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Branded is a weekly column devoted to the intersection of marketing, business, design, and culture. Earnings season has an important new element this quarter: President Donald Trump. Wall Street is hungry for clarity from big consumer brands about the impact tariffs may have on pricesand thus inflation. But Trump has been making it clear what his administration believes companies should do to the prices they charge shoppers: nothing. EAT THE TARIFFS, he berated Walmart recently, after the big-box giant indicated during an earnings call that price increases might be in the offing. Given the magnitude of the tariffs, CEO Doug McMillon said, we arent able to absorb all the pressure, given the reality of narrow retail margins. Trumps blunt rejoinder on social media waved that away, insisting Walmart need not charge valued customers ANYTHING extra in response to the tariffs, adding: Ill be watching, and so will your customers!!! (Walmart reported quarterly revenue of about $165 billion, up 2.5% over the same quarter last year.) Trump has also attacked toymaker Mattel for suggesting it could move production to dodge tariff costs, as well as Amazon for reportedly considering a plan to spell out tariff cost increases to consumers. The message seems to be getting through. This week another big-box giant, Home Depot, reported earningsand made it clear that it claims to have no tariff-driven price increases planned. We dont see broad-based price increases for our customers at all going forward, CEO Billy Bastek said in an earnings call. Target also reported earnings, and while its CEO acknowledged tariff pressure, he called price hikes the very last resort. Even Walmart has since sounded a somewhat conciliatory note: We have always worked to keep our prices as low as possible and we wont stop, the company said in a statement this week. Well keep prices as low as we can for as long as we can, given the reality of small retail margins. It’s unclear how long presidential jawboning can stave off retail price increases, but the apparent effort is remarkable. In the last election, Democratic candidate Kamala Harris was slammed by critics who dubiously characterized her proposal to crack down on price gouging as essentially government price control. Attempting to publicly micromanage companies considering tariff-related price rises doesnt have the force of law, but it certainly seems like government marketplace meddling, aimed squarely at controlling prices. Public companies in particular are left to thread the needle of serving shareholders by maximizing earnings and keeping investors informed of riskswhile avoiding hostile publicity from the White House. Polling data suggests consumers expect further inflation, so maybe at this point of Trumps pressure campaign, it is just about who (companies or government policy) gets blamed for the trade wars inevitable impact on costs. That said, any attempt at actually staving off tariff-sparked price increases with loud rhetoric seems doomed: A poll from insurer Allianz found that 54% of U.S. companies say they will have to raise prices to cope with tariffs. Not even Trump can bully a majority of American businesses to eat the tariffs. And in fact, Home Depots high-profile distancing from tariff price increases had some caveats. Some toolmakers have already raised prices, and Home Depots CEO noted that one way it might avoid hikes is with less inventory: There are items that we have that could potentially be impacted from a tariff that, candidly, we wont have going forward. Of course, there is nothing surprising or unexpected about tariffs driving up prices or narrowing consumer choice. Its exactly what most economic assessments said would happen, what companies large and small have anticipatedand indeed what many of the big-box giants’ leaders reportedly warned Trump would happen earlier this year. Even Treasury Secretary Scott Bessent now admits that prices are going to rise. Ultimately, these businesses will take the steps they need to, and consumers will muddle through the consequences. But perhaps, if the Trump administrations pressure campaign works, all that will happen with as little talk of tariffs as possible.
Category:
E-Commerce
What does it really cost to manufacturer products in America? And will high tariffs on Chinese goods bring those jobs back to the U.S.? These are questions that have been swirling since Trump announced a 145% tariff on Chinese products last month, since reduced to 30%. But rather than debate or speculate, the pleasure jewelry company Crave has decided to do something else: Its opening its books, sharing the full figures, and letting consumers choose what version theyd like to buy while exploring the global impact. In a Kickstarter campaign for their new Tease Necklacea vibrator worn around the neck as an accessoryCrave will offer three ways to buy it at three different prices. The first Tease will be made in San Francisco, with (most) of its parts sourced domestically. The second Tease will be assembled in the U.S., with parts acquired from China. And the third Tease will be completely sourced from China. In a quest for full transparency, Crave shared a spreadsheet accounting their costs to produce each model. The takeaways are fascinating. The total build