ClickZ Retail Fashion Newsletter - 09.26.2024

PLUS: Join TikTok, Seraphine and Sweaty Betty for Fospha's BFCM live discussion on October 3rd

Author

Priscilla Soedarpo
September 26, 2024 • Estimated Reading Time: 6 minutes

Editor’s Pick 🌟

Peak season is the single best opportunity for D2C brands.

To help you capture it, Fospha has assembled a panel of industry experts. Join them for a live discussion featuring leaders at Sweaty Betty, Seraphine, and the Head of Measurement at TikTok.

📅 Date: Thursday, 3 October 2024

🕒 Time: 11 AM EST / 4 PM BST

P.S. You'll have the chance to ask the experts questions about peak season strategies in real-time!

Gain exclusive insight into:

  1. Proven tactics to maximize peak period opportunities, shared live by experts

  2. Strategies for capturing customers efficiently through a full-funnel approach

  3. Insights on growing your customer base profitably with effective measurement

  4. Methods for identifying and capitalizing on growth headroom for efficient scaling across channels

Specialty Bites 🍪

GU

GU, Uniqlo's cheeky sibling, has finally landed in the U.S., opening its first flagship store in New York's SoHo. This isn't just any store; it's a 10,225-square-foot fashion playground at 578 Broadway, offering everything from trendy women's and men's clothing to shoes, bags, and accessories. GU, which has been a hit in Asia since 2006, is now ready to charm the American audience with its trend-driven, affordable fashion. And guess what? They've also launched a U.S. e-commerce site and app, so you can shop their curated collection from the comfort of your couch.

Now, let's talk about the goods. GU's CEO, Osamu Yunoki, promises reliable quality at prices that won't make your wallet cry. Think $39.90 for their best-selling Barrel Leg Pants and $29.90 for ballet flats. They've even tweaked their footwear to suit American tastes after a less-than-stellar pop-up debut in 2022. Unlike other brands drowning you in options, GU keeps it simple with fewer products, focusing on what you actually want. This streamlined approach means better quality and lower prices, all while making your life easier.

To celebrate the grand opening on September 19, GU is throwing an interactive bash with special pricing, giveaways, and activities through September 22. The first 300 customers each day get a tote bag designed by Shantell Martin with a $100 purchase. So, mark your calendars and get ready to dive into the world of GU, where fashion meets fun without breaking the bank.

Inditex, owner of Zara, reported a 10% profit increase in the first half, driven by strong spring-summer sales despite poor weather. Sales rose 7.2%, with autumn-winter collections also performing well. CEO Óscar García Maceiras credits design, quality, and customer experience for the success, highlighting future growth opportunities.

Walmart and Old Navy leveraged New York Fashion Week to boost their fashion profiles. Walmart showcased new collections with designer Brandon Maxwell, while Old Navy celebrated its 30th anniversary with a 90s-themed collection. Both aim to attract budget-conscious consumers seeking trendy options, anticipating strong holiday ecommerce sales.

Retail media's growth is transforming the industry by leveraging customer data for personalized promotions and targeted advertising. This shift enhances loyalty programs and profitability, enabling retailers to compete with Amazon. Innovations like AI and shoppable ads are driving this change, benefiting both retailers and advertisers.

Next has raised its full-year profit forecast to $1.3m. First-half pre-tax profit rose 7.1% to $605m, with total group sales up 8% to $3.9bn. Overseas online sales surged 22.8%. Full-price sales exceeded expectations, increasing 6.9% in the second half.

Performance Platters 🍽️

Brands like Belgian Boys and Olipop are shifting their focus to reach U.S. shoppers in smaller cities. They are investing in retail media networks and hyper-localized marketing to connect with busy parents and larger households. Platforms like Hummingbirds help brands create targeted campaigns, driving sales in specific regions.

Perplexity, backed by Nvidia and Jeff Bezos, is in talks with brands like Nike and Marriott to revolutionize AI-powered search advertising. They aim to replace Google's auction-based system with sponsored questions featuring AI-generated answers. This shift promises unbiased answers while enhancing user experience and advertising effectiveness.

VTEX's survey reveals that 45% of U.S. consumers have engaged in live shopping, with men leading in participation. Social video commerce is also popular, especially among Gen Z and millennials. Brands should leverage these trends, focusing on consistent, engaging experiences to boost consumer engagement and sales.

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