Category: retailing | 零售 | 소매업 | 小売業

Looking back to when I started this blog, it would have been reasonable to expect an inevitable march of retailing from offline to online. Amazon was on a tear and search advertising volumes were increasing year on year. By the time I was at Yahoo! search advertising (focused on online retailing) counted for about half of all revenue for the company.

At that time Yahoo! had a Spotify-like subscription streaming music service that was viewed as a threat to Apple’s iTunes download only offering. When I worked there Yahoo Music was the number one online music site in terms of audience reach and total time spent by consumers on the site. Also display advertising was much bigger for brands than it is today and Yahoo! was guaranteed a good share of the online marketing spend from any movie launch at the time.

The reality of online retailing, was slower than our expectations. While COVID drove an increase in online retailing there has also been corresponding innovations in retailing as well.

Amongst the pioneers in this change have been luxury brands like Burberry and Nike, who brought digital into their stores to provide a superior customer experience.

Adidas brought manufacturing into its stores with its speedfactory experiment, allowing for fast time to market and customisation.

Supreme changed the cadence of retailing with the Thursday morning ‘drop’  which saw queues outside stores. Every Thursday became a launch day as far as their customers where concerned. The queue has moved from Apple’s annual cadence, to every week.

  • T Factory + more stuff

    Korea’s Largest Telecom has Partnered with Apple, Microsoft & Samsung in new kind of High-End Retail store called T Factory – Patently Apple – interesting tech department story T Factory by SK Telecom. T Factory seems to be much more ambitious than Hong Kong’s 1010 mobile carrier shops

    Ex-Morgan Stanley bankers make a splash in Hong Kong as new boutique firm adds Ant Group, Xpeng to list of clients | South China Morning Postlaunched last year by two former senior Morgan Stanley bankers, Crawford Jamieson and Daniel Wetstein, and has since added top-notch companies including Alibaba Group Holding, Ant Group, and Xpeng among its clients. The firm offers corporate finance advice to companies and financial sponsors in the technology, health care and financial services sectors, backed by experience in completing US$500 billion worth of deals between them since late 1990s.

    Who will win the battle to replace Huawei in Europe? — Quartz
    https://qz.c“Open-RAN is something in the future,” says Strand. “It is not an alternative to the equipment Nokia, Ericsson, Huawei, and ZTE are delivering today.”

    Comparison Shopping in the Age of Information Overload | INSEAD Knowledge – interesting research that is important for online shopping

    An XR partnership between Orange and Deutsche Telekom – Hello Future Orange – a bit happy clappy but shows some interesting ambition around the web of no web

    Google is bringing its own VPN to desktops and phones with $9.99 Google One subscription – The Verge – hmmm poacher turned gamekeeper?

    PlayStation CEO says VR won’t be a ‘meaningful’ part of gaming for years – The VergeSony PlayStation CEO Jim Ryan says virtual reality won’t be a meaningful part of interactive entertainment in the near future. Ryan indicated to The Washington Post that VR still has a long way to go, although he emphasized that Sony isn’t giving up on the medium. The statement suggests that an update to Sony’s PlayStation VR headset is years away.  “I think we’re more than a few minutes from the future of VR,” Ryan told the Post. “PlayStation believes in VR. Sony believes in VR, and we definitely believe at some point in the future, VR will represent a meaningful component of interactive entertainment. Will it be this year? No. Will it be next year? No. But will it come at some stage? We believe that.” – Interesting take. On one hand the hardware in Sony’s VR sets for the PlayStation doesn’t need to change due to displays, on the other hand the pause in take up seems to be software related. Does gaming have the kind of storytelling issues that VR cinema has?

    Facebook Is Up To 10 Million Active Advertisers, But Zuck Says He Fears For The Future Of Personalized Advertising | AdExchangerheadwinds coming in the form of an evolving regulatory landscape, continued uncertainty to do with transatlantic data transfers and coming platform changes, particularly on Apple’s iOS.

  • Vietnam boomtowns + more things

    Apple’s Shifting Supply Chain Creates Boomtowns in Rural Vietnam – Bloomberg – Vietnam is becoming the new China. While China has been impacted by problems of its own making, resulting in diversification of supply chains and trade disputes. This Vietnam build-out feels very much like build out in China during the late 1990s and the early 2000s after China joined the World Trade Organisation. Vietnam is now likely to experience double-digit growth. Hopefully Vietnam will climb up the value chain in a similar way to China. Vietnam is already a great place to develop software and applications. More Vietnam related posts here.

