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.
I went along to the Automata Eve robot launch. More about the robot launch in more detail once I get around to write the post. Eve is a robotic arm aimed for light industrial usage.
Japanese porn company Soft on Demand wants to use virgin power to create electricity for romantic Tokyo event – Japanese marketers never fail to surprise me with these odd campaigns. The power comes from stationary exercise bikes. I couldn’t do any better than Sora News 24 at explaining how this campaign all comes together, so go and read it all there. Soft on Demand is the Japan’s largest adult entertainment media company and are putting a lot of money into marketing VR content
I hadn’t realised that population ageing and decline is a bigger issue in Bulgaria than it is in western European countries like Germany or the Nordics. In terms of population decline it even outstrips Korea and Japan.
This seems to have been driven by the economic hardship caused in the immediate aftermath of the economic collapse of the Comintern (Communist International) group members and break up of the Soviet Union into Russia and members of the CIS.
Very interesting documentary on the day-to-day impact by showing the lives of villagers that have been hit hard through this decline.
Faster Robots Demoralise Coworkers | Careers | Communications of the ACM – If you get the pace wrong would the effect of robots demoralise coworkers limit productivity? Is the future not robots augmenting coworkers, but replacing coworkers a more productive alternative. A Cornell-led team has found that when robots are beating humans in contests for cash prizes, people consider themselves less competent and expend slightly less effort—and they tend to dislike the robots – to be fair I’d expect to see something similar if the same person kept winning employee of the week. I know that workers on the line at Vauxhall in Ellesmere Port used to sabotage the robots on the line on a regular basis. This might phenomenon of robots demoralise coworkers be part of their motivation (along with laziness and malice)
Marbridge Consulting – China’s February 2019 Domestic Handset Shipments Down 20% YoY – 14.51 mln mobile handsets were shipped in China in February 2019, down 19.9% YoY and 57.4% MoM, according to new figures released by the China Academy of Information and Communications Technology (CAICT), a department of China’s Ministry of Industry and Information Technology (MIIT). The significant month-on-month drop can be explained in part by the week-long Chinese Lunar New Year holiday towards the beginning of February. Of total shipments in February, 13.98 mln were 4G handsets, down 20.2% YoY, 37,000 were 3G handsets, and 0.49 mln were 2G handsets
Aging Millennials Soothe Themselves With Childlike Fashions – WWD – to try and hang on to youth. The attenuation of youthfulness is a cross generational phenomenon. For instance middle aged dads the still buy streetwear rather than Superdry, skate and go to gigs.
SXSW 2019: Virtual Cinema – JWT Intelligence – culture is still trying to adapt AR and VR. Whilst it has the energy of an early SIGGRAPH demo reel, I still think the storytelling aspect of things is struggling to find its legs
Patrick Pruniaux: “There Truly is an E-commerce Potential for Horology” | Luxury Society – Kering haven’t been particularly good at using Ulysse Nardin as a brand in China, but they are rectifying it now. Kering are looking to tap into ‘new’ watch consumers who can’t spend Rolex money on a watch, this position now looks more tenable since Apple has stopped going for the luxury sector with the Apple Watch
How to Create an Authentic Luxury Experience for Millennials | Jing Daily – if a luxury brand wants to entice today’s consumers, whether it’s in China or beyond, it needs to underscore its authenticity and relevancy. Powerful words, to be sure, but what does it mean to be authentic and relevant? For the moment, let’s start with the opposite. During many of my brand strategy sessions, I often hear the expression “they feel staged” when people describe brands that they would never buy. Needless to say, when brand feels staged, it is neither authentic nor relevant. The synonyms unnatural, deceived, cheated, and faked come to mind. In other words, a staged brand is bullshitt*ng their consumers.
Louis Vuitton Has a Michael Jackson Problem | Intelligence | BoF – LVMH invested significantly in Virgil Abloh to elevate its menswear line. However, the potential failure of Abloh’s Michael Jackson-inspired collection—whether due to pulled items or lack of consumer interest—is unlikely to significantly impact Louis Vuitton’s overall revenue, as men’s ready-to-wear is a small part of their business. The real concern for Louis Vuitton is protecting its brand reputation, which remains strong unlike some competitors who have faced recent social media backlash. This is especially crucial now, as consumers are quick to criticize any perceived missteps.
You May Have Forgotten Foursquare, but It Didn’t Forget You | WIRED – interesting how Foursquare went from being useful (I use it as spatial bookmarking, so that I can return to new places that I like) to where 2.0 middleware with a bit of ad tech creepiness thrown in for good measure (paywall)
Swedish technology could make geothermal energy as mainstream as wind and solar | Quartz – interesting because it deals with the lumpy supply issue of wind and solar in the energy mix. Geothermal energy is closer to the steady production of nuclear or coal fired power stations operated in an optimal manner. Although geothermal energy has been well understood for decades, a key problem has been keeping the fissures open that geothermal energy relies on to create steam.
