I really liked this slide - partially because I'm a language and metaphor kinda guy:
1. To the head: great product utility/performance is more than a hygiene factor - it's the core of your product. Charge less than the value you provide (balance producer and consumer rents). Figure out what your customer needs (data!) and then seek to over-deliver on performance.
2. To the heart: have purpose. Be authentic. Tell your story: remember where you started and why. It helps to leverage data once again to figure out what resonates the most.
3. To the home: (over-) invest in phenomenal fulfillment and customer support. This is all about maximizing convenience as part of the product experience.
To some extent, these three last miles are versions of "selection, convenience, price." Which leads to the question of where this wonderful and chaotic proliferation of DTC brands will end up. I can imagine four scenarios that will co-exist:
- consolidation by the large FMCG companies in the categories with high frequency/critical mass
- a healthy and long-term independent long tail of specialty brands that leverage data and fulfill very specific needs of a distinct but small target audience
- Amazon private labels that continues to eat at the bottom value-end of the scale and will push DTC out of the market in some categories
- digital FMCG platforms that build large, independent platforms in related verticals (too early to tell whether this will play out)
Slavoj Žižek, whose name I learned to spell because I liked his ideas on ideology, has a rather cryptic piece in the Spectator (UK) on whether Trump isn't a cause of the opioid crisis so much as a symptom. Which is a rather boring thing to waste your time writing (or reading, for that matter) about. But the interesting stuff that happened to me today was at a board meeting and it's all confidential and so here's the passage that stuck out for me:
"Capitalism is the first socio-economic order which de-totalizes meaning: it is not global at the level of meaning. There is, after all, no global capitalist world view, no capitalist civilisation proper: the fundamental lesson of globalisation is precisely that capitalism can accommodate itself to all civilisations, from Christian to Hindu or Buddhist, from West to East. Capitalism’s global dimension can only be formulated at the level of truth-without-meaning, as the Real of the global market mechanism."
See, this is the problem with Žižek - he thinks he understands capitalism. But like many academics (and doesn't the Moldbugian Cathedral ring true here), he has never understood the ethical triumph that is capitalism.
[Trigger warning: smacks of Rand]
Capitalism is, in direct contrast to what Žižek the Marxist believes, the first socio-economic order that elevates meaning and celebrates equality in humanity. It is, in fact, global at this level of meaning. The global capitalist worldview is of the non-violent exchange of value using an agreed upon currency - money. That, for the best of my efforts in bringing value, I receive such currency that I am then free (free!) to spend to acquire the value of others' labors.
It is precisely this abstraction from culture, from the historical rivers of blood and slavery, that makes meaning - it is the only way to live in freedom. In return, it asks the best of each of us and expects us to demand the best in return. And this is where the problems begin.
Contrary to popular belief, it is not the decay of late-stage capitalism that has caused the misery we see around us. It is the lack of ethics and morals to demand better of the goods and services provided by and to us. Who stood against the sweatshop owners, the Taylorist timetracking slavedrivers, the polluters of our planet? And I don't mean the cheap standing they do at universities everywhere, but the actual refusal to consume the goods tainted by greed and violence. Even if it means a loss of comfort or convenience.
Capitalism has brought us unprecedented prosperity. It has brought opportunity to the darkest places on earth. It is beginning to allow us to live as Gods. But in the end, capitalism only says "you are free to choose." Or as I like to put it: you are a God - now act like one.
At this point, one should assume that there is no such thing as German state or economic secrets. Everything has been compromised. For a nation that used to pride itself on security and the strength of its intellectual property, this is a very sad day indeed.