Category: Retail

For Metaverse Fashion Week’s second iteration, Decentraland foundation partnered with additional metaverses Spatial and Over the Reality making for a broader experience and participating brands both harnessed emerging technologies and solidified their Web3 strategies.

“Last year the brands were more showing up but now they know a lot more what they want,” said Mike Charalambous CEO of Threedium, in an interview. “There’s a coherent strategy behind it employing real narrative and brand values.” 3D engine Threediem enables the digitization of physical assets, helping brands from Dior to Fendi generate commercial opportunities. It worked with Coach on the brand’s gamified Metaverse Fashion Week experience in Decentraland centered around its hero Tabby bag.

Cross Metaverse Capability: Community vs. Commerce

Both adidas Originals and Tommy Hilfiger showcased the emerging cross platform capabilities of digital wearables. While the adidas play was community focused, that of Tommy Hilfiger was driven by commerce.

adidas hosted both a runway show and immersive space. As reported, holders of adidas’ Virtual Gear nonfungible token (NFT) collection could also wear their pieces in Decentraland via a ‘linked wearables’ feature but the brand also gifted 5000 Decentraland wearable editions of its Wallrunner jacket in an exclusive blood orange colorway to visitors. “It was a chance to learn does the community like this,” said VP of the adidas /// studio, Erika Wykes-Sneyd, in an interview on Friday, “getting feedback on the utility of having interoperability.”

Hilfiger’s Decentraland space was a sales hub which allowed users to buy physical items or directed them to Ready Player Me (RPM) where they could by digital wearables created with partner DRESSX that could then be worn by avatars across Decentraland, Roblox and RPM compatible worlds such as Spatial.

DRESSX X Tommy Hilfiger Artificial Intelligence (AI) Fashion Challenge

The hottest topic of the moment — not least for that AI generated picture of the Pope in a white Balenciaga puffer jacket going viral and Italy’s ban on ChatGPT which may or my not be related — AI also insinuated itself into Metaverse Fashion Week. Tommy Hilfiger and DRESSX (which also created the wearables for the Dundas Metaverse Fashion Week runway) launched an AI fashion challenge from the latter’s Discord channel whereby would-be AI designers were invited to create looks via written prompts and implement Hilfiger branding. Winners will have their creations produced as an NFT artwork with AR and Decentraland utilities.

Spatial Stepped Up Its Fashion Game With Hugo Boss

Hugo Boss created an immersive showroom on Metaverse Fashion Week cohost platform, Spatial, dubbing it a digital extension of the recent BOSS fashion show that took place in Miami. Visitors could purchase physical versions of the five looks displayed in the space via links to BOSS’ e-commerce. In an additional gamified element, users completing a quest received a digital version of a BOSS suit shown on the Miami runway that could be worn on Spatial and other platforms using Ready Player Me avators.

“We will leverage the opportunities this opens for our brand’s storytelling and see it as an additional sales channel within our future omnichannel strategy,” said HUGO BOSS CEO Daniel Grieder in a statement. Grieder is notably former CEO of Tommy Hilfiger. The activation was created in collaboration with Web3 agency Exclusible. Spatial which has the benefit of being a mobile optimized metaverse, has previously been considered a more corporate environment.

Augmented Reality: Merging Two Worlds

Augmented Reality (AR) metaverse platform Over The Reality participated in Metaverse Fashion Week with a site specific AR runway show at Milan’s Piazza del Duomo which people in the vicinity could access via their smartphones to see looks and accessories from Pinko, the Balmain x Spacerunners collaboration and Gucci Vault collaborator Pet Liger. “It was about bringing digital fashion into the real world and merging the physical and the virtual,” said Over founder Diego di Tommaso in an interview. “When you see something digital mixed with reality the effect is much stronger.”

Let’s Get Real

Launched over Metaverse Fashion Week, French e-commerce platform Monnier Paris teamed up with Decentraland and digital fashion brand Republiq, on a design competition for Web3 fashion creators. Finalists will have their submission turned into a real life bag via 3D printing technology and sold on Monnier Paris with an accompanying NFT.

According to Monnier Paris CEO Diaa Elyaacoubi-Bouriez, the aim is to spotlight digital talent and create a bridge with the real world. “We are convinced that they will massively shape the luxury fashion industry of the future,” she said during an interview, drawing parallels with with the impact of music on fashion exemplified by Louis Vuitton’s hire of Pharrell Williams. “We hope the prize will become the digital fashion equivalent of the LVMH Prize,” she quipped.

It’s becoming increasingly apparent that the metaverse does not exist in silos. It’s inextricably bound to the real world with all the same components — from our obsession with tv reality shows to the red carpet moments of the MET Gala and the Oscars.

HBO Reality Show winner Winston Bartholomew of House of Barth closed Metaverse Fashion Week with a virtual runway show and created a digital capsule of his latest collection with the Decentraland team. The next season of Glow Up: Britain’s Next Make-Up Star, a reality tv series broadcast on The British Broadcasting Corporation’s BBC3 channel and co-presented by make-up artist Val Garland, will play out in the metaverse.

