Brand Moves 16 - Interbrand
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June 15 2020
Brand Moves 16
Sixteen weeks ago, when the gravity of the situation became clear, we
started regular reporting on how brands were dealing with the COVID-19
crisis. What’s now becoming clear is that the current climate is one of near-
perpetual disruption. So we made the decision to keep on telling the stories
of inspiring brand leadership and strategy amid the latest crises in an anxious
world. Our goal remains the same: to provide an up-to-the-minute source
of information, inspiration and insight on brand moves as they happen
Retail & Fashion
Sportswear and shoe brand Adidas has pledged that at least 30% of new U.S. jobs at its eponymous and
Reebok divisions will go to African American and Latinx people. The German company also announced
plans to invest $20 million “in our Black communities” over the next four years and to pay for 50 university
scholarships every year for African American students. “The events of the past two weeks have caused all of
us to reflect on what we can do to confront the cultural and systemic forces that sustain racism,” CEO Kasper
Rorsted said. “We have had to look inward to ourselves as individuals and our organization and reflect on
systems that disadvantage and silence Black individuals and communities.”.
Beauty retailer Sephora has said it will dedicate 15% of its stores’ shelf space to the products of black-
owned companies, becoming the first major retailer in the United States to take the “15% pledge.” The
pledge stems from a movement that began earlier this month amid demonstrations over the death of George
Floyd and a national conversation about race inequality in America, including challenges that black business
owners face in securing representation within big retailers. “We are inspired to make the 15% Pledge because
we believe it is the right thing to do,” said Artemis Patrick, Sephora’s executive vice president and chief
merchandising officer. Currently, Sephora offers nine black-owned brands among the more than 290 it sells.
The company said it recognizes it can do better. The 15% Pledge was created by Aurora James, creative
director of the Brooklyn-based accessories brand Brother Vellies. “It’s really about a long-term commitment
to the black community,” James said. “The 15% pledge calls on major retailers to match the percentage
of the black population and commit 15 percent of their shelf space or purchasing power to black owned
businesses,” James said. Sephora Is owned by LVMH, the world’s largest luxury company.
Inditex, the owner of popular clothing retailer Zara, will close as many as 1,200 stores around the world
as the clothing retailer tries to boost online sales during the Covid-19 pandemic. However, Inditex said that
“headcount will remain stable”, with staff offered roles in other jobs such as dispatching online purchases.
Inditex said it would “absorb” between 1,000 and 1,200 mainly smaller stores, with losses concentrated
among older shops from brands other than Zara. The Spanish company’s other brands include Bershka,
Pull & Bear and Massimo Dutti. Closures are expected to be concentrated in Asia and Europe. The total
store count will fall from 7,412 to between 6,700 and 6,900 after the reorganisation, which will also include
the opening of 450 new shops. Inditex said it would accelerate its push to sell more clothes online as it seeks
to fend off the challenge of high street competitors such as H&M and the Uniqlo owner, Fast Retailing, and
newer online-only rivals including Asos and Boohoo which have prospered during lockdown. Under Inditex’s
new plan online sales will account for more than 25% of the total by 2022, compared with 14% in its 2019
financial year. Larger stores will act as distribution hubs for online sales. Inditex, controlled by its founder,
Amancio Ortega, plans to spend €1bn on its online offering by 2022 and a further €1.7bn in stores to allow
them to integrate better with websites for faster deliveries and real-time tracking of products.
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contact: hello@interbrand.comBrand Moves 16
In a terribly English protest, two of the UK’s biggest tea brands have united in support of the Black Lives
Matter movement under the #solidaritea hashtag. PG Tips and Yorkshire Tea, the second- and third-
biggest tea sellers in the UK, swung the power of their brands behind the worldwide protests during
exchanges on Twitter. When a right-wing YouTuber expressed satisfaction that the brand had not come out in
support of the movement, Yorkshire Tea, owned by the Harrogate-based Bettys and Taylors Group, replied:
“Please don’t buy our tea again. We’re taking some time to educate ourselves and plan proper action before
we post. We stand against racism.” It was soon joined by PG Tips which, in response to tweets calling for
a boycott of Yorkshire Tea, tweeted: “If you are boycotting teas that stand against racism, you’re going to
have to find two new brands now #blacklivesmatter #solidaritea”. PG Tips is owned by the consumer goods
conglomerate Unilever, which also makes Marmite and Pot Noodle among many other products.
