Saturday, January 28, 2017

How Alexa Fits Into Amazon’s Prime Directive



Credit Photo illustration by Adam Ferriss. Tim Graham/Getty Images.
When “Star Trek: The Next Generation” first aired in the 1980s, it envisioned a number of technological advances for humankind’s future. Set in the 24th century, the show featured 3-D printers, visors that could provide artificial sight and a virtual reality simulator called the holodeck. But perhaps its most prescient creation was the supercomputer onboard the ship. The software — usually referred to only as “Computer” — could locate people, open doors and retrieve answers to complicated questions. Crew members spoke their requests, and an always-present helper responded within seconds.
Amazon brought a version of that computer to life recently — albeit a few centuries earlier than “Star Trek” predicted. Last July, David Limp, a company executive who works on the product, said in an interview with Fortune that the idea of an all-knowing machine, with access to all the world’s information, had captured his imagination since the first time he saw it on television. It took, he said, a team of 1,000 engineers to write its code, and when the device was finished, Amazon decided to call it Alexa, shorthand for Alexandria, as in the ancient Library of Alexandria in Egypt. It is designed to work primarily with a suite of wireless speakers, also made by Amazon, called Echo, Echo Dot and Tap.
The company bills Alexa as a smart personal assistant, one that can play your favorite song or read you a book or recite a recipe as you cook. You can also make purchases through Amazon simply by asking. The possibilities are seemingly endless, because Alexa can learn new “skills” (as Amazon likes to call them) from third-party developers who integrate Alexa into their own products. And developers have leapt at the opportunity to do so: At the beginning of 2016, there were 135 skills designed to work with Alexa, but this year that number increased to more than 7,000. Alexa can now order you an Uber or a pizza, check your bank balance, control your TV, turn your lights on and off and even measure your car’s carbon-dioxide emissions. “ ‘Alexa, buy me coffee’ is just a fraction of what it’s going to be over time,” said Ben Schachter, an internet analyst who covers Amazon for the equities firm Macquarie Securities. “What can they improve with the voice activation? Some of that has yet to be seen.”
Alexa has already evolved from an experimental device to an irresistible household fixture — perhaps surprisingly, given Amazon’s spotty track record with hardware. Kindle e-readers are popular, but the company’s attempt at a smartphone flopped hard. Schachter told me that part of Alexa’s success was luck, in that there were few other shiny consumer offerings on the market this holiday season and the price point was affordable. But something about the future-feel of this device, its ease and convenience, has captivated a mass audience, even the most privacy-conscious among us. Alexa is always listening, ready to be of service. (This has already backfired: When a newscaster relayed a story about a little girl using her Alexa to order a dollhouse, it triggered dozens of Alexas in the homes of people watching the broadcast to also try to order one.)
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Five years ago, few would have guessed that Amazon would already be ahead of the top tech companies vying to be leaders in home automation. But Jeff Bezos, the founder and chief executive of the company, has been shaping this vision since the earliest days of Amazon. I recently revisited “The Everything Store,” a 2013 book by Brad Stone about how Bezos transformed the start-up from an online bookstore into the e-commerce behemoth it is today. “Bezos’ long-term goal is to sell everything, everywhere,” Stone writes. “He will attempt to move faster, work his employees harder, make bolder bets and pursue both big inventions and small ones, all to achieve his grand vision for Amazon — that it be not just an everything store, but ultimately an everything company.”
We are being conditioned, as a population, to never wait, to never delay our gratification.
