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What does it really cost to manufacturer products in America? And will high tariffs on Chinese goods bring those jobs back to the U.S.? These are questions that have been swirling since Trump announced a 145% tariff on Chinese products last month, since reduced to 30%. But rather than debate or speculate, the pleasure jewelry company Crave has decided to do something else: Its opening its books, sharing the full figures, and letting consumers choose what version theyd like to buy while exploring the global impact. In a Kickstarter campaign for their new Tease Necklacea vibrator worn around the neck as an accessoryCrave will offer three ways to buy it at three different prices. The first Tease will be made in San Francisco, with (most) of its parts sourced domestically. The second Tease will be assembled in the U.S., with parts acquired from China. And the third Tease will be completely sourced from China. In a quest for full transparency, Crave shared a spreadsheet accounting their costs to produce each model. The takeaways are fascinating. The total build cost is $80.31 sourced in the US, $47.83 assembled in the U.S., and $25.74 made in China. They will retail for $195, $149, and $98 for this Kickstarter promotion on which Crave says it’s not cutting a profit. Even with tariffs currently sitting at ~30% on Chinese components and goods, the difference in the cost of tariff fees for each necklace negligible ($4.16, $5.34, and $5.87 respectively). But the Tease is sill less than the cost to create in China than it is in the U.S. Take China off the map as a global supply chain or factory? That’s not what’s going to happen, says Crave CEO Michael Topolovac. If tariffs hold this rate, China will be as strong as ever. Unpacking transparent pricing Last month, a report from Punchbowl News claimed that Amazon was considering including the tariff costs on product listings. When the White House heard, they called the move hostile. Who knows if Amazon was ever actually going to take such a step, but the story struck a nerve with the public because tariffs are an invisible tax that’s typically built directly into a product’s pricing. Nearly every product we buy today has a global footprint, and in an era where weve just faced considerable inflation, thats a scary premise. While digging through Craves spreadsheet with Topolovac and co-founder Ti Chang, I began to understand why they believe high tariffs will be devastating to small businessesand ultimately futile as a strategy to get more goods built in the U.S. For instance, the San Francisco model can have its steel sourced in America for $25. That same metal costs $3.50 if you import it from China (and even after a 30% tariff, its only $4.55). That tariff will make the product cost more, but still a whole lot less than if Crave went with American suppliers. When you add labor, the price difference only grows. The core metal cylinder costs $20 in labor to machine it in the U.S., meaning it costs $45 between material and labor in all. Thats $20 more than buying the entire product sourced and assembled from China. Tracing components you simply cant make in the U.S. But truth be told, a piece of machined metal is a simple case. Lets consider the electronic components of the system. Batteries and motors cant be sourced in America, Crave explains, since the factories to make them don’t exist. So even their full U.S.-made Tease has these pieces purchased overseas. Crave can source its microprocessor from the U.S., but the circuit boards are made in China. And the microprocessor needs to be affixed to the board there. So Crave buys a microprocessor, pays a 30% tariff to ship it to China. Then China plants it onto a board, and ships it back, adding another 30% tariff. Theoretically, you can have discussions with the government to have tariffs waved in some of these more complex cases. If you’re Apple, youve probably got a whole division in China that’s managing that, says Topolovac. But theres no way that our factories can deal with the overhead of the Chinese government. The spreadsheet also reveals the futility of sourcing goods in China and then assembling them in the U.S. You end up paying a tariff cost and a higher labor cost. Its the worst of both worlds that way, says Topolovac, who notes that theres just nothing to encourage this practice at the scale and cost structure of their product. For most small businessesand even many largethe math simply doesn’t work out to bring manufacturing back to the U.S. (These issues affect mega corporations too. Logistics are why major performance apparel companies, like Nike, have grown so reliant on Vietnam.) In theory, tariffs could encourage more factories established in the U.S. But new infrastructure of this scale is completely outside the reach of Crave or its peers. Theyd need to raise hundreds of millions of dollars and spend years spinning up supportive factories, and even still, theyd need to source rare earth minerals globally. If your plan was to take out two to three million US manufacturers or brands like us, this is how you would do it, and [a 145% tariff] is how you would kill them, says Topolovac. Modern small business rely upon mega infrastructures Chang remembers building Incognito, her company before Crave, and relying on the technological cushion of China to do so. I was able to get that business going because we have free trade. I could go over to China, have an idea, have things made, and bring that inventory into the U.S. And that enabled ideas and innovation to happen, she says, noting that efficient manufacturing abroad lowers risk. As an entrepreneur, you can experiment and you can testnow, if you’re a new entrepreneur making products, you have no stability. And that lack of stability is ultimately the most frustrating point to Crave. They are constructing new products for the market as they follow the news cycle and project their ever-shifting costs. If they hadnt planned ahead, stocking up on inventory in anticipation of the 145% tariff spike, they would have been sunk. Overall, even when the business works out, the mental overhead and additional planning its required has become a distraction for Crave on top of the day-to-day challenges of running any product business. The world sets up the rules and supply chains, and you play by those rules, says Topolovac. But if the rules change every week, or whatever, it’s brutal.
