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.
This section on AI search is largely down to Rowan Kisby’s observations over at LinkedIn. I worked with Rowan when I was her client at Unilever, super-smart, can’t recommend her enough. Now on to AI search: Google has looked to augment its web search in a more obvious way with generative AI providing ‘AI search’ features.
The AI search features have adversely affected publishers of non-time dependant evergreen content according to Authoritas. This has sparked concern amongst media publishers, but early feedback on IAC and Ziff-Davis shareholder calls indicated little change in traffic numbers. Google claims that AI search feature ‘AI previews’ actually delivers more, rather than less click throughs.
Dr Mike Lynch OBE | Obituary – Sound on Sound magazine cover’s Lynch’s music hardware career which happened before he started Autonomy. The bit that this story misses is how Lynch’s developments helped move forward digital music and affecting electronica during a particularly creative point in culture including house and the rave scene that spun out of it.
I can’t recommend Phoebe Yu‘s content enough, this video on colour, culture and user experience design is a great example of her work.
The Geopolitics of Wine | Peter Zeihan – thanks to increasing costs of capital, aging worker demographics and climate change New Zealand and Australia will do better than Latin American wines and most European offerings except France
Is marketing entering its ‘era of less’? | WARC | The Feed – 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.
How to connect offline to China’s Gen Z and Alpha? | Jing Daily – Young Chinese consumers are finding new consumer interests away from blind boxes and claw machines: ‘Guzi’ (谷子) stores. ‘Guzi’, derived from the phonetic English ‘Goods’, describes merchandise featuring popular ACG (animation, comics, and games) characters, including badges, standees, and posters. – China develops it’s take on otaku culture
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.
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.
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.
Brands Love Influencers (Until Politics Get Involved) – The New York Times – With 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.
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.
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.
Luxury beliefs is a term that I came across from the writings of Rob Henderson. Henderson has a similar kind of story to JD Vance. Addiction in the family and escaping his home environment by enlisting in the US Air Force.
After his service Henderson used funding via the GI Bill to go to Yale. He then got a scholarship to go to Cambridge to do a doctorate. Like Vance he had written a memoir: Troubled: A Memoir of Foster Care, Family, and Social Class that highlights the challenges faced in working class American society including violence and addiction. In his book Henderson explores the idea of luxury beliefs, how they benefit the privileged and harm the most vulnerable in society.
What are examples of luxury beliefs?
The luxury beliefs Henderson cites are seen to be widely held progressive views including:
Defunding the police
Defunding the prison system
Decriminalising or legalising drugs
Getting rid of standardised exams – Henderson sees these as helping less privileged children get into college
Rejecting marriage as a pointless concept. – Henderson claims that one of the strongest predictors of success was if they were brought up in a nuclear family.
Henderson believes that the common thread that holds luxury beliefs together is that they are held by privileged people, the beliefs make them look good (and feel good about themselves), but harm the marginalised.
Luxury beliefs allow the privileged to look good by:
Playing the victim
Protest without penalty – which is less likely to happen to more marginalised protestors
Push the less privileged down
Henderson labelled this ‘saviour theatre’. Henderson reminded of previous generation protestors like Patty Hearst and participants in the Weather Underground’s Days of Rage which would seem to fit Henderson’s definition of holding luxury beliefs.
The store, which recently went viral on Chinese social media platform Xiaohongshu, not only sells house-made essential oils – must-have souvenirs for visitors from mainland China thanks to the exposure – but recreates the signature scents of popular malls and other venues in Hong Kong.
On its shelves are familiar – sometimes odd – concoctions. Bottle labels reference K11, a shopping mall in Tsim Sha Tsui, the five-star Rosewood Hotel, and the Hong Kong International Airport. Sportswear brand Lululemon has one too.
The consequences of the psychoboom are both logical and contradictory. As the Chinese economy has expanded and citizens have grown wealthier, the demands of everyday life have grown in number and kind, expanding from physiological and safety concerns to a desire for love, esteem, and self-actualization. At the same time, such desires run counter to traditional Chinese values like the age-old concept of Confucian filial piety and the relatively new ideology imposed by the Chinese Communist Party (CCP), both of which place the well-being of the collective above the happiness of the individual.
