ClickZ Retail Fashion Newsletter - 11.14.2024

PLUS: Gen Z loves pre-worn fashion. Here’s how brands win big.

Author

Sophie Bruxner-Randall
November 14, 2024 • Estimated Reading Time: 7 minutes

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Specialty Bites 🍪

High return rates, particularly in apparel, footwear, and accessories (averaging 26%), pose challenges for profitability and inventory management in the fashion industry. Emerging resale platforms like Bazar and Revive are transforming returns into opportunities:

  • Bazar: Operates a marketplace for unsellable full-price items, providing brands a way to recover value from excess inventory.

  • Revive: Refurbishes returned goods for resale on platforms like Poshmark and eBay, with significant growth projected in refurbished inventory.

The stigma around pre-worn items is fading among Millennials and Gen-Z, creating a lucrative resale economy. Brands leveraging these platforms not only improve margins but also engage sustainability-focused customers, turning returns into a competitive advantage.

This holiday season, cautious consumer spending and limited retail space are pushing brands to focus on creating unique, cost-effective pop-up experiences. Brands like Target and Spirit Halloween are using engaging activities and special offerings to captivate consumers and build awareness. For marketers, the key is to emphasize a pop-up's unique value proposition, using immersive technology or intimate events to create memorable experiences that resonate with audiences and make your brand stand out during the festive season.

Leading Voices 📣

With the election now behind us, the whopping 44% of consumers who reported delaying purchases pre-election may finally be ready to open their wallets. 

Black Friday and Cyber Monday could be bigger than ever as shoppers prepare to make these ‘revenge purchases.’ This is a prime opportunity for brands to capture pent-up demand.

In this article, Jamie Bolton shares 3 tips to make the most of this opportunity:

📉 Integrate Lower-Competition Channels: Platforms like Snapchat have less competition and lower CPMs, offering low-hanging conversion opportunities.

🎯 Consider TikTok for Efficiency: Last year, TikTok saw the biggest month-over-month jump in ROAS in November, making it a highly efficient tool for BFCM success.

⏳ Strategically Time Ad Spend: 2023 data shows strong results from increasing spend at the start of Black Friday week, but the best approach depends on your budget and goals. (Get a full guide to three timing strategies in Fospha’s BFCM report).

For a closer look at the data behind Jamie’s top tips for BFCM 2024, check out the full article.

Luke Jonas on LinkedIn: Going global in 2025

Although Black Friday is just around the corner, savvy brands have half their mind on next year.

With economic challenges in the UK, and a growing opportunity in the US/EU, many retailers are asking: how can we mitigate the risk of our home market?

More Sensational Styles 👗

LiveRamp and Criteo have partnered with Boots to enhance first-party data capabilities for retail media. This collaboration unites online and offline data, improving ad targeting and ROAS. Boots' Advantage Card data offers a comprehensive view of consumer behavior, driving personalized marketing and revenue growth for brands and retailers.

Fashion retailers are set for a strong Black Friday, with major brands driving the momentum. Tank’s Black Friday Readiness Report predicts a 123% surge in web traffic for fashion and a 42% increase for beauty and personal care. These trends highlight significant opportunities for sales growth, emphasizing the importance of digital strategies to capture consumer demand during this peak shopping season.

LVMH invests in Swedish brand Our Legacy, aiming to boost its growth. Rumors of Moncler acquiring Burberry increase the latter's share value. Chanel strengthens its presence in China, while Supreme collaborates with Mitchell & Ness. Adidas and C.P. Company celebrate SPZL's anniversary, and Arcteryx introduces new patterned designs.

Performance Platters 🍽️

The latest benchmarking data from full-funnel marketing measurement provider Fospha reveals that Meta and Performance Max still dominate as the highest-spend channels for fashion brands, holding an average of 35% and 30% of budget respectively. This is a testament to the channels’ ability to support both brand-building and conversion activities at scale, both key components for sustained growth. 

Pinterest, making up an average of 1% of fashion brands’ budgets, delivered the highest ROAS across all channels in Q3. Higher revenue efficiency is not rare for smaller channels – but Pinterest’s ability to outperform other lower-spend platforms likely reflects its unique suitability for fashion marketing. Widely used as a hub for discovering and curating style inspiration, fashion advertising can easily be made to feel native to the platform experience. With Pinterest ad spend up 51% year-over-year across all industries, it seems more brands than ever are eager to tap into the platform’s growth potential and unique advantages.

Marketers should focus on creating emotionally resonant holiday campaigns that align with consumer behaviors. By prioritizing engagement and building brand loyalty, they can navigate the shortened holiday season effectively. Continuous engagement and innovative strategies, rather than early promotions, are key to long-term success and consumer connection.

BigSummit emphasized the importance of multi-channel strategies for eCommerce success. Brands should engage consumers across various platforms, manage product assortment, and adapt to economic pressures. Social shopping, especially on TikTok, offers new opportunities. Understanding consumer behavior and forming strategic partnerships are crucial for navigating the evolving eCommerce landscape.

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