Posts tagged ‘Sweden’


Trading identities in the 2010s: when corporate branding and personal branding adopt each other’s methods

14.10.2017


Above: Brand Kate Moss was probably seen by more people when the model collaborated with Topshop.

In 1999, the late Wally Olins sent me his book, Trading Identities: Why Countries and Companies are Taking on Each Other’s Roles, a fine read published by the Foreign Policy Centre that argued that countries were trying to look more corporate, adopting the practices of corporate branding. Conversely, as corporations gained more power and their need to practise social responsibility increased, they were adopting the ideas from nation branding. There was an increasing amount of this swapping taking place, and the 21st century has seen the trend continue: more countries have finely tuned nation brands and guidelines on how to use them, while many corporations are trying to look like good corporate citizens—Dilmah and Patagonia come to mind with their work in building communities and advocacy.
   We’ve been discussing at our firm another area where a similar switch has been taking place: that of corporate brands and personal brands. Personal branding is a relatively new development, with (in my opinion) Managing Brand Me the best work on the subject, authored by the late Thomas Gad with his wife Annette Rosencreutz, dating from 2002. (Thomas, of course, founded Medinge Group.) Managing Brand Me features an excellent break-down of the four dimensions involved (functional, social, mental, spiritual) in any good personal brand that still hold true today. They were well ahead of their time given that they had written their book long before selfies became the norm, and before people were being hired by companies as ambassadors based on their Instagram or Twitter followings.
   Those spokespeople are practising their brands almost haphazardly, where some are getting to the point that they cannot be sustained. Others are balancing authenticity with commercial demands: we know that Kendall Jenner probably doesn’t drink Pepsi, and no one wants to be seen to sell out their values. Nevertheless, there is a group of people mindful about their personal brand, and it’s only a matter of time before more begin taking on the trappings of corporate brands: inter alia, guidelines on how theirs is to be used; what products can be endorsed by that brand; how it can be differentiated against others’. Kate Moss may well be one example with a recognizable logotype that appears on products that have her seal of approval. (If I can be slightly macabre, the estates of Elvis Presley, Steve McQueen and Audrey Hepburn all think carefully on how each celebrity can be used to endorse products today; while lacking symbols or logotypes, their faces themselves are more than a substitute. With technology democratizing, it is no surprise that living and less iconic people might adopt similar ideas.)
   What of companies? Many now find themselves on an equal footing, or even a disadvantage, to personal accounts. The biggest companies have to fight for attention on social networks just like some of the top personal accounts in the world, and they cannot succeed without speaking to the audience in a personal fashion. A corporate account that reposts publicity photographs would gain little traction except from fans who are already sold on the brand through non-social media; and there is some wisdom in assuming that millennials do not possess the same level of brand loyalty as earlier generations. They’re on the hunt for the best product or service for the price and adopt a more meritorious approach, and among the things that will draw them in will be the values and societal roles of the company. Therefore, there has to be a “personality” behind the account, aware of each of Thomas and Annette’s Brand Me dimensions.
   It has not escaped me that both Lucire’s fashion editor Sopheak Seng and I do better than the magazine when it comes to social media interaction—getting likes and comments—because we’re prepared to put our personalities on the line. The automated way Lucire shares articles on Twitter, for instance, hasn’t helped build its brand there, something which we’re remedying by having team members around the world post to Instagram for starters, giving people a glimpse of our individual experiences. The images might not all look polished as a result, but it is a step toward fulfilling the four dimensions. It is a quest to find a personal voice.
   In the wider media game, this is now more vital as news has become commodified, a trend that was first expressed in the 1990s, too. Perhaps those authors saw that most media outlets would be getting their news from a more concentrated base of sources, and demand on journalists to be first and fastest—something not helped by a society where speed is valued over accuracy—meant that whomever controlled the sources could determine what the world talked about. Global companies want everyone to see when they’re involved in an event that a good chunk of the planet is likely to see; in L’Oréal Paris’s case it’s the Festival de Cannes. If every fashion publication has its eyes on Cannes, then what differentiates that coverage? What stamp does the media outlet’s brand place on that coverage? Is there a voice, a commentary, something that relates to the outlet’s role in society? Should it communicate with its best supporters on social networks?
   Lucire does reasonably well each year at Cannes with its coverage, probably because it does communicate with fans on social networks and alerts them to exclusive content. The rest of the time, it doesn’t do as well because as a smaller publication, it’s relying on those same sources. In 1998 we would have been the only English-language online publication specializing in fashion that talked about each H&M launch; in 2017 many fashion publications are doing it and our share of the pie is that much smaller. Individuals themselves are sharing on their social networks, too. This is not a bad thing: others should have the means to express themselves and indulge their passion of writing and communicating. Exclusivity means traffic, which is why we do better when we cover something few others do.
   However, I recently blogged that Google News has shifted to favouring larger media players, disincentivizing the independents from breaking news. It comes back to needing a distinctive voice, a personal brand, and while we still need to rely on Google News to a degree, that voice could help build up new surfing habits. The most successful bloggers of the last decade, such as Elin Kling, have done this.
   These are the thoughts milling around as Lucire heads into its 20th anniversary this month, and we reevaluate just what made us special when the publication launched in 1997. Those values need to be adapted and brought into 2017 and beyond. But there are wider lessons, too, on just where corporate branding and personal branding are heading; this post did not set out to discuss fashion media. It’s not a bad place to start our inquiry, since fashion (and automobiles) are where a lot of brand competition takes place.
   Indeed, it signals to me that in the late 2010s, companies need to do well as corporate citizens and have a personal voice on social media, ideas that build on my 2013 paper for the début issue of Journal of Digital and Social Media Marketing (where I discussed brands in the age of social media and put forward a model of how to manage them) as well as Thomas and Annette’s earlier research. It’s the next stage of where branding practice could go—JY&A Consulting is primed, and we’re prepared to let those thoughts loose on Lucire and our other projects. The book of the blog, meanwhile, is the next target. What a pity I’m not in Frankfurt right now.