Likewise Web3 entrepreneur Cathy Hackl showcased the digital version of Vivienne Tam’s physical Bored Ape Yacht Club inspired dress created with Brand New Vision (BNV), on Metaverse Fashion Week’s virtual red carpets.

Finally to Philipp Plein who unveiled his new Swiss-made timepiece category during Watches and Wonders in Geneva last week and hosted a concurrent activation in Decentraland, streaming the IRL event’s live performance by Bonnie Tyler at his Plein Plaza space in the virtual world. The first 100 participants received digitally wearable necklaces in the shape of his new watch.

Our Place’s latest Melrose Ave billboard is more than just a store. A dropped checkerboard ceiling, ceramic tiles mimicking kitchens, a waved dining table made infinite by mirrors and a color palette that merges with the unique pastel warmth of its products, Our Place is making a mark with its design in the direct-to-consumer kitchenware space.

In 2022, retail net absorption was 76 million square feet, almost double 2019, and the vacancy rate hit a low of 4.2%, according to JLL
JLL
. In other words, there’s significant demand for retail space. Many factors drive it, but one is the influx of direct-to-consumer digitally native brands opening stores. Kitchenware used to be dominated by well-known national brands like Williams Sonoma and Sur La Table and all the department stores. However, Our Place is far from the only start-up entering the space today. For example, Fable is a Canadian kitchenware company that recently started opening stores. Others include Made In with a store in Austin, Kana, Great Jones, Jono Pandolfi, and many more. Therefore, to survive long-term, these brands must do more than create great products or simply open a store. That store needs to be memorable.

An exclusive and memorable store design is vital to long-term success.

“The store design evokes that feeling of warmth and excitement that comes with inviting others into your home for an intimate shared meal. The customer shops a series of domestically curated vignettes, connecting with their products and brand mission on a new, multi-dimensional level, one that is both memorable and authentic,” Madelynn Ringo, head of Ringo Studio and designer of the Our Place Melrose store, stated.

The Our Place products are also known for design – the Always Pan and Perfect Pot come with various add-ons, like steamers and strainers, that allow them to be used for multiple purposes, limiting the overall number of cooking pots needed in a kitchen. So, it only makes sense that the store would imitate that experience.

The benefit of design goes beyond the four walls.

Design carries more weight as omnichannel is becoming recognized as a necessary feature of the direct-to-consumer journey. It means that whether a consumer is browsing in-store and purchasing online, vice-versa, or across other channels, they have an equally enjoyable experience. Of course, it’s hard to implement, but the reality is that customers shop across channels.

“Our stores are located where we already have a large community, where people know Our Place. But, even so, we have people walking in every day who are just learning about the brand for the first time, and we see in our direct-to-consumer metrics the impact of the people who drive by the store and just see this beautiful billboard,” shared Shiza Shahid, Founder of Our Place.

In addition to its standalone stores, Our Place is in various wholesalers across the US, Canada, and the UK. Even though it’s harder to control that experience, the brand is taking on more shop-in-shop partnerships, which are in-store pop-ups designed by the Our Place team. For example, the company currently has one open in Nordstrom
JWN
in New York City and will open another in Selfridges in April. “We’re thoughtful about which wholesale partners we work with and what the structure of those partnerships looks like, but if done right, it’s a rising tide that lifts all boats,” Shahid added.

Most direct-to-consumer brands focus on the wholesale space first, given the low-cost investment but equal opportunity to bring the products to customers in real life. An alternative technique is Jono Panolfi’s, which uses high-end Michelin Star restaurant partnerships to showcase products.

Retail today also needs to foster community.

One of the founding principles of Our Place stemmed from the power of food and sharing a home-cooked meal. As an immigrant, Shahid has always believed that “food and home cooking specifically is this incredible way to reconnect to our cultures, communities, traditions and food systems.” And the company made sure to showcase that value in its stores. It hosts events like book launches and food samplings, and in its Venice store, it even partnered with a local Asian-owned coffee and boba shop for its café. And the store’s design is critical to ensuring these community-driven events can occur.

This idea of community in retail is taking off. Almost every direct-to-consumer brand that opens a store appears to incorporate it, even national retailers like Sur La Table and Williams Sonoma. So, alone, it carries little value. But, with design, it creates an Instagram-worthy, shareable moment.

Our Place seems to lead in its overall offering for the kitchenware shopper, driven by its one-of-a-kind product and store design. However, the numerous players in the space and rising demand for retail bring to question its longevity. But, hopefully, its design will continue to set it apart.

Next continues its buying up of beleaguered brands with the purchase of Cath Kidston, the retro retailer with a unique offering of flowers and chintz.

In 2020, Cath Kidston went into administration winding up a majority of UK stores and seeing the end to over one thousand roles within the organisation.

It was then purchased and repackaged by private investment business, Baring Private Equity Asia, which then in July 2022 sold the business to Hilco Capital.

In a deal worth $10.5 million Next has bought the name and intellectual property of Cath Kidston from administrator’s PWC
PWC
but not the remaining four stores. It is confirmed that the stores including one in London’s Piccadilly will be wound down.

