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48 pages 1 hour read

Naomi Klein

No Logo

Nonfiction | Book | Adult | Published in 2000

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Part 2Chapter Summaries & Analyses

Part 2: “No Choice”

Part 2, Chapter 6 Summary: “Brand Bombing: Franchises in the Age of the Superbrand”

In Chapter 6, Klein introduces two of the three factors that she believes have caused the immense of growth of big-box corporate chains since the late 1980s and early 1990s (132). These are (1) the Walmart model of pricing and (2) the Starbucks model of store clustering.

 

With respect to the first fact, Klein argues that the central innovation of Walmart within the retail sector has been to create unusually large stores located on cheap suburban real estate which are able to hold a vast array of goods in bulk quantities (133-35). By buying so much more from wholesalers than its competitors do, Walmart can offer a greater selection of products at lower prices than anyone else. The result is a virtual monopoly that eventually destroys competition from smaller, local stores. Examples of similar “category killers,” that is, franchises that become singularly dominant in their area of retail, include Home Depot, Office Depot, and Bed Bath and Beyond (134).

 

Klein presents the second trend as a direct consequence of the first and hearkens back to her discussion of Marlboro Friday in Chapter 1. Whereas Walmart popularized the retail model of generic, low-cost options, Starbucks has pursued the opposite strategy. “Everything about New Age chains like Starbucks,” Klein writes “is designed to assure us that they are a different breed from the strip-mall franchises of yesterday” (135). In contrast to Walmart, which provides a wide range of unbranded goods at the lowest possible prices, Starbucks provides a hyper-branded, specialized experience around a small set of consumer options.

 

However, Klein argues that the expansion of Starbucks has in fact proceeded much like that of Walmart. Starbucks opens clusters of stores in a small, concentrated area in order to achieve maximum market saturation, even if it means that individual Starbucks branches “cannibalize” business from one another (136-37). The net result is greater market share for Starbucks, which starves out local competition. Another practitioner of the cluster method, according to Klein, is the Gap and its plethora of derivative clothing stores: Baby Gap, Gap Kids, Old Navy, and Banana Republic (138).

For Klein, the upshot of these two retail trends is to stifle competition and diversity, the very values that, as she showed in Chapter 5, many modern American corporations claim to represent. The consumer landscape is therefore increasingly dominated by two very similar options: “the lowly price-slashers and the spiritual brand-builders” (141).     

Part 2, Chapter 7 Summary: “Mergers and Synergy: The Creation of Commercial Utopias”

Here, Klein focuses on the third major trend in retail that has eroded consumer choice over the past few decades: “the arrival of the palatial flagship store, which appears on prime real estate and acts as a three-dimensional ad for the brand” (132).

 

Once again, Klein begins by drawing on memories from her personal life, in this case, her skepticism as a young child toward her “hippie” parents’ (143-45). “I wasn’t allowed to have a Barbie,” she writes, “but I had Barbie in my brain” (144). According to Klein, Disney and Mattel provide early examples of corporations seeking to extend their reach into any commercial endeavor that will expand the visibility and influence of their respective brands (145-46).

 

The Disney Store, which first opened in 1984 and, at the time No Logo was written, had over 700 locations worldwide, serves as the physical manifestation of the vast domain of the Disney brand (149). This encompasses not just the “core” business of Disney films and spin-off products like toys and clothing, but also theme parks (Disney World, Disneyland), a cruise ship line, a private island in the Bahamas, and Celebration, Florida, an entire town designed according to Disney specifications (152, 154-58). In short, Disney is the main example of the expansion of a corporate brand into as many facets of life as possible, the omnipresence of a modern business entity.   

 

Klein links the Disney model of unlimited growth and branding to the dizzying array of corporate mergers in the media and technology fields in recent decades (146-49). The goal here is “synergy,” that is, “using ever-expanding networks of brand extensions to spin a self-sustaining lifestyle web” (148). Klein focuses on an analogue to Disney, Virgin Group and its plethora of ventures, including music retail and production, air travel, and banking, as a key instance of voracious branding that knows no boundaries (148, 160). Another prominent example is the Canadian outdoor and athletic apparel company Roots, which began construction on its luxurious Roots Lodge resort on Vancouver Island in April 1999 (153-54). The experience at the lodge is so completely branded that just about every object that guests encounter is imprinted with the Roots logo.       

 

The creation of “privatized public utopias” like flagship superstores, Disneyland, or the Roots Lodge corresponds to the atrophy of a true public sphere with a significant range of diversity and choice (158). In the past, antitrust laws enforced by agencies like the US Federal Trade Commission might have prevented the formation of monopolistic enterprises like Microsoft and Barnes & Noble or mergers such as CBS–Viacom, Time Warner–Turner, or Disney–ABC (161-64), but these regulations were gutted in the 1980s under President Reagan. Previously unthinkable concentrations of money, control, and influence have been the result. Despite the apparent freedom of more product choices than ever, the independence of consumers has been the true casualty of these developments.     