    Apple develops alternative to Google search | Financial Times“Any reasonable search engine has to have 20bn-50bn pages in its active index,” Mr Ramaswamy said. When a user runs a query, the retrieval system must sift through vast troves of data then rank them in milliseconds. Some observers still dismiss the idea of Apple creating a complete search rival to Google. Dan Wang, associate professor of business at Columbia Business School, said it would be “extremely difficult” for Apple ever to catch up. “Google’s advantage comes from scale,” he said, as the endless user feedback helps to tune results and identify areas of improvement. “Google gets hundreds of millions of queries every minute from users all over the world — that’s an enormous advantage when it comes to data.” – Apple needs search for its app store, mapping services, media services and even on device. It doesn’t necessarily mean that Apple will do a ‘Google’

    Army of avatar robots readies to invade Japanese job market – Nikkei Asia – stocking shelves in a FamilyMart

    Apple develops alternative to Google search | Financial Times – explains Apple’s massive amount of overcapacity in their datacentre space for the past decade as they built around the world

    Chinese retailer Miniso beats Uniqlo and Muji at their game – Nikkei Asia – interesting profile of Miniso. What becomes apparent is how Luckin Coffee has poisoned the well with investors for Chinese retailing businesses

    Surveillance Startup Used Own Cameras to Harass Coworkers | Vice News – not terribly surprised that this was in their sales team. It fits right in with the sales cultures I have known

    25 Years In Speech Technology. …and I still don’t talk to my computer. | by Matthew Karas | Oct, 2020 | Medium – great essay on voice technology on computers (including smartphones)

    German spy chief Gerhard Schindler: China is poised to dominate the world | World | The TimesGerhard Schindler, who led the Federal Intelligence Service (BND) from 2011 to 2016, said Germany needed to curb its “strategic dependence” on Beijing and ban Huawei from its 5G mobile phone network. He also warned that Angela Merkel’s liberal approach to the 2015 migrant crisis had left Germany with a “large reservoir” of young Muslim men susceptible to violence and jihadist ideology, and that the true scale of the danger was only now becoming clear.

    UK risks road rage with China in Africa – POLITICOUnited States Assistant Secretary of State for African Affairs Tibor Nagy told a Congressional hearing in 2019 that Washington was “weaponizing” its African embassies “to confront China on a whole range of issues, most prominently a commercial one.” Westcott, from the Royal Africa Society, pointed out that Britain was so far aiming to maintain its own influence in Africa rather than reduce Chinese influence — but that it could take a more aggressive approach in future, for example attempting to outbid China for projects.

    How The Epoch Times Created a Giant Influence Machine – The New York TimesThe Epoch Times was a small, low-budget newspaper with an anti-China slant that was handed out free on New York street corners. But in 2016 and 2017, the paper made two changes that transformed it into one of the country’s most powerful digital publishers. The changes also paved the way for the publication, which is affiliated with the secretive and relatively obscure Chinese spiritual movement Falun Gong, to become a leading purveyor of right-wing misinformation. First, it embraced President Trump, treating him as an ally in Falun Gong’s scorched-earth fight against China’s ruling Communist Party, which banned the group two decades ago – the enemy of my enemy is my friend. I see this as a failure of liberal politicians engaging with a plurality of opinions about China.

    The Belt and Road Strategy Has Backfired on Xi | Palladium MagazineThe Belt and Road is less a geoeconomic power play than a marketing strategy. Few of the myriad projects and investment schemes labeled ‘Belt and Road’ exist because of the initiative as such. Grand strategists in Beijing did not cause the tremendous outbound flows of money, men, and material that comprise Belt and Road, and they cannot direct it either. What statesmen like Xi Jinping do have power to influence is how these flows are understood and perceived by the world

    How Did China Beat Its Covid Crisis? | by Ian Johnson | The New York Review of Books – ambiguous lessons on handling COVID-19

    WeChat ban a catch-22 for Chinese Australians – The China Storysome members of the Chinese Australian community have created parallel chat groups on WhatsApp, Letstalk, Line or Telegram in case of a local WeChat ban. But they continue to be drawn back to WeChat as their main social media platform. Why do members of the Chinese diaspora choose to self-censor when they have many other options available? The answer may lie in platform affordances available in WeChat as well as techno-material features of the app that produce ‘habits’, engender ‘necessity’ and provide users with a sense of ‘vitality’.