Johnson & Johnson brand Band-Aid, which was founded in 1920, announced this week that it will launch
a new range of inclusive bandages that don’t just match white skin. “Band-Aid is dedicated to inclusivity
and providing the best healing solutions in colors that recognize a range of skin tones,” said Megan Koehler,
communications leader at Johnson & Johnson Consumer Health. “We’ve made a commitment to launch a
range of bandages in light, medium and deep shades of brown and black skin tones.” The Band-Aid brand
also announced it will also donate $100,000 to the Black Lives Matter foundation. Parent company Johnson
& Johnson said on June 2 that it plans to allocate $10 million over the next three years to fight racial injustice
in America. The 100-year-old brand has come under criticism over the years for marketing its ubiquitous
product in shades that only match very light skin colors. Frustration among communities of color led to
competitive marketing from challenging brands like Ebon-Aide, Browndages and Tru-Colour. In 2005, said
Koehler, Band-Aid launched a line with multiple skin tones called Perfect Blend, but the product was later
pulled “due to lack of interest at the time.” Koehler also pointed to the brand’s Clear Strips line of transparent
bandages, launched in the 1950s, which are “designed to be used by people with a variety of skin tones.”
Unilever has pledged to invest €1bn (£900m) over the next decade in environmental projects that will
improve the “health of the planet”. Alan Jope, Unilever’s chief executive, said that while the world was rightly
focused on the devastating coronavirus outbreak and serious issues of inequality raised by the Black Lives
Matter protests, the climate emergency should not be overlooked. “We can’t let ourselves forget that the
climate crisis is still a threat to all of us,” he said. The consumer goods giant, which owns more than 400
brands including Marmite, Dove, Comfort and Sure, said that in response to the “scale and urgency of the
climate crisis”, it was also setting a target of net-zero emissions from all its products by 2039. Unilever said
its €1bn “Climate & Nature Fund” would be used to fund projects ranging from landscape restoration and
carbon capture to wildlife protection and water preservation. Jope has warned that the company would sell
off brands that could not meet its own sustainability targets. It was no longer enough for consumer goods
companies to sell washing powders that made shirts whiter or shampoos that make hair shinier, because
consumers wanted brands that had a “purpose” too, he said.
Furniture rental subscription service Fernish has seen home office furniture rentals at the company more than
triple year-over-year as many Americans continue to work from home. A service like Fernish may make a lot of
sense for people that began working from home on a temporary basis because furniture rental contracts can
be structured to be as short as three months with an option to swap items in and out and to add new things
along the way, as well as to renew at the end of the period. “That flexibility is helpful to people,” said Michael
Barlow, CEO and co-founder. The company has continued to see overall growth throughout the pandemic,
he said, which is a snapshot of how the home furnishing retail landscape continues to evolve during the
Covid-19 crisis. Home improvement has experienced a lift in sales overall, with consumers not only spending
more time at home, but also increasingly viewing their home as a sanctuary. Home Depot, Lowe’s and Ace
Hardware all reported sales increases for their most recent quarter, for example. “People spending more time
in the comfort of their homes is likely to persist – whether that be working, recharging or entertaining,” Fernish
said in a statement. Fernish also noted it has seen a 90% increase in the rental of accessories and decor, as
customers refresh their spaces, as well as a 75% spike in rugs, throws, pillows and tabletop accessories such
as vases and bowls, and a 40% jump in lamps to create mood lighting.
/continued
website: interbrand.com
contact: hello@interbrand.comBrand Moves 16
As sister brand Walmart continues to offer curbside pickup at 3,100 of its 4,700 U.S. locations, membership
warehouse Sam’s Club said it is now rolling out its own version at its nearly 600 U.S. locations by the end
of June. The pickup service enables customers to order online to receive contact-free delivery to their cars.
Sam’s Club is offering it as a free perk to its Plus-level members, who pay an additional $55 a year for
incentives like 2% cash back on qualifying purchases, as well as free shipping and early shopping hours at
select stores. Shoppers with standard $45-a-year Club memberships will be able to use the service “for a
limited time” with limited time slots. Sam’s Club previously piloted the service at 16 stores. The retailer said
it is speeding up rollout following a growing desire among members for the convenience option. “As we
continue to innovate to make the shopping experience better and faster for our members, we’re proud to be
able to quickly implement and offer curbside pickup across the country, particularly during a time when they
are searching for alternative ways to shop,” Sam’s Club COO Lance de la Rosa said. Rival warehouse store
Costco has seen an uptick in demand since the coronavirus pandemic started. So, too, has Walmart, which
reported ecommerce sales were up 74% in Q1.