cost is $80.31 sourced in the US, $47.83 assembled in the U.S., and $25.74 made in China. They will retail for $195, $149, and $98 for this Kickstarter promotion on which Crave says it’s not cutting a profit. Even with tariffs currently sitting at ~30% on Chinese components and goods, the difference in the cost of tariff fees for each necklace negligible ($4.16, $5.34, and $5.87 respectively). But the Tease is sill less than the cost to create in China than it is in the U.S. Take China off the map as a global supply chain or factory? That’s not what’s going to happen, says Crave CEO Michael Topolovac. If tariffs hold this rate, China will be as strong as ever. Unpacking transparent pricing Last month, a report from Punchbowl News claimed that Amazon was considering including the tariff costs on product listings. When the White House heard, they called the move hostile. Who knows if Amazon was ever actually going to take such a step, but the story struck a nerve with the public because tariffs are an invisible tax that’s typically built directly into a product’s pricing. Nearly every product we buy today has a global footprint, and in an era where weve just faced considerable inflation, thats a scary premise. While digging through Craves spreadsheet with Topolovac and co-founder Ti Chang, I began to understand why they believe high tariffs will be devastating to small businessesand ultimately futile as a strategy to get more goods built in the U.S. For instance, the San Francisco model can have its steel sourced in America for $25. That same metal costs $3.50 if you import it from China (and even after a 30% tariff, its only $4.55). That tariff will make the product cost more, but still a whole lot less than if Crave went with American suppliers. When you add labor, the price difference only grows. The core metal cylinder costs $20 in labor to machine it in the U.S., meaning it costs $45 between material and labor in all. Thats $20 more than buying the entire product sourced and assembled from China. Tracing components you simply cant make in the U.S. But truth be told, a piece of machined metal is a simple case. Lets consider the electronic components of the system. Batteries and motors cant be sourced in America, Crave explains, since the factories to make them don’t exist. So even their full U.S.-made Tease has these pieces purchased overseas. Crave can source its microprocessor from the U.S., but the circuit boards are made in China. And the microprocessor needs to be affixed to the board there. So Crave buys a microprocessor, pays a 30% tariff to ship it to China. Then China plants it onto a board, and ships it back, adding another 30% tariff. Theoretically, you can have discussions with the government to have tariffs waved in some of these more complex cases. If you’re Apple, youve probably got a whole division in China that’s managing that, says Topolovac. But theres no way that our factories can deal with the overhead of the Chinese government. The spreadsheet also reveals the futility of sourcing goods in China and then assembling them in the U.S. You end up paying a tariff cost and a higher labor cost. Its the worst of both worlds that way, says Topolovac, who notes that theres just nothing to encourage this practice at the scale and cost structure of their product. For most small businessesand even many largethe math simply doesn’t work out to bring manufacturing back to the U.S. (These issues affect mega corporations too. Logistics are why major performance apparel companies, like Nike, have grown so reliant on Vietnam.) In theory, tariffs could encourage more factories established in the U.S. But new infrastructure of this scale is completely outside the reach of Crave or its peers. Theyd need to raise hundreds of millions of dollars and spend years spinning up supportive factories, and even still, theyd need to source rare earth minerals globally. If your plan was to take out two to three million US manufacturers or brands like us, this is how you would do it, and [a 145% tariff] is how you would kill them, says Topolovac. Modern small business rely upon mega infrastructures Chang remembers building Incognito, her company before Crave, and relying on the technological cushion of China to do so. I was able to get that business going because we have free trade. I could go over to China, have an idea, have things made, and bring that inventory into the U.S. And that enabled ideas and innovation to happen, she says, noting that efficient manufacturing abroad lowers risk. As an entrepreneur, you can experiment and you can testnow, if you’re a new entrepreneur making products, you have no stability. And that lack of stability is ultimately the most frustrating point to Crave. They are constructing new products for the market as they follow the news cycle and project their ever-shifting costs. If they hadnt planned ahead, stocking up on inventory in anticipation of the 145% tariff spike, they would have been sunk. Overall, even when the business works out, the mental overhead and additional planning its required has become a distraction for Crave on top of the day-to-day challenges of running any product business. The world sets up the rules and supply chains, and you play by those rules, says Topolovac. But if the rules change every week, or whatever, it’s brutal.
