Category: fmcg | 雜貨業務 | 소비재 | 食料品事業

FMCG or fast moving consumer goods sprang out of the mass industrialisation. Brands sprang up originally as a guarantee of quality. Later on as these brands needed to be promoted, we saw the foundation of the what we think of as modern marketing and advertising.

Today media and entertainment takes up an increasing amount of the household spend, as does housing, but FMCGs are a crucial part of their essential and disposable income spend.

They have nostalgia wrapped up in them, distinctive aromas, taste and packaging designs. From the smell of my Granny using so much Pledge on the TV that I was surprised it didn’t burst into flame to the taste of Cidona and texture of Boland’s Fig Roll biscuits in my mouth.

The sound of their advertising jingles was the soundtrack of my childhood. Digital advertising is largely rationale, it lacks the fluent devices that provide the centre to advertising and made FMCG advertising iconic. Fluent devices like the Peperami ‘Animal’, the M&M characters or the Cadbury Smash robots were embedded in deep marketing research. FMCG brands still sponsor the best research in marketing science.

I had the good fortune to work inhouse at Unilever and agency-side for their brands. I also managed to work on Coca-Cola and Colgate during my time in Hong Kong.

  • Venture capital, clean tech + more

    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

  • EXP TV + more stuff

    EXP TV – not quite sure how to describe it; EXP TV is just tremendous. In their words “EXP TV daytime programming is called “Video Breaks”—a video collage series featuring wild, rare, unpredictable, and ever-changing archival clips touching on every subject imaginable. Similar to how golden era MTV played music videos all day, daytime EXP TV streams non-stop, deep cut video clips filtered through our own distinct POV. Our Nite Owl programming block features specialty themed video mixes and deep dives on everything under the sun: Bigfoot, underground 80s culture, Italo disco, cults, Halloween hijinks, pre-revolutionary Iranian pop culture, midnight movies, ‘ye ye’ promo films, Soviet sci-fi, reggae rarities, psychedelic animation and local news calamities. On any given night you could watch something like our Incredibly Strange Metal show followed by a conceptual video essay like Pixel Power—our exploration of early CGI art. Aside from our unique tone and deep crate of video materials, one thing that really sets us apart in 2020 is our format. We are *not* on demand, we are *not* interactive—just like old TV! You can tune in anytime and something cool will be on. That’s EXP TV in a nutshell. It’s funny, it’s art, it’s music, it’s infotainment, it’s free and it’s 24/7.” EXP TV reminded me a lot of the pioneering night time TV programming that used to run on British TV.

    Gen Z wants brands to be ‘fun,’ ‘authentic’ and ‘good,’ study says | Marketing DiveGen Zers prefer brands that are authentic, with 82% saying they trust a company more if it uses images of real customers in its advertising, while 72% said they’re more likely to buy from a company that contributes to social causes. Product quality, positive ratings and reviews and customer service are the top three characteristics that establish trust in a brand among Gen Zers – really? I am sure if you asked any cohort through time of the same age that would have come out as the result. More on ‘generations‘ here

    Why Corporate America Gave Up on R&D – Marker – great conversation about basic research and its place in the economic life of a business

    The Changing Structure of American Innovation: Some Cautionary Remarks for Economic Growth – basically US innovation is dying out as corporate basic research is no longer happening. It echoes the work that people like Judy Estrin has done in the past

    Produce your own physical chips. For free. In the Open – FOSSi Foundation – interesting that Google is supporting open source silicon prototyping on 130nm process – not cutting edge but moving things forward massively for electronics designers

    China ‘trying to influence elite figures in British politics’, dossier claims | Politics News | Sky News – not terribly surprising. I’d be surprising if Chna wasn’t trying these things. More fool the UK for allowing it to happen passively

    Exclusive: Digital natives see PR as ‘press releases and gin-soaked lunches’ – Sorrell | PR Week – depending on the industry its probably pretty fair, though probably less gin than there was previously

    What’s really behind “tech” versus “journalism” | Revue – really management vs employees – it seems to have got much more toxic than when I worked at Yahoo!