Next has purchased other challenged brands over recent months including the country-casual fashion brand Joules, and furniture retailer Made.com.

In a carefully unified experience, Next offers consumers a wealth of brand choice, with quick delivery, slick return operations and in-house credit facilities. It has thrived in fashion and homewares where many traditional competitors have failed to get it right.

Cath Kidston was founded in 1993 and is known for a celebration of chintzy styles across fashion and homewares. Originally the brand retailed from an independent Holland Park, London store which combined vintage finds with curated fabrics. Catherine Kidston MBE went on to sell the brand in 2010.

Speaking of the Marmite love/hate for the brand, Kidston once told the BBC Radio programme Desert Island Discs: “People either love it and want a little bit of it very much, or want to stab us”.

In recent months UK consumers have felt increasing pressure with a cost-of-living crisis that has impacted spend particularly on non-essentials. This squeeze on finances has challenged many brands particularly within the middle market. Luxury proves to still be, in the main, resilient, with group trading for LVMH up and share price buoyant.

New York originated brand LoveShackFancy also has a core focus on florals and vintages looks but has seen recent expansion with multiple store and location openings.

Stacy Lilien, president of LoveShackFancy explained to WWD magazine: “Overall our business is up 100 percent year-over-year, and we’ve seen significant growth over all three channels. Wholesale has been incredible, e-commerce and stores. And our businesses are a third, a third, a third.”

So clearly floral love is not the problem here, it’s the way the story is told. One for Next to contemplate as they introduce the brand into the fold.

It’s no secret that the majority of small and startup businesses have tight budgets. The challenge of growing a small business on a tiny budget has only increased as costs of advertising continue to soar.

Is it possible to grow a retail business purely using unpaid methods? How exactly do you grow a small business with no money for marketing?

Search Engine Optimization (SEO) helps your small business grow

Search engine optimization (SEO), or making your website discoverable to potential customers via online search engines, is vital for small businesses who want to take advantage of the fact that 68% of all online experiences start with search engines.

Rebecca Gibbions, owner of Last Night I Dreamt, a UK-based contemporary jewelry boutique, takes a fresh approach to putting searchable content onto their website.

“We try to create fun collections and look at trends that are going on around us. For example, everybody was talking about Wednesday, the Netflix
NFLX
series, so we created an entire Wednesday edit on the website. If people happen to be searching for Wednesday’s style, or Wednesday’s jewelry, we might come up,” she explains.

“I also created an Emily in Paris jewelry edit. If people are engaging with something like Emily in Paris, and they want to find out how Emily wears her jewelry, then we would come up in that search. It’s fun, not dry.”

For Rebecca, it’s all about “understanding your customer” and not letting your website “go stale”.

“It’s very important that your website is your biggest focus because if you just
just
leave it and think it’s going to run itself, then you’ll end up on page 43 of the search results. If you’ve not been updating or adding to your website, writing blogs or engaging with your customer, Google will know that.”

Growing your small business using Public Relations (PR)

Steph Douglas, CEO and founder of thoughtful gifting brand Don’t Buy Her Flowers, believes that public relations (PR) has been instrumental to the growth of the business.

“The biggest thing we use PR for is to create a brand and a story,” she explains.

“It comes down to your brand pillars. For us, we have four brand pillars including motherhood and thoughtfulness. I look at what stories I have to share around those four, that will help tell the story of Don’t Buy Her Flowers.”

If PR sounds like a costly strategy for a small business, Steph is quick to point out that it doesn’t have to be.

“We didn’t pay anyone to do our PR for a good few years,” she clarifies. “For example, I’m part of a Facebook group called Lightbulb PR, which is a very low cost way to get access to journalists.

The thing with PR is that opportunities could be anywhere. It’s just a case of being ready with your story and reaching out when you see that opening. What’s been really lovely is that as the business has grown, now if I contact a journalist they have quite often heard of us.”

Laura Schofield, founder of Otto and Ivy, a specialist shoe brand catering for tall women UK shoe size 8 and above, is also a convert to the power of PR and seizing opportunities when they arise.

One of the pivotal moments for her brand was when she rushed across the country when an opportunity came up to have media personality Caitlin Jenner try her shoes.

“Caitlin said, “Oh my gosh, I feel like Cinderella” she describes. “Everyone in the room was crying.” Once Laura posted the video of their meeting online, she was approached by a friend who was a writer for a national newspaper. He covered the story, and the shoe brand, the following day.

Coverage on this scale is almost unthinkable for small brands first starting out, except through the power of PR and taking advantage of opportunities when they arise.

Social media and email marketing are essential for organic growth

Laura also leveraged the power of organic social media growth to connect with women who loved her shoes.

“Until I hit the three year mark, I never spent a single penny on marketing of any kind” she explains. “I have done it all through organic social media. I used Facebook and Instagram to grow my email list and my business”.

This combination of organic social media engagement with email marketing is a powerful one.

“With paid social costs rising, we’re continuing to see a big shift of people putting even more emphasis on owned marketing – which includes email. What is great about email is that it doesn’t take much time to set up, and you start seeing results right away,” points out Ed Hallen, co-founder and chief product officer of Klaviyo, a a marketing automation company.