Category:
E-Commerce
For decades, corporate leadership has been dominated by analytical prowess. Ascending the corporate ladder often meant demonstrating value through meticulous spreadsheets, precise forecasts, and detailed execution plans. Vision was acknowledged, but only when accompanied by a comprehensive road map. This paradigm, however, is shifting. In today’s era of rapid change, emotional complexity, and cultural fragmentation, linear strategies are insufficient. The most impactful leaders can envision new futures, cultivate emotional connections, and distill complexity into relatable narratives. The next generation of C-suite executives won’t just be adept operators; they will be architects of meaning. In short: They wont just be strategists, but creatives. Rethinking Leadership: From Logic to Imagination Historically, businesses have prioritized logic over creativity, resulting in leadership cultures rich in data but deficient in imagination. But creativity is now paramount. A recent Gallup study revealed that only 30% of employees feel connected to their company’s mission or purpose, marking a record low in 2024. Notably, fully remote workers struggle even more with this connection, as physical distance often translates to a mental disconnect from their employer. Moreover, a Deloitte report found that only 26% of workers strongly agree that their employer treats them as whole individuals, recognizing their unique contributions and skills. These findings underscore a critical issue: The emotional infrastructure of leadership is faltering. Efficiency alone is no longer the answer; resonance is essential. This is where creatives come into play, not as peripheral marketers or consultants, but as integral members of executive leadership. Imagine a CEO who leads with storytelling, not just statements; a chief human resources officer (CHRO) who designs employee experiences with the finesse of an artist; a boardroom that embraces visuals, metaphors, and even moments of silent contemplation to navigate complexity. What Creative Leaders Do Differently Creative leaders transcend problem-solving; they reframe challenges, anticipate tensions, and design interactions with intentionality. They consider the emotional ripple effects of decisions and understand that before individuals commit to a plan, they must resonate with its underlying story. They recognize that logic informs, but emotion compels. In uncertain times, strategy provides direction, but storytelling fosters alignment. Data offers explanations, but design inspires action. These leaders treat organizational culture as a canvas, viewing each initiative as an opportunity for meaning-making. They might commence a product launch with a narrative circle instead of a sales chart, or conclude a quarterly review with a thought-provoking question rather than a performance dashboard. These practices aren’t gimmicksthey’re essential tools for leadership in an age where facts alone are insufficient. If Creatives Led the Boardroom Envision a leadership meeting that begins not with status updates but with the question: What story are we living right nowand is it the one we want to be telling? Instead of diving into objectives and key results (OKRs), the team members reflect on the narrative shaping their organization and assesses its alignment with their goals. Imagine strategy sessions resembling creative studios more than command centers. Whiteboards adorned with sketches, not just key performance indicators (KPIs); ambient music setting the tone; and silence embraced as a space for contemplation. In times of crisis, the initial inquiry isn’t How do we manage this? but What does this moment ask of us as humans? If this approach seems radical, it’s only because we’ve long separated creativity from leadershipa separation that’s contributed to misaligned teams, ineffective strategies, and stagnant organizations. A Real-World Example: Airbnb’s Creative Leadership Airbnb’s response to the COVID-19 pandemic is a tangible example of creative leadership. Facing unprecedented challenges, CEO Brian Chesky didn’t rely solely on traditional strategies. Instead, he embraced storytelling and design thinking to navigate the crisis. Chesky penned heartfelt letters to employees and hosts, transparently communicating the company’s challenges and decisions as the travel industry cratered. He prioritized the community’s well-being, supporting hosts, and implementing flexible guest policies. This empathetic approach reinforced Airbnb’s brand values and maintained trust during turbulent times. On top of that, Airbnb reimagined its platform, introducing online experiences to adapt to the new normal. This innovative pivot showcased the company’s ability to blend creativity with strategic foresight, ensuring resilience and continued engagement with its user base. A Framework for Expanding Creative Leadership in the C-Suite Integrating creative intelligence into the C-suite doesn’t require a complete organizational overhaul. It starts with a mindset shiftan openness to design as a way of leading, not just a way of presenting. These practices are not soft skills; theyre strategic competencies that help leaders unlock deeper engagement, innovation, and trust. Here are four ways to begin. 1. Sense before you solve. Initiate major discussions by exploring the emotional landscape. Ask What are we feeling? to surface insights beyond data. This practice creates space for intuition, unspoken dynamics, and early signals that often get overlooked in performance reviews or planning decks. When leaders learn to read the room, not just the metrics, they make decisions that resonate more deeply and stick longer. 2. Design the experience, not just the strategy. Recognize that every policy, product, and meeting shapes the employee experience. Deliberately craft these moments to align with the emotions and values you want people to carry forward. Whether its a town hall, onboarding journey, or performance conversation, the how matters as much as the what. Design-thinking principlesempathy, prototyping, and iterationarent just for products; they belong in leadership, too. 3. Use storytelling as a strategic tool. Move beyond declarations. Weave in narratives that encapsulate vision, challenges, and aspirations, fostering deeper connection and shared identity. A well-told story doesnt just informit invites participation. It helps teams locate themselves inside a larger arc of meaning and progress. Leaders who communicate in narrative terms create alignment not just through direction, but through emotional coherence. 4. Invite diverse perspectives. Incorporate voices from artists, designers,facilitators, and other creative thinkers to challenge assumptions and expand the lens. These perspectives introduce new metaphors, fresh language, and alternative ways of making sense of complexity. When we bring in people who see the world differently, we dont dilute business thinkingwe deepen it. Innovation thrives at the intersection of difference. The Future of Leadership: A Studio, Not Just a War Room We’ve reached the limits of what linear thinking can achieve. Addressing challenges like cultural fragmentation, technological disruption, and global crises requires not just intellect but imagination. Future leaders won’t merely ask How do we grow? but What are we growing toward, and who do we aspire to become? They will: Design rather than direct. Curate experiences instead of solely managing outcomes. Imagine possibilities beyond analyzing current realities. Because the future of business isn’t something to be managed into existenceit needs to be imagined, crafted, and brought to life through creative leadership. This isnt about replacing strategy with art. Its about integrating the two so that organizations can lead not only with precision, but with vision. The companies that thrive in the coming years will be the ones bold enough to create what doesnt yet exist, and human enough to make it matter.
Category:
E-Commerce
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