Category: finance | 은행업

Finance is a really odd section for me to have. I don’t come from a finance background, I have no interest in fin-tech. Yet it makes its appearance here on this blog.

When thinking about this category, I decided to reflect on why its here. It’s usually where curated content sits, rather than my own ideas.

The reality of life in the west is that everything has become financialised. As I write this as people think about web 3.0, they are thinking about payment systems first and working about utility later. This implies that the open web we know won’t be part of the metaverse in terms of ideas or ethos.

Instead of economic growth consumer spending depends on different ways of creating credit. Its no accident that delayed payments finance company Klarna is the biggest thing in European e-commerce at the time of writing this page.

Back when I started writing we were heading into the financial crisis of 2008, the knock on effects of that could still be felt a dozen years later and was a contributing factor to Brexit and Trump victories. The ‘occupy’ movement was catalysed by the financial crisis and then turned into something else. For instance it became a pro-democracy movement in Hong Kong.

We had the implosion of financial brands like Lehman Brothers and the Royal Bank of Scotland. This created a lack of trust in business, the media and the government.  We are still seeing that play out today, from cryptocurrency to conspiracy theories and a lack of trust by the public in experts.

  • February 2025 newsletter

    February 2025 newsletter introduction

    Welcome to my February 2025 newsletter, I hope that your year of the snake has gotten off to a great start. This newsletter marks my 19th issue – which feels a really short time and strangely long as well, thank you for those of you who have been on the journey so far as subscribers to this humble publication. Prior to writing this newsletter, I found that the number 19 has some interesting connections.

    In mandarin Chinese, 19 sounds similar to ‘forever’ and is considered to be lucky by some people, but the belief isn’t as common as 8, 88 or 888.

    Anyone who listened to pop radio in the mid-1980s to mid-1990s would be familiar with Paul Hardcastle’s documentary sampling ’19’. The song mixed narration by Clark Kent and sampled news archive footage of the Vietnam war including news reports by read by Walter Cronkite. 19 came from what was cited as the average age of the soldier serving in Vietnam, however this is disputed by Vietnam veteran organisation who claim that the correct number was 22. The veteran’s group did a lot of research to provide accurate information about the conflict, overturning common mistakes repeated as truth in the media. It’s a handy reminder that fallacies and trust in media began way before the commercial internet.

    New reader?

    If this is the first newsletter, welcome! You can find my regular writings here and more about me here

    Strategic outcomes

    Things I’ve written.

    • Zing + more things – HSBC’s Zing payments system was shut down and was emblematic of a wider challenge in legacy financial institutions trying to compete against ‘fintech startups. I covered several other things as well including new sensor technology
    • The 1000 Yen ramen wall is closing down family restaurants across Japan. A confluence of no consumer tolerance for price elasticity due to inflation driven ingredients costs is driving them to the wall. Innovation and product differentiation have not made a difference.
    • Luxury wellness – why luxury is looking at wellness, what are the thematic opportunities and what would be the competitors for the main luxury marketing conglomerates be successful.
    • Technical capability notice – having read thoroughly about the allegations that Apple had been served with an order by the British government to provide access to its customer iCloud drive data globally – I still don’t know what to think, but didn’t manage to assuage any of my concerns.

    Books that I have read.

    • World Without End: The million-copy selling graphic novel about climate change by Jean-Marc Jancovici and Christophe Blain. In Japan, graphic novels regularly non-fiction topics like text books or biographies. A French climate scientist and illustrator collaborated to take a similar approach for climate change and the energy crisis. Their work cuts through false pre-conceptions and trite solutions with science.
    World without end by Jancovici & Blain
    • Laws of UX by Jon Yablonski. Yablonski breaks down a number of heuristics or razors based on psychological research and how it applies to user experience. These included: Jakob’s Law, Fitt’s Law, Hick’s Law, Miller’s Law, Peak-End Rule and Tesler’s Law (on complexity). While the book focuses on UX, I thought of ways that the thinking could be applied to various aspects of advertising strategy.
    • I re-read Hooked: How to Build Habit-Forming Products by Nir Eyal. Eyal’s model did a good job at synthesising B.J. Fogg’s work on persuasive computing, simplifying it into a model that the most casual reader can take and run with it.
    • Kapferer on Luxury by Jean-Noël Kapferer covers the modern rise of luxury brands as we now know them. Like Dana Thomas’ Deluxe – how luxury lost its lustre Kapferer addresses the mistake of globalised manufacturing and massification of luxury. However Kapferer points out the ‘secret sauce’ that makes luxury products luxurious: the hybridisation of luxury with art and the concept of ‘incomparability’. The absence of both factors explain why British heritage brands from Burberry to Mulberry have failed in their current incarnations as luxury brands.
    • Black Magic by Masamune Shirow is a manga work from 1983. Masamune is now best known for the creation of Ghost In The Shell which has been turned into a number of anime films, TV series and even a whitewashed Hollywood remake. Despite the title, Black Magic has more in common with space operas like Valerian & Laureline by Pierre Christin and Jean-Claude Mézières than the occult. In the book Masamune explores some of the ideas which he then more fully developed in Ghost In The Shell including autonomous weapons, robots and machine intelligence.
    • Doll by Ed McBain. Doll was a police procedural novel written in 1965 that focused on the model agency industry at the time. The novel is unusual in that it features various artistic flourishes including a model portfolio and hand written letters with different styles of penmanship. The author under the McBain pen name managed to produce over 50 novels. They all have taunt dialogue that’s ready for TV and some of them were adapted for broadcast, notably as an episode of Columbo. You can see the influence of McBain’s work in the likes of Dick Wolf’s productions like the Law & Order, FBI and On Call TV series franchises.

