My Two Mins Worth #20
24 January 2021 - Luxury e-commerce, transfer windows, burgers and an inauguration playlist
š» Retail is moving online, thereās no doubt about that. For the luxury sector, it provides a unique challenge: how do you get someone to 1-click spend Ā£1000 on something theyāve never seen in person? Luxury shopping is a unique experience that deserves a bespoke service. People donāt want toilet paper suggestions based on their last purchase popping up when theyāre about to buy a Burberry jacket. Nothing could ruin a luxury watch quicker than the tacky Amazon homepage itās being displayed on. Richemontās Johann Rupert realised this in 2015 but the luxury brands didnāt get their act together. Six years later thereās still no king of luxury e-commerce. Richemontās Net-a-Porter has brand recognition but still runs at a loss. Perhaps their team up with Kering will make Farfetch the winner but if Bezos has his way, luxury will be yet another sector in Amazonās empire.
ā½ļø Footballās January transfer window has been underwhelming. Pandemic finances mean teams canāt afford to gamble on signings as usual. Meanwhile, in the NBA, weāve seen the biggest move in years: Harden to the Nets. How come basketball can trade as if America is Covid-free? One reason, not much money was involved. Instead, the Nets offered up bucketloads of 1st round picks to get their man. Of course, itās still a steep cost but not a monetary one. In the US model, players sign into a bargaining agreement giving them more power and levelling the playing field for teams. Meanwhile, legal experts think footballās transfer window may be illegal. In no other profession would you only be allowed to change jobs during set times and only when your new employee paid your old boss. Nonetheless, transfer fees arenāt about to go, the fall out would be massive and after-all, watching managers waste Small-Nation-GDPs is what makes football.
š½ The past year has been one of the hardest for restaurants. So how did those that got through it survive? One of the top trends was establishments streamlining their menus. As someone whoās seriously susceptible to order envy and happy to eat almost anything, a smaller menu makes my life easier. The other top trend was unsurprisingly a shift to comfort food. Combine these two trends and itās clear why burgers were fine and casual restaurantsās most ordered item of 2020. Iāve always thought the burger is underrated. Lately, Iāve noticed more and more fancy restaurants doing burgers (most recently world-renowned The Test Kitchen) perhaps because itās the ultimate test - perfecting a dish that pretty much everyone knows while staying original.
šµ Iāve spent most this week listening to the Biden-Harris Inauguration playlist - itās an excellent blend of old and new - and seriously funky. The Vaccines released the first song off of their upcoming cover album, a cover of Queens of The Stone Ageās āNo One Knowsā. Royal Blood also announced an upcoming album and released the title track āTyphoonsā. My song of the week is āMaajoā by Maajo
š” Some links I enjoyed this week: Nigella with some inauguration day sass. A great explainer on how Covid-19 deniers try make themselves look legit. Benedict Evans and Toni Cowan-Brownās podcast on Chinese tech and this related thread.