Category: Business

MBW’s World’s Greatest Producers series sees us interview – and celebrate – some of the outstanding talents working in studios across the decades. Here we meet Lostboy (aka Pete Rycroft) who has just had a very hot summer – playing a major part in huge hits for Calvin Harris and Ellie Goulding (Miracle) and Kylie (Padam Padam). He talks about how those projects came about, why they worked – and where they fit into his incredible career so far. World’s Greatest Producers is supported by Hipgnosis Song Management.

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Pete Rycroft got off the plane in London to find his homeland enjoying a Lostboy summer.

Rycroft – the British songwriter-producer who has long been a big noise in the States – had jetted back from New York for the Ivor Novello Awards in May, just as Calvin Harris and Ellie Goulding’s Miracle (co-written by Rycroft) was getting into its stride for an eight-week stay as the UK’s No.1 single.

Around the same time, Kylie Minogue dropped Padam Padam – produced by Lostboy and written by Rycroft with Ina Wroldsen – a song that would go viral, become a Pride anthem, give Minogue her first UK Top 10 hit in almost a decade and even, somewhat belatedly, make BBC Radio 1 start playing her again.

In short, Rycroft’s work has been the sound of the UK’s heatwaves-and-downpours season.

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“You wait ages for a bus and then two come along at once,” he quips, greeting MBW at the door of his Tardis-like studio, hidden away in a quiet bit of north-west London.

“But seeing people at the Ivors and at the pub afterwards, with everyone saying, ‘Congrats, this is amazing’ was great. It suddenly felt very real, and it was so nice to feel some tangible moment here in the UK, at home.”

Both songs showcase Lostboy’s trademark sound – irresistible pop music with a darker edge – a sonic template that he puts down to his eclectic musical apprenticeship.

He grew up listening to his Dad’s collection of glossily produced 1980s albums (“Trevor Horn has always been a massive influence, if not consciously, then definitely subconsciously”). He played in a touring blues band and also drummed for a prog-metal outfit called Purgatory Shift (“The logo was intense”).

Indeed, he first picked up some production skills as he “desperately tried to make these awful songs sound better”.

“It was quite technical, progressive metal,” he says. “Really complicated, lots of weird time signatures and key changes – and it was the science of it that I became obsessed with. Eventually, I realised that science applies to pop music as well, but in an even more granular way.”

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Rycroft quit playing in bands and went to music college, before dropping out as he started picking up sessions when one of his tunes got played on BBC Introducing. He met his lawyer (Jo Brittain of Russells) and his manager (Matthew Rumbold of Transmission).

But his key break came when Saul Fitton heard something he’d done and played it to Fraser T Smith.

Smith loved it, gave him plenty of additional production work and signed him to his own 70Hz publishing company (Rycroft has since followed Fitton to Warner Chappell and now Sony Music Publishing).

Rycroft fizzes with stories from his early years of working with the likes of Gabrielle Aplin and Becky Hill in his bedroom studio (“It really was my bedroom,” he laughs, “There were lots of awkward situations with flatmates bursting in when we were recording!”).

But nowadays he’s usually found in bigger rooms. His huge Stateside success has been boosted by his aptitude for ‘pitch songs’ – i.e. tunes that are written in the studio and then shopped to artists (both Miracle and Padam Padam came about that way). His list of US smashes includes everything from Ava Max’s Million Dollar Baby to Tiësto and Ava Max’s The Motto, and from Zedd/Kehlani’s Good Thing to Jackson Wang’s 100 Ways. He’s also worked with Lewis Capaldi, Anne-Marie, Rita Ora, Sabrina Carpenter and K-pop stars IVE and been a key contributor to the rise of both Griff (Black Hole) and Tom Grennan (Little Bit Of Love).

“I’m always just trying to write the songs I love with the artists I love. That hasn’t really changed.”

Now his UK renown is finally catching up with his US status, with his phone “metaphorically” ringing off the hook with offers. But it’s clearly not his style to get carried away.

“It’s lovely to be wanted more off the back of [the success], but it’s weird,” he shrugs, making tea and settling down on his studio’s “cheap but comfy” sofa to talk to MBUK. “I’m always just trying to write the songs I love with the artists I love. That hasn’t really changed.”

He’ll be heading back to the States to do just that shortly, teasing “lots of exciting stuff that I can’t talk about”. But for now, it’s time to find out how this Lostboy found his groove…

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Did you know you were going to have two massive hits this summer?

No. Both of them were sort of a punt. The demo of Miracle was much slower and darker. The first time I heard Calvin’s superfast trance version, my first thought was, ‘This is either going to do incredibly well or flop’. It was either going to make or break and obviously, luckily, it was the former!

Same with Kylie. She’s had an amazing career but she’s not a name that lots of people on TikTok necessarily knew and that’s what drives records these days.

Sometimes you get a sense within the industry before a song comes out of whether it might do something, if everyone’s buzzing about it – and there was nothing on that one! But, when it came out, it was just rabid on social media.

I’ve never really experienced that with any song, not even the Calvin song or the US songs that have done really well commercially. I’ve never seen anything like in terms of memes, people talking about it online and it spreading organically.

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What did you learn from Fraser T Smith?

The main reason that I admired him so much was because I’ve always wanted to work on all sorts of genres within the pop music umbrella.

When I started working with him, he’d done Britney and Adele and he was just about to embark on this whole new grime phase of his career with Stormzy and Dave. So, to see that happening in front of me made me think, ‘It is possible to be across everything and to be lost within genres’. That’s partly where the name Lostboy comes from: I’ve never just been doing one thing, it’s always been about spreading my bets – not in a tactical way, just because I love working on loads of different things. He was that guy and it was so nice to see it was possible.

But the main thing I learned from Fraser was how incredible he is with artists. He’ll spend an hour or two, just making sure the vibe is right, getting to know them and exactly what they’re going through. It was so useful to see that in the flesh. Like, ‘Oh, this is how you do it!’

