Good afternoon,

Here’s the headlines for this week: 14 February 2025

ECOMMERCE

EU considers exempting most companies from carbon border levy

• The European Commission is contemplating reducing its carbon border levy to apply only to the top 20% of companies responsible for the majority of emissions. 
• This adjustment aims to alleviate the administrative burden on businesses while maintaining the EU's climate objectives.
• The proposed change could exempt tens of thousands of companies from the carbon border fee, focusing efforts on the largest emitters.

US inflation heats up to 3% for first time since June

• In January, U.S. consumer prices increased by 0.5%, leading to an annual inflation rate of 3.0%, the highest since June. 
• The rise was driven by record surges in prescription medication costs and higher motor vehicle insurance premiums.
• Economists warn that the recent tariffs on imports could further elevate inflation, complicating the Federal Reserve's monetary policy decisions.

Small-Business Owners Say Tariffs Will Squeeze Them, and Their Customers

• Recent tariffs on imports have raised concerns among small-business owners about increased costs for goods and potential price hikes for consumers.
• Industries such as manufacturing and retail are expected to be significantly affected, leading to higher expenses for both businesses and their customers.
• Business owners are exploring strategies to mitigate these impacts, including adjusting supply chains and seeking alternative suppliers.

CONSUMERS

Consumers expect inflation increase amid tariff talks

• Recent tariff implementations have led to heightened concerns among consumers about rising prices.
• The University of Michigan's Consumer Sentiment Index reported a significant drop, reflecting increased anxiety over potential inflationary effects due to new tariffs.
• Consumers are adjusting their spending habits in anticipation of higher costs for goods and services.

FTC Says Consumer Data Is Behind ‘Surveillance’ Pricing

• The Federal Trade Commission's study revealed that companies often use detailed personal information, such as location and browsing history, to set individualized prices for consumers.
• This practice, termed 'surveillance pricing,' raises concerns about privacy and fairness in the marketplace.
• The FTC is considering regulations to address these practices and protect consumer interests.

Fox’s Super Bowl attracts record-high 127.7 million viewers

• The recent Super Bowl broadcast by Fox attracted an estimated 127.7 million viewers, marking the largest audience ever for a single-network telecast.
• The game featured the Philadelphia Eagles defeating the Kansas City Chiefs with a score of 40-22.
• Advertisers leveraged this massive viewership to debut high-profile commercials, reflecting the event's significance in popular culture.

TECH

How TikTok Trends Feed the Beauty Product Pipeline

• TikTok has accelerated the beauty product pipeline, turning niche ingredients and formulations (like snail mucin and bronzing drops) into mainstream staples. Brands like Byoma and E.l.f. Beauty leverage viral trends to create new products or spin-offs.
• While fashion brands can quickly replicate viral trends, beauty products require longer R&D cycles (often two years). This forces brands to balance innovation with market timing, ensuring products stay relevant when they launch.
• With TikTok facing potential shutdowns, brands must adapt by using alternative platforms and data-driven insights to track emerging trends, ensuring longevity beyond viral moments.

BRANDS

Calling a customer? Brands can now display ‘reason for call’

• AT&T and TransUnion have introduced a feature allowing businesses to display their brand name, logo, and the reason for their call on Android devices.
• This initiative aims to build trust and encourage consumers to answer calls by providing transparency about the call's purpose.
• The feature is expected to reduce call screening and improve customer engagement for businesses.

RETAILERS

Amazon set to pass Walmart in revenue for first time

• Analysts forecast that Amazon's upcoming earnings report will reveal revenues of $187 billion, potentially surpassing Walmart's sales for the first time.
• This milestone is attributed to Amazon's growth in cloud services and retail sales.
• The shift underscores the changing landscape of retail, with e-commerce playing an increasingly dominant role.

Primark is accelerating its U.S. expansion, aiming to enhance brand recognition through traditional advertising channels such as television, social media, billboards and out-of-home activations.

• In August 2024, the company launched its inaugural U.S. brand campaign, "That's So Primark," highlighting its commitment to style, quality, and affordability to attract fashion-conscious consumers seeking value.
• Primark plans to focus its marketing efforts in the New York metropolitan area, recognizing its global influence in fashion and media, with significant emphasis on the upcoming 34th Street store opening in 2026.

J.C. Penney launches business-to-business website for bulk orders

• J.C. Penney has unveiled a new digital tool to support businesses and nonprofits in purchasing high-quality, durable products at bulk order prices.
• The platform offers access to a vast catalog and personalized product support.
• This initiative aims to diversify J.C. Penney's revenue streams and strengthen relationships with institutional clients.

Amazon has agreed to pay nearly $4 million to settle allegations that it used tips intended for its delivery drivers to subsidize labor costs.

• The settlement includes penalties and legal fees, and Amazon has committed to clarifying its tipping policies on its platforms.
• This case highlights the ongoing scrutiny of labor practices in the gig economy.

Amazon opens beauty and personal care store in Italy as part of brick-and-mortar expansion

• Amazon has launched its first beauty and personal care store in Italy, marking a significant step in its brick-and-mortar expansion.
• The store features "Derma-bars," offering customers complimentary digital skin analyses to personalize their shopping experience.
• This initiative reflects Amazon's strategy to blend physical retail with digital technology to enhance customer engagement.

Why Amazon and Walmart Suddenly Like Malls

• Amazon and Walmart are investing in repurposing traditional shopping malls to serve as distribution centers and mixed-use spaces.
• This strategy aims to revitalize underutilized retail spaces, integrating fulfillment centers with retail, dining, and residential areas.
• The approach reflects a shift towards creating multifunctional hubs that cater to both logistical needs and consumer experiences.

ADVERTISING

Why private equity firms are investing in creative agencies

• Private equity firms are increasingly investing in creative agencies to diversify their portfolios amid the evolving advertising landscape.
• The rise of artificial intelligence and digital transformation in marketing has made creative agencies attractive investment opportunities.
• These investments aim to leverage the innovative capabilities of creative agencies to enhance returns and stay competitive in the market.

See you next week,

The ChannelSight Team

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