    Things I have been inspired by.

    Can money make you happy?

    Past research indicated that happiness from wealth plateaued out with a middle class salary. The latest research via the Wharton School at the University of Pennsylvania indicates that might not be the case instead, earning more makes you happier and there might not be a point at which one has enough. The upper limit on the research seems to have been restricted by finding sufficiently rich research respondents rather than natural inclination. As a consumer insight that has profound implications in marketing across a range of sectors from gaming to pensions and savings products.

    AgeTech

    I came across the concept of ‘agetech’ while looking for research launched in time for CES in Las Vegas (7 – 11, January 2025). In the US, the Consumer Technology Association (CTA) and American Association of Retired People (AARP) have put together a set of deep qualitative and quantitative research looking at the needs of the ‘aged consumer’ for ‘AgeTech’. AgeTech isn’t your Grandma iPad or your boomer CEO’s laptop. Instead it is products that sit at the intersection of health, accessibility and taking care of oneself in the home. The top five perceived age technologies are connected medical alert devices,digital blood pressure monitors, electric or powered wheelchairs/scooters, indoor security cameras, and electronic medication pill dispenser/reminders. Their report 2023 Tech and the 50-Plus, noted that technology spending among those 50-plus in America is forecast to be more than $120 billion by 2030. Admittedly, that ’50-plus’ label could encompass people at the height of their career and family households – but it’s a big number.

    It even has a negative impact on the supply side of the housing market for younger generations:

    The overwhelming majority (95%) of Americans aged 55 and older agree that aging in place – “the ability to live in one’s own home and community safely, independently, and comfortably, regardless of age, income, or ability level” – is an important goal for them. This is up from 93% in 2023.

    The Mayfair Set v 2.0

    Spiv

    During the summer of 1999, a set of documentaries by Adam Curtis covered the reinvention of business during the latter half of the 20th century was broadcast. I got to discover The Mayfair Set much later on. In the documentaries it covered how the social contract between corporates and their communities was broken down and buccaneering entrepreneurs disrupted societal and legal norms for profit. There is a sense of de ja vu from watching the series in Meta’s business pivots to the UK government’s approach to intellectual property rights for the benefit of generative AI model building.

    It probably won’t end well, with the UK population being all the poorer for it.

    The Californian Ideology

    As to why The Mayfair Set 2.0 is happening, we can actually go back to a 1995 essay by two UK based media theorists who were at the University of Westminster at the time. It was originally published in Mute magazine.

    This new faith has emerged from a bizarre fusion of the cultural bohemianism of San Francisco with the hi-tech industries of Silicon Valley. Promoted in magazines, books, TV programmes, websites, newsgroups and Net conferences, the Californian Ideology promiscuously combines the free-wheeling spirit of the hippies and the entrepreneurial zeal of the yuppies. This amalgamation of opposites has been achieved through a profound faith in the emancipatory potential of the new information technologies. In the digital utopia, everybody will be both hip and rich. Not surprisingly, this optimistic vision of the future has been enthusiastically embraced by computer nerds, slacker students, innovative capitalists, social activists, trendy academics, futurist bureaucrats and opportunistic politicians across the USA. 

    It reads like all these things at once:

    • A prescient foreshadowing from the past.
    • Any Stewart Brand op-ed piece from 1993 onwards.
    • The introduction from an as-yet ghost written book on behalf of Sam Altman, a la Bill Gates The Road Ahead.
    • A mid-1990s fever dream from the minds of speculative fiction authors like Neal Stephenson, William Gibson or Bruce Sterling.

    What the essay makes clear is that Peter Thiel, Larry Ellison and Elon Musk are part of a decades long continuum of Californian Ideology, all be it greatly accelerated; rather than a new thing. One of the main differences is that the digital artisans no longer have a chance to get rich with their company through generous stock options.

    Jobsmobile

    Even Steve Jobs fitted in with the pattern. For a hippy he drove a 5 litre Mercedes sports car, parked in the handicapped spaces in the Apple car park and had a part in firing Apple’s first gay CEO: Michael Scott because of homophobia and Scott’s David Brent-like handling of Black Wednesday. It may be a coincidence that Tim Cook didn’t come out publicly as gay until over three years after Steve Jobs died.

    … a European strategy for developing the new information technologies must openly acknowledge the inevitability of some form of mixed economy – the creative and antagonistic mix of state, corporate and DIY initiatives. The indeterminacy of the digital future is a result of the ubiquity of this mixed economy within the modern world. No one knows exactly what the relative strengths of each component will be, but collective action can ensure that no social group is deliberately excluded from cyberspace.

