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.

  • Drop shipping + more stuff

    Is This the End of Drop Shipping from China? | Jing DailyThe profitability and success of the drop shipping model comes from a price disparity between the products manufactured in the Western Hemisphere and those from China, but also from a shipping price disparity. In other words, if the US government increases tariffs on Chinese products, or raises shipping rates for packages arriving from China, the whole model becomes noncompetitive. And this is exactly what has happened. This makes the likes of Shopify look like a Ponzi scheme facilitator. The UK edition of Wired magazine had an interesting article on the weird world of drop shipping: ‘It’s bullshit’: Inside the weird, get-rich-quick world of drop shipping | WIRED UK – In some ways drop shipping feels old to the likes of me. It reminds me a lot of TV shopping and multi-level marketing in terms of persistent agile middle men. This article goes into the get rich quick culture of drop shipping. What struck me was the extraordinarily negative view of the future that these people had. There was a dystopian emptiness at centre of everything that the drop shipping bros did. From this perspective drop shipping bros are different to their peers that would have sold time shares, life insurance, photocopier leases or even crypto currency. It also shows that Chinese manufacturing and business practices haven’t improved over the last decade. The only piece that these two articles miss is the the supply side postal subsidy that the Chinese government gives to domestic exporters. This fuels everything from drop shipping to Chinese Amazon marketplace vendors and Chinese DTC apparel vendors who advertise on Facebook. More on Chinese online marketplaces that fuel drop shipping here.

    Mediatel: Mediatel News: “Mind-boggling”: the industry reacts to ISBA/PwC reportIn a study of the “premium parts of the programmatic market”, including fifteen major advertisers, 300 distinct supply chains and 12 premium publishers, just 51% of advertiser spend on digital inventory was going to the working media. Meanwhile, 15% of marketing spend was disappearing into an “unknown delta”, and was unattributable anywhere in the supply chain. In response to the report’s findings, the market was warned that if it could not deliver standards and transparency, advertisers may take their money elsewhere and the Competition and Markets Authority might even intervene – the content came as little surprise, though it is nice to have numbers put to this. Timing-wise this is a body blow to the media industry. Its also concerning given the disruption-driven flight to digital by marketers – I don’t think you’ll see better multi-channel brand building media plans, but a greater focus on direct response instead. More here Mediatel: Mediatel News: ISBA/PwC: 15% of programmatic supply chain costs ‘unattributable’ 

    Hamilton Bohannon: Disco Disciple & House Precursor | Attack MagazineBohannon was essentially creating dub mixes of soul records for club DJs. Except he created them with a band, not via studio equipment. In pioneering this minimal, dance-floor focused aesthetic, Bohannon pre-dated loop-based house records and the repetition of acid house and loop techno. On his Worldwide.fm tribute to Bohannon, Francois Kevorkian described the drummer as: “One of the most brilliant and original artists of his time who helped define as well as forge the template for the sound of dance music”. Bohannon, along with many other innovators, contributed to the development of what would lead to house and techno a decade later

    How China Has Capitalized on the Coronavirus | The National InterestChinese government’s alleged efforts to hide the facts about the coronavirus. This process is necessary. Equally important, is the imperative to fix a national security vulnerability that the pandemic has revealed: China’s quiet net of influence over the agencies and international bodies that America has relied upon in the post–World War II era. Here, the Center for Disease Control’s (CDC) early response to the coronavirus is an unfortunate object lesson. Bad assumptions about the good faith of the Chinese government can have devastating consequences – this is going to bring all kinds of unintended consequences

    The Other Pandemic: Why US Youth Continue to Use Juul Despite Reported Drawbacks | The National Interest – mirrors past youth perception on cigarettes

    [Letter from Hong Kong] Dream State, by Yi-Ling Liu | Harper’s Magazine – really great article on Hong Kong and some of the percularities and power of Cantonese as a language

    Apple’s repair policies are utterly shameful and should be outlawedDigital waste is a huge problem, and Apple is a major contributor to it. All of these old MacBooks, iPhones, iPads and other products just sit around in the deep recesses of our closets, or worse, at the bottom of landfills. The fact that the FTC is willing to listen to right-to-repair advocates and examine the potential for policy change is promising

    The Quietus | Features | Tome On The Range | Split: What Love Island Tells Us About Culture & Class In Modern Britainresearchers from the London School of Economics, Sam Friedman and Daniel Laurison, published a book called The Class Ceiling, summing up years of research on exactly this relationship between cultural aspects of class and social mobility. They were given unparalleled access to Channel 4 and interviewed a top senior commissioner at the broadcaster to find out how he got to the top of the company. Mark (not his real name) was honest about many of the economic privileges that helped him along the way: a private school education, a place at a top university and the ‘bank of Mum and Dad’ to secure London rent while he navigated the precarious world of the creative arts. He recounts how those without this crucial safety net ended up having to take safer and more stable jobs within the industry, such as more administrative roles but with less career progression. In his own words, without such privileges the risk of going for the top job would have been like ‘sky diving without a parachute’

    Penguin Classics Cover Generator – create your own classic book cover

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    If this blog was a Penguin paperback….