Luxury department store group Selfridges, which operates four shops in the UK, including its London
flagship on Oxford Street, is due to reopen shortly, though it will not be able to reopen services such as
beauty makeovers, hairdressing or its cafes and cinema because of Covid-19 restrictions. It is hoping a mix of
virtual experiences and live entertainments – such as DJs – will help shoppers feel no less pampered. “We will
be bringing a little bit more life and a joyful experience for customers who come to our stores,” said Meave
Wall, the stores director of Selfridges. The retailer’s online sales have doubled since its stores closed when
the UK went into lockdown. Treats including lipstick and lingerie as well as kit for lockdown life, including
loungewear and kitchen accessories, have proved particularly popular. Unlike many fashion stores, Selfridges
will also be reopening at least some of its changing rooms – with staff on hand to sanitise surfaces and
steam-clean items that have been tried on. Items that can’t be steamed will be quarantined for a minimum of
three days. Shoppers will be allowed to browse products in stores, with cleaners or shop assistants regularly
wiping down surfaces. Tester pots in the beauty halls will not be available but assistants will be able to show
products on their own skin from a safe distance. All staff will be given the option of wearing a mask and will
have their temperature checked before they start work. Hi-tech people counters will ensure the stores do not
get too crowded, with greeters on the door telling shoppers if they can enter or must wait. For those who
don’t want to venture to a store, Selfridges is upping its online services with virtual gift advice and Instagram
beauty tutorials. Video-enabled personal shopping, which has until now only been offered to regular clients,
will be bookable online by anybody from 15 June. “We want to bring Selfridges into the comfort of people’s
homes,” Wall says.
According to a new report from data intelligence platform MediaRadar, pet brands spent $131.8 million on
advertising across TV, digital, daily newspapers and weekly magazines between March 8 and May 23 – that’s
a 51% increase over the same time period last year. Pet food made up 75% of the industry’s advertising; dog
food more than cat food. In February, just prior to the Covid-19 outbreak, the U.S. Census Bureau stated
that approximately half of American households (60 million) owned a pet and higher-income families were
more likely to have a cat or dog than lower-income families. Nearly 60% of households earning $80,000 or
more per year have a pet, compared to 36% of households bringing in less than $20,000. This, along with an
apparent increase in pet adoptions during the pandemic, makes the pet business a lucrative one. Last year,
consumers spent an estimated $95.7 billion on pet products and services, including trips to the veterinarian,
up from $90.5 billion in 2018, according to the American Pet Products Association. Some of the biggest
advertisers in the pet space so far this year, according to MediaRadar, include Nestlé, General Mills and The
J.M. Smucker Company. Both Nestlé and Smucker’s have reported that their pet divisions experienced sales
growth following orders to shelter-in-place in March. While General Mills has yet to release an earnings report
that covers the relevant period, it announced in May that it expected organic net sales during the quarter to
increase by double digits compared to last year, thanks in part to its pet segment, which includes the Blue
Buffalo brand. Online retailer Chewy has reported that net sales climbed 46% to hit $1.62 billion for the
quarter ending May 3.
/continued
website: interbrand.com
contact: hello@interbrand.comBrand Moves 16
Travel & Hospitality
Airbnb has made changes to its homepage and app in an effort to get people out in their own metaphorical
backyards. The “Go Near” campaign will appear on its own homepage and app and is to be followed up with
a social media and email campaign to promote domestic travel and the platform’s own online experiences.
It was partially inspired by a survey commissioned by the brand that showed that nearly half of its U.S.
respondents said they’d prefer to stay within a day’s drive for their first trip after lockdown restrictions lift.
Airbnb also said it had seen bookings grow between the end of May and the beginning of June year-over-
year. During the same period, from May 17 to June 6, nights booked for a family – bookings including at least
one child or infant – were up 55% year-over-year. Domestic spots were among the top trending destinations,
which include Big Bear Lake, Calif., Miramar Beach and Panama City Beach, Fla., and the Great Smoky
Mountains. Airbnb wasn’t alone in sharing some internal insights this week as travel recommendation and
booking site Tripadvisor released its own findings from a months-long study examining traveler sentiment
during the pandemic. Tripadvisor’s results mirrored Airbnb’s, showing that consumers are most comfortable
traveling closer to home and to rural and beach destinations.