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Do you prefer writing or producing?

I see them as totally linked, especially in pop music. I’ve done sessions as just a songwriter before but, more often than not, I’m producing as well. I find it really hard to be boxed in as ‘a track guy’ or someone who’s just working on the beat, because all of that is irrelevant to me without the song or whatever the direction is.

“When I’m in a session with UK writers, sometimes it feels a bit like four people sat on a sofa, staring at the back of my head waiting for a vibe to kick off.”

That’s part of the reason why I’ve found the US to be more of a home for my songs; the way people work over there is more song-driven than here. When I’m in a session with UK writers, sometimes it feels a bit like four people sat on a sofa, staring at the back of my head waiting for a vibe to kick off. That’s not really enough for me – and I don’t think those songs necessarily translate globally. But there are a lot of brilliant UK writers that I love.

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Do you mind the proliferation of writing and production credits in modern pop?

Not at all, if they’re adding value. And sometimes it does take a village to get things over the line. But there are times when there can be too many cooks and it becomes part of the A&R process.

Like, if this hit writer has worked on the bridge, it’s covering the A&R’s arse – if the song doesn’t do well, they can be like, ‘Well, I did get so-and-so on the bridge and involve the best hit songwriters I could get’. Sometimes that works, sometimes it just waters down the idea.

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Don’t you get some of those calls?

I’ll get sent a lot of stuff where they’re like, ‘Oh, we just a want bit of magic sauce’ or some other weird phrase that doesn’t mean anything!

When I get asked to do those things I’m thinking, ‘You’re not asking me because it’s good for the song, you’re asking me because Miracle was No.1 for eight weeks’. It definitely works sometimes, but you can’t base A&R decisions solely on commercial success. And sometimes the best songs are just me with one other person.

“Kylie, in a real classy move, didn’t ask for any publishing and isn’t credited as a writer. In a lot of instances, the artist would ask for writing anyway, but she was really cool about it.”

Padam is an example of that – that was just me and Ina Wroldsen, who’s amazing – that was the first time we’d worked together. And Kylie, in a real classy move, didn’t ask for any publishing and isn’t credited as a writer. In a lot of instances, the artist would ask for writing anyway, but she was really cool about it.

It’s also admirable that there are true recording artists out there like that who are brave enough to be like, ‘Yeah, I didn’t write it, but I’m performing the hell out of it’.

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Breaking artists has become a real problem for the UK industry. You worked with both Griff and Tom Grennan: did you always think they’d make it?

Yeah. It’s one of the only cliches in the music industry that I’m fully behind: when you meet someone and they have ‘that thing’, there’s no going back from that. It’s so undeniable that the only way this can fuck up is if someone else fucks it up – it’s not going to be them.

When I first worked with Griff, I remember coming away from that session thinking, ‘I would cancel everything just to work with her on anything’. It was just obvious that she was going to have a moment at some point.

And Tom is one of the hardest-working pop stars I’ve ever seen. He really gets the hustle side of it and he’s a brilliant, incredible performer.

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Has TikTok changed the way people make records?

Yeah. People say it’s completely changed the landscape of songwriting – I’m not sure if that’s true, but it’s definitely the most important thing right now for launching an artist or pushing a song the extra mile.

“I try not to start a song thinking, ‘What’s going to work on TikTok?’, but it sometimes is a thought in the process.”

I try not to start a song thinking, ‘What’s going to work on TikTok?’, but it sometimes is a thought in the process.

The one thing it’s really taught songwriters is that lyric is king. Whether the song is sped up or slowed down, the lyric is the same – and that’s what people connect to.

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How will AI change production and songwriting?

I’m pretty open-minded about it. It’s something we’ve been using for years without realizing, especially in production. There are so many plug-ins and different settings or different pieces of software that are essentially AI. You could argue a dynamic EQ is artificial intelligence in a way.

It’s a bit different songwriting-wise. That Drake song that was completely AI – people who didn’t know it was AI were like, ‘This is a great Drake song’. Whether you know it’s AI or not makes a big difference.

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Are songwriters and producers given enough respect by the industry?

I don’t feel fully qualified to comment because I’m a producer-songwriter. It’s not easy for producer-songwriters, but it’s definitely easier.

I’m not really sure how I would have managed to survive as a brand-new songwriter, working my way into the game without a publishing deal and without the occasional production commission.

“I’m not really sure how I would have managed to survive as a brand-new songwriter, working my way into the game without a publishing deal and without the occasional production commission.”

There does need to be some sort of shift in the way songwriters are paid. There should be songwriter fees, at least to cover travel and food.

Even if you get that first cut, you’re not going to see that money for six months. There needs to be a turning point where labels offer a small fee, like £500 for a songwriter if the song’s released, upfront.

That would really help new songwriters. They should be getting points on records as well, but that’s a whole other argument…

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If you could change one thing about today’s music industry, right here and now, what would it be and why?

The thing that frustrates me the most is when people feel they can’t be themselves. The songwriter who’s posturing in a room to blend in with the artist, because they think that’s going to help them get a song, whereas in reality most people are drawn to people who are unashamedly themselves. I certainly am.

“my favorite A&Rs are the ones willing to fully back themselves and take chances on things, not just do what they think their boss is going to be most chilled about.”

Similarly, my favorite A&Rs are the ones willing to fully back themselves and take chances on things, not just do what they think their boss is going to be most chilled about. There needs to be more personality in A&R, because that’s going to feed into the development of artists which is the one thing we’re really lacking right now.

Labels are signing artists off viral songs and often it’s the song or the lyric that has done the thing, not the artist. The A&R is just following the trend and not really thinking – that’s the most frustrating thing.