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Posted in branding, culture, France, globalization, internet, marketing, media, publishing, Sweden | 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 | 4 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 »


Bye to the US news app that ranks the Steven Joyce dildo incident above Martin Crowe’s passing

04.03.2016

I’ve just switched from Inside, the much vaunted news app from entrepreneur Jason Calacanis, to Wildcard as my principal news app on my phone. I never got to use Circa (which I understand Jason was also behind), which sounded excellent: by the time I downloaded it, they had given up.
   But we all need news, and I don’t like the idea of apps that are from a single media organization.
   Inside seemed like a good idea, and I even got round to submitting news items myself. The idea is that the items there are curated by users, shared via the app. There was a bit of spam, but the legit stuff outnumbered it.
   However, I can’t understand the choices these days. A few items I put in from Radio New Zealand, Māori Television and The New Zealand Herald were fine—stories about the flag and the passing of Dr Ranginui Walker, for instance—but none of the ones about the passing of Martin Crowe, possibly of more international interest, remained.
   There were other curious things: anything from Autocar is summarily rejected (they don’t even appear) while I notice Jalopnik is fine. When it comes to cars, this is the only place where the publication with the longest history in the sector is outranked by a web-only start-up, whose pieces are enjoyable but not always accurate. The only car piece it accepted from me was about Tesla selling in Indiana, but Renault, Volkswagen, Lamborghini, Porsche, Aston Martin and other manufacturers’ news didn’t make it. This I don’t get. And I like to think I know a little bit about cars, in the week when Autocade hit 8,000,000 page views.
   Now, if this is meant to be an international app, downloadable by everyone, then it should permit those of us in our own countries to have greater say in what is relevant to our compatriots.
   Visit the New Zealand category, and you see a few items from yours truly, but then after that, they are few and far between: the Steven Joyce dildo incident, for example, and you don’t have to scroll much to see the Otago car chase being stopped by sheep last January. A bit more has happened than these events, thank you. No wonder Americans think nothing happens here.



According to Inside, these news items—separated only by one about Apple issuing a recall in our part of the world—are far more important to users following the New Zealand category than Martin Crowe’s death.

