These are the days and surviving a recession


Within days of a black president being elected as president of America, and a life of protesting against racism, Miriam Makeba has passed away. I pinch myself to check that I’m really living with these experiences and am so grateful to be alive in this era of exciting times, great times and troubled times. I hope that Obama goes on and becomes one of the great presidents, which is a big ask, but it is very necessary.

Meanwhile downunder, Helen Clark has resigned her leadership of the Labour Party having lost the New Zealand election to probably one of the youngest Prime Ministers in our history. To me amongst other things, she represents the Politically Correct which is ironic, because I know she lost many staunch Labour voters in her campaign by trying to make the National Party and John Key in particular look untrustworthy. The TV advertisements at the end of their campaign were all trying to smear John Key instead of focussing on their successes and their future plans, and in my humble opinion, it backfired badly. When you throw mud, some of it stays on your hands and she should have known better. Several people told me that they decided against voting for labour because they didn’t like smear campaigns.

Now we are heading into the biggest recession / depression in living memory. The 30’s and the 80’s will pale in comparison. The depression is a bad thing, but there are different ways of thinking about it and smart people will do well, or at least survive.

Something that has amazed me for some time is how business has teased people, who should know better, to spend money they don’t have on things they don’t need and keep doing it over and over. Retailers and finance companies ought to take some responsibility for what they have done, but many will because their business will dry up. The finance companies will go broke because they loaned money to people that they couldn’t secure and most of the goods had dropped way below their value, the minute they left the showroom.

Banks forgot about their commitment after the 1987 crash. For a while they started looking at people’s ability to pay their mortgages and required that they have at least 20% deposit. Then as property values increased they suddenly decided to finance people with 100% of the loan, figuring that the property values would keep going up and it wouldn’t make any difference. Of course while the mortgages were being paid they were making a tidy profit.

The retailers (including car companies) figured they weren’t taking any risks because it was the finance companies that were lending the money, not them.

Funny really because we often say that instead of employing politicians, who have a short term focus and often little experience in running a business, we should pay a premium and get successful business people to run the biggest business of all, our country. The rational was that in business anyone that went to the board and said, “Whoops I miscalculated and we have half a billion dollars less than we thought”, would be quickly helped into a new career, but it seems business has been doing the same thing and thinking that they can get away with it.

By saturating the market with things they can’t afford (and this hasn’t stopped) with 18 months deferred payment and interest free for another year or so, all they are doing is compounding the crisis. Who wouldn’t be teased into buying a new 42″ LCD widescreen HDTV with freeview built in, especially when the Jones’ have one next door and you don’t have to pay anything for over a year.

So we aren’t just heading into an economic crisis, we are adding fuel to the fire to make the mess even worse and if our government’s are broke, we are walking straight into the arms of the waiting Chinese Government who would be delighted to buy our failing banks and finance companies.

Has everyone taken leave of their senses? Have you taken advantage of a 100% mortgage? Have you bought products on special deals that you wanted but didn’t need? Come on, be honest.

There is potentially an exciting side to this as well. If you were smart and saved money, or invested in assets or property that you could afford and that made sound business sense, you could be looking forward to exciting times. Many of today’s wealthy families made their fortunes in the great depression of the 1930’s. If you were prudent during the boom, you could find yourself on top when the crunch comes, ready to buy into a business or buy some real estate at rock bottom prices and benefit from this situation. Even now it isn’t too late. What are you going to do now?

Christmas is coming. Don’t take that overseas vacation, pay half of the money into your mortgage and have a local holiday. The domestic tourism industry is hurting and you should be able to have a great time enjoying your own back yard. Reduce your debt as quickly as possible and only have debt in things that will increase in value when things come right. I think it’s called delayed gratification.

While this blog is starting to get a good following, I would love to get more readers and encouraging me to keep writing. If you feel that my blog is interesting I would be very grateful if you would vote for me in the category of best blog at the NetGuide Web Awards. Note that the form starts each site with www whereas my blog doesn’t and is of course https://luigicappel.wordpress.com.

Thanks so much for your support:)

Mobile Marketing and LBS


So a couple of night’s ago I was at the NZ Wireless and Broadband’s Forum’s Wireless Wednesday. I was there to pre announce a Location Based Services application development competition. If you have read my Bio, you will be aware that I was a founding member of this organisation in New Zealand and the first elected President. I still remember the day we were working on a name for our monthly get togethers and I came up with Wireless Wednesday. Well the name has stuck and Steve Simms, the current president said that there have now been around 163 of them!

I haven’t been to the Forum for a while because it wasn’t relevant to my current activities, but with this upcoming competition and a new focus on bringing LBS into the real world, things are going to change.