So yeah, if everyone could just be themselves [laughs]; that’s the most floaty answer!Music Business Worldwide

Cheap Chinese drones costing just a few thousand shekels each caused Israel last Saturday morning strategic damage that allowed Hamas to disable Israeli surveillance and hit the forces deployed on the border.

A few simple commercial drones carried out photography missions, dropped grenades and heavy bombs on outposts and along the Gaza border and disabled part of the IDF’s surveillance system, without disturbing the army’s complacency, at the start of the attack.

These cheap drones, mostly manufactured by Chinese companies DJI and Autel, have for more than a year changed the battlefield in Ukraine, were used in the attacks on the Aramco oil fields in Saudi Arabia and closed down London’s Gatwick airport several years ago, and it now seems that Israel has been given a lesson in their massive use in a military operation by the Gaza terrorist groups.

This is not the first time that the drone threat has disrupted Israel’s skies. Earlier this year in May, three incidents were recorded of commercial drones entering Israeli airspace including a DJI-made drone from Lebanon hovering above the Zarit base.

At about the same time there were at least two criminal incidents. In one of them a drone carried about seven kilograms of explosives to an apartment building in Netanya in an attempt to assassinate a major underworld figure. Fortunately, the drone crashed because of the weight and broke up without causing any major damage.

Defense and security consultant Yair Ansbacher, who specializes in analyzing theaters of war, explains that commercial drones have many advantages for those operating them. He says, “They are cheap, available on the market, can be launched from any place and flown them from any place within a few moments and accurately, without almost any previous experience. By the way it is also possible to to receive quality, real-time video images.”

Ukraine: the most extensive military use

Unlike drones or unmanned aerial vehicles, which have a larger body and can therefore be detected by military radar, these drones are small, very light and difficult to locate. “They can be turned into a sort of smart or semi-smart weapon through simple improvisation,” explains Ansbacher. For this reason, according to him, terrorist organizations in the Middle East, such as Hamas, Hezbollah, the Houthis in Yemen, Jabhat al-Nusra and ISIS have established a permanent operational arm that uses drones.

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The war between Russia and Ukraine, which broke out a year and a half ago, has become the largest battlefield in scope so far that has used drones to blow up hundreds of military vehicles and tanks by throwing grenades through the shelf, and killing and injuring thousands of soldiers.

In some arenas, this use has even helped to dramatically change the situation. Using two types of drones: commercial DJI drones, which usually drop grenades or are even equipped with hives of bombs; and crash drones, which fly at high speeds, usually 120-150 kilometers per hour, and crash into a military vehicle or an infantry unit. Here, the Russians use self-made Lancet drones, or the Iranian-made Shahad, while the Ukrainians use self-made drones, as well as Chinese-made FPV drones.

“The numbers and scale of drone use in the Middle East do not come close to what is happening in Ukraine,” says Ansbacher. “This is one of the reasons why Hamas was unable to obtain a larger number of drones. Many of them, are being used on both sides, in the Russia-Ukraine war.

“While the US suffers from a shortage of drones, China, which manufactures them, enjoys control of the market. The Chinese control (DJI alone has a 70% market share) keeps Western awake, because of the suspicion that Chinese intelligence gathers extensive information through them. In the US security forces, for example, the use of DJI drones is prohibited.

Despite the effect the drones produce, Ansbacher explains that it is not a strategic tool, but only a tactical one. “They are effective in surprise attacks, but do not change the course of the fighting,” he says. “During combat, their effect is quite similar to a mortar shell. It comes out of the sky and lands in the field and we have known this effect for a long time. The drone is quieter, so it also has a psychological effect.”

Despite the images coming from Ukraine, where many tanks are destroyed using grenades dropped from drones, Ansbacher explains that the actual damage to armored vehicles is not great if the soldiers observe the rules used in the army.

“In a situation where the tank hatch is closed, it cannot be destroyed by a drone by dropping a charge. What you see is the dropping of incendiary bombs that cause psychological pressure in the crew to make them abandon the tank,” he says.

Israeli technological solutions are used worldwide

At this stage, it is not clear why the IDF did not thwart the launch of the drones into Israel. As far as is known, Israel has a military capability that allows it to deal with commercial drones, and the world is already dealing with the phenomenon through technological solutions, some of which are being developed by Israeli companies.

The leading Israeli company is D Fend Solutions, which has raised $30 million to develop electronic counter-drone solutions that allow armies and security forces, energy facilities, and airports to remotely locate drones, halt their operation and take control of them. The US Defense Department, for example, is one of D Fend’s biggest customers and it has also announced that the Israeli company’s solution is the main solution that it is adopting.

Israel Aerospace Industries is marketing the Drone Guard system, whicvh helps the military to detect drones, disrupt their operations and allow ground forces to shoot them down with light weapons. This is rivalled by several foreign companies including Dedrone from Virginia in the US and Australian company DroneShield, which is publicly traded with a market cap of A$161 million. The Australian company has annual revenue of $6 million, which reflects how small the market is.

Drones themselves have also become an effective tool for fighting assault drones. Israeli company Xtend, for example, offers foreign security forces, including the US military, attack drones based on Racers – motorized racing drones capable of maneuvering and hitting a precise target at enormous speed.

Xtend has adapted the drones, which originally also fought against incendiary balloon and drone launches in Israel, for other combat missions, such as scanning between buildings, and equipped them with AI, so that they can cruise and carry out operations with minimal intervention by a human operators.

The next threat will not be the sending of one drone or another towards military targets, but in drone swarms, some of which will operate autonomously and attack from many sources. “There is a need for a change in strategic thinking, which will lead to a change in combat theory,” says a senior defense source. “The essence of the change is to deal with masses, masses of people as well as masses of drones, and not just with individual quality aims.”

Published by Globes, Israel business news – en.globes.co.il – on October 12, 2023.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.

