Nobody's Child launches digital passports, Stitch Fix is looking for fixes, Sephora targets €20bn sales goal, and Prada is investing €1bn in its retail strategy.
Plus, this week's Retail Lab and Strategy Insights, where I discuss how Zara makes shopping easy, and why own-brand beauty doesn't always need to be a "dupe".
In The Loop #35: this week's retail insights, news and trends. Content designed for busy retailers, carefully curated with expert analysis to save you time and help you thrive.
Nobody’s Child launches digital product passport - The Retail Bulletin
Nobody’s Child is launching digital passports. From autumn 2024, all clothing labels will have QR codes that customers can scan to get an accurate picture of that item’s journey, from “the materials used, the manufacturing process and the environmental impact of their purchase”, through to information on repairs and rentals. This positive step by a mid-size clothing retailer to become more transparent and be held accountable for its manufacturing and distribution processes is the future of retail; in years to come, customers will expect this level of honesty from all brands they buy from.
📌 Takeaway: with the technology readily available, will brands be able to justify their secrecy in the face of questions from customers who prioritise ethical manufacturing and sustainability in their purchasing decisions?
Stitch Fix hints at new client experience as declines persist - Retail Dive
Stitch Fix is a complex business. On the surface, it seems like a sound idea to send out stylist- curated boxes to clients who have provided their fashion preferences and budget constraints, but in reality, fashion and shopping are far more complex. Asking a client to fill out a form and then leaving the rest to an algorithm is a recipe for failure, but the business can’t scale without technology because stylists can’t always provide one-to-one services, and nor do clients always want that level of interaction. How does a tech-first fashion business navigate these tricky waters? It seems like change is on the horizon, but clients are being asked for patience while the business makes the necessary changes.
📌 Takeaway: fashion is an emotional industry, and it thrives on connection between brands and customers. What we’re seeing at Stitch Fix is an attempt to guess what people want to buy, but unless they can factor in excitement, emotion, and changing consumer behaviour in to their technology, the road ahead will continue to look uncertain.
LVMH-owned Sephora seizes on ‘lipstick effect’ as it aims for €20bn sales goal - The FT
A feat only achieved by Louis Vuitton at LVMH, Sephora is aiming for a €20bn sales goal, and it looks like it might be coming sooner than anyone predicted. As the social media buzz and excitement about Sephora continues to grip beauty enthusiasts worldwide, it’s worth noting that discovery is one of the biggest footfall and sales drivers at Sephora. Even in difficult market conditions, customers will always want products that are new, exciting, and affordable if they bring them joy, which is what makes Sephora’s stores above all others the place to go in the sector. It seems there is no limit to what Sephora can achieve on a global scale because they have cracked the code of what makes their ideal customers tick.
📌 Takeaway: “we have a product that makes people happy, an accessible product” - Guillaume Motte, CEO, Sephora. In a nutshell, this is what drives success in the cosmetics industry, and it’s the reason large luxury fashion houses such as Céline are moving in to the beauty space.
Prada to invest 1 billion euros in its retail strategy - Fashion United
Prada is investing in the future by earmarking €1bn for its retail strategy revamp over the next five years. As consumer preferences evolve, it’s essential for market-leading businesses to keep up with the pace, especially as younger disruptive brands can often move faster in terms of innovation. It’s telling that Prada’s focus will be on immersive and "experiential shopping”; shoppers are becoming disillusioned with the traditional retail format and are now expecting more from their shopping trips.
📌 Takeaway: It’s essential that all retailers look at what more they can offer their customers beyond the product- that’s the future of retail.
💡 Strategy Insights by Retail Collaborative
I love retail, and I’m always analysing trends, products, launches, and innovations, both online and in stores.
Here are some strategy innovations I noticed this week:
🎁 Maximising the impact of a gift with purchase: Rituals reward loyalty by giving a way a luxury-sized free gift every month with purchases over £45. The best part? The products they give away are beautifully packaged and feel like a substantial treat that customers can not only try, but get used to having in their routine, all of which increases the likelihood of a full-size purchase.
🧴Creating affordable in-house beauty products that surpass the dupe culture: the M&S Formula range is a masterclass in how you sell own brand beauty. Rather than creating a cheaper version of a luxury product, M&S have researched market bestsellers and improved them so they resonate with their own customers. Another plus? They’ve priced them fairly, but packaged them as high-end, which is exactly what M&S customers come to them for.
💄 Branching out in to complementary categories: this week Céline announced the autumn 2024 launch of their beauty line, which will see the brand sell lipsticks for the first time in its 80 year history (other products will follow). This is a strategic move by Céline to diversify and give customers an entry price point to buy in to the brand. After all, beauty almost always sells, regardless of the economic climate.
💎 Storytelling through collaboration: jewellery has always been personal and full of emotion, and Astrid and Miyu is taking this to the next level with the “Story Chain”. By “celebrating everything that makes you, you” the brand is bringing the bespoke jewellery design experience to the high street.
🧪 Retail Lab by Retail Collaborative
In case you missed it, this week’s “Retail Lab” was a deep-dive in to how Zara makes it easy for customers to buy. From using RFID technology to increase stock visibility and reduce fitting room queues, to making the shop floor easy to navigate, Zara is removing barriers to purchase.
⭐️ Retail Collaborative Updates
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My mission is to help you build a strategy for success, which means collaborating with business owners and decision makers to achieve successful outcomes.
🤝 That’s why I’ve created the Retail Collaborative “Collaboration Session”.
📌 Find out more and book here.
📣 If you don’t already follow me on Linkedin, please do! It’s where you’ll find me discussing the latest retail trends and news during the week.
And that’s a wrap for this week!
I’d love to hear from you, so let me know what you think of this week’s edition and what you would like help with in your retail business.
Until next week,
Hina