Posts tagged ‘Malaysia’


Ikea tries to shut down its biggest fan site, showing us how the company thinks within

17.06.2014

In an age of social media, you would think it was the most stupid thing to try to shut down the biggest online community you have.
   Ikea has done just that, on IP grounds, against Ikea Hackers, by getting their legal department to send Jules Yap, its founder, a cease-and-desist letter after her site had been going for eight years. In that time she had sent customers to Ikea, after they were inspired by the new ideas her community had on doing new things with Ikea furniture.
   There are arguments that Ikea could have been liable for any injuries sustained from the “hacks”, but that’s daft. Are we really that litigious as a society, prepared to blame someone for something we ourselves freely chose to do? Ikea has instructions on how to build their furniture, and it’s your own choice if you are prepared to go against them.
   And eight years is an awfully long time to bring a case against someone for trade mark usage, rendering this claim particularly weak.
   There are other Ikea-hacking websites and Facebook pages as well—so it’s even dumber that Ikea would go after one with such a huge community, a website that has an Alexa ranking currently in the 20,000s (in lay terms: it has a huge audience, potentially bigger than that of Ikea’s corporate site itself in Jules’s country, Malaysia).
   Jules says that she has to take down the ads as part of her settlement for being able to retain the site—ads that simply paid for her hosting, which she might not be able to afford to do any more. (Some fans have offered to host for free or provide new domain names.)
   The Ikea Hackers logo doesn’t look remotely like the Ikea one, which would readily imply there was no endorsement by the Swedish company.
   Therefore, Ikea’s statement, on its Facebook, holds very little water.

Vi Àr glada för det engagemang som finns för IKEA och att det finns communities runt om i vÀrlden som Àlskar vÄra produkter lika mycket som vi gör.
   Vi kĂ€nner ett stort ansvar mot vĂ„ra kunder och att de alltid kan lita pĂ„ IKEA. Det Ă€r viktigt för oss att vĂ€rna om hur IKEA namnet och varumĂ€rket anvĂ€nds för att kunna behĂ„lla trovĂ€rdigheten i varumĂ€rket. Vi vill inte skapa förvirring för vĂ„ra kunder om nĂ€r IKEA stĂ„r bakom och nĂ€r vi inte gör det. NĂ€r andra företag anvĂ€nder IKEA namnet i kommersiellt syfte, skapar det förvirring och rĂ€ttigheter gĂ„r förlorade.
   DĂ€rför har Inter IKEA Systems, som Ă€ger rĂ€ttigheterna till IKEA varumĂ€rket, kommit överens med IKEA Hackers om att siten frĂ„n slutet av juni 2014 fortsĂ€tter som en fan-baserad blog utan kommersiella inslag.

Essentially, it uses the standard arguments of confusion, safeguarding its trade mark, and—the Google translation follows—‘When other companies use the IKEA name for commercial purposes, it creates confusion and rights are lost.’
   This can be fought, but Jules elected not to, and her lawyer advised against it. It’s a pity, because I don’t think she received the best advice.
   On Ikea’s Swedish Facebook page, some are on the attack. I wrote:

I would hardly call her activity ‘commercial’ in that the ads merely paid for her web hosting. I doubt very much Jules profited. But I will tell you who did: Ikea. She introduced customers to you.
   While your actions are not unprecedented, it seems to fly in the face of how one builds the social aspects of a modern brand.
   The negative PR you have received from this far outweighs the brand equity she had helped you build. It was a short-sighted decision on the part of your legal department and has sullied the Ikea brand in my mind.

   This won’t blow over. It’s not like politics where people are disinterested enough for all but the most impassioned to retain memory of a misdeed. (For example, does Oravida still mean anything to anyone out there?) Ikea is a strong brand, and mud sticks to them. Some years ago, I met a woman who still had a NestlĂ© boycott in place after the company’s milk powder incidents of the 1960s. And all of a sudden, Ikea’s alleged tax fraud (see here for the SVT article, in Swedish) or the airbrushing of women out of its Saudi Arabian catalogue come to mind. They’re things most people forget, because they go against the generally positive image of an organization or Ingvar Kamprad himself, until there’s some misstep from within that shows that things are rotten in Denmark—or in Sweden, as the case is here. Or is it the Netherlands, where its company registration is?
   Brands are, in particular, fragile. I have maintained for over a decade that brand management is increasingly in the hands of the audience, not the company behind it—something underpinning my most recent academic paper for the Journal of Digital & Social Media Marketing. We all know that there must be as much consistency between the views of the brand held by the organization and those held by the public. The greater the chasm, the weaker the brand equity. Here, Ikea is confirming the worst of its behaviour done in the name of its brand, all for the sake of some euros (I won’t say kronor here)—meaning the consistent messages are not in clever Swedish design, but between what it’s doing in this case and what it allegedly does in Liechtenstein.
   And since the foundation that controls Ikea is technically not for profit, then it’s a bit rich for this company—accused of tax avoidance by calling itself a charity—to be calling Jules’s activities ‘commercial’. It is hypocritical, especially when you bear this in mind:

