🎓 “Ivy League fast-pass” — Crimson’s venture-backed tutor. Louis Vuitton’s tariff pain. Butterfinger’s 101-year streak.
Oct 17, 2024
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A college tutor startup is causing a stir with its $500 million valuation, promising access to Ivy League schools for a hefty price. Meanwhile, Louis Vuitton feels the pinch of tariff disputes, impacting luxury sales. Butterfinger shakes things up with its first new flavor in over a century, a decision that sparks debate about brand loyalty. On a lighter note, Crocs launches clogs for dogs, showcasing our ever-increasing spending habits on pets. The podcast captures the quirky side of business trends and consumer behavior.
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Quick takeaways
Crimson Education, a college tutoring startup, has skyrocketed to a $500 million valuation by promising Ivy League admissions through targeted activities and leadership experiences.
LVMH's declining sales, particularly in Asia, illustrate the ripple effects of trade wars and tariffs impacting global luxury markets and consumer behavior.
Deep dives
Crimson Education's Ivy League Success
A college tutoring startup, Crimson Education, has gained a staggering $500 million valuation by promising to help students secure spots in Ivy League schools. Founded by Jamie Beaton, who himself gained admission to all 25 schools he applied to, this company employs former admissions officers from prestigious universities to guide its clients. To achieve success, Crimson emphasizes engaging in ten activities tied to two central themes, including social justice, and obtaining two distinct forms of leadership experience. The effectiveness of their strategies is evident, as Crimson students represent 2% of Ivy League freshman admissions, illustrating that demand for college consulting is driven by the increasing competition for limited spots.
LVMH's Luxury Sales Decline
LVMH, the parent company of Louis Vuitton, reported a 2% decline in its luxury fashion sales, marking the first drop since the pandemic began. This downturn is largely attributed to tariffs imposed during an escalating trade war between China and the European Union, which has adversely impacted LVMH's significant market in China. The tariffs aimed at European car manufacturers have resulted in retaliatory tariffs targeting French goods, including LVMH's offerings, causing a sharp 16% drop in sales in Asia last quarter. This situation highlights the interconnectivity of global trade dynamics, where tariffs can have widespread consequences across different industries.
Butterfinger's Bold Flavor Change
After 101 years without introducing a new flavor, Butterfinger has announced the launch of its first new variety: Caramel Butterfinger, intended to generate renewed interest in the brand. Historically, Butterfinger has maintained its iconic recipe while enjoying growth, emphasizing the strength of its unique position in the candy market. However, the decision to alter their time-tested formula raises concerns among fans who appreciate the original flavor's enduring legacy. This strategic shift may be a misstep, as the brand risks losing its competitive edge along with the timelessness that has set it apart for over a century.