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FROM THE DESK OF DEBORAH WEINSWIG
Brands from Gucci to Toyota Are Embracing the Fast-Growing Esports Community To Broaden Their Reach Some readers may not be aware of esports—competitive video gaming in organized leagues or tournaments, often played for prize money—but they should be. It is a large and fast-growing market, with the number of global viewers expected to reach 622 million in 2022, up 63% from 2018, according to esports analytics company Newzoo. As the borders between many retail categories and channels increasingly blur, more brand categories are seeking to make inroads into the esports community. For example, in luxury retail, Gucci announced its partnership earlier this week with Los Angeles-based apparel and gaming brand 100 Thieves. The collaboration has released a limited run of just 200 backpacks, priced at a hefty $2,500 each—available online and at Gucci’s store in Beverly Hills, California. Underscoring Gucci’s commitment to sustainability, the backpacks are made from Econyl, a material constructed from repurposed fishing nets, carpets and other upcycled nylon fabric scraps. Louis Vuitton has also previously launched esports collaborations, partnering with League of Legends on T-shirts in 2020. Several more partnerships are planned between luxury brands and the esports industry, which we believe will cement a new category of gaming fashion. [caption id="attachment_130421" align="aligncenter" width="420"]
100 Thieves x Gucci Off the Grid backpackSource: Company reports
[/caption] Automotive brands are also crossing into the esports space. A collaboration between global esports organization Gen.G and carmaker Toyota was announced this week, spanning multiple channels and technologies, including the Twitch livestream gaming platform and social media channels. The two companies launched a 10-day streamed virtual race on July 19, 2021, which features nine content creators split into three teams that drive Toyota vehicles in the game. Competitors include content creators from the games League of Legends, Minecraft, Rocket League and Teamfight Tactics, in addition to well-known esports players with large social media followings. The race is being livestreamed on the Twitch platform, and fans can help their favorite creator: Viewer engagement related to each player via Twitter and Twitch boost that competitor’s points. Beauty is yet another area that is capitalizing on esports communities, with the latest development being an Animal Crossing x Gillette (a division of Procter & Gamble) collaboration. In the regular Animal Crossing game, characters live in a village and can undertake activities including fishing, catching insects and hunting for fossils. The collaboration centers on the Venus hair-removal brand and aims to encourage body positivity. It enables players to choose from 19 different skin tones and various skin appearances and conditions when creating their personalized avatar. Esports is a major global cultural phenomenon that is attracting increasing numbers of players and spectators worldwide—likely experiencing a major spike in 2020 amid the increase in consuming content online as consumers sheltered at home. Brands are always seeking to expand their consumer base and generate relevance with other communities, and gamers are proving to be the latest focus for many.
US RETAIL AND TECH HEADLINES
Dick’s Sporting Goods Partners with Gen Z TikTok Influencers (July 19) TheDrum.com- Dick’s Sporting Goods has partnered with top Gen Z TikTok influencers to promote its new “back to school” collection. The company is focusing on expanding its lifestyle and apparel business—the ad campaign released on TikTok features bucket hats, hoodies and windbreakers from brands such as NIKE and The North Face.
- The retailer has collaborated with TikTok celebrity Nicole Laeno, actor Miles Brown and NBA stylist Calyann Barnett on the commercial, working with the creators on music selection through to production.
- Fabric, an e-commerce platform development company, has raised $100 million in its latest funding round—led by New York-based private equity firm Stripes and including new investors B Capital Group and Greycroft. Existing investors Norwest Venture Partners, Redpoint Ventures and Sierra Ventures also joined the round.
- The company will use the funding to hire a new marketing leadership team, expand its engineering team and for strategic acquisitions. It is also looking to expand in Asia.
- JCPenney has announced the introduction of JCPenney Beauty, a new in-store and online experience set to launch in October 2021. Its key aim is inclusivity, aiming to appeal to a diverse range of customer needs. To create the shop-in-shop, the company has partnered with Thirteen Lune, a beauty and wellness e-commerce platform that showcases Black- and Brown-owned brands.
- The shop-in-shop will house multiple brands and products across categories including hair products, fragrances, makeup, skincare and styling tools. It will also house the JCPenney Salon, one of the largest full-service retail salons in the US.
- Macy’s has introduced a new private-label brand named And Now This, featuring merchandise in the ready-to-wear women’s and men’s categories.
- The pieces are targeted at consumers looking for current fashion pieces, with items including athleisure, bodysuits and tanks.
- Fashion rental specialist Rent the Runway has filed for an IPO (initial public offering) with the US Securities and Exchange Commission. The company aims to take advantage of the growing market for rental clothes and secondhand apparel.
- The number of shares and the target price range are yet to be determined. The company was valued at $1 billion as of June 2021, after raising funding of $750 million in 2020.