…The first 12 years of GTBank Nigeria and what we can learn today

For the purposes of this piece, we only need a rough estimation. So take N20 million in 1990. Convert it to US dollars. The internet says the exchange rate at the time was something around N7.39 to $1. That works out to $2.7 million. That $2.7 million in 1990 is not the same amount today so to work out today’s value, we again use the internet which tells us that a dollar in 1990 is worth $2.35 today. In other words, $2.7 million is equivalent to around $6.4 million in 2023. Using a round and rough exchange rate of N900 to $1 these days, we can therefore say that N20 million in 1990 works out at N5.7 billion in 2023 (there are better and more accurate ways to do this calculation but I’ve used the laziest one).

I recently came across a paper by Professor Ayodeji Olukoju, a distinguished professor of history at the University of Lagos: Gentlemanly Capitalism and Entrepreneurial Management: Formation and Rise of Nigeria’s Guaranty Trust Bank, 1990–2002 is an account of the origin story of what we now know as GTBank, specifically the first 12 years of its life. There is much to chew on in the chapter (it’s part of a larger book about entrepreneurship in Africa) but what really stands out is the nature of what can be considered opportunity in Nigeria and how that has changed since 1990.

Read also: Dangote, GTBank, DSTV, others emerge most admired brands in Nigeria

After beginning the application process for a bank licence in December 1989, the promoters were asked to pay the N20 million licence fee in March 1990 i.e. the amount needed to be deposited with the Central Bank as paid-up capital. This can be considered the point of no return for what had started the previous year as an idea between a couple of young and well-connected men. These days, you will need N25 billion for the same licence with the CBN. That is, 5 times what it cost in 1990. Some of this reflects Nigeria’s experiences with banking and the fact that the country once had 90 banks doing a combination of forex round tripping and assorted ‘sharp practices’ with less than zero actual banking. But it also reflects the Nigerian regulatory habit of using money – the easiest low-hanging fruit – as a way of keeping people out of an industry. There are other ways – like the regulator basing the decision on the quality of the plan or its ability to boost (or maintain) competition in an industry that always needs it. But raising the cost of entry, very significantly, has been the reality.

And that’s not even the more interesting part. As low as the cost of entry was back in 1990, relatively speaking, the money was only a part of the story. Consider this:

First, the core Promoters – Adeola, Aderinokun and Bode Agusto – had been friends since attending high school at St. Gregory’s College, Obalende, Lagos. Aderinokun married Agusto’s sister, who had been Adeola’s classmate at the Methodist Boys’ High School, Lagos. Their paths later crossed in the job market. This shared background oiled the process leading to the success of the bank. Adeola aptly remarked that secondary school bonding “never extinguishes.”

Read also: GTBank reports profit before tax of N167.4bn in Q3

It turned out you needed a lot more than money in those days. You needed to be born into the right family, go to the right schools and make the right friends while you were there. They managed to convince 42 investors to back them – it seems that more wanted to join and they ended up being able to pick and choose who they wanted. An interesting illustration of this is that at a time Nigeria was under military rule with perhaps the most openly corrupt military elite the country has ever seen, they managed to avoid military men (serving or retired) on their board. They, however, got some prominent (at the time) politicians to back them. It is fair to say they managed to put together a convincing idea that won over investors.

The foundation Chairman, Chief J.K. Agbaje, was the first Nigerian Executive Director of the leading bank in Nigeria, Standard Bank (later nationalised as First Bank). He was recruited for the strategic purpose of facilitating the procurement of the banking licence by lending his credibility and deploying his influence as a highly respected retired banker. Adeola acknowledged at Agbaje’s retirement party, without elaboration, that he was “instrumental in obtaining a banking licence for the bank.” Osibodu, like Aderinokun, was a friend of Chief Agbaje’s son, whom he persuaded to help recruit his father.

Chief J.K Agbaje is of course the father of the bank’s current CEO, Segun Agbaje. This was a bank set up by the elite and their children with a lot of help from their friends along the way:

One of the Bank’s investors and a future Director facilitated approval by the Minister, who was the godfather to one of her children.

Read also: GTBank appoints Miriam Olusanya as managing director

But that in itself did not mean success was guaranteed and the overwhelming evidence is that they ran the bank diligently and smartly – my recollection from the time was that the bank had by far the best-trained, best-looking and best-dressed staff you could find in any Nigerian bank. You wanted to open an account there. (As with their investors, they were however very picky and the story is told that from 1990 to 2009, they barely managed to cross 1 million customers and then Sanusi Lamido Sanusi became CBN Governor with a blitz on the Nigerian banking industry. All of a sudden there was a flight to safety with people looking for a stable bank to squirrel their money. Almost overnight, GTBank grew to something like 3 million customers and many people will tell you the quality of their service went downhill from there.)

What does this tell us about the nature of opportunity in Nigeria? They were definitely not the only well-connected kids at the time or the only ones who could raise N20 million. But the opportunity was a rare one all the same that was probably closed to 99% of Nigerians at the time. 33 years later, the same opportunity is now closed to 99.99% of Nigerians.

There are a couple of lessons here. Banking is perhaps not a great example because, as stated earlier, Nigeria has had some very painful experiences with banking (I grew up watching stories about ‘Wonder Banks’ on Newsline on Sunday nights) which necessitated closing it off to most people. Still, it is not the nature of opportunity in Nigeria that it remains open for long – whether it is tech or Afrobeats. Nigeria is self-evidently not a country that has excelled at expanding opportunity to the hundreds of millions of Nigerians within the country’s borders.

Read also: GTBank, Zenith banking apps top list – survey

The other lesson is that many doors that seem firmly shut in Nigeria often only just need a push for them to open. It must have seemed pretty audacious for a couple of guys in their 30s to decide they wanted to start a bank of all things in 1990 Nigeria. Professor Olukoju’s account suggests that they began discussing the idea in February 1989 and by December of that year, they had been invited for a formal interview at the CBN. And as already mentioned, in March 1990 they were asked to pay the aforementioned N20 million deposit In July 1990, the banking licence was issued to them. That is, from idea to banking licence (with fundraising along the way) took all of 18 months. That, too, is another thing that will not happen today.

