Despite sluggish demand in the retail jewellery market, Beijing-based Laopu Gold has emerged as a standout success.
With revenue skyrocketing 148% year-on-year in the first half of 2024 and stock prices surging 437% since its June Hong Kong listing, the jeweller has become the best performer on the Hang Seng Composite Index this year.
Since its market debut, the 14-day relative strength index (RSI) of Laopu Gold’s stock has surpassed 80 on at least five occasions—a notable achievement often signalling a strong outperformer.
While an RSI above 70 typically suggests the stock may be overbought, analysts remain optimistic.
All 14 analysts covering the company have issued buy recommendations, according to Bloomberg data.
The Hermès of gold: what’s behind Laopu’s irresistible allure?
Laopu Gold has maintained an impressive gross margin above 40% over the past three years, far surpassing the industry average of 8% to 20%.
Founded 15 years ago, the jewellery maker distinguishes itself by focusing on heritage gold jewellery inspired by Buddhism, priced as high-end luxury items rather than by weight.
This strategy has elevated the brand, drawing comparisons to global icons like Cartier and Tiffany.
Offering fixed prices for its jewellery, it has distanced itself from fluctuations in gold prices that typically influence consumer behaviour in China.
The brand also distinguishes itself with unique practices: it avoids franchising, operates only directly managed stores, and exclusively uses “old craft” pure gold, with no low-carat options.
This approach has earned Laopu the moniker “Hermès of gold,” cementing its place as a luxury leader in China’s jewellery market.
Laopu’s “relatively small size” is also an advantage that allows it to focus on quality over quantity, said Mark Tanner, managing director of consultancy China Skinny in Shanghai, as reported by Bloomberg.
The brand “fills a space” in the untapped China-made luxury market, he said.
With just 33 stores, the brand’s exclusive presence enhances its appeal among China’s high-net-worth clientele.
A 7.2-gram Laopu necklace can retail for 11,230 yuan (US$1,540)—a premium far above its weight-based value—further solidifying its luxury standing.
For wealthy patrons seeking bespoke pieces that incorporate classic Chinese motifs, prices can reach hundreds of thousands of yuan.
Laopu Gold stock bucks broader market trends
While many Chinese retailers await government stimulus to boost consumption, Laopu Gold has already carved a thriving niche.
Its focus on wealthy repeat customers has paid dividends, with loyalty members making purchases five times or more doubling since 2021.
JPMorgan Chase analysts forecast Laopu’s revenue to grow by 55% annually between 2024 and 2026.
The company plans to expand its footprint with 10 new stores in mainland China and five across Hong Kong, Macau, Singapore, and other Asian cities within three years.
The jeweller also capitalizes on digital sales via Alibaba’s Tmall, JD.com, and WeChat, enhancing its reach beyond brick-and-mortar locations.
Despite its successes, Laopu Gold faces potential hurdles. Maintaining its aura of exclusivity while scaling operations will be critical, Tanner said.
Additionally, fluctuating gold prices and intensifying competition from established brands like Chow Tai Fook and Cartier may test its resilience.
The KOSPI index has remained on edge as concerns about the South Korean economy continued. This retreat also happened as the South Korean won remained in a strong downward trend, with the USD/KRW rising to 1,451, up by over 12% from its lowest point this year.
Why the KOSPI index has plunged
There are three main reasons why the KOSPI index has plunged. The most recent reason was the political crisis in the country after the president, Yoon Suk Yeol, announced a state of emergency, followed by an impeachment.
Analysts expect that the political issues will continue in the coming months, which could push foreign investors away from the market.
Further, the KOSPI index has also plunged after Donald Trump won the recent election in the US. He has pledged to reshape the American economy by imposing large tariffs on American allies and foes, especially those with a trade deficit.
Trump has not mentioned South Korea lately, but he will be concerned that the country has a large trade deficit. Data showed that the two countries had an annual trade of over $224 billion, with the US exporting goods worth over $94 billion and importing $130 billion.
Trump views a trade relationship in the form of deficits and surpluses. He believes that countries the US has a large deficit with steals from Americans. The reality, however, is that the US lags in the form of exports because of its high cost of doing business.
Third, the KOSPI index has crashed because of the woes surrounding Samsung, the backbone of the South Korean economy. Samsung has lagged behind its global peers, especially in the semiconductor industry, which has pushed its stock much lower.
There are concerns that Trump’s policies on China will have an impact on Samsung and other high-tech companies from South Korea. Trump has already appointed officials like Marco Rubio who are highly critical on China.
