Archive for the ‘marketing’ category


Selling Opel: what’s good for China is good for General Motors

15.02.2017


Above: The Opel Astra K: on the roster.

I’m not so sure that GM going into talks to sell Opel and Vauxhall to PSA (Peugeot–Citroën) is that big a surprise.
   We obviously hold a lot of nostalgia for these brands, and it’s only right that we perceive GM as selling its family jewels. Opel has made some great cars over the years, and Buick in China and the US, Vauxhall in the UK, and Holden in Australia rely on this division to provide it with product.
   But it wasn’t long ago that I said I foresaw the next Holden Commodore being a four-door booted model based on a Chinese Buick Regal that’s on the same platform. While I’ve been proved wrong with scoop photos and inside information from journalists in the immediate term, longer-term this doesn’t look so far-fetched, in a future where Peugeot owns Opel–Vauxhall and GM has no choice but to consider Chinese sourcing seriously.
   Therefore, GM isn’t thinking that it’s selling off the family jewels, at least the GM where Chinese partner SAIC is overwhelmingly calling the shots.
   What they are thinking is this: ‘We should be able to develop the whole lot in China.’ They weren’t nostalgic over Holden, and they won’t be thrilled with the losses at Opel. It’s willing to sacrifice it to make its own position stronger. We’ve already seen that SAIC has called it quits when it comes to British assembly at Longbridge—that’s now all done back in China.
   There’s been such a massive technology transfer from the US to China over the last few years that Europe is seen as surplus by the folks in Shanghai. They have all the platforms on which they can make products globally. They may even, rightly or wrongly, think that the remaining brands can get them into Europe, even if GM had pulled its Korean-made Chevrolets out of there.
   Holden can be used to westernize the product and the Australians have shown they can do it well.
   I’m not saying I agree with this, as a long-time Opel fan. I was looking forward to the new Commodores coming out of Rüsselsheim. The car looks the business, it’s roughly the size of the recently deleted Ford Falcon (therefore, I’m not sure why people are so upset about its size), and the majority of buyers don’t even know which set of wheels the power’s going to. I’ve got an Astra K coming in a few months at Lucire.
   What you’re going to see is GM basically being a Shanghai-run firm with China supplying global markets and the US operations kept going for their brand cachet.
   In the meantime, a hypothetical PSA-run Opel will continue with the existing plans till the end of these models’ life cycles, then China will become the manufacturing hub for numerous markets.
   SAIC already makes a load of Cadillacs, Buicks and Chevrolets for the domestic market, and they’ll want to pump them out more widely.
   They’ve also shown that they can take new GM platforms and turn them into Roewes—or old GM platforms and turn them into Baojuns.
   PSA, meanwhile, with 14 per cent controlled by Chinese firm Dongfeng, will pursue a strategy of streamlining platforms and be focused more on Europe. It could pay off as cross-town rival Renault has done well with Nissan, Mitsubishi, Samsung, Dacia and AvtoVAZ, but it won’t nearly be as secure. The two French groups have been obsessed with one another for as long as I can remember, for years spending more time rivalling each other than actually coming up with what customers wanted.
   Dongfeng may have to cough up more lolly and it could become a larger shareholder than the Peugeot family or the French government. But will it have the sort of geographical coverage that Renault has?
   That’ll be what PSA will be asking itself, knowing that it’s reasonably strong in China—but also realizing that it hasn’t been clever at creating models that can be sold globally (the current Citroën C6, DS 5LS and the DS 6 among them, sold exclusively in China). Nevertheless, there are savings to be had, though the most obvious fear is that Opel and Vauxhall will go the way of Panhard and Talbot, brands that fell into either Peugeot or Citroën’s hands over the years and become defunct at the expense of the parent companies’. Is there a desire to extend the group’s brand portfolio beyond Peugeot, Citroën, DS, the various Dongfeng lines, and the ex-Hindustan Ambassador?
   The official statement is non-committal enough and gives nothing away: ‘PSA Group and General Motors confirm they are exploring numerous strategic initiatives aiming at improving profitability and operational efficiency, including a potential acquisition of Opel Vauxhall by PSA.
   ‘There can be no assurance that an agreement will be reached.’
   In any case, we always said that SAIC was playing a long game. MG was a toe in the water. GM is the real deal.
   Controlling GM means they can do as they please, and what’s good for China is good for General Motors.

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Posted in branding, cars, China, culture, design, leadership, marketing, media, USA | No Comments »


Avon walling

21.01.2017

A week ago, Avon found an inventive way to get its brand noticed in peak-hour traffic.
   I could make this about how people don’t know how to drive these days, or about the media fascination with Asian drivers when the reality does not bear this out, but let’s make it all about Avon—since they are the ones who have actually inspired a full blog post today. To think, it could have just been on my Instagram and Tumblr and I would have let it go, since the following video is over a week old.