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E-Commerce
For decades, corporate leadership has been dominated by analytical prowess. Ascending the corporate ladder often meant demonstrating value through meticulous spreadsheets, precise forecasts, and detailed execution plans. Vision was acknowledged, but only when accompanied by a comprehensive road map. This paradigm, however, is shifting. In today’s era of rapid change, emotional complexity, and cultural fragmentation, linear strategies are insufficient. The most impactful leaders can envision new futures, cultivate emotional connections, and distill complexity into relatable narratives. The next generation of C-suite executives won’t just be adept operators; they will be architects of meaning. In short: They wont just be strategists, but creatives. Rethinking Leadership: From Logic to Imagination Historically, businesses have prioritized logic over creativity, resulting in leadership cultures rich in data but deficient in imagination. But creativity is now paramount. A recent Gallup study revealed that only 30% of employees feel connected to their company’s mission or purpose, marking a record low in 2024. Notably, fully remote workers struggle even more with this connection, as physical distance often translates to a mental disconnect from their employer. Moreover, a Deloitte report found that only 26% of workers strongly agree that their employer treats them as whole individuals, recognizing their unique contributions and skills. These findings underscore a critical issue: The emotional infrastructure of leadership is faltering. Efficiency alone is no longer the answer; resonance is essential. This is where creatives come into play, not as peripheral marketers or consultants, but as integral members of executive leadership. Imagine a CEO who leads with storytelling, not just statements; a chief human resources officer (CHRO) who designs employee experiences with the finesse of an artist; a boardroom that embraces visuals, metaphors, and even moments of silent contemplation to navigate complexity. What Creative Leaders Do Differently Creative leaders transcend problem-solving; they reframe challenges, anticipate tensions, and design interactions with intentionality. They consider the emotional ripple effects of decisions and understand that before individuals commit to a plan, they must resonate with its underlying story. They recognize that logic informs, but emotion compels. In uncertain times, strategy provides direction, but storytelling fosters alignment. Data offers explanations, but design inspires action. These leaders treat organizational culture as a canvas, viewing each initiative as an opportunity for meaning-making. They might commence a product launch with a narrative circle instead of a sales chart, or conclude a quarterly review with a thought-provoking question rather than a performance dashboard. These practices aren’t gimmicksthey’re essential tools for leadership in an age where facts alone are insufficient. If Creatives Led the Boardroom Envision a leadership meeting that begins not with status updates but with the question: What story are we living right nowand is it the one we want to be telling? Instead of diving into objectives and key results (OKRs), the team members reflect on the narrative shaping their organization and assesses its alignment with their goals. Imagine strategy sessions resembling creative studios more than command centers. Whiteboards adorned with sketches, not just key performance indicators (KPIs); ambient music setting the tone; and silence embraced as a space for contemplation. In times of crisis, the initial inquiry isn’t How do we manage this? but What does this moment ask of us as humans? If this approach seems radical, it’s only because we’ve long separated creativity from leadershipa separation that’s contributed to misaligned teams, ineffective strategies, and stagnant organizations. A Real-World Example: Airbnb’s Creative Leadership Airbnb’s response to the COVID-19 pandemic is a tangible example of creative leadership. Facing unprecedented challenges, CEO Brian Chesky didn’t rely solely on traditional strategies. Instead, he embraced storytelling and design thinking to navigate the crisis. Chesky penned heartfelt letters to employees and hosts, transparently communicating the company’s challenges and decisions as the travel industry cratered. He prioritized the community’s well-being, supporting hosts, and implementing flexible guest policies. This empathetic approach reinforced Airbnb’s brand values and maintained trust during turbulent times. On top of that, Airbnb reimagined its platform, introducing online experiences to adapt to the new normal. This innovative pivot showcased the company’s ability to blend creativity with strategic foresight, ensuring resilience and continued engagement with its user base. A Framework for Expanding Creative Leadership in the C-Suite Integrating creative intelligence into the C-suite doesn’t require a complete organizational overhaul. It starts with a mindset shiftan openness to design as a way of leading, not just a way of presenting. These practices are not soft skills; theyre strategic competencies that help leaders unlock deeper engagement, innovation, and trust. Here are four ways to begin. 1. Sense before you solve. Initiate major discussions by exploring the emotional landscape. Ask What are we feeling? to surface insights beyond data. This practice creates space for intuition, unspoken dynamics, and early signals that often get overlooked in performance reviews or planning decks. When leaders learn to read the room, not just the metrics, they make decisions that resonate more deeply and stick longer. 2. Design the experience, not just the strategy. Recognize that every policy, product, and meeting shapes the employee experience. Deliberately craft these moments to align with the emotions and values you want people to carry forward. Whether its a town hall, onboarding journey, or performance conversation, the how matters as much as the what. Design-thinking principlesempathy, prototyping, and iterationarent just for products; they belong in leadership, too. 3. Use storytelling as a strategic tool. Move beyond declarations. Weave in narratives that encapsulate vision, challenges, and aspirations, fostering deeper connection and shared identity. A well-told story doesnt just informit invites participation. It helps teams locate themselves inside a larger arc of meaning and progress. Leaders who communicate in narrative terms create alignment not just through direction, but through emotional coherence. 4. Invite diverse perspectives. Incorporate voices from artists, designers,facilitators, and other creative thinkers to challenge assumptions and expand the lens. These perspectives introduce new metaphors, fresh language, and alternative ways of making sense of complexity. When we bring in people who see the world differently, we dont dilute business thinkingwe deepen it. Innovation thrives at the intersection of difference. The Future of Leadership: A Studio, Not Just a War Room We’ve reached the limits of what linear thinking can achieve. Addressing challenges like cultural fragmentation, technological disruption, and global crises requires not just intellect but imagination. Future leaders won’t merely ask How do we grow? but What are we growing toward, and who do we aspire to become? They will: Design rather than direct. Curate experiences instead of solely managing outcomes. Imagine possibilities beyond analyzing current realities. Because the future of business isn’t something to be managed into existenceit needs to be imagined, crafted, and brought to life through creative leadership. This isnt about replacing strategy with art. Its about integrating the two so that organizations can lead not only with precision, but with vision. The companies that thrive in the coming years will be the ones bold enough to create what doesnt yet exist, and human enough to make it matter.