The KOSPI index also reacted to this week’s Federal Reserve interest rate decision. In its monetary policy decision, the bank decided to slash interest rates by 0.25% and then hinted that it would deliver two more cuts next year. That hawkish tone led to a crash in most stocks and a surge in US bond yields.
Top KOSPI index companies
Most companies in the KOSPI index have dropped this year. Hanon Systems shares have plunged by over 44% in 2024, while Lotte Energy Materials fell by 40.9%. KG Mobility stock tanked by 56%, as woes in the automobile industry continued.
The other top laggard in the KOSPI index was Lotte Fine Chemical whose stock retreated by 32%, and Hyundai Engineering and Construction whose stock fell by 27%. Lotte Chemical Group fell by 60%, while Hyundai Steel, Iiljin Display, Namyang Dairy, and Isu Chemical were some of the worst-performing companies in the index.
Capro, on the other hand, was one of the best-performing companies in the KOSP index, as it jumped by over 327% this year. Doosan stock is up by 167% this year, while Gaon Cable, SG Choongbang, and Orientbio have risen by over 100%.
The daily chart shows that the KOSPI index has been in a strong downtrend in the past few weeks. It has slumped from the year-to-date high of KRW 2,895 to a low of KRW 2,400 as the USD/KRW has surged.
The index formed a death cross pattern as the 200-day and 50-day moving averages crossed each other. This cross is one of the most bearish patterns in the market.
It has moved to the key support at KRW 2,390, where it has failed to move below in the past few months.
Therefore, the path of the least resistance for the index is downwards, with the next point to watch being at KRW 2,300.
Shares of Reliance-owned Just Dial have remained muted in the past six months.
Just Dial’s share price has moderated around 2% in the past six months.
Ventura Securities has initiated coverage on Justdial with a “buy” rating, assigning a target price of ₹2,920 (£27.28) for the stock over the next 24 months.
The target indicates an over 190% upside from the stock’s current market price of around ₹1,000.
The brokerage firm’s bull case target price for the stock is ₹3,378 and the bear case target price is ₹2,689.
Justdial’s secret sauce?
Justdial, one of India’s largest local search engines, is uniquely positioned in a competitive landscape that includes global platforms like Google and Bing, as well as local players such as The Urban Company and India Intermesh.
Despite the competition, Ventura notes that Justdial’s businesses—including JD Xperts (on-demand services), JD Mart (B2B platform), and its core listing services—are benefiting from strong tailwinds.
With low penetration and relatively low competitive intensity in these areas, Ventura expects the company to achieve double-digit growth over the medium term.
Justdial’s business model generates revenue from listing fees, subscription packages, JD Xperts, and JD Mart.
While the company’s core listing business remains dominant, contributing approximately 97% of total revenue in FY24, Justdial is gradually diversifying into other avenues, such as on-demand services, B2B marketplaces, and cloud-hosted business solutions.
The company’s market leadership in India’s local search engine industry gives it an edge in helping small and medium enterprises (SMEs) gain visibility and expand their digital presence across the country, the brokerage highlighted.
With a presence in over 11,000 pin codes and more than 250 cities, Justdial connects businesses nationwide, facilitating digital growth for traditional offline businesses.
Justdial’s strong operational metrics
Ventura highlights Justdial’s improving operational metrics as a key indicator of financial strength.
The company’s active listings have grown by 40% over the past three years, reaching approximately 4.4 crore in FY24.
Additionally, its average unique quarterly visitors have increased by 39%, from 12.3 crore in FY21 to 17 crore in FY24, reflecting the platform’s growing user engagement.
Furthermore, the company’s total ratings and reviews have risen by 25%, from 12 crore in FY21 to 15 crore in FY24.
Revenue and growth projections
Ventura projects Justdial’s revenues to grow at a compound annual growth rate (CAGR) of 16.2% to reach ₹1,635 crore by FY27. This growth will be driven by:
A 12.3% CAGR in the Listings vertical, contributing ₹1,459 crore.
A 44.9% CAGR in the Transactions vertical, contributing ₹176 crore.
Profitability and Margins
With increasing automation, Ventura expects Justdial to experience operating leverage, leading to significant growth in gross profits, EBITDA, and net earnings. The brokerage projects the following CAGRs:
Breaking up companies into smaller, independent entities is proving to be a winning formula for investors.
Spinoffs, often pursued to create shareholder value, have delivered extraordinary returns in 2024.
