DTC's Daily Digest gives you the latest news on the fastest growing brands in the world. In today's edition: Urban Outfitters launches a subscription service for rent; look at DTCs to Snapchat; Natura buys Avon and hopes to promote digital presence.
Urban Outfitters launches a subscription service for rent
Urban clothing dealers began Clothing rental, Entry into the participatory economy. The retailer launches an online subscription service called Nuuly, which allows people to borrow six items to wear for a month before replacing them.
The emerging market for online clothing rental is expected to grow to US $ 2.5 billion by 2023, according to research firm GlobalData. Leaders in space include the likes of Rent the Runway, Which allows women to borrow designer clothes for a monthly payment.
David Hain, chief digital officer at Urban Outfitters, told the Wall Street Journal he expected Nauly to have 50,000 subscribers and $ 50 million (£ 40 million) in sales in its first year.
In addition to Urban Outfitters, people can also pay a monthly fee to borrow women's clothing from other brands, including Anthropologie, as well as labels such as Levi, Gal Meets Glam, Anna Sui and Fila. Subscribers can choose to buy an item or return all the clothes they have purchased before they receive anything else.
DTCs look at Snape Chat
DTC branding and customization More budget for the stories of the Snapchat discovery story, With Instagram ads rising because of increased demand at all.
Snap Story's Discovery Story ads are brand-name square formats that appear in a summary next to famous offers and publishers, allow DTCs to showcase their product portfolio, and guide consumer intent. With DTC brands looking for an alternative to Instagram, Snapchat may be able to deliver that, because it becomes a more sophisticated advertising platform.
Snapchat contains a variety of ad formats, from vertical full-screen video ads called Snap Ads to interactive lenses. Story Story, launched in April 2018, allows advertisers to share a collection of 3 to 20 images and is suitable for promoting product groups. The attractiveness of DTC trademarks is obvious, where brands appear along with well-known software and publishers, and clearly show consumer intent, where users are prompted to click the ad.
While Instagram remains the best platform for DTCs to transform conversions, because it allows users to buy the app, Snapchat is definitely a viable and cheaper alternative. In recent months, Instagram's CPM has increased to US $ 10-16 (£ 7.90-20.20) compared to the less distorted smilies, whose CPM is 2-4 US dollars (£ 1.60- £ 3.20) )
Natura buys Avon and hopes to promote digital presence
Brazilian cosmetics group Natura announced that Avon is buying Avon cosmetics.
Natura, which already owns The Body Shop and Aesop, is one of the largest Brazilian companies in the field of cosmetics, perfumes and toiletries. The offer of all shares at about $ 2 billion (£ 1.6 billion) means that Natura shareholders will own 76% of the merged company, which will have annual revenues of over $ 10 billion (£ 7.9 billion). The deal will create the fourth largest cosmetics in the world.
Avon has been struggling to modernize its global business over the past few years, with the door-to-door sales model becoming less popular in the Internet age. However, the new company is looking to expand its digital presence, as it looks forward to strengthening Capabilities in selling digital and social. This may be a mutually beneficial step, as both companies will now be able to access large volumes of customer data and years of experience in the beauty industry. However, for Avon, the success depends on how well They can adapt their long door to door sales Model and bring it to the DTC world.