But if that sounds amazing, it is because the door stopping a bunch of young guys from starting a bank turned out to not have been firmly shut after all.

This piece was first published in 1914reader.com

Rising inflation, growing global instability and falling demand for high-end drinks have been blamed for a slowdown in growth at the luxury goods multinational LVMH, owner of Christian Dior, Louis Vuitton and Moët & Chandon.

The group, whose brands also include Stella McCartney, Tag Heuer watches and Bulgari and Tiffany jewellery, reported revenue of €20bn (£17.25bn) between July and September – a 9% rise. That compares with a 17% increase in the previous quarter.

One of the worst hit parts of LVMH’s business was its wines and spirits division, which includes Hennessy cognac, which fell 14% in the quarter.

The results released on Tuesday suggest the post-pandemic boom in luxury goods, which helped LVMH become Europe’s first company to reach a $500bn valuation earlier this year, is starting to ebb.

Pauline Brown, the group’s former chair in North America, argued increasing global instability was a factor in the slowdown.

“If I was still sitting on the board at LVMH or any of the other luxury companies, what would really be rattling me is the geopolitical destabilisation around the world,” she told BBC Radio 4’s Today programme on Wednesday.

Brown added: “Luxury goods and purchases is a psychological purchase. Nobody needs a glass of champagne, nobody needs a watch or a diamond necklace … In order for you to buy it for yourself or as a gift, you really have to be in the right mood state. When we see atrocities happening … the appetite to spend on what might be perceived as frivolous goes way down.”

Referring to the fall in the wines and spirits division, she said: “About half of that business is one brand, Hennessy. There are closer to 30 brands in the wine and spirits division. The other half is primarily champagne, which actually grew – not robustly, I think by 3% in the quarter – but I think it was all on the cognac side, the drop, the negative.

“I think that [cognac] was hit hard in markets like China and North America because that aspirational consumer just isn’t spending with the same enthusiasm that the high net worth is.”

LVMH is the first big global luxury firm to report earnings this quarter, with Hermès and Kering due to report on 24 October.

The group’s chief executive, Bernaud Arnault, is the world’s second richest man. He had taken the top spot last December, overtaking Elon Musk, but the two swapped places again earlier this year.

Arnault, who co-founded the luxury goods group 35 years ago, has appointed his children to key roles within the business. Earlier this year, his eldest child, Delphine, was named the head of Christian Dior, the second-biggest brand in the empire, while her brother Antoine was promoted to run the holding company that controls LVMH and the Arnault family fortune.

His three younger children also have important jobs within the company. Alexandre Arnault is an executive at Tiffany, Frédéric Arnault is the chief executive of TAG Heuer, while their youngest sibling, Jean Arnault, heads marketing and product development for Louis Vuitton’s watches division.

The LVMH results came as accounts for Selfridges showed the upmarket department store chain had experienced a 29% rise in revenue to £844m for the year to 28 January.

The company said the improved performance had been “driven by strong footfall and sales through the company’s physical stores, particularly Oxford Street in London and Exchange Square in Manchester”.

Alice Price, Apparel Analyst at GlobalData, a leading data and analytics company, offers her view on the news: “After a stellar performance in recent years, LVMH proves that not even luxury brands are immune to the challenging economic environment, with its reported group revenue in Q3 FY2023 growing by just 1.1% to €20.0bn, a marked slowdown from the growths of 16.8% and 13.2% recorded in Q1 and Q2 respectively. Revenue for the nine months to the end of September rose by 10.1%, and while the group affirmed its confidence in delivering continued growth for the rest of the financial year, it seems likely that a similar deceleration could be experienced throughout the brand’s final quarter.

“LVMH’s slowdown can be attributed to the ongoing inflationary pressures in Europe and the US, which is inhibiting spend among aspirational shoppers, with these regions experiencing organic revenue growth of just 7% and 2% respectively. Previously, these consumers had been protected by savings accrued during the pandemic and government stimulus payments issued in the US, enabling them to splash out on luxury goods. However, with savings beginning to dwindle, exacerbated by the pressure of increasing costs, these products are gradually becoming out of reach for many. Europe’s more resilient performance than the US can be attributed to the return of international tourism, with shoppers capitalizing on favourable exchange rates to purchase luxury goods. Japan and the rest of Asia continued to report double-digit growth, with revenue rising by 30% and 11% respectively, driven by the rapidly growing middle class population and pent up demand for high-end goods after many countries in the region eased their lockdown restrictions at the end of 2022.

“The group’s Wines and Spirits division was its worst performer, with reported revenue declining by 20.5%, attributed to weak sales in the US and a post-pandemic normalization in demand. In contrast, its Selective Retailing division, which includes Sephora and DFS airport stores, drove growth, with revenue rising by 17.6%. Sephora had a strong performance in North America, Europe, and the Middle East, aided by its unparalleled offering of cult beauty brands. Following the success of Sephora’s Westfield London store, which opened in March 2023 and regularly experiences long queues, in July 2023 the group also announced the opening of a second store in the city later this year, giving scope for the brand to gain further market share in the UK.

“LVMH’s Fashion and Leather Goods division grew 0.7% to €9.8bn, a significant step back from its Q1 and Q2 performance, when it reported double-digit growth of 17.6% and 15.8% respectively. In order to weather this storm, LVMH must continue to focus on star brand Louis Vuitton and its influence over the lucrative Gen Z demographic. Louis Vuitton should prioritise the launch of innovative collaborations to gain visibility among these shoppers and encourage spend, with its ongoing partnership with artist Yayoi Kusama a notable example, having received widespread attention on social media for its eye-catching polka dot designs.”