    A European strategy for the information age must also celebrate the creative powers of the digital artisans. Because their labour cannot be deskilled or mechanised, members of the ‘virtual class’ exercise great control over their own work. Rather than succumbing to the fatalism of the Californian Ideology, we should embrace the Promethean possibilities of hypermedia. Within the limitations of the mixed economy, digital artisans are able to invent something completely new – something which has not beenpredicted in any sci-fi novel. These innovative forms of knowledge and communications will sample the achievements of others, including some aspects of the Californian Ideology. It is now impossible for any serious movement for social emancipation not to incorporate feminism, drug culture, gay liberation, ethnic identity and other issues pioneered by West Coast radicals. Similarly, any attempt to develop hypermedia within Europe will need some of the entrepreneurial zeal and can-do attitude championed by the Californian New Right. Yet, at the same time, the development of hypermedia means innovation, creativity and invention. There are no precedents for all aspects of the digital future. As pioneers of the new, the digital artisans need to reconnect themselves with the theory and practice ofproductive art. They are not just employees of others – or even would-be cybernetic entrepreneurs.

    They are also artist-engineers – designers of the next stage of modernity.

    Barbrook and Cameron rejected the idea of a straight replication of the Californian Ideology in a European context. Doing so, despite what is written in the media, is more like the rituals of a cargo cult. Instead they recommended fostering a new European culture to address the strengths, failings and contradictions implicit in the Californian Ideology.

    Chart of the month: consumer price increases vs. wage increases

    This one chart based on consumer price increases and wage increases from 2020 – 2024 tells you everything you need to know about UK consumer sentiment and the everyday struggle to make ends meet.

    Consumer prices vs. wage increases

    Things I have watched. 

    The Organization – Sydney Poitier’s last outing as Virgil Tibbs. The Organization as a title harks back to the 1950s, to back when the FBI were denying that the Mafia even existed. Organised crime in popular culture was thought to be a parallel corporation similar to corporate America, but crooked. It featured in the books of Richard Stark. This was despite law enforcement stumbling on the American mafia’s governing body in 1957. Part of this was down to the fact that the authorities believed that the American arm of the mafia were a bulwark against communism. Back to the film, it starts with an ingenious heist set piece and then develops through a series twists and turns through San Francisco. It was a surprisingly awarding film to watch.

    NakitaNakita is an early Luc Besson movie made after Subway and The Big Blue. It’s an action film that prioritises style and attitude over fidelity to tactical considerations. The junkies at the start of the film feel like refugees from a Mad Max film who have happened to invade a large French town at night. It is now considered part of the ‘cinéma du look’ film movement of the 1980s through to the early 1990s which also features films like Diva and Subway. Jean Reno’s character of Victor the Cleaner foreshadows his later breakout role as Leon. It was a style of its time drawing on similar vibes of more artistic TV ads, music videos, Michael Mann’s Miami Vice TV series and films Thief and Manhunter.

    Stephen Norrington’s original Blade film owes a lot to rave culture and cinéma du look as it does to the comic canon on which it’s based. It’s high energy and packed with personality rather like a darker version of the first Guardians of The Galaxy film. Blade as a character was influenced by blaxploitation characters like Shaft in a Marvel series about a team of vampire hunters. Watching the film almost three decades after it came out, it felt atemporal – from another dimension rather than from the past per se. Norrington’s career came off the rails after his adaption of The League of Extraordinary Gentlemen did badly at the box office and star Wesley Snipes went to jail for tax-related offences.

    The Magnificent Seven – I watched the film a couple of times during my childhood. John Sturges had already directed a number of iconic films: Bad Day at Black Rock and Gunfight at The OK Corral. With The Magnificent Seven, he borrowed from The Seven Samurai. It was a ‘Zappata western’ covering the period of the Mexican revolution and was shot in Cuernavaca, Mexico. The film did two things to childhood me: made me curious about Japanese cinema and storytelling. There are some connections to subsequent Spaghetti Westerns:

    • Sergio Leone’s A Fistful of Dollars (shot in 1964 would borrow from another Akira Kurosawa film Roshomon)
    • Eli Wallach played a complex Mexican villain in both The Magnificent Seven and Leone’s The Good, The Bad & The Ugly.
    • The visual styling of the film is similar to spaghetti westerns, though the clothes were still too clean, Yul Brynner’s role as the tragic hero in black is a world-away from the traditional Hollywood coding of the good guys wearing white hats (or US cavalry uniforms).
    • The tight, sparse dialogue set the standard for the Dollars Trilogy and action films moving forward
    • Zappata westerns were the fuel for more pro-leftist films in the spaghetti western genre. While The Magnificent Seven still has a decidedly western gaze, it took on racism surprisingly on the nose for a Hollywood film of this era.

    Watching it now as a more seasoned film watcher only sharpened my appreciation of The Magnificent Seven.

    Breaking News by Johnnie To feels as much about now as it when the film was shot 20 years ago. First time I watched it was on the back of a head rest on a Cathay Pacific flight at the time. Back then I was tired and just let the film wash over me. This time I took a more deliberate approach to appreciating the film. In the film the Hong Kong Police try and control and master the Hong Kong public opinion as a robbery goes wrong. However the Hong Kong Police don’t have it all their own way as the criminals wage their own information campaign. This film also has the usual tropes you expect from Hong Kong genre of heroic bloodshed films with amazing plot twists and choreographed action scenes along with the spectacular locations within Hong Kong itself. Watching it this time, I got to appreciate the details such as the cowardly dead-beat Dad Yip played by veteran character actor Suet Lam.

