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Branded is a weekly column devoted to the intersection of marketing, business, design, and culture. Costco chair Hamilton Tony James caused a bit of a stir this week when, in an interview, he mentioned a retail category thats done surprisingly well for the big-box chain: luxury goods. “Rolex watches, Dom Pérignon, 10-carat diamonds, James offered as examples of high-end products and brands that have fit into a discount-club model more typically associated with buying staples in bulk. Affluent people, he explained, love a good deal. Courting that group may be particularly timely right nowand not just for Costco. According to a recent report from research firm Moodys Analytics, the top 10% of U.S. earners (with household incomes of $250,000 and up) now account for almost 50% of all spending; 30 years ago, they accounted for 36%. Moodys calculates that spending by this top group contributes about one-third to U.S. gross domestic product. While that reflects a serious squeeze further down the income ladder, where the price of eggs and other basics remain high, it also suggests that the comparatively well-off not only have money to spend, but theyre spending it. As of September, the affluent had increased their spending 12% over the prior year, while working-class and middle-class households had spent less. Thats having a clear effect on such sectors as travel, where the affluent have always been part of the mix but are now even more important. Delta recently reported that premium ticket sales are up 8%, much more than main-cabin sales. Bank of America found the most affluent 5% of its customers spent over 10% more on luxury goods than a year ago. Theyre going to Paris and loading up their suitcases with luxury bags and shoes and clothes, BofA Institute senior economist David Tinsley told the Wall Street Journal. For discounters and dollar stores targeting lower-income consumers, this has meant more competition for fewer dollars spent. (Dollar stores have struggled, and the discount chain Big Lots has filed for bankruptcy.) Addressing that challenge by courting the wealthy isnt an easy move, but Costco isnt alone in trying. Walmart CFO John David Rainey told Fox Business that the retail giant has expanded its selection of high-end Apple products, Bose headphones, and other items sought after by more-affluent customers,” as part of a stab at upleveling the Walmart brand. Of course, it may not be easy for most bargain-oriented brands to swiftly pivot, but Costco does seem to have more of a track record of pushing a more upscale-friendly element to its image. James noted that Costco has long counted affluent shoppers among its members36% of them have incomes of $125,000 and higher, according to consumer-data firm Numerator. A Coresight analysis from a couple years ago found that Costco customers have higher average incomes than those who shop at rival Sams Club, and thats reflected in its brand and product variety. Costcos reputation for serving that somewhat higher-income demographic makes the chain more attractive to brands that target those shoppers as well, Morningstar analyst Zain Akbari told CNBC. And of course it doesnt hurt that the chain has famously been selling gold and platinum bars. (Its also worth noting that Costcos business is doing well in general, not just with high-end customersand its reputation seems to have benefited from its reaffirmed commitment to DEI as a sound business practice.) Weve always known we could move anything in volume if the quality was good and the price was great, Costco’s James said, and that includes higher-end items that might seem like a stretch for a price-focused warehouse chain. In fact, he argued, its a natural part of the Costco brand: Both the company and its fans like to talk about the treasure hunt-feel of finding something unexpected thats not necessarily cheap, but a bargain. Were not interested in selling just anything at a low price, James added. If someone wants to buy a $500 TV for $250 at Costco, we want to sell them a $1,000 TV for $500 instead. Were always trying to find better items to sell to members, giving them a great deal. Were by no means a dollar store. It (almost) goes without saying that from a macro perspective, the massive wealth and spending-power imbalance underlying Moodys analysis points to potential problems that shifts in retail strategy wont solve: Consumer debt in delinquency is rising, and the whole economy is vulnerable if splurging by the affluent were to plummet. So while retailers will likely continue to chase after wealthier customers, the majority of consumers are left to treasure hunt for reasonably priced eggs.
