Tag: Amazon

  • Brands, Activism & Morality

    A while back, someone had joked on Twitter that by 2025, babies will be born outraged. But in 2020, the joke, at least in Indian advertising, is that when the Tanishq brand manager begins to think of a campaign, #BoycottTanishq starts trending. When I was writing the article on brands and empathy for Business Insider, I realised it would need a lot of effort for brands to go beyond signalling.

    However, with inequities becoming even more of a pressing topic, and the expectation from brands to be active participants in society – activism to action, is there an inevitable movement that we will see? And hence, this post on brands through the prism of activism and morality, from the perspectives of a consumer and a brand marketer, and the safety of an armchair.

    “We are living in an era of woke capitalism in which companies pretend to care about social justice to sell products to people who pretend to hate capitalism.”

    Clay Routledge
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  • Provoke the Woke?

    Originally published in afaqs

    “In these unprecedented times”, brands have been making many efforts to stay relevant by inserting themselves into cultural narratives, but it isn’t that easy. In fact, they are increasingly realising that their plans might actually backfire when they provoke the ‘woke’.

    Woke versus Broke

    Nike’s path-breaking campaign in 2018, featuring (American football quarterback) Colin Kaepernick, is now a case study for brands taking a stance on matters of societal relevance. But it also had a relatively lesser-known second order consequence. In 2019, Nike was forced to take sides in the Hong Kong protests.

    When Daryl Morey, general manager, Houston Rockets (a professional basketball team in the US), tweeted his support for the protesters, China gave the National Basketball Association (NBA) a cold stare. The NBA apologised, and Nike gave an assist by pulling its Houston Rockets merchandise from five stores in Beijing and Shanghai.

    It didn’t just end there. Courtesy LeBron James (professional basketball player), with whom Nike has an association worth north of $1 billion. James’s response was that Morey was misinformed, and that “We do have freedom of speech, but there can be a lot of negative things that come with that, too. I don’t think every issue should be everybody’s problem.”

    Nike took a stance, by staying silent. But having taken an unflinching stance in the US on a ‘freedom of expression’ issue, Nike’s response to China reflected poorly on the brand. Unsurprisingly, they got called out by quite a few commentators. Nike had its reasons. Its China business was worth $6 billion, having doubled in five years, even as the US sales remained flat.

    All the world’s staged

    In ‘The Presentation of Self in Everyday Life’, Erving Goffman uses the metaphor of a theatre to describe human interactions. Backstage is where “the performer can relax; he can drop his front, forgo speaking in his lines, and step out of character.” On stage, though, there is a performance to be delivered. These days, thanks to the proliferation of social platforms, the ‘backstage’ is shrinking. We’re always ‘on show’ for some audience – on Instagram/Facebook/LinkedIn/Twitter, and yes, TikTok.

    The same goes for brands as well. Advertising, PR communication, social media content, all ‘performances’ are not just watched, but connected, too, with everything that is known about the brand. Every expression is an impression. Goffman emphasises that the audience is also a part of the performance, and without their tacit agreement, the show would fall apart. Taken together, this means that the option to be selectively woke is disappearing.

    Moments of truth

    Back in 2017, a three-second body wash ad on Facebook, which featured a Black woman turning into a White woman, almost cost Dove years of ‘real beauty’ work. It managed to redeem itself by making some smart moves, both tactically and strategically. Things have become more difficult these days. Because ironically, we are all even more touchy in the era of social distancing! And bad news travels faster. All it takes is one status update.

    Even as (Amazon’s) Jeff Bezos drew applause for “And Dave, you’re the kind of customer I’m happy to lose”, there were questions being asked about the use of Amazon’s tech by police for racial profiling. While resolving that, the company got called out for treatment of workers. It’s not just Amazon. When brands like Uber, Apple, Adidas, etc., take a stance on racism, they are being questioned on the lack of diversity in workforce and leadership. Google and Facebook are even facing employee activism.

    Closer home, #BlackLivesMatter, and celebrities endorsing fairness creams make for an interesting Venn diagram. And, it’s not just celebrities. In the name of ‘Moment Marketing’, many brands have seen their woke moments in the sun rapidly become sunstrokes!

    Don’t get me wrong, this is not to say that brands shouldn’t make topical and relevant narratives a part of their messaging strategy. But in an increasingly polarised world, communication is a full contact sport.

    Dave or Dove, the message is clear, brand communication is no longer a skin-deep game, it is about having skin in the game. As consumers move upwards in the hierarchy of needs, their expectation from brands is moving down – in a direction that’s familiar to marketers. Rather than just creating awareness and interest on things that matter, consumers desire action from brands!

  • vs Amazon

    I had an interesting conversation with a start-up founder recently, one whose business had received multiple rounds of funding and is scaling well. Our chat soon moved into listing on Amazon/other horizontals, and I was reminded of my post from earlier this year – The Shrinking Shelf Life of Ecosystems. I had written how the advantages of dominating the triumvirate – distribution, product and brand – now have a shrinking shelf life.

    I had taken DTC brands as an example of this. But while that is relatively true and there are enough unicorns around, in absolute terms, the distribution might of Amazon and other horizontals continues to be formidable. In this insightful post – Bonsai Brands – Simon Andrews explains that while it might be “easy” to get about $50m, the journey to $100m and beyond gets tougher because efficiencies start maxing out. They could remain viable businesses at a certain scale. (more…)

  • The shrinking shelf life of ecosystems

    One of my favourite business frames in the recent past has been Jeremy Liew’s “When a consumer market is new, distribution wins. As consumers become educated, product wins. When products reach parity, brand wins.”

    Two events happened in the last fortnight that made me reflect more on this. The first was Apple’s power move on Facebook and Google. The second one was here in India – FDI regulations affecting Amazon and Flipkart. Both were shows of influence, and involved distribution.

    It made me realise that the shelf life of this entire distribution-product-brand cycle is shrinking. Disruption is happening far before organisations can take advantage of wins at a previous level. (more…)

  • The Gatekeepers

    To quote Robert Wright from Non Zero: 

    To stay strong, a society must adopt new technologies. In particular, it must reap the non-zero-sum fruits they offer. Yet new technologies often redistribute power within societies. (They often do this precisely because they raise non-zero-sumness- because they expand the number of people who profit from the system and so wield power within it.) And if there is one opinion common to all ruling classes everywhere, it is that power is not in urgent need of redistributing. Hence the Hobson’s choice for the governing elite: accept valuable technologies that may erode your power, or resist them so well that you may find yourself with nothing to govern.  

    I consider the ruling class as gatekeepers because they control the access of the remaining populace to prosperity. Across time, different entities have played the role of gatekeeper by controlling different facets that can change society’s general prosperity. To name a few, religion by controlling behaviour, government (aristocracy to democracy) by controlling the central currency and freedom of all sorts, media by controlling information,  and the wealthy, by the sheer ability to control deployment of capital, and thereby job creation.   (more…)