What was really cool for me is that it is around 10 years since the Wireless Data Forum (as we were called then) launched it’s first developers competition for wireless and mobile applications. Even more so was the coincidence that this week’s excellent presentation was made by Ghanum Taylor of The Hyperfactory. The Hyperfactory won that first competition all those years ago. At the time they were an enthusiastic family group, Derek and Geoffrey Handley and a few other people who were equally passionate about the potential of mobile cellular technology.

These guys never wavered from their passion and commitment and I think it is worth a mention that passion imho is the single most important factor in their rise to success. They worked tirelessly and dragged the advertising and direct marketing industries, kicking and screaming into the future.

Just like many other technologies I enjoy, the market has slipped into the mass adopter phase without anyone noticing. If you saw a txt to win coupon on a product, you would simply txt the coupon number to a short code today and think nothing of it. LBS marketing is coming big time.

I’m not going to talk about their campaigns, because they can do it far better than I. Just go to their website and it is full of video’s and campaign success stories.

I didn’t start this blog as a kudos story for The Hyperfactory, but I do think that they can take some credit for helping to change the face of tomorrow’s advertising world. Check out a few of these names and I’ll wager (their first application concept was designed to allow people to bet against each other at sporting events via their mobiles) that you have seen or participated in one of their mobile campaigns:

  • Coca Cola
  • Nivea
  • Adidas
  • Vodafone
  • Motorola
  • Tylenol
  • Kellogs
  • Jim Beam, and the list goes on.

I’m not big on advertising. Most of the time I don’t pay attention to TVC’s at all, with rare exceptions like the Vodafone commercial where the guy folds up his life and puts it in his pocket (I really like the song and the dobro guitar) or the new Ford adverstisement where all the instruments in the orchestra are made of car parts.

In general, I hardly ever read print ads. I read a book during the TV commercials and these days rarely listen to broadcast radio as I am educating and updating myself in podcasts. Advertising is creeping surrepticiously into podcasts, in fact there are companies specialising in ads for podcats, but they tend to be well targetted which means that I am probably interested in the products, or I can fast forward my iPod anyway.

Anyway, watch this space for news about an exciting new competition in New Zealand for LBS Applications.

While this blog is starting to get a good following, I would love to get more readers and encouraging me to keep writing. If you feel that my blog is interesting I would be very grateful if you would vote for me in the category of best blog at the NetGuide Web Awards. Note that the form starts each site with www whereas my blog doesn’t and is of course https://luigicappel.wordpress.com.

Thanks so much for your support

Free Trade with China


So here we are, it’s 2008 and New Zealand has a Free Trade Agreement with China. Lots of people are complaining that it will be one sided and that there are still tarriffs which will keep the balance fairly one sided. But the thing is we need export partners and we need tourism and our ‘friends’ in the USA won’t sign an agreement with us.

A couple of years ago I wrote a song called Mr Bush Why Can’t We Be Friends which was about this issue. New Zealand has always felt a kinship with the USA and yet they won’t give us a Free Trade Agreement. Last year I performed this song in the US and I also sent copies to various people including President Bush and Hilary Clinton.  Of course they didn’t reply, but other people have commented both from my live performances and from sites like Music Forte and the general comment was ‘Don’t judge the country by the politicians’.

But the end result is that we now have friendlier relations with China than we do with America and in my book that is wrong, very wrong. You can hear the song on my Music Forte page. The lyrics are:

Mr. Bush, Why Can’t We Be Friends

©Luigi Cappel 2006

1

We’re the social conscience of the world

We live Downunder and

We just can’t understand the way you think.

In 1984 we closed our ports to nuclear powered ships

We were clean and green

With water safe to drink

Chorus

Oh Mr. Bush I’m asking why we can’t be friends

It’s our environment we were trying to defend

Our men fought along with yours on a dozen foreign shores

Your logic I just fail to comprehend.

2

You suspended us from ANZUS

From joint training you then banned us

And a free trade agreement is out of sight.

Now we free trade with China

But not with Carolina

This is something that we think you should put right.

3

We have a peace-keeping force

That we use to reinforce

The rights of people and democracy.

We sent people to Angola, Yugoslavia and Cambodia

To East Timor, Iraq and Fiji.

4

We were in Afghanistan, Sent a frigate to Oman

We train with Aussie, UK and Singapore

We reserve the right to fight

For our democratic right

But when we want to train with you

You shut the door.

Kiwi’s are proud to play their part in the world and in my opinion fight way above their weight. It’s about time that good things happen to good people and the US stops treating us like naughty little children. We always felt an affinity with the US and still do, but instead of enjoying free trade, we are going to be getting closer to China. I suppose next thing they will call us disloyal!