In a move to shore up support among frequent customers, British Airways has written to travellers belonging
to its loyalty scheme to offer them an extra year’s membership. Members have been given an extra 12 months
in recognition of their “loyalty and support.” In addition, the airline has cut the number of “tier points” required
to reach or retain the premium grades of membership by a quarter. Executive Club members have been told:
“We all love to hear some good news every now and then. And so today, we wanted to tell you something that
we hope will make you smile. As the world prepares to fly once more, we know there is still a long road ahead,
and we wanted you to know that we’ll be right there with you every step of the journey.”
Oddbird, a Swedish alcohol-free wine brand, has created a temporary restaurant called Nowhere within the
expansive Häringe nature reserve – taking the concept of socially distanced dining to a whole new level. It has
created six unique table settings scattered around in beautiful locations, free from contact with other guests.
The six place settings have been designed by Danish interior design duo The Norrmans using recycled
furniture and material, while the menu has been created by chefs Linn Söderström and Marion Ringborg of
restaurant Garba in Stockholm. Oddbird’s wines will be served alongside each meal, for those lucky enough
to get their hands on a reservation (and be living in Sweden) when bookings open.
Starbucks is accelerating plans to convert its shops’ layout to favor of pickup. The coffee shop chain
announced last week it will “increase convenience-led formats” in the U.S., including both drive-thru and
curbside pickup options, over the next 18 month. As part of this, it is closing 400 North America locations,
while adding a total of 300 net new stores in 2020. This will also apply to the growing number of Starbucks
Pickup locations, with all locations being integrated with the app. For decades, the brand positioned itself
as a venue for working and socializing, but now, many of its shops’ seating area designs makes complying
with social distancing guidelines difficult. While Starbucks began experimenting with pickup-only locations
over a year ago, it’s now positioning them as facilitators of “on the go experiences.” This includes further
increasing its Uber Eats delivery availability, along with the physical renovation of some store layouts. The
remodeling will feature the addition of a dedicated counter for mobile orders at stores with high volume, which
is expected to ease crowding among customer and courier pickups. Starbucks’s investment in mobile orders
and its digital rewards program was already paying off pre-pandemic. In February, Starbucks confirmed
that its Mobile Order & Pay program first introduced in 2015 has seen an increase in customer adoption.
In the first quarter of this year, Starbucks mobile orders accounted for approximately 17% of transactions
in the U.S., according to its earnings – up 16% year-over-year, reaching 18.9 million active U.S. members.
It also noted that during peak hours, about 5,400 stores had been seeing over 20% of transactions come in
via mobile order. The new Pickup locations go a step further than those that already integrate digital order
pickups. Not only will the retrofitted stores not allow seating, but customers will only be able to purchase
items by placing orders through the Starbucks or Uber Eats app.
Meanwhile, others are making increased investments in store experiences that limit in-person interactions.
In March, right at the start of the U.S. coronavirus outbreak, Amazon announced it will begin selling its
cashless checkout technology to other retailers. It’s been quickly implemented during the pandemic by OTG-
owned restaurants, which are mainly located at airports. In mid-March, the group rolled out its “Just Walk
Out” cashierless checkout, starting at Newark Airport’s Cibo Express Gourmet Market, with more to follow
later in the year. OTG, which operates about 350 hospitality locations, also has a partnership with Starbucks
to expand the chain’s presence throughout U.S. airports. Earlier this year, seamless checkout gained more
traction with 7-Eleven beginning tests of its own cashierless store format.
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website: interbrand.com
contact: hello@interbrand.comBrand Moves 16
European food delivery service Just Eat Takeaway has agreed to buy US-based app Grubhub for $7.3bn
(£5.8bn) in a deal that would create the world’s largest food delivery service outside China. There has been
a surge in demand in the food delivery market during the pandemic, as government shutdowns prevented
restaurants from serving diners at their premises. The tie-up will give the Netherlands-based Just Eat
Takeaway access to the lucrative food delivery market in the US, with the combined business able to serve
customers in 25 countries. Along with the US, these include some of the world’s most profitable food delivery
markets – the UK, Netherlands and Belgium. Jitse Groen, chief executive and founder of Just Eat Takeway
described himself and Grubhub boss, Matt Maloney, as “the two remaining food delivery veterans in the
sector”, adding that they started their businesses on different continents at the turn of the century. “Both of
us have a firm belief that only businesses with high-quality and profitable growth will sustain in our sector,”
Groen said. Just Eat Takeaway and Grubhub together processed 593m orders in 2019 and have more than 70
million active customers globally.