   To be fair, as well as posting on my own platforms, I thought it would only be fair to alert Avon about it on its Facebook. In this age of transparency, it’s not good to talk behind someone’s back. I would have used the website advertised on the side of this Mazda (avon.co.nz), but the below is all I get. (You can try it yourself here.) I told Avon about this, too. They need to know one of their people is a dangerous, inconsiderate, and selfish driver who is ignorant of basic New Zealand road rules, namely how a give-way sign works and how to change lanes. And if I were in their shoes, I’d want to know that the URL emblazoned in large letters on the side of my fleet of cars is wrong.

   It was ignored for a while, now my post is deleted.
   Immediately I had these five thoughts.
   1. Its brand isn’t that great. When you’re starting from a poor position, the best thing to do is try to work harder. As a network marketer, Avon can’t afford to have an office that doesn’t deal with complaints. I might even be a customer. In any case, I’m part of the audience—and these days, we can affect a brand as much as the official channels. For instance, this post.
   2. In the 2000s and 2010s, social media are seen as channels through which we can communicate with organizations. Going against this affects your brand. (There’s a great piece in the Journal of Digital and Social Media Marketing, vol. 3, no. 1 that I penned. Avon would do well to read this and integrate social media marketing into its operations.)
   3. If you’re an Avon rep and you know that the Australia–New Zealand operation ignores people, then what support do you think you can count on? My post will have been seen by many people, and a follow-up one today—informing them it’s poor form to delete comments—will be seen by more. It discourages more than customers—its distributors surely will think twice. (I’m also looking at you, Kaspersky. Another firm to avoid.)
   4. Advertising your website in large letters and have it not work is a major no-no—it contributes to the image I (and no doubt others) have on Avon as, well, a bit amateur.
   5. This is a US firm. If you’re an exporter, isn’t now a really good time to show that you care about your overseas operations? Nation brands impact on corporate ones. Now I’m beginning to wonder if Avon might not be that interested in overseas sales any more. Their new president, with his stated views on free trade, has said in his inauguration speech that they need to ‘buy American’ and ‘hire American.’ Let’s delete stuff from foreigners!
   The question I have now is: wouldn’t it have been easier to apologize for its representative’s inability to drive safely, and thank me for telling them their website is dead so they can get it fixed? The video contains the registration number, so Avon could have had a word to their rep.
   This is all Marketing 101, yet Avon seems to have failed to grasp the basics. I guess the folks who flunked marketing at university found jobs after all.

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Posted in branding, business, interests, marketing, New Zealand, USA, Wellington | No Comments »


A farewell to Tim Kitchin

19.01.2017

For the second time in two months, I found myself announcing to the members of Medinge Group another passing: that of my good friend Tim Kitchin.
   Tim passed away over the weekend, and leaves behind three kids.
   I always admired Tim’s point of view, his depth of thinking, and his generosity of spirit.
   I remember Tim taking notes at my first Medinge meeting in 2002: he drew mind maps. None of this line-by-line stuff. And they worked tremendously well for him.
   His brain had a capacity to process arguments and get to the core incredibly quickly, from where he could form a robust analysis of the issues.
   But never at any point did Tim use this massive intellect to debase or humour anyone. He used it to better any situation with a reasoned and restrained approach.
   Whenever he commented, he did so profoundly. Tim could get across in very few words some complex arguments, or at least open the door to your own thinking and analysis.
   In 2003, Tim was one of the authors of Beyond Branding, with a chapter on sustainability (‘Brand Sustainability: It’s about Life … or Death’). Note the year: he was writing about sustainability before some of today’s experts began thinking about it. Prior to that he had co-authored Managing Corporate Reputations (2001).
   He wrote a chapter summary for Beyond Branding, which began, ‘Imagine the life of the earth as a single day. In the last 400th of a second of that day we have directly altered 47% of the earth’s land area in the name of commerce and agriculture, but even so, 900 million people are still malnourished, 1.2 billion lack clean water and 2 billion have no access to sanitation.
   ‘We cannot take it for granted that governments will suddenly acquire the clarity[,] insight and commonality of belief to see a process of renovation to its end. Unless we accept our joint and several liability for this future and begin to address the sustainability of all human systems, we stand little chance of tackling the most complex system of all—our symbiosis with spaceship earth … destination unknown … arrival time yet to be announced.
   ‘Against this apocalyptic backdrop, how does a 60 year-old global CEO promise a bright future and possibly a pension to his 16 year-old apprentice, or any future at all to the ten year-old enslaved employees of his suppliers’?
   ‘How does he create a sustainable future for his organisation and those to whom it has made explicit or implicit promises? He must start by building a sustainable brand.’
   You can see the sort of thinking Tim exhibited in the above, and as I got older the more I realized how ahead of the curve he was. The problems that he writes about remain pressing, and his solutions remain relevant. Presented in language we can all understand, they introduce complex models, much like his mind maps.
   He had a real love of his work and a belief that organizations could be humanistic and help others.
   He certainly lived this belief. Tim was with us at Medinge till the end of 2014, and went on to other projects, including directing Copper, a digital fund-raising and marketing agency. He was also helpful to a Kiwi friend of mine who arrived in the UK in 2016—Tim was generous to a fault.
   With the world in such confusing turmoil, Tim still sought solutions to make sense of it all and posted to social media regularly.
   And despite whatever he was going through himself, he had a real and constant love for his children.
   Tim had an enduring spirituality and he believed in an afterlife, so if he’s right, I’ll catch up with him at some stage. By then hopefully we’ll have made a little bit more sense of this planet. As with Thomas, who passed away in December (in Tim’s words, ‘Horrid news to end a horrid year’), I’ll miss him heaps and the world will be far poorer without him.