“The big thing for me, and the reason I grew so quickly, early on, is that I was social on social media. That is one of the biggest tips that I can give to anyone who wants to do the same,” advises Jayne Lasley, founder and creative director of Fairlie Curved, a fashion brand offering fuller-bust & curve-friendly clothing.

“When I first started to do the research for the business, I would go on to other accounts serving the fuller-bust community. I would see what the customers were saying, what they were asking for, what sizes they were looking at. I would reply to comments, because I was looking for the same things. Then that person would look on my page and see that my fashion brand looked interesting and follow me. So simple.”

Community is the key to grow sales on a budget

One thing that all four of the founders agree on is the importance of community and having a deep understanding of your ideal customer.

Laura describes how pre-launch she was “drinking prosecco for two hours” with a group of women with the same size feet as her and learning exactly what they wanted from a footwear brand.

This dedication to understanding exactly what they wanted led to the creation of a group of dedicated customers who knew that Laura was listening.

“It’s also about improving that relationship with your customer. Because my customer knows that I am open to feedback, they feel like they’re informing the brand’s future, and feel like a big part of that.”

Jayne has an equally dedicated customer base who talk to each other in a private Facebook group which is a “safe space” for them to connect and learn from each other.

She loves to spoil her customers and does so on a regular basis. “For Valentine’s Day, I randomly selected twenty of my top customers and sent them a gift with a note to wish them a fabulous day. I love to be able to show my appreciation.”

“Connection is key,” agrees Rebecca. “The question we always ask ourselves is how we can best serve this wonderful community who shop with us online or in the boutique.”

As costs of paid acquisition continue to increase, and with consumers wanting more than ever to buy from businesses that share their values, this is the question all small businesses wanting to grow organically should be asking themselves again and again.

Strands for Trans, the global network of more than 7,500 trans-affirming barber shops and hair salons in the U.S. has collaborated with Phluid City and independent ad agency Terri & Sandy to commemorate International Trans Day of Visibility 2023 with “Gender Euphoria,” a virtual reality festival celebrating transgender rights.

The event will also mark the launch of Strands for Trans as an official 501 (c)(3). As a non-profit organization, Stands for Trans will be a source of education and support to salons, as well as any business looking to provide a safe and positive experience to members of the trans community.

Featuring performances by Billy Porter, Chella Man and Lina Bradford, an exclusive avatar collection from The Phluid Project with a psychedelic-inspired trans flag, and opportunities to engage with an eclectic range of educators, artists, performers and influencers, the signature event will help raise funds for the movement to provide safe and affirming beauty experiences for the global trans community.

“We’re hosting this event because the trans community needs to feel uplifted,” said JP Gomez and Xavier Cruz, cofounders of Strands for Trans. “We can’t stop thinking about those trans individuals who live in places like Tennessee, Florida, and countries where they fear for their lives. We hope this event will bring some light to these dark times.”

The Phluid Project, which began as a retail space, has evolved to encompass a large wholesale collection, and is involved in educational programming and corporate outreach, among other things. The goal of Phluid City is to be year-round and offering programming that’s more life-lesson and more personal. The first, event, Gender Euphoria, takes place today.

“Basically, when people enter the space, they’re going to be greeted by someone from Phluid and someone from Strands for Trans,” said Rob Garrett Smith, Phluid founder and CEO. “They get this experience of 45 minutes of performances and then it’s education and conversation. At the end, they go into a room and get to meet people and talk about what they experienced.

“It’s the first step in the evolution of where [Phluid] is going,” Smith added. “It’s really well-programmed and everyone has their face on their avatar. You’ll be able to see your face. You just join [the conversation] from your computer screen. All you need is an email address.”

Smith said the timing of Gender Euphoria is exciting because it leads into Pride, a day-long affirmation and getting corporations excited about the possibility of doing something with the transgender community.

“Yes, Pride is important, but it’s also important to show up throughout the year,” Smith said. “The idea is that Phluid City will be open during key times throughout the year. It’s all about community. There will be product for sale, but it’s leading with community. That’s the future of this new space, creating community to counter homophobia and transphobia.

“I’m working for a place where queer people can come and their colleagues can come and their family members, and each show up for each other,” Smith added. “Every activation will be different and sponsorships will be different.”

Smith is planning to launch a Phluid better collection consisting of apparel, accessories, undergarments and swimwear.

“Phluid is going to be in about 7,000 to 10,000 stores this year across the country, mostly the PH by The Phluid Project label,” Smith said of the gender-free collection of clothing, accessories and beauty products. “It’s in the U.S., Canada and Australia, and launching in Europe this year. It gives me a chance to connect with the community without the overhead of operating a store. It’s creating a space for people to come together. It’s pretty exciting.”

The Swiss luxury watch industry is generally a conservative affair. Enter Philipp Plein. Following the launch of his fashion watches with license partner Timex Group last year, the arch disruptor unveiled his first collection of Swiss-made luxury timepieces at an offsite location during Geneva’s Watches and Wonder trade show.