Technology
Both Twitter and Square are making #Juneteenth (June 19th) a company holiday in the US. Juneteenth is
the oldest nationally celebrated commemoration of the ending of slavery in the United States. Dating back to
1865, it was on June 19th that the Union soldiers, led by Major General Gordon Granger, landed at Galveston,
Texas with news that the war had ended and that the enslaved were now free. Juneteenth today celebrates
African American freedom and achievement, while encouraging continuous self-development and respect
for all cultures. [Editor’s note: Here at Interbrand we will also be closing our business for Juneteenth. “We
encourage everyone to use this day to reflect on their own self-education or observe Juneteenth as they
see fit,” said CEO Charles Trevail. “This is about setting a commitment to change – changing our mindset,
attitudes and systems.”]
Babynames.com, a website for expectant parents, has shared a moving tribute to black men and women
who have been violently killed in the US. The site, which offers lists of name ideas and meanings, now
shows a black box listing names of people who died as a result of violence by police or other individuals.
“Each one of these names was somebody’s baby,” a caption on the memorial reads. “Babynames.com
stands in solidarity with the black community. #Blacklives matter.” The website’s founder Jennifer Moss
said she and her colleagues were “humbled” by the public’s support for their message. “BabyNames.com
is a family owned and operated business. When we saw the names of black victims listed on NPR, we were
devastated,” she said. “Our statement is that these are not just names on a page, but loved ones. We are
humbled and grateful for the public response and hope it helps in the conversation.”
Xerox has commissioned a study of IT and tech decision-makers, which found that 82% of the workforce is
estimated to be back in the office in the next 18 months. 72% of those surveyed said their companies weren’t
ready, from a technology perspective, for the shift to remote work. Almost a third said technology was their
company’s single biggest pain point in the process. Data security ranked as the #1 reason for returning to the
office. Xerox also found that most companies are at least re-evaluating their tech budgets, and confirmed a
trend towards cloud-based business tools.
Online file transfer service WeTransfer has run a takeover in the US, donating 100% of its wallpaper ad space
to Black Lives Matter causes, including a non-profit organisation designed to combat mass incarceration,
Black Future Lab, an organisation that works to make black people powerful in politics, and the Movement
For Black Lives – a petition to defund police and to invest the money back into the black community. The
project will roll out globally this week, with WeTransfer committed to donating $1m worth of advertising space.
“Going forward, what we hear loud and clear from the company is they want to do more. This is a topic that
everyone feels very impassioned about,” co-founder and chief creative officer Damian Bradfield explained.
“Considering racism will not be fixed in the next week or two, we‘re approaching this in a thoughtful way. I
hope in the next month or two, we come back with our stance over the long-term.”
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website: interbrand.com
contact: hello@interbrand.comBrand Moves 16
Many companies have promised to match employee donations to social justice organizations. In Dropbox’s
case, for instance, every dollar is matched both by CEO Drew Houston and the company, meaning any
donation gets tripled. “On a personal note,” he said, “I’ve been spending much of the past week thinking
about the brutal injustices playing out in front of us, and how I can personally contribute to the solution. I’ve
decided to donate $500,000 to the Black Lives Matter Foundation because of its direct work to eliminate
violence and systematic racism against Black people. And starting today, I’m making an additional pledge
to match every donation made by a Dropboxer in June to the Black Lives Matter Foundation, the NAACP
Legal Defense and Educational Fund, and the National Urban League. This is in addition to the company
matching program, so it means that your contribution will have triple the impact.” Employees have been
asking friends and family to send them money, which they can donate and have matched, something that has
also said to have been done by employees at Microsoft and YouTube. And New York-based “ideas factory”
MSCHF is even trying to formalize the whole process, with a website that combines donations and transfers
them to employees of companies that offer donation matching.
A new Twitter test feature aiming to “promote informed discussion” will nudge users to read content before
they retweet. The company describes the test as a step to help people be more aware of what they’re sharing
in a broader effort to inspire “healthier conversations” on the platform. The feature will only appear for some
U.S.-based Android users for now. In May, Twitter began testing a prompt that warns users they’re about to
tweet a potentially harmful reply, based on the platform’s algorithms recognizing content that looks like stuff
often reported as harmful. Facebook tried out a similar test feature last year and reported that its results
showed promise. The idea is that giving users a chance to make different choices rather than forcing them to
do so could help reshape some of the unproductive or actively harmful strains of behavior. In the case of the
new Twitter test feature, that means nudging them to slow down and read the content of the link they’re about
to share.