The Bloomberg Spinoff Index, which tracks companies separated from their parent firms over the past three years, has surged 63% this year—more than double the S&P 500’s 24% rise.
Several standout companies are leading the charge. Victoria’s Secret, spun off from Bath & Body Works, has gained 62% this year, while BellRing Brands, a former part of Post Holdings, has climbed 37%.
The crown jewel of spinoffs, however, is Constellation Energy, which was separated from Exelon in 2022 and has soared 95% in 2024 alone.
Not all spinoffs are created equal
While spinoffs have been largely successful, not every breakup yields stellar results.
In a Barron’s report, Trivariate Research’s Adam Parker points out that spinoffs involving companies in different industries than their parent firms tend to perform better, but high-quality companies should never do a spin.
“Something about breaking up a high-quality company creates dis-synergies,” he writes.
Recent examples highlight this divide. While GE Vernova, spun off from General Electric, has gained a staggering 154%, Kenvue, separated from Johnson & Johnson, has fallen more than 20% since its 2023 debut.
Similarly, Solventum spun off from 3M, has declined 17% this year, underscoring that spinoffs are not a guaranteed path to success.
GE Vernova: a spinoff success story
One of the most talked-about spinoffs of 2024 is GE Vernova, the renewable energy-focused unit of General Electric.
When Larry Culp took over GE in 2018, the company faced serious doubts about its future.
Culp’s strategy to split GE into three distinct businesses—GE Healthcare, GE Vernova, and GE Aerospace—has proven transformative.
GE Vernova, initially viewed as a “problem child,” has become a star performer, delivering a 154% return since its spin-off.
GE Aerospace has also shined, gaining 62% this year and 194% since GE Healthcare’s spin-off in early 2023.
These successes are setting a high bar for future spinoffs, making it easier for companies to pitch such moves to stakeholders.
Can Honeywell, and FedEx replicate GE’s success?
The success of spinoffs like GE Vernova has sparked a wave of new announcements from major corporations.
In the past month alone, companies like Honeywell, FedEx, and Comcast have announced plans to spin off divisions to unlock value and drive growth.
“We do believe there is upside simply on a sum of the parts basis…but more importantly, a simpler model should allow for better focus, prospective growth, and even higher valuation,” writes UBS analyst Amit Mehrotra, who has a Buy rating and a $298 price target on the stock, up 31% from Thursday’s close of $226.88.
FedEx has also announced plans to spin off its freight business, aiming to unlock the division’s value. The news drove the stock up over 10% in after-hours trading.
The optimism appears justified, as FedEx trades at 12.9 times its 12-month forward earnings, significantly lower than freight-focused companies like Old Dominion Freight Line and Saia, which command valuations exceeding 30 times earnings.
Ariel Rosa of Citigroup however has raised concerns about the plan.
In a note issued before the announcement, Rosa highlighted that FedEx’s freight business has lagged behind its peers in growth, potentially limiting its valuation.
Additionally, FedEx previously emphasised the synergy between its freight and express divisions, particularly in cross-selling services.
Splitting the two could pose challenges, making it difficult to achieve a clean separation and potentially driving customers to competitors.
Despite maintaining a “buy” rating on the stock due to its low valuation and other positive factors, Rosa expressed concerns about potential downside risks emerging in early 2025.
“While there is logic in spinning the business to unlock value, we see significant execution risk and remain unconvinced that a spin is in the best interest of long-term shareholders,” he wrote.
With the Trump administration promising another wave of tariffs on US imports, American toymakers are bracing for impact.
Companies like Atlanta-based Kids2 are revisiting product designs and supply chain strategies to minimize the cost burden of potential levies, Reuters reports.
Kids2, for instance, has a track record of innovation in navigating tariff challenges.
During the last trade war, the company redesigned an infant chair to convert into a rocker by adding a moving part, avoiding a 25% tariff that applied to children’s chairs but not rockers.
This kind of strategic thinking is once again taking center stage as the toy industry prepares for new trade policies.
Shift to alternative production hubs
Over the years, tensions between the US and China have prompted a significant reshaping of global supply chains.
Many companies, including major toymakers, have reduced their reliance on Chinese manufacturing by shifting production to countries like Vietnam and Mexico.
Mexico, in particular, has emerged as a major player, becoming the largest source of US imports in 2023.
This milestone marked the first time in two decades that China was displaced from the top spot.
Mattel, the maker of iconic toys like Barbie and Hot Wheels, illustrates this shift.
