Research: The Influence of Shared Joy on Consumption

Barbenheimer was a cultural moment and a future Harvard Business School case study.

According to AMC Theatres, more than 40,000 people purchased tickets to the “Barbie” and “Oppenheimer” films on the films’ shared opening day without any incentive by either production studio. If you had a Venn Diagram to represent the shared values of each film, the circles would not come close to intersection. One film was clever, poignant, and funny; the other was historical, damning, and extraordinarily sad. So what was the driver of such an odd cultural moment of consumption? With the help of Carl Jung and an understanding of the previous months of cultural moments, one may begin to understand how this happened and why it will happen more often.

Advertising can influence the sale, content can influence the sale, but a cultural moment?  I believe that it can shift the conversation from influence to something more persuasive than mere influence alone. Shared joy is more moving than influence and may be the greatest precursor to consumer activity. Five recent events stand up this belief.

Prime Day, Taylor Swift, Mattel’s Barbie, J. Robert Oppenheimer, and Yellowstone’s John Dutton share a place in the American psyche and one particular commonality. On any given day, we are inundated with streaming options, endless choices of what to consume against the backdrop of a uniquely American plague of loneliness. But rarely are we presented with events.

The American consumer of the 21st century is inundated with choices; it’s more rare than ever for shared joy to find its way into one’s daily agenda. An ever-expanding universe of streaming options, blogs, Youtube videos, and social media interactions have led to a veritable bombardment of potential entertainment but fewer events. Yet, amidst this avalanche of choice, what truly captures the public’s attention, and ultimately their purchasing power, are not the standalone options, but rather the shared experiences of consuming events. These include cultural phenomena such as Amazon Prime Day, Taylor Swift’s Eras Tour, The 2023 FIFA Women’s World Cup, the concurrent release of “Barbie” and “Oppenheimer” (Barbenheimer), and even the finale of the television series “Yellowstone”.

In July 2023, we gave our nine year old daughter a choice for her ninth birthday: Taylor Swift tickets for Cincinnati, Ohio or a visit to Disneyland. She chose Disneyland and saved her parents thousands of dollars (Swift resale prices at this point passed $1,800 / ticket with fees).

The Eras Tour is predicted to become the highest-grossing global tour in history, with potential earnings over $520 million. Swift’s work during the pandemic, including the release of multiple albums, energized her fanbase and led to a surge in interest in her tour. And her rerecording of her earlier albums, a move to reclaim her master recordings, widely embraced by her fans, contributed to her rising popularity and influence. She built a consensus around her music catalogue and then leveraged this shaped public opinion into a cultural moment.

Edward Bernays, often referred to as the father of public relations, emphasized in his work “Crystallizing Public Opinion” the importance of shared sentiment in shaping public opinion. These five significant media events of the first half of 2023 perfectly crystallize Bernays’ concept, demonstrating how shared joy in consumption can drive consumerism and / or public movement.

“People are rarely aware of the real reasons which motivate their actions,” Bernays once wrote in “Propaganda.”

This quote alludes to the powerful yet often unconscious impact of shared joy in consumption. People are driven to participate in events like Amazon Prime Day or to watch movies like “Barbie” and “Oppenheimer” often without realizing the powerful psychological forces at play.

Shared joy is a powerful driver of consumption, tapping into the human need for connection and communal experience. When people go to a Taylor Swift concert, tune in for a World Cup match, or anticipate the finale of a beloved TV series like “Yellowstone”, they’re not just engaging with the content; they’re becoming part of a collective moment, a shared cultural experience that transcends the individual act of consumption. This shared joy in consumption is a psychological phenomenon that creates a sense of community, validates individual tastes, and generates a feeling of participation in a broader social narrative.

Take the Barbenheimer phenomenon. Neither of these films, alone, were indifferent in their promotion of the respective projects. Christopher Nolan’s “Oppenheimer” began its brilliant marketing campaign in the summer of 2022.

A year out from release the marketing effort kicked off with the release of a poster that also confirmed the eventual in-theater date. That poster is pretty simple but effective, showing the silhouette of a man (presumably Oppenheimer) standing amid the billowing clouds of a nuclear explosion. Nolan’s name is prominently displayed at the top of the one-sheet, an indication of what Universal feels will be a big factor in attracting audiences. (Cinematic Slant)

And the marketing strategy behind Mattel’s Barbie was nothing less than extravagant.

