Deadlineous Extensionium! We cast a deadline extension spell, so you still have time to nominate your retail wiz(ard) for this year’s Retail Brew Go-Getter award. You have until Monday, July 11 to submit entries.
In today’s edition:
—Erin Cabrey, Glenda Toma, Jeena Sharma
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Francis Scialabba
We’ve all seen those “Made in USA” stamps on products from Wilson footballs to Igloo coolers, but it takes a lot to be able to make that kind of claim.
It’s not easy—or cheap—to manufacture products in America, but as US companies face supply-chain tumult, many are evaluating how to bring their manufacturing home. It has some benefits, among them agility to adjust to market trends and more quickly flex supply, and essentially “shrinking the supply chain” with shorter shipping distances, explained Kamala Raman, VP of logistics and supply-chain network design at Gartner.
“Having more control is a big theme that we’re seeing for why people are trying to make more products in the US,” she told Retail Brew.
As more companies look to move some or all manufacturing stateside, what consumer-facing labels or statements can they make about being American-made? When it comes to these claims, the Federal Trade Commission (FTC) is in control.
While there are statutes requiring automobiles and textile, wool, and fur products to disclose if they contain US or foreign materials, there’s no federal law that states other consumer products—like cosmetics or electronics—have to. These other goods don’t need pre-approval to use “Made in USA” claims.
- If they choose to, they have to play by the FTC’s rules—and that applies to any labeling, advertising, or IRL or online promos making express claims of American origin. (Beyond “Made in USA,” this regulation also encompasses terms like “American-made,” or in certain contexts, the use of symbols like the US flag or map.)
Ground rules
There are two types of claims companies make: unqualified and qualified. An unqualified claim is, quite simply, a claim with no qualifier, like when a product is labeled with the classic “Made in USA.” Those products must be “all or virtually all” made in the United States—with final assembly or processing occurring stateside.
So what is virtually all? There’s no set percentage, so it’s case-by-case, per the FTC. Essentially, all “significant” parts of the product must be from the US, with “no—or negligible” foreign content; the FTC considers how much of the manufacturing costs can be attributed to foreign materials, and how far removed from the final product they are.
- For example: If a lamp is made from American-made brass and lampshade, but has an imported base, a “Made in USA” claim would be misleading because the base is a pretty big chunk of the overall product, the FTC says.
Then there are qualified claims, claims that—you guessed it—have qualifiers. Click here to keep reading.—EC
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Uh, yeah. Well, guess how much customer lifetime value (LTV) can jump when you offer both subscriptions and one-time purchases? A whopping 230%.
Yep, subscriptions are that valuable. And utilizing a premium subscription-management solution like Recharge can take the guesswork out of subscriptions, helping you expand LTV and deliver greater value for your customers—and your e-commerce biz.
In case you need a refresher, LTV is a key metric that measures the health of your e-commerce brand by calculating the $$$ amount your average shopper brings in throughout their customer lifespan.
So, how much more value could you add for your business with a subscription program? Recharge’s LTV calculator helps give you a sense of the impact.
Curious? Give Recharge’s LTV calculator a whirl for free, here.
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Timberland
This month, Retail Brew is focusing on sustainability. And in the spirit of the topic, we decided to recycle some of our must-reads on all things green.
Questions: We spoke with James Reinhart, the co-founder and CEO of ThredUp, about resale’s big picture, like his theory about how today’s market is like a Prius and the environmental benefits of used clothing.
And more answers: For our first non-virtual The Checkout Forum, we sat down with Liz Hershfield to learn how she’s pioneering sustainability at Madewell and J.Crew. She also gave us a quick lesson on the evolution of “head of sustainability” as a title, along with how she came into it:
Outside of some real leaders in the industry, it was in the past 10 years that it’s really become a thing. I have been in the retail and fashion industry for my entire career—over 27 years, which will age myself. And about seven years ago, I started getting immersed in it and just really learning and understanding what the impact was that we were having as we’re producing clothes and just became really passionate about doing that in a responsible way.