Said watches were delivered by a tuxedo clad parachutist who jumped James Bond style out of a helicopter and landed on a raft in the middle of Lake Geneva before making his way to the duplex penthouse suite at the city’s Fairmont Hotel Hotel for the launch event where entertainment involved a private performance by 80’s musician Bonnie Tyler.

“Every time we enter a market we use the same formula — we are disruptive, loud and aggressive in design, language and the way we approach the client,” said Plein during an interview.

Hand finished in Lugano, Switzerland, where the group has its headquarters, the Crypto King and Queen collection for men and women features resolutely chunky (”we German’s say if it’s heavy it’s valuable,” Plein quipped) double layer transparent dial and case-back with brand signature skull, double dome sapphire crystal with anti-reflective coating. Colorways range from red and black to a ‘cryptonite’ lime green.

Plein joins Gucci — most recent major fashion house to have successfully entered the luxury watchmaking sector. The Kering owned brand launched its high watchmaking division in 2021 concepted by former creative director Alessandro Michele.

Latest Gucci outing, also shown offsite during Watches and Wonders, is inspired by the golden age of space travel. Five signature collections feature tourbillons, moon phase movements and a new perpetual calendar which embody both high watchmaking expertise and Gucci house codes.

Gucci’s kaleidoscopic G-Timeless Planetarium takes its name from the Orion Nebula NGC 1976 while the G-Timeless Dancing Bees collection celebrates the archival insect motif that first appeared during the 1970s.

“You have to be bold as a fashion brand to enter the luxury watch market,” Plein acknowledged. “We are not here to compete with Richard Mille or Rolex. They have so much tradition and brand equity. People buy them as an investment. That’s not us.” Rather, he’s banking on a combination of product and price to address a market niche.

It’s the philosophy on which he’s built his brand. “When I started out in fashion 25 years ago I had no brand equity, all I had was product,” he said. “But I knew no one would buy a black cashmere sweater from an unknown brand. They’d rather go to Loro Piana.” However he realized that by adding Swarovski crystal he could sell said sweaters for more than Loro Piana.

“It might be to a niche 1% of the market but there’s a market and a client who is willing to spend more on something they can’t get anywhere else.”

“We have a very interesting sophisticated product with a complicated Swiss movement which gives you good value for money,” he said, citing the brand’s signature maximalist approach to design alongside an entry level price of around $3000 — sitting between comparable categories at Tag Heuer and Rolex. (Most expensive rose gold model comes in at just
just
under $20,000).

“It conveys a sense of innovation rather than tradition,” added retail advisor Carmine Rotondaro.

The Philipp Plein Crypto King watches will be sold with complimentary, limited edition nonfungible tokens (NFTs) by digital artist Antoni Tudisco. They come presented in boxes with rechargeable screens playing said artwork. The NFTs themselves can minted via an enclosed QR code engraved on a metal plaque.

“We earned a certain credibility in the Web3 community as one of first luxury brands to accept crypto,” says Plein.

The brand which has been accepting cryptocurrency as a payment option since 2021, launched a Web3 concept store in London in 2022. It has also sold limited edition sneakers linked to NFTs.

Over the last 12 months, H. Moser & Cie, Tag Heuer, Bulgari and Jacob & Co have also launched luxury timepieces with NFT or Web3 dimensions.

Gucci likewise is a forerunner when it comes to Web3 and the metaverse. It auctioned an NFT film of its Aria collection at Christies in 2021, teamed up with Bored Ape Yacht Club on PFP projects and was the first major fashion house to acquire land in The Sandbox Game which which it partnered in October for a two-week pop-up event.

Most recent partnership is with Yuga Labs, the Web3 group which might be compared to Gucci parent Kering, comprising digital native brands such as Bored Ape Yacht Club, CryptoPunks, Meets and 10KFT. The multi-year strategic partnership announced Monday, debuted with an activation in Yuga’s gamified universe, Otherside.

According to a statement from Gucci, the aim is “extending the dialogue between fashion and entertainment in the metaverse,” and “pushing the boundaries of what’s possible in both physical and digital spaces to create entirely new experiences for their communities through creative story telling.”

After disposing of its beer and cider business, Kent-based Chapel Down delivered healthy results for the year to December 2022 as a purely wine-focused company. Revenue rose by 10% over the 12 months but accelerated in the second half to 14%, providing extra momentum moving into the current financial year.

The record result of £15.6 million ($19.4 million) was led by sparkling wine with a 70% share by value. The winery makes it fizz using the ‘Méthode Traditionnelle’ as used by Champagne region producers in France, helping to enhance its image.

Profitability has been a focus for CEO Andrew Carter and, given Chapel Down’s brand awareness and a 33% share of the English off-trade wine market (according to Nielsen), he has pushed the premiumisation of the brand. This has paid off with an increase of 51% in operating profit to £1.7 million ($2.1 million), though price increases have played their part.