    MullenLowe merges Profero and Open in UK – surprised that that this wasn’t on the cards sooner to be honest with you

    Lessons from the fall of luxury e-tailer Leflair – Vietnam based luxury start-up goes under with $280,000 in unpaid goods

    TikTok to pull out of Hong Kong – Axios – interesting how they got out ahead of Facebook, WhatsApp etc. TikTok might feel its mainland app Douyin can be swapped in. It is an interesting canary in the coal mine for Twitter, Facebook, WhatsApp etc

    Holographic Optics for Thin and Lightweight Virtual Reality – Facebook Research and Alphabet buys a rival company North who do similar technology Our focus on helpful devices: Google acquires North – more related posts here.

    Interesting French short film about the future from 1947. In some ways it is a better predictor of technology usage than Star Trek some two decades later.

    La Télévision, œil de demain (1947) – J.K Raymond Millet

    ‘What Big Tech does to discourse, and the forgotten tech tool that can make tech less big’ with Cory DoctorowIt is a conspiracy is to have an energetic mastery of wrong information. And sometimes that information in fact provides a good, not evidentiary basis, but a good fact pattern to support skepticism of a regulator – Cory Doctorow’s speech is long but well worthwhile.

    Luckin Coffee investors oust founder | Financial Times – this looks very similar to WireGuard. The problem is that audited books can’t be trusted due to local law. And locally written analyst reports have to self-censor allowing this kind of thing to happen. China doesn’t seem to be moving to change its law in the same way that Germany is to try and protect shareholders

    Facebook Suspending Review of Hong Kong Requests for User Data – WSJ – based on the Xi administration’s concerns about national security and cyber sovereignty; one can expect China to extend Great Firewall into Hong Kong with this. Which will then impact multinational companies who have traditionally used Hong Kong as an exit point for China operation VPNs. It will also affect Hong Kong’s position as a regional base. Firms would no longer want to use the data centres and backbone networks that Hong Kong has. More from the FT: Facebook and Twitter block Hong Kong authorities from accessing user data | Financial Times – WhatsApp, Facebook, Twitter and Telegram have all given the Chinese Communist Party the finger. They have a strong incentive to. Chinese drop shipping businesses like Shein or Wish will suffer more than Facebook. And it plays well in parliaments and distracts from the other troubles that they may have. China gets burnt because of its information warfare games on these platforms. Facebook et al provide Chinese marketing teams a gateway into markets around the world that WeChat and TikTok don’t – which dings the Chinese government’s economic goals

    ‘Abolish Silicon Valley’ vs. ‘Always Day One’: Who’s Right About Fixing the Tech Industry? | OneZero – this conversation wouldn’t have even happened 10 years ago, but its needed. If not from ethics perspective, then from its failing in innovation as outlined many years ago by Judy Estrin.

    Encryption-Busting EARN IT Act Advances in Senate | WIRED  – if you care about privacy, this is frankly terrifying

    Above Avalon: Apple Is Pulling Away From the Competition – the obvious candidates missing here are Huawei, Xiaomi and the BBK firms (Oppo, Vivo etc) which have driven the smartphone market into the middle in China and opened a can of whoop ass on the premium sector overall

    Philip K Dick’s Metz speech is mind blowing. It was done at an international science fiction festival in 1977, held in Metz, France.

    Did China Steal Canada’s Edge in 5G From Nortel? – Bloomberg – short answer yes. Though it probably didn’t help that they had a management team that had failed to act when they were warned about infiltration, a infrastructure business reliance on the frame relay network market and partnered with Microsoft on a lot of enterprise technology. Some fantastic stuff in this article – Did a Chinese hack kill Canada’s greatest tech company? – BNN Bloombergin the late 1990s, the Canadian Security Intelligence Service, the country’s version of the CIA, became aware of “unusual traffic,” suggesting that hackers in China were stealing data and documents from Ottawa. “We went to Nortel in Ottawa, and we told the executives, ‘They’re sucking your intellectual property out,’ ” says Michel Juneau-Katsuya, who headed the agency’s Asia-Pacific unit at the time. “They didn’t do anything.” By 2004 the hackers had breached Nortel’s uppermost ranks. The person who sent the roughly 800 documents to China appeared to be none other than Frank Dunn, Nortel’s embattled chief executive officer. Four days before Dunn was fired — fallout from an accounting scandal on his watch that forced the company to restate its financial results — someone using his login had relayed the PowerPoints and other sensitive files to an IP address registered to Shanghai Faxian Corp. It appeared to be a front company with no known business dealings with Nortel. The thief wasn’t Dunn, of course. Hackers had stolen his password and those of six others from Nortel’s prized optical unit, in which the company had invested billions of dollars. Using a script called Il.browse, the intruders swept up entire categories from Nortel’s systems: Product Development, Research and Development, Design Documents & Minutes, and more. “They were taking the whole contents of a folder — it was like a vacuum cleaner approach,” says Brian Shields, who was then a senior adviser on systems security

