is not the content of the article itself. There are plenty of pieces in the English language media around the world about the fear of a China crackdown due to the Hong Kong National Security Law driving Hong Kongers away. (The reality is less likely to be a China crackdown and more likely to be a progressive anaconda-type squeeze.) I am surprised to see this article in the usually tame Macau media. Which left me with the question why? My initial thoughts were that space constrained Macanese could take up some of the slack in Hong Kong as locals vacate? If so it would solve problems in the housing market and the need to build additional infrastructure in Macau.
Majority of B2B advertising is ‘ineffective’ | Marketing Week – Of the 1,600 B2B ads shown to a sample of 6 million people worldwide over the past four years, 75% scored one star or less on System1’s FaceTrace emotional measurement tool – so ineffective in brand building, but potentially effective in terms of performance marketing? We don’t know
Today’s jet fighter designers don’t get the point – Asia Times – the cockpit itself is “beautiful,” full of screens that allow you to bring up an incredible amount of information about the fighter with just a few finger swipes, and customize the data to tailor it for the particular mission. The F-35 is the first to use touch screen technology. Unlike switches, which take up permanent cockpit space, touch screens allow the same LCD screen space to be instantly repurposed, the report said. One minute, a display could be used to pull up data on an aircraft’s fuel reserves, and the next, it could help target an enemy position on a mountainside. That goes a long way toward simplifying the cockpit and not overwhelming a pilot with wall-to-wall physical switches, dials, and single-use displays, the report said. But the problem with touch screens, the pilot explains, is a lack of tactile feedback. Switches have a nice, satisfying click that instantaneously lets the user know they were successfully flipped, the report said. The anonymous pilot reports failing to get a result from a touch screen about 20% of the time – the need for haptics has never been clearer
China Raises Threat Level Over Rare Earths — Radio Free Asia – “Rare earth ore exports are limited in value, and the global demand for raw materials is relatively low,” said Liu Enqiao of Anbound Consulting. But Liu added that the decline “might be partly due to China’s tightening of regulations on strategic resources” under the country’s new export control law, which took effect on Dec. 1.
Artificial Intelligence Will Define Google’s Future. For Now, It’s a Management Challenge. – WSJ – most of Google’s problems related to AI are rooted in the company’s approach to managing staff, adding that science, and not ideology, should guide ethical debates. “Google is the coddler-in-chief,” he said. “Their employees are so coddled that they feel entitled to make more and more demands” regarding how the company approaches AI and related issues. – TL;DR – millennial and gen-z Googler snowflakes preventing the company from creating amoral shareholder value