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E-Commerce
Within their first moments of stepping inside Universal’s newly opened Epic Universe theme park in Orlando, Florida, visitors will realize there is something different about the space. Rather than the typical onslaught of gift shops and pavement that can usually be found right inside the gates of most theme parks around the world, Epic Universe’s grounds are unusually bucolic, with a dense canopy of trees, winding pathways, and lush landscaping. This meandering entrance space is named Celestial Park, and it’s a notable counterpoint to the theme park standard of densely packed commercialism. “[It’s] where we’ve put the ‘park’ back in theme park,” says Steve Tatham, Epic Universe’s executive creative director and lead designer. As Universal’s first major theme park in more than 20 years, it’s an attempt to reset expectations of the brandand of the amusement park experience. [Photo: Universal Studios] Epic Universe’s design ditches at least some of the conventional theme park model. “We focus on our guests and their experience, and we didn’t want it to have as much hardscape as some other parks. We wanted to have a lot more greenery,” Tatham says. There are 400,000 plants in Celestial Park, which serves as the connecting central space between four “worlds” of attractions in the theme park, including Super Nintendo World and The Wizarding World of Harry PotterMinistry of Magic. Rather than a space people simply pass through on their way to a ride, Tatham sees Celestial Park as an attraction in and of itself. “Some people want to come and just absorb the environment, so we wanted to create something for everybody,” he says. [Photo: Universal Studios] Celestial Park was envisioned as both a connective spine and a calmer respite from the rides and experiences in the rest of the theme park. The design of that space, and the design of Epic Universe as a whole, was inspired by the world’s fairs and world expos of the past, Tatham says. Citing examples like the architectural cornucopia of the 1893 World’s Columbian Exhibition in Chicago and the futurism-heavy 1939 New York World’s Fair, Tatham says Epic Universe’s design aspired to a grandness not often seen in typical theme parks. World’s fairs, he says, “had this really optimistic tone, a lot of Art Nouveau and Art Deco architecturewhich to me represents the optimism and the coming together of a community. We really wanted to capture that essence.” [Photo: Universal Studios] Of course, this is still a theme park, and part of an increasingly massive complex of Universal-owned attractions and accommodations in Orlando. Universal, which is owned by Comcast, is betting heavily on the future of theme parks by spending an estimated $7 billion on Epic Universe. It could feed into ongoing momentum; on a recent earnings call, Comcast president Mike Cavanagh noted that revenue from theme parks has tripled in the past decade, to roughly $3 billion in 2024. [Photo: Universal Studios] Celestial Park has many of the hallmarks of the theme park genre, including a roller coaster, a carousel, an interactive water feature, 11 dining options, and six retail outlets. But they’re more artfully integrated into the space than most of Epic Universe’s competitors, building on the theme park’s backstory of visitors transporting to new worlds through entrance “portals,” each of which is accessed by exploring through Celestial Park. “My focus always is on the story,” Tatham says. “That’s the foundation of any kind of design that we will do here, whether it’s architecture or rides or any of the elements that are in the park.” [Photo: Universal Studios] Offering some open-ended elements in Celestial Park builds on what customers have called for in new theme parks, according to Tatham. Universal’s guest research shows that while people like the increasingly tech-influenced ride-and-experience design happening in new attractions, they’re also clamoring for more parts of parks that they can actively engage with, not just passively ride or watch. “They really wanted us to be even more immersive and do things with physical sets and animated figures, and we’ve really responded to that in force,” he says. “When the guests come here, they’re going to see the kind of experiences they’ve been really itching to see.”
Category:
E-Commerce
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