Nitheesh NH
FROM THE DESK OF DEBORAH WEINSWIG
The Magic of Brands that Generate a Cult Following The Crocs footwear brand is currently on fire with consumers, billing itself as innovative casual footwear for men, women and children. Its molded manufacturing method provides the distinctive and sturdy look that is resonating with consumers. We regularly see lines outside the Crocs store on West 34th Street in Manhattan, New York City, owing to a combination of capacity limitations plus insatiable consumer demand. The simplicity of the shoes enables a near-infinite number of patterns and decorations, including bright colors, zebra stripes, a Minions theme and even a Taco Bell design. This demand is translating into big dollar figures. Crocs reported 93.3% revenue growth in its most recent quarter, with digital sales representing 36.4% of revenues. While Crocs are readily available online, the majority of the company’s customers prefer to line up to purchase their shoes in-store and take them home right away. Investors have responded to this popularity, assigning the company a market capitalization of more than $8 billion, which is more than 3.6 times its expected sales in 2021, according to S&P Capital IQ. Crocs is also undertaking measures aimed at pleasing stakeholders who value sustainability. The company aims to reach net-zero emissions by 2030 and be a 100% vegan brand by the end of 2021. Other environmental achievements noted by the company include selling 85% of its products without shoeboxes in 2020 and using 45% recycled scrap material in production. The company also donates unsold shoes to people in need. To drive continuing healthy sales growth, Crocs is leveraging word-of-mouth from employees and influencers, as well as collaborations with celebrities to stoke consumer interest. Interesting collaborations include the launch of a platform shoe in collaboration with Balenciaga (prices range from $325 to $3,250) and a futuristic model in collaboration with streetwear designer Salahe Bembury. [caption id="attachment_130736" align="aligncenter" width="480"]
Crocs x Balenciaga platform clog (left) and Crocs x Salahe Bembury collaboration (right)Source: Neiman Marcus/Instagram[/caption] Brands that find the magic recipe for appealing to shoppers, likely through personalization and customization, can still get consumers to line up on the streets to enjoy their brand.
US RETAIL AND TECH HEADLINES
Cart.com Acquires Sauceda To Provide Unified E-Commerce Solutions (July 27) PRNewswire.com- US-based end-to-end e-commerce service provider Cart.com has announced its acquisition of Sauceda Industries, a third-party e-commerce logistics supplier.
- With the acquisition, Cart.com aims to integrate all e-commerce functions under a single umbrella so that retailers can perform all of their operations through one platform. Cart.com also expects to benefit from Sauceda’s experience of providing flexible and scalable services, including subscription fulfillment and storage as a service.
- Athleisure retailer Fabletics has launched a resale service in partnership with online resale platform ThredUp. Fabletics will leverage ThredUp’s resale-as-a-service program to launch a “Clean Out” initiative.
- The initiative requires consumers to fill a Clean Out kit with apparel and accessories from any brand and mail them to ThredUp for free. ThredUp pays customers for items that meet the quality requirements in the form of Fabletics credits, which are automatically added to customers’ Fabletics account and can be redeemed online or in-store for up to 12 months.
- Home Depot has announced plans to use 100% renewable electricity at its facilities by 2030, having joined the Science-Based Target initiative to reduce global emissions.
- The company also plans to reduce its electricity consumption, having decreased electricity usage in its US stores by more than 14% in 2020 due to LED lighting installation, as well as the use of building automation systems and energy-efficient devices.
- Grocery retailer SpartanNash has opened a new micro-fulfillment center in Caledonia, Michigan. The site spans 55,000 square feet and is equipped to hold 16,000 products. It will service around 24 grocery stores in West Michigan by mid-August.
- The new facility is built to serve Fast Lane, the company’s curbside pickup and home delivery service for online orders. When fully operational, the new facility will support 1,000 Fast Lane orders per day.
- Walmart has earmarked over $1 billion for training and career development for its 1.5 million part-time and full-time US employees over the next five years. The retailer has committed to cover 100% of its workers’ college tuition fees and book costs through its Live Better U (LBU) education program, noting that US education debt has exceeded $1.7 trillion.
- Walmart will also add four new academic partners to the program—Johnson & Wales University, the University of Arizona, the University of Denver, and digital skills provider Pathstream. The company stated that 52,000 associates have participated in the LBU program since 2018.
