đź’¸ TikTok's digital gift grab
Hey Snackers,
It smells musky with a hint of Doge: Elon Musk said he’s already sold $1M worth of his new fragrance, “Burnt Hair.” The cologne costs $100/bottle, and Elon said he’ll accept Dogecoin.
Stocks ticked down yesterday ahead of today’s big September inflation report, which could influence the size and pace of future Fed rate hikes. Not encouraging: US supplier prices jumped last month.
TikTok is pocketing up to 70% of donations from charitable live streams, the BBC found
Shocking… A BBC investigation found that ByteDance-owned TikTok is profiting from donations on charitable live streams, which have gained popularity. The BBC went on the ground in war-torn Syria, where displaced families living in camps are begging for donations to cover everything from food to medical care — all through TikTok live streams. What the BBC reported:
- TikTok is said to pocket up to 70% of donations collected via live streams. For five months the BBC scraped info from 30 accounts broadcasting live from Syrian camps. Some streams earned up to $1K/hour, but families said they received a tiny fraction of that.
- TikTok’s response: Gen Z’s favorite app said this type of content isn’t allowed on its platform, and added it would take action against “exploitative begging.” But TikTok failed to explain why it’s reported to have taken a cut of the live streams if they’re not allowed.
- Doesn’t add up: TikTok said the commission that it takes from digital gifts is significantly less than 70%. But a BBC reporter in Syria tested it out and said TikTok had kept about 70% of the proceeds from his live stream.
Lions and roses… TikTok live-stream viewers can send digital gifts — ranging from roses (which cost a few cents) to lions (which cost $500) — to tip creators or donate to people in need. The BBC found that the Syrian live-stream trend was facilitated by “TikTok middlemen,” who said they worked with agencies affiliated with TikTok in Asia and provided needy families with phones and accounts to go live.
It could be TikTok’s lowest blow… The world’s most popular app is no stranger to accusations of sketchy practices — from boosting harmful content to censoring content at China’s behest. But if the BBC’s findings are accurate, it could be its worst scandal. Over 1B people use TikTok to stay up to date with news, engage with trends, and donate to their favorite causes. This report could permanently bruise TikTok’s reputation.
Hollister will let teens share orders with parents as retailers struggle with the “abandoned cart” problem
Fall-fit shopping gets less cringe… Hollister rolled out a check-out option that makes shopping with Mom and Dad less embarrassing. On Tuesday, the California-style teen retailer rolled out “Share2Pay,” which lets shoppers share their carts with parents (no awkward mall trips required).
- How it works: US and UK customers can text their digital shopping carts to the buyer (aka: Mom and Dad), who can use the link to add or remove items before paying.
- How it’s doing: After a soft launch, Hollister said customers who used Share2Pay placed orders nearly twice as often as those who didn't.
- Corporate parent: Hollister makes up over half of Abercrombie’s sales. But while Abercrombie’s namesake sales jumped 5% last quarter (thank: more jean sizes, fewer logos), Hollister’s fell 15% and Abercrombie reported a surprise loss.
“Enjoy the bucket hat, sweetie”... Gen Z accounts for a massive $360B in disposable spending power, more than double the estimate from three years ago. But with more teens interested in saving for retirement versus splurging, retailers are trying to boost sales by easing friction between the shopper and the payer:
Abandoned carts are a multibillion-dollar problem… Nearly 70% of online shopping carts are abandoned, costing retailers $18B in lost annual sales. It’s even harder for tween-fave brands like Hollister (only half of its Gen Z demo has credit cards). Now retailers are targeting a more reliable source to get shoppers to the finish line: their parents.
What else we’re Snackin’
- Loyal: Delta and Starbucks are linking their loyalty programs to boost spending among their 100M and 27M respective members. Companies have started bundling loyalty programs as a way to reduce “rewards fatigue.”
- Nuke: Canadian energy giants Cameco and Brookfield will buy Westinghouse Electric for nearly $8B. Nuclear’s gaining steam as a carbon-free energy solution and Westinghouse services half of the world’s reactors.
- Boost: The FDA cleared Omicron boosters for kids as young as 5. The Biden admin is giving out millions of doses ahead of an anticipated winter Covid wave — but just 5% of eligible Americans have received an updated booster.
- DieFi: Someone stole $100M from DeFi platform Mango, but says they'll give some back in return for a pinky swear not to involve police (think: hack to return). $3B+ has been snatched in crypto hacks this year.
- Chipped: The pandemic PC boom is over: Intel is reportedly planning to cut thousands of workers as it struggles with slowing laptop demand and President Biden’s new China-centric chip-export restrictions.
Thursday
- Jobless claims
- Earnings expected from BlackRock, Delta, Domino’s, Infosys, Walgreens, and Progressive
Authors of this Snacks own: shares of Apple, Amazon, Delta, and Starbucks
ID: 2473501