Category: japan |日本 | 일본

Yōkoso – welcome to the Japan category of this blog. This blog was inspired by my love of Japanese culture and their consumer trends. I was introduced to chambara films thanks to being a fan of Sergio Leone’s dollars trilogy. A Fistful of Dollars was heavily influenced by Akira Kurosawa’s Yojimbo.

Getting to watch Akira and Ghost In The Shell for the first time were seminal moments in my life. I was fortunate to have lived in Liverpool when the 051 was an arthouse cinema and later on going to the BFI in London on a regular basis.

Today this is where I share anything that relates to Japan, business issues, the Japanese people or culture. Often posts that appear in this category will appear in other categories as well. So if Lawson launched a new brand collaboration with Nissan to sell a special edition Nissan Skyline GT-R. And that I thought was particularly interesting or noteworthy, that might appear in branding as well as Japan.

There is a lot of Japan-related content here. Japanese culture was one of odd the original inspirations for this blog hence my reference to chambara films in the blog name.

I don’t tend to comment on local politics because I don’t understand it that well, but I am interested when it intersects with business. An example of this would be legal issues affecting the media sector for instance.

If there are any Japanese related subjects that you think would fit with this blog, feel free to let me know by leaving a comment in the ‘Get in touch’ section of this blog here.

  • Cocaine Cowboys + more things

    Cocaine Cowboys

    Cocaine Cowboys by Nicola Tallant tells the story of the Kinahan organisation. The Kinahan organisation is a group that wholesales and retails illegal drugs in association with other organised crime groups. Tellant explains how deprivation, geography and economic growth fuelled drug trafficking and abuse in Ireland. Isolated council estates and economic hardship drove a heroin epidemic. The subsequent Asian Tiger economy only uplifted young professionals who then were a ripe market for cocaine. Cocaine added to Ireland’s already difficult relationship with alcohol use and abuse.

    Crime journalism such as this is popular in Ireland because it is so concentrated through blood and marriage ties. We don’t have the kind of diversity that the British criminal underworld has. This means that it’s much more ‘relevant’ to Irish society.

    But the book title itself is very interesting. There is a clear parallel to the scale of the cross-border drug trade between the US and Mexico.

    Opry le Daniel ar Thuras
    Irish country music star Daniel O’Donnell courtesy of TG4

    But there is also an underlying western theme across Irish culture. The vast majority of us are at most a few generations from the farm. We have had hard times which is why country music appealed and even morphed into a localised genre Country and Irish popular in rural areas and amongst lorry drivers (or in American truck drivers that drive ‘semis’.)

    Scania r620 at Kilcock, Co. Kildare - April 2012

    Tallant’s stance is definitely anti-Kinahan; but the book title Cocaine Cowboys gives them the hero status and taps deeply into the mainline that the cowboy and related elements like country music have into Irish culture at home and abroad. Cocaine Cowboys might be the inspiration for the next generation to replace the Kinahans.

    If you want to know more beyond the book Nicola Tallant and her colleagues at Irish tabloid the Sunday World host a podcast called Crime World.

    Branding

    Mozilla’s brand update gives its old T-Rex logo a fresh new look – The Verge

    China

    China threatens Calvin Klein owner with blacklist over Xinjiang cotton | FT

    China’s first industrial leases are expiring. Will their holders renew? | South China Morning Post – it will be interesting to see what the Hong Kong tongs do

    Consumer behaviour

    Death of the corkscrew? Only 27% of young people in UK own one, report says | The Guardian – Prevalence of screw-top bottles and abstinence among young people blamed for falling popularity of gadget

    Understanding Desire in the Age of Ozempic – The Atlantic – fascinating study in how GLP-1 treatments are not only reducing the desire for food, but also other products like alcohol and tobacco.

    After peak woke, what next? The Economistin the past decade, a form of wokeness has arisen on the illiberal left which is characterised by extreme pessimism about America and its capacity to make progress, especially on race. According to this view, all the country’s problems are systemic or structural, and the solutions to them are illiberal, including censorship and positive discrimination by race. This wokeness defines people as members of groups in a rigid hierarchy of victims and oppressors. Like the Puritans of old, adherents focus less on workable ideas for reducing discrimination than on publicly rooting out sinful attitudes in themselves and others (especially others). The Economist has analysed how influential these ideas are today by looking at public opinion, the media, publishing, higher education and the corporate world. Using a host of measures, we found that woke peaked in 2021-22 and has since receded. For example, polling by Gallup found that the share of people who worry a great deal about race relations climbed from 17% in 2014 to 48% in 2021, but has since fallen to 35%. Likewise, the term “white privilege” was used 2.5 times for every 1m words written by the New York Times in 2020. Last year it was used 0.4 times per 1m words. – Of course, woke’s failure could be viewed by proponents as a sign of deep-rooted systemic prejudice

    Economics

    Why Britain has stagnated? | Foundations – this reads true and hits hard. My parents came to the United Kingdom when the motorway network was being built, power stations were being constructed and the first generation of nuclear submarines were being constructed. In London the Victoria line was constructed. Now the UK struggles to build any infrastructure and its strategic industrial capabilities have been hollowed out or disappeared.