In a statement, Carter said: “Our average selling prices to customers grew by 19% in the year. This was driven in part by prices increasing to help offset inflationary cost pressures, but more significantly by a changing mix of sales as we focus on the sale of higher-priced traditional method sparkling wines. Consumers are looking for premium drinks brands that are exciting, fresh and have real provenance. ”

A limited supply of Champagne stocks due to reduced yields in recent years, has given high-end sparkling wine a route into this end of the market, and other English producers, like Gusbourne, Langham, and Ridgeview, have also been taking advantage.

Following Chapel Down’s carve-out of the Curious Drinks Brewery in April 2021—bought by Risk Capital Partners—the company has capitalized on the continuing interest in English wine, and sparkling in particular. In 2022, traditional method sparkling wine sales rocketed by 53% to £9.6 million ($11.8 million)—versus an already strong 2021—to reach a record volume of almost 800,000 bottles sold.

Chapel Down chairman Martin Glenn said: “English wine is on a high. Building our wine business and brand has taken time and considerable investment over the years. After 20 years of building, we believe we are in a very good position to further accelerate growth.”

Raising its profile as well as a glass

Chapel Down has long been a sponsor of the Oxford-Cambridge men’s and women’s boat races (which took place last weekend) on the River Thames, and in 2022 the company also became the official sparkling wine of the England and Wales Cricket Board (ECB). This tie-up gives the brand significant television exposure and access to a new, more international consumer audience. And for the Coronation of King Charles III, the company has created a limited edition vintage sparkling wine.

The export business is also part of Chapel Down’s premiumization push. It remain small at £456,000 but grew by over 160% last year and is earmarked for future long-term expansion. Wines are now exported to 14 markets, with an eye on the largest sparkling wine export hubs like the USA and Scandinavia, as well as developing the global travel retail airport channel which will become an international shop-window for the brand.

“We focus on traditional method sparkling wine almost exclusively in the export channel and this accounted for 96% of all exports by revenue,” said Carter, who added: “In 2023, we will continue to invest in premiumizing and growing the Chapel Down brand and range.”

Further along, Chapel Down has plans to double the size of its business by 2026 by taking advantage of the English wine industry’s popularity, which shows no sign of abating.

The term “experiential retail” has been much discussed of late. Frankly, it’s not new. Nike opened its first Niketown store in Portland, Oregon in November 1991, and American Girl debuted its first American Girl Place in Chicago in 1998. Both are packed with unique experiences that engage and involve customers in brand culture and storytelling.

The secret sauce behind both breakthrough concepts was deconstructed in the seminal 1999 book The Experience Economy. Authors B. Joseph Pine and James H. Gilmore schooled us in the four stages of the “progression of economic value” from commodities to experiences that lie at the core of both of these retail concepts.

In today’s post-pandemic era, retailers and shopping center owners alike are actively seeking to reengage with their consumers. And, in the era of unified commerce (aka omnichannel, blended retail, or phygital retail, take-your-pick) retailers and brands must up the ante to get us off our couches and into their stores or malls.

This has led to a new level of “immersive experiences” being installed within or adjacent to major retail venues. Most support product brand positioning and sales, but some do not. The latter, sales-free venues, are considered destinations in and of themselves. They are dedicated to a higher level of immersive engagement that brings added dimension to a retail venue while extending the visitor’s stay.

Wink and Nod to MOA

Two world class, mind bending examples, will soon debut at Bloomington, Minnesota’s Mall of America. The first, “Wink World,” is billed as an immersive art exhibit, where “psychedelic art house meets carnival funhouse.” Its founder, Chris Wink launched the concept at Las Vegas’s Area 15 in 2021, and it has been drawing 100,000 attendees annually. Wink is one of three co-founders and the Chief Creative Officer of Blue Man Group, so he is no stranger to designing memorable experiences.

MOA’s Wink World will feature seven unique rooms that each showcase a different combination of light, color, sound, technology, and motion. Those sensory descriptors are more fully illustrated on the @winkworldofficial Instagram site. The website also describes its creator as an innovative experience designer, a music composer, and purveyor of high-impact multimedia entertainment. Think Cirque du Soleil meets George Lucas, with a little Ringling Brothers thrown in for good measure.

When referencing the new MOA collaboration Wink stated, “We are so excited about joining the legendary Mall of America family. They were the first to get it right, by creating super fun reasons for people to visit besides just shopping opportunities.” Agreed!

Staging Amazing Retail

Wink’s “getting it right” comment goes to the core of what has made Mall of America so unique since its 1992 opening. MOA is much more than big. Beyond the 500 stores and an endless list of great eateries and services the mall is known for its themed experiences that have helped make it an international destination for 40 million annual visitors.

Its “experiential anchor” is the seven-acre indoor Nickelodeon Universe theme park. It is complemented by the Crayola Experience, M&M’s, FlyOver America flight simulator and the Sea Life Aquarium, among many other flagship destinations.

According to Wink, the MOA Wink World version will one-up their Las Vegas venue by adding an additional exhibit room and a new lobby installation. Fees for the experience have not yet been posted. However, the Las Vegas website reveals that tickets for adults (13+) are $22.00, while children, seniors, and military are $18.00. Add-ons include special 3D glasses and 3D art classes.