    Why China’s Race For AI Dominance Depends On Math | The National Interest – concerns about STEM education outside China

    “Who Sells Bricks in Hong Kong” Hopes to Introduce New Actors | JayneStars – as dark as things are for Hong Kong’s film industry, ViuTV drama looks to Hong Kong film past for inspiration

  • Problems American style + more

    New York’s Problems Are America’s Problems Now“Most cities are the same animal at a different scale,” Esteban Moro, a physicist who studies cities and measured New Yorkers’ interactions during the shutdown, told me. Bigger city, smaller city—it doesn’t make much of a difference, Moro says. You’ll meet about 5,000 people a year. – It makes sense if one thinks about major cities as ‘early adopters’ then their problems will spread over time.

    Apple wants your iPhone to replace your passport and driver’s license | Appleinsider – I know WeChat had similar aspirations for Chinese ID cards and drivers licence

    Opinion | How China Scammed Hong Kong – The New York Times – ignore the click bait title, it’s a nice summary of the national security law and points out how the basic law allowed this gap. More on Hong Kong here.

    American firms’ move into China over past 20 years threatens US ability to lead and compete: report | South China Morning PostUS MNEs’ reliance on China as a source of sales and a pivotal hub for global manufacturing poses a risk of solidifying dependencies for selected industries that bear on US national security. Furthermore, such reliance threatens to heighten the cost of supply chain diversification

    Pressured by China, E.U. Softens Report on Covid-19 Disinformation – The New York TimesBeijing’s efforts to curtail mentions of the virus’s origins in China, in part by blaming the United States for spreading the disease internationally. It noted that Beijing had criticized France as slow to respond to the pandemic and had pushed false accusations that French politicians used racist slurs against the head of the World Health Organization

    The Hustle on Coupang – a Korean analogue to Amazon that’s expanding their business

    LinkedIn | Baiba Matisone – 60 behavioral biases to better understand the consumers.

    US Attorney General William Barr says American businesses ‘part of problem’ in tech war with China | South China Morning PostBarr portrayed parts of the US business community as ingrates because “they’re willing – ultimately, many of them – to sacrifice the long-term viability of their companies for short-term profit, so they can get their stock options and move into the golf resort”. – I found this a much more profound statement on so many levels

    Typography – Goldman Sachs Design – Goldman Sachs put out its own font under a fairly permissive licence

    How This Electronics Juggernaut Got Its Start in a Bombed-Out Department Store • Gear Patrol – nice intro to the history of Sony

    How a Billion Dollar Eyewear Company Started in the Back of a Honda Civic • Gear Patrol – ‘define problems, find solutions, wrap them in art’

    Facebook executive admits to ‘trust deficit’ on call with advertisers | Financial Times – stating the obvious, with Trump-related decisions is just latest in long line of trust related issues for Facebook from brand safety issues with content to analytics

    Dove Soap’s Owner Is Criticized Over Skin-Lightening Cream – WSJ – unfortunately a set of consumers want the product and if Unilever didn’t sell it other people would

    I love you. You love me. | Ad Ageds – well worth while reading as it brings commitment into focus

    Step Chickens and the Rise of TikTok ‘Cults’ – The New York TimesCults on TikTok aren’t the ideological ones most people are familiar with. Instead, they are open fandoms revolving around a single creator. Much like the “stans” of pop figures and franchises, members of TikTok cults stream songs, buy merch, create news update accounts and fervently defend their leaders in the comment sections of posts. The biggest difference is that TikTok’s cult leaders are not independently famous. They’re upstart creators building a fan base on social media. Ms. Ong represents a relatively new kind of influencer, one who has seized a time of great isolation and idleness to capture the interest of a rapt user base. “I made this video where I was speaking into my phone camera like, ‘Hey guys I think we should start a religion,’” she said in a phone interview on Friday. “Then, I was like, ‘Let’s start a cult.’”