USA News Group – With hundreds of major corporations fast approaching their self-implemented Net Zero goals in the years ahead, the Wall Street Journal is reporting that today’s surplus in carbon credits could soon turn into an expensive shortage. The market is already seeing signs of movement in the carbon offsets market, as global carbon markets surged to a record $851 billion in 2021, and is slated to grow at a CAGR of +30% to reach $2.4 trillion through 2027. Outward ESG-based pressure from funds such as BlackRock, Inc. (NYSE:BLK) is shifting carbon credits from a side hustle to big business for companies such as Salesforce, Inc. (NYSE:CRM) (NEO:CRM), Tesla, Inc. (NASDAQ:TSLA) (NEO:TSLA), Brookfield Renewable Partners L.P. (NYSE:BEP, BEPC), and Scope Carbon Corp. (CSE:SCPE).

Despite record demand for carbon credits in 2021, that demand has been outpaced by new offsets supplies coming online, which has kept downward pressure on carbon credits prices. But for those in the business of generating more credits, the industry is gaining efficiencies both in spotting opportunities and in measurement accuracy.

This is where behind-the-scenes operators like Scope Carbon Corp. (CSE:SCPE) are helping landowners large and small to maximize their carbon credit contributions. Built upon a platform of state-of-the-art technology that includes long-range drones, servers, and AI data analysis, Scope Carbon is much like a picks and shovels play in the carbon credit space, aiding those who are producing the credits within their own operations. By utilizing Scope’s tech, these ranchers, farmers, and landowners can maximize their carbon sequestration capabilities.

For now, located primarily in the Canadian province of Alberta, Scope Carbon is providing accurate identification of the characteristics of forests, trees, underbrush, ground and related surfaces, which forms a material part of the overall carbon credit certification process.

Recently, the company entered into a product development agreement with Marsman Limited, which has a development team led by Martin Ma, a former early key employee of the Alibaba Group.

“Scope is at the forefront of a rapidly expanding industry and our goal is for Scope’s Technology to become an essential tool for project developers of carbon credits and corporations looking towards establishing a net zero footprint,” said James Liang, CEO of Scope. “We believe the Company’s partnership with Marsman will only enrich the development of the Technology and we looking forward to working and learning alongside out partner Martin Ma and his Alibaba team.”

Software giant Salesforce, Inc. (NYSE:CRM) (NEO:CRM) also recently entered the carbon-credit business, with the intent to compete with various trading platforms and plans to sell to its existing network of clients. The business-software provider recently announced its first-of-its-kind carbon credit marketplace, developed to empower any organization to take climate action on their journey to Net Zero.

Dubbed as its Net Zero Marketplace, the platform will offer nearly 90 projects across 11 countries throughout Africa, Australia, Europe, Latin America, and the United States. Buyers will be able to see project descriptions, alignment with the UN Sustainable Development Goals, and, for many, official third-party ratings at launch.

Among the groups providing carbon credits at launch are Climate Impact Partners, Cloverly, Lune, Pachama, Native, A Public Benefit Corporation, Respira International, and South Pole; as well as third-party rating companies Calyx Global and Sylvera; and curated climate portfolio provider CO2.com all joining as inaugural partners.

“Partnering with Salesforce to create this Marketplace will turbocharge climate action and empower every company—large and small—to take responsibility for its emissions ,” said Renat Heuberger, CEO of South Pole. “We are proud to provide high quality offsets to clients who understand the value of compensating for their impact on the environment.”

After already having invested or allocated $3.5 billion in North America’s clean energy sector this year, Brookfield Renewable Partners L.P. (NYSE:BEP, BEPC) recently announced its intent to invest another $2 billion into acquiring both Scout Clean Energy and Standard Solar.

The acquisitions follow a string of recent clean energy investments by Brookfield Renewable that included an exclusive right to invest up to $750 million on a project by project basis into Entropy Inc. and a JV with California Resource Corporation, two leading carbon capture and sequestration platforms in Alberta and California respectively.

“We see an immense opportunity both from a financial perspective but also to buy us time in the carbon budget…[for] the cost of other decarbonization technologies to come down,” said Natalie Adomait, Managing Partner at Brookfield’s renewable power and transition group in an interview with Wall Street Journal. “Carbon-capture technology has been used specifically for enhanced oil recovery in the past, but it has allowed that technology to become proven and well understood so that it can be deployed in a very material way today.”

In terms of meeting the standards for receiving (and selling) carbon credits, Tesla, Inc. (NASDAQ:TSLA) (NEO:TSLA) has been one of the most prominent in the world. Though sales of its carbon credits were down 49% in Q2 2022, selling carbon credits made a significant contribution to Tesla turning its first full-year profit in 2020, bringing in $1.58 billion from regulatory credit payments from other automakers alone.

US President Joe Biden’s Inflation Reduction Act includes tax credits for EVs, especially for those with a set percentage of raw materials sourced from the US, free trade partners or from recycling.

Moving up the supply chain is said to be a major strategy of Tesla, seen as necessary to meet the automaker’s ambition to sell 20 million electric cars by 2030. As the industry frontrunner in securing battery raw materials Tesla is pushing other incumbent automakers to step up their own efforts to secure resources by going directly to producers.

By 2050, large-scale asset managers including BlackRock, Inc. (NYSE:BLK), Vanguard, and 85 others) managing more than $37 trillion in assets are targeting Net-Zero emissions across ALL of their holdings. However, whether they can sustain their ESG initiatives is up in the air, as Blackrock’s focus on environmental, social and governance principles have been deemed to be becoming increasingly riskier, according to analysts at UBS.

As the world’s largest money manager, BlackRock is facing scrutiny, while being more vocal about being a big energy investor in traditional oil and gas companies, leading to more pushback from climate investors also. On the other side, attorneys general from 19 US states sent a letter to the asset management giant arguing that ESG investing damages energy companies by pushing for lower carbon emissions, raising the question of whether investor pressure violates antitrust laws.