    Useful tools.

    Current and future uncertainties.

    current and future uncertainties

    This could be used as thought starters for thinking about business problems for horizon scanning and scenario planning. It’s ideal as fuel for you to then develop a client workshop from. But I wouldn’t use something this information dense in a client-facing document. You can download it as a high resolution PDF here.

    Guide to iPhone security

    Given the propensity of phone snatching to take over bank accounts and the need to secure work phones, the EFF guide to securing your iPhone has a useful set of reminders and how-to instructions for privacy and security settings here.

    Novel recommendations

    I got this from Neil Perkin, an LLM-driven fictional book recommendation engine. It has been trained on Goodreads (which reminds me I need to update my Goodreads profile). When I asked it for ‘modern spy novels with the class of John Le Carre’ it gave me Mick Herron’s Slow Horses, Chris Pavone’s The Expats and Chris Cumming’s The Trinity Six. All of which were solid recommendations.

    Smartphone tripod

    Whether it’s taking a picture of a workshop’s forest of post-it notes or an Instagrammable sunset a steady stand can be really useful. Peak Design (who were falsely accused of being a ‘snitch‘) have come up with a really elegant mobile tripod design that utilises the MagSafe section on the back of an iPhone.

    Apple Notes alternative

    I am a big fan of Apple Notes as an app. I draft in it, sync ideas and thoughts across devices using it. But for some people that might not work – different folks for different strokes. I was impressed bu the quality of Bear which is a multi-platform alternative to the default Notes app.

    The sales pitch.

    I am now taking bookings for strategic engagements; or discussions on permanent roles. Contact me here.

    More on what I have done here.

    bit.ly_gedstrategy

    The End.

    Ok this is the end of my February 2025 newsletter, I hope to see you all back here again in a month. Be excellent to each other and onward into March.

    Don’t forget to share if you found it useful, interesting or insightful.

    Get in touch if there is anything that you’d like to recommend for the newsletter.

  • Zing + more things

    Zing

    HSBC’s Zing shuts down. It didn’t manage to compete effectively against Revolut and Wise. Zing provided cheap foreign exchange. On the face of it HSBC had a number of use cases in its main retail banking markets that would have made sense.

    Hong Kong:

    • 7+ percent of the population are expats. This has been pretty constant over previous decades, though people are constantly coming and departing. A big group of these communities are domestic workers from the Philippines, Indonesia, Myanmar and Sri Lanka. All of whom would benefit from cheap foreign money transfers.
    • Like other developed Asian countries, many young Hong Kongers study abroad. Having a way to cheaply transfer money to and from Hong Kong would be useful for this second group.
    • Finally Hong Kong has a diaspora, with families being spread across the United Kingdom, Australia and Canada.

    UK:

    • 30+ percent of Londoners were born outside the UK. Overall, the UK had ethnic minorities which make up 8 – 10 percent of the population. Many of them have multi-generational links with their homelands.
    • The NHS in particular has a large proportion of skilled foreigners working for them from Filipino intensive care nurses to Greek X-ray technicians.

    Zing decided to launch only in the UK. Despite HSBC’s footprint, it didn’t grab the visibility or market share achieved by Revolut or Wise. It also failed to make money and HSBC seems to have taken a shorter term view to succeed or quit compared to its startup competitors. One could charitably view Zing as a correct view of the ‘fast failure’ model, if learnings from it are taken from it by HSBC and applied effectively.

    Zing shutdown

    Zing is emblematic of Clayton Christensen’s Innovator’s Dilemma where established companies lose market share as they fail to disrupt themselves to compete against new upstart businesses.

    Financial innovation is hard. Barclays closed down their mobile payment system Pingit, NatWest stepped back from its digital bank offering and Vodafone has struggled to expand M-Pesa.

    Beauty

    SkinGPT – hyper-realistic skin simulations powered by GenAI

    China

    US TikTok ‘refugees’ make surprise move to China’s ‘RedNote’ | FT – Xiaohongshu’s technical team were not ready for the complexity of a western audience. What’s interesting is that the move was a political statement to US politicians and a tacit rejection of Meta’s competitor platforms very soon after their ‘pivot to free speech’.

    Economics

    Gen Z Americans are leaving their European cousins in the dust | FT

    Energy

    Toyota rethinks its bet on hydrogen | FT – renewed focus on commercial vehicles that will help drive the build out of hydrogen infrastructure.

    Gadget

    Honda, Sony launch Afeela with microLED external display | EE News Europe – showcased at CES

    Vintage | Hi-Fi News – modern reviews on classic hi-fi models that give you a realistic understanding about how they compare to the current state-of-the-art. A number of the pieces come off much more favourably than I was expecting.

    Obsolete Sony are doing a great job at documenting Sony’s history:

    Ideas

    Kameron Hurley: There Have Always Been Times Like These – Locus OnlineHard times are coming, when we’ll be wanting the voices of writers who can see alternatives to how we live now, can see through our fear-stricken society and its obsessive technologies to other ways of being, and even imagine real grounds for hope. We’ll need writers who can remember freedom. –Ursula K. Le Guin

    Luxury

    ISSUE #1 — ARTSUMERISM – Power Dynamics by COPE – massification of luxury goods might have taken the artisan out of luxe. But has enabled it to develop an art collaboration somewhere between patron and influencer relationship.

