Globalism - the Explosion of Siberian Malls

Siberian%20Ikea.jpgThe impact of globalism is obvious when considering the mega development of malls occurring across Russia. Yes Russia; and not just any place in the former USSR. Siberia, where Russians waited in long lines to buy food with ration cards not long ago, is experiencing a huge mall boom. Russia is projected to open twice as much mall space as any other European country this year, and Europe will open more shopping centers this year than ever. As retail businesses shrink in the United States, provincial Russian towns have become targets of retailers and shopping center developers from around the world. Malls in this area of the world are even poaching managers from as far away as California.

Across the great expanse of Russia, on plots cleared of birch groves and decrepit factories, on the territory of old airports and collective farms, big-box stores are rising at a rate of several a month.  While malls are nothing new in Moscow; 38 malls are planned to open before 2010. In a sign of how trickle-down petroleum money appeals to retailers, at a time of record oil prices, Russian developers opened over 4.6 million square meters, or 49 million square feet, of retail space in shopping centers in the second half of 2007 and so far in 2008, according to Cushman & Wakefield, a real estate company. That is more than double the new shopping center area planned in Poland, the European country with the second-largest pipeline of malls in development.

Developers are turning to the 12 provincial cities in Russia with populations over one million, islands of prosperity with population inflows from rural migration and rising purchasing power, ripe for malls. This retail strategy is known here as the “millions,” and is embraced by leading Western retailers including Ikea and Auchan, the French food chain.

Education - Student Text Books Meet the Revolution

freetextbooks.pngU.S.-based Freeload Press provides free college textbooks in electronic form with advertisements inserted at chapter breaks. Inexpensive print-on-demand versions with no ads can be ordered for about USD 30. 'Customers' include students at four-year and two-year colleges throughout the U.S. and Canada. Freeload publishes primarily business and finance books. Students who register and complete a survey on Freeload's website can download a free PDF version of their textbook. Advertisers include Discover Card, PricewaterhouseCoopers and the College Loan Corporation.

In Europe, Danish Ventus Publishing runs a similar concept in 5 countries: (Denmark, Sweden, Germany, the Netherlands and Belgium). Ventus offers titles in the fields of economics, science and engineering, featuring ads from companies such as T-Mobile, British Airways and Deutsche Bank every four pages.

Tim Ferriss and Lifestyle Design - Quality vs. Quantity

Tim%20Ferriss.jpgA wonderful thing about the revolution is that it creates more choices for people. This is made very clear by Tom Ferriss in his blog and in his book, the Four Hour Work Week Tim does a great job reflecting on how to use technology, globalism and personal choice to design a quality lifestyle that is less about consumption and more about enjoying a fulfilled life and creating a better world. Read it

Consumerism and Obesity - A Basis for a New Industrial Revolution

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The industrial revolution at its core created the ability to leverage economies of scale through new production technologies. Central to this paradigm was separating producers from their source of production, thus increasing the efficiency of production and simultaneously creating consumers of goods. The industrial revolution "systematized" processes to create "things" more efficiently. As the industrial revolution spreads across the world, however, we are realizing the consequences of its global application.

 "Consumerism" grew rapidly as the people of an increasingly industrialized world were marketed to in order to spur on increasing consumption of goods. Increases sales are necessary to perpetuate the system. Over the past century this trend is increasingly evident as world consumption has expanded at an unprecedented pace, with private and public consumption expenditures ..”reaching $24 trillion in 1998, twice the level of 1975 and six times that of 1950. In 1900 real consumption expenditure was barely $1.5 trillion” (Doyle). The idea was that humanity would benefit from improved lifestyles and life quality from the industrialized system's efficient concentration of production and consumption. However, the reality is beginning to hit home that never ending increases in production and consumption are unsustainable as the world becomes more developed. The notion that more is better is coming unglued. Now it is more important that we figure out how to use what we have. The industrial revolution is becoming a less relevant solution; thus the dawn of new solutions.

Examples of over consumption and unsustainable systems that evolved from the industrial and consumer society are every where. The global obesity epidemic is an excellent example.  The number of overweight people rivals the number of underweight people for the first time in history.While the world’s underfed population has declined slightly since 1980 to 1.1 billion, the number of overweight people has surged to 1.1 billion.The  population of overweight people has expanded rapidly in recent decades, more than offsetting the health gains from the modest decline in hunger. In the United States, 55 percent of adults are overweight by international standards. A whopping 23 percent of American adults are considered obese. And the trend is spreading to children as well, with one in five American kids now classified as overweight.… Obesity cost the United States 12 percent of the national health care budget in the late 1990s, $118 billion, more than double the $47 billion attributable to smoking and its has only become worse.

At its current growth rate, the amount of grain and paper that China would need in 25 years’  time equals 70% of all grain production in the world and 200% of paper production. More oil will  be consumed at that time than all of the global oil production of today put together. The UN and the World Bank recently issued an extensive report on the state of the world.  It did not make for an amusing read.

Out of the 25 natural resources sustaining life on Earth, nearly 20 are endangered. If every single person in the world consumed like Europeans do, it would take more than two Earths to sustain it. Americans consume even more, at a rate according to the same calculation would require four Earths.

The consumption rate of the world cannot continue and it is necessary that the foundations of the industrial revolution be undone. We cannot proceed on the basis of more is better. We are moving towards a new revolution, this time directed by the limits of our planet and the many associated risks of our consumerism practices.The era of the new revolution will ultimately eliminate at its core what the industrial era advanced - segregating producers from their means to produce thereby driving consumers to consume more than they need in order to maintain an inefficient production system that cannot be sustained.

The Media Revolution - TV is Dying Before Your Eyes and That's a Good Thing

Television%20is%20bad.gifSee my prior post on the death of the media and the prosumer. The death of traditional media is approaching as consumers of television are increasingly watching video online. In the past year researchers tracked a seismic shift in the amount of video Americans watched on the World Wide Web,  up 66 percent, according to comScore. Americans watched 10 billion videos in the month of February alone, said the rating service. "The numbers will climb even higher to huge levels in just a few years," said Adriana Waterston of the market research firm Horowitz According to comScore, 72.8 percent of the entire U.S. Internet audience viewed online video in February of 2008 during the same month, 80.4 million viewers watched 3.42 billion videos on YouTube, according to comScore. That's 42.6 videos per viewer.

The television industry, defenders of the old distribution scheme, assert that seventy percent of Internet users who watch TV online say it's because they missed the episode on regular TV, according to Horowitz Associates.Perhaps this gives them some comfort - why then all the rush to get to market with their own channels on the World Wide Web? The truth is that as more people learn of the benefits of relying on the internet to obtain their content, there will be a strong shift away from viewing content because you missed something on television. Yet another battle between the media conglomerates of the old and the evolving revolution.

TV meant limited choice and an inability to control when, where, what and how you consumed content. The realization of this shift from tradiational television to free online video changes consumer viewing habits because it offers better alternatives to TV. Even now, a 9-year-old boy in Georgia will turn to YouTube for new episodes of Japan's action anime "Naruto," which are unavailable on U.S. TV. In Indiana, a viewer who canceled her cable TV because she's fed up with multiple commercials can go online at CBS.com to watch "CSI" -- with fewer ads. On CNN.com, viewers can watch virtually every prepared report that now airs on CNN's TV networks.

What is more profound about this shift is that it represents a change in how consumers of content are changing the way they consume. The shift is to shorter more tailored content, the effect of which will being to become more evident as time goes by.