    FMCG

    Unilever moves on ‘sub-par’ marketing | WARCThat means consistent execution in marketing innovation, marketing quality, proposition sharpness, execution of pricing, execution of distribution. Fernandez suggested that, on a scale of 1-10, the business is currently at around six but needs to get to eight or nine (“ten doesn’t exist”). A&P spending is increasing as a proportion of revenue, from 13% in 2022, to 14.3% in 2023, and 15.1% in H1 2024. “There is an implicit recognition that our level of investment was not in line with our ambition of volume growth,” he said. That increased investment is not there to fund a growing volume of marketing content, he added. “I’m much more concerned about the quality of the stuff that we put in the market than the amount”. And that also means a focus on brand-building. “We see other people putting much more focus on promotional pricing,” he said, “but we always will prefer to invest in long-term, equity-building activities.” – CFO burns marketing teams ‘I believe our marketing was subpar”

    Hong Kong

    Dinner with strangers? Hongkongers craving real-world connections turn to ‘secret’ meet-ups | South China Morning Post – In a tapas restaurant in Hong Kong’s Causeway Bay, about 80 people are chatting away on the packed second floor, clinking glasses and sharing small plates while discussing issues ranging from mental health to childhood dreams.

    Innovation

    How a Chinese billionaire’s Silicon Valley splurge caught the eye of the FBI | FT

    Kyoto company developing autofocus glasses for sufferers of presbyopia and other conditions | SoraNews24 -Japan News-

    Luxury

    Burberry shares tumble to 15-year low amid questions over its luxury brand status – Retail Gazette contrast with top-tier luxury brand trajectory: Hermès chief eyes haute couture push as Paris house rides out luxury gloom – but has to wonder about Hermès leaning even further into Chinese market.

    Marketing

    Is marketing entering its ‘era of less’? | WARC – based on Gartner CMO surveys marketers are increasingly being seen as cost centres and are being asked to do more with less which is affecting mar tech spend, staffing and agency spend.

    Colgate-Palmolive: ‘The advertising is working’ | WARC

    EZ Newswire Signs Exclusive Distribution Deal with Reuters | Reuters – sounds like a PR placement automation?

    What’s fueling America’s Zyn obsession? | On Point

    Innovative research that literally put people in the driver’s seat | WARC – More than half of strategists (59%) are integrating AI into their strategy development process in a cautiously progressive way. They need to identify the skills that AI can’t replace, such as getting buy-in for a strategy, and double down on them. Speedy access to research and insight (74%) and streamlining repetitive tasks (74%) are the top opportunities strategists see in leveraging AI in the strategy process.

    Future of Strategy 2024: Synthetic data – speedy saviour or another example of the industry’s arrogance? | WARC it’ll be useful when time is of the essence, and you want to ‘speak’ to people and get their thoughts on your hypotheses, ideas or campaigns. In that scenario, I can see how that approach may replace an ad-hoc focus group set up hastily in the agency’s boardroom. But we’re not here purely to understand people. If the role of communications is to move people emotionally, shouldn’t we also be here to feel people? As Richard Huntington, CSO of Saatchi & Saatchi says: “You can’t feel data.” The beauty of humans (and the beauty of ethnography) is that so often it’s not what we say that powers an ‘insight’ or a strategy, a campaign or some NPD… it’s what people don’t say. It’s the nods and winks, the gestures, the objects with meaning they have in their homes and in their lives. That texture isn’t picked up by a typical conversation – be that with synthetic data or in a focus group. These feelings that are elicited from ethnography are the special sauce that can separate the wheat from the chaff.

    Break Through: How new and returning brands can grow with TV – System1 Group

    The Rise of The Populist Brand – Eavesdrop

    Online

    The TikTok, Shein, and Temu Conundrum – by Ivy Yang – TikTok’s defence: Shein and Temu have worse privacy profiles than we do

    Launch of Social Web Foundation | Social Web Foundation – set up by the great and the good of web 2.0, notably Tom Coates who brings a wealth of product expertise.