And together, they amplified one another while highlighting the desire for more “moments” and less entertainment. Entertainment can present a communal moment but not every communal moment is entertainment, for the record. Moments like Barbenheimer present opportunities for communal participation and excitement, as consumers not only look forward to the experience but also enjoy the build-up, discussion, and sense of belonging that come with these events. This anticipation and shared excitement foster a deeper level of engagement, leading to significant boosts in consumption.

Bernays noted that people are more likely to act on their desires and impulses when they perceive that their opinions and actions are shared by a group. This principle underpins these media events. The energy and excitement generated by shared joy in consumption transform them into significant cultural moments, driving sales not just in media consumption but also in related retail areas. This is a hope that Mattel is reliant upon.

The resurgent interest in Barbie offers a boon for Mattel. As fans flock to theaters, shared nostalgia and renewed attention spur an increase in Barbie doll sales, demonstrating the power of media events to drive retail consumption. Our 15 year old didn’t drag her parents to the film, we suggested it to her. She can take credit for making us wear pink, however; arriving at the theater, we noticed that we were far from the only ones.

And consider the synergistic relationship between the Women’s World Cup and Nike’s promotion of the event. The collective excitement surrounding the tournament fuels interest in the sport, thereby boosting the demand for related merchandise. Nike, understanding this dynamic, capitalizes on the heightened attention, promoting its brand and products in conjunction with the event, further driving sales.

The Amazon Prime Day phenomenon provides another compelling example. What began as a sales event within Amazon’s platform has expanded into a broader eCommerce event, with other brands and retailer offering discounts tied to Prime Day. We discussed this in tremendous detail here. This shared anticipation and excitement around the event extend beyond Amazon, driving increased sales across the retail sector.

While the vast array of streaming options and online shopping opportunities offer myriad choices for the modern consumer, it’s clear that what truly captivates and drives consumption are shared experiences. These events offer a sense of community and shared joy that not only drives media consumption but also boosts retail sales.

From Taylor Swift’s Eras Tour to the Barbenheimer phenomenon, from the adrenaline of the Women’s World Cup to the captivating narrative of “Yellowstone,” these media events exemplify the profound impact of shared joy in consumption. By tapping into the powerful psychology of communal experience, these events become cultural touchstones that drive consumer behavior and shape public opinion, perfectly crystallizing the theories of Edward Bernays in the modern world of media and retail.

As we move forward, businesses and media entities must recognize and harness the power of these shared experiences in the post-broadcast era. The future of consumerism lies not just in the sheer quantity of options, but more importantly, in the quality of shared experiences that inspire joy and foster a sense of community.

The landscape of consumerism has evolved. The public’s affinity towards shared experiences, as evidenced by the success of Amazon Prime Day and others mentioned is a testament to the potent psychological impact of shared joy in consumption.

Bernays was the first to shed light on how collective sentiment can stimulate consumption. By creating a sense of anticipation, involvement, and community, these events foster an environment conducive to consumer spending. Indeed, these five events were not just isolated media spectacles but crucial catalysts for commercial activity, demonstrating the immense potential of shared joy in consumption. As businesses and media entities continue to innovate and adapt to consumer behavior, they must take heed of this powerful principle. The future of consumption lies not in the plethora of choices alone but, more importantly, in the collective experiences that bind us all in shared anticipation, excitement, and joy. The celebration of these shared experiences is what truly propels the engine of modern consumerism. Variety Magazine explained:

The cultural craze of “Barbenheimer,” complete with double features of the seemingly different blockbusters with matching release dates, helped to fuel the biggest collective weekend at the box office since the pandemic. More impressively, the box office powered to its fourth-biggest weekend in history with over $300 million industry wide.

Thus, to quote Jeff Goldstein, President of Domestic Distribution at Warner Bros, in reference to the success of “Barbie,” the phenomenon of shared joy in consumption can be summed up: “This historic result reflects the intense heat, interest and enthusiasm for Barbie. This doll will indeed have long long legs.” The film’s influence, reach, and impact on consumer behavior will indeed endure and continue to shape the landscape of global consumerism. And for years to come, studios will attempt to duplicate the moment shared between the father of the atom bomb and Ruth Handler’s 1959 invention for America’s little girls.

These two minds of the last American midcentury, essential in their own ways, met in 2023 to change the course of an embattled film industry (during a difficult time for its many workers). The second order effects of Greta Gerwig and Christopher Nolan’s directorial works provided the grounds to analyze how the two inventors-turned-media IP accomplished what they did – both on screen and off. “Barbie” marked the biggest opening weekend of 2023 and the biggest debut ever for a film directed by a woman. The performance of both films helped contribute to one of the top four largest box office weekends in history, earning over $300 million collectively.