Apple has just been granted a patent for software that would generate “synthetic group selfies,” which could
be a way to take group selfies for social media – even if you’re trying to stay socially distant from your friends.
According to the patent application an Apple device user could invite others to take part in a group selfie, and
the software would arrange them together in a single image. The selfie could include still photos, stored video
images, or live streaming images. Users could keep the original selfie as well as the group version, and the
original user and recipients of the group image could modify the selfie, for instance, putting themselves in a
different position in the group. Even though the idea of a socially-distant selfie seems perfect for a moment
when there’s a global pandemic restricting social gatherings, the concept wasn’t developed specifically with
the current state of affairs in mind; Apple first filed for the patent in 2018.
IBM will no longer offer general purpose facial recognition or analysis software, CEO Arvind Krishna said in
a letter to Congress. The company will also no longer develop or research the technology, IBM said. Facial
recognition software has improved greatly over the last decade thanks to advances in artificial intelligence.
At the same time, the technology has been shown to suffer from bias along lines of age, race, and ethnicity,
which can make the tools unreliable for law enforcement and security and ripe for potential civil rights
abuses. “IBM firmly opposes and will not condone uses of any [facial recognition] technology, including facial
recognition technology offered by other vendors, for mass surveillance, racial profiling, violations of basic
human rights and freedoms, or any purpose which is not consistent with our values and Principles of Trust
and Transparency,” Krishna said in the letter. “We believe now is the time to begin a national dialogue on
whether and how facial recognition technology should be employed by domestic law enforcement agencies.”
Krishna also advocated for police reform. In addition, Krishna said that “we need to create more open and
equitable pathways for all Americans to acquire marketable skills and training.”
/continued
website: interbrand.com
contact: hello@interbrand.comBrand Moves 16
Following the lead of IBM, Amazon is to implement a one-year moratorium on police use of its artificial
intelligence software Rekognition amid a growing backlash over the tech company’s ties to law enforcement.
The company has recently stated its support for the Black Lives Matter movement, which advocates for
police reform – using Twitter to call for an end to “the inequitable and brutal treatment of black people” in
the US and has put a “Black Lives Matter” banner at the top of its home page. But the company has been
criticized as hypocritical because it sells its facial recognition software to police forces. Amazon has not
said how many police forces use the technology, or how it is used, but marketing materials have promoted
Rekognition being used in conjunction with police body cameras in real time. In a statement on its blog,
Amazon said it will pull the use of its technology from police forces until there is stronger regulation around
it. “We’ve advocated that governments should put in place stronger regulations to govern the ethical use of
facial recognition technology, and in recent days, Congress appears ready to take on this challenge,” Amazon
said. “We hope this one-year moratorium might give Congress enough time to implement appropriate rules,
and we stand ready to help if requested.”
And following the lead of IBM and Amazon, Microsoft has now paused selling facial recognition tools and
called on US legislators to pass federal regulations on the use of the technology. Microsoft president Brad
Smith said that his company won’t sell facial recognition technology to US police until federal regulations are
in place. He also warned that Microsoft, Amazon, and IBM can’t act alone. “If all of the responsible companies
in the country cede this market to those that aren’t prepared to take a stand, we won’t necessarily serve the
national interest or the lives of the Black and African American people of this nation well,” he said, adding
that Congressional regulation “is the only way that we will guarantee that we protect the lives of people.” The
announcements follow several years of research, in particular from MIT Media Lab’s Joy Buolamwini and
Microsoft Research’s Timnit Gebru, showing that commercial facial recognition tools are much more likely to
misidentify darker-skinned women than lighter-skinned men.
Finance, Business & Charity
Non-profit Just Capital has been tracking the actions of America’s largest employers as part of its COVID-19
Corporate Response Tracker, and surveying members of the public to identify their views of business and
their priorities for corporate action during this time. In May, they partnered with The Harris Poll to conduct
a survey which asked 1,000 U.S. adults how business should evolve for a better tomorrow and looked at
perception across what it sees as the three phases of the coronavirus crisis – Response, Reopening, and
Reset. Most Americans (60%) agree that companies have been stepping up to protect the health, safety, and
economic security of their workforces during the COVID-19 pandemic, and almost nine in 10 Americans agree
that this is an opportunity for large companies to hit “reset” and focus on doing right by workers, customers,
communities, and the environment. Three in four Americans say they will long remember the companies
that took missteps in their response to the pandemic, and an even greater proportion – over four in five – will
remember those that did the right thing by their workers by ensuring their health and safety or doing their best
to avoid layoffs.