    AI Training is Copyright Infringement | Initiative Urheberrecht and The Intelligence Age | Sam Altman

    Security

    The Netherlands will not back EU-wide screening of app messages – DutchNews.nl

    The Pig Butchering Invasion Has Begun | WIRED

    Technology

    Qualcomm has approached Intel over buy-out | EE News Europe – antitrust related issues around the world

    OpenAI Is A Bad Business | Ed Zitron – the economics of generative AI are still bad, despite improvements in hardware design.

    How AlphaChip transformed computer chip design – Google DeepMind

    Tools

    How I Replaced Notion with Reminders, Numbers, and Notes | by Joan Westenberg – this is a prime example of what I have been hearing from other people. I have been using Notes app in particular from the get-go.

    Home | LibreOffice – Free and private office suite – Based on OpenOffice – Compatible with Microsoft – I have 35 years of content saved, and LibreOffice can open them all. When you’ve been writing for years, your manuscript formats will often be obsolete (though I’ve tried to make decisions that make my poems available platform agnostic, such as using plaintext, but line breaks and stanza breaks don’t always translate well in markdown). LibreOffice is an incredible tool for opening 25 year old wordperfect files when I need them.

    Web-of-no-web

    Meta’s Orion smart glasses look like the future of AR – The Verge

    Apple Knew Where the Puck Was Going, But Meta Skated There – the PAN or personal area network has been talked about for 20+ years. What this misses is that the Orion glasses were possible thanks to silicon carbide lens which are a non-trivial thing to manufacture at scale

  • September 2024 newsletter

    September 2024 newsletter introduction

    Welcome to my September 2024 newsletter, this newsletter marks my 14th issue. When I lived in Hong Kong and dealt with Chinese accounts, the number 4 was considered unlucky, rather like 13. 14 is even worse due to it sounding so similar to ‘is dead’ or ‘will be dead’ or ‘will be certain to die’ depending on the variant of the spoken language used. In other cultures the symbolism of 14 is more nebulous at best.

    Brooklyn Beacon "tribute in light"

    September got off to an odd start, we seem to have had all the seasons, rather than settling gently into the run up to autumn. I managed to avoid traditional mooncake during mid-autumn festival celebrations that I attended. My waistline was thankful for the #ROMO (relief of missing out).

    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.

    • Being on the ground in Merseyside as the Southport stabbings unfolded gave me a different perspective on things.
    • How generative AI features are affecting the Google search experience and much more.
    • Not the target demographic – or how marketers and agencies are leaving money on the table.
    • The mooncake crisis in China.

    Books that I have read.

    My reading for September 2024 slacked off a bit as real world obligations kicked in.

    • The Old Woman With the Knife worked on a number of levels for me. Firstly, I loved its portrayal of modern Korean society, from the aging population to the Confucian view of seniority that makes everyday interactions more complex than other Asian societies. Without revealing too much, the old woman in question is someone in the twilight of her career and how she is coping with new up-and-coming rivals at work.
    • Panic! edited by Michael Lewis. Michael Lewis became famous when he wrote an account of his career in investment banking in Liar’s Poker. His career overlapped with the 1987 financial crash. Since then he has been a writer who has documented key turns in the economy. Because of this background Lewis was the ideal person to curate a history of financial crisis from contemporary accounts at the time. Panic! covers the 1987 financial crash, the 1998 debt crisis, the dot com bubble, and the subprime mortgage crisis of 2007/8. I read the book in short bursts mainly due to asks on my time, rather than the nature of the book. Panic! seemed pertinent to read now. The publication of Pegasus Research’s iconic quantitative research on ‘burn rates’ in March 2000 on dot.com company burn rates makes it highly relevant to revisit when we are in hype cycles such as those surrounding health tech, fintech, crypto and more – if for no other reason than pointing out the folly of trying to pick winners in hype-driven public markets with a high degree of opacity.
    • Klara and the Sun by Kazuo Ishiguro moved from my to be read pile to must read pile given everything that has been going on with generative AI over the the past couple of years that it has sat on my bookshelf. Ishiguro uses speculative fiction to explore the different kinds of love and attachment, alongside loss. From a machine learning perspective it poses interesting questions about applying observational learning rather than rules based learning in systems that are supposed to exist in the real world. Klara is an ‘artificial friend’ for a child who is going through ‘levelling up’. Levelling up could be seen as a euphemism for everything from the cramming schools popular in Asian education systems to the challenges humans face in an information heavy environment. Ultimately there is something more human and child-like in Klara’s experiences than the human co-protagonists.

    Things I have been inspired by.

    AI proficiency.

    DLD munich 19 - Monday

    Section, the education company founded by Professor Scott Galloway has AI proficiency as a key element in its offering. They have put together research to show how low the current level of proficiency is. They consider this research a rallying cry; but the results could also be reflective of a technology adoption curve that isn’t moving at the speed of hype, which is what came through in my examination of public discussions during the summer.