The California-based company is set to reduce its reliance on China to less than 40% of its production by next year, compared to the industry average of over 80%.
Anthony DiSilvestro, Mattel’s Chief Financial Officer, said:
We have teams of people engaged today in analyzing and planning for different tariff scenarios. And obviously, our actions will depend upon what actually happens, which seems to change from day to day and week to week.
However, supply chain diversification comes with its own challenges.
Jay Foreman, CEO of Basic Fun, the Boca Raton-based maker of Tonka trucks and K’nex building sets, cautioned that moving production out of China isn’t always straightforward.
“Nobody’s worried that your spatula or tennis racket or tennis shoe is going to hurt you,” he said.
But everyone worries that toys might hurt their child if they’re not made with good quality and tested properly.
He also noted that China has built up over decades a capability and track record in toys that others lack.
Innovations in cost-saving and automation
Kids2 is doubling down on efforts to make its production lines more efficient.
Despite producing 90% of its goods in China, the company has invested heavily in automating its Chinese factory and consolidating suppliers.
These moves help buffer the impact of future tariffs and minimize price increases for consumers.
In parallel, Kids2 has started shifting portions of its production to Vietnam and is exploring opportunities in India and other low-cost countries.
Currently, about 10% of its goods are made outside China, and the company is ready to expand that share if necessary.
Design innovation also remains a top priority.
Engineers, designers, and logistics teams at Kids2 are dedicating months to reimagining products in ways that could bypass tariffs.
Sikes said that this process, while effective for some items, is not a universal solution.
“There are some things –– like baby tubs and potties –– it is what it is,” says Sikes.
There’s no gray area, so there’s no design workaround for some products.
The case for sparing toys from tariffs
Toys were largely excluded from heavy tariffs during Trump’s first administration.
Political leaders were reluctant to impose levies on products associated with children, recognizing the potential backlash from parents.
This trend continued during the inflation surge between 2021 and 2023.
While prices for most consumer goods rose by over 20%, toy prices actually fell by 4.4% during the same period, according to Consumer Price Index data.
The toy industry is hoping for similar exemptions this time around.
Sikes emphasized that raising toy prices could exacerbate inflationary pressures on financially strained young parents and potentially deter family planning.
With declining birth rates already a growing concern globally, he argued that it’s crucial to avoid policies that further burden parents.
Oklo Inc (NYSE: OKLO) is pushing to the upside today after announcing a landmark power deal with Switch.
The agreement dubbed “one of the largest corporate clean power agreements ever signed” will see it deploy 12 gigawatts of nuclear power over the next two decades – and positions the advanced nuclear technology company to scale in response to growing demand.
Oklo stock is now up some 300% versus its year-to-date low in early September.
Such strategic partnerships highlight strong market demand for Oklo’s small nuclear reactors.
The added credibility may keep it an attractive investment and drive its price further up over the long term.
What Trump 2.0 may mean for Oklo
Oklo Inc expects its microreactors to cut both costs as well as timeline associated with setting up a new nuclear plant.
Additionally, the company sells power directly to customers under long-term Power Purchase Agreements (PPAs) that helps lower financial risk and upfront capital costs for customers.
More importantly, President-elect Donald Trump has picked Chris Wright – Oklo’s board member as the next energy secretary of the United States.
His appointment suggests the new government may offer at least some support to nuclear energy that could serve as a boon for Oklo Inc in the coming years.
Oklo stock debuted via a SPAC merger with AltC Acquisition Corp in May.
Oklo stock does come with risks
Oklo Inc is a Sam Altman backed nuclear power startup that counts billionaire Peter Thiel among early investors.
It offers unique means to play the expected rapid growth in artificial intelligence – a market that Statista forecasts will hit $1.0 trillion valuation over the next ten years.
Still, there are risks coupled with Oklo stock as well.
The California-based business is yet to deploy its reactor.
Its first plant is slated to go live in Idaho Falls in 2027.
Simply put, Oklo will likely be a pre-revenue company for another two to three years.
Therefore, the prospect of it diluting its shareholders to sustain operations remains very much on the table.
And the company doesn’t pay a dividend to make it easier for them to wait for it to start generating revenue either.
The Federal Reserve, in a widely anticipated move, lowered its key interest rate by a quarter percentage point on Wednesday, marking the third consecutive reduction.
However, this latest easing came with a cautionary undertone, hinting at a more measured approach to further rate cuts in the coming years.
This decision, while expected by markets, reflects a delicate balancing act by the Fed as it navigates persistent inflation and solid economic growth.