Morgan Stanley, Goldman Sachs Say Recovery in Private Equity Deals and Fees – Bloomberg – Morgan Stanley and Goldman Sachs Group Inc. are confident that their most important clients are about to get active after a long spell on the sidelines and help goose the long-awaited revival in investment banking fees. The private equity deal machine has been mostly jammed up for the past two years, leaving many investment bankers twiddling their thumbs while their bosses talked up green shoots that failed to flourish. There are plenty of potential road bumps ahead, but there’s reason to put more weight on the better outlook now even compared with just three months ago: The wave of debt refinancing that has led banks’ revenue recovery this year has also been helping to fix the prospects of many companies owned by private equity firms
Sony is killing off recordable Blu-ray, bidding farewell to disc burning | TechSpot – Sony admitted it’s going to “gradually end development and production” of recordable Blu-rays and other optical disc formats at its Tagajo City plants in Miyagi Prefecture, Japan. Essentially, 25GB BD-REs, 50GB BD-RE DLs, 100GB BD-RE XLs, or 128GB BD-R XLs will soon not be available to consumers. Professional discs for video production and optical archives for data storage are also being discontinued. – the big shocker is the issue for archival formats
“When launching products back then, we didn’t have to have a profit timeline for them,” said a former longtime devices executive. “We had to get the system in people’s homes and we’d win. Innovate, and then figure out how to make money later.”
To do that, the team had to keep prices low. Amazon sometimes even gave away versions of the smart speaker as part of promotions in a bid to get a larger base of users.
Another Danish biotech can help investors’ hunger for obesity drugs | FT – this probably explains why Zealand pivoted from taking its medications to market to becoming research and selling on as its not big enough to exploit this opportunity on its own. (Full disclosure, I worked briefly on the diabetic emergency injection product until the company pivoted).
Age of Ozempic: Predictions for the luxury industry | Vogue Business – Analysts agree that the pop culture influence of weight loss drugs is giving luxury labels and mass-market brands, alike, licence to refocus on straight-size. “Luxury brands have long been staunchly unwilling to cater to plus-sizes outside of the occasional token representation, but typically premium and mass players would invest more readily in plus-size,” says Marci. “Now we’re seeing the effects of Ozempic and weight loss culture on retail as a whole.”
Already, a host of US-based retailers and fashion companies including Rent the Runway are seeing boosted demand for smaller clothing sizes, and falling demand for larger sizes, according to The Wall Street Journal. Retailers have been investing in fewer products that offer larger sizing
EssilorLuxottica expands into streetwear with $1.5bn Supreme deal – the deal was a “no brainer” and had happened “very quickly” because VF was under pressure to divest its most “iconic asset”. EssilorLuxottica planned to use Supreme’s wealth of customer data and its Gen Z fans in China, Japan and South Korea to target new consumers – it shows how good a deal James Jebbia got with private equity and VF Corporation
Lewis Hamilton Named Dior Ambassador | BoF – formula 1 driver and pit lane dandy has also worked with Dior men’s artistic director Kim Jones to guest design a collection of clothing and accessories set to launch in October
Even Disinformation Experts Don’t Know How to Stop It | New York Times – Researchers have learned a great deal about the misinformation problem over the past decade: They know what types of toxic content are most common, the motivations and mechanisms that help it spread and who it often targets. The question that remains is how to stop it.
A critical mass of research now suggests that tools such as fact checks, warning labels, prebunking and media literacy are less effective and expansive than imagined, especially as they move from pristine academic experiments into the messy, fast-changing public sphere.
Zynternet is a portmanteau made up of Zyn and internet. If you’re reading this internet is self-explanatory, the Zyn in question is tabacco-free Skoal bandit type nicotine pouches. Zyn comes in a tin and has various flavours.
According to journalist Max Read, the Zynternet is a kind of 90s to early 2000s sports obsessed ‘lad’ type culture; but in the 2020s. There are shades of ‘white van man’ in there as well.
a broad community of fratty, horndog, boorishly provocative 20- and sometimes (embarrassingly) 30-somethings–mostly but by no means entirely male–has emerged to form a newly prominent online subculture.
Despite Read’s definition defining it as a 20 to 30-something thing, the subculture seems to bleed into 40-something Dads and draws on creators like Barstool Sports. They’re less extreme than the Andrew Tate acolytes. They care more about sports and professional golf than they do about current affairs and politics. But they’ll be voting Republican. They like college sports, sports betting, light beers and Zyn nicotine pouches.
The culture has grown prominent on the laissez-faire Musk era Twitter.
Zynternet stretch
It would be very easy to point to the Zynternet audience and draw parallels to the ‘proles’ of George Orwell’s Nineteen Eighty Four. And then go down a dystopian k-hole.
I’ll leave the last words to David Ogilvy for those despairing about the Zynternet:
You aren’t advertising to a standing army; you are advertising to a moving parade. Three million consumers get married every year. The advertisement which sold a refrigerator to those who got married last year will probably be just as successful with those who’ll get married next year. An advertisement is just like a radar sweep, constantly hunting new prospects as they come into the market. Get a good radar and keep it sweeping.
David Ogilvy
TL;DR if you’re not reaching the zynternet, you’re probably not doing political marketing properly. More related content here.