In 2004, the last year that the INGKA Holding group filed accounts, the company reported profits of €1.4 billion on sales of €12.8 billion, a margin of nearly 11 percent. Because INGKA Holding is owned by the nonprofit INGKA Foundation, none of this profit is taxed. The foundation’s nonprofit status also means that the Kamprad family cannot reap these profits directly, but the Kamprads do collect a portion of IKEA sales profits through the franchising relationship between INGKA Holding and Inter IKEA Systems.

   The tax haven secret trust the companies use is legal, says Ikea, which is why it pays 3·5 per cent tax. I have little doubt that the complex structure takes advantage of laws without breaking them, and Kamprad was famous for departing Sweden for Switzerland because of his home country’s high taxes. The cease-and-desist letter probably is legal, too. And they show you what mentality must exist within the organization: forget the Swedishness and the charitable aspects, it’s all about the euros.

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Posted in branding, business, culture, internet, marketing, Sweden | No Comments »


MH370: the simplest explanations are probably the best

18.03.2014

I have followed very little mainstream media coverage of Malaysian Airlines’ flight 370, apart from National Radio. It seems that not paying attention to mainstream media has made me clearer about what might have happened to it.
   All those way-out theories never held any sway for me. Or the idea about tracking cellphones or some of them clicking through to voicemail being a sign that the passengers were alive: don’t most cellphones do this when you are out of range? These just appeared to have been cooked up through sensationalism, by some media outlets wanting to fill air time or pages. The Malaysian government has managed to mess things up even further so there are meta-stories: stories within the story.
   Only two articles made it on to my Facebook wall, since Facebook appears to be the new Digg. The first was an engineer with a Ph.D., entitled, ‘Flight 370 did not explode; it vanished—really? That is your scientific argument?’. This was written three days after the aeroplane disappeared and kept things rather simple: the plane did not just vanish because that is a scientific impossibility. The writer goes on to explain why the black box signal had not been located, rationally and expertly. She believes that the plane could have gone down for an attempted emergency landing.
   The second was posted today on my wall, via Robert Catto. An experienced pilot, Chris Goodfellow, points out some basic facts on his Google Plus account. Goodfellow begins:

A lot of speculation about MH370. Terrorism, hijack, meteors. I cannot believe the analysis on CNN—almost disturbing.

   He obviously shares my concern at how the media have been filling us with water-cooler junk, and proceeds to have a simpler explanation. He continues (sic):

Two days later we hear of reports that Malaysian military radar (which is a primary radar meaning the plane is being tracked by reflection rather than by transponder interrogation response) has tracked the plane on a southwesterly course back across the Malay Peninsula into the straits of Malacca.
   When I heard this I immediately brought up Google Earth and I searched for airports in proximity to the track towards southwest.
   The left turn is the key here. This was a very experienced senior Captain with 18,000 hours. Maybe some of the younger pilots interviewed on CNN didn’t pick up on this left turn. We old pilots were always drilled to always know the closest airport of safe harbor while in cruise. Airports behind us, airports abeam us and airports ahead of us. Always in our head. Always. Because if something happens you don’t want to be thinking what are you going to do—you already know what you are going to do. Instinctively when I saw that left turn with a direct heading I knew he was heading for an airport. Actually he was taking a direct route to Palau Langkawi a 13,000 foot strip with an approach over water at night with no obstacles. He did not turn back to Kuala Lampur because he knew he had 8,000 foot ridges to cross. He knew the terrain was friendlier towards Langkawi and also a shorter distance.

   Goodfellow theorizes there was a mid-air fire and the plane did not make it, but that it was heading to Langkawi after the emergency broke out.
   Instinctively, this tragedy seems like a deeply unfortunate mid-air accident, and while these other theories might help families believe their loved ones are alive somewhere, I am sorry to say that I believe the two simplest explanations above. Of course, I would like the truth to come forth earlier so, if these experts are right, these families can commence mourning. Taking them through these unlikely possibilities—a hijacking with the plane descending below radar and landing on some Lost island among them—seems cruel and irresponsible.

PS.: Esquire has a complementary editorial on the mainstream media reporting—which apparently now includes a supernatural possibility. I’ve also head one where MH370 supposedly flew perfectly under another aeroplane, thereby evading detection. I’m delighted not to have entertained either first-hand.—JY

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Posted in internet, media | 3 Comments »