    Inside Out: China’s Forgotten Domestic Politics – The China Story – China digging itself into a soft power hole

    Adobe’s new AI experiment syncs your dance moves perfectly to the beat | The Next Web – I was thinking about the effect that quantisation had on music software in the early 1990s which allowed for perfect beat synching (in theory, though MIDI and USB could throw that off slightly

  • North Face + more things

    From Supreme to Gucci: How North Face uses big-name collaborations to drive ‘brand heat’ – GlossyTim Hamilton, North Face’s head of global creative, said it typically does two collaborations per year, at most. In addition to its upcoming collab with Gucci, North Face has an ongoing collab with Supreme that started in 2015. And it released collabs with athletic brand Brain Dead and MM6, the sportswear line of Maison Margiela, in August.  Hamilton said the brand’s collaborations typically require a lead time of 1-2 years and are almost always manufactured and produced by North Face. The MM6 collab, for example, began with discussions between Hamilton and the Margiela design team in 2019. – This lead-up time probably explains the balance in their collabs between hype and steadier brands. Hence no Virgil Abioh or Yeezy deal with North Face. Abioh has flirted with Canadian technical brand Arcteryx; which is owned by Chinese sports and outdoor clothing conglomerate Anta – who have a lot of cash. It is interesting that nothing has come from Abioh’s visual love letter so far.

    Op-Ed | New Balance Collabs Are Second to None This YearNew Balance places an emphasis on “aligning with brands that are authentic in their space and have substance behind their message.” New Balance’s roster of collaborators represent a wide range of aesthetics, communities, and subcultures, meaning the brand can speak to a variety of consumers based on what product has been matched with which collaborator. In a sense, putting together a New Balance sneaker collaboration is like a game of exquisite corpse. “We’re able to keep product executions and stories fresh while creating different followings for each type of partnership,” – you could argue that adidas and Nike’s deals with Yeezy and Off-White relegate adidas and Nike to little more than original equipment manufacturers (OEMs). But New Balance also doesn’t have the deep pockets to go up against adidas and Nike head-on. That lack of deep pockets also affects North Face as well. I am surprised that the North Face and New Balance haven’t collaborated, though part of the issue maybe New Balance’s Danner Boots business. This competes somewhat with North Face’s boots business, but they have a very different aesthetic appealing to a different audience. North Face is owned by VF Corporation with sister brands Dickies, Timberland and JanSport. This means that brand collabs for North Face are probably complex politically.

    A millennials love affair: China’s second-hand luxury goods market booms | Reuters – yes Chinese like new things like new apartments. Yes but: Chinese luxury consumers have become more sophisticated. Chinese consumers have travelled and seen the pre-owned market like Milan Station and BRAND OFF in Hong Kong and Japan respectively. In absolute terms middle class wages are lower in China still than the US; yet this isn’t reflected in luxury product pricing

    Alibaba Takes Over China’s Top Hypermart Chain for $3.6 Billion – Bloomberg – interesting that Alibaba is working on an offline retail strategy

    Robert Lighthizer Blew Up 60 Years of Trade Policy. Nobody Knows What Happens Next. — ProPublica – I am not normally interested in publishing about politics, but this article on US trade policy is an interesting starting point to think about the current debacle

    Revisiting Lyn Collins’ “Think About It” – Micro-Chop – great essay. Its also good to see how the edits of Ultimate Breaks and Beats played a role in popularising the ‘think’ break

    Hong Kong walks: discovering traditional, trendy Tai Hang | Financial Times – it makes me ‘home sick’ as Hong Kong island was my home for a while

    Baaaa for business: Princess Diana’s iconic sheep sweater is back | Financial Times – its interesting that luxury brands are now raiding not just archives but childhood memories for cues. Also the convoluted customer journey outlined in the article for the original purchase via a bridesmaid’s mother

    Debate over vegan ‘sausages’ and ‘burgers’ heats up ahead of EU vote | Financial Times – unsurprising given the size of the beef and pork industries in the European Union

    WPP back on hunt for deals, says chief | Financial TimesRead’s challenge is to win back investors who think agency holding groups are struggling with multiple structural tests: cost-cutting and clients taking business in-house, competition from consultancies such as Accenture, and waning clout as middlemen in digital ad markets dominated by Google and Facebook. WPP’s share price is 65 per cent lower than its 2017 peak, and has fallen more than a third since the pandemic battered the economy. The three-year decline is a more severe than at rivals such as Omnicom and Publicis. Meanwhile, investors have flocked to the simpler growth story of adtech providers such as The Trade Desk, which this year has soared to almost three times WPP’s market value on a tiny fraction of its revenues. The £2bn market capitalisation of Sir Martin’s S4 Capital, a digital-only advertising group, is almost a quarter of WPP’s value even though it generated less than three per cent of its £12.4bn sales in the year to June 30.  – a number of things from this interview. The Trade Desk has a lot of heat around it, WPP attempted to do this with Xaxis but has got little credit. Read tried to spin that Accenture and WPP have sweet spots at different points in the economic cycle. Hence the comment about Accenture being good at cutting marketing costs.