    Marketing

    Interesting contrast between Ivy Yang’s A 2025 PR Playbook for an Unpredictable World – by Ivy Yang and Edelman’s Trust Barometer hand wringing around a crisis of grievance – 2025 Edelman Trust Barometer Reveals High Level of Grievance Towards Government, Business and the Rich.

    Kantar Media to be sold to US investment firm for £820m

    Materials

    Shoemaking experts Rose Anvil interview Fitasy on the advantages and challenges of using additive manufacturing for shoes. Fitasy provide a more realistic perspective on the circular economy benefits of filament printing at the end of the interview.

    Media

    It’s Time to End our Subscription Addiction | Futureproof News – the Substack economy can’t scale.

    Advertising folk, Britain’s young news readers are not all like you – The Media Leader

    Online

    About-Face(book) | Spyglass – MG Seigler covers the journey of Meta and Mark Zuckerberg

    Meta puts the ‘Dead Internet Theory’ into practice – Computerworld – Computerworld on Meta’s AI social media profiles designed to have personalities.

    Google’s mobile search results are dropping the ‘breadcrumbs’ from URLs – The Verge

    Will Video Kill the Audio Star in 2025? | Vulture – I find it a bit odd as an idea, but then I do listen to a lot of talking heads YouTube channels without looking at the participants such as TLDR, Chip Stock Investor et al and much of the CNBC content I listen to is an audio track from their TV feed.

    Technology

    ‘ChatGPT’ Robotics Moment in 2025 | AI Supremacy – this is a very software orientated look at things. Lights out factories have been pursued for decades. A big limitation is the physics governing strain wave bearings, which affects size and loads that can be managed. Much of the innovation has been in software until hardware can catch up.

    UK’s elite hardware talent is being wasted. | Josef – this reminds me a lot of working in the chemical and petrochemical industry at the start of my career. When enough people opt out the capability collapses in on itself.

    Daring Fireball: Siri Is Super Dumb and Getting Dumber

    Web of no web

    Tiny chip could offer spectral sensing for everyday devices | TechXplore

  • Foreign workers + more stuff

    Foreign workers

    Foreign workers in Singapore parlance are people who come from around Southeast Asia and South Asia to do blue collar and pink collar jobs in the city state.

    In a number of Asian countries including Hong Kong and Singapore; Filipino and Indonesian workers came to care for old people at home, look after children and conduct household tasks.

    This group of foreign workers freed up middle class married women in Singapore and other countries to participate more to their economy, capitalising on their education and ability to earn more in fast-growing economies. They had higher levels of workforce participation than their female counterparts in Japan and South Korea.

    foreign worker philipppines

    The Philippines relies almost five-fold more on remittances for its GDP than similar countries like Indonesia.

    What’s less reflected upon is the social upheaval and challenges that these foreign workers face in their new homes. They are in a different culture, away from friends and family as a support network. They have tremendous pressure to remit as much money as possible home.

    They only have each other to rely upon. This skate team is just one of the activities that foreign workers do. From informal gatherings with friends to sophisticated beauty pageants, volleyball and basketball leagues. More Singapore related content can be found here.

    Beauty

    China’s beauty market is a sight for sore eyes | FT – The brand keeps prices of its products, from face powders to creams, closer to those of premium international brands, in line with L’Oréal’s Lancôme and Shiseido’s Nars. The rise of a domestic premium brand points to a significant shift in mainland shoppers’ buying habits as well as highlighting improvements in the quality of domestic products

    Business

    Business execs just said the quiet part out loud on RTO mandates — A quarter admit forcing staff back into the office was meant to make them quit | ITPro

    China

    Impatient for tech breakthroughs, the Communist Party is pushing aside private initiatives | Merics – the government is trying to pick winners and backfill the funding gap left in the VC industry which has declined over 40%.

    China’s long view on quantum tech has the US and EU playing catch-up | Merics – China sees quantum technology as pivotal in global science and technology (S&T) competition and has stepped up government spending on scientific and industrial development to about USD 15 billion.

    Consumer behaviour

    Paper People | Yun Sheng | Granta – virtual dating simulators and virtual love. Japan leads where the aging world is likely to follow

    2024 Year in Review – Pornhub Insights – young people (gen-Z) make the highest traffic.

    Gen Alpha report: Teens see Starbucks as the new Venmo – Fast Company – equivalent to rounds in a bar.

    From like to love: understanding why consumers fall in love with some products | Kearney

    Culture

    Y3K: Futuristic fashion trend sweeps China | Jing Daily – Inspired by AI, VR, and the metaverse, and propelled by K-pop idols and Korean brands, Y3K is rapidly gaining popularity among Gen Z. – very William Gibson ‘Burning Chrome’ era

    Economics

    Diverging demographic destinies: Cars and the middle class | WARC – According to Pew, the American middle class has shrunk significantly in the last few decades. The top 20% of earners now take more than 50% of aggregate income because theirs has grown faster. 88% of Americans have less than $2000 in their checking account and 50% have less than $500 in savings. The average cost of a new car in 1984 was $6000 and the average household income was $27k. Today average household income is $80k [Fed] but averages conceal the widened gap between maxima and minima: the median income per person is around $35k [Census]. The average price of a new car is almost $50k, which is surprising enough that CNN wrote an article about it. They explain that “much of the reason Americans are paying nearly $50k for a car is that automakers decided to go all-in on expensive cars. The more they charge for a car, the more money they make off it.” 

