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ICYMI | 万一你错过了| 당신이 그것을 놓친 경우에 대비해서

Reading Time: 2 minutes

Telecoms industry looks to Apple for 5G ‘tipping point’ | Financial Timeseven with the launch of Apple’s 5G-enabled iPhone — there is as yet no “killer app” that will immediately transform the way consumers use their smartphones; creating a 5G tipping point. – I don’t think its about consumers, I think it makes sense in the enterprise. The lack of killer applications in the consumer space reminds me a lot of 3G. And I don’t believe that Apple is the harbinger of a 5G tipping point

Why a new generation of challenger brands need to rethink how to challenge | A Little West of CentreBlands. That’s what Ben Schott, writing for Bloomberg, coined them. And what a coining it is. The new generation of humble, conscious, in-it-to-sell, underdog companies, sporting D2C models, consumer champion narratives, minimalist aesthetics, affordable luxury positionings and post-choice selling techniques (this is THE mattress, that is THE toothbrush).

Indonesia’s central bank hints burglary in e-wallet playerconsumers should look at the track record of providers before using them to save large amounts of money. Indonesia’s total e-wallet transaction value size is expected to reach US$15 billion by 2020, according to a recent report by The Asian Banker

Problem Solved #13: A lesson in tackling bloody taboos from Bodyform | The Drumthe result was to present the viewer with flame-engulfed apartment of a perimenopausal women; a monster ripping at an endometriosis sufferer’s uterus; a ‘flood gate’ moment following an unexpected sneeze; a woman who has chosen not to have children; and the often-turbulent journey of trying to conceive

Diane von Furstenberg: Interview | Vanity FairThe iconic wrap dress, designed in 1974 and sold more than 15 million times since, made von Furstenberg an overnight sensation and began a dialogue with women that she has maintained ever since, in a large part through admirable philanthropic efforts, including the annual DVF awards. Now she’s taking that dialogue to the podcast, a medium she champions for its value in shifting the focus away from appearance.

Shenzhen — Justin McGuirk – pretty much nails how I found Shenzhen over the decade that I visited regularly. More on Shenzhen here.

Anonymous site ramps up ‘doxxing’ campaign against Hong Kong activists | Hong Kong Free Press HKFP – guessing this is another reason why China and Russia have cooperated on cyberwarfare

Japan’s Sekisui struck by espionage using social media – Nikkei Asia – LinkedIn implicated yet again

iPhone 12 launching without earbuds or wall chargers is compared to eating without chopsticks in China | South China Morning Post – I was expecting this reaction as Chinese consumers are value orientated so the green explanation won’t wash

Shenzhen/Huawei: the other Bay Area | Financial TimesThe impression of military manoeuvres by alternative means was reinforced by Tencent, another Shenzhen resident. It was among big Chinese social and video platforms including iQiyi and Weibo, that simultaneously cancelled the livecast of Apple’s iPhone 12 launch

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Dark stores and coercive diplomacy

Reading Time: 3 minutes

I came across a couple of interesting terms recently: dark stores and coercive diplomacy.

Dark stores

Gartner for Marketing (formerly L2 Inc.) were talking about a new development at Amazon’s Whole Foods subsidiary. It was what Gartner called digital dark stores. The first one has been established in Industry City to serve much of Brooklyn, New York.

Amazon themselves called it a ‘permanent online-only store‘ on their blog.

So whats the difference between dark stores and the ‘last mile’ warehouses that Amazon uses for fulfilment in places like London?

  • Looking at the limited amount of photos available, this doesn’t feel warehouse-like. There wasn’t obvious automation in the pictures. Instead it feels like a supermarket that’s well stocked, but lacking price tags and shopper marketing accoutrements. Gartner describe it as ‘technically a grocery store’, which implies that there might be zoning or planning regulations that they might be working around
  • It is only for the Whole Foods brand; rather than fulfilling Amazon Fresh and Amazon Prime Now items

This isn’t just an Amazon thing. Gartner points out that American supermarket brands Kroger and Giant Eagle have also embraced the order-only store model. More at Gartner for Marketing here.

Coercive diplomacy

The Australian Strategic Policy Institute published a report on September 1, 2020 called The Chinese Communist Party’s coercive diplomacy. It was written by Fergus Hanson, Emilia Currey and Tracy Beattie. Hanson, Currey and Beattie analysed ten years of Chinese government diplomacy. In there words:

The Chinese Communist Party (CCP) is increasingly deploying coercive diplomacy against foreign governments and companies. Coercive diplomacy isn’t well understood, and countries and companies have struggled to develop an effective toolkit to push back against and resist it.