In addition to Wink World, MOA is also putting the finishing touches on another destination experience. The Museum of Illusions, a 6,600-square-foot museum featuring over 70 “mind-bending “exhibits with interactive components will also debut this summer. The Museum of Illusions was launched in Zagreb, Croatia in 2015, and is now part of an international group of over 30 installations around the globe. Ten are currently operating in the U.S., and many more will soon open.

MOA has always been a risk-taker and rule-breaker when it comes to capturing the public’s imagination and driving foot traffic. Expect an explosion of Instagram and TikTok posts once these two venues launch.

Livestream retail is the next evolutionary step of TV shopping. It takes the one-way video presentation of products to buy and engages shoppers interactively by allowing two-way communication with the host and the ability of shoppers to buy from the screen.

And while TV shopping has some of that – shoppers can dial in to chat with hosts by telephone – livestream shopping offers an added level of interactive engagement by not being scripted or strictly programmed like an hour on QVC or HSN.

In livestream, the host can put down one product and pick up another if that is where their audience wants to go.

Still in its infancy, the livestream market has enjoyed a pandemic bump, expected to reach $31.7 billion by the end of the year and nearly tripling in size from 2021. And it is projected to grow to $67.8 billion by 2026, according to Coresight Research and Bambuser.

With growth like that, retailers like Amazon, Walmart, Nordstrom, Gucci, Estee Lauder and more have dabbled in it, trying to find the best business model. Bloomingdale’s Outlet thinks it found it with the ShopShops mobile app.

Following a successful test during the holiday 2022 season, Bloomingdale’s Outlet signed on for another ten-week run through May 2023 with a ShopShops’ influencer/host visiting different stores for evening shows and its flagship Upper West flagship Side store hosting a series of daytime shows.

During each show, the host hand-selects products to feature, almost like shopping with a personal shopper or, even better, your best friend. Once they find something they like and want to feature, they upload it to the app, where shoppers can click a button to buy.

Rachel Saar, Bloomingdale’s Outlet vice president responsible for marketing and merchandising, shared livestream broadcasts have enabled it to reach shoppers that would never show up at a store. Plus, it delivers a highly engaged audience because the hosts already have trusting followers through their influencer platforms.

“These customers are already following the influencers throughout the week and are very knowledgeable about products and fashion,”she said.

“We’ve been able to build a highly engaged community around Bloomingdale’s Outlet. Right now we have 150,000 followers in the ShopShops app. We haven’t been able to build an audience this fast on any other social platform,” she added.

Unlike TV shopping, where the hosts have plenty of stock in the warehouse, the ShopShops host may only have a single item on offer, adding that treasure hunt excitement of outlet shopping or sample sales.

“It can be very competitive. It recreates that excitement of off-price shopping where you have to buy it now because it won’t be there tomorrow,” she said, adding that in a recent show, an in-store customer beat the streaming shoppers to the punch and bought the showcased item out from under them.

And the host’s presentation of products can be viewer directed so the shoppers can guide the host, not the other way around as in TV shopping.

“Last week, the host was focused on a handbag presentation, but people started commenting on the sunglasses they could see behind him. So he shifted to spending 30 minutes on sunglasses instead,” she said.

Unlike television shopping with its high-production values, the ShopShops shows have an amateur look and feel, but that is part of its charm. Nobody puts the hard sell on. The host chats up what attracted them to the product and why the audience should care and might want to buy.

Demonstrating the level of engagement and customer loyalty, ShopShops reports the repurchase rate is 50% within 30 days and customers engage an average of seven times a month.

Expanding the Bloomingdale’s Outlet reach beyond its 20 stores is the big win its found in livestream. Saar observed that during a two-hour show from the Bergen Town Center in Paramus, NJ, it racked up two times more eyes on the screen than visited the store the entire day.

And she added that having the ShopShops influencer/host in the store made it more exciting for in-store shoppers too, rather than distracting them.

“It’s been exciting expanding our reach. We don’t have an e-commerce presence, which is not unusual in off-price fashion, so being able to ship outside our local trading areas, even shipping worldwide, is a huge win for us,” she concluded.

OBSERVATIONS FROM THE FINTECH SNARK TANK

Apple launched its “buy now, pay later” (BNPL) service in the US to compete for the more than $100 billion in purchases Americans making using this payment method.

The service, named Apple Pay Later, will allow users to split purchases into four payments spread over six weeks with no interest or fees. Initially offered to select users, Apple plans a full roll-out in the next few months.

Apple Pay Later will be enabled through the Mastercard Installments program, with Goldman Sachs as the issuer of the Mastercard payment credential.

Apple Pay Later Is a Win-Win-Win

Providing consumers with an ability to make purchases they might not have afforded otherwise—and doing so, potentially, with no fees or interest payments—is a definite win for consumers.

Helping to enable sales that might not have happened otherwise is, likewise, a win for the merchants.

Apple has about 50 million Apple Pay users and 6.5 million Apple Card holders. Driving buy now, pay later purchases with Apple Pay users will help Apple identify potential Apple Card converts to grow that business.

And as Apple Pay Later volume grows, it gives Apple hooks into a growing number of merchants to grow their Apple Card ecosystem.