    Whereas forty years ago an average new car cost about a fifth of an average annual salary, a new car is now prohibitively expensive for most. That’s why Americans have a record $1.6 trillion of outstanding car debt and delinquencies are rising.

    What the Bubble Got Right | Paul Graham

    2025 AI & Semiconductor Outlook | Fabricated Knowledge – early indications for an economic downturn?

    Energy

    Is China’s “peak coal” just spouting emissions? | Too Simple, Sometimes Naive

    Hong Kong

    Asia’s Walled City: The Erosion of Transparency in Hong Kong | International Republican Institute – interesting report, particularly some of the knock-on effects for sectors such as public affairs professionals, financial analysts and being able to do due diligence on businesses.

    Japan

    FirstFT: Nissan and Honda hold talks about a merger


    Biden’s Move to Block US Steel Deal Is No Way to Treat Japan – Bloomberg
    In the executive order preventing the deal on spurious national security grounds, staffers for President Joe Biden appeared to accidentally copy-and-paste the title of a previous presidential order — one ordering a Chinese crypto mining company to vacate property near an Air Force base. The left the Nippon Steel directive entitled: “Regarding the acquisition of certain real property of Cheyenne leads by MineOne Cloud Computing Investment.”

    Luxury

    Interesting research from two sources that don’t quite square with each other. Walpole’s The State of London Luxury 2024 report came out and painted a rosy picture about the ultra high end aspect of the London property market. Meanwhile over at the FT, Why London’s property market is stagnating points at the same end of the market as being moribund in nature.

    United States Luxury Fine Jewelry Market Expected to Reach USD 24,374.3 Million by 2034, Driven by Sustainability and Personalization Trends | Future Market Insights. – The luxury fine jewelry market in the United States is poised for steady growth, with the market size expected to reach USD 17,353.6 million in 2024. The market is projected to continue expanding at a compound annual growth rate (CAGR) of 3.5%, reaching USD 24,374.3 million by 2034

    Marketing

    Ipsos In Talks To Acquire Kantar Media | Media Post Agency Daily

    Full article: Infusing Affective Computing Models into Advertising Research on Emotions | Journal of Advertising Volume 53, 2024 – Issue 5: Computational Advertising Research Methodology – academic study to look at the kind of research techniques that the likes of System 1, iPSOS and Kantar use in assessing advertising

    Ageism in advertising: AI and layoffs exacerbate the issue | Ad Age – baked in (but largely incorrect) perceptions about ‘not being able to use AI’ and reducing headcount is crippling the existing DEI dumpster fire in the advertising industry.

    Media

    Jellyfish Launches Share of Model™ Platform, First-to-Market Solution to Track How LLMs Perceive Brands, Products & Services – Marketing Communication News – Share of Model™ Platform – a first-of-its-kind solution that enables companies to analyze how different Large Language Models (LLMs) perceive their brands, products and services. Critically, the new platform can identify whether or not brands are optimizing their digital presence enough to prompt coveted recommendations from Gen AI models such as ChatGPT, Google’s Gemini and Meta’s Llama, when people tap into them for guidance.

    The Media Mix Navigator tool

    Retailing

    Foot Locker hit by slower spending and NIKE ‘softness’ | WARC | The Feed

    How WhatsApp for business changed the world – Rest of World

    Security

    Romania blames Russia for election meddling | FT

    How Chinese Hackers Graduated From Clumsy Corporate Thieves to Military Weapons – WSJ

    How macOS has become more private – The Eclectic Light Company

    Afgantsy Redux: How Russian military intelligence used the Taliban to bleed U.S. forces at the end of America’s longest war

    Technology

    Intel on the Brink of Death – SemiAnalysis & The Death of Intel: When Boards Fail – by Doug O’Laughlin. This interview with former Intel CEO Pat Gelsinger, back when he was the project manager for the Intel 386 processor. In retrospect, Gelsinger’s return as CEO could be seen as an Intel C-suite cargo cult hoping for 386-like success again.

    Telecoms

    U.S. officials urge Americans to use encrypted apps amid cyberattack | NBC News

    Web-of-no-web

    Top secret lab develops atomic clock using quantum technology – GOV.UK

  • Klad + more stuff

    Klad

    Klad is a new trends in illegal drug distribution. Klad sprang out of the online anonymity of the darknet. Breaking Klad: Russia’s Dead Drop Drug Revolution | Global Initiative goes into detail about how the Klad system works. Klad seems to be the narcotics equivalent of an Amazon locker. The customer pays the money via a dark web service and is directed to a concealed geocache with their product in it. These caches are refreshed by low level network members whose soul role is to service the klad network.

    Understanding Russia’s darknet markets and the logistics systems underpinning it offers insight into the future of drug trafficking (and other crimes) worldwide.