The Swift lyrics almost write themselves.

By Web Smith | Edited by Hilary Milnes with art by Alex Remy and Christina Williams

Memo: Four Trends For Fashion’s Future

When you think of Vuori, Psycho Bunny, Faherty, Johnnie-O, and Bombas, you think of their rare growth trajectories. None of the brands were first-movers; they each had stiff competition form incumbent retail brands and better-positioned DTCs. But something set them apart from the rest. Here’s an example of how many of these brands work against the typical best practices associated with the segment:

Tucked away in suburban Ohio, a small boutique features a number of brands, none of which are native to the midwest. One trip around the Trevor Furbay boutique in Dublin and you’ll find Faherty, Johnnie-O, and Vuori among others. For smaller formatted stores like this one, it’s rarer to find modern brands of the caliber of those mentioned. For the brands, this type of distribution is a lot of work for relatively little revenue. To a brand of Vuori’s size, this could seem like a waste of time and energy. But for brands like these, who’ve excelled in the art of finding customers where they are, there is no such thing as an account too big or one too small.

These brands are not just popular; they are reshaping what high-performance retail looks like. With their own unique stories and approaches to business, they are rewriting the rules of success for retailers across the globe. Let’s delve deeper. In a recent deep dive by Women’s Wear Daily, the report explained the characteristics that other DTC brands can replicate for their own success. WWD explains the difficulty in achieving what these brand have:

But there are brands that have managed to break that cycle and build highly profitable businesses. In menswear, some of the most impressive include Vuori, Psycho Bunny, Faherty, Johnnie-O and Bombas. Although they service different parts of the market — everything from socks and activewear to polos and beachy button-downs — they have managed to navigate through the potential pitfalls to build multimillion-dollar businesses.

Their stories emphasize the importance of authenticity, quality, social responsibility, and community engagement – trends that are shaping the future of the retail industry.

In an increasingly competitive market, staying true to a brand’s ethos while adapting to market shifts is as difficult as it is crucial. As these brands demonstrate, remaining customer-focused and delivering high-quality products can drive significant growth. Upcoming retailers and DTC brands looking to replicate this success should focus on these aspects: offering unique, quality products, demonstrating social responsibility, fostering a strong brand community, and perfecting channel mix.

This could not come at a better time as fashion retail is poised for a leap in volume of sales for 2023. It’s never been more important to be build close relationships with consumers as competition grows between competitive brands.

Seeing those brands prioritize a small but potentially influential local retailer got me thinking about how each of these companies did so well to build brands with loyal followings, appropriate amounts of inventory, reach, and profitable growth. Here are the top four characteristics shared by each of these retailers.

Trend: Prioritize Product Quality and Innovation

Product reigns supreme in these companies. If you’ve shopped any of them, this is evident. They understand the three Ps of business: Product, Product, and Product. Bombas, a sock company that also deals in other basics, has taken the ‘product-first’ strategy to heart. They prioritize the quality and the utility of their products and you can tell when you wear them. Faherty, an East Coast-based family business, also follows this principle. They deliver products with an East Coast beach flavor made from sustainably sourced materials. The key to their success has been their dedication to creating exceptional products that are both durable enough, appealing, and readily available to consumers.

Vuori was a fitness brand born out of necessity, and another exemplar of this strategy. In “Size Charts, Returns, and EBITDA,” I explained:

Over the course of the pandemic, Vuori became one of the fastest-growing modern brands in the fashion retail space. When the retailer landed its $400 million Softbank investment (at a $4 billion valuation) in 2021, I admittedly didn’t understand the buzz. Then I bought my first pair of joggers from them around a year later. REI, one of Vuori’s top wholesale partners, made it easy. A section of the store is devoted to the brand and an REI associate is frequently stationed within the shop to answer any questions. I was an immediate fan.

Vuori offered an innovative solution to a lack of appealing athletic wear, leading to its exponential growth.

Trend: Craft a Distinct Brand Story and Culture

These standout brands don’t just deliver great products; they also built compelling stories and cultures around their brands. As CEO Dave Gatto of Johnnie-O said, “a brand is a living organism, more than just a logo or a name.” A successful company must create a culture that reflects its brand ethos.

Psycho Bunny turned the challenges it faced in its early years into an inspiring success story. This excerpt begins the narrative that laid the groundwork for the company’s present day stature:

But around 2013, things began to unravel and Psycho Bunny experienced operational issues and internal struggles. Enter Alen Brandman to the rescue.

