The Notebook: Has London revived its rave scene?
Where the City’s movers and shakers have their say. Today, Susannah Streeter, head of money and markets at Hargreaves Lansdown, takes the Notebook pen to have her say on the Tiktok ban, Shein’s search for a float, and London’s new rave scene.
Tiktok ban sparks fury
The extent to which social media networks have become such an integral part of business infrastructure has been laid bare by the proposed US ban on Tiktok.
As the Chinese owner Bytedance threatens to axe the insanely popular platform in America rather than be forced into selling the company, it’s sent shockwaves through the entrepreneurial communities that have relied solely on the app for sales. If you look up the Swan Lake rage trend on Tiktok it seems to summarise the fury some of those small business owners feel right now.
Protecting the ingredients of its secret sauce algorithm are more important to Bytedance dominating the US socials scene. It’s a reminder to entrepreneurs to diversify as they grow and build communities on multiple platforms. After all, even though Tiktok boasts more than a billion users worldwide, it operates at a loss. It’s clearly a precarious platform to rely on, however much users are glued to streams of dancing cowboys or illusionists on broomsticks, right now.
It also shows the extent to which the fresh splintering of trade relations between the US and China is affecting everything from semiconductor chip sales and AI development to social media streams. The likelihood of even more delineated US and Chinese spheres of influence across the world is higher, so brace for fresh geo-political fracture ahead.
Free parties – the new raves
The demise of urban night life has been much lamented of late and the number of clubs closing their doors has soared, particularly in London. The latest data from the Night Time Industries Association show that more than 3,000 businesses have closed in the capital and surrounding areas since the pandemic. The worry is that the loss of so many venues will lead to a demise of creativity. However, it coincides with a return to rave culture, demonstrating that young people aren’t giving up on making and enjoying music. They’re just finding cheaper ways to enjoy themselves.
Instead of raves we now have ‘free parties’, often sparked by flash mobs and led by talented amateur DJs whipping up the crowds in makeshift venues, like the Bristol Ikea showroom that was briefly and amicably taken over in March. It’s like we’re in a time warp to 1990, with the economy on the edge of recession and frugal teenagers determined to ensure the beat goes on.
Shein’s refocus on cut-price London
Given the increasingly fraught economic relations between the US and China, it seems increasingly unlikely that Shein will be allowed to list in New York. So, could it look to cut-price London for its foray into public markets?
Despite the recent run of the FTSE 100 up to record highs, UK assets are still considered undervalued, partly still languishing under the Brexit effect. For a fast fashion giant, renowned for its impossibly low prices, it might seem a good fit.
But the London Stock Exchange, which has maintained a reputation for good governance, should be wary of accepting Shein with its questionable supply-chain ethics, as a candidate. If it does list, investors would be wise to proceed with deep caution, given the potential that environmental and social reputation issues are likely to rear their heads in the future.
Vinted turns a profit
While some consumers seem intent on continuing to power the revenues of China’s fast fashion giants, change is afoot. The huge popularity of resale site Vinted was evident as it strode into profitability this week. It’s a sign of the pre-loved fashion zeitgeist.
Lithuania-based Vinted hasn’t just become a money spinner for cash-strapped teenagers across Europe, it’s also browsed by fashion followers with much fatter wallets. Cost of living pressures have put more eyes on screens, with shoppers keen to sniff out a bargain, but the desire to live and shop more sustainability is also growing. This has been recognised by the fast fashion giant Primark, which now has pre-loved franchises in store. Chinese giants Shein and Temu may still be flooding the market with cheap goods, but fashionistas are increasingly brandishing their eco-credentials.
Homegrown treasure troves
Instead of ransacking wardrobes for unwanted fashions, sorting out the drawers of doom to find discarded electrical items is likely to be a better money-spinner.
Copper has soared in price since February, pushed sharply higher amid concerns about supply risks at mines and also improving prospects for the metal’s use in the energy transition. The demand for copper for everything from wind turbines to electrical charging stations is partly behind the interest of BHP, the world’s largest listed miner, in Anglo American.
Sought-after metals and minerals are lying, unused around our homes, in cables, chargers and the phones themselves. The not-for-profit organisation Material Focus aims to change that with its campaign Recycle Your Electricals.
On Hargreaves Lansdown’s upcoming Switch Your Money On podcast, executive director Scott Butler told me about the scale of this undiscovered treasure trove. Some 880m tech items are hoarded in the UK; the average household has £1,000 of unused, functioning tech lying discarded, and it’s estimated that, in total, £1bn of metal is stored in homes across the UK. Now if that doesn’t prompt a spring sort-out, nothing will.
Quote of the week:
880m tech items are hoarded in the UK, the average household has £1,000 of unused working tech laying discarded, and it’s estimated that in total £1bn of metal is stored in homes across the UK.
Scott Butler, Material Focus