    Klad is likely to be further complicated by the tight linkage between the Russian state and international organised crime groups.

    China

    Blackpink’s Lisa ignites controversy on Chinese socials with cabaret performance | Jing Daily – an old article but shows the tension of feminist and male-centric themes, modern mindset versus tradition.

    Consumer behaviour

    The Future of Men from TEDWomen 2017 – by Jack Myers

    Climate emotions, thoughts, and plans among US adolescents and young adults: a cross-sectional descriptive survey and analysis by political party identification and self-reported exposure to severe weather events – The Lancet Planetary Health – more data supporting the idea of climate despair – poor mental health related to concerns about climate change.

    The Game Theory of Democracy – The New York Times – Adam Przeworski developed a theory that democracy is best understood as a game, one in which the players pursue power and resolve conflicts through elections rather than brute force. Democracies thrive when politicians believe they are better off playing by the rules of that game — even when they lose elections as it maximises their self-interest over time. It works when the stakes of power remain relatively low, so that people don’t fear electoral defeat so much that they seek other methods reversing it. Winners of elections need to act with restraint. They can’t make life miserable for the losers, or foreclose the possibility that future elections would allow the losers to win. But recent years suggest that even “working” democracies can be far more fragile than was once believed; Przeworski doesn’t see an obvious way to protect it from being weakened further.

    Using F-word at work is no sacking offence in the north, rules judge | The Times – As rude as the comment was, the so-called f-word had become commonplace “in the public sphere” — and that was particularly the case in the north of England. “Mong” is a derogatory term for someone with a learning disability, especially related to Down’s syndrome, and is also used as a synonym for “idiot”. Shergill was hearing a claim from Robert Ogden, who was said to have made the jibe during an office discussion about doughnuts and losing weight. His colleague was said to have felt “violated and shocked” by the remark and was left in tears before reporting Ogden to bosses, who eventually sacked him. Ogden is now in line for compensation after the judge ruled that his “lawless and toxic” office was rife with similar comments.

    Design

    Ideas We Love: Re.Uniqlo Studio

    Energy

    Norway’s electric car sales set new world record | VoA

    Finance

    Inside Goldman Sachs’ years-long power struggle over its China venture FT – Goldman Sachs had their face ripped off and they are still enthusiastic about the Chinese market. Senior executives gave themselves bonuses while the business shelled out a billion dollars for very little. In addition, looking at market timing it’s unlikely Goldman Sachs will realistically get the kind of returns their shareholders would want ever.

    FMCG

    Starbucks needs to cut the crap from its brand positioning | MarketingWeekStarbucks is more than coffee. It does have brand appeal. But it’s more basic than its highfalutin mission would have you believe. It’s a combination of being in the right places to answer the right category needs at the right time, with a small but not unimportant wedge of American quality and efficient delivery.

    There is plenty of brand equity in Starbucks, it’s just apparent that Starbucks never actually worked out what it was. Professor Dolly Parton has the best definition for positioning: find out who you are and do it on purpose. To use her analogy, Starbucks never got to first base never mind second.

    Yes, Starbucks grew under Schultz’s second tenure. He was an exceptional leader twice over. However, there was a vacuity within the brand that was palpable when you entered its stores. The commoditisation of Starbucks that Schultz spotted so brilliantly continued, offset by other excellent decisions that kept it growing.

    The brand’s nonsensical mission statement did not harm it. It did not lose the company money. But its fundamental stupidness and overreach meant that the potential benefits of a more prosaic, practical, accurate position were missed. A problem deferred. Contrast with Why am I optimistic about Starbucks China ☕ | Following the Yuan

    Gadgets

    Why has the Internet of Things failed? « Pete Warden’s blog

    Interesting video by The Verge that covers how supply chains are crippling cassette players and compact disc players. Bottle necks include magnetic heads, cassette mechanisms (one factory in China makes a bad dupe of an old Japanese company design), laser pick-ups and compact disc mechanisms have a similar problem. The programme also misses out that the likes of Dolby Labs no longer licence their noise reduction technology.

    Health

    Telehealth’s GLP-1 ‘gold rush’ is powered by these medical groups | STAT News

    Hispanics and Mental Health: Gaming as a Pathway to Self-Care | Ideas Exchange by Klick Health

    Hong Kong moves to restrict business use of medical terms such as ‘treatment’, ‘clinical’ | South China Morning Post – Under the planned ban, which has already been added to the Private Healthcare Facilities Ordinance but not yet enforced, premises other than licensed healthcare facilities or exempted clinics would not be allowed to use terms such as “clinical”, “healthcare”, “medical”, “treatment” and “therapeutic”. Currently, it is not uncommon to see such descriptions used in non-medical settings. An online check by the Post found a gym claiming it could offer “targeted pain treatment” with a procedure called myofascial release. Another centre also claimed to treat various pain conditions “commonly seen in the city” by stretch therapy.

    Hong Kong

    Trump, Harris both like ‘poison’ for Beijing, says former top US envoy to Hong Kong | South China Morning Post – while the story leads on Kurt Tong being the former US consul general – you could rewrite the precise of the article as head of strategic advisory firm advises Hong Kong to employ advocacy tactics to detoxify Hong Kong government reputation in Washington (presumably including lobbying and think tanks).

