Welcome to the Summarin - your weekly dose of commentary and summaries of the most interesting topics from the world of culture, media and commerce. If you are new around here and like what you read, hit the subscribe button below.
In today’s edition (2.4.22):
The rise of the content and commerce fortress
A shift in the DTC model
Metaverse Fashion
Web3-ready product launches
Bridging
We are observing a multitude of shifts in the technological landscape:
Big Tech is focusing on privacy and erecting content fortresses that will help them expand their own advertising divisions
Software is eating traditional retail DTC companies - from physical products to platforms
We are interacting more and more with bots and hardly noticing anymore
Luxury brands and entertainment properties are leading the way when it comes to the adoption of web3 and the metaverse.
All of these are bridges bringing us to the next iteration of the internet. It’s the time to get comfortable with the change and the new ways of doing things. A time to prepare and lay the foundations for our next moves - both in a social and a commercial aspect. It’s the time to imagine what this new world will look like. We are seeing previews of it now, but the end point will be drastically different.
The bridge we are on right now presents us with two choices - to finish crossing it and embrace the new, or to change our mind and go back, opting for the safe and familiar, but ultimately missing out on progress and getting left behind. I think the resulting divide from these choices will be huge.
Memo: Apple’s Property Tax (2PM)
Over the previous four years, Apple’s advertising grew as quickly as Facebook’s between 2009 and 2012. There’s an even greater example. In September 2019, it was announced in the New York Times that “Apple steps into the movie business.” In March of 2022, Apple TV+ became the first streaming service to win best picture. Apple has built a fortress; it’s using content and commerce as its bricks and privacy as its mortar.
The introduction of stricter privacy controls in Apple’s ecosystem caused a major shift in the digital advertising space. As a result, the importance of capturing first-party data emerged. Furthermore, the move gave Apple an advantage when it comes to its own advertising services - by closing the door for the likes of Meta and Alphabet, the company’s revenue from its ad division grew at record speed. For a while now, Apple has been shifting its primary focus towards services and content. These moves are setting the stage for the next growth cycle in the company’s history, as a content and commerce leader, by putting it head-to-head with existing digital advertising behemoths. Read story
‘Apparel is hard’: Why VC funding has moved on from traditional clothing startups (Modern Retail)
“We think that [technology] is going to be really the future of the apparel space,” said Battistin. “If it’s not innovation on the manufacturing side — which would be materials innovation, sustainable dyes, and upcycling or reworking recycled fabrics — it’s going to 100% be in the consumer-facing side where consumers get the product faster, it’s easier returns, or maybe even digital try-on.”
The craze around the DTC movement is taking a different shape - from brands to platforms. In a seemingly oversaturated space, the attention of consumers, and consequently, investors, has shifted to the type of DTC model that can scale and operate at higher margins than traditional retail businesses. Large chunk of the investment (and attention) pie is now going to resale or renting platforms. Combine that with Gen Z’s preference for less consumption and more reuse, and you have a perfect storm of factors that is redefining the DTC space. Read story
That smiling LinkedIn profile face might be a computer-generated fake (NPR)
By using fake profiles, companies can cast a wide net online without beefing up their own sales staff or hitting LinkedIn's limits on messages. Demand for online sales leads exploded during the pandemic as it became hard for sales teams to pitch their products in person.
We are already living in a metaverse. If you needed proof of it, look no further than LinkedIn - the platform has long been a place to spread spam and unsolicited sales pitches, and now, it seems, it has been infused with a bunch of computer-generated profiles which makes it that much faster, cheaper, and easier to conduct the sort of spammy behavior mentioned. This article does a good job at deconstructing one such case and it will make you aware of what to look for in case you encounter similar suspicious activity. Read story
The good, the bad, and the glitchy (The Sociology of Business)
Decentraland’s first ever Fashion Week took place from March 24th-27th. It included shows, panels, shopping, afterparties and “how do I lift my avatar’s hands” moments.
Last week saw the first Decentraland Metaverse Fashion Week. What did the event look like and how was the experience? Ana Andjelic shares a rundown of what went well, what went not-so-well, and what was peculiar. Read story
Pro athlete, NFT expert launch sports drink catered to Gen Z (Forbes)
The brand is introducing a limited number of NFTs to drum up support ahead of its official launch later this year. Early adopters who purchase the NFTs will become members of Local Weather’s online community and will be the first to receive the four beverages. The NFT holders also will have sole access to an exclusive fifth flavor, along with additional soon-to-be announced perks.
The question of utility around NFTs is something brands need to address if they are to execute a successful strategy. The technology provides a rich canvas of options to build loyalty and credibility. To go beyond speculation and attract real supporters, a project must have a tightly integrated utility layer. An example of such an attempt is the launch of “Local Weather” where a real-life product is closely tied to an NFT layer and puts community at the core of the strategy. Read story
Liverpool FC Launches The Latest Sports-Inspired NFT Collection (Forbes)
Liverpool F.C. is among the largest sports franchises to release an NFT collection.
Liverpool Football Club is partnering with Sotheby’s for an auction of an NFT collection featuring the players and manager of the famous Premier League team. The thing that stands out for me in this is the very low barrier to entry - if you want to participate you don’t need to know anything about crypto or blockchains - the whole flow is a very standard web2 approach. You register an account with Sotheby’s, add your credit card info and purchase an NFT. While this is far away from what the purists will call a “native web3 experience”, it is a very simplified and inclusive way to launch NFTs. When a brand is targeting a launch of an NFT project, it is important to consider the education of its community about the ways of web3. For majority of people, being faced with the terms and experiences around NFTs is a huge resistance point. Everything is so new and unfamiliar that it seems threatening. The alternative approach - going through a partnership with an established auction house like Sotheby’s who have developed a simple platform, may be a very appealing way for companies to launch their NFT projects. Plus, a brand will get the PR benefit of partnering with an established organization with a track-record in collectibles. Read story
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That’s all for this week. Have a great week(end)!
Marin