The Chinese Communist Party (CCP) is increasingly deploying coercive diplomacy against foreign governments and companies. Coercive diplomacy isn’t well understood, and countries and companies have struggled to develop an effective toolkit to push back against and resist it.

This report tracks the CCP’s use of coercive diplomacy over the past 10 years, recording 152 cases of coercive diplomacy affecting 27 countries as well as the European Union. The data shows that there’s been a sharp escalation in these tactics since 2018. The regions and countries that recorded the most instances of coercive diplomacy over the last decade include Europe, North America, Australia, New Zealand and East Asia.

There seems to be an escalation of economic and non-economic measures deployed. Economic measures would include:

  • Trade sanctions – such as the recent ban on German pork products. This was rolled out just a few days in advance of a trade negotiation meeting between China and the European Union
  • Investment restrictions in strategic industries such as the ‘agreement‘ that Yahoo!, Softbank and Alibaba had over Alipay (which included what would now be Ant Group). Strategic industries like state security is notoriously (and deliberately) ill-defined in China
  • Tourism bans
  • Popular boycotts such as Korean corporate Lotte being driven out of China and the 2012 anti-Japan protests where the public smashed Japanese stores, attacked factories and burned Japanese cars

Coercive pressure is also applied at below state level on businesses. It may also be applied on individuals, based on the data leak provided from Zhenhua Data seems to imply.

Non economic measures include:

  • Arbitrary detention. The best example of this would be Michael Kovrig and Michael Spavor detained as part of China’s dispute with Canada. Another example might be Australian citizen Karm Gilespie. China didn’t admit it had detained him for over six years, until they announced his death sentence in the summer
  • Restrictions on official travel
  • State-issued threats which are usually issued on a regular basis as part of wolf warrior diplomacy. (Wolf Warrior is a set of two films with a Chinese action hero, a la Rambo – but with less humour).

Some of the imputus for coercive diplomacy might come from the Chinese Communist Party’s continued rancour over Qing dynasty-era unequal treaties. More China related content here and more on retailing here.

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ICYMI | 万一你错过了| 당신이 그것을 놓친 경우에 대비해서

Reading Time: 5 minutes

Venture Capital and Cleantech: The Wrong Model for Clean Energy Innovation by Gaddy, Sivaram and O’Sullivan – venture capital investment is very inefficient according to this MIT paper. More venture capital related posts here.

Why business in Hong Kong should be worried | The Economist – Hong Kong is trapped like the grips of vice. Its economy is dominated by finance and rent-seeking businesses – Simon Cartledge for Gavekal Dragonomics, a consultancy, because these firms are over-represented in government, “Hong Kong’s single biggest disincentive to risk-taking and entrepreneurship—its high costs, especially for property—cannot be tackled.” That is why the back-to-business message is unlikely to resonate with ordinary Hong Kongers. This is probably why Hong Kong start-ups like DJI moved to Shenzhen to found their businesses. (Frank Wang did a lot of the key work on DJI drones whilst studying at HKUST. And even benefited from a small HKUST grant. But he moved across to Shenzhen to found the business itself in 2006.) Fintech has been a bit of a busted flush. It was the latest in a long line of business ideas like wine trading, the arts and medical tourism as failed niches for Hong Kong. Singapore seems to have been much more successful in business creation and seems to be seeing more venture capital interest. Current sectors in Hong Kong likely to be affected include the legal practices specialising in commercial arbitration. Without trustworthy commercial arbitration in Hong Kong doing business in China looks much less attractive. Singapore is trying to bridge the gap, but I suspect that there might be long term corrosion of Chinese business dealings. Digital companies and foreign banks face big worries. Between the Hong Kong Autonomy Act and the Hong Kong National Security Law – Helping America to enforce sanctions would violate the security law. Not doing so would incur American penalties

The untold story of Stripe, the secretive $20bn startup driving Apple, Amazon and Facebook | WIRED UK – what’s more interesting about Stripe is the brothers reading list

Remarks to the Economic Club of New York – United States Department of State – interesting speech by Mike Pompeo

What It’s Like to Escape the Mindset of a Conspiracy Theorist – Vice – fascinating psychology

