Category Archives: economics

A Letter from 2030, The next nine years will be a time of resilience, rebuilding and reinvention (PATAGONIA)

In hindsight, we were lucky. Many creatures of this Earth didn’t live to see 2030. Humans could not save the animals we’d damned, but at least you and I are still here, right? Some people, though, couldn’t live with the destruction and chaos around them. Others had little choice when death came knocking. I remember the last time I saw you; we sat on your new deck, thinking of the world your sweet, curly haired boy was entering. A world plagued with death—deaths that lie at the feet of elected officials who ignored and denied the many crises we faced, and who took every penny the fossil fuel industry gave them. Read more (Patagonia)

Research: We’re Losing Touch with Our Networks

During the pandemic, we’ve shifted our attention away from strangers toward strengthening relationships with family, friends, and our closest colleagues. If you think of your network as a series of six concentric circles that decrease in emotional intensity as you move toward the larger outer rings, the innermost circle contains the five or so people you turn to in times of severe emotional and financial distress. The outermost ring is made up of the roughly 1,500 acquaintances or weak ties whom you would recognize by sight. When we compared the personal and work networks of hundreds of individuals pre- and post-pandemic, we found that the size of the outermost ring has shrunk. But that shrinkage was accompanied by a strengthening of our closest relationships. Read more (HBR)

is Deliveroo killing restaurant culture?

“In a world where consumers want more, better and faster, we think Deliveroo is doing a good job,” concluded a report by the private investment bank Berenberg earlier this month. Plenty of people who make money from money are betting that Deliveroo is on a long-term path to profitability, even if its current set-up pushes the company further into the red with every order. “We truly believe we are still getting started,” declared Deliveroo’s founder, Will Shu, in a letter to prospective shareholders. “Join us on the journey.” But what is that journey’s ultimate destination? And what will the implications be – for the way we eat, the livelihoods of those who feed us and the future of our neighbourhoods – once we arrive? Read more (The Guardian)

Domestic Luxury Shopping is Here to Stay in China — To the Dismay of Overseas Retailers

The impact of the shop-near-home trend has been noteworthy. According to the Wall Street Journal, the China unit of LVMH Moët Hennessy Louis Vuitton SE — owner of Louis Vuitton, LoeweDior, and many others — saw 65% growth year-over-year in the second quarter of 2020, while Kering SA, whose portfolio includes Gucci and Bottega Venetarecorded a 40% increase in revenue in China during the same period. Currently, demand at brick-and-mortar stores is so strong that Gucci and Hermès stores in Shanghai have limited shopper visits to avoid overcrowding. China was virtually the only bright spot for both LVMH and Kering, as global revenue for the two luxury giants in the second quarter of the year plummeted 38% and 43.7%, respectively. Read more (Jing Daily)

What Happens to Luxury if China Stalls?

China has emerged as the economic winner of the COVID-19 pandemic, and analysts predict that gains made in 2020 — when it was the only major economy to record growth — have set it on a path to become the world’s largest luxury market by 2025. At that point, Chinese consumers are predicted to make up nearly 50 percent of all luxury purchases globally, according to a November report from Bain & Co.  

But could anything slow the runaway train that is China’s economy? Is there anything that would not make this a reality? Read more (Jing Daily)

Scorsese vs Netflix: can streaming regain its artistic integrity?

Today, in contrast, “the art of cinema is being systematically devalued, sidelined, demeaned, and reduced to its lowest common denominator, ‘content’,” he argues. “‘Content’ became a business term for all moving images: a David Lean movie, a cat video, a Super Bowl commercial, a superhero sequel, a series episode. It was linked, of course, not to the theatrical experience but to home viewing, on the streaming platforms that have come to overtake the moviegoing experience, just as Amazon overtook physical stores.” Read more (NME)

The Movie Industry Holds Its Breath As New York Reopens Theaters

“Movie theaters act as a curator,” he says. “If it’s good enough to be in a movie theater, you have to pay attention. Whereas you put on your streaming platform and you spend half-an-hour going through the screen going ‘what do I want to watch.’ The movies are not there in the culture in the same way when they’re just on your TV.” Read more

Comparing Luxury Investment Around the World

Unlike traditional investments in financial assets, luxury goods can be difficult to value if one does not have an appreciation for their form. A rare painting, for example, does not generate cash flows, meaning its value is truly in the eye of the beholder.

To gain some insight into the market for luxury goods, this infographic takes data from Knight Frank’s 2021 Wealth Report to compare the preferences of nine global regions. Read more (Visual Capitalist)