   The UK is only slightly better off, but not by much. I notice my submission about Facebook not getting away with avoiding taxes in the UK vanished overnight, too.
   News of the royal baby in Sweden wasn’t welcome just now. Nor was the news about the return of one of the Hong Kong booksellers, but news from Bloomberg of a luxury home on the Peak, which I submitted last month, was OK. Lula’s questioning by police has also disappeared (admittedly my one was breaking news, and very short), though Inside does have a later one about his brief arrest.
   Yet to locals, the rejected ones are important, more important than Gladys Knight singing to a cop or a knife on O. J. Simpson’s estate (which have made it).
   This is a very American app, and that’s fine: it’s made by a US company, and I’m willing to bet most of its users are American. However, the “all” feed, in my view, should be global; those who want news tailored to them already have the choice of selecting their own topics. (It’s the first thing the app gets you to do after signing in.) And if some fellow in New Zealand wants to submit, then he should have the same capacity as someone in the US. After all, there are more of them than there are of us, and I hardly think my contributions (which now keep vanishing!) will upset the status quo.
   Or does it?
   I mean, I have posted the odd thing from The Intercept about their country’s elections.
   Whatever the case, I think it’s very odd for an app in the second decade of the century to be so wedded to being geocentric. I can understand getting stuff weeded out for quality concerns—I admit I’ve posted the odd item that is an op-ed rather than hard news—but this obsession to be local, not global, reinforces some false and outdated stereotypes about the US.
   It’s like Facebook not knowing that time zones outside US Pacific Time exist and believing its 750 million (as it then was) users all lived there.
   My advice to app developers is: if you don’t intend your work to be global, then don’t offer it to the global market. Don’t let me find your app on a Chinese app centre. Say that it’s for your country only and let it be.
   Or, at least be transparent about how your apps work, because I can’t find anything from Inside about its curation processes other than the utopian, idealistic PR that says we’re all welcome, and we all have a chance to share. (We do. Just our articles don’t stay on the feed for very long.)


Wildcard has an attractive user interface, and its mixture of news is more appealing, especially if you want more depth.

   Admittedly, I’ve only been on Wildcard for less than a day but I’ve already found it more international in scope. It also has more interesting editorial items. It is still US-developed—east coast this time, instead of west coast—but it supplements its own news with what’s in your Twitter feed. It’s not as Twitter-heavy as Nuzzel, which I found too limited, but seems to give me a mixture of its own curation with those of my contacts. The user interface is nice, too.
   I’m not writing off Inside altogether—if you’re after a US-based, US-centric news app, then it’s probably excellent, although I will leave that decision to its target market. I can hardly judge when dildos matter more to its users than the greatest cricket batsman in our country.
   For me, Wildcard seems to be better balanced, it doesn’t make promises about public curation that it can’t keep, and I’ve already found myself spending far more time browsing its pieces than the relatively small amount that seem to remain on Inside. It is still a bit US-biased in these first 24 hours, probably because it hasn’t taken that much from my Twitter contacts yet. There seems to be more news on it and I’m getting a far better read, even of the US-relevant items. I’m looking forward to using it more: it just seems that much more 21st-century.

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Posted in business, China, culture, globalization, Hong Kong, interests, internet, media, New Zealand, politics, publishing, Sweden, technology, UK, USA | 1 Comment »


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 är glada för det engagemang som finns för IKEA och att det finns communities runt om i världen som älskar våra produkter lika mycket som vi gör.
   Vi känner ett stort ansvar mot våra kunder och att de alltid kan lita på IKEA. Det är viktigt för oss att värna om hur IKEA namnet och varumärket används för att kunna behålla trovärdigheten i varumärket. Vi vill inte skapa förvirring för våra kunder om när IKEA står bakom och när vi inte gör det. När andra företag använder IKEA namnet i kommersiellt syfte, skapar det förvirring och rättigheter går förlorade.
   Därför har Inter IKEA Systems, som äger rättigheterna till IKEA varumärket, kommit överens med IKEA Hackers om att siten från slutet av juni 2014 fortsätter 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 Nestlé 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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Monica Z now out on DVD and Blu-ray

