Posts tagged with "Amazon"

Snapchat’s trippy new brand campaign aims to answer the question, what is Snapchat for?

January 27, 2023

When former Wieden+Kennedy executive Colleen DeCourcy joined Snap last year as the company’s chief creative officer, she said it was “the best known, least understood” social platform, reports Fast Company.

A new brand campaign, called “Wait’ll You See This,” is aimed at remedying that problem.

Whether it’s Apple pulling heartstrings or Amazon getting a bit celebrity silly with Alexa for the Super Bowl, we’re now accustomed to seeing tech brand advertising that includes very elaborate product demonstrations. Snap’s new ad is no exception—except that it feels more like a product demo inside a fever dream.

People with horse heads, dogs with three butts, the dead-eyed goofy gaze of fellow commuters on the subway: It’s all in there. For some, it will be the stuff of social media dystopian nightmares—for others, a peek into the funhouse of creative possibility. The brand is aiming for the latter.

DeCourcy says one of the primary goals is to start a conversation between people who use Snapchat and those who don’t. “As a non-broadcast platform, which is the beauty of it, if you’re not there, you don’t know. So, we’re trying to get people there,” DeCourcy says. “We’re trying to punch a little hole in the Snapchat box and let it leak out into the world so that people can see what it does.”

This is not just a one-off campaign, but the start of what DeCourcy says will be an ongoing brand platform. It was created in-house, under Snap Executive Creative Director Eric Baldwin, who joined the company last August, and previously worked with DeCourcy as ECD at Wieden+Kennedy.

New brand work already has started to trickle out, with a New Year’s Eve billboard in Times Square and a float in the Rose Bowl parade. This work will get its national TV debut during the NFL’s AFC Championship game on Sunday, January 29. “It’ll hopefully be this moment, with people watching a game together, where those who know will get excited and show the others in the room what it’s all about,” Baldwin says.

Snap reports that more than 250 million people engage with augmented reality (AR) on Snapchat every day, with more than 6 billion daily AR plays. The platform has 300,000 AR creators and developers who’ve built more than 3 million AR Lenses for the platform.

“There is this Super Bowl-sized audience on the platform every day,” says DeCourcy. “In a very cynical world, though, people have to experience it to get it. I don’t want to make things about the platform; I want to make things with the platform.”

That’s where this new work gets most interesting. Baldwin and DeCourcy’s creative team worked with Snapchat’s Arcadia Creative Studio to make the spot fully integrated with the app’s AR lenses. Every single frame of the spot, whether you view it online, as a screen shot, or during an NFL game, is scannable and will take you to a new suite of lenses, with a few surprises like a limited edition merch drop mixed in.

Arcadia Creative Studio’s Global Director Resh Sidhu, says Snap’s AR technology is world-class, and the spot itself is the perfect platform to show off how it all works. “We wanted AR to be at the heart of this campaign, and this was the perfect way to do that,” Sidhu says. “What excites our AR team is how this creates a platform for us to continue to share our work with the world. It’s all about getting it in the hands of people and allowing them to experience it.”

Research contact: @FastCompany

Microsoft slammed for hosting private Sting concert for its execs in Davos on the eve of firm’s mass layoffs

January 23, 2023

Microsoft has come under fire after details of a bash the company held in Davos, Switzerland, left the company’s workers more than a little stung, reports Fortune Magazine.

The tech firm hosted an exclusive event for around 50 people at the Swiss ski resort on Tuesday evening, January  17, with sources telling the publication that attendees had been treated to a live performance from iconic musician Sting. The party’s theme was sustainability, according to a scoop by The Wall Street Journal

It is unclear whether Microsoft paid Sting to perform at its event on Tuesday evening, at the World Economic Forum, but according to booking agency AAE Music it can cost upward of $500,000 to hire the artist for a private gig.

Invitees to the event—which the Journal described on Wednesday as “intimate”—reportedly included some of the company’s most senior executives.

The next day, Microsoft announced it was slashing 10,000 jobs—almost 5% of its workforce—citing “macroeconomic conditions and changing customer priorities.”

It marked the largest round of layoffs at the company since 2014. Toward the end of last year, the company announced it would be letting 1,000 workers go.

In an email to employees on Wednesday, CEO Satya Nadella said some workers would be told that day that their jobs would be cut, adding that the downsizing would be completed by the third quarter of 2023.

“We will treat our people with dignity and respect, and act transparently,” he said. “These decisions are difficult, but necessary.”