    Secondly, research from the Upwork Research Institute implies a higher a higher adoption rate of generative AI, but lower success rate with the outputs generating inefficiencies rather than productivity gains. Part of the problem seems to come from organisational leadership and the way generative AI is being implemented.

    WARC have published a report which looks at What’s working in generative AI from a marketing perspective. Some of the ideas like synthetic data in market research are not quite in prime time yet and generative AI’s large carbon footprint can’t be ignored.

    Digitalisation and brands

    Harvard Business Review published research that indicated a weaker relationship between profit share and brand in certain types of businesses. On the face of it, this supports Scott Galloway’s ‘end of brand‘ hypothesis. WARC covered the research paper in depth pointing out that for each percentage gain in market share highly digitised businesses gain 0.19% increase in profit compared to 0.26% in less digital businesses. This seems to be due to a multitude of factors:

    • Efficiency gains due to digitalisation have an effect on the existing profit prior to the market share. Efficiency is the main selling point of much digital automation from CRM systems to performance advertising.
    • Market power of larger companies ( a la Google).
    • Perceptions of quality – digital-only companies might look more reputable due to the lack of real-world signals to the contrary

    Market share (and brand) still matters, but it hits different depending on the business. B2B and growth hacking business approaches gain less than consumer orientated businesses. A larger dataset of Kantar-sourced data analysed by Oxford University researchers found that better brand effects were down to ‘difference’  as in how customers see – and experience the brand – as being different enough from competitors.

    FEAST

    FEAST

    FEAST is an occasional magazine and curated set of events all about food and its ingredients. If you are a strategist working with a food or beverage client it’s well worth exploring their archive as a source of inspiration for insights given its in-depth and thoughtful arts-based approach.

    Streaming plateau

    I finally got to dive into Ofcom’s Media Nations research report. I recommend that if you are involved in the advertising-media industrial complex in any way shape or form, spend some time reading it. On the plus side, survey respondents consider accurate balanced news as a key part of the public service mandate of radio and television. Secondly during 2023, broadcast brought many of us together still for key events including the first episodes of tentpole series.

    SVoD
    Ofcom

    More dispiritingly, I realised that amongst the tentpole TV series was season 23 or I’m a Celebrity, Get Me Out of Here. TV advertising revenues declined faster than online video revenues grew and subscription based video on demand take-up plateaued. It’s pure speculation on my part, but this might have been reached because COVID accelerated adoption.

    Finally, as a film fan who buys Blu-Rays of films that don’t appear on streaming services consistently, the amount of time watching DVDs and and Blu-Rays have a very small usage across all age groups. I don’t think that’s good news for arthouse and cult cinema.

    Things I have watched. 

    The Crow – less of a remake of the iconic Brandon Lee film and more of a reinvention of the franchise. It’s a good if unengaging film, many of the young adult audience I went to see it with won’t have the original or the comic books as a reference point. It has been described on other parts of the net as ‘the worst movie of the year‘. This is probably a bit unfair; there is a lot of ‘straight to Netflix’ dross out there. FKA Twigs character in the film grew on me as I watched it.

    The last time I saw The Terminator in a cinema was in a double bill with the then newly launched Terminator 2 at the then new Odeon multiplex in Bromborough. I got to see it again thanks to a 4K restoration. Despite having seen The Terminator several times on tape, DVD and Blu-Ray – this time it hit different. It hit harder and it was all down the way the screen filled my vision and the punch of the sound track. Despite in-home cinema set-ups, you just can’t get at home unless you live in a large industrial unit sized home. The analogue special effects held up surprisingly well and the plot was just as taunt as I remembered it. There was less people in the cinema than for the screening than for The Crow.

    As I write this, I have just watched episode one of the latest series of Slow Horses. It has gotten off to the high standard set by the previous series and book. Time to put on my Roddy Ho t-shirt again.

    Useful tools.

    Table Capture

    If you’ve ever tried to cut and paste a table and data from a website into an spreadsheet and then spent the rest of the afternoon parsing it in cell-by-cell you will appreciate the benefit of this browser extension.

    Humaniser for GPT created content

    If you’re reading this, chances are that you’ve used services like Claude, ChatGPT or Gemini as a starting point for copy, or to summarise documents. UndetectableGPT looks at providing alternatives to ‘tell-tale’ phraseology in generative AI copy.

    Data analysis

    Groupt will take a CSV file and categorise the data including visualisation, so you only have to focus on wrapping a narrative around it to fit into the wider storytelling of your presentation.

    The sales pitch.