    Aspirational Femininity in Contemporary China – How Brands Can Better Engage – trying to deal with alpha female aspirations

    What happens when a major media empire shuts overnight? | Digital | Campaign Asia“Primetime segments, which aired key programmes aligned with the advertising of prominent brands, are now no longer available. Brands will feel the pinch with the redistribution of advertising spend, loss of audience reach and reallocation of audiences against different channels.”

    HONG KONG: What NXT did next… | What Hi-Fi?3M uses its bending wave touch screens in the development of advertising and kiosk touch panels, while with its partner Qinetiq NXT’s producing solutions for use in transport applications such as high-end ex ecutive jets and even some locations on the London Underground.Work is also going on with printed electronics and other unusual applications: luxury birthday cards from Hallmark now use NXT technology to play high-quality greetings music when they’re opened! – NXT originally came out of work done on Saab fighter aircraft to reduce cockpit noise

    Nintendo: Switch it up | Financial Times – interesting analysis on Animal Crossing and the Nintendo Switch. If the Wii taught us anything , it is that Nintendo marches to its own beat. Its games and audience are different to PlayStation and Xbox

    Tencent surveils foreign accounts to aid domestic censorship | Financial Timessurveillance of private messages is also applied to accounts registered to foreign mobile numbers, in order to build up its repository of sensitive files and thus better censor China-registered accounts. The research shows how Tencent not only conducts censorship, but also informs and develops its own censorship strategies. In addition, the company is likely to support the government’s political research. “If the Chinese government has any need to regulate public opinion, they will certainly use the database of politically sensitive content by WeChat” to learn from, said a Beijing-based professional who has worked closely with the government. The professional added that WeChat’s database of sensitive content was “probably the most comprehensive and updated one in China”.

    Wink to customers: Pay us or your stuff breaks next week ↦ – a lot of the functionality shouldn’t need the cloud in the first place. Instead it opens customers to this kind of blackmail

    360 Deep Dive: Today’s Broadcast TV | Park AssociatesTV antenna usage in US broadband households jumped to 25% in 2019 and is expected to grow as COVID-19 has kept consumers at home. Content styles and genres grow and change, while business models and transmission technologies evolve and cause disruption, but nothing changes the end consumers’ goal: to find video that they want to watch. Secondarily, consumers want to find that content in a manner that is affordable and easy

    Chinese EV startup accuses Tesla of ‘bullying’ over IP lawsuit – Nikkei Asian Review – Chinese engineer who moved to Xpeng allegedly walked out with code

    Future of Our Global Economy: The Beginning of De-Globalization – DER SPIEGELIndustrial machine producers, of the kind that make a huge contribution to the German economy, have begun shifting priorities from making the supply chain as cheap as possible to making it as secure as possible – this sounds more like an acceleration in change rather than radical change due to COVID’19

    Britain’s wartime generation are almost as pro-EU as millennials | LSE BREXITthe prevailing political environment shapes the long-term opinions of those in their formative years. Given the current ubiquity of the Brexit debate, today’s arguments and events surrounding integration will almost certainly have a significant impact on the most recent generation, namely those born after the millennium. In exactly what way these debates will shape public opinion, however, remains to be seen. – Hmm, when I think back to the nasty Tory narrative of the Thatcher years that put Blair and Brown into power, I wonder if this won’t make them even more right wing….

    WPP wins Unilever media duties in China | Media | Campaign Asia – Unilever and WPP also have a long history. More recent connections include a WPP ‘Team Unilever’ in-house partnership launched in Singapore in 2018 and led by Mindshare’s Sudipto Roy, and the appointment of former Unilever CMO Keith Weed to the WPP board in 2019.

    Common Enemy | Harper’s Magazine – interesting article about Taiwanese and Hong Kong resistance to the Chinese Communist Party

    The Promise—and Risk—of a Career in TikTok – VICE – but what’s the commercial value of their content?