“We’re living through times of significant change,” Nadella also told his workforce. “We’re seeing organizations in every industry and geography exercise caution as some parts of the world are in a recession and other parts are anticipating one.”

Microsoft is just the latest behemoth of the tech sector to announce sweeping job cuts. AmazonTwitter, and Salesforce are among a plethora of tech firms who also announced layoffs in recent months.

Some Microsoft employees told the Journal that the turn of events between Tuesday and Wednesday was not a good look for the tech giant. The firm also faced criticism on social media, with some dubbing the firm’s moves “hypocrisy” and a “bad look.”

Representatives for Microsoft declined to comment.

Research contact: @FortuneMagazine

Amazon reportedly is planning a stand-alone app for sports content

December 30, 2022

Amazon’s desire to stream more live sports has the company looking at launching a stand-alone app for such content, according to a report on Wednesday, December 28, in The Information.

The website cited a source with direct knowledge of the plan and said such a move would “declutter Amazon’s main Prime Video app” and better highlight the tech giant’s sports offerings. Right now, content within Prime includes exclusive streaming rights to the NFL’s “Thursday Night Football,” some Premier League soccer matches, and New York Yankees baseball.

According to a report by GeekWire, the company uses sports in a bid to grow its content library, bolster its advertising arm; and add more Prime subscribers, who buy products on its marketplace.

Amazon CEO Andy Jassy had previously expressed a desire to spend more on sports. “Sports is such a unique asset. If you look every year at the most watched programs, sports often occupies 75% of those spots,” Jassy said at a DealBook conference in November. “And you know, they drive live engagement and they drive Prime subscriptions.”

Amazon increased the annual price of a Prime membership—which includes Prime Video—to $139 earlier this year as it sought to offset shipping and labor costs, among other things. The Information did not report on whether Amazon would charge Prime members for sports content in a new app.

Amazon competes against other tech giants for streaming rights for a variety of sports content. The company just lost out to Google in the bidding for “NFL Sunday Ticket.”

Wedbush analyst Michael Pachter called live sports a “differentiator from on-demand,” and said each company brings their own model for streaming. He noted at the time that, if Amazon won the “Sunday Ticket” rights, it would need to figure out whether to offer NFL games for free, as it does for “Thursday Night Football;” or to change the Prime membership model with new tiers, such as is being suggested by The Information report.

Research contact: @geekwire

Cheap thrills: Goodwill launches an e-commerce site

October 6, 2022

Goodwill is the go-to place for secondhand goods. Indeed, many a first couch has been found at one of the organization’s 3,300 community based brick-and-mortar stores in the United States and Canada. And now, the marketplace is expanding its reach even further, to the online world, reports Fortune.

 GoodwillFinds.com, a new e-commerce version of the chain, has launched—offering everything from the used clothes that make up most of the store to oddities like a crystal bowling ball with a skull. Other items in the current inventory of roughly 100,000 range from books and home decor to additional specialty and collectors’ items.

 While the sales are available to anyone in the online world, proceeds will go back to the region where the item was sourced.

 “Goodwill has built a legacy of strengthening communities through the power of work,” said Steve Preston, CEO of Goodwill Industries Internationalin a statement. “GoodwillFinds furthers that mission through a modern online shopping experience—backed by a century-old philosophy—to harness resale with purpose.”

 Before the launch of GoodwillFinds, the stores had no central online presence, although some stores would work with third-party vendors to sell select items on eBay or Amazon.

 The launch of the portal comes as the secondhand clothing business is exploding, with sales expected to hit $77 billion by 2025. The number of first-time buyers of secondhand clothes in 2020 jumped by 33 million—and three-quarters of those shoppers planned to increase their spending in that market.

 Research contact: @FortuneMagazine

Eight food brands are selected for Whole Foods’ Local and Emerging Accelerator Program

August 5, 2022

Ten up-and-coming consumer brands have been selected to participate in Whole Foods Market’s Local and Emerging Accelerator Program—eight of them, food brands. The program provides mentorship, education, and shelf space at regional Whole Foods Market stores. Businesses also may receive financial support, reports Food Business News.

“We are delighted to welcome ten exceptional local producers to the first cohort of our Local and Emerging Accelerator Program,” said Will Betts, vice president of Local Merchandising at Whole Foods Market, a business owned by Amazon, adding, “We look forward to sharing valuable insights into marketing best practices, strategy and channel development to help expand the cohort members’ brands while preparing to introduce their products to Whole Foods Market shoppers.