    I am now taking bookings for strategic engagements from January 2025 onwards; 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 September 2024 newsletter, I hope to see you all back here again in a month. Be excellent to each other and onward into October and crispness of a bright autumn morning!

    Don’t forget to share, comment and subscribe!

    Let me know if you have any recommendations to be featured in forthcoming issues. 

  • Mooncakes + more things

    Mooncakes

    Mooncakes were a big part of my time in Hong Kong and Shenzhen. This year, mid-September marked mid-autumn festival across Asia or known as Chuseok in Korea. It is similar to harvest festivals that happen elsewhere in the world.

    It is celebrated in Chinese communities with mooncakes. Mooncakes traditionally have been made of fat filled pastry cases and lids filled with red bean or lotus seed paste and a salted dried egg yolk.

    Mooncakes are moulded and have auspicious messages or symbols embossed on the top, like the double happiness ideogram which also appears on new year decorations and at weddings.

    Moon Cake

    In the past mooncakes have been used to make political statements in Hong Kong where they were embossed with messages against the Fugitive Offenders and Mutual Legal Assistance in Criminal Matters Legislation (Amendment) Bill 2019. This mirrored mooncake history, where concealed messages were alleged to have been used to ferment rebellion against Mongolian rule in China centuries ago.

    China saw a halving of mooncakes sold this year, compared to last year. This is a mix of fast-moving events like the state of consumer spending and longer term factors including gifting culture and attitudes to health and fitness.

    The economy

    The consumer economy seems to be doing worse than industrial output. Youth unemployment is still an issue.

    Gifting culture

    China saw a crackdown on premium priced mooncakes as part of a government move against ‘excessive consumption‘ driven by societal excess and ‘money worship’. This overall movement has dampened luxury sales. The Chinese government stopped officials buying mooncakes a decade ago as part of a crackdown on corruption.

    Some consumers just aren’t into them

    They were as divisive as Christmas cake is in Irish and British households. Brands like Haagen-Daz and Starbucks have looked to reinvent mooncakes into something more palatable.

    Health and fitness

    Health and fitness has been steadily growing as a trend in China. A number of reasons have been at play including changing beauty standards. Chinese women are still going to favour slimness over muscle, but home workouts and running have been increasing in popularity. The fitness industry has been growing and the Chinese government has also tried to foster interest in winter sports. So there would be a good reason to avoid ruining all the hard work that you put in by eating mooncakes.

    Business

    Nike CEO John Donahoe to Step Down | BoF

    Economics

    Why Do Workers Dislike Inflation? Wage Erosion and Conflict Costs* by Joao Guerreiro, Jonathon Hazell, Chen Lian and Christina Pattersonworkers must take costly actions (“conflict”) to have nominal wages catch up with inflation, meaning there are welfare costs even if real wages do not fall as inflation rises. We study a menu-cost style model, where workers choose whether to engage in conflict with employers to secure a wage increase. We show that, following a rise in inflation, wage catchup resulting from more frequent conflict does not raise welfare. Instead, the impact of inflation on worker welfare is determined by what we term “wage erosion”—how inflation would lower real wages if workers’ conflict decisions did not respond to inflation. As a result, measuring welfare using observed wage growth understates the costs of inflation. We conduct a survey showing that workers are willing to sacrifice 1.75% of their wages to avoid conflict. Calibrating the model to the survey data, the aggregate costs of inflation incorporating conflict more than double the costs of inflation via falling real wages alone

    FMCG

    Unilever ends up as a punching bag for Greenpeace and having their purpose blown up. As a campaign idea, the public celebration by the Dove brand team of the 20th anniversary of Dove’s real beauty positioning and creative left themselves open to this. Greenpeace used a skilful reframing in this creative.

    The reason why the developing world seems to be disproportionately affected by plastic waste highlighted is for a number of reasons:

    • A lot of and paper and plastic recycling is shipped abroad. It used to go to China, but they declined to accept waste to recycle from 2018 onwards. So this waste went to other markets.
    • Developing markets have single portion packaging so that FMCG companies can distribute via neighbourhood shops and sell the product for the price a consumer can afford.
    • Plastic is easier to colour, manufacture, package and transport than glass, metal or coated paper. Biodegradable or effective post-use supply chains are well behind where they should be. And even if you were open to recycling, there may be brand issues.

    Innovation

    Chinese scientists claim they can use Starlink satellites to detect stealth aircraft | BGR

    Japan

    AI will help Sony expand Japanese anime’s growing fan base | FT – but would also help competitors out-produce Sony. Expect a Chinese anime avalanche.

