2024 Winner

CASE SUMMARY

The challenge: Canada was hit with a nationwide affordability crisis in 2023. Housing affordability, specifically, reached its worst level in history. Many had turned to the second-hand economy to make the most of every dollar. The second-hand economy was the affordable choice, and it was also a sustainable one. Buying second-hand meant reducing waste and overconsumption through circularity.

As a brand that’s committed to environmental stewardship and affordability for the many people, IKEA has always offered products and services in the second-hand economy. For example, its As-is (second-hand) marketplace, re-sells everything from gently used products to furniture from its Sell-back Program.

Given Canadians’ increased need for affordable and sustainable options, the brand was tasked with increasing awareness and adoption of the As-is marketplace. That’s when they uncovered this significant, but little-known, issue of double taxation on second-hand items.

In Canada, a 13% HST (Harmonized Sales Tax) is applied to every sales transaction. Every time they buy a second-hand item, it gets taxed. Even though the tax was already paid the first time. Put simply, that’s paying tax on the same thing twice. This unfair double taxation on second-hand items generates a whopping $720 million for the federal government. Money that should rightfully be in Canadians’ pockets.

Every time a second-hand item is sold, it’s taxed one more time. Shockingly, the issue of double taxation on second-hand items wasn’t widely known, despite being more necessary and urgent than ever. Now was the time to educate Canadians and influence government action.

As a leader in environmental stewardship and affordability, IKEA decided to champion a more equitable approach to the unfair tax policy, on behalf of all Canadians.

Their breakthrough moment? Double HST is “SHT”.

“SHT” (Second-Hand Tax): A counter-tax that refunds HST on second-hand items.

On April 2nd, the start of Earth Month, IKEA educated Canadians that “SHT” was happening. The brand put out an open letter in Canada’s biggest newspapers that revealed this unfair double tax, introduced the brand’s solution, and called on everyone join us in putting an end to it.

Then, “SHT” was everywhere. The brand promoted it across IKEA stores, letting customers know that they would refund “SHT” on all their As-is (second-hand) items. They announced “SHT” on Instagram and TikTok.

The brand’s CEO was talking “SHT” on LinkedIn, while journalists were covering the initiative across digital, print, online and broadcast. Brand fans and influencers made “SHT” even bigger, without even being paid.

Canadians flocked to sign their petition on change.org. The brand conducted outreach to government and business stakeholders directly to get them on board. All of these efforts culminated in over 100 leaders from business, government and civil society convening to discuss legislative change.

They had the whole country talking “SHT”. This was the most covered campaign in IKEA Canada’s history that focused on a local, single-market effort and sparked national discussion. Consumer response exceeded
all benchmarks.

This was the first consumer brand to propose changes to tax law! They saw a 2,200% increase in mentions of Second-Hand Tax, garnered more than 50 million impressions, and gained +32,000 petition signatures, far surpassing the brand’s goal of 5,000.

The campaign received 100% positive/neutral sentiment and YOY visitation to IKEA stores increased 16% while their As-is Online saw an index of more than 192 in reservations and YOY As-is sales in-store
increased 16%.

Leaders from Canada’s biggest corporations and retailers praised the brand’s work.

Government agencies showed their support and interest in working with IKEA almost immediately. Most importantly, as a result of the campaign’s momentum, local, provincial and federal decisionmakers have engaged with IKEA to discuss a change in policy that would put an end to the double taxation on second-hand items Canada-wide.

Credits

Global Chief Creative Officer, Judy John
Chief Creative Officer, Canada: Anthony Chelvanathan
Chief Strategy Officer, Canada: Laura Kim
Associate Creative Director, Copy, Svetlana Popova
Associate Creative Director, Copy, Daniela Marino
Associate Creative Director, Art, Cassandra Shuber
Vice President, Production, Tamara Sulliman
Vice President Brand, Genevieve Cote
Account Director, Nora Hickey
Senior Account Manager, Shantelle Pereira
Senior Account Executive, Caelan Mcmichael
Senior Account Executive, Shania Simon
Chief Executive Officer, Bianca Freedman
Senior Vice President EGA, Ashley Brambles
Senior Program Manager, Victoria Jordan
Director, Public Affairs EGA, Clarissa Schurter
Vice President, DXI Human Intelligence, Nicholas Boles
Senior Manager, Market Research, DXI Human Intelligence, Darvin Bhagwat
Research Analyst, DXI Human Intelligence, Jason Routsis
Head of Influencer Marketing, Canada, Sara Rezaee
Vice President, Influencer Marketing, Jessica Lee
Editor, Richard Keating
Kelsey Rohwer, Senior Vice President, Global Brand Marketing
Melody Skipper, Brand Marketing

Grayson Matthews Music House
Agency Partner – Carat (media buy)