“Whole Foods Market has long been committed to supporting small, local and emerging producers,” Betts said, “and the Local and Emerging Accelerator Program enhances our ability to strengthen our relationships with local brands and elevate our product selection for communities across the country.”

The program will include a 12-week curriculum, a yearlong mentorship with a Whole Foods Market regional buyer, and access to additional supplier benefits to support growth. All products must meet the company’s quality standards and product safety requirements in order to be sold in Whole Foods Market stores.

Participants may receive a $25,000 equity investment from a donor-advised fund managed by the Austin Community Foundation, with proceeds benefiting Whole Foods Market foundations.

Among the Food brands participating in the program are the following:

  • Buns Bakery, Providence, Rhode Island, a traditional Israeli-Jewish baker of babka, challah, and rugelach (North Atlantic region);
  • CHKP, Brooklyn, New York, a producer of non-dairy, chickpea-based yogurt alternatives (Northeast region);
  • Coyotas, San Diego, a Mexican-American maker of grain-free tortillas formulated with cassava flour (Southern Pacific region);
  • Good Girl Chocolate, Oklahoma City, a brand of gluten- and soy-free bean-to-bar chocolate sweetened with coconut sugar (Southwest region);
  • Numa, Fallsington, Pennsylvania, a mother-and-daughter-founded brand of taffy and peanut candies inspired by traditional Asian recipes (Mid-Atlantic region);
  • Onana Foods, Fort Collins, Colorado, a maker of grain-free tortillas made with plantains, baking powder and sea salt (Rocky Mountain region);
  • Pizzazza, Bellingham, Washington, a line of frozen pizzas topped with locally grown and produced ingredients (Pacific Northwest region); and
  • Theo’s Plant Based, Chicago, a creator of beet jerky supporting regenerative farming practices (Midwest region)

Hair care brand Tangles & Beyond, based in Hattiesburg, Misissippi; and skin care maker Vamigas of Alamo, Caliornia also are participating in the program.

Research contact: @FoodBizNews

NFL launches subscription streaming service

July 26, 2022

The National Football League debuted its new subscription streaming video service on Monday, July 25—NFL+, for $4.99 a month or $39.99 annually, reports Axios.

Why it matters: The service will help the NFL reach a wider audience of younger fans who don’t watch traditional TV.

Details: For the first time in the NFL’s history, the service will make all NFL games, including local matches, widely accessible on-the-go via streaming.

But there’s a catch: In an effort to respect its live television partnership rights, the live local and primetime regular and post-season games are only available on phone and tablet.

  • Live local and national audio of every game, however, is available on the app, as well as live video coverage of all out-of-market pre-season games.
  • In addition to live games, the regular tier of the app includes NFL Network shows on demand, NFL Films archives and other content.
  • Users can also buy a premium package for $9.99 a month or $79.99 annually, which includes game replays and other features, such as access to the All-22 Coaches Film, which essentially provides video for those looking to study game plays.

Be smart: The premium version of NFL+ essentially replaces a product called NFL Game Pass in the United States. It’s meant to cater to the more intense NFL fan and will include full-game replays across all devices, including streaming television.

What they’re saying: “Today marks an important day in the history of the National Football League with the launch of NFL+,” NFL Commissioner Roger Goodell said in a statement.

The big picture: The NFL has been aggressive in its efforts to bring more of its games to streaming without cannibalizing its lucrative live TV contracts with various TV networks.  It has already brokered a deal to make Amazon the exclusive broadcaster of its Thursday night games, and it has awarded ESPN+, ESPN’s streaming service, an exclusive game to stream.

The league is expected to soon announce the winner for its last remaining multi-season rights package for Sunday Ticket. That package is widely speculated to go to a streaming service like Apple or Amazon.

Research contact: @axios

Amazon to acquire One Medical for $3.9 billion in healthcare deal

July 22, 2022

Amazon has agreed to acquire San Francisco-based  1Life Healthcare —which operates a primary-care practice under the name One Medical—for $3.9 billion including debt, the retailing giant announced on Thursday, July 21, reports The Wall Street Journal. 

On its website, the company describes itself as “No ordinary doctor’s office. Get 24/7 on-demand virtual care. Or book same/next-day appointments—in our offices or over video—with our app. Most insurance accepted.”

Founded in 2004, One Medical is a membership-based primary care practice with offices in 12 major U.S. markets. It works with more than 8,000 companies to provide One Medical health benefits to their employees.