The fact that I live in New York, a city that thrives on accessibility, might explain why I was slow to grasp the appeal of Alexa. Here we have bodegas on every corner, most open 24 hours, in case you need to pick up a roll of toilet paper or a bottle of hot sauce in the middle of the night. But most Americans don’t live with the luxury of that immediacy. I didn’t really understand this until the holidays, when I went home to visit my mom in Virginia and we ran out of seltzer. Carbonated water is not an essential item. But in that moment, it would have been easier to quickly tell Alexa to place an order for us and forget about it until it arrived two or three days later, rather than try to remember to pick up a case of Poland Spring the next time someone made the 20-minute drive to the store. That’s the entire enticing promise of Amazon and Alexa: a much more efficient and manageable life, one in which you can outsource mundane tasks while you do something more important, like spend time with your family.
It’s not hard to imagine that Alexa might be displaced as rivals introduce their own efforts. Facebook is working on an intelligent assistant, called Jarvis (named for the smart computer that helps Tony Stark, or Iron Man, navigate his surroundings), as is Microsoft. There are rumors that Apple is working on a major update for Siri. Google is currently Amazon’s closest competitor. The company has spent decades organizing the world’s information and learning about our habits and preferences in the process, so that it will one day know what we want even before we do. Search, then, will evolve away from the actual act of searching to the act of surfacing. The company is working on a version of artificial intelligence called Google Assistant to perfect that very ability.
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But while Google is working to anticipate your needs, Amazon is readying itself to be the only place you need to go to fulfill them. Thinking about Amazon’s restraints — the company has never tried to introduce a social network or an email service, for example — you can understand something about the future Amazon seems to envision: A time when no screen is needed at all, just your voice.
Anand Sanwal, the chief executive of CB Insights, a trend-forecasting start-up in New York, told me that Amazon has something that its competitors only dream of — consumer attention and trust. “In the last few years, Amazon has become the search engine for consumer products, instead of Google,” he said. “If you’re going to buy something, and you already have an Amazon account, you’re probably going to just buy it there. With Google, you still have to go to Amazon or Walmart.” Amazon is investing in supply trailers, drones and fulfillment centers to develop its own postal service and delivery system. And it’s still pushing its Dash buttons, those small pieces of hardware with one purpose: to order a single item from Amazon, like laundry detergent or dish soap. They seem unnecessary, until you consider them with all of Amazon’s other efforts: It’s not just an everything store, or even an everything company, but an everywhere (and anytime!) store.
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Credit Photo illustration by Adam Ferriss. Matthew Stockman/Getty Images.
The various products that Amazon is planning to roll out — including Pantry and Fresh, its grocery service — can be easily baked into default Alexa services. Restaurants, the company’s version of Seamless, already is. All this in turn brings in more money for Amazon. As Limp put it back in July: “The nice thing about the Amazon device business is that when we sell a device, generally people buy more bluejeans. And little black dresses. And shoes.”
There’s a theory that behavioral economists use to explain our consumption habits called “hyperbolic discounting,” which is the tendency to choose short-term rewards over long-term gains. The “marshmallow test” of the 1960s tested the ability of preschoolers to resist temptation — the titular marshmallow, within reach — with the promise that they would be rewarded with two if they waited. In the experiment’s most popular interpretation, those who had self-control grew up to be much more successful than those who did not. It is one of the most formative studies in self-control and how people make decisions. Alexa is the ultimate marshmallow test, and most of us are failing. We are being conditioned, as a population, to never wait, to never delay our gratification, to accept thoughtless, constant consumption as the new norm. But how we think about consumption and willpower carry enormous implications for the environment and the culture of society as a whole. Think about that the next time you ask Alexa to order you another roll of toilet paper.
Correction: January 26, 2017
An earlier version of this article misstated the total number of marshmallows offered to the preschool subjects of the “marshmallow test” of the 1960s. If the subjects could resist the temptation of a single marshmallow, they were rewarded with one more — not two more.