18.01.2014

Monica Z, the bio-pic about the late Swedish jazz singer starring Edda Magnason, is now out on Blu-ray and DVD, as of earlier this week.
   I learned about the movie not through my Swedish contacts—they were messaging me only when the film was in the cinemas—but when Edda appeared at Allsång på Skansen in 2013 singing ‘Gröna små äpplen’ with a Monica Zetterlund hairstyle and 1960s dress. It didn’t take long to do a bit of surfing after discovering this:

   Purists (like me) will say she’s not quite as good as Monica but of the covers, this is still really good. I listened to the soundtrack ad nauseam on Myspace (really) but if I return to Scandinavia in 2014, I might pick up the DVD in person.
   Just to make this post more complete, and for all lovers of Swedish jazz, here’s my favourite Monica number, as performed by Edda. I had only seen this on the full Allsång telecast prior. (You need to have a break in the midst of a political campaign.)

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Posted in culture, interests, Sweden, TV | No Comments »


A farewell to Sir Paul Callaghan, and the next step for our innovators

24.03.2012

When I attended Sir Paul Callaghan’s talk at the Wellington Town Hall last September, I felt vindicated. Here was a man who was much better qualified than me to talk about economic development, effectively endorsing the policies I ran on in 2010. But not being political, he was a great deal more persuasive. Since then, I’ve noticed more New Zealanders become convinced by Sir Paul’s passion—and wake us up to the potential that we have in this nation.
   This great communicator, this wonderful patriot, this sharpest of minds, passed away today after a battle with colon cancer.
   I wrote on Facebook when I heard the news that the best thing we can do to honour Sir Paul was to carry on his legacy, and to carry out the dream he had for making New Zealand a better, more innovative nation.
   Sir Paul wasn’t afraid of tall poppies. He knew Kiwis punched above their weight, and wanted to see more of that happen.
   All those tributes today saying his passing is a great loss to the nation are so very accurate—and I hope we’ll continue to see his dream realized.

Sir Paul Callaghan had a vision, but at the more micro level, it’s important to get a grasp on what the market will bear. There is a fine line, of course, between testing a market and relying too much on a rear-view mirror, and Jenny Douché’s new book, Fool Proof, addresses that, with case studies featuring some very successful New Zealand businesses, including No. 8 Ventures, Phil & Ted’s, Cultureflow and Xero. She stresses dialogue and engagement as useful tools in market validation, and she’s so passionate about the importance of her work that she’s donated copies to 200 organizations, including business incubators, economic development agencies, business schools and chambers of commerce nationally. Find out more at foolproofbook.com.

A Reuter story today talks about Sweden’s growing inequality in the last 15 years—something I’ve certainly noticed first-hand in the eight-year period between 2002 and 2010.
   We often aspire to be like Sweden, but much of that aspiration was based on a nation image of equality and social stability. Certainly since the mid-2000s, that hasn’t been true, as Sweden embarked on reforms that we had done in the 1980s, with selling state assets and cutting taxes.
   Inequality, according to the think-tank quoted in the article, has risen at a rate four times greater than that of the US.
   The other sobering statistic that came out earlier this year was that Sweden has the worst-performing economy in Scandinavia.
   None of this is particularly aspirational any more, and perhaps it brings me back to the opening of this blog entry: Sir Paul Callaghan.
   Given that we had the 1980s’ economic reforms, but we have scarcely seen the level playing-field promised us by the Labour government of that era, our best hope is to innovate in order to create high-value jobs. On that Sir Paul and I were in accord. Let’s play in those niches and beat the establishment with smart, clever New Zealand-owned businesses—and steadily achieve that that level playing field that we’re meant to have.
   It’s about cities creating environments that foster innovation and understand the climate needed for it to grow, which includes formally recognizing clusters, identifying and funding them, and having mechanisms that can ensure ideas don’t get lost beyond a mere discussion stage—including incubator and educational programmes. The best ideas need to be grown and taken to a global level.
   Ah, I hear, many of these agencies already exist—and that’s great. Now for the next step.
   It’s also about cities not letting politics get in their way and understanding that the growth of a region is healthy—which means cooperation between civic leaders and an ability to move rapidly, seizing innovation opportunities. It means a reduction in bureaucracy and the realization that much of the technology exists so that time spent on admin can be kept to a minimum (and plenty of case studies exist in states more advanced than us). Right-brained people thrive when they create, not when they are filling in forms. The streamlining of the Igovt websites by the New Zealand Government is move in the right direction.
   We know what has to be done—especially given how far down we are based on the following graph from the New Zealand Institute:

   As the Institute points out, many of the right moves are being made, and have been made, at the national level. But it is also aware that an internationalization strategy is part of the mix—the very sort of policy I have lived by in my own businesses. And this begs the question of why there have not been policies that help those who desire to go global and commercialize their ideas at a greater level. That’s the one area where we need to champion those Kiwis who have made it—Massey’s Hall of Fame dinners over the last two years celebrate such New Zealanders in a small way—and to let those who are at school now know that, when they get into the workforce, that it’s OK to think globally.
   If we’re wondering where the gap is, especially in a nation of very clever thinkers, it’s right there: we need to create a means for the best to go global, and make use of our million-strong diaspora, in very high positions, that Sir Paul pointed out in his address. Engagement with those who have made it, and having internationalization experts in our agencies who can call on their own entrepreneurial experiences, would be a perfect start.

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Stefan Engeseth’s next book, Sharkonomics: in business, what can we learn from sharks and their survival?

22.02.2012

When I talked about Nicholas Ind’s book, Meaning at Work, a few weeks ago, I said there were two titles that I wanted to mention.
   The second is by my friend Stefan Engeseth, who has followed up some very innovative titles—Detective Marketing, One and The Fall of PR and the Rise of Advertising—with Sharkonomics.
   The premise is simple: how have sharks survived millions of years, and can we learn any lessons from them for business?
   I’ve been involved with Sharkonomics since Stefan pitched the idea, and I’ve had word of him heading down to South Africa to dive with the beasts.
   I’ve dived with them, too, many years ago, except mine weren’t as treacherous as the ones he confronted.
   A few of us, in endorsing his book, couldn’t help but use a bunch of shark puns. Don’t let them put you off.
   He wants to get further word out and the first 100 people to do so will get the book for free (details here). You can read a brief summary about it here. It’s published by Marshall Cavendish, the people who published One. Also head to Sharkonomics’ Facebook page—there’ll be more information on the upcoming launches and some of the great ideas Stefan has planned for them.

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Posted in business, marketing, Sweden | 3 Comments »