“We think health care is high on the list of experiences that need reinvention,” said Neil Lindsay, SVP of Amazon Health Services. “We see lots of opportunity to both improve the quality of the experience and give people back valuable time in their days.”

Once the deal closes, One Medical Chief Executive Amir Dan Rubin will remain CEO of the business.

Research contact: @WSJ

Federal regulations are finally taking aim at the ‘Wild West’ of clean beauty

July 18, 2022

Three years ago, several makeup products at Claire’s, the national retail chain beloved by teenagers, tested positive for the presence of asbestos—a mineral that has been known for decades to be linked to several types of cancer and lung disease, reports Fortune.

The Food and Drug Administration did what it could legally do about the fact that teenagers had been applying asbestos to their faces and possibly absorbing it through their pores: It recommended Claire’s recall the products. Claire’s  disputed  the test results, but ultimately recalled the products, even though the FDA had no further authority to act.

“To be clear, there are currently no legal requirements for any cosmetic manufacturer marketing products to American consumers to test their products for safety,” then-FDA Commissioner Scott Gottlieb wrote candidly in a March 2019 statement with Susan Mayne, director of the Center for Food Safety and Applied Nutrition at the agency.

Not much has changed since then. Federal law regulating the beauty industry hasn’t been updated since 1938—the year that Adolf Hitler marched into Austria and set off the Second World War.

“Cosmetics is the least regulated category in the marketplace: There are more restrictions on the pesticides that we spray on crops to kill weeds than the stuff we spray on our bodies every day,” said Scott Faber, head of Government Affairs at the Environmental Working Group (EWG).

All the same, Congress, where several female legislators—including Sen. Dianne Feinstein of California, Sen. Susan Collins of Maine, Rep. Jan Schakowsky of Illinois, and Sen. Patty Murray of Washington—have introduced bipartisan proposals to update the laws, expand FDA authority to oversee beauty brands, and ban the most harmful chemicals. 

At the same time, several states including California, Maryland, Maine, and Colorado have already moved to increase supply-chain transparency in an industry known for its opacity. 

Last month, those proposals were tucked into the FDA Safety and Landmark Advancements Act—legislation that would reauthorize the agency’s user fee agreements related to prescription drugs and medical devices. Since this reauthorization needs to pass, the ride-on cosmetics regulations have their best chance in over eight decades to move through a gridlocked Congress.

The proposals have widespread support from the beauty industry, including Unilever, Johnson & Johnson, L’Oréal, Sephora, and Procter & Gamble, because many mainstream brands and retailers have already started moving into the clean-beauty space.

Olivia Tong, an equity analyst at Raymond James who follows Ulta Beauty, Estée Lauder, Sally Beauty, and other cosmetics and personal care companies, said regulations could establish some consistency in what “clean beauty” means.

“It’s a little bit of the Wild Wild West right now with anything that has a label of ‘clean,’” Tong said. “Investors along with consumers are typically on board with some consistency in terms of what everybody is talking about.”

David Swartz, equity analyst at Morningstar who covers Ulta, said big retailers don’t have much to fear when it comes to proposed regulations. “If anything, it would allow Ulta to promote its brands and bolster its links with the key suppliers,” Swartz said. “There could be some negative impact on Amazon and others that sell counterfeit and unauthorized beauty products, which could benefit Ulta, Sephora, and other stores.”

Indeed, while not everyone in the industry welcomes stricter regulation, it’s clear that current law has fallen far behind global industry standards and consumer preferences. Clean beauty was the fastest-growing segment as of May, according to NPD Group. Clean-beauty market revenues are up 19% from last year, while vegan makeup revenue is up 27%, and vegan skin care 23%, the market research firm told  Fortune.

“There’s way more concern for what goes into products today than there was even ten years ago,” said Larissa Jensen, industry adviser and vice president at NPD Group.

In response to growing consumer demand, the nation’s largest retailers, including Ulta, Sephora, and Target, are launching clean-beauty standards and disclosing more information about how these products are made.

There are no legal definitions for “clean,” “natural,” or “green” beauty products—so companies can use those terms as they wish without fearing legal consequences. “Organic” is the only industry label regulated in the United States.

“What’s clean to one brand might mean something different to another,” said Emily Spilman, science analyst on EWG’s Healthy Living team. “The onus is on the consumer to do that research.”

The nonprofit advocates for stronger regulation of the beauty industry and has launched the Skin Deep cosmetics database as an alternative way for consumers to check ingredients in the products they use in the interim. An accompanying mobile app makes it possible to scan barcodes in a store to see how an item rates.

