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"Rich people are the most boring in the world" + other essential insights

Excellent, funny, insightful video filmed at DLD by Scott Galloway at NYU Stern. 

Key learnings: 

  1. "Stores are the new black"
    Pure play (i.e. online only or real world only) retail is over. Multi-channel is the future of retail.
  2. Click and collect rising
    Stores are great pick-up points: click & collect will become huge. Amazon is likely to invest in pick-up points – perhaps the company will buy a chain of gas stations.
  3. The smartphone economy and the new delivery systems
    Delivery will shift from companies to Bla Bla Car and Uber. It's too expensive for Amazon to deliver the way they're doing it now.
  4. The Facebook era continues
    Facebook dominates the app economy.
    "People like to say Facebook is over. People are constantly talking about people not liking Facebook. That is total hogwash… 2/3 of time of social media is on FB… Facebook is tracking more individual identities than Google and beginning to pull away. There are 1.1bn self-identified Catholics in the world. Google has relationships with 2.2bn, Facebook has relationships with 2.4bn. The training manual at Facebook should go like this… 'When you're interested in building your brand at scale, give me a call: I have more relationships than God on this planet and I'm on a mobile phone.'"
  5. Google
    Beginning to decline. The mobile economy is less friendly to Google. Cost per click is declining. "Facebook is going to disrupt Youtube."
  6. What's driving social media?
    Visual and mobile –which is why Instagram is growing so fast. (btw, so is WeChat)
    Instagram has 10-15x the engagement rates of Facebook, 25x the engagement rates of Twitter.
  7. Apple is a luxury brand
    For six reasons: Craftsmanship, Iconic founder, Exceptional price-point, Vertical, Global, Self-expressive Benefit. (Compare to Louis Vuitton.) 
    "Apple is the ultimate self-expressive benefit brand"
  8. "Rich people are the most boring people in the world. They smell, look and feel. They all fly British Airways… luxury brands are able to go global faster because rich people aspire to the same things"
  9. "Luxury brands give self-expressive benefit. They signal something about you," he says. Then, holding up his arm and showing off his oversized watch: "This is not a timepiece, I have not wound it in five years. It is my vain attempt to express Italian masculinity, and signal that if you mate with me I'm more likely to take care of your offspring than someone wearing a Swatch watch."
  10. Evolutionary psychology explains why people buy what they buy: "We like to think we're more evolved than that. We're not."
  11. "There are only 3 things we do in business:
    1. Appeal to people's instinct to survive: food, housing, warmth, clothing
    2. Appeal to people's instinct and ability to love: if you clean your kids' clothes it shows you love your family
    3. Appeal to your desire to propagate
  12. "Move down the torso, the margins get better and the business gets better – and luxury is in the business of propagation. Tesla is not an environmental car. It's an attempt to tell people you can afford to spend $150,000 on a car… a car that goes 160mph in domains where you can only go 55 makes no sense. Women will continue to buy $600 for ergonomically impossible shoes to solicit incoming offers from those same men."
  13. "Apple is the ultimate self-expressive benefit brand."
  14. "Apple is going to be the biggest watch company in the world. Who does this hurt? It hurts everybody."

For more on these ideas, especially the important of "self-expressive benefit", read Geoffrey Miller's Spent and look for the concept of fitness indicators. They're the same thing. I'll be posting my highlights of that brilliant book soon.

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