In 2021, Brandman became the brand’s majority owner. Similarly, Bombas’ advertising campaign Compassion = Change was a powerful expression of its brand story. This campaign was instrumental in spreading awareness about homelessness and promoting a more compassionate approach towards this issue. And, Faherty had a strong human capital ethos that shaped its culture and had consistently been a part of its brand story over the past decade.

Trend: Understand Your Customer and Their Needs

These successful DTC retailers understood their customers and their needs better than anyone else. Johnnie-O’s focus on ‘West Coast prep’ resonated with its target market. Bombas’ approach to addressing the issue of homelessness through its business model appealed to its consumers’ sense of social responsibility. Vuori and Faherty too, with their unique, high-quality wears, understood and catered to the needs of their respective target markets. This quote by Brandman was pretty solid:

Men especially are strange creatures. Some men have the same type of underwear for 12 years. Some men have the same T-shirt for 10 years, so you need to make sure those core fundamentals are treated with great respect to ensure people are going to come back. And we’re not going to do anything to breach that trust.

These brands are not just selling products; they are partnering with their consumers, selling a lifestyle and fostering loyalty to an identity that their customers could connect with.

Trend: Leverage Multiple Channels for Distribution and Growth

This is the key trend, in my opinion. And it goes back to the second paragraph: several of these brands saw value in working with a small store that would barely move the needle from a sales volume standpoint. Each of these brands recognized the importance of multiple distribution channels to their growth. While direct-to-consumer retail was a crucial part of their success, they also understood the value of physical retail spaces and wholesale partnerships.

Faherty, for example, has a significant brick-and-mortar presence and operates 52 stores around the US. Psycho Bunny, despite facing internal struggles and operational issues in the past, managed to bounce back and is currently present in over 70 retail locations across North America. Vuori has followed a similar path, starting out as a direct-to-consumer brand, and then branching out into wholesale. Their strategy shows how a multi-channel approach can help a brand expand its reach and tap into different customer segments.

The success stories of these high-performing DTC brands offer a road map for other retailers. By focusing on product quality, crafting a compelling brand story, understanding the customer, and leveraging multiple channels for distribution, a retailer can replicate their success. But in the end, the internet remains the center of the wheel for these retailers. Vuori founder Joe Kudla:

There’s so much to learn about navigating different cultures and consumer preferences, but that’s the stuff I view as fun. The real challenges were raising money and getting our product marketing and fit correct. Two years in, I thought we were going to run out of money so I thank my lucky stars for the internet and being able to sell online.

These brands have shown that it’s possible to carve out a niche in the market by taking lessons from DTC’s past and challenging the status quo. As the retail landscape continues to evolve, the lessons from these trailblazing brands will remain relevant, guiding the way for future DTC success stories.

Emulating these brands doesn’t require massive investment or out-of-the-box thinking, but instead a dedication to quality, community, and authenticity. It’s a testament to the potential of retail done right, proof that in an industry often seen as challenging and unpredictable, success is achievable when businesses stay true to their values and put the customer first.

By Web Smith | Edited by Hilary Milnes with art by Alex Remy and Christina Williams 

Memo: The Returns Coup

The eCommerce industry is a dance between partners, economic conditions, and balance sheets. Affirm, Shopify, Deliverr, Flexport, Returnly, and Loop have all had their moments on the dance floor this year – each striving to perfect their routine while keeping pace with the rhythm of market dynamics, consumer behavior, and technological progress. But of them all, Shopify is the key benefactor; Loop is the latest beneficiary. Effectively acquiring the chief competitor while bolstering its relationships with two of the most important software platforms in all of commerce.

It’s all one big give and take. Shopify’s divestment of its Deliverr investment may see Flexport benefit over the longterm. Shopify and Flexport deepened their alliance as a result.

Shopify and Flexport are deepening their alliance as Shopify seeks to compete with e-commerce rivals such as Amazon and Walmart. The companies announced a partnership in February that gives Shopify merchants access to Flexport’s freight services, including booking international shipments from suppliers to their warehouses. Flexport also counts Shopify as an investor.

Then, last week, it was publicly announced that Loop did a deal of a lifetime. In what was essentially an acquisition of Returnly, CEO Jon Poma structured a deal that may send a large number of Returnly’s clients from Affirm to Loop in exchange for Loop stock to Affirm (though this agreement is a partnership and not a bonafide acquisition). In line with what was explained above, Affirm counts Shopify as an investor. Loop also counts Shopify as an investor.