Credo, a San Francisco–based clean-beauty retailer, has established a Clean Standard for the products it carries. It bans the use of 2,700 mainstream beauty ingredients that raise safety and sustainability concerns; restricts animal-derived ingredients and animal testing; and poses questions about ethics, sustainability, and transparency.

“The standard is really the nexus of how we evaluate ingredient and material safety, sourcing, sustainability, and ethics,” said Mia Davis, vice president of Environmental and Social Responsibility at Credo. The company explains on its website that it created the standard because current law is so limited.

Yet the brand does not think the standard is a stand-in for federal action. Instead, it’s one of the industry advocates pushing for Congress to act. The tide has turned in favor of regulation, and many mainstream cosmetics brands also supported an earlier bill introduced by Feinstein and Collins that is the foundation of the current proposal.

As is often the case in Congress, the extent of the regulation is the crux of debate. The Personal Care Products Council, which represents manufacturers, distributors, and suppliers of beauty products, says the industry is very responsible and responsive to consumer concerns about safety and sustainability. While critics point out that the European Union has banned over 1,600 ingredients; and the United States. fewer than a dozen, PCPC vice president Jay Ansell says the statistics are misleading.

“Nearly all of those ingredients banned in the EU have never been nor would ever be used in cosmetics, including jet fuel, radioactive substances, pesticides, pharmaceuticals like chemotherapy drugs, chloroform, hemlock, cyanide, and LSD,” Ansell said

.However, Credo’s Davis agreed that not all of the EU-banned ingredients are present in American products, but she added that the EU’s approach is demonstrably more precautionary than the one taken by U.S. regulators. Some beauty brands change the formula of their products for the European market, and she believes those versions are safer.

“This industry enjoys a lot of secrecy,” she said. “There’s very little federal information required of the industry. We need more in order to protect the consumer and the planet.”

Still, Tong of Raymond James noted that many other priorities are front and center for multinational beauty brands right now—including economic pressures, inventory and supply-chain challenges, and shifts in consumer behavior amid the pandemic. That means regulations are not the focus—at least not until current proposals advance further in Congress.

Research contact: @FortuneMagazine

Amazon and Grubhub strike deal to bring restaurant delivery to Prime members

July 7, 2022

Amazon  has agreed to add Grubhub to its suite of Prime services in the United States,  in a deal that also gives the e-commerce giant the option to acquire a small stake in the parent of the food-ordering company, reports The Wall Street Journal.

Grubhub’s parent, Netherlands-based Just Eat Takeaway  tells the Journal that Amazon has an initial option to take a 2% stake in U.S.-based Grubhub; and U.S. Prime members can have their delivery fees waived from select restaurants.

What’s more, Amazon has the opportunity to bump up its total stake to 15% of Grubhub, based on performance terms focused on adding new customers, Just Eat notes.

Just Eat still will own Grubhub and will continue exploring a full or partial sale of Grubhub, it comments. The deal will renew annually unless either Amazon or Just Eat terminates it and it is expected to materially add to Grubhub’s business next year, Just Eat said.

The deal brings Amazon further into food-related services through its Prime membership program. The online commerce giant has provided grocery benefits to Prime members under its Whole Foods Market division as a way to make its annual subscription program more valuable.

“The value of a Prime membership continues to grow with this offer,” Jamil Ghani, vice president of Amazon Prime, told the Journal.

Amazon last year said that millions of Prime members in the U.K. and Ireland would get discounts through U.K. food delivery firm Deliverooin which Amazon invested in 2019.

Amazon will offer Prime members a subscription to Grubhub’s membership program for a year—which includes free delivery from a network of restaurants, as well as other discounts.

Shares of Just Eat surged 22% in European trading on Wednesday, July 6. In early U.S. trading, shares of rival DoorDash  fell 9.9%; and Uber Technologies, another food delivery provider, declined 4.4%, with major stock indexes mixed. Amazon shares were slightly lower.

Grubhub CEO Adam DeWitt said the deal will introduce new customers to the company’s membership program and bring more business to restaurants and drivers that work with Grubhub.

Just Eat said in April that it would consider a full sale of Grubhub after acquiring Grubhub in a $7.3 billion deal that closed last year. Activist investor Cat Rock Capital Management, Just Eat’s third-largest shareholder according to FactSet, has pressed the company to focus on its European markets, and sell Grubhub.

Research contact: @WSJ