Content or couture? Balenciaga’s 30-minute dress becomes the flashpoint of the season | Vogue Business – “It feels a little like a fast fashion iteration of haute couture,” says Victoria Moss, fashion director of The Standard, of the swirling mass of black nylon. “This feels at odds with what fashion at this level should be, which is exquisitely made pieces that somewhat justify their extreme pricing.” She adds that many invest in couture to have garments perfectly fitted to their bodies — and made to last for years.
“Is it beautiful? That’s debatable. Is it impressive? Not really. Is it brazen? Absolutely. Is it a meditation on the creative process? Maybe. Are we bored of these kinds of gimmicks at Balenciaga? Clearly not, as Demna’s work continues to be both a lightning rod and a conversation starter. “Call it ‘pret-a-polarize’,” says fashion journalist and ‘Newfash’ podcast host Mosha Lundström. “To my eye and understanding, I see this look as content rather than couture.”
Japan declares victory in effort to end government use of floppy disks | Reuters – yes stories like this are funny because ‘modern’ Japan with its flip phones, fax machines and floppy discs are an anachronism. But there’s a few other things to consider. There might be issues in terms of investment a la the NHS and critical systems that for whatever reason can’t be ported on to modern systems (like the problems had with security based on ActiveX).
Dumb systems also have security benefits, you can’t steal nearly as much data on even a compressed floppy disk as you can on a USB stick.
Interesting use cases for generative AI in China which sounds like a plot line from Ghost In The Shell.
Baidu – World No. 1? – Radio Free Mobile – is Baidu ERNIE really the number one generative AI service? It depends on if the numbers are true. 14 million developers, 950,000 models within the eco-system
China plays down importance of lithography tools in semiconductor challenges – Interesting report from Taiwan’s DigiTimes semiconductor trade magazine: China seems to be deliberately playing down the importance of lithography tools as it identifies the challenges for the development of its semiconductor industry in a recently published dossier.
The IT director is seeing a return to power and its thanks to the power of hackers and AI. The smartphone, the resurgence of Apple and SaaS saw IT decisions become more organic thanks to increased access to online services that provided better features than traditional enterprise software companies and the rise of knowledge working. IT teams found management of mobile devices onerous and faced hostile users.
Michiko Fukahori of the Japanese National Institute of Information and Communications Technology at ITU TSB – 8th Chief Technology Officers (CTO) Meeting
This meant that the IT director became less important in software marketing. A decade ago marketing had pivoted to a bottom up approach of ‘land and expand’. This drove the sales of Slack, Monday.com and MongoDB.
Two things impacted this bottom up approach to enterprise innovation:
Cybercrime: ransomware and supply chain attacks. Both are not new, ransomware can be traced back to 1989, with malware known as the AIDS trojan (this had much cultural resonance back then as a name). Supply chain attacks started happening in the 2010s with the Target data breach and by 2011, US politicians were considering it a security issue. Over COVID with the rise of remote working, the attacks increased. The risk put the IT director back in the firing line.
AI governance: generative AI systems learn from their training models and from user inputs, this led to a wide range of concerns from company intellectual property leaving via the AI system, or AI outputs based on intellectual property theft.
The most immediate impact of this is that the IT director is becoming a prized target on more technology marketers agendas again. This takes IT director focused marketing from back in the 1980s and the early 2000s with a top-down c-suite focus including the IT director. This implies that established brands like Microsoft and IBM will do better than buzzier startups. It also means I am less likely to see adverts for Monday.com in my YouTube feed over time.
This doesn’t mean that the IT director won’t be disrupted in other parts of his role as machine learning facilitates process automation in ways that are continuing to evolve.
Brands plan for a quiet Pride Month | News | Campaign Asia – The hesitation around Pride may also be related to executives’ increasing reluctance to speak out on social issues more broadly. Wolff pointed to Edelman’s Trust Barometer, which found that 87% of executives think taking a public stance on a social issue is riskier than staying silent. “Essentially, nine out of every 10 executives believe that the return on investment for their careers is not worth the support during this turbulent time,” said (Kate) Wolff. “This is clearly problematic for both the community and the progress we have made in recent years.”
Chinese Firms Are Investing Heavily in Whisky Market | Yicai Global – Although international liquor giants have developed the local whisky consumption market for many years, the market penetration rate of overseas spirits in China, including whisky, is only about 3 percent. This means domestic whisky producers will need to develop new consumption scenarios, Yang said. Whisky consumption in China centers mainly around nightclubs, gift-giving and tasting events held by affluent consumers, Yang noted, but in these scenarios, imported whisky brands with a long history tend to be more popularly accepted,, so it will be difficult for domestic rivals to compete. According to the latest report from alcohol market analysts IWSR, China’s whisky market was worth CNY5.5 billion (USD758 million) last year, having grown more than fourfold over the past 10 years. It is expected to reach CNY50 billion (USD6.9 billion) in the next five to 10 years.