Barr warns against corporate America’s China ‘appeasement’ | Financial Times“You should be alert to how you might be used, and how your efforts on behalf of a foreign company or government could implicate the Foreign Agents Registration Act,” he said, referencing a 1938 law that requires foreign agents to publicly identify themselves – those comments hit US banks, Apple and other US multinationals. Attorney General William P. Barr Delivers Remarks on China Policy at the Gerald R. Ford Presidential Museum | OPA | Department of Justice – the US C-suite executives must be getting very worried about this

Quisling

The State of Strategy. A view from the Frontline | Noteworthy – The Journal Blog – great read and nails the issues affecting strategy and planning at the moment

Mark Ritson: In a virtual marketplace, only the strongest brands will survive – Companies see better profit margins and an almost unlimited customer base but miss the drastic reduction in barriers to entry. – so brand hyper-competition will ensue and the winner takes all model will extend beyond tech. Expect venture capital money to pour all kinds of weird industry niches as they try to pick category winners

WeChat users in the US say a potential ban of the app would cut them off from friends and family in China | South China Morning Post – Banning it might be a mistake. It would be more worthwhile using WeChat data to investigate Chinese in the US with ‘anti American’ sentiment as it’s easy to surveill in comparison to other platforms. WeChat sends messages in the clear with no encryption at all. You then start using the Espionage Act or the Patriot Act prosecutions

Chinese liquor group Kweichow Moutai tumbles after graft news report | Financial Times – Moutai sales are linked to gifting and lavish consumption and some have linked the share price increase with a corresponding uplift in sales and by implication graft. The damaging bit in the article is that Moutai’s former chairman Yuan Renguo quoted saying in private that sales linked to corruption are “a normal part of business” and that China’s corruption clampdown would not reach far enough to affect the company’s business

Banning junk food from TV an ‘irrelevant symbolic gesture’ that won’t reduce obesity | The Drum – the argument whilst true won’t be believed by regulators. Their rationale would be why would junk food companies advertise if it didn’t work? The distinction of this is junk food brand fighting out with similar brands in its category won’t wash. Secondly, advertising bans worked in the past on tobacco products over time

The party’s grip – Under a new national-security law, Hong Kong is already a changed city | The Economist – you have to wonder about the share run and will the pop of the bubble be blamed on ‘foreign interference’?

Outrage Over China’s Treatment of Hong Kong Galvanizes the West – WSJComplaints about China have piled up in Western capitals in recent years, but it took Beijing’s new curbs on Hong Kong’s autonomy to galvanize them around something approaching a common cause. – In many respects its like boiling a frog in reverse, it is likely that China didn’t expect the frog to jump out of the pot, given that the heat had been on so long

Opinion | A Coronavirus Care Package From China – The New York TimesAfter the Communist takeover in 1949, traditional Chinese medicine was institutionalized. Folk remedies helped fulfill both a tangible need — credentialed doctors were scarce — and an ideological end: That system of knowledge is quintessentially and uniquely Chinese.  Today, the Chinese government sees a political opportunity in the continuing emotional appeal of traditional medicine. If Chinese people can embrace an Eastern alternative to Western medicine, they might also be more likely to accept the Communist Party’s governance model and reject liberal democracy

Speaking in Tongues – Chinese Storytellers – such a great essay on the current challenge facing Chinese (and in particular Hong Kongers) writing for foreign audiences: a Chinese storyteller telling stories for an English-speaking audience in a divided world. As a writer who has called Hong Kong, Beijing and New Haven home, I find myself often in the position of what Zadie Smith once called “speaking in tongues”: equivocating between the lens of the insider and the outsider, examining the places I call home with both the “objective,” parachuted gaze of the foreign correspondent, and the emotionally implicated and invested eye of the local storyteller. Increasingly, that has felt impossible

Google considers alternatives to Hong Kong for undersea cable | Financial Times – Hong Kong has – become less critical for not only US cloud providers but also their Chinese rivals, according to Tao Wu, a senior research analyst for Gartner, a tech research firm. “Singapore has become much more important than Hong Kong from a location and population perspective,” Ms Wu said. “Other top cloud providers such as Alibaba Cloud are much more focused on south-east Asia to go global than expanding in Hong Kong.” – this will have a big impact for those property developers who’ve invested in data centres (internet hotels). Hong Kong’s financial position for international trading desks will also be diminished if international telecoms infrastructure starts to divert away from Hong Kong. From a pure connectivity point of view Korea, Singapore and even the Philippines start to look really good