Jibo Is Probably Totally Dead Now – IEEE Spectrum – The servers for Jibo the social robot are apparently shutting down. Multiple owners report that Jibo himself has been delivering the news: “Maybe someday when robots are way more advanced than today, and everyone has them in their homes, you can tell yours that I said hello.” – that’s probably the saddest thing I’ve heard in robotics since I learned about Sony Aibo Mk ! device owners having Shinto funerals for them when they gave up the ghost. It also shows the flaw in cloud connected consumer products
Europe’s AI start-ups often do not use AI, study finds | Financial Times – Two-fifths of Europe’s artificial intelligence start-ups do not use any AI programs in their products, according to a report that highlights the hype around the technology. The research by London-based investment firm MMC Ventures could not find any evidence, based on public information and interviews with executives, of artificial intelligence applications at 40 per cent of 2,830 AI start-ups in Europe (paywall)
Flickr dumps despised Yahoo login system – CNET – gosh when I remember how controversial the move to Yahoo! ID was for flickr users back in March 2007. It was a defining moment in the community and its obvious that grudge has continued to be held by old skool users
Bollinger Motors: a Refreshingly Traditional 4×4 Company • Gear Patrol – While other manufacturers fetishize connectivity, Bollinger Motors plans to sever the digital connection. The B1 and B2 won’t offer autonomous capability. There are no current plans for a digital cloud infrastructure. The trucks will have manual windows and door locks. Driving a B1 or B2 won’t be a pure ascetic throwback. You’ll be able to connect your phone to the stereo. But, the goal is to offer an escape. That reads to me like a new definition of automotive luxury.
Read Pornhub Launches Safe for Work Category that Features Videos without Nudity | Pornhub – interesting that PornHub is branching into SFW (suitable for work) content and that this move seems to be inspired by Starbucks putting a porn filter on its free wifi. Unfortunately Pornhub’s ad vendor Traffic Junky keeps showing NSFW material on the page and you have to wonder about brand safety with Pornhub relying on a creator submitted SFW tag which doesn’t police NSFW content within it. More media related content here.
Puma Poaches Manchester City Kit Deal From Nike | Business of Fashion – big move by Puma in football, especially considering that all the money is boot sales and Puma is currently a distant number four behind Nike and adidas. New Balance is considerably closer for Puma to reach than the top two. Kit sponsorship deals are self liquidating brand marketing.
Musical.ly, now TikTok, to pay fine to settle FTC allegations | Digital – Ad Age – Social video app Musical.ly, now known as TikTok, agreed to pay $5.7 million to settle Federal Trade Commission allegations that it illegally stored data from underage children and refused parents’ requests to delete it.Data collected from children under the age of 13 included names, email addresses and, for a period, user locations, the FTC said. The settlement represents a record penalty under the Children’s Online Privacy Protection Act, a 1998 law designed to put parents in charge of what information is collected about their children on the internet.
Prada tries to put luxury’s derailing train back on course | Trendwatching – It’s not hard to see the link between this innovation and recent events in the luxury fashion industry. When it comes to diversity and inclusion, iconic fashion brands have lurched from one epic fail to another recently. Gucci perpetuated blackface via a sweater. Prada itself perpetuated blackface via its window displays. Burberry sent a noose down the runway. Philipp Plein fat-shamed a journalist. D&G offended many in one of its key markets when its ad showed Chinese models struggling to eat spaghetti with chopsticks – Prada is also listed in the Hong Kong Stock Exchange so this makes sense from a shareholder perspective as well
Supreme by Hasan Minhaj. I hadn’t watched much of Patriot Act mainly because there is more content that grabs my attention on Netflix. This clip is a great dive into hype culture by Hasan Minhaj – often the best humour is that with uncomfortable truths in it.
Amazon playbook on Amazon Vine. Gartner L2 made this useful clip on the effective use of Amazon’s Vine programme.
Key take-outs (my observations in italics):
Amazon don’t allow vendors any editorial controls over reviews and look to keep them honest and authentic
Vine seems to be really good in the process of accelerating product launches for vendors
Use Vine BEFORE Amazon’s sponsored products and sponsored brands advertising function; by the sounds of it pretty similar to the way you’d have previously used PR in a product launch marketing campaign
L2 recommends ensuring the efficacy of the product; but Vine COULD be used as the last gate in the innovation process before you go gangbusters. Lots of negative reviews could still save you on a massive production run and huge advertising spend
Sophie Cope (Electronic Frontier Foundation) on digital privacy and the surveillance state. Great video on the World Affairs channel – interesting how this has become such a big issue amongst ‘wonkish’ audiences. More privacy related content here.
Lynx (Axe for non UK audiences) have latched on to the ASMR meme that has been popular for a couple of years. It feels weird to watch, I am not sure what the strategic insight(s) were for this work beyond the fact that beards are sticking around for a good while yet.
https://youtu.be/x9T7BJ-jf6o
The last thing is the positive experience I had with American Express this week when I lost my card. I spoke to a real person on a decent phone line who quickly canceled my old card sent me out a new one that arrived in 48 hours.