Friday, January 27, 2017

GENERATION Z: A PRIMER ON THEIR SHOPPING AND FASHION HABITS

GENERATION Z: A PRIMER ON THEIR SHOPPING AND FASHION HABITS

We're moving on from millennials.
 
Photo: @unif/Instagram
Photo: @unif/Instagram
We've always been a fan of Cool Teens™ here at Fashionista, regularly covering celebrities like Willow and Jaden Smith, Lily-Rose Depp, Lottie Moss and Kaia Gerber. Beyond their celebrity connections, the under-21 set — famous or not — is way more influential than you think. Known to marketers, analysts and industry insiders as Generation Z, the demographic, generally born after 1995 (making the oldest members around 21), not only boasts a buying power of $44 billion, but their tastes and preferences impact shopping decisions within their own households. According to a 2016 study by DWW's consumer experience marketing company Interactions, 70 percent of parents turn to their Gen-Z kids for what to buy, from food and furniture to clothing and footwear.
If it seems like our attention has shifted from millennials to Gen Z rather suddenly, that's pretty much true. "There's been a lot of buzz around how to market millennials and there's a lot of research and articles that talk about that," says 17-year-old Melinda Guo, CEO of JÜV Consulting. "But the thing is that there's a rising force [from Gen Z] and no one was really paying attention to it." Guo co-founded and launched JÜV Consulting in March 2016 with a mission to inform brands, companies and nonprofits about teenagers through its large network of 13-to-20-year-old consultants, collectively known as The Vine. And the company's executives know this subject matter quite well, because they're Gen Z-ers themselves. Guo met co-founder and CVO Ziad Ahmed, 18, and COO Nick Jain, 17, during a summer program at Cornell University in 2015 — at which point they were all still in high school. 
Because Gen Z and millennials are so close in age, there are certainly similarities between the two when it comes to brand loyalty and spending money. But there are distinct differences, too. For example, Gen Z, known as "digital natives," are neuronally wired to easily navigate a website and use an iPad. Millennials, on the other hand, owned flip phones before iPhones and have witnessed the internet evolve from dial-up to Wi-Fi. Gen Z prefers Snapchat, Instagram and VSCO, while millennials visit Facebook daily. "I think a key differentiator that I use internally and externally, is that millennials are parents. They've scooted up the chain," says Greg Witt, Executive VP of Youth Marketing at Motivate Inc., an agency that helps connect brands with tweens, teens and young adults.
While Gen Z is still on the rise, the HRC Retail Advisory expects the age group to make up 40 percent of the North American population by 2020. In 2015, we spent about $829.5 billion on Gen Z alone in the U.S., according to research from Fung Global Retail & Technology. "Exposure to near-infinite choice and access to near-endless information makes this generation more demanding than any of its predecessors," notes the study. "We think brands and retailers will be the ones that need to change, because Gen Z looks unlikely to compromise on its high expectations."
In January, the National Retail Federation (NRF) hosted a highly attended panel called "Who is Gen Z?" at its annual Big Show for retail professionals from around the world. Chris Wong, VP of Strategy and Ecosystem at IBM Global Consumer Industry, asked a group of retailers and companies of consumer-packaged goods, simply, "Are we ready?" The answer: "They're not really ready for this generation. A lot of the things that they're doing today are still geared towards the baby boomers or the millennials, and they haven't yet started to think what's different about this generation." 
Thankfully, there's plenty of published research over the past two or three years to fill in the blanks, including one report recently released by NRF, which the federation claims is the biggest study on Gen Z to date. (NRF, along with IBM, surveyed 15,000 consumers between the ages of 13 and 21 across 16 countries.) We devoured as much information as we could — and spoke to a few experts as well — in hopes of pinpointing Gen Z's shopping and fashion habits. Read on to learn more.

IRL SHOPPING STILL REIGNS 

Though 74 percent of Gen Z spend their free time online, NRF's findings showthat 98 percent of them still prefer to shop at physical stores. "It's a pleasurable experience. It's the joy of the hunt that they’re looking for," says Mark Mathews, VP of Research Development and Industry Analysis at NRF. "They want to go out there and find that thing that represents them. So companies have to really be thinking about, how do I make this special for each customer? How do I individualize it for them?" Aside from unique store product, Sara Radin, Youth Culture Editor at WGSN, also expects an influx of offline and immersive experiences among brick and mortars. Urban Outfitters is a good example, as it regularly hosts panels, concerts and events at various locations.

ONLINE SHOPPING SHOULD BE SEAMLESS

With an average attention span of eight seconds, Gen Z has no time for slow, hard-to-navigate online experiences. NRF has found that 60 percent of them will likely move on to the next app or website if they experience any sort of glitch or inconvenience. Talk about playing hard to get.

TRUST, TRANSPARENCY AND AUTHENTICITY 

These may sound like buzzy marketing words, but Gen Z seems to genuinely care about what exactly their money goes towards and being treated as equals from brands, whether it's transparency about sourcing or speedily responding to customer inquiries on social media. "They're really going to look at the companies' work, not just product," says Wong. "More importantly, do you do what you say you're going to do? If you say you do these things and you don't, they will abandon you in a moment." According to a study by Futurecast, 60 percent of teens will spend on brands that support social causes that they believe in.

COLLECTIVISM OVER BRAND AUTHORITY

In his farewell speech, Barack Obama called out the youth in a way that describes Gen Z very well: "This generation coming up — unselfish, altruistic, creative, patriotic — I've seen you in every corner of the country." Euromonitor's latest study highlights a "peer-to-peer trend" among younger consumers, which favors collaboration and a "we before me" mentality. Vetements, comprised of Demna Gvasalia and his collective of designer friends, has achieved this in the high-fashion realm, from partnering with dozens of brands to casting real people for its runway shows. The HRC Advisory has also noticed that friends and bloggers are more influential than celebrities when it comes to Gen Z's buying decisions. Of course, this group still champions individualistic expression — that's what Instagram feeds are for — but it's just more fun when you can do it with a friend.