“While couched in language about long-term value, BlackRock’s alignment of engagement priorities with environmental and social goals, such as the UN’s Sustainable Development Goals, suggests at a minimum a mixed motive,” the letter said. “BlackRock’s actions appear to intentionally restrain and harm the competitiveness of the energy markets.″

As more companies are pushed to acquire carbon credits to meet their Net Zero goals, the drive to generate more credits will continue, as a shortage likely looms ahead.

Article Source: https://usanewsgroup.com/2022/10/03/in-the-next-5-years-the-carbon-credits-market-is-projected-to-be-worth-trillions/

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New report outlines the social, mental and emotional benefits of gameplay according to academic research and affirmed by a survey of nearly 13,000 active players across 12 countries.

WASHINGTON–(BUSINESS WIRE)–The Entertainment Software Association (ESA), in partnership with video game trade associations in Australia, Canada, Europe and South Korea, today released the first-ever Power of Play report. The report highlights the findings from peer-reviewed academic research about the positive effects of gameplay, which are confirmed by a survey of 12,847 active (weekly) players (ages 16 and older) in 12 countries: Australia, Brazil, Canada, France, Germany, Italy, Japan, Poland, South Korea, Spain, the United Kingdom and the United States. The survey revealed that in addition to entertainment, video games provide players with a number of social and emotional benefits that are shared on a global level.

Having fun is the top reason people play video games (69% of global players), but they also play for a variety of other reasons including to keep one’s mind sharp (36%) and because playing games offers the ability to explore new worlds and ideas (27%). Nearly a quarter of respondents (24%) globally say they play video games to manage and/or improve their mental health. In all 12 countries, 71% of respondents said playing video games helps them feel less stressed. In the U.S., 78% of respondents said the same, pointing out that video games also help them feel less anxious (68%) and less isolated/lonely by connecting them to others (53%). Of the countries surveyed, only Brazil had a greater number of respondents than the U.S. saying video games help them feel less stressed (87%) and less anxious (78%).

“The Power of Play report affirms globally what we already knew to be true in the United States: video games have the power to transcend entertainment,” said Stanley Pierre-Louis, President and CEO of the ESA. “The social and emotional benefits of video gameplay are felt by a global, diverse group of players that build communities and have the power to affect positive change in each other’s lives.”

More than half (52%) of global players say video games helped them get through difficult times in their lives, with that number increasing to 59% for U.S. respondents. Players also agree that video games provide other mental health benefits:

• About 75% of global players believe video games provide mental stimulation and stress relief.
• Nearly two-thirds also find that video games provide them with a healthy outlet from everyday challenges (64%) and help them feel happier (63%). Players in Brazil (83%) and Poland (76%) were most likely to say games help them feel happier, with U.S. players at 71%.

Crossing geographic borders, video games also provide a platform for community building where otherwise not physically possible:

• More than half of global respondents (51%) say they play games with other people online and 38% play with other people in person weekly, with 68% across all markets rating their experience of playing with others – both online and in person – as positive or extremely positive.
• More than two-thirds (67%) of global players agree video games introduce people to new friends and new relationships. This number was highest in Brazil (86%), lowest in Japan (47%) and close to the global average in the U.S. (71%). Nearly half (42%) of global players have met a good friend, spouse or significant other through video games.
• More than three-quarters (77%) of global players agree video games bring different types of people together and nearly two-thirds (60%) say video games create a feeling of community.

People are not only skilled game players, but they also say they have gained valuable life skills applicable outside of the virtual world of video games:

• Nearly three-quarters of global players (73%) agree video games can improve creativity (78% of U.S. respondents said the same).
• Across the world, 69% of players agree video games build problem-solving, cognitive and teamwork and collaboration skills, with 84% of U.S. players saying video games improve problem-solving skills.
• Video games also promote adaptability and communications skills with 65% and 60% of global players agreeing, respectively.

Other noteworthy results from the global Power of Play report include:

• On a weekly basis, people tend to play mostly by themselves (87% globally, 90% in the U.S.) but also make time to enjoy gameplay with others online (51% globally, 52% U.S.) and in-person (38% globally and in the U.S.). Players in Brazil (62%), Poland (46%) and South Korea (45%) are the most likely to play with others in person.
• More than a quarter (28%) of global players say they never use in-game communication functions while just 8% say they always use them.
• Of global players, 75% believe there is a video game for everyone.

Access the Power of Play report at www.theesa.com/power-of-play-2023/.

About the ESA

The Entertainment Software Association (ESA) serves as the voice and advocate for the U.S. video game industry. Its members are the innovators, creators, publishers and business leaders that are reimagining entertainment and transforming how we interact, learn, connect and play. The ESA works to expand and protect the dynamic marketplace for video games through innovative and engaging initiatives that showcase the positive impact of video games on people, culture and the economy. For more information, visit the ESA’s website or follow the ESA on Twitter @theESA.

About the Power of Play Report Methodology

AudienceNet conducted an interactive online survey of 12,847 respondents in 12 countries. In each country, respondents were recruited via a screening survey sent out in accordance with quota samples that were statistically and demographically representative of the respective 16 year+ online populations. The screening questions ensured that, in each country, there was a final sample of 1,000+ active gamers, all of whom played video games for at least an hour per week. All survey respondents were accessed through professionally accredited consumer research panels.

AudienceNet is a fully accredited global consumer research company, currently conducting nationally representative research in 52 countries. As a Market Research Society (MRS) Company Partner, AudienceNet is bound by the MRS Code of Conduct, as well as GDPR in relation to the collection and handling of consumer research data.

