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Why Equinox Leaned on AI Slop in Its New Year’s Ad Campaign; Hilton Lands in DHS Crosshairs; Victoria’s Secret Faces Valentine’s Day Test

By Nat Ives | WSJ Leadership Institute

 

Good morning. Today, an ad campaign plays both sides of the AI debate; a hotel franchisee lands Hilton Hotels in an uncomfortable position; and Victoria’s Secret pledges to get this Valentine’s Day right.

Side-by-side images of an absurdly muscular man on the beach (marked "Generated by AI") and a fit woman on the left

Equinox’s New Year’s ad campaign uses AI images. The left side of this ad is AI-generated, while the right is a real photo. Angry Gods

The latest New Year’s ad campaign for the high-end fitness club Equinox is leaning on AI weirdness from a pole-dancing Justin Trudeau to a steak made of cake, Megan Graham writes for The Wall Street Journal Leadership Institute.

The campaign juxtaposes such wild, clearly AI-created images with real photography of fit people under the theme “Question Everything But Yourself”—an effort to use the tech both for attention and as a foil.

While teaser videos got plenty of likes in social media, some commenters complained. “Chill on the AI it cheapens the brand,” one wrote.

That’s all according to plan, Equinox says.

“A lot of the commentary is that this doesn’t feel like Equinox,” said Bindu Shah, the chief marketing and digital officer. “So the good news is that it basically aligns with what we wanted to explore.”

One key nuance:  “I want to clarify that this campaign is not anti-AI,” Shah said, noting that Equinox uses AI “in so many ways to make the experience more relevant, to make it less friction-full.”

 

Quotable

“We’re pre–Sputnik launch phase.”

— Juan Pellerano-Rendón, CMO at e-commerce software startup Swap, on the race among retailers, startups and others to deploy AI shopping agents. “Everyone is building the spaceship, but no one has really launched it yet,” he told Modern Retail.
 
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Hilton on ICE

A hotel sign reads "Hampton Inn & Suites by Hilton"

Hampton Inn, whose Lakeville, Minn., location is accused of denying service to immigration agents, is part of hospitality conglomerate Hilton Hotels. Bridget Bennett/Bloomberg News

Hilton became the latest company in an unwanted spotlight after the Department of Homeland Security alleged a “coordinated campaign” to refuse ICE officers and other agents in Minneapolis.

DHS shared screenshots on X of what appeared to be correspondence with a Hampton Inn, part of Hilton’s brand portfolio, in Lakeville, Minn., Chip Cutter writes. “We are not allowing ICE or any immigration agents to stay at our property,” one email shared by DHS read.

Hilton said the location is independently owned and operated, adding that the actions at the property didn’t reflect its values. The hotel’s management company said it had moved quickly to address the matter.

“We are in touch with the impacted guests to ensure they are accommodated,” the company said. “We do not discriminate against any individuals or agencies and apologize to those impacted.”

But DHS aimed its criticism at the top of the corporate chain.

“Why is Hilton Hotels siding with murderers and rapists,” a DHS spokeswoman said, “to deliberately undermine and impede DHS law enforcement from their mission to enforce our nation’s immigration laws?”

 

The Magic Number

$897

Low end of the price range for the new bag from Janessa Leoné,
one of a raft of upstarts trying to capitalize on high bag prices
among top luxury brands

 

When Marketing Builds Momentum

Victoria's Secret models during the company's televised fashion show

Victoria’s Secret has ushered in a number of changes meant to refocus the brand and capture sales. Brendan Mcdermid/Reuters

Marketing and sales are forming a virtuous circle at a turnaround project:

A year after falling short on Valentine’s Day with muted marketing and not enough lingerie and sleepwear on hand, Victoria’s Secret is getting bolder for a crucial selling season, Jennifer Williams reports for The Wall Street Journal Leadership Institute.

“This was a learning from last year where we didn’t buy Valentine’s Day [inventory] as much as we could have, and sold out too soon,” said Chief Financial and Operating Officer Scott Sekella.

Recent sales momentum, helped in part by its relaunched and rebooted fashion show, has spurred the company’s new leadership to boost marketing and inventory, as well as scale back on promotional discounts.

Victoria’s Secret will also introduce its February collection this Wednesday, earlier than in previous years.

 

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Keep Reading

People outside a movie theater

Universal said it would gain global distribution rights for all future original soundtracks created for projects by the Indian studio Excel Entertainment. Francis Mascarenhas/Reuters

Universal Music Group said it will buy a minority stake in Indian movie and digital content studio Excel Entertainment, boosting its presence in a market with high growth potential for recorded music. [WSJ]

“Jimmy Kimmel Live!” will cut the number of musical performances each week, continuing a late-night trend that has eroded national promotional opportunities for bands. [Deadline] 

Five years after critics slammed Kia’s new logo, its U.S. sales have reached a new high. [Fast Company] 

Social-first bath and body care brand Tree Hut began its first traditional ad campaign in the run-up to a regional Super Bowl ad next month. [Ad Age]

Instacart will return to the Super Bowl ad roster next month after its debut in 2025. [Adweek]

Chick-fil-A will promote its 80th anniversary in a tough market with a major “newstalgia” themed campaign. [CNBC] 

Monster Energy says its new Strawberry Shot flavor is inspired by the dirty soda trend. [Beverage Industry]

“The Let Them Theory” author Mel Robbins introduced her first consumer product, a pocket-sized protein drink. [NY Post] 

 
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