PS.: I have the details of Tim’s service and burial from a mutual friend, Peter Massey.
   As I guessed, it will be at All Saints’ Church in Biddenden (TN27 8AJ). The date and time are Thursday, February 2 at 2 p.m.
   There will be a reception afterwards at the Bull in Benenden (TN17 4DE).
   Nearest train stations are Headcorn and Staplehurst on the line from Charing Cross, Waterloo East and London Bridge. Local taxi firm MTC is on +44 1622 890-003.
   Peter has offered help with travel and accommodation (via Facebook) so I can relay messages if need be. He has posted on Tim’s Facebook wall if any of you are connected there.—JY

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Posted in branding, marketing, publishing, social responsibility, UK | 1 Comment »


Online publishing: how the players we dealt with changed in 2016

12.01.2017


Above: Brave Bison’s predecessor, Rightster, left much to be desired in how it dealt with publishers, while investment commentators had concerns, too.

Twenty-sixteen had some strange developments on the publishing front.
   First, we noticed Alexa rankings for a lot of sites changed. Facebook itself went from second to third, where it has stayed. Our own sites dropped as well, across the board, even though our own stats showed that traffic was pretty much where it was. In Autocade’s case, it was rising quickly.
   We checked, and Alexa had announced that it had increased its panel again in 2016. There was an announcement about this in 2014, but things improved even more greatly during the last Gregorian calendar year, specifically in April. (April 2016, it seems, was a huge month of change: read on.) This means Alexa began sampling more people to get a more accurate picture. Given that Facebook fell as well as us, then we drew the conclusion that the new panel must include audiences in China and other non-Anglophone places. It makes sense: Alexa is a global service and should take global data points. Never mind that we’ve suffered as a result, we actually agree with this approach. And we’re taking steps in 2017 to look at capturing extra traffic with our content.
   Alexa, when we approached them, said it could not comment about the origins of the panellists. Again, fair enough. We’ve made an educated guess and will work accordingly.
   Secondly, there were two ad networks whose advertising disappeared off our sites. The first, Gorilla Nation, started dropping off long before 2016. In 2015, we asked why and were asked to fill out some form relating to Google ads. Anyone who’s followed this blog will know why that was unpalatable to us—and we want to make sure our readers don’t fall victim to Google’s snooping, either. I’m not saying that Google ads don’t appear at all—it’s the largest advertising network in the world, and its tentacles are everywhere—but if I can avoid opening our properties up to Google willingly, then I’ll do so.
   It’s a shame because we’ve worked exceedingly well with Gorilla Nation and found them very professional.
   We have, sadly, entered an era where—as found by my friend and colleague Bill Shepherd—online advertising is controlled by a duopoly. In The New York Times, April 18, 2016 (italics added): ‘Advertisers adjusted spending accordingly. In the first quarter of 2016, 85 cents of every new dollar spent in online advertising will go to Google or Facebook, said Brian Nowak, a Morgan Stanley analyst.’ I don’t think this is fair, as they’re not the ones generating the content. Google has also managed to game services like Adblock Plus: they’ve paid for their ads not to be blocked. (Better has more information on why certain ad blockers are ineffective.) It’s not difficult to see why native advertising has increased, and this is generally more favourable to the publisher. In 2017, it’s time to build up the advertising side again: two years ago we already saw quarters where online overtook print in terms of ad revenue.
   Burst Media’s ads also disappeared, and we had been working with them since 1998. Now called Rhythm One, they responded, ‘We recently migrated to a new platform and your account was flagged by an automated process as part of that. All that being said—we can absolutely get you live again.’ That was April. I added one of their team to Skype, as requested, but we never connected—the helpful staff member wasn’t around when I called in. Again, a bit of a shame. As I wrote this blog post, I sent another message just to see if we could deal with the matter via email rather than real-time on Skype.
   At least this wasn’t a unilateral cessation of a business arrangement, which Rightster sprung on us without notice in April. Rightster’s Christos Constantinou wrote, ‘It is with regret that we inform you that from yesterday we ceased providing video content services to your account.’ This wasn’t the first change Rightster sprung on us—its code had changed in the past, leaving big gaps in our online layouts—and soon after, everyone there clammed up, despite an initial email from another Rightster staffer that feigned surprise at what had happened. Mr Constantinou never picked up phone calls made since that point, and we couldn’t get an answer out of them. No breaches of their terms and conditions were ever made by us.
   We were only interested in a small handful of their video sources anyway, all of whom exist on other platforms, so one would have thought that it was to Rightster’s advantage to continue working with a well respected brand (Lucire). A bit of digging discovered that the firm was not in good shape: a pre-tax loss in the first half of 2015 of £11·5 million, with shares trading in October of that year at 10·50p per share, down from its float price of 60p. That year, it was forecast by Share Prophets that things would only get worse for the firm, and they were proved right within months. Not long after ceasing to work with us (and presumably others), Rightster became Brave Bison Group, restructured, and became a ‘social video broadcaster’, but it was still burning cash (to the tune of £1·3 million, according to the same website in July 2016).
   Gorilla Nation and Burst’s slots have largely been replaced by other networks as well as ads secured in-house, while Rightster effectively did us a favour, though its opaqueness didn’t help. In fact, when they didn’t answer questions, it was only natural to surf online to investigate what was going on. Initially, there was some negative stuff about Burst, though my concerns were put to rest when they emailed me back. With Rightster, there was no such solace: finding all the news about the firm being a lemon confirmed to me that we were actually very lucky to have them farewell us.
   We revived an old player that we used, through Springboard, itself linked to Gorilla Nation, so we’re still serving advertising from them, just in a different form. Video content has not vanished from the Lucire sites, for those who are interested in it.
   How a company behaves can be linked to how well it ultimately performs, and what it’s worth. Given our treatment by Rightster, it wasn’t that surprising to learn that something was rotten in Denmark (or London). Maybe that first staff member was genuinely surprised, with employees not being told about their company running out of money. And unless things have truly changed within, it could well continue to function dysfunctionally, which will give those AIM columnists more ammunition.

