In 2017, astronomers in Maui spotted a mysterious object moving very fast around the sun. They observed it for two months before it disappeared out of sight. They think it came from another star far far away, outside the solar system. So they gave it a poetic Hawaiian name, ‘Oumuamua’, meaning messenger. Some even speculate it might be alien technology!
The likely truth is just as fascinating. A new theory proposes that Oumuamua is a piece of frozen nitrogen ice, originally from an exoplanet in orbit around its star, much like Pluto orbits our sun. A collision of planets ejected this chunk of the exoplanet out of its original solar system. It then spent the last half a billion years or so travelling through space, until it happened to visit our solar system and be spotted by earthlings in 2017.
Isn’t it amazing that from brief observations of a tiny fuzzy blob in telescopes, scientists can work backwards and deduce all these details? Science is fun. :) – LHL
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Appetite growing for classy takeovers
Louis Vuitton handbags, Krug champagne, Bulgari watches and Crystal Jade Xiao Long Bao. Can you spot the odd one out?
Singapore-based Crystal Jade is being taken over by French luxury group LVMH's private equity arm, L Capital Asia. Xiao Long Bao is perhaps a consumer product more valuable than we thought.
It is easy to speculate why the owner of Crystal Jade wants to sell. Ip Yiu Tung is 65, his restaurants are operating in 114 locations and it is rumored that L Capital offered US$100 million (HK$780 million), which is not bad as a retirement fund.
The question remains as to why L Capital is venturing into the food and beverage industry. Its parent company is no stranger to the F&B industry as it owns some of the best wines and spirits. Xiao Long Bao, however, is not in the same class of consumer products. Among Chinese gourmands, Xiao Long Bao is hardly considered fine food for the affluent.
In the 20th century, the F&B industry underwent a revolution and it adopted the methods of mass manufacture, creating the fast food phenomenon.
Entering the post-industrial age, fast food is being replaced by newcomers, including Starbucks and Chipotle Mexican Grill, offering at a slight premium, affordable fine food which is deemed to be more healthy and environmentally friendly.
Why can't Xiao Long Bao become the Chinese version of Chipotle? Perhaps the Michelin-starred dim sum restaurant Tim Ho Wan will be the next to be acquired?
Gone are the days when economies of scale meant competitive advantage. Consumers ask for more than a good price, they want products mixed to their respective class standing.
In economics, there is a catchphrase "Veblen goods" meaning commodities are priced corresponding to the economic class of the consumers. The idea of Veblen goods, or positional goods, was first introduced in 1976 by Fred Hirsch.
Marketers had been experimenting with the idea but it was not until very recently that it became a massive phenomenon.
It is being mimicked all over the world, and Xiao Long Bao is unlikely to be the last. Who will be the next? TWG Tea? Perhaps the famous macarons by Pierre Herme?
Friday, May 02, 2014
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