EUROPE RETAIL AND TECH HEADLINES
LVMH Acquires Majority Stake in Off-White (July 20) Company press release- French luxury conglomerate LVMH and American fashion designer Virgil Abloh have announced a definitive agreement for LVMH to acquire a 60% stake in Off-White, an Italian luxury fashion label. The label is currently owned by Abloh, and he will retain the remaining 40%.
- The partnership will pursue new projects across luxury categories, leveraging LVMH’s expertise at launching new brands and partnering with existing ones in sectors outside fashion. LVMH and Abloh have worked together before, and he is currently Artistic Director at Louis Vuitton.
- Russian food retailer Magnit has launched its first two stores in the Republic of Dagestan, bringing the number of regions covered by the retailer to 67.
- The company has opened one convenience store and one cosmetics store, both located in a residential area in the city of Kaspiysk. The stores span 400 square meters and 240 square meters, respectively.
- British lifestyle brand Mulberry reported that its international sales increased by 4%, reaching £33.8 million ($46.1 million) in its fiscal year ended March 27, 2021. Digital sales were up 55% compared to its previous fiscal year, reaching £56.4 million ($76.9 million).
- The retailer also reported an underlying profit before tax of £5.9 million ($8.0 million), after incurring a loss before tax of £14.2 million ($19.4 million) in its previous year. However, group revenue decreased by 23% to £115 million ($156.6 million).
- British fashion retailer Next Plc has reported sales growth of 18.6% in the 11 weeks ended July 17, 2021, versus the same period in 2019 (pre-Covid)—ahead of its expectations for 3.0% growth.
- The company’s total online sales were up 44.0% on a two-year basis, while total full-price sales were up 20.8%—driven primarily by pent-up demand for clothing, as well as the sudden arrival of warm weather at the end of May and start of June, according to the company. Considering its strong momentum, Next has raised its full-year sales growth guidance to 6.8% from the previously announced 1.9%.
- British online fashion brand Sosandar has reported a year of strong revenue growth, with an increase of 35% to £12.2 million ($16.6 million) in fiscal 2021. The company reduced its EBITDA loss to £2.93 million ($3.98 million) in fiscal 2021 from the previous year’s £7.66 million ($10.43 million) loss. It also reported a rise of 256% in sales year over year for its first quarter of fiscal 2022.
- In fiscal 2021, the company diversified and expanded its product range to launch new categories such as active, leisurewear and loungewear, increasing its range of new styles by 60% over the period.
- Polish convenience store chain Zabka Polska has launched a new parcel-pickup service, claiming to be the first store chain in Poland to offer this service.
- The service allows customers to leave parcels at Zabka stores addressed to intended recipients for collection. Consumers can access this service by registering their phone number and email address at the designated webpage.
ASIA RETAIL AND TECH HEADLINES
BigBasket Plans To Launch Express Online Grocery Delivery (July 19) ETRetail.com- India-based online grocery delivery platform BigBasket has announced plans to launch a one-hour delivery option. The company has piloted express deliveries in the past but pulled back from a full launch.
- As part of its new service launch, BigBasket also plans to improve its offerings by adding native language options to its platform.
- Bukalapak, one of Indonesia’s largest e-commerce companies, has raised the country’s highest IPO to date, at $1.5 billion. The IPO is supported by investors including Microsoft and Singaporean sovereign investor GIC. The company gradually increased its funding goal from $300 million to $800 million, before reaching $1.5 billion, backed by high demand from investors.
- The development comes amid a significant rise in demand for e-commerce services in Indonesia, a market valued currently at $40 billion.
- Japanese retailer Muji has appointed UNIQLO’s former Senior Executive and Chief Strategy Officer (CSO) Nobuo Domae as President.
- Through the appointment, Muji intends to reorient the organization’s corporate philosophy and operations, as it competes with Fast Retailing, UNIQLO’s parent company. Muji’s sales for its current fiscal year are projected at $4.43 billion, much lower than Fast Retailing’s projections of $19.5 billion.
- Singapore-based cross-border payments network Thunes has acquired Paris-based payments platform Limonetik. The takeover will allow Thunes to provide expansive end-to-end solutions through a single portal, improving global accessibility to financial services.
- Thunes facilitates QR code payments, mobile wallets and electronic payments in more than 110 countries and raised $60 million in Series B funding in May 2021. In this takeover, Limonetik’s CEO and its 50 staff members will be onboarded by Thunes.
- Indian food-delivery giant Zomato has reportedly raised $1.26 billion in its IPO. Backed by China’s Ant Group, which is affiliated with Alibaba, Zomato will be valued at up to $8 billion following the IPO—the highest valuation of a food-delivery group in India to date.
- Zomato’s rival Swiggy has reportedly raised $1.25 billion in a private funding round, which included investors SoftBank’s Vision Fund 2 and technology investor Prosus.