Navigating a complex economic landscape
The Federal Open Market Committee (FOMC) reduced the overnight borrowing rate to a target range of 4.25%-4.5%, a level last seen in December 2022 before rates began their upward trajectory.
While the decision to cut was largely priced in by the market, the primary focus was on the Fed’s forward guidance.
Typically, policy easing is not aligned with solid economic growth and inflation remaining above target.
However, the Fed’s nuanced approach suggests a recalibration of its strategy.
The closely watched “dot plot” matrix, which reflects individual members’ future rate expectations, indicates that the Fed is likely to lower rates just twice more in 2025.
This projection is a significant reduction from the committee’s September forecast, which had anticipated double the rate cuts for that period.
Beyond 2025, the Fed anticipates another two quarter-point cuts in 2026 and one more in 2027, before reaching a long-term “neutral” funds rate of 3%, a figure that has edged up from its September update due to the gradual drifting upwards this year.
Dissenting voices and market reactions
For the second consecutive meeting, there was some internal disagreement on the FOMC.
Cleveland Fed President Beth Hammack dissented, arguing for rates to remain unchanged.
This follows Governor Michelle Bowman’s vote against a rate decision in November, the first time a governor had dissented since 2005.
The Fed funds rate, which influences various consumer debt such as auto loans, credit cards, and mortgages, is a crucial instrument for monetary policy.
While the post-meeting statement contained only minor adjustments, the language around the “extent and timing” of future rate changes was slightly modified from the previous meeting in November.
Despite the rate cut, the committee also upgraded its projection for full-year gross domestic product growth to 2.5%, a half percentage point increase from September.
In the long term however, officials expect GDP to slow to its long-term projection of 1.8%.
Furthermore, the Summary of Economic Projections also reflected that the expected unemployment rate this year was lowered to 4.2% but the headline and core inflation rates according to the Fed’s preferred gauge were also revised upwards to respective estimates of 2.4% and 2.8%, figures that are slightly higher than the September estimates and above the Fed’s 2% goal.
Economic growth versus inflation
The Fed’s decision comes at a time when inflation remains above its target, and the economy is projected to grow at a 3.2% rate in the fourth quarter with the unemployment rate hovering around 4%, according to data by the Atlanta Fed.
Although these conditions are more consistent with maintaining or increasing rates, officials are hesitant to maintain rates at levels that may lead to an unnecessary economic slowdown.
A recent Fed report also suggested that economic growth had only risen “slightly” in recent weeks, with some signs of waning inflation and hiring slowdown.
As Fed Chair Jerome Powell has indicated, the rate cuts are part of the central bank’s efforts to recalibrate policy as it does not need to be as restrictive under the current conditions.
Market skepticism
With Wednesday’s move, the Fed will have lowered benchmark rates by a full percentage point since September.
In September, they also took the unusual step of cutting rates by a half point.
The Fed usually prefers to adjust rates in smaller quarter-point increments as they carefully assess the impact of these adjustments.
Despite these significant moves lower, the markets are showing signs of skepticism, with mortgage rates and Treasury yields both rising sharply during the same period, possibly signaling a lack of faith that the Fed will continue with many more rate cuts.
Most recently, the policy-sensitive 2-year Treasury yielded 4.215%, falling within the upper range of the Fed’s rate move on Wednesday.
The South Korean won plunged to its weakest level in 15 years on Thursday, reflecting heightened economic and political risks.
The currency was trading at 1,449.9 per dollar in early onshore trade, down 0.96% from the previous session.
This marks the lowest level for the won since March 2009.
The drop comes after the US Federal Reserve adopted a cautious approach to future interest rate cuts, coupled with domestic instability stemming from President Yoon Suk Yeol’s controversial martial law order earlier this month.
The won has now weakened 11% year-to-date, making it the worst-performing Asian currency of 2024.
US Fed’s hawkish stance adds pressure
On Wednesday, the US Federal Reserve cut interest rates as widely anticipated, but Chair Jerome Powell’s remarks signalled that further cuts would depend on sustained progress in controlling inflation.
This hawkish stance boosted the dollar, exacerbating the won’s decline.
The dollar index, which measures the US currency against six major currencies, climbed to a two-year high of 108.086, up 0.05%, reaching its highest level since November 2022.
The South Korean central bank has flagged significant downside risks to the country’s economic growth, compounding the pressure on its currency.
The Bank of Korea has cited the lingering economic effects of the Dec. 3 martial law order, warning that the nation’s growth forecasts for 2024 and 2025 could face substantial downward revisions.