    Marketing

    Campbell’s drops the ‘soup’: what the evidence says about adapting brand fundamentals | WARC

    Media

    OpenAI Messed With the Wrong Mega-Popular Parenting Forum | WIRED

    Retail media frenzy muddies negotiations with brands, who agency execs say must spend or ‘suffer the consequences’ – Digiday and Retail media networks put the squeeze on brands | WARC – Spending on RMNs could be seen as part of normal partnership agreements between brands and retailers that have traditionally included marketing commitments. That shades into a grey area if retailers become focused primarily on growing their ad business, but those same retailers can’t expect brands to spend more unless they can demonstrate results. At the same time, brands have their wider media mix to consider.

    In context

    • The pairing of advertisers with consumers close to the point of purchase via rich, first-party data is leading to better ROI relative to other channels for some advertisers and is cited as a key driver of increasing retail media investment.
    • Retail media is growing in double digits every year; it currently accounts for around 14% of global ad spend and is projected to account for 22.7% of online advertising by 2026.
    • Retail media is no longer a ‘medium’ in the conventional sense but is instead evolving into an infrastructure underpinning the entire digital advertising ecosystem. 

    Content Creators in the Adult Industry Want a Say in AI Rules | WIRED

    Security

    JLR’s letter: what Land Rover’s doing to stop your older car getting nicked | CAR Magazine – update on JLR’s security crisis

    Software

    A brief history of QuickTime – The Eclectic Light Company

    Technology

    NTT Data builds a mainframe cloud for Banks • The Register – mainframes are still amazing for large scale batch processing

  • Not the target demographic

    My parents are not the target demographic for most brands. Like me they don’t see themselves represented on screen. Even the old guy from the Werther’s Original advert doesn’t appear any more.

    Spending some time with them recently allowed me to see what brands might be missing out on and how they related to brands.

    Why are they not the target demographic?

    Let’s do a thought experiment. If we asked marketers about why my parents aren’t the target demographic. There would likely be a range of answers and I am guessing that these would be prominent amongst them:

    • They aren’t aspirational
    • They aren’t culturally relevant
    • We’re after lifetime spend, that means below 35
    • We don’t understand them
    • We can’t reach them
    • They’ll have set behaviours

    They aren’t aspirational

    Neither are most brands, despite what marketers might want to think. Your supermarket is full of functional brands, as are utilities like electricity, gas suppliers, water board, broadband and mobile operators. You don’t virtue signal your status through being on Plusnet, but you might do through your iPhone. Funnily enough the accessibility features, simplicity of design and ease of my providing technical support means that they run an Apple household. They do want their house to look nice, be clean and are thinking about replacing their car. They’d like to go out and see things and maybe even do a bit of travel.

    One fact from the Pew Research Centre surprised me, but spoke directly to aspiration. Retirement age people are twice as likely than the working population to be entrepreneurs working in self-employment. BBH interviewed 20 retirement age people in Britain and found that they strived for significance.

    They aren’t culturally relevant

    Neither is the advertising industry a lot of the time, despite attempts to diversify it is still overwhelmingly southern and middle class. If you go up north commercial dance music radio sounds very different from what you would hear in London.

    Even clothing brands signalling are different. At the moment in Liverpool, locally designed apparel brand Montirex is more common than Gym Shark, Nike or Under Armour. Is this difference reflected in what we see from ad agencies? Often not.

    The advertising industry isn’t culturally relevant for a lot of young people let alone older people who would be considered to be not the target demographic. Finally, ZAK pointed out in their work Learn to Time Travel that culture is cross-generational. And we can think of lots of tastemakers who are older: streetwear OGs like Alex Turnbull, Marc Fraser, Hiroshi Fujiwara, Nigo, John Landis or Michael Kopelman. Slightly younger designers like Yoon Ahn, who is in her late 40s, are barely hitting their stride.

    We’re after lifetime spend, that means below 35

    Most western countries are aging. In the UK’s case the average age of the population is 43. People are living longer, but also wealth / power to spend moving in favour of older people and has been for a good while.

    We don’t understand them

    As an industry we have little, if any understanding of older people. We don’t work with older people according to the IPA agency census. No one retired in advertising last year, only 7% of our industry are 50 or over. The average age of our industry is 34.6 years old, compared to the UK average of 43.

    In the US, the Pew Research Centre, alongside the likes of Ofcom in the UK have published some basic research to get things started.

    BBH London have tried to start learning more about older consumers with their Silver Culture Project.

    And just like youth culture demanded attention 70 years ago, this too deserves to be seen, heard and celebrated. 

    One in five people in the UK is over 65. 
    In less than 20 years that will be one in four.* 

    The over 65s hold over half of the UK’s wealth, with the average 65+ household having a net worth of £500k-£1 million.

