LSN : Daily Signals : Need to Know 15 : 02 : 18

1. Gucci campaign channels French student activism in 1968

Gucci Dans Le Rues by Christopher Simmons

Global – Gucci’s new Instagram campaign, entitled Gucci Dans Le Rues, transports viewers back to the student protests in France in 1968. Shot by British fashion photographer Glen Luchford and art directed by Christopher Simmonds, the series of spots shows models occupying a university campus ‘in a gesture of optimism, idealism and passion’.

The campaign adeptly taps into the spirit of rebellion that pervaded France during the period, mimicking the Nouvelle Vague style of film-makers like François Trouffaut and Jean-Luc Godard, known for their rejection of the literary period pieces being made in France in favour of shooting current social issues on location. Brands like Gucci and Nike, which earlier this week released its Nothing Beats a Londoner campaign, are demonstrating how to approach modern youth culture in a way that both captivates and inspires the younger generation.

Gucci Dans Le Rues continues the bold style of advertising that the brand has adopted since Alessandro Michele took over as creative director in 2015. From its #guccigram digital catalogue to the opening of the Gucci Gardens in Florence, the fashion house has demonstrated how a high-end brand can shed the traditionalism of luxury.

2. PepsiCo launches new sparkling water brand

Bubly by PepsiCo

Global – PepsiCo has launched a competitor to the Sundance Beverage Company’s LaCroix range of sparkling water. Named Bubly, the new, healthier alternative to traditional fizzy drinks, will come in eight flavours, including apple, strawberry and mango. Designed to appeal to a youthful audience, the beverages will be packaged in brightly coloured cans with lowercase lettering and social media worthy messages on the pull tabs, such ‘Hey u!’ and ‘yo!’

The brand is hoping that Bubly, which contains no artificial flavours, sweeteners and is zero calorie, will appeal to health conscious consumers looking for a more flavoursome drink than water.

The introduction of the Soft Drinks Industry Levy – dubbed the Sugar Tax – to the UK later this year, is forcing brands like PepsiCo and Nestlé to either redress their products to avoid paying a surcharge or innovate into new categories.

3. Amazon India introduces own brand beauty products

India – Following Amazon’s expansion into India in 2016, which has proved a massive growth market for the brand, it is now introducing its own beauty line.

According to the Indian Economic Times, Amazon India is in talks with with manufacturers to add private label skincare and makeup products to its offering. India’s biggest e-commerce brand, Flipkart, is also increasing its focus on the cosmetics category, putting the two brands in direct competition with each other over this increasingly lucrative sector.

‘The beauty and personal care segment will be one of the key areas of focus this year and we are looking at strengthening our portfolio by adding more international masstige brands,’ says Ananth Narayanan, chief executive of Myntra and Jabong, which is owned by Flipkart.

A report by Nielsen published last year shows that Indians have traditionally been wary of international beauty brands, because of a belief that they are too chemical-laden.

Beauty products available on Amazon

4. #WeCounterHate uses AI to deter hateful Twitter retweets

WeCounterHate by Possible and Spredfast, US

US – A collaboration between creative agency, Possible, and social media marketing software company Spredfast, the #WeCounterHate campaign uses artificial intelligence (AI) trained by former far-right extremists to identify hate speech influencers.

Having identified hate speech, the AI then posts a reply stating that for every retweet the agency will donate to a non-profit organisation fighting hate, encouraging people to pause before reposting. During its pilot launch, the campaign was shown to effectively reduce the retweet rate of hate speech by 66%.

‘I think what we have figured out is a way to insert a narrative on a platform that has typically been ungoverned,’ Life After Hate executive director Sammy Rangel told AdWeek. ‘At the very least, we’re causing a moment to pause, a moment to reflect. People are going to have to second-guess whether they want to push that button.’

5. People increasingly distrustful of natural food claims

A new report from food insight agency FONA International shows that the new product launches making ‘all-natural claims’ have fallen by 51% during the past five years, demonstrating a growing amount of consumer skepticism over the unregulated nature of these claims. The research indicates that 40% of respondents do not trust a ‘natural’ claim on a food label, and 45% will go so far as to actively investigate whether the natural claim aligns with their own definition of ‘natural’. For more on why consumers are seeking to better educate themselves around food claims, see our Educated Eating market.

6. Thought-starter: Why brands should tap into the Chinese duty-free retail market

Chinese tourists’ passion for duty-free shopping is making Asia-Pacific the engine of growth for a sector that is of increasing importance to high-end brands.

With 67% of overseas Chinese luxury consumers shopping in downtown or airport duty-free stores, according to McKinsey, it is the most important retail channel for many consumers.

According to the UN World Tourism Organization, China alone already accounts for more than a fifth of the money spent by outbound tourists, and this is likely to grow sharply in the coming years.

As Bloomberg’s editor-at-large Adam Majendie points out, only about 5% of Chinese nationals have passports at present, but the government is expanding that number at a rate of 10m per year. And the majority of this money is going straight to duty-free retailers. Wechat’s recent travel report on Golden Week 2017 revealed that 52% of Chinese travellers’ overseas purchases were made in duty-free stores.

Read our market for more on the potential for luxury brands looking to capitalise on Chinese duty-free shoppers.