The Ford Foundation, founded by automaker Henry Ford’s son during the Great Depression, is borrowing
$1 billion as it joins with some of the nation’s most venerable charities to help smaller nonprofits survive an
economic slump due to the COVID-19 pandemic. The organization says it will be the first nonprofit foundation
in history to borrow through the sale of labeled social bonds – securities earmarked for funding of projects
with a tangible societal benefit such as clean drinking water, healthcare or affordable housing – in the taxable
American corporate bond market. “The nonprofit sector will be fundamentally upended and diminished by the
economic fallout from Covid-19,” said foundation president Darren Walker, whose organization is teaming with
the Doris Duke Charitable Foundation, the MacArthur Foundation, the W.K. Kellogg Foundation, and
the Andrew W. Mellon Foundation to boost their collective grants by $1.7 billion beyond normal levels over
the next two years. “The story here is really a story of something that doesn’t happen enough in philanthropy
and that is collaboration, real collaboration,” said Walker. “I have been so inspired by my colleagues who
joined and together crafted a strategy that ensured we would significantly increase our payouts in whatever
mechanism, through whatever vehicle worked for us and our boards.” The grants from the organizations will
support nonprofits that are “advancing the fight against inequality at a time when communities who are most
vulnerable have been hit hardest by the pandemic,” the Ford Foundation added. Social justice advocates say
COVID-19 and the economic downturn it caused have highlighted existing racial and economic disparities in
American society, with data showing minorities more susceptible to illness and death.
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website: interbrand.com
contact: hello@interbrand.comBrand Moves 16
In a bid to lessen the blow of COVID-19, the town of Tenino, Washington (population: 1,884) has started
issuing its own wooden dollars that can only be spent at local businesses. The local currency program works
like this: Residents below the poverty line can apply to receive money from the $10k fund that Tenino has set
aside. Wayne Fournier, the mayor of Tenino, says they also have to prove that the pandemic has impacted
them, but “we’re pretty open to what that means.” Once approved, they can pick up their stipends, printed
in wooden notes worth $25 each. The city is capping the amount each resident can accrue at 12 wooden
notes – or $300 – per month. The spending comes with a few restrictions: Residents can’t use the money
to buy cigarettes, lottery tickets, or alcohol. The currency is designed for the essentials, including food, gas,
and daycare. Almost every business in town accepts the wooden notes, and twice a month, they can submit
redemption requests to the city to turn the notes into cash. But why print the money on wood? Why not just
give residents $300 worth of federal dollars? The answer is simple: By creating its own local currency, Tenino
keeps the money in the community. “Amazon will not be accepting wooden dollars,” as Fournier puts it. “The
money stays in the city. It doesn’t go out to Walmart and Costco and all those places,” said local shopkeeper
Joyce Worrell. Closing down business these last few months, Worrell says, was “a catastrophe for a lot of us.”
But she has rallied around the wooden currency as a way to revitalize the local economy. “A lot of the people
in our city work for places that hire low-wage help, part-time help, so they’ve been out of work this whole
time,” Worrell says. “This shows that we’re doing something as a community to really step in and help.”
Sports, Entertainment & Media
Bubba Wallace, the only African American driver in NASCAR’s top-flight Cup Series, has asked the sport to
ban all uses of the Confederate flag at its events. Meanwhile, he and his team, Richard Petty Motorsports,
are preparing to race a car emblazoned with the hashtag #BlackLivesMatter. The paint scheme for Wallace’s
No. 43 Chevrolet is set to be black, unlike its look in recent races, with an image on the hood of a black hand
clasping a white one in solidarity. The front and rear of the car will feature the phrase, “Compassion, Love,
Understanding.” “I think it’s going to speak volumes for what I stand for,” Bubba Wallace said of his car’s
design, “but also what the initiative that NASCAR, the whole sport, is trying to push.” [Update: NASCAR has
now banned the Confederate flag from its meetings.]