    We can’t reach them

    I was reminded of a LinkedIn post by Steve Walls where he talked about how little of the adverts celebrated by the ad industry he actually saw when he wasn’t on LinkedIn. It’s a sentiment I could relate to. Stepping away from LinkedIn and watching evening television with my parents, I ended up watching more FMCG-related advertising than I had seen during my usual more online-based life.

    I particularly liked the way Flash had doubled down and repeated the same creative for the past four years or so.

    My Dad got a bit excited showing me the Twix bears. They were short listed for Cannes in 2022 and as an advert it just works regardless of age. My Dad beamed as he talked along with the bears word-for-word. Kit Kats have been displaced in his shopping trolley by Twix.

    The Twix bears

    My Dad also likes the Vitality dachshund and the Compare The Market meerkats. While its reassuring seeing that fluent objects, humour and creativity work for all generations, it also implies that despite him being not the target demographic media planners still seem to be doing a better job reaching my Dad compared to myself (or Steve Walls.)

    There are some less memorable ads out there such Colgate Total’s dentist endorsement.

    They’ll have set behaviours

    This fails to recognise two things. Older people do change behaviour over time if it makes sense. You can see this is higher than expected level of technology adaptation by older generations. For instance, they are still using cashless payments, despite a lifetime of cash and cheque books.

    They are technology users, including smartphones, but less of them are using social media (and that might not be a bad thing). More retirement age people are working than ever before, the number in the US has doubled in a decade.

    In my parents case, behavioural change came partly due to COVID, they embraced Amazon to buy cleaning products, supplements, motor oil and vacuum cleaner spare parts.

    Secondly, behaviour change is often forced upon them from medically induced changes such as giving up smoking. Then you have physical changes from less range of movement, hearing or vision to incontinence.

    Some brands have tapped into this market.

    Always Discreet

    Procter & Gamble have extended their Always menstrual pad brand to cover incontinence due to aging. Discreet are underpants with a built in pad allowing users to continue having a normal life. Procter & Gamble has managed to move from ‘not the target demographic’ to new product innovation and brand extensions.

    You can find more related posts here.

  • Southport + more things

    Southport

    At the time, when the stabbing of three little girls happened in Southport, I was in Merseyside. Even though I was just miles away from the town, it felt like another country. The locals I was with and I watched on with detached shock as riots unfolded on newsfeeds.

    Thuggery

    The general sense was that ‘it couldn’t happen here’ But it had. This was usually followed by ‘despite what people see, this isn’t the kind of people that we are’. Yet Merseyside has long had a well-deserved reputation for organised (and disorganised) crime. Apart from a pier and a sea view that on a clear day allowed you to see oil rigs on the horizon, Southport is very similar to most of Merseyside. Rumours had swirled on neighbourhood WhatsApp groups about the attackers background. Secondly the vast amount of rioters being prosecuted, were not neo-nazis from out of town but local trouble-makers whose guiding idea was the joy of the fight. The police were able to arrest many of them as easily identifiable known faces. Pair the trouble-makers with good weather and an inciting incident and chaos ensued. There is continued latent anger for various reasons just waiting for an excuse to break out and the Southport stabbings were a vehicle.

    The thin membrane of civility was punctured. The chaotic nihilism on display mirrored the 2011 riots, with less opportunity for profitable looting. Southport is ‘everyneighbourhood’. It represents an underlying volatility in UK society that is deeper than the hundreds of rioters on Merseyside. There is probably more Southport in many people than we would care to admit.

    Consumer behaviour

    The People Who Quit Dating – The Atlantic

    Energy

    Implications of the EU’s Carbon Border Adjustment | FTI

    How one South Korean garage fire could affect the EV market | FT – transparency in battery sourcing and real truths on strategic resilience.

    Finance

    Meaningless board games at HKEX, and how the UK FCA has just made an awful mistake – comments on LSE are particularly interesting

    FMCG

    The Katsuification of Britain – Vittles

    Middle East turns to non-alcoholic beers, healthier than colas and not tainted by Gaza war | South China Morning Post – Alcohol-free beer sales grow in the Middle East, for health reasons and because, amid Gaza war, Pepsi and Coca-Cola are seen as pro-Israel

    Gadgets

    Chromecast is Dead. Long Live the 12th Attempt at a Streaming Box.

    Logitech’s ‘forever’ mouse isn’t happening – The Verge

    Hong Kong

    US Firms Warn Against ‘Unprecedented’ Hong Kong Cyber Rules – Bloomberg – technology firms have warned that proposed cyber regulations could grant the Hong Kong government unusual access to their computer systems, highlighting the latest challenge to Western tech giants in the city. The Asia Internet Coalition, which includes Amazon, Google and Meta is among the bodies that have in recent weeks criticized new rules that officials say are designed to protect critical infrastructure from cyberattacks. Critics argue the proposals give authorities overly broad powers that could threaten the integrity of service providers and rock confidence in the city’s digital economy.