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E-Commerce
In 2021, Eugene Kashuk was looking for a new venture. The Ukrainian entrepreneur realized in the wake of the pandemic that there was a large gap in education. Students were lagging behind, particularly in math. Kashuk started Brighterly, a platform that connects math teachers from all across the globe with students in the United States for private tutoring. Brighterly offers private lessons for $20 per 45-minute lessonmuch cheaper than the average rate of about $40 per hour in the United States. In part, Brighterly is able to keep costs down because it uses AI to generate lessons so teachers are able to use their time to focus on their student instead of coming up with problem sets and exams. Fast Company chatted with Kashuk about Brighterlys growth story and the role of AI in education. How does Brighterly work? Brighterly founder and CEO Eugene Kashuk [Photo: Brighterly] We are a marketplace that connects teachers with students, but we’re not an ordinary marketplace where there’s no control over quality levels or standardization. We have a pretty sophisticated way of hiring and managing teachers and only accept 3% of applicants. We look for teaching skills and soft skills: 90% of our teachers have prior teaching experience. We also have our own custom methodology and curriculum designed by a team of in-house experts, and then we use AI to generate content. On the other side, we’ve got a platform that connects teachers, parents, and kids and allows for lessons to happen. Lessons themselves are fun, interactive, and gamified, and it all revolves around the school curriculum. Its a high-impact education where we are able to gain academic results as fast as possible. You mentioned using AI to create lessons. How do you make sure its not hallucinating or creating misinformation? We are human driven in terms of the content that we create. There are some processes that you can automate using AI. For example, you need to explain fractions to a kid. The best way to do it is to find a circular object such as a pizza you split into pieces. You can use AI to generate images. You can use AI to generate ideas on what kind of circular object will work the best here and will be engaging and fun for the kids. We dont ask AI to tell us what to teach. As we see it, you can only use AI to create content that is aligned with what you teach. What do you see as the role of AI in education? When I think of AI technologies replacing human educators, I’m more afraid than excited. Ill caveat and say the technology evolves so fast that you never know what it will look like in a few years. At this point, I don’t see any potential that AI tutors might replace real human educators. In order for education to work, teachers need to form an emotional bond with their students. Not everything can be covered by logic and algorithms; you need to have that human input to understand what the child really needs. Were not at a moment where AI can really replace human interaction in education. However, we have great capabilities to generate content or to generate language to help create lessons and personalized assessments, which can be very useful for educators. So youre saying AI can lighten the load for teachers so they can focus on nourishing the emotional bond with students. And so teachers can also focus on decision-making. You need a human teacher to understand how well a student is doing and assess what they need next. For example, maybe a student seems to grasp a topic but the teacher can sense that they’d benefit from some more repetition. I don’t see at this point how AI can pick up on moments like this. Is there anything else youd like to add? The education gap isnt just in maththeres also a reading problem. We get daily requests for more reading lessons, so well be launching a reading course as well. There was a COVID relief program that allocated resources to cover those gaps, but its unclear if itll be funded in the future. In the meantime, the knowledge gap is growing. Currently, we only cover elementary and middle school, but well also be launching a high school product to help with that gap. Children are the future and right now existing solutions for the knowledge gap arent working. We need more.
