Out of Scope Issue 118: Tweets & Threads
Plus: A comms take on SCOTUS’ latest and Mattel’s big plans
Happy Friday!
The workweek may be shorter, but the coverage packs a punch. We observed the next big faceoff in the social media landscape, but first…
📡ON OUR RADAR
The Supreme Court's affirmative action ruling could potentially create a ripple effect in corporate America. Although the verdict specifically addresses college admissions rather than companies' diversity initiatives, certain brands express concerns regarding the talent pipeline and its influence on corporate diversity, equity, and inclusion (DEI) efforts. From a corporate communications perspective, it will be interesting to see how the ruling impacts various areas such as HR, internal and external communications, and how diversity initiatives are conveyed to potential and current employees.
Shein, a China-based online retailer known for its affordable clothing, may be eyeing a potential U.S. IPO. However, the company recently faced criticism for inviting influencers to tour its factory amidst allegations of human rights violations and harmful environmental impact. Consumers expressed concerns about the trip's authenticity and influencers' role in holding brands accountable. While it remains uncertain whether Shein will proceed with the IPO, ongoing scrutiny from lawmakers and the company's defense suggest that the controversy surrounding Shein will continue.
💡ON OUR MINDS: Tweets & Threads
Twitter is facing intensified competition as rival firms take advantage of user frustration over Elon Musk's tweet-limiting decision. In what Musk described as a protective measure, unverified and verified accounts are temporarily restricted in how many posts they can read, prompting significant consumer backlash.
The outcry over the new post-limiting policy created an opportune moment for rival companies to gain traction. Meta, the parent company of Instagram, launched a rival platform called Threads (downloaded 30 million times in 16 hours). The rise of other social media platforms like Bluesky (rapidly attracting Twitter's sports community) and Spill further threatens Twitter's core business.
While Musk aims to transform Twitter into a super app with subscriptions and video features, financial difficulties and industry-wide spending reductions complicate his efforts. Twitter's global ad revenue in Q2 dropped by about 40% compared to last year.
It remains to be seen whether any rival can meet and surpass Twitter's audience and brand recognition, but one thing has emerged - brands have more options and power than ever to choose where and how they advertise.
🥊QUICK HITS:
In case you missed these reads.
CEO turned conservationist: Former CEO of Patagonia, Kris Tompkins, left her corporate career to focus on wildlife conservation and champion the collaborative efforts of environmentalism and capitalism in tackling pressing global challenges.
This week, GQ found itself as the story by retracting an article from its website that had initially criticized media titan David Zaslav.
Barbie remains a trendsetter. Mattel, the toy company behind the iconic doll, recently launched The Mattel Cinematic Universe, featuring a whopping 45 movies inspired by various toys in their lineup.
Thanks for reading,
HL
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