The CQ: Upbeat Consumers & TikTok as a Search Engine
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By Forerunner
What We’re Talking About on Slack:
Americans are suddenly more upbeat about the economy. According to the University of Michigan’s survey, consumer sentiment is up 29% from November, the biggest two-month increase since 1991. While this number is still 20% lower than before the pandemic, this boost shows that consumers are feeling better and likely to continue spending. “Unemployment is historically low, and hiring is still strong. What has changed is that inflation is cooling rapidly, while mortgage rates are down sharply from last year and the S&P 500 rose to a record high Friday.”
A new MIT survey finds that humans are cheaper than AI in the vast majority of jobs. Contrary to the growing anxiety that artificial intelligence will take jobs from humans, researchers discovered that only 23% of workers could cost-effectively be replaced. The other types of work required AI-assisted visual recognition, which is expensive to install and operate, so people would perform these tasks more economically. An example of this is that it would be less expensive to pay bakers to visually inspect ingredients for quality control than to implement cameras and an AI system. “We show that there will be more automation in retail and healthcare, and less in areas like construction, mining or real estate,” says the MIT director who worked on the study.
The new book Filterworld explains how algorithms “flattened our culture,” essentially because we’ve allowed computers to do the decision-making for us, taking power away from tastemakers. Author Kyle Chayka spoke with Esquire about how this leads both creators and consumers to conform to the feed. “Algorithmic feeds push us to become more passive consumers, to not really think about what we’re consuming, to float along on the feed and not think about our own taste too much. I feel like that makes us into more boring people. It makes the cultural landscape less interesting, but it also takes away this opportunity for us to encounter art that is really shocking or surprising or ambiguous.”
Using TikTok as a search engine is rising in popularity, with 2 in 5 Americans having used the social platform to search, and 1 in 10 Gen Z’ers preferring it over Google. In terms of content, people often search for new recipes on TikTok as well as new music, DIY tips, and fashion advice. This opens up an opportunity for businesses to leverage TikTok to cater to search intent. More than 50% of business owners have used the platform to promote their companies in some form (36% product or service reviews, 35% video tutorials, 29% personal anecdotes, and 29% trending challenges or memes). Plus, 1 in 4 small business owners have used TikTok influencers for product sales or promotions.
‘Greedflation’ caused more than half of last year’s inflation surge, while corporate profits are at an all-time high. A new economic report shows that corporate profits drove 53% of inflation during the second and third quarters of last year, and more than one-third since the start of the pandemic. For perspective, in the four decades prior to the pandemic, profits drove 11% of price growth. “That high-profit, lower-volume dynamic is even hurting workers—who are being scheduled for fewer shifts to service fewer shoppers, who are themselves put off by ever-increasing prices.”
If you’ve ever had to repeat your request over and over and your issue still isn’t getting resolved, you’re likely among the many customers who are miserable from getting stuck in a chatbot ‘cycle of doom.’ Customer satisfaction is at its lowest since 2015, according to the UK-based Institute of Customer Service. Over 40% of customers said they will avoid using a business if they are not satisfied with customer service. While chatbot technology is expected to improve over time, experts say that it’s still important to provide contact with a real human being. “Customers are demanding better service, especially in times of rising costs and uncertainty. They will not hesitate to switch to organizations that they can trust to deliver on their expectations.”
Microsoft launches a Pro plan for Copilot. “Microsoft evidently envisions Copilot, the umbrella brand for its portfolio of AI-powered, content-generating technologies, becoming a significant future revenue line-item. And that’s perhaps not far off base; according to the company, more than 40% of the Fortune 100 participated in its Copilot early access program.” For $20 per user per month, the new consumer plan provides access to Copilot GenAI features across Word, Excel, PowerPoint, Outlook and OneNote on PC, Mac and iPad. Copilot Pro subscribers get 100 “boosts” per day in its AI-powered image creation tool, to speed up and improve the image generation process. The company is also expanding its business availability.
Brands find a new way to reach many consumers: older women. There’s been a rise in older women influencers and many have gained large followings—including an impressive number of young women between the ages of 18 to 35—based on their empowering message about getting older. More companies are taking notice and forming partnerships with them. “The content [from older female influencers] is doing really well. Not only is the engagement strong, but they’re buying,” says a CEO of an influencer marketing company. Older women are an untapped market: 1 out of 10 American workers is a woman 55 or older, and the number of over-50 women globally is expected to grow by 70% by 2050.
Gen Z is bringing back the part-time job, reversing the trend of fewer millennials working when they were teens. Over 35% of 16- to 19-year-olds had a job or were looking for one in 2023, the highest annual rate since 2009, according to Labor Department data. More available entry-level jobs in hospitality and retail as well as an increase in starting wages have attracted teens, who say financial independence, trying new things, and rising costs are among their reasons for wanting to work. Considering today’s teens spend twice as much time doing homework as kids did in the 1990s and getting into college has become more competitive since then as well, working teens will have less time for school work, extracurricular activities, and socializing.
In 2016 the brand was voted America’s most hated retailer, but nowAbercrombie has become a Gen Z favorite. Fast Company documents the recent transformation of the130-year-old brand, morphing from a frat-boy aesthetic with over-sexualized imagery to classic clothing with accessible price points and size-inclusive designs targeted towards twenty-somethings, a demographic that’s not currently being served by many major brands. “The new clothing design is smart. It’s not just tailored clothing or activewear. It’s the right assortment for a balanced lifestyle.” To promote their redesign, the company partnered with influencers instead of opting for an ad strategy, and it paid off. Abercrombie & Fitch “gained 285% on the stock market in 2023, making it the best performing stock on the S&P Index. It generated $4.03 billion in revenue during the 12 months ending in October 2023, with 10% year-over-year growth. The brand expects to hit a $5 billion revenue target in the next few years.”
Portfolio Highlights:
SheKnows reports that Gwyneth Paltrow tried Tally Health’s biological aging test. (Spoiler: She thinks it’s cool.)
Ritual’s chief impact officer Lindsay Dahl visited the Nutra Payments podcast to talk about safety and efficacy in the supplement industry and more.
Elle runs down the 11 Glossier products their editors love.
In CNN, supermodel Karlie Kloss lists her Oura ring as one of her everyday essentials.
Yahoo!Life reports that singer and songwriter Kelsea Balleriniloves Ritual’s Multivitamin 18+, saying, “I’ve noticed such a difference.”
Forerunner Highlights:
The Generalist features founder and partner Kirsten Green, as she discusses everything from success to human psychology and architecture.