Brand Strategy Daily Briefing Retail

The Drum’s Daily Briefing: Amazon Go goes and Japanese whisky fights fakes

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By Gordon Young, Editor-in-Chief

April 3, 2024 | 5 min read

Quickfire analysis of the brand, marketing and media stories that might just crop up in your meetings. Brought to you today by editor-in-chief Gordon Young.

Amazon Go

Amazon's ‘just walk out’ store format is being phased out / Photo by Simon Bak on Unsplash

Japanse whisky tackles fakes

Japan has announced new standards to define real Japanese whisky. It hopes such moves will deter fakes – an irony that will not be lost on that other center of whisky production, Scotland.

In fact, according to folklore, one 1970s Japanese campaign used the line: “Finest Scottish whisky. Made from real Scottish grapes.” But since then, standards have improved and highly respected brands have emerged, such as Yamazaki and Hibiki. The new rules, set by the Japan Spirits and Liqueurs Makers’ Association, require spirits to be made from either malt or other grains, use local water and spend three years in wooden barrels before they can be labeled as Japanese whisky.

Whisky regulation in Japan was once so loose that, according to one expert, it would have almost been possible to sell tap water as Japanese whisky.

Source: The Times

Tesla sales slow

Tesla has reported its first quarterly fall in deliveries for the first time in nearly four years, leading some commentators to ask if the most valuable car maker is about to enter a ‘darker period.’ Investors were certainly unnerved at the rhetoric and shares lost about $33bn in value at the close of New York trading yesterday.

One analyst said the sales figures were an "unmitigated disaster." Tesla blamed the slowdown on plant shutdowns caused by disruption in the Red Sea and an arson attack on its German factory. It also said work to phase in an updated version of the Model 3 was a factor.

However, others say that there are structural dynamics at play. Consumers now say they are less likely to consider buying electric cars as their costs and limitations become clear.

Also, the company is facing low-cost competition from China, which is flooding Western markets with cheaper alternatives. However, on this front, there was one bright spot.

Recently, Chinese manufacturer BYD overtook Tesla as the largest car maker. But despite the slowdown, it has now been reported that Tesla has reclaimed the crown.

Despite all the alarm, many say that anyone who underestimates Elon Musk does so at their peril.

Source: BBC

Amazon Go goes

Amazon is scrapping its ‘just walk out’ store format in the US. Since the system was launched in 2016, the system allowed shoppers to grab items and leave without checking out.

However, the technology meant it the stores lacked flexibility in terms of layout, required expensive infrastructure such as cameras and weight-sensitive shelving, and confused shoppers who did not like walking out without knowing how much they would be charged.

In its place, Amazon will use a smart cart system where the supermarket cart will monitor what shoppers have chosen, organize payment and give people real-time receipts. Many analysts believe it is a more cost-effective route as the infrastructure moves from the building into the smart trolley itself.

At the moment, there are no plans to abandon the ‘walkout’ format in the UK, but this correspondent, for one, suspects it is only a matter of time.

Source: USA Today

False flag incident for UK Olympic team?

Another day, another flag row in the UK. Last week, Nike came under fire for designing a Pride-esque St George’s cross as part of its England football team kits. Now, the British Olympic Association is being criticized for the approach it has taken toward the Union flag in its 2024 Olympic kit design.

One suspects this will not gain as much traction as the Nike row. The lack of any resemblance to rainbows closes down woke attacks while the Union flag itself has often been reinterpreted by brands, including Mini, and artists such as Stormzy. But perhaps the most important element of all is the new design looks quite good.

Source: The Telegraph

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