ClickZ Retail Fashion Newsletter - 10.10.2024

PLUS: Saks Fifth Avenue enters fine art – blending fashion and culture

Author

Priscilla Soedarpo
October 10, 2024 • Estimated Reading Time: 8 minutes

Live From Ad Week New York 🎤

ADVERTISING INSIGHTS
✨ Fresh Insights from AdWeek 2024

Missed AdWeek 2024 in New York? No worries! Chair of Contentive Lee Arthur attended, capturing fresh insights. Here's a snapshot of what you need to know:

  1. Transition to Profit-Focused Metrics: The shift from traditional ROAS to profit-driven metrics emphasizes the need for DTC marketers to evaluate the true impact of each channel. This aligns with findings from Fospha's latest report, highlighting the importance of optimizing customer acquisition across platforms like Meta, TikTok, and Snapchat.

  2. First-Party Data Utilization: Emphasizing first-party data is crucial for creating personalized advertising experiences. As brands enhance their omnichannel strategies, leveraging this data will be key to delivering consistent messaging across all touchpoints.

  3. Full Funnel Measurement Challenges: Understanding how different channels contribute to conversions is increasingly complex. The insights shared at Adweek emphasize the necessity for sophisticated full funnel measurement tools and strategies.

  4. Platform-Specific Strategies: With unique strengths across platforms, DTC marketers must adapt their approaches accordingly.

Specialty Bites 🍪

Levi Strauss & Co.

Levi Strauss & Co. is making bold moves to revitalize its brand, partnering with Beyoncé to modernize its image and boost its women's business. This exciting collaboration aims to place Levi's at the heart of cultural relevance, leveraging Beyoncé's status as a fashion icon. The company is optimistic about doubling its women's business, which grew by 11% last quarter, and anticipates a $2 billion women's segment by year-end.

However, Levi's is also streamlining its focus by considering the sale of its Dockers brand, which has struggled to maintain its market position. Despite Dockers' 15% sales decline, Levi's overall strategy is showing promise, with a 116% increase in net income and a 5% rise in global sales for the Levi's brand. The direct-to-consumer segment, including e-commerce, saw a 10% revenue boost, underscoring the company's strategic shift.

Levi's CEO, Michelle Gass, emphasizes the importance of cultural relevance and innovation, particularly in the women's category. The partnership with Beyoncé is a key part of this strategy, aiming to accelerate growth and solidify Levi's position in the market. As the company navigates these changes, it remains focused on enhancing profitability and expanding its core offerings.

Vogue Business hosted a dynamic Digital Excellence Summit in Milan, featuring Off-White, Sergio Rossi, and Veja. The event explored luxury lifestyle innovations, emphasizing digital's role in brand strategies. Key discussions included influencer marketing, sustainability, and digital tools enhancing customer experiences, showcasing the industry's forward-thinking momentum.

Webinar Wrap 🎧

This week, we attended Fospha's pre-peak webinar on Acquiring Customers Profitably During Peak Period. Here's what we learned:

  1. Competition is hot – so be prepared

With the ad economy rebounding and cross-channel CPA up 13% YoY, brands need to step up. Dan Sava compared Peak Period to the Olympics—each year, competition gets tougher, and brands need to start preparing early to stay competitive.

  1. Go full-funnel to unlock scaling potential in Paid Social

There is still huge headroom for brands to scale Paid Social, but there’s a knack to creating a sustainable approach. A full-funnel strategy. Henry Linney shared how Seraphine boosted returns by investing more in Paid Social Consideration and Awareness, while Dan Sava highlighted Nike’s method of educating customers early to ensure they’re ready to convert by Black Friday.

  1. Don’t ignore TikTok

The panel highlighted the huge value in TikTok’s seamless consumer experience, from discovery to purchase. Dan Sava added, “Most, if not all, brands should try it.”

🎥 Watch the full webinar here!

More Specialty Bites 🍪

Apparel Resources

The circular fashion revolution is booming, driven by tech innovations and eco-conscious consumers. Government regulations and recycling advancements propel this trend, creating economic opportunities. Challenges like inadequate recycling infrastructure persist, but blockchain and digital tools enhance transparency. The market, led by North America, promises a sustainable fashion future.

King's Road in London remains a hotspot for indie retailers, with Penelope Chilvers opening its fourth store and KayaNuka launching another pop-up. This vibrant area continues to attract design-led brands, blending contemporary fashion with timeless style, making it a must-visit for fashion enthusiasts.

Saks Fifth Avenue ventures into fine art, offering over 100 limited-edition contemporary prints from renowned artists. Available online and in select stores, this collection aims to attract luxury consumers. With pop-up galleries and art advisors, Saks enhances the shopping experience, blending art with fashion in an innovative way.

Performance Platters 🍽️

Social ad spending targets younger audiences with low-cost products, leveraging platforms for direct-response ads and video formats. Media and entertainment use social media for game installs amid reduced TV spending. Retail and CPG dominate social ad spend, driven by competition from Shein, Temu, and D2C players.

Brands face "deal fatigue" as constant sales events pressure budgets and loyalty. To stand out, they innovate with exclusive products, tiered discounts, and added value like loyalty points. Despite challenges, Prime Day remains crucial. Adaptation is key in navigating this evolving retail landscape, ensuring sustained customer engagement and growth.

Retailers are starting holiday promotions earlier due to inflation and a shorter shopping season. With a focus on budget-friendly options and early deals, marketers aim to capture consumer interest. Enhanced in-store experiences and creative delivery strategies are key to building customer loyalty and adapting to economic challenges.

ClickZ is a Contentive publication in the DTC Ecommerce division