2025 Winner

CASE SUMMARY

In Canada, a 13% federal tax called HST (Harmonized Sales Tax) is applied to every sales transaction. It’s a tax that’s been around since 1997, so it’s something no one thinks twice about. Until IKEA discovered that buying second-hand means paying tax twice. Even though these items lose their original look, packaging, price, and value, they never lose the tax.

Every new owner must pay the HST that was already paid the first time. This unfair double taxation on second-hand items generates a whopping $720 million for the federal government. Money that should rightfully be in Canadian’s pockets.

This was a moment for IKEA to double down on the brand’s commitment to affordability and circularity. Within their As-is marketplace, they re-sell everything from gently used products to furniture from the Sellback Program. So, as a leading retailer of second-hand items ourselves, they had just one thing to say: SHT.

According to IKEA’s Life at Home report, 45% of Canadians said their finances and disposable income were a top concern. Many turned to the second-hand economy to make the most of every dollar – with 31% having purchased second-hand items more than once a month. This shift in consumer mindset challenged us to rethink ways in which the brand could eliminate barriers to circular shopping.

That’s when the agency uncovered this significant, but little-known, issue of double taxation on second-hand items.

The approach to tackling it was to start within the brand’s organization and thereby, take a leadership position on acting the tax policy at a government level. Because tax laws vary by province, they chose Ontario, Canada’s largest province with the highest intensity index in participation in the second-hand economy (92 compared to the national average of 85) to start our stance against the unfair tax and ask Canadians to join us.

On April 2nd, the start of Earth Month, IKEA educated Canadians that
SHT was happening.

They put out an open letter in Canada’s biggest newspapers that revealed this unfair double tax, introduced their solution, and called on everyone join them in putting an end to it.

Then, SHT was everywhere. The agency promoted it across IKEA stores, letting customers know that they would refund SHT on all our 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 the petition on change.org. They 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.

The agency had the whole country talking SHT. IKEA was the 1st consumer brand in Canada to propose changes to tax laws. They ignited the biggest bipartisan tax law debate in recent years, making SHT the most covered campaign in IKEA Canada’s history, starting as a single-market effort and sparking national reform.

They gained 35,000 petition signatures. Purchase intent was 81% and IKEA sustainability perceptions increased by 11%. The campaign also led to significant business impact, with a 192% increase in IKEA As-is (second-hand) sales and a 16% increase in foot traffic.

Canada’s most important tax and retail organizations, representing 235,000 members and 142,000 stores respectively, shared their interest in working with IKEA almost immediately. Most importantly, as a result of the campaign, provincial and federal decisionmakers engaged with IKEA to discuss a change in policy that would end 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
Chief Executive Officer, Canada, Bianca Freedman
Associate Creative Director, Copy, Svetlana Popova
Associate Creative Director, Copy, Daniela Marino
Associate Creative Director, Art, Cassandra Shuber
Vice President, Brand, Genevieve Cote
Account Director, Nora Hickey
Vice President, Head of Production & Creative Operations, Canada Tamara Sulliman
Senior Account Manager, Shantelle Pereira
Senior Account Executive, Caelan Mcmichael
Senior Account Executive, Shania Simon
Senior Vice President EGA, Ashley Brambles
Senior Program Manager, Victoria Jordan
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
Senior Editorial Writer, Jonathan Dekel
Director, Public Affairs EGA, Clarissa Schurter
Grayson Matthews, Music House

Carat, Paid Media