Contacts

Crosby Armstrong

[email protected]
202-903-2318

• Report highlights stark finding that IoT success is being jeopardised as only 1% of firms are achieving ubiquitous global connectivity
• Supplier decisions that aren’t based on value are negatively impacting businesses with 71% agreeing[1] that cheap IoT connectivity providers, such as those purely selling SIMs and data, aren’t a good long-term investment
• The EV sector has the largest and fastest growing IoT estate with over half (58%) expecting their device numbers to grow by 100% or more in the next 18 months, but 71% of EV respondents experience hardware connection issues

A new State of IoT Adoption report launched today by Eseye, a leading global IoT connectivity solutions provider, revealed the shocking statistic that companies are settling for sub-standard IoT connectivity performance, with only 1% of respondents achieving better than 98% connectivity levels on average across their device estates.

In fact, only 16% of respondents are achieving more than 95% connectivity.

Mission-critical IoT devices require near-100% connectivity and the fact that companies are prepared to accept poor performance relative to the connectivity levels they could achieve is highly concerning. Imagine IoT health and medical devices losing their connection and the human impact that might have, or an EV charger failing because of ‘mediocre’ connectivity and the revenue lost as a result, not to mention stranded drivers. As a core belief, Eseye focuses on supporting mission critical IoT use cases, delivering resilient global connectivity to devices where customers experience near 100% uptime for every device anywhere in the world.

The study, commissioned by Eseye, and undertaken by independent research organisation, Opinion Matters, is the third annual State of IoT Adoption survey and the largest connectivity survey undertaken in the market, involving 1,009 senior decision makers in the UK and US across five different vertical sectors – EV charging and smart grid, healthcare and medical devices, manufacturing, supply chain and logistics and smart vending. It examines the challenges and opportunities that are hindering and helping IoT adoption, compares IoT growth by market and vertical, and reveals budget forecasts for the next two years.

The report highlights that respondents appeared satisfied with their service despite experiencing connectivity levels that are significantly below best practice. Businesses lack the technical knowledge to make the most of their IoT investment and are compromising their chances of success by settling for second-rate connectivity. While investment and device numbers are increasing, a failure to emphasise quality is holding the sector back.

Connectivity decisions should focus on long-term value

Nearly every respondent (95%) said that cost was an important aspect when choosing their connectivity provider. However, 71% admitted that cheap commodity SIM and data connectivity providers aren’t a good long-term investment, which suggests they may have been impacted in the past. This highlights the importance that value plays in IoT connectivity decisions. An example of this is that nearly all respondents (89%) agreed that an end-to-end services programme that gives them access to IoT services under one roof would be beneficial to their business.

Paul Marshall, Co-Founder and CCO, Eseye, comments on the findings: “It is shocking that businesses are prepared to compromise their goals and risk customer dissatisfaction or product failure because of sub-standard connectivity. In our eyes anything less than 100% is simply not good enough, which has been our mantra since day one and remains at the core of Eseye’s offering. As the survey suggests, IoT connectivity success is about more than just buying SIMs and data. Breadth and depth of global coverage matters – how many cellular networks do you truly have access to? Is that coverage resilient and reliable enough for your business case? In order to achieve near 100% ubiquitous global IoT connectivity, a unique blend of network capabilities, hardware, device optimisation and professional service expertise is required.”

Marshall continues, “Buyers may be unaware that their connectivity is subpar as they may not have a suitable benchmark, and are engaging in a false economy when cost is their top concern not value. The fact that buyers seem unaware that connectivity performance is even an issue clearly points to a need to better educate the market around what should be acceptable to deliver IoT success.”

Getting device design right – first time

The good news is that the majority of respondents (81%) expect the number of IoT devices in the field will increase over the next 18 months and nearly three quarters (72%) are planning to increase their IoT budgets in the next two years. However, respondents know all too well that unlocking success and getting it right leads to even greater success, which is why it is so important to get connectivity and device design right – first time.

There was consensus (81%) that getting the IoT device design right is key to an effective IoT project. Despite this, operational failures are often down to the device, with over two thirds (67%) of respondents saying that most of their IoT project failures are down to an issue at the device level. Worse still, they can’t find help when they need it. Almost three-quarters (72%) say that embedded firmware developers are hard to find and in short supply, for example.

Benchmarking project maturity against industry peers

Keen to measure the state of their IoT project, 9 out of 10 respondents said that it would be beneficial for their business if they could assess their IoT project’s level of maturity and compare where their project is at with their industry peers. Additionally, 95% of US respondents said it would be beneficial to assess IoT project maturity compared to 86% in the UK and 94% of US respondents said a monthly subscription service programme with all end-to-end IoT services under one roof would be beneficial, versus 84% in the UK.

Nick Earle, CEO, Eseye, comments: “Businesses need to understand where they are to get to where they want to be. They also need to demand more from IoT service providers, and a service model that emphasises quality at an affordable price point. They should be seeking end-to-end expertise incorporating device design, connectivity, and lasting value. At this crucial point in the sector’s development, second-best – in any aspect – is not good enough. Taking the time to assess a product’s maturity, and then investing in expertise to improve quality from first principles, is the necessary first step in today’s IoT projects.”

Earle continues, “A change of mindset is needed, where buyers understand the capabilities they are working with and invest in the right connectivity technology that will drive change for their unique business case. Increasing budgets allows IoT teams to invest in solving the problem by building connectivity-by-design into their products, rather than simply increasing the scale of inadequate devices.”

“This survey demonstrates that there is a lot of demand and support for IoT, but we need to capitalise on this by educating buyers and solving business problems rather than just throwing money at an inefficient model.”

[1] Research conducted by Opinion Matters between 03.08.2023 – 10.08.2023. The survey reached 1,009 respondents total (505 based in UK headquartered companies employing 500+ people plus 504 based in US headquartered companies employing 500+ people, who were senior decision makers and implementers of IoT strategy (who have undertaken at least 1 IoT project in the last 12 months), with IoT devices deployed across at least 3 countries and that connect through cellular networks. Opinion Matters abides by and employs members of the Market Research Society which is based on the ESOMAR principles.