The Sociology of Business is a newsletter about how consumers' shifting status symbols change business and brand strategy. These shifting status symbols, like taste, aesthetic innovation, curation or environmentalism create the modern aspirational economy.
In contrast to traditional economy, where consumers signaled their status through collecting commodities, Instagram followers, airline miles, and busy back-to-back schedules, in the modern aspirational economy they convey it through collecting knowledge, taste, micro-communities, and influence.
This new capital changes the way businesses and entire markets operate, yet the modern aspirational economy is still an understudied area in business and culture. The Sociology of Business aims to change that.
Here, you will find examples, analyses and tools on how brands can successfully grow in the modern aspirational economy. You will learn to shift your brand narrative and competitive strategy, to create and distribute new brand symbols, and to ensure that your brand’s products and services create both monetary and social value.
It is not only business savvy, but also socially urgent that brands start trading in the modern aspiration economy. Overproduction and air travel are killing our planet, and social media addiction and busyness are killing us.
Accumulating commodities and counting air miles and social media likes are aspiration symbols that reward the bad behavior of companies and individuals. We need a new narrative of success, and brands are uniquely positioned to carry it out. By their very nature, brands trade in status: they promise us to be younger, more attractive, smarter, happier, more accomplished, richer. For the longest time, brands operated according to the Veblen logic that status is linked to wealth and desirability to price. Now we all have the opportunity to flip the script and link worth and values to our business success.
Companies have a lofty goal of building a brand so strong that everyone would want to wear a t-shirt with its logo on it, yet are still trapped in the manufacturing mindset, focused on monetization, efficiency, and productivity growth. There’s a disconnect in the value they aspire to create and the value they’re actually creating.
The Sociology of Business addresses this disconnect.
This newsletter will challenge you to think about how to create, distribute, and deliver social, cultural, and environmental capital when making your business and brand decisions:
Pay attention to how consumers spend their time, money and how they relate to each other, and how these social processes create new forms of cultural, social, and environmental capital
Understand that values create value: replace traditional status symbols and narratives of success and put forward environmentalism, social responsibility, and cultural knowledge as the new ones
Detect the social, cultural, and economic mood by spotting on inversions, contradictions, coincidences, and oddities in consumer behavior and culture
Address collective versus individual dimensions of consumer behavior: shift from targeting individuals to targeting communities
Build taste collectives around commercial symbols and grow through niches
Understand the benefits and differences between the three models of social influence and turn your products into shareable social symbols
Capitalize on social mimicry in the way you come up and scale your creative output
Root your brand strategy in one or more of the four Cs: Community, Content, Curation, and Collaborations
Understand that people consume through collecting: sneakers, likes, references, memes
Learn what business strategy can borrow from sociology
Email me at andjelicaaa at gmail dot com for my availability and rates for expert interviews, talks, webinars, fireside chats, Q&As, advisory services and consulting projects.
The sociology of business covers observations, latest news, case studies, analysis, strategy, and tactics in seven areas:
The Modern Aspiration Economy
Aspiration today ranges from Rolex to Louis Vuitton to Cartier to Sonos to Shinola to Kim Jones’ Dior collabs, to time, space, privacy, self-actualization, and to Blenheim Forge knives, who identify with the exceptional artisanal work and displays of human originality.
The idea of “hacking” culture is a play on the concept of growth hacking popular among the Silicon Valley startups that we use to point out that brands should pay attention not to trends, but to cultural, social, and economic mood.
Three Models of Social Influence
Thanks to platforms like Instagram and TikTok, consumer choice across categories is now more susceptible to social influence than to individual preferences. There are three models of social influence that marketers need to understand when/how best to use.
We are going through the imagined community renaissance, thanks to modern brands stepping in as the social constructs of belonging left vacant by traditional institutions of social cohesion, like organized religion, civil society institutions, and mass media. Consumer collectives are the new audience unit.
Mimicry as Taste
MSCHF viral products. Airspace. Instagram Face. Baby Yoda. Avenger Movies. Coffee Shops. Matching Pajama Sets. Social mimicry harmonizes our taste and creates social cohesion. Products become popular if/when they are shareable social symbols.
Flipping the Script
At the time of Veblen, brand strategy was simple: marketers aimed their communication at targets defined by their household income and purchasing habits and their messages encouraged consumption of commodities as a way to accrue status. Now they have the opportunity to flip the script by focusing on one or more of the 4Cs: content, community, collaborations, and curation.