Wednesday, January 10, 2018

The Strange Brands In Your Instagram Feed

It all started with an Instagram ad for a coat, the West Louis (TM) Business-Man Windproof Long Coat to be specific. It looked like a decent camel coat, not fancy but fine. And I’d been looking for one just that color, so when the ad touting the coat popped up and the price was in the double-digits, I figured: hey, a deal!

The brand, West Louis, seemed like another one of the small clothing companies that has me tagged in the vast Facebook-advertising ecosystem as someone who likes buying clothes: Faherty, Birdwell Beach Britches, Life After Denim, some wool underwear brand that claims I only need two pairs per week, sundry bootmakers.

Perhaps the copy on the West Louis site was a little much, claiming “West Louis is the perfection of modern gentlemen clothing,” but in a world where an oil company can claim to “fuel connections,” who was I to fault a small entrepreneur for some purple prose?

Several weeks later, the coat showed up in a black plastic bag emblazoned with the markings of China Post, that nation’s postal service. I tore it open and pulled out the coat. The material has the softness of a Las Vegas carpet and the rich sheen of a velour jumpsuit. The fabric is so synthetic, it could probably be refined into bunker fuel for a ship. It was, technically, the item I ordered, only shabbier than I expected in every aspect.

I went to the West Louis Instagram account and found 20 total posts, all made between June and October of 2017. Most are just pictures of clothes. Doing a reverse image search, it’s clear that the Business-Man Windproof Long Coat is sold throughout the world on a variety of retail websites. Another sweatshirt I purchased through Instagram—I tracked down no less than 15 shops selling the identical item. I bought mine from Thecuttedge.life, but I could have gotten it from Gonthwid, Hzijue, Romwe, HypeClothing, Manvestment, Ladae Picassa, or Kovfee. Each very lightly brands the sweathshirt as its own, but features identical pictures of a mustachioed, tattooed model. That a decent percentage of the brands are unpronounceable in English just adds to the covfefe of it all.

All these sites use a platform called Shopify, which is like the Wordpress or Blogger of e-commerce, enabling completely turnkey online stores. Now, it has over 500,000 merchants, a number that’s grown 74 percent per year over the last five years. On the big shopping days around Thanksgiving, they were doing $1 million dollars in transactions per minute. And the “vast majority” of the stores on the service are small to medium-sized businesses, the company told me.

Shopify serves as the base layer for an emerging ecosystem that solders digital advertising through Facebook onto the world of Asian manufacturers and wholesalers who rep their companies on Alibaba and its foreigner-friendly counterpart, AliExpress.

It’s a fascinating new retail world, a mutation of globalized capitalism that’s been growing in the cracks of mainstream commerce.

Here’s how it works.

“What is up everybody?!” a fresh-faced man with messy brown hair shouts into the camera. Behind him, two computers sit open on a white desk in a white room. By the looks of him, he might not be an adult, but he has already learned to look directly into the camera when delivering the ever-appealing gospel of Easy Money on the Internet.

“In this challenge, I’m going to take a brand new Shopify store to over one thousand dollars,” he says. “So I invite you to follow along with me as I take this brand new store from 0, literally 0, to over one thousand dollars in the next 7 days.”

In the corner of YouTube dedicated to e-commerce, these videos are a bit of a phenomenon, racking up hundreds of thousands of views for highly detailed explanations of how to set up an e-commerce shop on the Internet.

Their star is Rory Ganon. Though his accent is Irish (“tousand”), his diction is pure LA YouTuber. He’s repetitive, makes quick cuts, and delivers every line with the conviction of youth. He appears to live in Ratoath, a small Irish commuter town about half an hour outside Dublin. His Facebook page describes him as a 17-year-old entrepreneur.

His success finding an audience seems predicated on the fact that when he says he’s going to show you everything, he really is going to show you everything. Like, you will watch his screen as he goes about setting up a store, so anyone can follow along at home. He’s a Bob Ross of e-commerce.

These techniques work the same for him as for Gucci. Some Instagram retailers are legit brands with employees and products. Others are simply middlemen for Chinese goods, built in bedrooms, and launched with no capital or inventory. All of them have been pulled into existence by the power of Instagram and Facebook ads combined with a suite of e-commerce tools based around Shopify.

The products don’t matter to the system, nor do they matter to Ganon. The whole idea of retail gets inverted in his videos. What he actually sells in his stores is secondary to how he does it. It’s as if he squirts hot dogs on his ketchup and mustard.

What Ganon does is pick suppliers he’ll never know to ship products he’ll never touch. All his effort goes into creating ads to capture prospective customers, and then optimizing a digital environment that encourages them to buy whatever piece of crap he’s put in front of them.

And he is not alone. (...)

Ganon’s videos are particularly fascinating in describing the mechanics of digital advertising through Instagram and Facebook.

In the tutorial, he briefly discusses finding a niche for the products in your store, and he uses some business school powerpoint terms. But when he actually selects a niche, it is Lions. That’s right: Lions, the animals.

by Alexis C. Madrigal, The Atlantic |  Read more:
Image: Alexis Madrigal