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Posted in business, internet, marketing, media, New Zealand, publishing, technology, UK, USA | No Comments »


Farewell to Thomas Gad: a friend, a colleague, and a uniter

19.12.2016

Tonight, I had the sad and solemn duty to announce publicly the passing of my friend Thomas Gad.
   I’m still waiting for someone to come out and tell me that I have been severely pranked.
   Thomas was the founder of what we now call Medinge Group. After working for 17 years at Grey Advertising as an international creative director, Thomas set up Brandflight, a leading branding consultancy HQed in Stockholm. He authored 4-D Branding, Managing Brand Me (with his wife, Annette Rosencreutz), and, most recently, Customer Experience Branding.
   In 2000, Thomas seized on an idea: why not gather a bunch of leading brand practitioners at Annette’s family’s villa at Medinge, three hours west of Stockholm, for a bit of R&R, where they could all discuss ideas around the profession?
   Nicholas Ind was one of the people at that first meeting. In a statement tonight, Nick wrote, ‘I first met Thomas when I was working in Stockholm in 2000—he invited me to join him at Medinge in the Swedish countryside to talk about branding. So began a professional and personal relationship that was truly fulfilling. Thomas, and his wife Annette, hosted the annual meetings we had at his house every summer after that with unrivalled generosity. My strongest recollection of those days is not the debates we had or flying with Thomas in his sea plane (even though those are also memorable), but Thomas and Annette sitting at the dinner table in the evenings singing songs, telling jokes and bringing everyone together. Thomas was exceptional in the way he made everyone feel welcome and valued in the group—he will be deeply missed.’
   I came on the scene in 2002, invited by Chris Macrae. The event had become international the year before. Thomas and Annette made me feel incredibly at home at Medinge, and we had an incredibly productive meeting. He had taught me to sing ‘Helan går’, for no Swedish gathering is complete without a drinking song.
   At the same meeting, I met Ian Ryder, who wrote, ‘As a founding member, and now Honorary Life Member, of Medinge Group I couldn’t possibly let such a sad announcement pass without observation. Thomas was a really bright, intellectually and socially, human being who I first met at the inaugural pre-Medinge group meeting in Amsterdam sixteen years ago. Little did we know then that our band of open-minded, globally experienced brand experts would develop into a superb think-tank based out of Thomas’s home in Medinge, Sweden.
   ‘For many years he and his lovely wife, Annette, hosted with a big heart, the annual gathering at which he played fabulous host to those of us who made it there. A larger-than-life, clever and successful professional, Thomas will be sorely missed by all those lucky enough to have known him.’
   By the end of the summer 2002 meeting we had some principles around branding, the idea for a book (which became Beyond Branding), and a desire to formalize ourselves into an organization. The meeting at Medinge would soon become the Medinge Group (the definite article was part of our original name), and we had come to represent brands with a conscience: the idea that brands could do good, and that business could be humane and humanistic. This came about in an environment of real change: Enron, which had been given awards for supposedly doing good, had been exposed as fraudulent; there was a generation of media-savvy young people who could see through the BS and were voting and buying based on causes they supported; and inequality was on the rise, something that the late Economist editor, Norman Macrae (Chris’s Dad) even then called humankind’s most pressing concern. If everything is a product of its time, then that was true of us; and the issues that we care about the most are still with us, and changes to the way we do business are needed more now than ever.
   This is Thomas’s legacy: Medinge Group is an incorporated company with far more members worldwide, holding two meetings per annum: the annual summer retreat in Sweden, and a public event every spring, with the next in Sevilla. The public events, and the Brands with a Conscience awards held in the 2000s, came about during Stanley Moss’s time as CEO. Stanley wrote this morning, ‘Thomas brought his vision and resources to the foundation of Medinge, and served as a critical voice in the international movement for humanistic brands.’ We continue today to spread that vision.
   We have now been robbed far too early of two of our talents: Colin Morley, in the 7-7 bombings in London in 2005; and, now, Thomas, taken by cancer at age 65. My thoughts go to Annette and to the entire family.