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E-Commerce
But what is death? I am sitting down with Katrina Crawford and we are here to talk about the White Lotus Season 3 opening credits. Together with Mark Bashore, Crawford runs the creative studio Plains of Yonder, which has crafted the White Lotus main titles for every season so far. But that question about death wasn’t posed by me. It was posed by her. And it challenges us to reflect on the meaning of death, and the many ways to die. Since White Lotus season 3 premiered on February 16, the internet has been abuzz with theories and criticisms around who died and what the opening sequence means. In response, HBO has said: You’ll get it soon enough. So while we wait, we decided to call up Crawford and Bashore so we can dissect one of the most iconic main titles in modern history. The biggest takeaway? Some things can have more than one meaning. [Photo: Courtesy Plains of Yonder] Easter eggs or red herrings? Plains of Yonder has made over a dozen main titles for shows like The Decameron and The Lord of the Rings TV show, Rings of Power. But Crawford says that this title, for White Lotus Season 3, is by far the longest they’ve ever spent developing. While some showrunners don’t consider the main title until the end, Crawford says that Mike White gave the team a whole 10 months to craft the sequence. When they started, Cristobal Tapia de Veer, who wrote the music for previous seasons’ openers, was still composing the new soundtrack. The crew wasn’t even shooting yet. All they had was the script. White Lotus Season 3 has eight episodes. They got the script for the first seven episodes. We know a lot, Crawford tells me. But they don’t know who dies. [Photo: Courtesy Plains of Yonder] Crawford combed through those scrips and crafted meticulous profiles for every character, where she tried to understand who these characters areor who she thinks they are. Once the profiles were complete, she assigned dozens of images to them. Sometimes, she paired a character with an animal (a stoned monkey for the North Carolina mom played by Parker Posy). Sometimes, she crafted a scenario around them (Jason Isaacs’s Timothy Ratliff character appears coiled up in a tree with knives for branches.) These images might intimate a character’s fate or personality, but of course, some interpretations are more literal than others. Maybe someone is presenting one way, but something else is truth, she says. [Photo: Courtesy Plains of Yonder] Animal instincts As with every season, animals carried much of the symbolism. Weve always found that using animals are a better metaphor than people, says Bashore. Season 1 was obsessed with monkeys; Season 2 introduced humping goats; Season 3 goes all in on mythological creatures that are half-human, half-beast. (Crawford spent a month poring over Thai mythology books.) The intro opens with a circus of animals, and the first humans to be portrayed are human faces attached to bird bodies. A bit later into the sequence, Lek Patravadi’s Sritala Hollinger character (the hotel owner) appears by a pond, holding a creature that is half human, half birdperhaps a clue about her mysteriously absent husband. Most of these metaphors are predictably obscure. Amy Lou Wood (who plays Chelsea) appears in the middle of an incriminating scene depicting a leopard that has bitten off a deer’s head with two foxes bearing witness. Which animal is she? Meanwhile, Natasha Rothwell, who plays Belinda from Season 1, is portrayed next to a stork staring down at its reflection in the water, while a crocodile is lying in lurk. Will it snap her up in its jaws? [Photo: Courtesy Plains of Yonder] Fiction or reality? That the team spent ten months developing the title isn’t so surprising considering the complexity of these characters. But there is one more character in the story, and that is Thailand. Like with the first two seasons, the location plays a key role in the story. To build that sense of place, the team spent ten days filming at three Royal temples in Thailand. We shot the daylights out of it, says Bashore, noting that they took over 1,000 photos of patterns, colors, outfits, and of course, those iconic Thai rooflines. We looked for quick visual cues, patterns that feel iconically Thailand. [Photo: Courtesy Plains of Yonder] Getting permits to film was no small feat considering the sacred nature of the temples. The team had to coordinate access with HBO, and other logistical challenges meant that the title took longer to make. But could the delay signal something else? Some shows, like Game of Thrones, have created main titles that change from week to week. Was the White Lotus Season 3 main title so challenging to make because the team had to tweak it as the season progresses? Crawford gives a cheeky shrug that neither confirms nor denies it: We can’t talk about anything you haven’t seen. What we can talk about is what Crawford calls the Temple of White Lotus. Indeed, the temples help anchor the show in Thailand, but the real star of the show is the White Lotus resort, which may have been filmed at the Four Seasons Resort Koh Samui, but remains a fictional place. To emphasize the otherworldly setting, the team broke down the photographs they took into little squares and shuffled them to create new images out of themlike a patchwork that looks and feels real, but ultimately isn’t. We’re not trying to say this is a real place, says Bashore. It’s just a vibe we’re soaking in. [Photo: Courtesy Plains of Yonder] This vibe ultimately blossoms in the seven worlds the team created for the title sequence. The story begins in the jungle, then unfolds in a village, a temple, a pond (in which we see Sam Nivola’s body afloat), a gloomier forest with ominous snakes coiled around trees, an epic battle scene, and the grand finaledisaster at seawhere a throng of men gets swallowed by giant fish. Could this mass killing scene signify more than one death in the show? Crawford’s response? You know it already: But what is death?
Category:
E-Commerce
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