ClickZ Retail Fashion Newsletter - 10.17.2024

PLUS: Uniqlo ramps up its presence in the US and Europe

Author

Priscilla Soedarpo
October 17, 2024 • Estimated Reading Time: 8 minutes

Ad Week New York 🎤

ADVERTISING INSIGHTS
Advertising Week NYC Recap

💡 Balancing Fame and Flow in a Post-Privacy Landscape, by Sam Carter, CEO of Fospha.

AdWeek NYC 2024 was packed full of fresh ideas and powerful reminders of evergreen principles. From navigating privacy challenges to ensuring sustainable brand growth, here are my key takeaways that all brands should be implementing:

  1. Balance Fame and Flow: Brands that focus too much on short-term conversions and neglect long-term brand-building efforts fall into the ‘doom loop’, converting only existing demand without generating new demand. Eventually the convertible audience is exhausted, efficiency plummets, and the brand finds itself in trouble. To avoid this, brands need to strike the right balance between conversion and long-term brand awareness to sustain growth.

  2. Go Full-Funnel for Measurement: To balance short and long-term goals of conversion and brand awareness, marketing teams need to be able to measure the impact of both. Last Click attribution chronically undervalues awareness activities, so brands should opt instead for measurement tools that use a full-funnel methodology.

  3. Privacy-Proof Your Tech Stack: With third-party cookies deprecation and new privacy regulations cropping up regularly, brands need to accept the death of user-level data and embrace privacy-centric solutions to future-proof their measurement. 

Read the full article here. 

Hot in D2C eCommerce 🔥

AI POWERS PRIME
Amazon Prime Big Deal Days 2024 Breaks Records with AI and Innovation (top links below 👇)

Amazon’s Prime Big Deal Days 2024 made history with the largest October shopping event ever, saving Prime members over $1 billion globally. This year’s event highlighted Amazon’s cutting-edge AI tools, including its AI assistant, Rufus, and drove massive sales across electronics, toys, and apparel. Top brands like Apple and Dyson offered unbeatable deals, setting the stage for a promising holiday shopping season.

Momentum Commerce reported a 41% sales increase on Day 1, with brands like Crocs and Lego leading the charge, while regions like Canada and Europe saw notable growth despite weather impacts affecting the U.S. Competitors Target and Walmart also launched early sales events, but Amazon's use of innovative shopping tools and AI set it apart in an increasingly competitive market.

For deeper insights into this record-breaking event, explore these key sources:

Specialty Bites 🍪

Gap and Cult Gaia have collaborated on a 35-piece holiday collection launching October 10, blending Gap's basics with Cult Gaia's modern, sculptural style. This partnership aims to connect with millennials and Gen Z through innovative designs, featuring unique details like chain-link accents and gold hardware.

Fast Retailing Co., the owner of Uniqlo, is making significant strides in the Western market, aiming for higher sales in North America and Europe. This expansion is part of founder Tadashi Yanai's vision to establish Uniqlo as a global fashion leader. Despite challenges in China, where sales have dipped, Uniqlo's brand awareness is growing, with increased acceptance among locals and tourists alike.

The company's fiscal year ending in August saw record revenue of $21 billion (3.1 trillion yen), driven by strong performance in international markets. Uniqlo's functional basics are gaining recognition, contributing to substantial revenue and profit growth. Fast Retailing plans to close under-performing stores in China and revamp others to boost sales, while its GU brand also reported robust profit increases, particularly in the US.

H&M is innovating its retail strategy by enhancing customer experiences and localizing store assortments. In New York, all 12 Manhattan stores will be revamped, including a unique pop-up in Nolita. This approach aims to elevate H&M's brand presence, leveraging technology and personalized services to boost customer engagement and profitability.

Holiday spending is on the rise, but high costs of essentials like groceries and gasoline are causing many to cut back. This year, 61% of shoppers plan to spend over $600 online, up from 48% last year. However, 47% will reduce spending due to high everyday prices. Retailers can capitalize on this by enhancing their global commerce platforms.

Consumers are prioritizing quality and price over brand names, with 66% focusing on these factors. Social media, especially TikTok, is a source of inspiration for Millennials and Gen Z. Events like Black Friday and Amazon Prime Big Deal Days are popular, with 70% planning to shop for deals. Retailers must offer compelling experiences to capture consumer interest, as competition for discretionary spending is fierce.

Parisian retailers are adapting to theft concerns by narrowing store entrances during fashion week. This change reflects a broader sentiment of caution, echoing the phrase "this is why we can't have nice things." While practical, it highlights a shift in retail dynamics, emphasizing security over traditional shopping experiences.

Performance Platters 🍽️

Microsoft is transitioning from its retail media platform, PromoteIQ, to a partnership with Criteo. This shift reflects the evolving retail media landscape, emphasizing the need for adaptable strategies. While PromoteIQ's closure isn't officially announced, the move highlights the importance of resilient, owned architectures in the dynamic ad tech industry.

Retailers often miss revenue opportunities throughout the purchase funnel, from accessibility issues to ineffective discount strategies and poor mobile optimization. In this insightful podcast, experts explore how optimizing these areas can reduce cart abandonment and boost customer retention. Additionally, they discuss how strategic return policies can enhance customer loyalty while minimizing losses. Listen now for actionable tips to create a more profitable retail experience.

LoopMe introduces Brand Outcome Scores, an AI-driven tool enhancing ad performance by predicting ad effectiveness without cookies. This innovation aids marketers in optimizing campaigns across mobile video, CTV, and display ads. Initially launching in the US and UK, BOS aims to revolutionize advertising strategies globally.

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