  • Hana Kimura + more things

    Hana Kimura

    Hana Kimura was a reality TV star appearing in a Netflix Japan show. She got a lot of unfair online abuse which contributed to her taking her life. Kimura was just 22 years old. YouTube user Nibota does a really good download on what happened. It mirrors experiences reality shows around the world seem to provoke in online behaviour. Hana Kimura worked in the entertainment industry as a wrestler and her death is indescribably tragic. More Japan related posts here.

    Crowns & Owls

    London collective Crowns & Owls shot this advert for Wieden & Kennedy Tokyo client Nike Korea. Entitled ‘You can’t stop us’ it symbolises ‘ the story of Shim Suk-hee; the gold medalist speed skater and national icon whose bravery in confronting her experience with systematic physical, sexual and mental abuse within 2019 South Korean sport’.

    They actually built the tunnel inside South Korea’s largest indoor ice rink.

    Yojiro Arai

    Nescafé Hong Kong has a new animated advert for canned coffee. It was directed by Yojiro Arai, formerly of Studio Ghibli worked with a a Japanese team for the best part of a year to provide the authentic backdrop of Hong Kong and you can see it in the details, from the estate agent windows to the money plant in an office lobby. (H/T via the Mad Man blog (HK)).

    Loewe

    Lovely case study of an ad by luxury brand Loewe. This was a Christmas film without the cliches of John Lewis et al. It is an interesting mix of analogue skills which reflect the craftsmanship that luxury good brands like Loewe have in their DNA.

    Jeremy Fleming, GCHQ

    Jeremy Fleming, the current director of GCHQ gave a presentation for Imperial College and it is very similar to one he gave to the online version of the Cheltenham Festival. Unsurprisingly coronavirus offered an opportunity for hackers. It is interesting that he goes to talk about privacy and data protection on contract tracing apps. He doesn’t provide a concrete answer.

  • #washtocare & things that caught my eye this week

    Dove #washtocare advert focusing on cleansing. We’re so used to seeing Dove and have a strong beauty and softness association. But it is challenged in landing a cleanliness message. At least in comparison to other bar soaps. The coronavirus offered an opportunity for them to re-emphasise the cleaning aspect of the product with #washtocare.

    https://youtu.be/ZjQM3ucVZhU

    One interesting aspect of this is that the ad doesn’t run to the 20+ seconds needed to comprehensively clean hands but a six-second format. Dove seem to have paired it with a paid influencer placement via a platform that pairs social media users with brands and gives the consumers a ‘challenge’ to complete. Unfortunately for a lot of the material, the Dove brand got lost in it, this post below was about the best one that I saw.

    https://www.instagram.com/p/CAcF1-PF9c6/?utm_source=ig_web_button_share_sheet

    I suspect so they can put the budget into landing and repeating the messaging. More FMCG related content here. #washtocare is more like a washout.

    Charlie Brooker’s Newswipe shows were only of interest to me for the Adam Curtis films that he featured in the shows. This film about the growth of paranoia in society seems to be very in tune with the current zeitgeist.

    Unlike many other magazines, Monocle does a good job of showing the ‘sausage factory’ of how their magazine is made. There is a huge amount of pride in the effort they go to get a quality product out the door. This isn’t just from a design and content point of view, but in the tactile magazine experience. I couldn’t think of any other publication that would do a feature film about why they were moving printing press, paper stock, design and content tweaks.

    Wired US would have a bit of editorial comment when they have banged it out of the park on design and typography – something that tragically hasn’t happened in years.

    All of these changes for Monocle’s print edition has happened in the midst of early coronavirus Europe. The design tweaks aren’t jarring for the experience, with just enough changes to keep things fresh.

    The change seemed to be partly driven by Brexit, but also an apparent desire to get a quality step change that they didn’t seem to think would be possible with UK printers. Tyler Brûlé’s comments on the German apprentice system, for instance, shows that taking back control won’t change the perception of relative quality in UK manufacturing versus Europe.

    Canvas8 tries to read the tea leaves on likely changes in consumer behaviour due to the coronavirus lock-in period. Tom Doctoroff was the guest speaker in this episode and wrote the great book ‘What Chinese Want‘ which I reviewed a number of years ago.