Jack Q Ma
I enjoyed reading this post because I myself have been quite confused by Peloton’s strategy. In fact, when I first tried Peloton (at its studio in NYC) in 2017, I was already confused about why I needed one account to sign up for class, and another (on a different site) to log in on a bike. That particular issue was probably minor, but to me it was a symbol of Peloton’s want-to-do-it-all strategy. I personally won’t buy the bike, because it is really just an expensive bike with an iPad attached. However, I would be open to using the app for workout videos (if they were free), or ride on one of their bikes when I stay at a hotel that partners with Peloton. Maybe the company should spend some more time to think about their digital strategy, so that it actually lives up to the number of times the word digital was used in their S-1 prospectus.
Thank you for the post! I enjoyed learning about what Burberry has been doing differently, in the world of traditional luxury brands. They really did take a risk, compared to many of the other luxury brands. I worked directly and indirectly with many of Burberry’s peers (in a broad sense) while at Alibaba, and I would say most of them were a lot more risk averse, or quite stuck up with their “high-end” brand images and actively avoiding going digital because it’d cheapen their brands. While Burberry is in a middle range position among luxury brands and thus going digital would be an easier decision than for say, Hermes, I still think Burberry was bold and strategic, and it paid off.
I find this piece very interesting because I also observe Visa & MC as losers in the Chinese market. Some of the reasons they are losing to the local homegrown options are the same, but some different. In both markets, it seems that the proliferation of smartphones allowed the two countries to leapfrog over the traditional consumer banking / credit card stage, and the citizens become very comfortable with online payment methods – they are not only fast but also cheap (to merchants). The other reason Visa & MC are losing is more structural – in India it seems like the government had an important role in pushing the homegrown option, and in China, the super apps (Tencent’s WeChat and Alibaba’s Taobao) gave users an incredibly easy introduction to their built-in payment functions.