The CQ: Oddity's Debut and Rise of “Science-washing”
The Forerunner Team's Must-Reads of the Week
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By Forerunner, @ForerunnerVC
What We’re Talking About on Slack:
Many in the business and finance worlds are just learning about Oddity, a lesser-known name that’s seen a highly impressive Wall Street debut with shares jumping 40% and a market capitalization of about $2.8 billion. The company behind the Il Makiage and Spoiled Child brands uses data and AI to develop cosmetics and make recommendations and has shown remarkable growth and profits, helping drive investor interest. The company says it plans to roll out additional brands using its technology in the future. This debut may signal the revival of the IPO market, which has been trudging through an 18-month slow period. “In the past several weeks, the major barriers to a resurgence in initial public offerings have lifted. U.S. stocks are climbing toward new 52-week highs, volatility is down, inflation has eased and, perhaps most important, investors are making speculative bets again.”
The New York Times covers the uptick in “science-washing” and “scienceploitation,” new terms coined for capturing the wave of trendy and inflated science-related claims of wellness products that have slim clinical backing. Buzzwords like “hormone balancing,” “gut health,” “skin detoxing” have surrounded the marketing of health products from sodas to serums and supplements for years — and the increased saturation of these claims is leaving consumers overwhelmed and confused by the options. “Buyers are prioritizing scientific evidence, said an analyst and head of beauty at WSGN, a trend forecasting company. But they can’t always separate fact from fiction: A 2021 study suggested that people who trust science were more likely to share false claims that contained scientific references than claims that didn’t.”
Hollywood strike leaves influencers sidelined and confused. Even though they’re not in the actors’ union, many creators are passing on deals to promote films or TV shows, because they don’t want to be barred from the guild or face online backlash. This comes after the SAG-AFTRA, as the union is known, issued rules stating that any influencer engaging in promotion for one of the Hollywood studios the actors are striking against will be ineligible for membership. How this is playing out: influencers are now walking back on deals and having to post apology videos for promoting certain shows, and in turn, videos about which deals creators rejected in solidarity are racking up praise on TikTok.
Gen Z is rejecting everything they’ve been taught about tipping. It could be the start of a big shift. It’s well-known that the automatic prompt to tip 18%, 20% or 22%+ at check-out feels awkward and all too prevalent, but Gen Z could finally shift the tipping expectations across a variety of use cases. According to a new survey, only 35% of those under 26 say they always tip at a sit-down restaurant, compared to 83% of boomers who do. Same goes for hairstylists: 24% of Gen Z’ers tip for a haircut, while 40% of millennials and 67% of Gen X’ers do. Most young people have less extra cash than those who are older, still 40% of all people think businesses should be increasing employee wages instead of having customers make up for the lack with tips.
The highest number of prime-working age Americans since 2002 are now in the workforce. These adults between 25 and 54 years old who are working or looking for work should help offset the exodus of retiring boomers. “That growth is taking a little heat out of the job market and could help the Federal Reserve’s efforts to tamp down inflation by keeping wage growth in check.” Women participating in the labor force is up to record 77.8% in June and men at 83.5%, the highest since 2002. One economist speculates that more women could further raise the employment rate if employers adopt or the government requires additional policies for childcare, which is subsidized in other industrialized countries.
More good news: Americans are feeling pretty good about the economy. The consumer confidence index jumped to 117 in July, up from 110.1 in June, which is the highest in two years. All age groups are feeling the boost as well as those earning incomes less than $50,000 and making more than $100,000. "Expectations for the next six months improved materially, reflecting greater confidence about future business conditions and job availability. This likely reveals consumers' belief that labor market conditions will remain favorable."
Digital ads are accounting for less and less of media firms’ revenue, putting an increased spotlight on live events. No one likes opening an article and finding it riddled with placed ads and pop-ups, and it turns out these tactics aren’t even performing like they used to. “Media executives say sales of ad sponsorships tied to live events is outperforming the rest of the ad business, in part due to pent-up demand from the 2020-21 period when most live events were shelved because of the pandemic.”
Celeb-backed brands are moving into malls. They’ve taken over 300,000 square feet of retail space in the past decade, with 76% of those companies choosing shopping malls, where they seem to be having notable success over other retail property types, including street retail, hospitality and transit. Related: even though there has been a slowdown in brick-and-mortar retail sales, some smaller brands are still opening stores. “Online shopping can change at any moment with iOS updates or changes at Facebook. At least with stores, there’s a proven strategy that hasn’t really changed for years.”
Last year, Americans’ 401(k)s took a hit: The average retirement account balance dropped by 20% from 2021. Boomers have had the chance to save the most with the highest average balance at $232,710 (the median is $70,620). One upside is that the number of people contributing to their retirement accounts is the highest in 22 years.
Bloomberg details how the U.S. travel industry has an inclusivity problem. “Fewer than 2% of executives in hospitality are Black while C-suite personnel at North American tourism boards remain 80% White.” As the only Black entrepreneur appointed to the US Department of Commerce’s Travel and Tourism Advisory Board, Stephanie Jones is trying to further increase representation amongst decision-makers in the travel industry and change how travel experiences can cater to more diverse groups, from locations to programs and marketing.
Portfolio Highlights:
The Information announces that Chime hired Madhu Muthukumar, previously Notion’s Chief Product Officer, to lead product.
WWD covers the launch of Glossier’s new foundation, which builds on the popularity of its cult-favorite Stretch Concealer.
Ritual Founder Katerina Schneider speaks to Inc about what she learned from running a successful Amazon Prime Day marketing campaign.
Marketing Brew interviews Birdies’ president and co-founder, Marisa Sharkey, on the brand’s first sports sponsorship with Angel City Football Club, one of the newest National Women’s Soccer League expansion teams.
Healthline quotes Tally Health‘s VP of Biology and Head of R&D, Trinna Cuellar, Ph.D., MBA, in its story on habits that can make you live decades longer.
BeautyMatter covers the announcement of Ritual’s new carbon-free certification.
MindBodyGreen says Tally Health is the best biological age test for actionable results.
The Oura ring made The Strategist’s Sleep 100 list of products for a good night’s sleep.
Work at Portfolio Company:
Head of Data and Insights | Fora: Fora is reimagining the travel advisor industry by empowering entrepreneurs to transform a passion for travel into income, and building a travel agency that is modern, inclusive and tech-enabled. This role will outline, build, and deliver a data governance and permissioning plan and partner with the CEO scalably deliver monthly insights to preferred supplier partners.
Risk & Strategy Operation Lead | Faire: Faire is an online wholesale marketplace built on the belief that the future is local — independent retailers around the globe are doing more revenue than Walmart and Amazon combined. This role will facilitate critical initiatives across Risk functions, including Verifications, Underwriting, Fraud and Recovery, to drive strategic, analytical, and operational projects with the goal of protecting our community of brands and retailers.
VP of Finance | Glossier: Glossier is a people-first beauty company on a mission to give everyone a voice through beauty through physical, digital, and offline experiences inspired by its community. This role will lead financial planning and analysis, corporate finance, and serve as a business and thought partner to functional leaders across the organization.
There are ~545 other openings on our jobs site. Check ‘em out.