    The Perfect: T-shirt – according to Kim Jones, Samuel Ross and David Fischer

    Judge Timothy Kelly Stunned by Facebook’s Violation of Law | Law & CrimeThe allegations in the Complaint reflect many ways in which Facebook purportedly acted improperly. Some of these allegations represent discrete and poorly considered decisions, such as allegedly encouraging users to provide phone numbers to better secure their accounts, but then using those same numbers for advertising without telling users beforehand. Others appear to reflect Facebook’s willingness to deceive its users outright, such as allegedly telling the public that it would not share their personal information with third parties when it was continuing to do so. And still others represent systemic oversight failures, such as allegedly allowing third parties to access users’ personal information without the users’ knowledge and without controlling how those third parties would use the information. Most of these allegations represent violations of the 2012 Order; several are new violations of law. But all of them suggest that the privacy-related decision making of Facebook’s executives was subject to grossly insufficient transparency and accountability

    Even After A Large Increase Due To Half-Life: Alyx, Less Than 2% Of Steam Users Own VR Headsets – I was expecting a much higher adoption rate amongst Valve users due to its serious gaming focus and exposure to Chinese gamers

  • Japanese environmental sounds + more

    The meticulous design of Japanese environmental sounds – ‘kankyō ongaku’ – a strand of Japanese minimalism that emerged in the 1980s to soundtrack the architectural wonders and commercial advancements of the country’s economic boom years. In the west we put up with muzak; but the Japanese environmental sounds are highly engineered minimalistic experiences

    Visualizing the Most Loved Brands, by Generation – you do have to wonder about of the quality of the data

    The Internet Used to Make Us Smarter. Now, Not So Much. | Douglas Rushkoffwe too easily lose sight of what it is that’s truly revolutionary. By focusing on the shiny new toys and ignoring the human empowerment potentiated by these new media — the political and social capabilities they are retrieving — we end up surrendering them to the powers that be – I think this is as much about how is online as the online tools

    macos – How to find cause of high kernel_task cpu usage? – Ask Different – this is quite surreal TL;DR charge your laptop on the right hand side – what on earth is going on here.

    #SafeHandFish – I love this idea of repurposing packaging, but I wonder where they got the blue lids from?

    Amazon makes books, video, music and more available for freeAmazon sees if it can get UK consumers to adopt its services during the COVID lock-in – this is all about habit building

    Imagination Commits to Keeping U.K. HQ – For Now | EE Timesunderlying this is very likely to be a worry for Imagination that a move to China could end up with its intellectual property owned by China. And that could worry its major customers, including Apple  — a customer that the now former CEO Ron Black worked hard to win back

    Luckin fraud admission leaves more questions than answers · TechNodeusing part of his handsomely-valued Luckin shares as collateral to take out loans, Lu Zhengyao has made away with in excess of $500 million. That amount would have been much, much smaller if Luckin’s numbers were accurately reported. All this makes it hard to believe that COO Liu Jian would commit fraud without the actual or constructive knowledge Chairman Lu Zhengyao, CEO Qian Zhiya and CFO Reinout Hendrik Schakel. My present hypothesis is that Liu, as a long time errand boy for Chairman Lu Zhengyao, has taken the fall to buy time for Luckin’s management to work out their next move – interesting read. It does make you wonder about other Chinese firms

    Booking Holdings to announce lay-offs after securing $4bn loan | Financial Times(Glenn) Fogel told the 530 employees on the call, which was first reported by the Dutch newspaper NRC, that bookings on the travel company’s platforms had dropped 85 per cent year-on-year in the preceding week and that the loss in revenue because of reduced rates at hotels was even greater. – I’d imagine that’s going to blitz their Google advertising spend reputedly 10 billion dollars a year pre-COVID

    Why China is losing the coronavirus narrative | Financial Times – just wow, it won’t affect public opinion that much, but will affect government and wonks : When Roger Roth received an email from the Chinese government asking him to sponsor a bill in the Wisconsin state legislature praising China’s response to coronavirus, he thought it must be a hoax. The sender had even appended a pre-written resolution full of Communist party talking points and dubious claims for the Wisconsin senate president to put to a vote. “I’ve never heard of a foreign government approaching a state legislature and asking them to pass a piece of legislation,” Sen Roth told me last week. “I thought this couldn’t be real.” Then he discovered it was indeed sent by China’s consul-general in Chicago. “I was astonished . . .[and] wrote a letter back: ‘dear consul general, NUTS’.”

    ‘A level playing field’: digital giants will have to pay for news | Sydney Morning Herald – interesting move ‘Josh Frydenberg will impose a mandatory code on the digital giants after losing faith in their work on a negotiated settlement with Australian media companies to reimburse them for news and other content.’

  • Tablet demand + more things

    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.

    Experts react to Google’s Brexit-driven decision to move UK data to the US – Business Insider – also probably Google trying to avoid double-jeopardy between EU and UK law presented by UK consumers being out of the EU

    Victoria's Secret
    Victoria’s Secret by Eternity Portfolio

    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.