Yoox Net-a-Porter exits China to focus on more profitable markets – Multi-brand luxury clothing sales platform Yoox Net-a-Porter is closing its China operations, this against a backdrop of other brands also pulling out of Chinese e-commerce including Marc Jacobs fragrances. The corporate line from Richemont was “in the context of a global Yoox Net-a-Porter plan aimed at focusing investments and resources on its core and more profitable geographies”.
Ignite the Scent: The Effectiveness of Implied Explosion in Perfume Ads | the Journal of Advertising Research – Scent is an important product attribute and an integral component of the consumption experience as consumers often want to perceive a product’s smell to make a well-informed purchase decision. It is difficult, however, to communicate the properties of a scent without the physical presence of odorants. Through five experiments conducted in a perfume-advertising context, our research shows that implied explosion, whether visually (e.g., a spritz blast) or semantically created, can increase perceived scent intensity, subsequently enhancing perceived scent persistence. It also found a positive effect of perceived scent persistence on purchase intention. In conclusion, the research suggests that implied explosion can be a powerful tool for advertisers to enhance scent perception, consequently boosting purchase intention.
Mat Baxter’s Huge turnaround job | Contagious – interesting perspective on his time at Huge. What I can’t square it all with is what we know about marketing science and declining effectiveness across digital media
On my LinkedIn, I couldn’t escape from the Cannes festival of advertising. Partly because one of the projects I had been involved in was a shortlisted entry. One of the most prominent films was Dramamine’s ‘The Last Barf Bag: A Tribute to a Cultural Icon’. It was notable because of its humour, which was part of this years theme across categories.
震災復興から生まれた刺し子プロジェクトをブランドに！ 15人のお母さんの挑戦！ – CAMPFIRE (キャンプファイヤー) – ancient Japanese craft – KUON and Sashiko Gals are part of a new generation of designers keeping the traditional Japanese technique of sashiko alive. And together, they are bringing the decorative style of stitching to our favorite sneakers (including techy Salomons!). Sashiko is a type of simple running stitch used in Japan for over a thousand years to reinforce fabrics. It’s typically done with a thick white thread on indigo fabric and made into intricate patterns.
Nationalism in Online Games During War by Eren Bilen, Nino Doghonadze, Robizon Khubulashvili, David Smerdon :: SSRN – We investigate how international conflicts impact the behavior of hostile nationals in online games. Utilizing data from the largest online chess platform, where players can see their opponents’ country flags, we observed behavioral responses based on the opponents’ nationality. Specifically, there is a notable decrease in the share of games played against hostile nationals, indicating a reluctance to engage. Additionally, players show different strategic adjustments: they opt for safer opening moves and exhibit higher persistence in games, evidenced by longer game durations and fewer resignations. This study provides unique insights into the impact of geopolitical conflicts on strategic interactions in an online setting, offering contributions to further understanding human behavior during international conflicts.
The West Coast’s Fanciest Stolen Bikes Are Getting Trafficked by One Mastermind in Jalisco, Mexico | WIRED – “Not so long ago, bike theft was a crime of opportunity—a snatch-and-grab, or someone applying a screwdriver to a flimsy lock. Those quaint days are over. Thieves now are more talented and brazen and prolific. They wield portable angle grinders and high-powered cordless screwdrivers. They scope neighborhoods in trucks equipped with ladders, to pluck fine bikes from second-story balconies. They’ll use your Strava feed to shadow you and your nice bike back to your home.” – not terribly surprising, you’ve seen the professionalisation and industrialisation in theft across sectors from shoplifting, car theft and watch thefts so this is continuing the trend.
OpenAI Just Gave Away the Entire Game – The Atlantic – The Scarlett Johansson debacle is a microcosm of AI’s raw deal: It’s happening, and you can’t stop it. This is important not from a technology point of view, but from the mindset of systemic sociopathy that now pervades Silicon Valley.
Apple Intelligence is Right On Time – Stratechery by Ben Thompson – Apple’s orientation towards prioritizing users over developers aligns nicely with its brand promise of privacy and security: Apple would prefer to deliver new features in an integrated fashion as a matter of course; making AI not just compelling but societally acceptable may require exactly that, which means that Apple is arriving on the AI scene just in time.
‘Rare, vintage, Y2K’: Online thrifters are flipping fast fashion. How long can it last? | Vogue Business – as secondhand shopping becomes increasingly commonplace, this latest outburst brings to light the subjectivity of resale. What determines an item’s worth, especially in an age of viral micro-trends and heavy nostalgia? Is it ethically moral to set an item that’s the product of fast fashion — long criticised for not paying workers fairly — at such a steep upcharge, and making profit from it? If someone is willing to pay, does any of it matter?