Amidst this symphony, the returns segment of the industry has often been offbeat, posing significant challenges to both consumers and retailers. The ‘return to sender’ card was held by as much as 16.5% of overall sales in the past year, tallying up to an imposing $800 billion-plus in return value according to Wayne Pommen, Affirm’s Chief Financial Officer. But as any seasoned dancer would know, to evolve, sometimes, you need to learn new steps. Reflecting this ethos, Affirm and Loop Returns have choreographed a strategic partnership that will nearly double Loop’s business and remove a competitor, all while improving Shopify’s position in a two-fold manner.

Returnly’s clients partnering with the long-time Shopify loyal, Loop Returns, means more ecosystem lock-in and a surer bet from its equity position from its 2021 investment into Loop.

While Shopify was investing in Loop’s Series B, Affirm and Returnly partnered for a tango of their own. Acquiring Returnly was Affirm’s response to the incessant growth of returns and an attempt to streamline the industry. The data reflected in this essay’s title card can begin to explain why Affirm was motivated to enter the returns business. Returns revenues boomed in 2021.

Returnly, with its self-service online returns experience, catered to more than 8 million shoppers, swaying to the beat of returns and exchanges. Yet, two years later, influenced by the increasing importance of core profitability, Affirm decided to change both its dance and its partner. Divesting Returnly, Affirm moved in tune with Shopify’s previous divestment from its logistics business, underlining a trend of letting specialized partners lead in non-core operations.

Ironically, Loop Returns, a company now nurtured with investments from both Affirm and Shopify, emerged as the beneficiary of these strategic divestments. Loop, with its commitment to making returns a more harmonious dance for businesses and customers, struck the right chord. It provided the perfect rhythm for more than 2,200 merchants, enabling them to reduce refunds and retain more revenue according to Pommen (not to be confused with Poma). Affirm’s new dance partner will prove to be a harmonious fit. The timing of the transition couldn’t have been better.

Loop’s CEO, Jonathan Poma, described the partnership as a grand assembly of industry leaders, sharing the common goal of orchestrating better returns for businesses and customers. Poma said merchants moving from Returnly to Loop “will be joining brands such as Princess Polly, Allbirds and Tecovas who continue to trust Loop to manage their returns. Joining Loop’s platform will positively impact your business by delivering meaningful cost savings — from reducing refunds to optimizing your reverse logistics processes.”

With Affirm passing the baton of Returnly to Loop, it enables the latter to optimize the returns experience for an additional 1,500-plus merchants. For these merchants, joining Loop’s platform holds the promise of transforming their returns process from a frenzied jig into a well-orchestrated waltz, with cost savings, enhanced operational efficiency, and a seamless customer experience.

As PYMNTS recently reported, Affirm’s acquisition of Returnly for $300 million in cash and equity occurred at a time when the eCommerce dance floor was more crowded than ever; the pandemic, hungry investors, and a quickening pace of adoption all influenced the all-cash deal and 10x return to Returnly’s venture capitalists. But as the music (ahem, economy) slowed, Affirm decided to refocus on its core operations, a move that echoes the strategic decisions of other key players in the eCommerce sector. Affirm’s CFO said it best:

This partnership with Loop and the divestiture of the Returnly business will allow Affirm to take an even deeper focus on driving strong growth and profitability in our core business, serving our merchant and platform partners with world-class payments and technology solutions, accelerating our direct-to-consumer offerings, and building on our deep capabilities in underwriting and decisioning.

Translation: Affirm needs to capture as much of this growth as possible to remain a viable BNPL business:

As this grand dance progresses, the trend is evident. eCommerce industrialists are recognizing the value of forming equity-based, strategic partnerships to address non-core operations, allowing them to concentrate on perfecting their signature moves. The strategic decisions of Affirm and Shopify to divest from non-core operations and engage Loop Returns in managing the returns process mark a significant shift in the eCommerce industry. In many ways, Loop executed the perfect coup.

By setting new trends and orchestrating new, long-term partnerships, these companies are poised to redefine the eCommerce landscape and its financing mechanisms. As Shopify, Affirm, and Loop continues to improvise and innovate, the dance of eCommerce is set to reflect improved efficiency, enhanced customer satisfaction, and increased profitability. It’s a dance where everyone is learning, adapting, and, above all, evolving.

By Web Smith | Edited by Hilary Milnes with art by Alex Remy and Christina Williams