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Posted in branding, business, marketing, social responsibility, Sweden | 2 Comments »


Facebook’s ad targeting: evidence now filed with the Better Business Bureau

04.12.2016


As of today, I’ve sent off my evidence to the US Better Business Bureau so they can continue their investigation of Facebook. The DAA was too gutless to investigate but the BBB, by contrast, gives a damn.
   Let me note here that I have nothing against Facebook making a buck. I just ask that it do so honestly, that it does what it says.
   Facebook claims that you can opt out of targeted advertising, and that you can edit your preferences for that targeting, the same was what Google did in 2011. It was revealed then that Google lied, and the Network Advertising Initiative was able to follow up my findings and assured me it would work with them to sort their procedures out.
   If you opt out of targeting, Facebook continues to gather information on you. The BBB noted to me in April that if I could show that Facebook was targeting based on personal information I did not provide (e.g. if you fed in a fake location as your home in Facebook and it serves you ads based on your real location), then it could be a violation of their principles. This is pretty easy to prove: just go to any ad in your feed, click on the arrow in the right-hand corner, and click ‘Why was I shown this ad?’ In most cases, your actual location will have something to do with it.
   Secondly, there is a potential link between the preferences Facebook has stored on you—the ones they say they would not use—and the ads you are shown. Facebook claims you can edit those preferences but as I showed last week, this is not true. Facebook will, in fact, repopulate all deleted preferences (and even add to them), but thanks to the company itself providing me with the smoking gun, I was able to connect those shown preferences with ads displayed between March and December 2016. It casts doubt on whether Facebook is actually targeting me based on freely given information, especially since, for example, I am being served ads for Oh Baby! when I don’t have kids. (Oh Baby!, meanwhile, is one of the preferences in its settings.)
   My Google investigation took three months; this took between eight and nine.
   We’ll see if the BBB will take quite as long—they might, because they say they tend to be inundated with complaints about Facebook, but find that most cases do not violate their principles. But I’ve shown them not only examples along the lines of what they suggested, but a few that go even further.

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Why the next Holden Commodore will have a traditional boot

01.12.2016


Above: The Holden Commodore SS-V, facing its last year of manufacture.

The current wisdom appears to be that when the Holden Commodore VF leaves production in 2017, it’ll be replaced by the liftback version of the Opel Insignia B. After all, the only big sedan Ford Australia’s offering in place of the now-defunct Falcon is the liftback version of the Mondeo, a car that’s wider, taller, and with a longer wheelbase than the supposedly larger Falcon. I think the crystal ball-gazers are wrong.
   I could say that the Australian and New Zealand big car buyer is very traditional and would balk at the idea of the big Holden being a hatch. But that’s not the only reason. There’s a bigger one: China.


Above: GM currently makes the Opel Insignia A-based Buick Regal in China, after initially beginning with German production.

