Over the space of 20 years, luxury changed enormously. The Japanese had been a set of new consumers for luxury, but in terms of numbers they hadn’t eclipsed the US as the biggest market for luxury.
China’s ascent into the WTO (World Trade Organisation) made a lot of business people and politicians a lot richer. China challenged the US in terms of luxury market size. On their rise, Chinese consumers changed a lot in their sophistication as they educated themselves on luxury consumption.
These new consumers picked up new traits such as wine drinking. This also meant that luxury goods became new asset classes as Chinese money looked to acquire only the best. Chinese culture in turn impacted luxury design. Chinese new year became more important than Christmas.
Then there was the second generation money. Young rather than old consumers. Consumers who were looking for something less formal, either because they didn’t wear anything but streetwear or they worked in the creative classes rather than the traditional professions and high finance.
The industry had traditionally avoided rap artists and R&B singers, now Jay Z and Beyonce are the face of Tiffanys and Fendi had collaborated with Rihanna.
They no longer wanted to have to wear a jacket and tie to have afternoon tea at the Mandarin. They took an eclectic look more attuned to the Buffalo Collective than Vogue Italia.
You had hybridisation with the street to create a new category of luxe streetwear in a way that also owes a debt to football casual terrace wear and the pain.
Now you have Zegna badge engineering approach shoes from alpine brand La Sportiva and Prada has done a similar thing with adidas’ iconic Stan Smith tennis shoes. Balenciaga with their Speed Sock looks like a mix between Nike’s flyknit football boots and the Nike Footscape sole.
Luxury has traditionally reflected status. Goods of a superior nature that the ‘wrong sort’ of people would never be able to afford. Luxury then became a symbol that you’d made it. In Asian markets, particularly China, luxury became a tool. People gifted luxury products to make relationships work better. It also signified that you are the kind of successful business person that partners could trust. You started to see factory managers with Gucci man bags and premium golfwear to signal their success. Then when the scions of these business people and figures in authority were adults, luxury has become about premium self expression.
Arbys trolls McDonald’s over Filet-O-Fish | US Today – you realise how important christianity is in the US when this is going on for the Lenten fish sandwich market. (As far as I can tell, Arbys is like Subway, but serves at least some of their sandwiches in a bap rather than a roll. And has a sides menu closer to say Pizza Hut.) Prayer meetings in the White House and creationism given equal time to evolution on NPR is one thing. Conscious christian consumerism is quite another for your average secular marketer to consider, which is why Arbys vs McDonald’s seem unusual. Given the rise of ‘nones‘ in the American population, particularly young people, Arbys may put off more customers over the long term than it attracts
Brand New: New Logo for BMW – looks a lot flatter, better for glanceable app icons, printing, possibly printed or vinyl car badges rather than the traditional car badge. More branding and marketing related items here.
The Dark Side of China’s Idol Economies | Jing Daily – enraged by Xiao fans’ censorship plot, millions of free speech activists began boycotting Xiao Zhan and the dozens of brands he campaigns for, including Estée Lauder, Piaget, and Qeelin. But they’ve gone further than the usual boycott by promoting competitors of Xiao-promoted brands, crashing Xiao-sponsored brands’ customer service lines, and pressuring those brands to end their collaborations with Xiao. So far, the Weibo hashtag #BoycottXiaoZhan# has exceeded 3450,000 posts and 260 million views.
Streetwear still hot, influencers not | Financial Review – Forty percent of North American and European respondents said that “community” had been key to their interest in streetwear; only 12% of Asian respondents said the same. (But 41% of Chinese and Japanese respondents said that wearing streetwear was a political act, something that only 11% of North Americans and Europeans reported.)
Innovation of the Day | Panera – Panera launched its MyPanera+ Coffee subscription program, offering customers unlimited coffee for USD 8.99 a month. Burger King apparently did a similar scheme it would be interesting to hear how they got on
Mediatel News: How to make, break and shape consumer habits – But when Febreze added a nice smell and advertised the product as a spray to use at the end of cleaning – using the tagline ‘two sprays & we’re clean’ – it became very successful. This is because it created a new habit. It was able to do this because it created a consistent trigger and reward for use. The trigger was when someone finished cleaning. The reward was the added nice smell, which customers came to associate with a cleaning job well done. By having a consistent trigger (people often finish cleaning – or at least people who aren’t me often finish cleaning) and reward, the product shifted from failing launch to a billion dollar brand.
