DTC's Daily Digest gives you the latest news on the fastest growing brands in the world. In today's edition: Allbirds opens its first store in China amid turmoil business deal; Ooooby expands operations with DBP; Swiss brands slow in DTC watch sales.
Allbirds opens its first store in China amid the turmoil of the trade deal
Allbirds She has opened her The first store in China, With Shanghai store disclosure. The opening event coincided with its launch on Tmall and the unveiling of its dedicated Chinese website.
DTC also said it plans to open stores in Beijing and Chengdu by the end of 2019. Allbirds sold more than 1 million pairs of sports shoes in just over three years and raised more than $ 77 million (£ 59 million) Which is worth $ 1.4 billion (£ 1.1 billion). The company has achieved tremendous success, with a list of clients including Barack Obama, Mila Kunis and Leonardo DiCaprio.
International expansion has so far focused on the United States, New Zealand, Canada and the United Kingdom, but expansion in China presents a different kind of challenge. Given that the US and Chinese governments are involved in a trade war that has already cost billions of dollars and caused corruption in supply chains and financial markets, it is a bold move committed by Allbirds to China.
However, with the United States began to give the land the idea that China Curbing subsidies For state-owned companies To move ahead with the trade deal, Allbirds may have set the timing of its entry into the Chinese market directly, especially if a deal can be concluded soon.
Ooooby expands its operations with DBP
Ooooby, Which provides local organic food from small farmers to the public, Partnering with Delivery Biz Pro, A delivery software service, to strengthen its operations throughout New Zealand, Australia and the UK.
Pete Russell, founder and chief executive officer, Ooooby, says that Ooooby has seen "an immediate increase in average transaction values [of] More than 10%. "Ooooby plans to use DBP technology to expand its operations to other regions, reduce costs, create more efficiency, and take advantage of many new fund creation methodologies.
Ooooby works in many areas including: Christchurch, New Zealand. Sydney, Australia; and Fresno, California – offers over 345,000 boxes of products to more than 17,000 homes. Two rounds of financing, the last of which took place in June 2016, raised NZ $ 380,000 (£ 196,000) since its inception in 2010.
The company's local market, New Zealand, has a strong agricultural community but has a limited technical reputation, which means that the need for Ooooby is clear, linking farmers to urban areas. However, the UK's cracking will be a more difficult proposition, as local companies such as Farmdrop are already operating in the same place.
Swiss brands are slow in DTC watch sales
Despite all the talk about Swiss luxury brands flying their direct dealings with the consumer, the industry remains Dominated by the sentence Through a global network of retailers.
Of the top 12 watch brands, half do not have their own Web sites in the United States, including the world's largest private companies, Rolex, Patek Philippe and Audemars Peugeot.
There are only five brands that conduct their own e-commerce in Europe and only two transactions in China. A research report published by investment bank Morgan Stanley in March this year predicts that moving to DTC will be a change in the game and very useful for major watch brands in the long term. However, the report indicates that this is likely to have a significant impact on the brands owned by the Swatch, Richemont, and LVMH groups, because they are currently dependent on a very large network of external retailers.
Morgan Stanley calculates that profit margins will be greatly improved with DTC sales, especially through directly owned e-commerce sites. However, it admits that only 4% of sales values came through e-commerce in 2018.