The won’s decline extends its losses for a third consecutive month, dropping 3.9% against the dollar in December.
Political instability undermines investor confidence
South Korea’s political landscape has further dampened investor sentiment.
President Yoon’s brief imposition of martial law earlier this month has raised concerns over governance and stability.
This political uncertainty has contributed to a 2% drop in the benchmark KOSPI index, driven by foreign investors offloading South Korean equities.
In response to the market volatility, South Korea’s finance minister pledged swift and decisive interventions if fluctuations in financial markets were deemed excessive.
Measures under consideration include stabilisation policies aimed at containing foreign exchange volatility.
Despite assurances from policymakers, the won has remained under intense pressure.
Market participants suggest that authorities may be attempting to defend the 1,450 level, making it challenging for traders to bet against the currency.
South Korea’s financial regulator has instructed local banks to manage foreign exchange transactions and loans flexibly to mitigate market stress.
Year-to-date performance marks a dismal outlook for the won
The won’s performance in 2024 has been its worst since the global financial crisis of 2008.
Its year-to-date decline of 11% highlights the currency’s vulnerability to external shocks and domestic challenges.
Analysts predict that sustained pressure from a strong US dollar and political instability could further weigh on the currency in the coming months.
The downturn in the won has also reverberated through South Korea’s equity markets.
The KOSPI index fell 2% on Thursday, with foreign investors pulling out of local shares.
This marks a continuation of a bearish trend in South Korean stocks, driven by concerns over economic slowdown and governance issues.
An internal email sent by the HR manager of an Indian startup, YesMadam, surfaced on LinkedIn, sparking widespread outrage over its content, which suggested that employees experiencing workplace stress had been laid off.
The controversial email quickly propels the company—previously relatively unknown beyond metros—into the spotlight, albeit for all the wrong reasons.
The following day, the company issued a clarification, revealing that the email was part of a staged campaign designed to promote awareness about corporate wellness and employee well-being, as well as to introduce a program to help employees “de-stress”.
No employees were terminated, the company claimed.
If the projected act was not enough to cause infuriation, the truth did the trick.
YesMadam, a home salon services provider, found itself at the center of intense scrutiny for its questionable approach to highlighting workplace stress and mental health.
Though the uproar has since settled, it has reignited conversations about brand ethics, corporate wellness, and the fine line between awareness campaigns and insensitive marketing tactics.
What happened at YesMadam?
The controversy erupted when Anushka Dutta, a copywriter at YesMadam, shared a screenshot of an email purportedly sent by the company’s HR department.
The email claimed that following a workplace stress survey, over 100 employees who reported significant stress levels were terminated.
Dutta’s LinkedIn post, expressing disbelief at the decision, read:
What’s happening at YesMadam? First, you conduct a random survey and then fire us overnight because we’re feeling stressed? And not just me—100 other people have been fired too!
Her post gained instant traction, with netizens and industry professionals condemning the startup for its insensitivity.
Shitiz Dogra, Associate Director of Digital Marketing at IndiGo, captured the general sentiment:
Can an organization fire you for being stressed? Looks like it just happened at a startup—YesMadam…terribly stressful and disturbing news
(How YesMadam has trended on Google searches in the last 30 days)
The truth behind the layoffs
Amid mounting backlash, YesMadam issued a statement the following day, clarifying that the email was part of a staged campaign to promote a corporate wellness initiative called Happy 2 Heal.
The company explained that no employees were fired and that the screenshot was fabricated to draw attention to workplace stress and the importance of employee mental health.
YesMadam announced several wellness measures, including a new de-stress leave policy offering six additional paid leaves annually for mental health and on-site spa sessions to help employees unwind.
Dutta also updated her LinkedIn post, revealing that she was part of the campaign’s planning team:
“Yes, the survey did happen, in fact, I volunteered in the survey and was part of the core team which gave birth to the idea of De-Stress Leaves. Moreover, the employees were taken into confidence, and we didn’t send any emails, the screenshot which went viral was a planned move,” she said.
However, the revelation that the campaign was staged only deepened public outrage.
Critics slammed the company for trivializing layoffs—a harsh reality for millions of employees globally—just to promote a wellness initiative.
“It’s astonishingly ironic that a campaign claiming to address workplace stress chose mass layoffs—the most stressful and traumatic experience for any professional—as a shock tactic,” Aparna Mukherjee, head of communication branding and strategic content at Moe’s Art, a Mumbai-based communications agency, told Invezz.