   At the moment, China makes a version of the Opel Insignia A locally, and it’s a four-door sedan with a traditional boot. They badge it as a Buick Regal, a nameplate that’s arguably got stronger goodwill in the Middle Kingdom than in the US, even if it’s been running Stateside since Kojak drove it on the streets of Manhattan. And the Chinese like their traditional sedans: it’s a market where liftbacks aren’t kosher.
   While Holden says the next Commodore will be sourced from Germany, and the media speculate that the Germans won’t get a four-door sedan, it’s not to say that one hasn’t been developed. And we’re not exactly missing precedent for a country to tool up for a body style that isn’t offered domestically. We need look no further than GM itself, which was selling the Opel Antara into Europe, exporting it from Korea, years before the same model was available domestically as a Daewoo.
   While Australia and New Zealand will account for quite tiny numbers, you have to think about where else a Stufenheck Opel Insignia B might sell. How about the Middle East, where it could complement the Chevrolet Malibu and Impala as a sportier counterpart? Or South Africa, which would also welcome right-hand drive? Could China take some as Regals in advance of SAIC–GM tooling up for its own version? It’s all conceivable.
   There’s also a possibility that Holden will start off sourcing the next Commodore from Germany, and switch to Chinese production when the Buick Regal is ready. SAIC owns the majority of its venture with GM these days, and calls the shots. What’s good for General Motors is good for China, as the saying goes. And it could well determine that one of its plants, either in China or in Thailand, where plenty of Australasian-market cars are sourced from, could be the production site of the 2019 or 2020 model. (Korea has been ruled out already, according to The Wall Street Journal.)
   GM has switched sources mid-run before, and happily used the goodwill of German engineering when introducing a vehicle made with cheaper labour. Forty years ago, after selling German Opels for years, it began selling the Opel Isuzu from Japan: it was the Isuzu Gemini, the Japanese counterpart to the Opel Kadett C world car. The following year, 1977, the Opel Isuzu became the Buick/Opel. The Japanese origins were eventually hidden. The 2008 Regal, meanwhile, was originally sourced from Germany until SAIC was ready with its locally made version.
   In this day and age, when global-market Renaults and Fords come from Turkey, Nissans and Suzukis from India, and Fiats and Volkswagens from México, no such name changes will be needed. If the quality is good enough, ‘made in China’ won’t be that strange a concept. No one seems to have much of an opinion, or a stereotype, over ‘made in Thailand’—yet we buy plenty of product from them.
   GM isn’t likely to sleepwalk into this transition as it did pre-GFC. Then, the company was ill-prepared, prepared to splash money around on different platforms. The leaner 2010s GM will want to grab every sale it can, and I don’t think Aussie or Kiwi buyers are going to flock to the showrooms for a Commodore hatch, even if it looks like a Porsche Panamera.
   They won’t necessarily care that the new model is a better handler, with powerful engines, better economy, a lighter weight, and a decent interior. They could notice that shoulder room has gone down a fraction. There’s a certain conservatism to this market, and the idea of a hatchback just might be too foreign for this group.
   And if they can supply it, with the Chinese Buick Regal waiting in the wings, then why not maximize sales?
   When the four-door Commodore débuts in Australia next year, after its début in Genève as the Opel Insignia, the General will again have one over arch-rival Ford when it comes to big cars.

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Posted in business, cars, China, globalization, marketing, USA | 1 Comment »