HBO Max has removed “Gone With the Wind” from its catalog. The 1939 movie has long been considered
a triumph of American cinema, but one that romanticizes the Civil War-era South while glossing over its
racial sins. The streaming service pledged to eventually bring the film back “with a discussion of its historical
context” while denouncing its racial missteps, a spokesperson said. Meanwhile, the Paramount Network
confirmed that it had removed the reality show “Cops” from its schedule, as protests nationwide call for
police reform. “‘Cops’ is not on the Paramount Network and we don’t have any current or future plans for it to
return,” a spokeswoman for the network said.
British rapper Stormzy has announced he will donate £10m to black British causes over the next 10 years:
“Organisations, charities and movements that are committed to fighting racial inequality, justice reform and
black empowerment within the UK.” He said in a statement: “I’m lucky enough to be in the position I’m in.
Black people have been playing on an uneven field for far too long and this pledge is a continuation in the
fight to finally try and even it.” The donation is described as the “beginning of a lifetime commitment” from
him and his company #Merky. He urged others to join him in pledging to causes that support black people.
In 2018, he announced scholarships for two black students attending Cambridge University, expanding
the scheme with two more in 2019. He and black YouTube influencer Courtney Daniella were credited with
helping boost the number of black applicants inquiring about its courses, with an almost 50% increase in
admissions between 2018 and 2019. That year, he also launched #MerkyBooks, an imprint within Penguin
Random House to publish writing “from underrepresented communities”. Numerous other cultural figures
have donated to causes in the wake of the Floyd killing, and amid global Black Lives Matter protests.
Korean group BTS, the world’s biggest boy band, donated $1m to Black Lives Matter, with the donation later
matched by fans via a crowdfunding initiative. Canadian R&B singer the Weeknd has donated $500,000
across three organisations: Black Lives Matter, Know Your Rights Camp and National Bail Out. He added:
“To my fellow respected industry partners and execs – no one profits off of black music more than the labels
and streaming services. I urge you to go big and public with yours this week. It would mean the world to me
and the community if you can join us.” Lady Gaga announced a range of social justice initiatives that she was
donating to, while stars including Harry Styles and Drake have donated to bail funds for protesters.
/continued
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contact: hello@interbrand.comBrand Moves 16
Automotive
Subaru virtually revealed its all-new Crosstrek Sport – on what would have been the first press day of the
canceled 2020 North American International Auto Show. The 2020 Detroit auto show has been canceled,
as its venue was used as a field hospital for the Federal Emergency Management Administration. The event
was the third large-scale auto show to be canceled or postponed due to COVID-19, after the Geneva auto
show and a postponement of the New York International Auto Show to late August. The cancellation of the
Detroit show added to challenging times for auto shows, many of which have been losing momentum and
automaker attendees in recent years. This was the first year the Detroit show was set to take place during the
summer instead of winter, a move event organizers hoped would draw more attention, attendance and vehicle
debuts to the show. The next Detroit show will now take place in June 2021.
Fitness
As people have had to bring their exercise routines home with them due to Covid-19, fitness businesses like
Crunch Fitness, Orangetheory Fitness and SoulCycle have pivoted their businesses online – but other
platforms have had a distinct advantage in the stay-at-home shift. Online exercise platform Obé Fitness,
brainchild of co-founders and co-chief executives Mark Mullett and Ashley Mills, was well-positioned to
weather the ongoing Covid-19 pandemic, but even Obé has had to adapt. Pre-pandemic, Obé’s user base
was largely made up of women 25-54. While that still remains its largest segment, Mills said that in the wake
of Covid-19, the demographic of its subscribers has gotten much more diverse. More men have joined the
platform, and the age range has broadened as well, with month-over-month growth at 70% in March and
April. Obé is producing content in front of its paywall specifically for new audiences, such as children and
seniors. Knowing that stress levels are increasing, Obé has also incorporated guided meditation videos, a first
for the platform. Obé has also rolled out new partnerships, like one with HBO Max, called “Week of So Much
More.” It will celebrate the streaming platform’s launch with classes inspired by its shows, such as Sex and
the City and Sesame Street. Meanwhile, the founder and CEO of CrossFit is stepping down after a tweet
about George Floyd sparked a social media backlash and a wave of affiliated gyms cut ties with the company.
Reebok also dropped its affiliation with CrossFit. Founder Greg Glassman apologized for tweets that
sparked online outrage by connecting Floyd and the coronavirus pandemic. He said he had made a mistake
and should have been more sensitive, but denied being racist. “On Saturday I created a rift in the CrossFit
community and unintentionally hurt many of its members,” Glassman said. “I cannot let my behavior stand in
the way of HQ’s or affiliates’ missions.”
/ends
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