Mark Ritson: Coronavirus won’t hurt Corona, it will actually boost sales – differentiation, particularly at the symbolic level, was overstated. Any evidence that people perceived Brand A as vastly different from Brand B could be largely explained by its size and prior purchase experiences. Purchase caused brand image, not vice versa. Ergo building a brand image was waste of marketing effort. The big job of brand was to create salience, so a brand came to mind in buying situations. – Great discussion on the brand salience of Corona beer during the COVID-19 pandemic. On the flipside Corona probably won’t get a brand lift from the corona discussions around a solar eclipse either
Terabytes Of Stolen Adult Content From OnlyFans Have Leaked – There are communities on Reddit and Telegram dedicated to cracking performers’ accounts and sharing the content without their consent. Many of those videos eventually make their way to various tube sites. A similarly large, though different, OnlyFans leak was posted last Saturday to forums dedicated to cracking and leaking pirated content – that is one of the bleakest things that I’ve read in a good while. Especially given the amount of people who are turning to DIY porn on OnlyFans due to the corona virus disrupting employment for low paid services jobs and the entertainment sector
IBM and Microsoft sign Vatican pledge for ethical AI | Financial Times – the pledge, called the “Rome Call for AI Ethics”, will be presented on Friday morning to Pope Francis by Brad Smith, the president of Microsoft, and John Kelly, IBM’s executive vice-president, as well as Vatican officials and Qu Dongyu, the Chinese director-general of the UN Food and Agriculture Organisation – so it wasn’t a Vatican driven initiative after all but a public affairs exercise
Baidu/tech groups: traffic warning | Financial Times – But higher traffic does not equate to higher income for search platforms. The contrast is with gaming, where more time playing means surging in-game purchases. For Baidu, which makes about three-quarters of total revenue from advertising, that is bad news. Even before the outbreak, a slowdown in China had trimmed the advertising budgets of clients. Marketing campaigns have now been cut further. Cancelled events and concerts contribute to the malaise. Baidu’s biggest clients, which include online gaming companies, real estate developers and plastic surgery clinics, have little incentive to advertise. A surge in new sign-ups for online games means fewer game ads are needed. Demand for homes has plunged and some cities have banned home sales altogether. Plastic surgery clinics, a lucrative source of core ad revenues, are taking a hit.
Otl Aicher: The Olympic Designer Who Shaped Your Journey To The Toilet – Flashbak – Like a paperclip, we don’t think of Aicher’s pictograms as designed objects per se, but rather as the objects themselves. The chairs we own are someone’s take on a chair. That’s not the case with the average, everyday paperclip. It is what it is, a paperclip. That’s it. Objects at this level of comprehension are simply there. They feel as though they have always been there, and did so from the moment they were presented to the masses. In every country, in every city, they are simply there. In the case of Aicher’s icons they’ve become shorthand that everyone can understand, a set of simple shapes that successfully tells us where to go when we need to use a bathroom. – pretty much sums it up
LinkedIn | Balenciaga Summer 2020 collection video – Jay Owens – This is a genius bit of media buying for a collection themed around power and power dressing. The catwalk show saw private equity associates, architects & engineers stalk an EU-blue stage set like a parliamentary building. Advertising on LinkedIn now is just 👌– nails context
Featured Customer – Oscar the Grouch – Squarespace – I used to hate writing case studies for technology companies at the start of my career, but I do like this one that Squarespace did for Oscar the Grouch
How Japan’s family businesses use sons-in-law to bring in new blood | Financial Times – For hundreds of years, owners of Japanese companies have been adopting their sons-in-law as a way to recruit talent — a practice known as mukoyoshi — giving rise to the saying “You can’t choose your sons, but you can choose your sons-in-law”. The histories of zaibatsu (conglomerate) families such as Sumitomo, Mitsui and Iwasaki (of the Mitsubishi group) are studded with adopted relatives and sons-in-law
The Sun posts £68m loss as it pays out £27m in legal costs over phone-hacking scandal – However, revenue at News Group Newspapers for the 52 weeks ending 30 June 2019 were up, with total turnover growing to £420m in 2019 from £401.4m in 2018. Circulation of The Sun was down to 1.38 million last year from 1.51 million in 2018, and fell to 1.16 million from 1.28 million for The Sun on Sunday. – so despite revenue increasing losses were up. You also have to wonder how sustainable revenue increases can be with a declining audience
How Adidas is using WhatsApp as a direct marketing channel – Digiday – The most recent example of the strategy was the “100% Unfair Predator” campaign. Earlier this month, Adidas opened up a hotline on WhatsApp for people in need of a footballer to cover for unreliable teammates on their team. Adidas-sponsored players were made available for games last week once fans had shared some basic information with the hotline such as the game they need the player for. The company’s marketers would notify fans on the morning of their game if their request was successful. The rented players turned up dressed in Adidas’ new Predator20 Mutator footwear. “We know our audience use it to share fixture info, team selection — and team-mates messaging to find last-minute replacements,” said Coveney. “WhatsApp was perfect for the more functional elements of the ‘Rent-a-Pred’ hotline as it allowed consumers to share private information one-to-one with us for review, before being allocated a Predator player near them.”