Drivetribe will be a mecca for motorheads—Autocade readers welcome

22.11.2016

Now that the first episode of The Grand Tour has aired, and we’re nearing the official launch of Drivetribe (November 28), we’re beginning to see just how good an investment £160 million was for Amazon when it picked up the cast of The Goodies, I mean, Top Gear (sorry, I get those BBC shows mixed up, and they do have the same initials), along with producer Andy Wilman (who himself presented Top Gear segments many years ago, but we are now spared his nude scenes).
   Essentially, you can’t do a show these days without an internet community, so what did the four men do? Create their own. They’ve put their money into Drivetribe, which has attracted an eight-figure investment from additional parties, chief among which is 21st Century Fox—that’s right, Rupert Murdoch. Amazon’s reportedly quite happy with the arrangement—and it certainly helps boost their show.
   There are already signs that Drivetribe is going to succeed as a motoring portal–social network, for those of us who have been playing with it. Maybe the Murdoch Press has learned from Myspace? Or, it’s put their money in, but it’s letting experts do their job–among whom is none other than Cate Sevilla, formerly of Buzzfeed UK, and whose blog I followed even before she arrived in the UK the good part of a decade ago. It isn’t a surprise that Cate would do well in social media—she had a knack for it, even back then.
   Car enthusiasts were invited to pitch their ideas for tribes some months back, recognizing that we’re not all the same. Additionally, there’s a bunch of us who work in some aspect of the industry, and looking through the tribes, we’re the ones whose ideas have been adopted. For those of you who use Autocade, there’s one linked to that very venture.
   As many of you who follow this blog know, I founded Autocade in 2008, a car encyclopædia that wouldn’t have the fictions of Wikipedia (or ‘Wikiality’, as Stephen Colbert calls it). Eventually, I succumbed to modern marketing trends and very lately started a Facebook page on it, at least to post some behind-the-scenes thinking and publicity photos. While it proved all right, my blog posts were here and things were all over the place.
   When I first proposed doing a Drivetribe tribe many months ago, I centred it around the marketing of cars, and the result, the Global Motorshow, can be found here. And now that it’s started, it’s become clear that I can put all the content in one place and have it appreciated by other motorheads. In a week and a half it’s grown to about a third of the following of the Facebook page, and Drivetribe hasn’t even officially launched yet. Those members are either other tribe leaders or those who signed up early on. The question must be asked: why on earth would I bother continuing with Facebook?
   In addition to Cate, Drivetribe is not faceless. The support crew respond, and there are humans working here. I’m impressed with how quickly they get back to us, and how the site is reasonably robust. On all these points, Drivetribe is the opposite of Facebook.
   Granted, I don’t know the other members there, and some I only know through reputation. But then I didn’t know a lot of the people I now find familiar on Facebook car groups. Nor did I know the people on Vox back in 2006, or some of the folks at Blogcozy in 2016. Communities build up, often thanks to common interests, and here’s one that already has a massive online community ready to flock to it. Having three celebrities helps, too, and all three Grand Tour presenters post to the site.
   If you’re interested, the scope of the Global Motorshow (originally without the definite article, but when I saw the GM initials in the icon, I rethought it) is a bit wider than Autocade. I thought it might be fun to post some of the marketing materials we come across, the odd industry analyses that have appeared at this blog (updated in some cases), and even commercial vehicles, which aren’t part of Autocade. I’ve chosen to keep the tribe public, so anyone can post if they find something interesting. Let’s hope Drivetribe can keep the spammers at bay: something that the old Vox.com failed to do, and Facebook is desperately failing to do now as well.
   Come November 28, we’ll know just how good things are looking, but I’m erring on the side of the positive—something I was not prepared to do for sites such as Ello or Google Plus.

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Posted in business, cars, internet, marketing, media, TV, UK, USA | No Comments »


Brexit reminds us that we need to take a lead in making globalization fairer

28.07.2016

Brexit was an interesting campaign to watch, and there’s not too much I can add that hasn’t been stated already. I saw some incredibly fake arguments from Brexit supporters, including one graphic drawing a parallel between the assassinations of Anna Lindh in 2003 and Jo Cox MP, saying how the murder of the former led Sweden to remain in the EU.