    Ideas

    Wired | Encyclopedia of the New Economy – probably one of the most influential things that I read during the first internet boom

    Innovation

    AI creates acoustic metamaterials | EE Times Europe – interesting work at Pusan University to reduce noise pollution

    London

    No. This is NOT just “far right thuggery” – Matt Goodwin

    Luxury

    Macau’s tourism transformation: Luxury brands left behind? | Jing Daily

    Auction houses aim to lure Asia’s ultra-rich with new openings | FT – this had been happening since before 2019. A more cynical observer might point out how useful auction houses are to faciliate capital flight from the mainland.

    Marketing

    WFA discontinues GARM – World Federation of Advertisers

    Attribution is Dying. Clicks are Dying. Marketing is Going Back to the 20th Century. – SparkToro

    All Airlines Are Now the Same – The Atlantic – a lack of distinctiveness in US airline offerings

    Steven Bartlett Huel and Zoe adverts banned by ASA – BBC News

    Most brands fail becaue they never do this – The Strat Labs

    The Future of the GE Brand – STRONGBRANDSSTRONGBRANDS

    Google threatened tech influencers unless they ‘preferred’ the Pixel | The Verge – that’s some straight up vintage Microsoft tactics right there.

    Media

    Prime Video Ads Have Yet to Pay Off | The Information

    Brands Love Influencers (Until Politics Get Involved) – The New York TimesWith the presidential election looming, some marketing agencies have started to pitch advertisers on new tools that grade the so-called brand safety of social media personalities. Some of the tools even use artificial intelligence to predict the likelihood that a particular influencer will discuss politics in the future.
    A tool recently introduced by Captiv8, a marketing firm that helps advertisers like Walmart and Kraft Heinz connect with influencers, uses artificial intelligence to analyze mentions of social media stars in online articles, and then determines whether they are likely to discuss elections or “political hot topics.” The firm also assigns letter grades to creators based on their posts, comments and media coverage, where an “A” means very safe and a “C” signals caution. The grades incorporate categories like “sensitive social issues,” death and war, hate speech or explicit content.

    The Race Is On to Build The Next Profitable Streaming Service – Bloomberg

    Online

    Misleading TikTok alerts include false Taylor Swift claim and old tsunami warning | FT

    X Sees Decline In Users And Most Of Them Are From Europe | Digital Information World

    Palantir CEO: Trump’s Rise Is Tied to the ‘Excesses of Silicon Valley’ – Business Insider

    Retailing

    Pitney Bowes sells its global e-commerce segment – Parcel and Postal Technology International

    7-Eleven owner receives Japan’s biggest ever foreign takeover approach | FT – huge for Asian grocery retailing. 7-Eleven is the neighbourhood grocery store for Japanese and many other countries across Asia. In Japan, 7-Eleven is the dominant brand, combining it with Circle K would radically change the marketing dynamics. In a market like Hong Kong it’s effectively a duopoly with Circle K. The approach is likely more about 7-Eleven’s US filling station network. Expect the Asian business to be sold on (to private equity) if the deal goes through.

    Security

    Almost unfixable “Sinkclose” bug affects hundreds of millions of AMD chips | Ars Technica

    Intel failures: A cautionary tale of business vs engineering • The Register – interesting analysis of Intel Semiconductor at the moment

    Royal Mail launches new ‘fake stamp scanner’ | Money Saving Expert

    Germany blames China for ‘serious’ cyber attack

    Software

    Change blindness – by Ethan Mollick – One Useful Thing – the change in LLM performance over the past two years

    Digital Equivalent of Inbreeding Could Cause AI to Collapse on Itself : ScienceAlert more on this here.

    Style

    Ambition doesn’t need permission* – by Brian Morrissey – Nike’s multitude of business issues

    Web-of-no-web

    Immersive Technologies and the Metaverse: Recommendations and Overview – BBC R&D

    Amazon to acquire Perceive for $80M from Xperi, expanding its AI technology for edge devices – GeekWire

    China will launch first satellites of constellation to rival Starlink, newspaper reports | Reuters – A Chinese state-owned enterprise (Shanghai Spacecom Satellite Technology) is launching the first batch of satellites for a megaconstellation designed to rival Starlink’s near-global internet network, a state-backed newspaper reported on Monday.It matches Beijing’s strategic goal of creating its own version of Starlink, a growing commercial broadband constellation that has about 5,500 satellites in space and is used by consumers, companies and government agencies.