INCLUSIVE CAMPAIGNS ARE HERE TO STAY

Has the Instamodel backlash begun? When it comes to advertising, Gen Z would prefer to see themselves in campaigns rather than a famous face. "Their beauty standards are different than previous generations," says Radin. "They look for eclectic, offbeat influencers as opposed to people that just look the same and are super skinny." Brands like Aerie and L'Oréal have taken strides towards diversity and inclusivity. Plus, brands need to be smart about how and where they're marketing. "They have to move out to the consumer. They have to go do the things that the consumer likes," says Mathews. The commodification of Coachella and how the music festival appeals to mainstream brands is proof. He adds, "They have to interact with them on the channels that they want to interact with. It's a real challenge for retailers to adapt to this mindset."

CO-CREATION AND CUSTOMIZATION FTW

Though young in age, Gen Z already has a discerning taste that will only mature as they get older. Offering such services as personalization, customization and crowd-sourcing designs will be successful selling points for brands tapping into this consumer market. The same goes for engaging online content, like reposting tagged photos on social media or participating in mobile gamesHollister has sponsored geofilters on Snapchat geared towards high schools in the U.S. and Canada to catch the attention of its teen customers. "They were willingly embedding themselves and sharing it," said Abercrombie & Fitch's Senior Vice President and General Manager of Digital, eCommerce, and Corporate Development Billy May at NRF’s panel. "From a Gen Z standpoint, they have an opportunity to participate as opposed to having [us] push it."
And if you're ever stumped on what gift to buy a Gen Z you know, always go for the gift card. Chances are — 62 percent, according to the HRC Advisory — these empowered shoppers will know exactly what they want to purchase.

Kengo Kuma's high-tech take on wood


Kengo Kuma's high-tech take on wood

The Japanese architect draws from natural forms to create these wooden-slatted chalets on Bali's southern coast
Tsubomi Villas by Kengo Kuma & Associates. Image © Kengo Kuma & Associates
Tsubomi Villas by Kengo Kuma & Associates. Image © Kengo Kuma & Associates
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Kengo Kuma has turned to one of his favourite building materials for a new complex of holiday villas proposed for Bali. The two-storey villas are wrapped with pallid timber louvres, in keeping with a number of other recent schemes by the prolific Japanese architect.

Tsubomi Villas by Kengo Kuma & Associates. Image © Kengo Kuma & Associates

Tsubomi Villas by Kengo Kuma & Associates. Image © Kengo Kuma & Associates
This latest project, which will go some way to reinvent eco-tourism, sits on a 20,000-sqm sloping site in a lush tropical forest. These six holiday chalets will be just a stone’s throw from the Indonesian coast on the Bukit peninsula, the island’s southernmost point.

Tsubomi Villas by Kengo Kuma & Associates. Image © Kengo Kuma & Associates

Tsubomi Villas by Kengo Kuma & Associates. Image © Kengo Kuma & Associates
Kuma has topped each building with a hyperbolic paraboloid roof canopy – which the architect likens to a flower bud, hence the name ‘tsubomi villas’ in Japanese.

Tsubomi Villas by Kengo Kuma & Associates. Image © Kengo Kuma & Associates

Tsubomi Villas by Kengo Kuma & Associates. Image © Kengo Kuma & Associates
The units are to be accompanied by two other essentials for exotic travelers: a yoga pavilion and a greenhouse; the whole development is tentatively scheduled for completion in 2018.
At the same time, building work has begun on his National Stadium for the Tokyo 2020 Olympics in latticed timber – a replacement for Zaha Hadid Architects’ controversial scheme.

Tsubomi Villas by Kengo Kuma & Associates. Image © Kengo Kuma & Associates

Tsubomi Villas by Kengo Kuma & Associates. Image © Kengo Kuma & Associates
Indeed, Kuma's ongoing projects aren't limited to East Asia. Last summer the architect revealed his designs for the new Hans Christian Andersen Museum in the Danish city of Odense. These were made up of a series of cylindrical volumes with glass and latticed timber facades.

Tsubomi Villas by Kengo Kuma & Associates. Image © Kengo Kuma & Associates

Tsubomi Villas by Kengo Kuma & Associates. Image © Kengo Kuma & Associates
For more on Japanese architecture on a slightly smaller scale get Jutaku: Japanese Houses; for more on timber in architecture order our new book Wood.

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