Buy Now, Pay Later Changes the Customer Experience

Observers on social media and blogosphere often claim that “BNPL is here to stay.”

That’s an odd perspective because BNPL—sometimes referred to as installment payments or point-of-sale financing (POSF)—has been around longer than some of the observers.

What’s different—and important—about today’s buy now, pay later service is its place in the customer journey.

Traditionally, installment payments, POSF, BNPL—whatever you call it—was an option at checkout (i.e, the end of the customer journey). Today, BNPL influences consumers’ choices of products and providers (i.e., earlier in the journey).

Why Apple is Launching Apple Pay Later

Apple is—at its core—a products company. Its DNA is (very) well-designed hardware. Its software and services businesses may be huge, but they’re there to serve the hardware business.

Apple Pay Later is just a small part of Apple’s overall strategy to sell more hardware.

Apple’s penetration and control in the consumer market is incredibly strong, but until recently, it’s had little presence on the merchant side. Apple realizes that it needs to pursue a platform business model to protect and grow its market position.

Its recently announced “Breakout” initiative is all about addressing weaknesses in its merchant-facing proposition. And Apple has some payments shortcomings that is accelerating initiative:

• Apple Pay usage lags. According to a Q1 2022 study from Cornerstone Advisors, roughly half (52%) of consumers with a smartphone and a checking account make mobile person-to-person (P2P) payments. Three-quarters of those consumers use PayPal, 43% use CashApp, and just 26% use Apple Pay.
• Apple Card growth slowed down. After seeing a doubling of Apple Card holders in 2020, growth in 2021 slowed to a crawl. Cornerstone found that the number of consumers with an Apple Card grew from 6.4 million at the beginning of 2021 to just 6.7 million at the start of 2022.

So Apple has some payments adoption and utilization issues it has to deal with. What can it do to address those challenges?

A buy now, pay later service is one step.

Splitting purchases into four payments may—and should—drive more iPhone users to adopt and/or use Apple Pay more frequently.

And as they use Apple Pay Later more frequently, qualified Apple Pay Later users become good candidates for a broader line of credit which they can get from an Apple Card.

Poor Goldman Sachs?

A Financial Times article titled Apple sidelines Goldman Sachs and goes in-house for lending service asserted:

“Apple is making its biggest move into finance by offering loans directly to consumers for its new buy now, pay later product, taking on a role played in its other lending services by banking partners such as Goldman Sachs.”

The article went on to say:

“Big Tech’s move into the core banking business has been long feared on Wall Street. In the past, Apple has worked with Goldman to issue a credit card in the US, as well as with banks such as Barclays in the UK to offer financing for purchases of its own devices. However, those banks’ roles are diminished in its latest financial product.”

True statements, all of them.

But don’t cry for Goldman Sachs. The Wall Street giant will be one of the biggest beneficiaries of Apple’s BNPL service.

Apple Pay Later doesn’t cannibalize the Apple Card and “sideline” Goldman Sachs—it’s a stepping stone to a credit card relationship that benefits both Apple and Goldman Sachs.

Is This a Death Blow to Affirm and Klarna?

Not surprisingly, news of the Apple Pay Later launch sent BNPL providers’ stock prices down. But don’t count out BNPL competitors like Affirm, Klarna, and PayPal out just yet.

Apple, of course, has a huge installed user base to draw on, but competition in the BNPL space is also about eCommerce enablement—helping merchants drive sales.

In the past year, Klarna has launched eCommerce enablement tools for:

• Commerce search. Klarna’s search engine compares thousands of websites to help consumers find the best price for products. Its unbiased search tool gives users the ability to filter their search across stores by color, size, features, customer ratings, store availability and shipping options. At check-out, the panel automatically looks for and applies available coupons.
• Shoppable video. With Klarna’s shoppable video, retailers share existing social content and campaigns that tell their story, create shoppable content exclusively for Klarna that inspires and converts, and partner with Klarna to be featured in curated content and campaigns.
• Creators and influencers. Klarna’s Creator Platform provides a one-stop shop for retailers and creators to work together to automate initial outreach, partnerships, and tracking sales and commissions.

To succeed and differentiate, BNPL providers need to:

• Become shopping destinations. Afterpay, for example, announced that it will enable its merchant partners to advertise on the BNPL firm’s app to boost their promotions, products, and offers. Brands will be able to choose the products they want to promote via sponsored listing formats, and pay only when a shopper engages with the ad.
• Sharpen their sales attribution claims. BNPL providers claim that they help merchants make sales that wouldn’t have been made otherwise. Sound familiar? Visa and MasterCard made the same claims about credit cards they were launched. Today’s merchants will demand accurate attribution statistics.
• Specialize. BNPL providers will need to be masters of the customer journey. Few (if any) will be able to do that in more than just a couple of product categories resulting in specialization by product category. This is already happening with BNPL specialists like LoanStar Technologies in home improvement and Prima Health Credit in elective medical procedures.

Apple will do well with consumer adoption of its buy now, pay later offering. And it’s building the tools and capabilities to deliver on the eCommerce enablement side of the coin. But the BNPL race has a lot more laps to go.