EUROPE RETAIL AND TECH HEADLINES
Aldi Süd Launches New Range of Vegan Cosmetics (July 27) Company press release- Germany-based supermarket chain Aldi Süd has introduced a new range of natural and vegan cosmetics under its private-label Biocura Nature brand, as part of a trial project.
- The range includes body care essentials priced up to €2.95 ($3.3), which will be available in the company’s 980 stores in Germany. The company noted that the new range complements Aldi’s existing assortment of 500 products with the vegan label across both food and non-food categories.
- Sweden-based payments service provider Klarna has acquired APPRL, an influencer marketing platform, in a bid to capitalize on the robust growth in shopping via social media channels. Klarna expects that 28% of the US population will make purchases via social media channels by 2022.
- The financial terms of the transaction were not disclosed. APPRL is the latest addition to Klarna’s growing roster of retailer marketing services—On July 10, Klarna acquired e-commerce technology firm Hero Towers.
- Luxury conglomerate LVMH reported a year-over-year sales increase of 56% in its first quarter of 2021, ended June 30, 2021, with a 14% increase on a two-year basis (compared to pre-pandemic 2019). Additionally, the company’s profit from recurring operations increased by 44% on a two-year basis.
- By segment, LVMH saw the strongest growth in fashion and leather, which rose by 38% on a two-year basis, followed by wines and spirits, which increased by 12% over the same period. The company did not provide financial guidance.
- UK-based clothing retailer Marks & Spencer (M&S) is set to introduce a same-day delivery service for clothing, as part of the company’s initiative to bolster its digital capabilities.
- M&S claims that the move will make it the first big apparel retailer in the UK to offer rapid fulfillment of apparel orders, which the retailer anticipates will be faster than its competitors ASOS and Next.
- A new 15-turbine wind farm backed by UK-based supermarket chain Tesco went live in Scotland on July 27, in partnership with ScottishPower. Tesco noted that this new source of green energy will drive progress toward its 2035 net-zero carbon emissions commitments.
- The new wind farm is part of the UK’s largest unsubsidized renewable energy Power Purchase Agreement (PPA), which covers five wind farms and four solar farms. When all are in operation, 20% of Tesco’s electricity needs will be sourced directly from renewable energy.
ASIA RETAIL AND TECH HEADLINES
Cashify Acquires UniShop To Diversify Its E-Commerce Business (July 27) TheHinduBusinessLine.com- India-based re-commerce platform Cashify has acquired UniShop, an omnichannel retail service provider, for an undisclosed amount.
- With this acquisition, Cashify plans to diversify its e-commerce business, launching a new service line named PhoneShop. The new service line will enable mobile retailers to establish a web presence and build their brand.
- Many supermarkets in Hanoi, Vietnam, have started stocking two or three times more than their average volume and are increasing their warehouse capacity, in preparation for an increase in Covid-19 cases. The city imposed a 15-day social distancing campaign on July 24.
- Vinmart and Vinmart+ supermarkets have increased their stock of a variety of groceries by three to four times in the past week, including eggs and vegetables.
- MissFresh, a China-based e-commerce platform specializing in fresh food, has partnered with Mengniu Dairy, a Chinese manufacturer and distributor of dairy products and ice cream to offer Mengniu’s high-quality dairy products via the MissFresh app and WeChat mini program.
- The partnership will help both companies to improve their customer reach and enhance Mengui’s shopping-from-home business.
- South Korea’s meal-kit industry witnessed rapid growth in 2020, increasing by 85% year over year, according to Euromonitor. The meal-kit industry was valued at $163 million in 2020 and is set to reach $627 million by 2025.
- The outbreak of the Covid-19 pandemic has fueled demand for meal kits as consumers cooked and ate more at home. Various startups in the meal-kit industry reported a huge increase in revenues in 2020: Fresh Easy reported a 78.5% year-over-year increase and Tasty9’s revenue reached $20 million, up 217.8% year over year.
- According to the South Indian Mills Association (SIMA), a significant increase in domestic cotton prices has left Indian textile exports unable to compete on the global market. The market price per 355 kgs of Sankar-6 cotton increased by around 30.0% between January and July 2021, from ₹43,300 ($582.2) to ₹56,600 ($753.0).
- The rise in Indian cotton prices may also impact domestic customers—as it will cause an increase in costs of apparel and textile goods across the country.