    Innovation

    Watching Nintendo think out loud about radar and music (Interconnected)

    Marketing

    Great video hosted by Kantar featuring Mark Ritson on the benefits of consistency in brand building. I can’t embed here, you have to go to YouTube to watch it.

    Huddle 001 – Is strategy sick? – Outside Perspective

    Media

    OnlyFans Has Paid $20 Billion to Creators Since 2016, CEO Says | Variety

    Retailing

    Asos CEO ‘not worried’ about Vinted or Shein despite mounting losses | Retail Gazette – interesting. I wonder how the brand building work is going? I have seen lots of ads, but they’ve felt disjointed and flat

    John Lewis partners with Klarna for ‘buy now pay later’ option – Retail Gazette – the middle class now need the digital equivalent of ‘lay away’ – not a great economic indicator

    Security

    Chinese Group Accused of Hacking Singtel in Telecom Attacks – Bloomberg

    Software

    Split mixed tracks with LANDR Stems | SOS – this is huge

    Style

    Kizik Hires Nike Footwear Veteran Andreas Harlow as SVP of Design – Footwear News – moving prior to the new CEO Harlow was responsible for design of the Jordan line of footwear, but makes sense when you read my John Donahue and Nike related post.

    Technology

    She Built a Microcomputer Empire From Her Suburban Home | Every

    Telecoms

    Interesting article on the state of the internet. It looks as if the network might be maturing: Is the (US) Internet Really Slowing? – On my Om

  • Ghost signs + more stuff

    Ghost signs

    I took this picture almost two decades ago on a visit to Hong Kong of ghost signs.

    Former industrial units in Fotan

    I was reminded of this picture when I watched the below documentary on ghost signs. Specifically it reminded me of the former industrial units I saw in Fotan, which is in the New Territories of Hong Kong. Their structure used as a giant billboard advertising their former uses making fur coats or plastic flowers. The ghost signs of Hong Kong were fast-fading evidence of an industrial golden age in Hong Kong extinguished by China’s entrance into the World Trade Organisation (WTO) at the end of 2001.

    The UK ghost signs highlighted in the documentary benefit from a slower rate of building replacement and a more temperate climate that helped preserve lead paint over a century old.

    Ghost signs show that history is all around us, if we care to look around us.

    Beauty

    Avon mulls franchise stores and widens tie-up with Superdrug | Retail Gazette

    China

    Volkswagen China CMO deported from China for drug use | News | Campaign AsiaVolkswagen Group China’s chief marketing officer, Jochen Sengpiehl, has been expelled from China following a positive drug test upon his return from a holiday in Thailand. This development has caught significant attention on Chinese social media, as reported by the German tabloid Bild-Zeitung. AFP reported that German officials confirmed the news on Tuesday. Sengpiehl was detained for over 10 days and instructed to leave the country immediately after Chinese officials detected traces of cannabis and cocaine in his blood, according to AFP’s coverage. He was held in custody before Volkswagen and officials from the German embassy managed to secure his release. However, he was required to leave the country instantly, as reported by Bild. Campaign Asia-Pacific reached out to Volkswagen Group for comment. A global spokesperson offered a terse response: “We ask for your understanding that we will not comment further on the content of your questions in light of our contractual and data protection confidentiality obligations.” The incident throws a harsh spotlight on the differing legal landscapes around drug use. While Germany legalised cannabis use earlier this year, and Thailand became the first Asian country to decriminalise it for medical purposes in 2022 (though recreational use is slated for prohibition by the end of the year), China maintains extremely strict anti-narcotics laws, with severe penalties for violations. – This also says a lot about how little China needs Volkswagen in the country now.

    Why Are Airlines Quiet Quitting China? | Skift

    Consumer behaviour

    Gen Z’s joy in chaos: Why maximalism is back | Jing Daily – at odds with the sleek pared down looks currently driving Chinese fashion. Not really that much of a surprise given how young people over the years have rated thrift shops, army surplus stores and shopped while travelling in search of authenticity and a story behind their eclecticism.

    54: Double 11 (Is Ralph Lauren a victim?), The fall of Will’s and ClassPass | Following the Yuan – Chinese consumers using returns policies to hit ‘boycotted’ western companies in the pocket by exploiting the elevated business costs of returns in e-commerce. Double 11 or singles day is one of the premier shopping days in China. If this movement is real, the results for targeted brands like Ralph Lauren would be exceptionally brutal.

    Culture

    Camcorders are now going through a ‘lomography‘ phase now – where creators love their limitations and flaws.

    Finance

    Hong Kong exchange launches crypto index for Asia | Tech In Asia

    Luxury

    Why do people queue up outside luxury stores? | FT

    Kering and Hermès tell tale of luxury inequality | FT

    Marketing

    Why global brands are failing in Africa | WARC

    Beyond the horizon: The holistic path to measuring media investments | WARC

    Online

    Preparing for Apple & Google’s certificate lifespan changes | The Stack – interesting that this transition is being compared to Y2K in terms of technology experience disruption

    Security

    TSMC cuts off Chinese chip designer linked to Huawei • The Register

    Software

    OpenAI and Anthropic present two possible futures for AI – The Verge