    Mr Read’s pitch is that WPP has combined its traditional creative strength with the tech expertise to build ecommerce platforms for clients such as Sainsbury’s, and become the single biggest integrator of Adobe’s software. “Our goal is to be to revenue growth what Accenture is to cost reduction,”

    Chinese-Americans campaign for Trump on WeChat | Financial Timesit is becoming increasingly difficult to organise on WeChat, not only because of the looming US ban but also because of Chinese censorship. Simple WeChat filters for sensitive terms such as “democracy” can detect articles about US politics. Sometimes when Mr Ming sends articles to his groups, those with Chinese-registered phone numbers on their WeChat accounts cannot receive the links, no matter where they are in the world. Ms Wen, who used WeChat in 2016 to organise a door-knocking campaign for Mr Trump, was glad to shift away from the platform this year. “I know it is completely surveilled. Nowadays I mostly use Telegram,” she said, referring to the encrypted messaging app. – interesting move to Telegram, mirrors what I saw in my Hong Kong friend network after the Hong Kong National Security law was passed

    Google’s new ‘hum to search’ feature can figure out the song that’s stuck in your head – The Verge – now this is clever

    The future of fashion week? Look to Shanghai | Vogue BusinessShanghai Fashion Week, which pioneered digital pivots like live streaming, returns today as a largely physical event, featuring around 90 brands across a number of venues, including its main stage in fashionable shopping district Xintiandi and emerging designer platform Labelhood

    How to steer clear of discounts this holiday season | Vogue Business“Markdowns have almost single-handedly ruined our industry,” says Hewitt. “They train the consumer not to buy in-season because they can come back in three months and get a discount. It’s a vicious cycle.” – during the 2008 recession Rolex reputedly bought back watches in its retail and wholesale channels. And then recycled them

    Kibbles & Bytes #1122: Apple Releases Four iPhone 12 Models and the HomePod mini – Don Mayer nails the assessment of 5G in the latest edition of his newsletter.

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

    Sony Launches SR Display: You Can See 3D Pictures Without Wearing 3D Glasses – Gizchina.com – really interesting technology

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

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

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

    British Airways Avoids Huge £180 Million Data Breach Fine for Hack That Compromised the Personal Details of Over 400,000 Customers – good for BA given airlines are haemorrhaging cash at the momen. I am worry about the message that this sends to large corporates and customer data

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

    Facial recognition data leaks are rampant in China as Covid-19 pushes wider use of the technology | South China Morning Post – interesting that this is being collected by non-state actors such as property management companies and schools as well as the state bodies

    iPhone 12 launching without earbuds or wall chargers is compared to eating without chopsticks in China | South China Morning Post – I was expecting this as Chinese consumers are value orientated, brands focus on ‘client delight’ and there is a culture of free gifts with products. So taking items out of the box and the green explanation won’t wash

    Beijing 1986: portraits of a forgotten China | Financial Times – amazing photos from 1986.

    Shenzhen/Huawei: the other Bay Area | Financial TimesThe impression of military manoeuvres by alternative means was reinforced by Tencent, another Shenzhen resident. It was among big Chinese social and video platforms including iQiyi and Weibo, that simultaneously cancelled the livecast of Apple’s iPhone 12 launch – a small example of the nexus between the Chinese government, corporate decision-making influenced by the government and an undercurrent of Han nationalism

  • CPO

    I came across the idea of CPO in GQ magazine. I know few people that have bought anything other than the G-Shocks in their collection for retail.

    There’s a few reasons for that:

    • The watches that people like are often vintage models, it’s reverse of the hot streetwear and luxury ‘drop’ scene
    • With the exception of sought after models from the likes of Rolex; most watches suffer from a similar depreciation curve to buying a new car
    • If you’re buying a watch to wear, so I care less about the box, immaculate cardboard outer box and papers
    • A quality watch is a classic example of heirloom design. Whilst they will need to be serviced every three to five years; they can also last beyond the lifetime of the owner to be handed down in families.

    Watch resellers

    A number of watch dealers that were known by word-of-mouth have gone to the wall. For instance, Austin Kaye, which had been a regular fixture on The Strand longer than I have lived in London closed at the end of 2019.