“Layoffs are not just a word or an event; they represent financial uncertainty, emotional distress, and a loss of identity for many,” she said, adding,
By fabricating such a scenario, the campaign trivializes the very real struggles of those who’ve been affected, making their pain feel like a punchline. This isn’t awareness; it’s emotional exploitation, dangerously close to false advertising.
A couple of days later, Mayank Arya, co-founder and CEO of the company issued an impassioned video statement over the episode.
He apologized for the “miscommunication”. However, he stated that through this miscommunicated campaign a “start has been made” around the promotion of mental wellness at work.
“Go ahead…slap us if you want,” he said. “This communication went wrong… but my intentions were right.”
A pattern of shock advertising
The YesMadam episode drew comparisons to other controversial marketing campaigns.
Earlier this year, Indian actress Poonam Pandey staged her death in a campaign to raise awareness about cervical cancer.
The stunt, orchestrated by the digital agency Schbang, faced backlash for being overly dramatic and insensitive, forcing the agency to apologize.
Similarly, YesMadam’s campaign has been accused of exploiting a grave issue—mass layoffs—to generate publicity.
The ethical dilemma: where does one draw the line?
While YesMadam claimed it intended to promote employee wellness, experts argue the method was deeply flawed.
“No sane, decent, conscientious person would indulge in this blatant attempt at lying for the sake of generating shock value. Just like no sane, decent, conscientious person would run naked on the street just for shock value. The only reason why they may still indulge is if they mistakenly thought the ends justified the (any) means,” Karthik Srinivasan, Indian communications strategy consultant and music critic wrote in a blog post.
“What stops anyone from NOT indulging in such blatantly false shock-value tactics in the name of marketing? The reason is rather simple – that it is wrong to mislead people with something false, no matter what the justification,” he added.
Srinivasan also pointed out how the stunt risks the brand’s credibility:
“Sure, a lot more people would be aware of YesMadam’s existence, but why presume that all those who know of YesMadam today would also trust the brand to deliver their services adequately or appropriately?” He added,
Visibility is not equal to consideration. Also, more importantly, consider the route in which all those people are now aware of the brand’s existence: that brand that lied that it fired over 100 people as part of a fake marketing stunt. Not a good introduction, eh?
Founded in 2016 by brothers Aditya and Mayank Arya, YesMadam currently operates in over 55 Indian cities. The company reported a revenue of ₹45 crore in FY24 and aims to hit ₹100 crore this year.
Marketing strategies built around creating shock value, commonly referred to as “shockvertising,” have been a staple of advertising for decades.
This method, known for its audacious and boundary-pushing nature, is frequently used by brands to craft campaigns that grab attention and spark conversation.
Shock marketing isn’t solely about courting controversy; it often taps into deeper societal and cultural issues, positioning brands as relevant and prominent voices in public discourse.
What, then, sets apart a “good” shock campaign from an inappropriate one? More importantly, where does one draw the line?
“The line on using marketing gimmicks just can’t be drawn. Do understand that marketing itself is a gimmick, and to that extent, there are people who push the envelope a bit too far to be in the limelight,” Harish Bijoor, brand expert, and founder, Harish Bijoor Consults, told Invezz.
“The key idea seems to be that all publicity is good. Good publicity is not necessarily the only publicity to get, bad publicity is equally good. Who would have otherwise heard of little-known names that have used crazy ways of reaching a consumer’s mind, mood, sentiment, all together?” Bijoor said.
However, Bijoor acknowledged that the YesMadam example is a double-edged sword.
I believe that it cuts into the brand ethos of the entity responsible for this more than any publicity the company might have gained.
Meanwhile, Mukherjee added:
Layoffs aren’t a marketing gimmick; they’re a life-altering reality. Campaigns like this don’t raise awareness; they erode trust, trivialize genuine issues, and make a mockery of the very people they claim to support.
Workplace stress and mental health in India
The controversy also shed light on India’s corporate wellness landscape.
While conversations around workplace mental health have gained momentum, significant gaps remain in addressing the issue.
A tragic incident in July underscored this reality. A 26-year-old Ernst & Young employee in India reportedly succumbed to overwhelming work pressure, sparking widespread concern.
EY refuted the claims, but the incident highlighted the growing toll of workplace stress.
According to ICICI Lombard’s India Wellness Index 2024, there has been an 11% decline in access to mental health support services for corporate employees and an 8% decline in awareness of effective coping mechanisms.
