Sunday, 19 October 2025

Singles Day Starts Early

China's largest annual online shopping event, traditionally Singles' Day (November 11), was intentionally launched a record five weeks early—starting in early-to-mid October—by major e-commerce platforms like Alibaba and JD.com. This aggressive early start is a direct response to the Chinese economy's persistent challenge of flagging consumer spending and low confidence, particularly following a weak retail performance during the Golden Week national holiday. The extended season, which transforms the event from a one-day frenzy into a month-long marathon of discounts, is designed to smooth out logistics, ease delivery bottlenecks, and leverage government stimulus aimed at boosting consumption. Platforms are heavily promoting government-backed trade-in programs for durable goods like consumer electronics and home appliances by stacking their own subsidies on top of national discounts. Chinese consumers have adopted more cautious spending habits since the Covid-19 pandemic, this spending crunch has hit high-end retailers especially hard. Fashion brands like Louis Vuitton and Burberry reported a drop in sales in recent months in China, which accounts for around a third of global luxury sales.

BBQ - Why does a spending crunch impact luxury brands the most?

Customers Sue Squeaky On Shoe

The Swiss athletic footwear company, On, is facing a major class-action lawsuit in the US over an alleged defect in its premium-priced CloudTec running and lifestyle shoes. The complaint, led by two consumers who bought models like the Cloudmonster and Cloud 5, alleges that the signature hollow-pod sole design causes the shoes to produce a "loud, embarrassing, and difficult-to-stop squeaking sound" with every step. The lawsuit asserts that this noise, often caused by friction or trapped moisture within the sole's air pockets, renders the shoes—which retail for over £150—unfit for their ordinary purpose. The plaintiffs accuse On of deceptive marketing and fraudulent business practices by knowing about this widespread problem (as evidenced by numerous online complaints and "DIY fixes") but failing to warn buyers, refusing to remedy the issue, and excluding the "squeaking defect" from their warranty coverage. The lawsuit is seeking over $5 million in damages and demands that On be required to fix or replace the defective shoes and warn future customers. The complaint argues that no reasonable consumer would pay the premium price for the shoes knowing they would be so noisy and unusable in public.

BBQ - Is the customer always right? What do you think On should do?

Lamborghini Swerves Electric Future

Lamborghini is reportedly stepping back from an immediate all-electric future, pushing back the launch of its first fully electric vehicle, the Lanzador, and potentially changing it from a Battery Electric Vehicle (BEV) to a Plug-in Hybrid (PHEV) for its expected 2029 arrival. Citing cooling demand for high-end electric sports cars globally, CEO Stephan Winkelmann stated the market is not yet ready for a fully electric model in their segment, as customers continue to prioritize the emotional experience of a traditional engine. Instead, the brand is doubling down on high-performance plug-in hybrids, exemplified by models like the Revuelto, Temerario, and the Urus SE, while also championing the development of synthetic e-fuels. Lamborghini views these carbon-neutral fuels as a potential "savior" for the internal combustion engine, allowing their iconic V8 and V12 motors to remain in production as long as regulations permit, thereby preserving the visceral sound and feel that defines the brand. Mr Winkelmann insisted the business was socially responsible, but added that as a low-volume manufacturer, its actions would have a limited impact on the environment.

BBQ - Explain two reasons why a luxury car manufacturer like Lamborghini might delay its plans for a fully electric vehicle (EV) launch

Friday, 10 October 2025

Christmas 2025 Top Toys Predicted

In a surprising shift for 2025, the biggest buzz in the toy world is moving away from complex, high-tech gadgets and returning to simple, tactile joy. According to leading retailers like Hamleys, the expected number one craze this Christmas is the charmingly low-tech Ty Bouncers which start at around £7. This forecast comes after months of rigorous trend analysis and panel testing by Hamleys' expert buyers and children's focus groups. These fluffy, bouncy spheres—from cartoon cats to movie characters—are touted as the perfect "sensory break from digital overload," offering uncomplicated, physical fun that appeals to all ages. Alongside this trend, novelty food-themed toys are also seeing a major revival, proving that sometimes, the best gifts are the ones that are silly, soft, and don't require a Wi-Fi connection. Get ready for a Christmas defined by bounce, fuzz, and pure, old-fashioned play!

BBQ - Why is it important for toy retails to understand the trends for Christmas 2025 so early?

John Lewis Building Flats

 
The John Lewis Partnership (JLP) has received unanimous approval from Reading Borough Council for its £70 million plan to build 170 rental apartments in the town centre. This project, which will see the demolition of a former JLP warehouse on Mill Lane, marks a major step in the company's new strategy to diversify its revenue by entering the "build-to-rent" housing market as a landlord. The development will offer a mix of one, two, and three-bedroom energy-efficient flats, with 16% designated as affordable housing (though this is below the council's target). By regenerating an underused brownfield site and promising high-quality design, communal amenity spaces (like a gym and co-working area), and a long-term commitment to the community, JLP aims to leverage the trust associated with its retail brand to provide much-needed, high-standard rental accommodation.

 BBQ - Explain a reason why a large retail business might choose to diversify its operations by moving into a completely different market, such as property and housing.

John Lewis Homes

Tesla Shares Fall

Hopes for a significant boost to Tesla's stock price were dashed this week as the much-anticipated rollout of its "lower-cost" models failed to impress investors. Despite CEO Elon Musk's assurances of increased affordability and wider market appeal, the company's shares experienced a noticeable dip following the unveiling, leaving many analysts questioning the immediate future of the electric vehicle giant. While the new models are indeed priced lower than their premium counterparts, the term "lower-cost" seems to be a relative one, with the price point still remaining a significant hurdle for many mass-market consumers - the new Model 3 Standard starts at $36,990 and the Model Y Standard at $39,990Furthermore, critics point to a perceived lack of groundbreaking innovation in these new vehicles, suggesting they don't offer enough to differentiate them from increasingly competitive rivals in the EV space, underscoring the challenge for Tesla in balancing high-growth expectations with mass-market accessibility and profitability.

BBQ - Explain how the disappointment with the new Tesla Model 3 and Model Y could negatively affect two other elements of the marketing mix (Promotion and Place) for Tesla.

 

Wednesday, 1 October 2025

Black History Month

Black History Month is a time to honour the achievements of Black individuals across all sectors, and the world of business is no exception. From historical trailblazers like Madam C.J. Walker to modern UK innovators such as Sharmadean Reid and Jamal Edwards, Black entrepreneurs have consistently driven change through creativity, resilience, and a deep understanding of their communities. Their ventures have not only created economic opportunities but also challenged stereotypes and inspired future generations. Despite facing barriers such as limited access to funding and underrepresentation, Black business leaders continue to thrive by embracing digital platforms, building strong brands, and leading with purpose. Their stories offer valuable lessons in innovation, adaptability, and social impact—key themes for any aspiring entrepreneur or business student. Supporting and learning from Black-owned businesses is not just a celebration of heritage, but a step toward a more inclusive and dynamic business landscape. Check out the story of Sharmadean Reid by following the link below...