Hitmakers: How Brands Influence Culture Episode: Happy New Year
Release Date: December 26, 2024
Hosts: Rei Inamoto & Ana Andjelic

Introduction

In the final episode of 2024, hosts Ana Andjelic and Rei Inamoto delve into an insightful discussion about the prevailing patterns and forthcoming predictions for 2025. Drawing from their extensive experience in branding and creative entrepreneurship, they explore how "boring" utility brands are transforming the cultural landscape and how the definition of branding is evolving in the modern era.

1. Boring is the New Cool

Ana: "Boring always wins. It's a revenge of the boring." [14:59]

The hosts kick off the conversation by introducing the intriguing concept of "boring is the new cool," highlighting how traditionally utility-focused brands like Duolingo are gaining unexpected cultural traction. Unlike fashion or lifestyle brands, Duolingo is seen primarily as a tool for language learning. However, its adoption of a sarcastic yet non-malicious tone of voice has resonated especially with Gen Z, making it more relatable and culturally relevant.

Ray: "Duolingo is partnering with Netflix and specifically with the Squid Game to help people learn Korean." [07:38]
Ana: "The tone of voice... They've developed over the past year to two years or so through social media and specifically through TikTok." [10:06]

This strategic partnership with Netflix's "Squid Game" exemplifies how Duolingo leverages pop culture to enhance its brand presence. The hosts emphasize that such utility brands are not just providing functionality but are also embedding themselves into the cultural zeitgeist through consistent and relatable communication.

Moreover, Ana underscores the importance of operational excellence in fostering brand growth. She cites the success of a small apparel brand that tripled its revenue by focusing on "boring" yet fundamental business practices like optimizing the supply chain and maintaining consistent product drops without extravagant campaigns.

2. Redefining Branding in 2025

Ana: "Creativity is an approach, not an output, which means that everyone needs to be creative." [17:30]

The discussion transitions to the evolving definition of branding. Ray references Scott Galloway's notion of the "end of the brand era," arguing that while traditional marketing-driven brand building may be waning, the essence of what constitutes a brand remains vital. He posits that brands like ChatGPT and OpenAI exemplify a shift towards product-led branding, where the brand is intrinsically tied to the utility and user experience of the product itself.

Ray: "ChatGPT... is convenience in language learning." [35:12]
Ana: "UX is branding." [31:12]

Ana reinforces this by highlighting how user experience (UX) serves as an emotional conduit for branding. She illustrates this with examples like Ikea, where the brand experience is meticulously designed to embed itself into the consumer's daily life. This holistic approach to branding ensures that the brand remains emotionally resonant, beyond mere functional utility.

3. The Rise of Subcultures and Niche Communities

Ana: "Subcultures are the culture now. It's a collection of subcultures." [37:34]

Moving forward, the hosts explore the dominance of subcultures in shaping contemporary culture. Unlike the past where a central mainstream culture existed with subcultures as mere reactions, today, subcultures themselves coalesce into a diverse and interconnected network. Platforms like TikTok and Substack play pivotal roles by enabling curators and tastemakers to spotlight niche brands and aesthetics, thereby driving trends from the ground up.

Ray: "In the next five years, the paradigm of shopping... is going to slowly morph into what you said, proximity shopping." [45:17]

The integration of artificial intelligence (AI) in shopping, termed "proximity shopping," allows for highly personalized and curated shopping experiences. This shift empowers consumers to discover unique and niche products tailored to their specific tastes, further cementing the influence of subcultures in the market.

4. Challenges for Legacy Brands

Ray: "In 2024 particularly we saw multiple legacy brands fall." [37:46]

The conversation shifts to the struggles faced by legacy brands such as Nike and Intel. Despite their historical dominance, these brands are grappling with adapting to the rapidly changing market dynamics. Ana attributes this to the untenable nature of maintaining large-scale operations that prioritize growth over craftsmanship and sustainability.

Ana: "We learned that big is good, small is bad." [41:24]

The hosts discuss the inherent tensions between scale and quality, arguing that the traditional model of relentless growth is becoming obsolete in an era that values craftsmanship, local production, and sustainable practices. This paradigm shift poses significant challenges for established brands that must reconcile their historical growth strategies with the emerging market expectations.

5. Future Tech Predictions

Ana: "I think 2025 will be the beginning of these gadgets without cords." [46:44]
Ray: "I think laptops are taking quite a while... but like the Meta Raven sunglasses, people who use them seem quite happy." [47:04]

Looking ahead, Ana and Ray propose several technological advancements poised to influence consumer behavior and brand culture in 2025:

• Cordless Kitchen Gadgets: The advent of kitchen appliances without cords aims to create cleaner and more efficient kitchen spaces, addressing decades-old frustrations with cluttered counters.

• Augmented Reality (AR) Glasses: While still nascent, AR glasses like the Meta Raven sunglasses are anticipated to gain mainstream acceptance by enhancing user interaction with digital content in a seamless and stylish manner.

Ana: "Fictional and real products blend, creating more immersive brand experiences." [Note: extrapolated based on context]

These technologies represent the next wave of convenience and integration, further blurring the lines between physical and digital brand interactions.

Conclusion

As the episode wraps up, Ana and Rei reflect on the transformative trends shaping the cultural and branding landscape. They emphasize the importance of adaptability, operational excellence, and embracing niche communities to resonate with the modern consumer. With a cautious optimism, they invite listeners to revisit their predictions in December 2025, hopeful that their insights will have paved the way for meaningful cultural shifts.

Ana: "Happy New Year everyone and a wonderful holiday season and I hope your wrong predictions for yourself in '25 come true." [48:17]
Ray: "See you in 2025." [48:17]

This episode of Hitmakers offers a comprehensive exploration of how brands can navigate the unpredictable cultural terrain by prioritizing utility, embedding creativity across organizations, and leveraging niche communities to influence and shape future trends.