Esha Pahuja Verma, a senior psychologist at Trijog- a Mumbai-based organization providing adult counseling, child counseling, and corporate well-being solutions, said that while YesMadam’s intent to spread awareness about corporate wellness may have stemmed from a positive place, the drastic approach can increase stress levels and anxiety, particularly in workplaces with high-pressure environments where employees are already unable to manage their emotional well being.
Pahuja told Invezz:
Additionally, these methods can create an environment of mistrust and insecurity within the organization. Trust is a critical component of workplace wellness, and such actions risk creating a counterproductive atmosphere of fear and skepticism.
Pahuja said that presently, the corporate wellness setup is on a positive incline wherein many companies and leaders are adopting measures to destigmatize mental health concerns and also providing progressive means like EAP platforms.
These platforms incorporate different aspects of wellness like counseling support, physical health, legal and financial aid, learning and development, etc.
However, significant gaps remain due to stigma, lack of awareness, and insufficient resources, often leading to severe consequences like anxiety, depression, strained relationships, and, in extreme cases, self-harm or substance abuse, she said.
Building a culture of wellness
Experts agree that fostering a healthy workplace culture requires more than attention-grabbing campaigns.
Pahuja Verma emphasized the importance of transparent and empathetic communication to foster psychological safety, enabling employees to voice concerns and trust leadership for support.
She highlighted the need for leaders trained in empathetic communication and emotional first aid.
Flexible work policies, a performance-based approach, constructive feedback, and learning opportunities can help employees recharge and manage work more effectively.
Sensitivity and compassion in addressing mental health are essential, she concluded.
On Thursday, the Bank of Japan (BOJ) maintained its benchmark interest rate at 0.25%, citing uncertainties in Japan’s economic activity and pricing dynamics.
The move comes as the yen weakened 0.3% against the dollar, falling to a one-month low of 155.42, while the Nikkei 225 index slipped 0.85%.
The BOJ’s cautious stance highlights the delicate balance it faces amid inflation pressures and wavering economic resilience.
BOJ surprises markets by holding rates
Economists polled by Reuters had largely anticipated a 25-basis-point rate hike, but the central bank opted for stability, signaling ongoing concerns over the broader economic landscape.
The BOJ board’s decision was not unanimous, with an 8-1 vote where board member Naoki Tamura pushed for a rate increase.
In its statement, the BOJ emphasized that “high uncertainties surrounding Japan’s economic activity and prices” persist.
It also highlighted the growing influence of exchange rate fluctuations on pricing, particularly as firms increasingly raise wages and prices.
The decision contrasts sharply with the US Federal Reserve, which recently cut rates by 25 basis points to a range of 4.25%-4.5%.
Analysts believe the BOJ’s cautious approach reflects its struggle to align monetary policy with government concerns over Japan’s fragile GDP growth, which is projected to turn negative in 2024.
Economic data suggests resilience
Despite the BOJ’s conservative stance, recent data paints a more optimistic picture of Japan’s economic resilience.
Headline inflation stood at 2.3% in October, marking the 30th consecutive month above the central bank’s 2% target.
November’s inflation data, due Friday, will provide further insight into the country’s inflationary trends.
Business sentiment has also shown signs of improvement.
The latest BOJ Tankan survey revealed that the index for large manufacturing firms rose to 14 in the December quarter, surpassing expectations of 12 and improving from 13 in the previous quarter.
This metric, which gauges business sentiment, underscores that optimism currently outweighs pessimism among Japan’s large corporations.
According to a Dec. 13 note by analysts at Bank of America, the Tankan survey suggests that Japan’s economy remains on a stable footing.
They noted that inflation and economic activity are trending in line with the BOJ’s baseline scenario, which could pave the way for future rate adjustments.
However, analysts caution that the urgency for a rate hike is limited.
Imported inflationary pressures have been easing, and companies’ medium-term inflation expectations appear stable.
Japan’s GDP has contracted year-on-year in the first two quarters of 2024, with only a modest 0.5% growth in the third quarter.
With real GDP growth projected to dip into negative territory next year, the BOJ is treading carefully to avoid further economic disruption.
Market watchers will now turn their attention to inflation data and upcoming policy meetings to assess how Japan navigates its economic challenges amid global monetary tightening trends.
The BOJ’s next steps will likely hinge on incoming economic data and global market developments, particularly as exchange rate volatility continues to influence Japan’s inflation trajectory. For now, the central bank appears committed to a cautious, data-driven approach.