Endgame: Saab files for bankruptcy

19.12.2011

If you’re a car nut, then you won’t be mourning, too much, the passing of former Czech president Vaclev Hável. Or, for that matter, Kim Jong Il. It’s Saab that has finally died as it files for bankruptcy after GM, which still licenses key technologies to the Swedish firm, vetoed its sale to Zhejiang Youngman Lotus Automobile.
   GM has a JV with SAIC, the Shanghai automaker, and believes that if those technologies were to find their way into the hands of a small upstart Chinese rival, it wouldn’t be to its advantage. Saab, which had been teetering on collapse since March, when it first stopped production, decided to call in the receivers today.
   GM had issued a statement at the weekend, saying, ‘Saab’s various new alternative proposals are not meaningfully different from what was originally proposed to General Motors and rejected … Each proposal results either directly or indirectly in the transfer of control and/or ownership of the company in a manner that would be detrimental to GM and it shareholders. As such, GM cannot support any of these proposed alternatives.’
   Swedish Automobile, the parent company of Saab, responded, ‘After having received the recent position of GM on the contemplated transaction with Saab Automobile, Youngman informed Saab Automobile that the funding to continue and complete the reorganization of Saab Automobile could not be concluded.
   ‘The Board of Saab Automobile subsequently decided that the company without further funding will be insolvent and that filing bankruptcy is in the best interests of its creditors.’
   GM, in the two decades in which it owned Saab, failed to turn a profit with the brand. However, its parting gift, the new 9-5 saloon, was heralded by some fans as a return to form for the company. Hopes were high for it, and the 9-4X crossover, helping Saab back into a position of strength.
   It’s easy to do a post mortem now, but the failure could be levelled at GM’s misunderstanding of the Saab brand. It may have been sensible to shift Saab models on to Opel platforms for economies of scale, but, in doing so, the cars lost some of their character. The lowest point was when GM created a rebodied Subaru Impreza and called it the Saab 9-2X, which fooled few buyers—one has to remember that Saab buyers tended to be well educated. Saab never fitted well in a business which targeted the mainstream: its own cars were always bought by people who enjoyed their quirkiness and the fact they did not follow convention.
   GM only understood this when it was far too late, as the last two models demonstrated.
   When GM itself had to file for bankruptcy protection in the US in the late 2000s, Saab, Pontiac, and Saturn were the victims.
   When Saab was sold to Spyker, its boss Victor Muller invested heavily into the business to try to turn it around—but he, and other investors, would have lost tremendously today. Saab fans will likely remember Muller favourably—after all, he put his own money into the business and shared his supporters’ passion—but in a world where break-even points are at hundreds of thousands of units, Saab’s 30,000 in 2010 were never going to be enough. MG Rover Ltd. collapsed with 2004 sales of 115,000 in 2005.
   As hindsight is 20-20, Saab and Youngman might be accused of wishful thinking, believing it to be unencumbered by GM’s IP rights. However, the American business held the right of revocation over key licences that make up Saab’s 9-3, 9-4X and 9-5 models.
   It’s not the first time intellectual property has got in the way of car businesses. One of the most famous examples was BMW arranging with Rolls-Royce trade mark owner Vickers plc to license the brand for motor cars, as Volkswagen negotiated to buy the Rolls-Royce Motors business. And all Volkswagen really had to do to find this out was visit the Rolls-Royce website home page at the time: right at the bottom, stated clearly, was the message that the Rolls-Royce brand was licensed from Vickers plc.

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Posted in branding, business, cars, China, design, marketing, Sweden, USA | 3 Comments »


Panos Emporio: dare to be human

10.10.2011

Panos Emporio

We weren’t responsible for the layout or photography, but our contribution here is in the tagline, ‘Dare to be human’.
   In my 12-year friendship with Panos Papadopoulos, the designer behind Swedish swimwear (and now clothing) label Panos Emporio, we’ve often worked on marketing tasks. The most recent one: come up with a tagline that encompasses the Panos Emporio brand.
   The term ‘Dare to be human’ has emerged elsewhere (as I discovered after coming up with it), though to my knowledge not in this industry or as a tagline, and since the campaign is largely focused on Scandinavia, it doesn’t appear to have any conflict.
   The story is fairly simple: mixing the vision of the head of the company with the accurate external perceptions, and coming up with something that all audiences can agree on.
   We had done some exploratory work on the philosophy of Panos Emporio earlier in the year and this was an extension of that.
   Our brand research has usually shown that an accurate tagline is more effective, in communicating a brand internally and externally, than any mission statement, and one that can serve a company in the long term is better still.
   Panos’s thoughts were that he liked to push the envelope when it came to his swimwear designs—that much is a given, and accepted by his customers—and his use of PR in Sweden over the years suggested as much. Where we align even more is our shared belief in humanitarianism, and the idea that good people can become anything they wish, and should have the opportunity to do so. Over the years we’ve discussed some great programmes that can help young people, and trying to cement these ideas, and many other ideas of things we’d like to do to advance our planet. If you look back across the 25 years of the label, Panos Emporio was often pioneering in its designs and publicity programmes, often shocking the sector, and earning Panos a celebrity status (including an episode of the Swedish version of Secret Millionaire).
   External audiences will always come back to us to tell us the comfort in Panos’s designs first, followed by their appreciation of the designs themselves, so there was an intersection with the “human” aspect here. It was taking that with humanitarianism and social responsibility, and blending it with the envelope-pushing.
   ‘Dare to be different’ is trite, so it really was down to changing the last word. (I am simplifying the process because there were many others that were rejected.) It tested well, and the first ad with the new tagline will break this quarter.
   I hope it’ll stay with the firm for many years to come. I think it encompasses everything Panos tries to say with his work.

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Posted in branding, business, marketing, New Zealand, social responsibility, Sweden | No Comments »