   The trouble with the graphic is that the only thing it got right was that two women were killed. Sweden wasn’t having a referendum on whether to leave the EU, it was about whether it should adopt the euro. The closest British parallel would have been when then-PM John Major negotiated the Maastricht opt-out in 1991. It also claimed that the polls were for leaving; notwithstanding that that wasn’t what the Swedes were voting for, the polls for and against adopting the euro were roughly neck in neck, though the wisdom was that the pro-euro camp would win. By the weekend, the result was that Sweden would keep the krona.
   When I argued with some pro-Brexiters about this, they, like most pecksniffians, demanded I check my facts. I didn’t have to: I have a memory that goes back further than one month, and unlike them, I know what went on in their own backyard because, in 2003, I kept my eyes open.
   I should point out that I am not summarizing all Brexiters as dimwitted Britons who wanted Johnny Foreigner to go home. I count among my closest friends someone who voted leave, and for very substantial, well thought-out reasons. He felt that the European Union had become an unwieldy bureaucracy which benefited Britain little, and while I felt the benefits outweighed the detriments, I respect his opinion and his vote. At least it was considered, and at least it wasn’t one that was based on the ramblings and rants of Farage, Johnson, Gove et al.
   Appealing to nationalism, as the likes of Farage did, is a cheap trick in politics: it stirs a wave of nostalgia, and people might love chanting at how great their nation is, but it doesn’t address the core issues that put them into the poo to begin with. Of course the UK has a great deal to be proud of; but like many countries (including ours) the globalist technocratic agenda are what have made things untenable for a growing part of the population. It’s why real wages haven’t risen yet certain corporations profit aplenty; it’s why we work more hours today than we ever did, despite futurists of a generation ago predicting all this leisure time that we would all have thanks to automation.
   But is retreat the right thing to do? The remain camp believes that it wasn’t: to influence Europe you must be in Europe. It wasn’t that long ago that not being in Europe was fatal to British exports—the failure of the British motor industry, for instance, was in part due to its late recognition that the UK needed to be part of the EEC or, at least, produce vehicles there. Globalization’s positives should be the free movement of people and of capital; and economic union to permit that greater freedom seems a sensible thing to pursue, not to run away from. The trick is how to make this work for everyday people, the growing number who are impacted by globalist forces; once there were few, now few escape them. It is, then, the role of government to either protect those who are most vulnerable, to champion (either through private enterprise or on its own accord) real innovation and industry that can create jobs, and to cut through the BS where both public and private enterprise simply reinvent the wheel from time to time, putting lipstick on the bulldog.
   I am ambivalent about it because I’ve seen our own governments, National and Labour, be particularly weak when it comes to dealing with globalization, succumbing to foreign takeovers and allowing the little guy to be run over. The deals haven’t been good for New Zealand in many respects, a small country that believes in its place in the first world but which can be deluded about this very fact. Our economy just isn’t that solid to take it on the chin. Look at our banks, mostly foreign-owned and more unreliable than ever: remember how 40 years ago cheques would take 24 hours to clear? Yet now our computerized systems take three to five working days? Insiders tell me this is the consequence of less reliable Australian systems being foisted upon us; so much so that we have a wire transfer that has been taking weeks, and no one knows where the money has gone. Just how do you misplace tens of thousands of dollars? Why do we assume Australian bankers are smart enough to answer? And those who question such agenda don’t get much truck in a media landscape also dominated by foreigners: I’m looking at one newspaper publishing group at the least. The ways of the big countries are not always the best—yet somehow the powers-that-be in this country have been hoodwinked by this consistently since 1984. I can’t understand it, and my initial reaction when there is such a lack of logic is to follow the money.
   Brexit has made me refine my thinking: I might not like a system where New Zealand’s the little player that doesn’t benefit from a level playing field, but at the same time I believe we need to find ways to influence the globalist game for the better. We love looking at Scandinavian countries because of their comparable size. They may have higher taxes but at the same time they don’t seem to balk at innovation for the greater good; they believe in the freedom of movement of capital and of people, and, despite their general humility, they actually aren’t afraid of creating global companies that take on the rest of the world. Look at Vattenfall or Statoil. We might not like Statoil for what it wants to do to our own environment, but we do have to ask what our equivalent is. We lost our lead in hybrid cars, which we held for most of the 1980s, but it’s an example of what we can do when government and private enterprise cooperate on something that is future-oriented. What’s the next big thing? Is it renewable energy tech that we can export? There are companies here already doing frictionless exports, and more need to be encouraged. Government shouldn’t try to create groups of them or force mergers upon them; that can be left to the market. But there needs to be a vision or a direction that we take to create a new brand for our country where people naturally think: innovation for the greater good = New Zealand. And, maybe, to go with that, a fairer version of globalization can emerge, certainly one that is not coloured by the next quarterly result demanded by Wall Street.
   Yes, there is some national fervour involved here, too, but applied correctly, it won’t be false flag-waving that’s dependent on the past. I’m all for being proud of your country when the victories are real and measurable—like on the sporting field. There it’s real, and it’s often about the next game or the next season: it’s future-oriented, too. With Brexit, I can’t see the vision; and the most visible foreigner among this, the Turkish-American politician, Boris Johnson, hasn’t communicated one that I can discern.
   And maybe this confusion is the opportunity we need for New Zealand.
   After the UK abandoned the Commonwealth markets in favour of one right next door, our country found new export markets, so much so that the UK accounts for 3 per cent today. Even in 1973, when it was 40 per cent, it had been falling consistently for half a decade, if I recall correctly, and the notion that Britain would reach back out toward the Empah for trade is fanciful at best.
   Being someone who has enjoyed looking at world history play out through maps, ever since I discovered a book on the subject as a third former at Rongotai College, it hasn’t escaped my thoughts that this is a further retreat for the UK in terms of its global influence.
   So who’s on the rise? It might be us. The centre of the global economy has been shifting eastward in recent times and we’re well placed to take advantage of it. We’re part of the Anglosphere so we bridge the past, where it was the dominant global culture, with those trading partners who might be on the horizon. But it has to be real. We’re nimble enough, and I can’t see why we’ve been so fascinated with apeing the US and the UK for so long. Once again we need to set our own direction: we have a culture that’s ready for it with a greater sense of identity than we’ve ever had. I just wonder if we have a government, local or national, courageous enough to embark on this.

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Posted in branding, business, China, culture, globalization, marketing, New Zealand, politics, social responsibility, Sweden, UK | No Comments »


An old slant for Labour

08.06.2016

I noticed this on April 28 and Tweeted about it, tagging the New Zealand Labour Party at the time. It still hasn’t been fixed as of today. That’s supposedly Commercial Type’s Stag Bold Italic in the headline, but someone has slanted the italic. Is this a signal that Labour leans to the right more than it’s letting on? Did someone say 1984?

   Still, Stag is a far more inspired, and typographically appropriate, choice than the Futura used by our present government’s political party, after years of Gill Sans. Interestingly, I seem to recall the Labour of Bill Rowling having Futura Italic in its logotype. If only modern-day Labour could get its italic displaying correctly.
   Good typography wins votes. I should know.

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Posted in design, internet, marketing, New Zealand, politics, typography | No Comments »