Tablet demand in China gaining momentum from epidemic | DigiTimes – compared to global demand drop of 20% predicted for tablet computers. This is a fascinating change. Any explanation of this tablet demand is just a hypothesis. My own guess is . More tablet computer related posts here.
Great mix by Andy Weatherall. It is interesting that for a considerable amount of time there was destination radio and a loyal taping culture. Some cassette decks featured timers similar to a video recorder. People would set them up before they left. Prior to digital formats becoming commonplace, I remember die-hard fans using VHS Hi-Fi audio recording to capture these shows in as high a quality as possible. More listening material here.
Targeting v context | Campaign Live – really interesting article by Dave Trott. I’d argue (like Dave has) targeting and context together is what matters, rather than targeting or context.
WSJ City | Victoria’s Secret goes private at $1.1 billion valuation – this is down from over $7 billion. This marks the end of an astonishing destruction of value. The company was also quick to get the power of online. Designers now think live-streaming their show is a matter of course. Back in 1999 I worked at an agency where we did their first live stream. They were also quick to get into e-commerce.
Regulating AI in health and care – NHS Digital – no privacy expert on this panel – which is a bit concerning given they are talking about the business opportunity and regulating AI. More machine learning related posts here.
Dutch army Maj. Christiaan Hoff, left, and Royal Australian Navy Lt. Cmdr. John McHugh, right, perform oral surgery to remove a tumor from a Filipino woman aboard Military Sealift Command hospital ship USNS Mercy (T-AH 19) June 27, 2012, in Samar, Philippines
Coronavirus response benefits Watsons: YouGov | Campaign Asia – Hong Kong tycoon Li Ka Shing, who’s majority-ownership of the Watsons franchise is well-known, pledged HKD$100 million (US$13 million) to combat the coronavirus. All of these responses appear to have been met with popular approval for the brand. Since the start of the year, Watsons’ Current Customer score has risen from 20.2 to 29.0, a rise of +8.8 points. Its Recommend score has risen from 9.9 to 16.9 , an increase of +7 points. Finally, its score on YouGov’s Buzz index has jumped from 8.6 to 25.4, a significant increase of +16.8 points. – Li Ka Shing always comes out of a crisis better than he went in
Coronavirus Test Kits Sent to States Are Flawed, C.D.C. Says – The New York Times – the failure of the kits means that states still have to depend on the C.D.C., which will mean several days’ delay in getting results. The C.D.C. announced last week that it had begun shipping about 200 kits to laboratories in the United States and roughly 200 more to labs in other countries. Each kit can test about 700 to 800 specimens from patients, the agency said. – this is frightening (paywall)
The power of niche | Campaign magazine – Dave Trott on GOOP – The New York Times said: “The weirder GOOP went, the more its readers rejoiced. Every time there was a negative story about her or her company all it did was bring more people to the site.” Paltrow told a class of Harvard students: “What I do is create a cultural firestorm, and I can monetise those eyeballs.” – cultural firestorm or memorable cultural industrial accident? I agree with Trott to a point. But I can’t work out if GOOP is doing ‘good’ outrage like Benetton managed to do with its ad campaigns, or ‘bad’ outrage like Michael O’Leary at Ryanair. Secondly, you might buy GOOP earrings but would you tell anyone where you bought them? Would they be judging you because you’re a GOOP customer. The problem GOOP has is that it’s not causing outrage with the old or conservative per se. It’s more likely to be customer’s peers thinking that as a GOOP customer you buy into bunkum of Palthrow. Brand neighbourhoods are still important and GOOP nestles comfortably in crank corner with David Icke and Uri Geller. More on beauty related stories here.
Benetton ad from the 1980s which contrasted with the Reagan-era Cold War sentiment of the Soviet ‘evil empire’
South Korea’s Government Explores Move From Windows To Linux Desktop | Slashdot – The reason for this is simple. It’s to reduce software licensing costs and the government’s reliance on Windows. As Choi Jang-hyuk, the head of the Ministry of Strategy and Finance, said, “We will resolve our dependency on a single company while reducing the budget by introducing an open-source operating system.” – back in the day South Korean online security depended on support for ActiveX, how far things have moved on
Slick Inbox – interesting idea. BUT RSS, VIP section in mail.app are all competitors
How Your Laptop Ruined Your Life | The Atlantic – Earlier this week, a woman managed to find a seat next to me on the train, took out her laptop, and started plugging away at a spreadsheet. The sight filled me with dread, as it does every time I spot a fellow commuter writing code or finessing a PowerPoint while I listen to podcasts. I suddenly became much more aware of the hard, thin edge of my own work computer, digging into my thigh through my tote bag. – Whatever happened to thinking time?
