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Coffee & Commerce #49: Longest Prime Day in History, Gen Z Googles Harder & France Says Non to Fast Fashion

Good afternoon,

Here’s the headlines for this week: 20 June 2025

ECOMMERCE

President Trump has announced a finalized trade agreement with China, reinstating tariffs to Liberation Day levels—55% on Chinese imports and 10% on U.S. exports.
The deal also includes eased restrictions on U.S. technology exports to China and adjustments to China's rare-earth export policy.
While Trump declared the deal complete, Chinese officials have framed it as only a framework agreement, and further negotiations may follow.

France's Senate has passed a bill aimed at regulating ultra-fast fashion, specifically targeting companies like Shein and Temu.
The bill proposes a ban on targeted advertising and influencer marketing, along with new rules to promote sustainability and price transparency.
Lawmakers argue the move is necessary to address the environmental and ethical concerns associated with high-speed, low-cost fashion.

Gen Z (ages 16‑24) are increasingly starting product searches on Google—recently 30%, up from 21% in late 2024—while Amazon’s share fell from 41% to 34% .
Google’s generative AI tools (Overviews, Lens) are credited with improving product discovery for younger shoppers.
This shift could threaten Amazon as Gen Z’s buying power grows and platform preferences evolve.

Google's AI Overviews and AI Mode now provide answers directly in search, reducing click-throughs to news sites substantially.
Publishers like The New York Times and Washington Post report referral traffic drops of 36–50%.
Media leaders warn this trend threatens digital journalism’s business models and sustainability.

Mark Zuckerberg is assembling a ~50‑member “superintelligence” team, personally recruiting top AI researchers to drive toward AGI.
Reportedly, Meta is investing over $10 billion in Scale AI and recruiting its co-founder Alexandr Wang, relocating offices for the new hires.
The move responds to lackluster performance from Llama 4 & Behemoth and intensifying competition with rivals like OpenAI and Google.

Mattel is partnering with OpenAI, deploying ChatGPT Enterprise internally and planning AI-enhanced toys and experiences later this year.
The objective is to save up to $200 million by 2026 through AI-driven product innovation and automation.
Mattel aims to blend interactivity, customization, and efficiency in beloved brands like Barbie and Hot Wheels using generative AI.

Prime Day 2025 will run July 8–11, making it the longest in Amazon's history.
The event includes “themed daily deal drops,” celebrity tie-ins, and early access, but average expected spend is down to $242.
Some shoppers report lukewarm interest, though analysts expect Amazon to leverage scale and curation to drive sales.

Facing looming tariffs, many sellers are limiting Prime Day participation and holding back inventory to preserve margins.
Deal offerings may be thinner this year as brands prioritize stock strategically.
Amazon’s leadership says it remains focused on maintaining value for shoppers during uncertain times.

Both retail giants are exploring launching their own USD-pegged cryptocurrencies for US checkouts, aiming to bypass traditional card networks.
Stablecoins could save billions in transaction fees—$172B was paid by US merchants in 2023 alone, up 50% since pre-pandemic levels.
Stocks of Visa, Mastercard, PayPal, and others dropped up to 6% amid fears of disruption; a US bill (GENIUS Act) may soon give firms the green light to issue private stablecoins.

Walmart will expand its Wing drone deliveries to 100 stores across Atlanta, Charlotte, Houston, Orlando, Tampa, plus Arkansas locations.
Since 2021, Walmart has completed over 150,000 drone deliveries with average flight times of ~4 minutes, 30-minute total missions.
The initiative reinforces Walmart’s push for tech-driven convenience and competitive advantage over rivals like Amazon.