    WSJ City | Grocers Wrest Control of Shelf Space From Struggling Food Giants – is this really news? Interesting that Clorox and General Mills are called out though

    Hackers can trick a Tesla into accelerating by 50 miles per hour – MIT Technology Review – MobilEye complains that it would also fool the human eye, but most humans would at least question it. Artificial smarts isn’t intelligence

    Banned recording reveals China ambassador threatened Faroese leader at secret meeting | Berlingske – the problem might not be Huawei but the Chinese government with Huawei just a conduit – but yeah

  • DingDing & other things

    DingDing – a Chinese equivalent of Slack, Microsoft Teams, Zoom or Skype was getting 1-star ratings in Apple and local app stores. Many school children are in lockdown due to the corona virus Covid 2019 and having to use the app as a virtual class room. DingDing was the most downloaded app in the Apple app store on February 5

    They weren’t happy and bashed the app across app stores. Some of it was acting out and some was trying to get the app removed from the stores all together.

    With its ratings dropping rapidly across app stores. Marketers put out this meme literate video. In it the DingDing mascot cries and begs children not to penalise it. It seems to have worked in terms of stabilising its rating.

    Click to expand the video and wait through the short advert (sorry about that). There is an international version of DingDing called DingTalk that is often used by cross-border teams. The iOS and macOS versions are nicely designed. And unlike WeChat it doesn’t send your messages in the clear. But as with any software designed for the great firewall, use with care.

    Back when I worked in-house at Yahoo!, Google seemed to get media coverage with ease. The Google Maps campaign around the Oscars reminded me of this. Google Maps collected famous movie locations and showcased them on Google Maps. Trendwatching has a great case study on the campaign.

    Chinese brand Yili-owned baby milk formula brand JinLingGuan (JLG) decided to make its own smart speaker for parents. Which I found a bit odd given the amount of voice products available in China. But it seems more like skill-building and product giveaway in conjunction with Xiaomi. It built a parenting skill that featured 1,200 questions.

    Key parental insights according to Mindshare:

    • 62.5% of young parents in China worry they are not good enough for their children
    • 70+% of mothers experience postpartum anxiety

    Results according to Mindshare

    Programme drove over 55 million Q&A sessions, 210% more than expected

    Over USD$2.2m (RMB¥15m) in sales and all 10,000 smart speaker gift sets sold out

    This is just tremendous – Legendary Disco Producer Cerrone Walks Through the Making of his 1977 Hit ‘SuperNature’ | WhoSampled 

    Cerrone 3 Supernature record cover
    Record sleeve cover for Cerrone 3 Supernature

    Stories of Apple – John Couch on Lisa’s software revolution and the perils of market research – more posts on Apple here.

  • Regulating AI + more things

    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.

    120627-O-ZZ999-004
    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: Hong Kong restaurants install physical barriers between diners to allay contagion fears – interesting design hack by restauranteurs – I wonder what it will do to restaurant noise levels?

    The ‘Alpha Female’ Look is Big in China. Brands Take Note. | BoF – good for Dr Martens (paywall)

    Bulgari Is Pulling Out of Baselworld 2020 Because of the Coronavirus | Robb Report – I am surprised that Baselworld hasn’t been re-scheduled already

    Kering Halts Spending in China on Coronavirus Fears | BoF – I’d have still done brand advertising to do contra-cyclical brand building but otherwise their approach makes sense

    The Karakax list: how China targets Uighurs in Xinjiang | Financial Times – surprisingly manual process rather than machine learning driven. China has set up a research lap for technology in law – think pre-crime and done some of the first thinking about regulating AI

    You Can Pay People to Style Your Houseplants – The New York Times – corporate florist now do homes as well (paywall)

    “With the Beatles,” by Haruki Murakami | The New Yorker – great read

    It’s time for global businesses to admit it: China isn’t a good investment – The Washington Post – right sentiment, but the wrong reasons. China is important but too prominent in the global supply chain and a source of weakness. Multiple sourcing makes more sense

    With Harsh Words, China’s Military Denies It Hacked Equifax | New York Times – yeah right. I think its a totally gangster move, really smart work which is why they would do it (paywall)

    Chinese retail is getting a nationalistic boost – Inkstone“The millennials are more faithful to Chinese brands which are capable of delivering equally good quality products like those from foreign powerhouses, if not better,” said Xue Ying, senior marketing manager of Dr Yu. Fashion brands no longer see Hong Kong as bridge to 1.4 billion consumers – Inkstone – an increasingly nationalistic youth

    Coronavirus response benefits Watsons: YouGov | Campaign AsiaHong 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)