What Happens When a High-Tech Apparel Brand Shares the Same Name as the Company that Backed the Controversial Iowa Caucus App? — The Fashion Law – Not nearly as under-the-radar as ACRONYM, the political organization, ACRONYM, the apparel company, is, nonetheless, situated more behind-the-scenes than the majority of its peers. As writer Adam Wray detailed in 2013, “You’d be forgiven for not knowing much about ACRONYM.” Despite having significant clout when it comes to technologically-advanced apparel and amassing a list of famous fans (think: Kanye West, John Mayer, Jason Statham, best-selling author William Gibson, and mixed martial arts champ Max Holloway, just to name a few), “the company never advertises and with no public relations strategy to speak of, its founders are tough to reach.” Hugh and his co-founder slash business partner Michaela Sachenbacher “prefer to let their designs” – which are heavy on the GORE-TEX technology and utilitarian-focused hacks, and too expensive for most – “speak for themselves.” Yet, “whether you know it or not, [ACRONYM has] been pacing the vanguard of technically-focused fashion for nearly two decades.” – having worked in an office with the unfortunate name of ISIS House, an acronym that it shared with a terrorist organisation I can understand some of the pain for Errolson Hugh and company
精進カップラーメン | zen-foods – vegan friendly instant noodles, I’d be surprised if these don’t start appearing in Whole Foods soon
‘A bit impersonal’: The rise of influencer marketing agencies rankles influencers – Digiday – “When I reach out to brands directly, they tell me to apply for their programs through their affiliated network, which means I lose whatever personal connections I might’ve had and the ability to negotiate,” Groffman said. A company he had worked with for years recently referred him to its influencer network, he added. “Influencer marketing has finally matured as an industry,” explained Kristy Sammis, executive director of the Influencer Marketing Association, in an email. “Brands are now willing to allocate significant budget to strategic influencer programs. This means they need scale, benchmarks, and guarantees. That’s simply not possible with one-on-one influencer relationships.” Currently, influencers lack a standardized set of rates, yet a myriad factors can go into setting a price. That said, a $10 cost per thousand impressions is a baseline for influencers working on Instagram and Instagram Stories, according to Village Marketing founder Vickie Segar. She added that for every 100,000 followers, that rate grants an influencer $1,000 a post. Plus, companies and influencers might additionally negotiate usage rights and exclusivity, which could increase the fee. Terms vary by company, but payment can take from 30 days to 120 days – it’s probably because brands don’t want to have to filter out chancers and assholes themselves. Secondly, algorithms mean influencers are no longer an effective form of reach
The Era of Antisocial Social Media | HBR – saying that after years spent constructing carefully curated online identities and accumulating heaps of online “friends,” they want to be themselves and make real friends based on shared interests. They’re also craving privacy, safety, and a respite from the throngs of people on social platforms — throngs that now usually include their parents. To reach these younger audiences on social, marketers are going to have to re-think their approach. The first step is to understand the distinct characteristics of these more closed, and often more private and interactive online spaces. Since I believe that naming a trend helps provide a framework for understanding it, I have dubbed these spaces “digital campfires.” – to misquote Satre Hell is other people. From a brand perspective digital campfires are more attractive than the digital dumpster fires that channels like Twitter and YouTube often descend into
Daring Fireball: My 2019 Apple Report Card – well worth reading, though I think Apple should have showed some backbone in Hong Kong – I have never been so disappointed in a brand
A mercenary army of the poor? Technological change and the demographic composition of the post-9/11 U.S. military: Journal of Strategic Studies: Vol 0, No 0 – the U.S. military no longer primarily recruits individuals from the most disadvantaged socio-economic backgrounds. Technological, tactical, operational and doctrinal changes have led to a change in the demand for personnel. As a result, on different metrics such as family income and family wealth as well as cognitive abilities, military personnel are on average like the average American citizen or slightly better – there is also the aspect that military service runs in the family so previous generations may have been lifted into the middle class by the GI Bill
When China’s Long Game Short Circuits | Echowall – many of the examples of long-term policymaking in China collapse under closer scrutiny, whether in the area of environmental protection, infrastructure or population policy. For example, China’s solar power growth has been driven by government subsidies, resulting in market distortion, huge debt and waste. In the construction of infrastructure, such as the high-speed rail system and local airports, there is lack of coordination and long-term planning – not terribly surprising
Inside Huawei’s first 5G phone: Teardown reveals rush to innovate – Nikkei Asian Review – interesting analysis of the design approach. The design is surprisingly messy. This implies a few things. Huawei had to rush as it was behind. The phone isn’t as ‘premium’ as Huawei would like to believe, its the smartphone equivalent of having Irish travellers tarmac your drive. Huawei is leaving money on the table by not optimising their designs.