    Online watch resellers have taken off. Crown & Caliber and WatchBox in the US; Watchmaster in Germany and Watchfinder & Co. from the UK – are some of the biggest players. Scale, brand trust and a panel of expert watchmakers have formalised the purchase process with validation that you’re not buying a fake or a ‘frankenwatch’.

    CPO

    This verification is usually called certified pre-owned or CPO in the trade. At first you used to see this in the Japanese luxury resale market provided by the likes of BRAND OFF.

    BRAND OFF is trusted by luxury shoppers across East Asia.

    It then extended to this new breed of online resellers. Luxury watch brands have bought some of the watch resellers. For instance, Richemont bought Watchfinder & Co. Other watchmakers, now have a formal process to CPO their watches.

    Previously, you would have to submit a watch in for a service to get proof that the watch was legitimate. Some brands are even reselling CPO watches including H Moser & Cie. Pre-owned items offer the luxury industry an opportunity to be more sustainable. Greater involvement in the pre-owned market also allows watch brands to get more value from their products over time.

  • Holiday season e-tailing + more things

    Holiday season e-tailing links –

    Exclusive: Huawei in talks to sell parts of its Honor smartphone business – sources | Reuters – interesting move that move Honor out of the US sanctions. Less convinced that Huawei can focus on high-end phones as there was a supply chain and design synergy with Honor. More on Huawei here.

    Amazon launches an AR app that works with new QR codes on its boxes | TechCrunch 

    Why the Serverless Revolution Has Stalled | InfoqServerless computing refers to an architecture in which applications (or parts of applications) run on-demand within execution environments that are typically hosted remotely. That said, it’s also possible to host serverless systems in-house.

    China’s Games Streaming Giants Huya and DouYu to Merge – Variety – Twitch analogues

    EFFECTOR® -ROCK ON THE EYEWEAR- – amazing Japanese eyewear. More style related content here.

    Samsung pulls BTS-branded products from online Chinese platforms | Financial Times – this just makes Chinese netizens look ridiculous. It shows a fragile nature in Chinese nationalism. The kind of fragility that could drive China to conflict as the party tries to stay ahead of nationalist sentiment

    The ‘Fake Rich’ of Shanghai: Peeking Inside a Wannabe Socialite WeChat Group | What’s on Weibo – this shows the lengths people will go to be ‘living their best lives’. There have been examples of western and Russian netizens doing similar things for Instagram

    Caterpillar bets on self-driving machines impervious to pandemics | ReutersFred Rio, worldwide product manager at Caterpillar’s construction digital & technology division, told Reuters that a remote-control technology, which allows users to operate machines from several miles away, would be available for construction sites in January. – They’re not self driving as the headline says, but controlled remotely: think drones not robots. John Deere had done work on pre-plotted courses guided by GPS for ploughing and spraying in large fields. However in agriculture, this is also tied into a bigger issue around the ‘right to repair’ making automation to date non-viable for many farmers

    Taiwan academics told to identify as Chinese in journal | News | The TimesSpringer Nature claimed that under its editorial policy, authors alone could choose their affiliations, but said that it was “unable to enforce” the same standard on journals it did not own. It considered Eye and Vision, owned by the Wenzhou Medical University in China, as a “co-publisher” that operated under separate editorial guidelines. “The stipulations of this and other Chinese-owned journals with respect to Taiwanese affiliations are beyond our control,” it said. Its position has prompted outrage from leading academics in Britain, who have demanded that Springer Nature stop partnering with journals that operate under rules set by authoritarian regimes

    #MyLevisMyVibe Hashtag Videos on TikTokEarlier this year, Levi’s tested the TikTok ‘Shop Now’ button, which allowed them to provide their fans with a more integrated shopping experience within the app. We are truly moving towards the type of social commerce that has already been going on in China for several years. Now Levis has come back for another big TikTok campaign. This #MyLevisMyVibe is a simple, fun way for people to play around dressing up with Levi’s apparel. What better way for retail brands to connect with their fans than by highlighting them trying on actual clothes? It reminds me a bit of the Asos #AySauceChallenge we covered a few weeks ago. We’re starting to see so many brands now use TikTok that the total set of case studies to draw from is getting larger. I also noted that the language used by Levi’s in the hashtag challenge says “Show us your authentic self,” emphasising the trend of authenticity we are seeing across all modern advertising. I must say that by seeing random people creating their own videos to voluntarily participate in a challenge, it really does feel authentic. – the take from Good TikTok creative

    Orders from the Top: The EU’s Timetable for Dismantling End-to-End Encryption | Electronic Frontier Foundation – interesting that this appeared, alongside Five Eyes governments, India, and Japan make new call for encryption backdoors | ZDNet