Murder Water Enters the Skincare Chat

‍Sleigh Bells Ringing, Registers Cha-Chinging. Deloitte’s 40th annual Holiday Retail Survey just dropped, and the results point to the ongoing tension many households are feeling between harsh economic realities and the innate desire to celebrate.

Nearly eight in 10 consumers expect higher prices on holiday items, and 57% anticipate a weaker economy next year. As a result, shoppers plan to spend an average of $1,595 this holiday season, a 10% drop from last year. Woof.

However, that doesn’t mean they plan to scale back their engagement with brands and retailers. Arguably, their interactions will only be more intentional and consistent as consumers seek the best products at the best deals. That could translate to more time spent shopping.

💵 70% of consumers engage in three or more deal-seeking behaviors

🛒 56% plan to spend their retail holiday budget online, and 44% in stores

🤖 33% plan to use gen AI in their shopping journey, more than double 2024’s numbers

Want to crunch even more holiday numbers? Listen to a recent episode of the pod to learn how these new consumer dynamics should shape your marketing plans.

Gap Joins the Creator Platform Battle. Gap Inc. is now looking for influencers to join its new content creator and social media advocacy program, which will be stationed in a centralized destination for all Old Navy, Gap, Banana Republic, and Athleta partners. The program will go beyond basic affiliate marketing perks and offer creators early product access, exclusive promotions, content collaborations, and the chance for their work to be amplified across paid, social, and brand channels. US-based creators aged 18 and older can now apply to be an official creator. The caveat? They must have at least 1,000 followers. 

This launch follows the success of Gap’s “Better in Denim” campaign featuring Katseye, which brought the popular girl group in for a major “fashiontainment” moment that was true to Gap’s history of memorable dance-fueled ad spots. The campaign generated more than 600 million views and 8 billion impressions in one month. 

This news comes after Sephora launched My Sephora Storefront and Condé Nast unveiled its plans to launch its own influencer platform, which we challenge may be DOA.  

‍RIP to Dry Skin. Liquid Death, the canned water company that turned into an entertainment powerhouse, has announced its latest product drop with ESW Beauty. A clever follow-up to its sold-out collection with E.l.f. Cosmetics, Liquid Death has partnered with ESW to sell a collection of facial sheet masks. Retailing for $17.99, the box set offers hydrating, revitalizing, and blemish-control masks, giving new audiences (especially Gen Z and Gen Alpha) a compelling entry point to the water brand as it expands into new flavors and categories like energy drinks. 

‘Coyboycore’ Commerce. Boot Barn and Levi’s are two brands reaping the rewards of Coyboycore and Americana becoming social media fashion fads. Boot Barn has ramped up its in-store events featuring celebrity partners and ambassadors, including country artist Jordan Davis. While these gatherings help boost acquisition, especially among new cohorts, the Western retailer has seen same-store sales increase consistently over the last five quarters, indicating a continued shift towards work boots, hats, jeans, and belt buckles. (They may also want to thank Cowboy Carter for that…)

Speaking of Queen Bey, Levi’s has also posted positive financial results for the quarter, noting growth across net revenues, DTC, and wholesale. CEO Michelle Gass pointed to the brand’s consistent engagement with the artist as a contributor to the 12% year-to-date boost in its women’s business. 

‍The Sweet Smell of Recovery. Estée Lauder Companies has opened its Fragrance Atelier in France, which will serve as a “global innovation hub” dedicated to world-class fragrance development. An AI-enabled, end-to-end creation process combines olfactive and neuroscience modeling with real-time monitoring of patents, research, and regulations. This new workflow will help accelerate discovery, fuel experimentation, and enable faster response to evolving consumer trends. 

In a statement, President and CEO Stéphane de La Faverie said the Atelier will “propel our future growth” in fragrance. He shared more details with Business of Fashion, indicating that fragrance will play a distinct role in the company’s path back to growth following a year of financial struggles and brand missteps.

Bots Infiltrate the Student Body. The vast majority of students (86%), educators (85%), and parents (75%) have used AI during the last school year, according to new research from the Center for Democracy and Technology (CDT). But high AI adoption isn’t the most troubling finding; it’s how usage correlates with other behaviors that impact social and emotional well-being. 

For instance, teachers who used AI were more likely to report that the use of the technology damaged community trust in their schools. Students who attended schools that used AI were also more likely to report they or a friend used AI for mental health support or as a “companion.” In one out of five cases, high schoolers said they had a romantic AI relationship or knew someone who did. 

This is about far more than AI tools enabling cheating or minimizing the educational experience. It’s about AI taking away from the social experiences and innate community building found in school environments, which have already struggled due to teens’ dependence on social media. In fact, a New Jersey high school recently canceled its homecoming dance due to “lack of interest.” 

🔮 Assigning life to objects is not new, and it’s certainly not confined to AI. However, consumers’ ability to hold actual conversations with AI platforms like ChatGPT and Perplexity makes these relationships far more meaningful to them. Get our take on what this means for brands as they strive to foster community and build long-term loyalty.

‍That Didn’t Take Long. Just two weeks ago, Etsy and Shopify announced a partnership with OpenAI to display product listings in ChatGPT.

Today, Walmart and Salesforce have joined the ranks of Sam Altman’s growing base of Instant Checkout partners. Walmart is linking its online catalog. Unlike the Etsy announcement, which was available in the app at press time, Walmart will allow customers to shop and buy products directly within ChatGPT conversations beginning later this fall. The integration will support both Walmart and Sam’s Club sites.

And through Salesforce’s partnership with OpenAI, merchants using Agentforce Commerce will appear in ChatGPT and enable in-app checkout. Stripe is serving as the payment provider partner to bring this partnership to life.