Rishi Taparia - Issue #58
This week we explore Instagram’s standalone shopping app, Nike’s Kaep ad campaign, Lego’s reinvention, Uber getting into the wallet business, Jack Ma retiring (and then unretiring) and more. Enjoy!
Commerce
Instagram is building a standalone app for shopping
I’ve talked before about the potential Instagram has to be the killer social shopping app, and this week the company seemed to take the biggest steps it’s made in that direction. Instagram Shopping is a new app in development at Facebook. The app — which may be called IG Shopping — will let users browse collections of goods from merchants that they follow and purchase them directly within the app, Now, while I understand the desire to not clutter the main feed, I feel the whole point of ‘social shopping’ is to be able to transact while in the 'social’ setting. Getting users to download an entirely new app seems silly, but how it rolls out remains to be seen.
J.Crew Alters Amazon Approach, Will Sell Some Items on the Site
It seems sooner or later everyone caves. J.Crew has decided to sell clothes on Amazon. Now, while the company bets the potential benefits outweigh the risks of partnering with the retail industry’s biggest foe, I’m guessing Amazon comes out ahead in this deal. More brand data + more user behavior data + better algorithms = stronger Amazon.
Nike’s online sales jumped 31% after company unveiled Kaepernick campaign, data show
This week Nike made headlines following the launch of a controversial ad campaign featuring Colin Kaepernick, an NFL quarterback who begun kneeling during the national anthem at the beginning of football games in an effort to draw attention to the injustices and inequalities being perpetrated against men and women of color around the country. Nike’s support of Kaepernick sparked protest, with some folks going so far as to burn, cut or throw away their own Nike apparel. Setting aside the obvious (is burning your own stuff the best way to have an impact on what Nike thinks?), would Nike feel the effects of taking a controversial stand in their sales numbers? Well, the answer is yes. Nike’s online sales increased by 31% after the ad campaign hit, based on the same period (post Labor day) in 2017.
Lego wants to completely remake its toy bricks (without anyone noticing)
Lego is one of those brands that, at the mere mention of its name, can simultaneously elicit both heartwarming memories of building your house in the future as well as those of extreme pain, like when you stepped barefoot on a piece of the fence from the house of the future. Lego bricks have barely changed in decades, but the Denmark-based business is working on an update: to eliminate its use of petroleum-based plastics, using entirely plant-based or recycled materials by 2030. Oh and speaking of Lego, check this out!
We’ve built the impossible: a full-sized LEGO Technic @Bugatti Chiron …and it drives! #BuildforReal https://t.co/8YPxk7miGZ
2:32 AM - 30 Aug 2018
Inside Bloomingdale's Permanent Pop-Up
Macy’s-owned Bloomingdale’s is bringing the concept store into the retail store. Following the acquisition of Story, a boutique retailer that created pop-ups which was recently bought by Macy’s, Bloomies is launching its ‘shop-in-shop’ concept. Dubbed “the Carousel” it aims to be a curated, experiential shopping experience that rotates every two months based on a different theme. Don’t expect to see racks of clothes, shoes and accessories because that doesn’t play well with the Instagram crowd this permanent concept is trying to attract.
FinTech
Uber Cash Mobile Wallet Launches
Taking a page out of what seems to be the global ride-sharing playbook (see: GoJek, Grab), Uber has launched Uber Cash, a mobile wallet (and debit card) that allows consumers to pay for services across the Uber ecosystem, including Uber Eats and JUMP Bikes. Not currently available for use outside the Uber network, the incentive Uber is offering is rewards points, hoping users will be stickier.
China Calling
Alipay and WeChat Pay have established themselves as the payments players in China. Now the question is when do both companies turn their sights onto more developed markets, namely the US, Canada and Europe. A lot of regulatory hurdles will need to be cleared in order for the service to be made available and, with such low hanging fruit available in the nearby South and Southeast Asian markets, my bet it is it will be at least a year, maybe two, before efforts are made in earnest.
Going Cashless: What Can We Learn from Sweden’s Experience?
Sweden is expected to become the world’s first cashless society by 2023, where while coins and notes will exist, it will be impractical to use them. A fascinating interview of Jonas Hedman, associate professor at the department of digitalization at the Copenhagen Business School, who believes that becoming cashless is inevitable, not just for Sweden, but for other countries as well.
This is possible in Sweden because even though cash is a legal tender, contract laws have a higher precedence than banking and payment laws here. If a store puts up a sign that it does not accept cash, then you, as a customer, have entered a contract or an agreement with that store that they don’t accept cash. But in other countries, like Denmark for instance, payment laws have higher precedence than contract laws. In those countries, if something is a legal tender, then according to the law a store must accept it. This is one of the key reasons why Sweden is more cashless than other countries — because of its legal framework.
Technology
Jack Ma to unveil Alibaba’s succession plan, paving the way for younger talent to take over
This week the New York Times reported that Jack Ma, founder, former CEO and current chairman of Alibaba (who really does own “Jack” compared to his Twitter and Square counterpart), was going to retire, stepping down from the company this coming Monday, and focus on philanthropic efforts. Well, apparently not so fast! According to the SCMP (a paper which Ma owns no less), Ma will remain executive chairman while a transition plan is carried out. A New York Times report that said he was “stepping down” to “retire” was out of context, and factually wrong, an Alibaba spokesman said.
Random Tidbits
The Mystery of People Who Speak Dozens of Languages
I’ve often imagined what it would be like to speak 7 or 8 languages fluently. I felt that a combination of English, Spanish, French, Mandarin, Arabic, Hindi, Russian, Bahasa Indonesia would allow me to converse of the world. Apparently I wasn’t thinking big enough. This long read is a fascinating look into hyperpolyglots, defined as someone who can speak at least 11 languages, how they think, and how they approach new languages. Amazing stuff.
Why the world is full of buttons that don't work
Have you ever been at a cross walk pushing the pedestrian cross button to seemingly no effect? Or in an elevator pushing door close, but the door seems to close as slow as it normally does? Well, it seems like there’s a reason. Pedestrian crossings, elevator “close door” buttons and office thermostats often don’t do anything – by design.
Quote I’m thinking about: “Time: that is the key. Forget dollars, cowrie shells or gold. The true measure of something’s worth is the hours it takes to acquire it.” Matt Ridley