Part 2, Chapter 8 Summary: “Corporate Censorship: Barricading the Branded Village”

Chapter 8 focuses on what Klein presents as a straightforward consequence of the rapid growth of monolithic retail chains: corporate censorship (165). If fewer and fewer large corporations dominate the retail landscape, then access to cultural and artistic products can be more readily constricted.

 

Klein first notes the ability of large retailers like Walmart, Blockbuster, and Kmart to block the sale of any film, album, magazine, or book that they deem in conflict with their family-friendly image (165-69). In 1998, ABC journalists were prevented from airing coverage critical of the network’s corporate partner Disney (170). Similarly, American companies looking to expand abroad to growing markets like China have been happy to conform to the political standards of its state-run media in order to avoid a costly boycott (171-74). In short, major companies have proven willing to suppress or alter cultural and artistic content to preserve brand image and messaging.

 

In addition to these explicit instances of corporate censorship, Klein considers somewhat more subtle examples of interference. Copyright law, she argues, has been weaponized to prevent the use or representation of intellectual property that is unflattering or unremunerative for its corporate owner (175-82). From the 19’90s pop hit “Barbie Girl” to the lowly re-mixes of indie DJs, artists have faced severe litigation from corporations for the unauthorized use of copyrighted content. For Klein, the problem with such aggressive copyright policing is that certain corporate property, like Mattel’s Barbie, has become part of our collective cultural heritage. “When we lack the ability to talk back to entities that are culturally and politically powerful,” she writes, “the very foundations of free speech and democratic society are called into question” (182).

 

Klein, however, concludes the chapter by noting that corporate censorship is not “an airtight formula” but merely “a steady trend” (187). Publishers owned by major corporations still release unconventional and provocative books—like No Logo itself (188). Unbranded space may be diminishing, but it is not yet completely gone.

 

Moreover, Klein argues that the exposure of any brand may have certain inherent limits (188-90). Companies like Nike, Shell, and Starbucks have all experienced consumer backlash in their respective quests for market domination. Perhaps, then, cracks are appearing in the seemingly impenetrable armor of corporate America.

Part 2 Analysis

Part 2 of No Logo, “No Choice,” is designed to show “how the promise of a vastly increased array of cultural choice was betrayed by the forces of mergers, predatory franchising, synergy and corporate censorship” (xxiii). The common thread uniting these phenomena is the swift consolidation of the retail industry under a small set of large franchises that control and constrain consumer choice.

 

While Part 1 of the book“” sought to demonstrate the runaway incursion of corporate messaging into various spheres of everyday life, “No Choice” argues that the apparent benefits of outsized corporations for consumers are largely illusory. The growth of big-box stores through mergers and expansion has been sold to the public as the best way for companies to stay competitive and meet the demands of the market. This was a central justification for the rollback of antitrust legislation in the United States in the 1980s (161-64). A Walmart in every town in America ensures maximum buying power for the brand, which translates into lower prices for the customer. The ability to trust the products and services of large, recognizable brands like Microsoft or McDonald’s ensures consumer confidence. Flagship superstores and branded destinations allow consumers to enjoy premium shopping, leisure, and lifestyle experiences that come with corporate “synergy.”

 

For Klein, however, the outward perks of brand expansion conceal an uneasy truth: no choice. The increase in corporate power corresponds to a decrease in genuine diversity and options for the public. Our groceries, clothing, news, technology, and media come from a shrinking set of corporations whose primary interest is to maintain the integrity of their brands and the profits reaped therefrom. Instead of vibrant town squares that support individuality and free expression, we find malls and retail complexes that offer “pseudo-public private space” that we ultimately must use on the terms of the corporations who own it (183). Instead of a common set of cultural references and meanings, we have copywritten products and images whose use can be restricted (175-82). Instead of daring adventures in the great outdoors, we have branded camping and canoeing experiences like the Roots Lodge that function as extended advertisements (153-54). The result, for Klein, is the loss of “spaces in which the noncorporate-minded can flourish” (188). Enforced conformity, and not real choice, is what is really on offer.

 

Klein ends “No Choice” on a hopeful note. The unmitigated push on the part of corporations for omnipresence in our lives and our society has generated negative reactions on the part of consumers (188-90). Resistance is still possible—especially if it is fueled by widespread opposition to the deleterious economics of the superbrands that Klein examines in Part 3.  

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