Ready, (in)set, go: Many companies have historically favored offsets to cut carbon emissions. But lately, an alternative is more in fashion (and other businesses): carbon insetting. We dug into the ins and outs of how two companies are doing it—and why offsets have come under scrutiny.
Break it down: Beauty company Korres opened a new store in NYC with a recycling lab to give empties a second chance. We saw the process in action.
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It’s actually part of a larger trend in store design. Increasingly, stores aren’t just for displaying products; they’re also for displaying values. Another case in point: the Timberland flagship in London, which highlights its sustainability efforts.
And sticking with recycling, Harper Wilde shared the lessons it learned from building its bra-recycling program.
+1: ICYMI ahead of the long holiday weekend: Four experts chatted with us about what excites them about the evolution of sustainable materials.—GT
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On Wednesdays, we wear pink spotlight Retail Brew’s readers. Want to be featured in an upcoming edition? Click here to introduce yourself.
Tiffany Hamilton is the CEO of Victor Wear, an apparel brand she co-founded last October with her autistic teenage son, Isaiah, who is at the heart of the company. Given the realities that people with disabilities face in America—and all the systemic inequities that come with it—Victor Wear designs t-shirts that raise awareness about autism. It also donates 10% of each purchase to Special Olympics Virginia.
This is Hamilton’s first step into entrepreneurship. Her career has been mostly in content marketing; in fact, she does double duty right now and is a senior content marketing manager at Salesforce.
How would you describe your job to someone who doesn’t work in your field? Being a startup CEO is crazy, exciting, and also crazy overwhelming, especially as a working mother of a busy teenager. I feel like most of my spare time is spent thinking about, planning, or marketing my business.
What’s one thing we can’t guess about your job from your LinkedIn profile? I’d say that many folks aren’t clear on what it means to be a “mompreneur” of an autistic teenager who also helps you run a business. There are so many dynamics in running a business with your child that go deeper than what you see in a title or a media clip. Isaiah is an innate marketer and loves thinking of new ideas for slogans and selling shirts at events. But as a mother, I am teaching him how to be a good, dedicated, and disciplined worker; what it means to be responsible for a business; and what it means to never give up on your dreams—no matter how hard it gets. I am a mother first—and sometimes that makes the business side complicated. My instinct is always to empower and protect him.
One emerging trend that you’re excited about: I think the metaverse is going to open up a whole new world for retailers by helping customers interact with brands in new and creative ways. It’s an opportunity for retailers to really differentiate their brands.
What was the most memorable job you had in high school or college, and why? My first job was most memorable. At 15, I started working at McDonald’s, and that job really taught me about hard work and the expectations of being an employee. It also helped me appreciate what clerks at fast-food restaurants go through. I developed a lot of empathy for restaurant workers. It is really hard work!
What’s the most embarrassing product in your order history from Amazon that you’re actually willing to admit? I once bought Life Savers from Amazon.
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How do DTC brands and legacy retailers evolve and grow in this era of rapid retail transformation? Luckily, the SVP of stores and operations at DSW Designer Shoe Warehouse and the Global CEO of VMLY&R Commerce know a thing or two about that. We're tapping into their insights on July 19th at The Mezzanine in NYC, sponsored by Bolt.
Doors open at 9:30 am ET, and spots are on a first-come, first-served basis. Register here.*
*Note that this event has limited capacity.
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Today’s top retail reads.
Hit the sauce: Pinky Cole, founder of Atlanta-based vegan food chain Slutty Vegan, is expanding her $100 million business to other US cities. But those new storefronts are only the beginning. (Bloomberg)
Clock out: Amazon’s recent move to keep warehouse employees out of company buildings outside working hours may pose yet another challenge for union organizers. (Insider)
High seas: While new shipping legislation isn’t likely to bring down prices on US consumer goods, a recession might. “If we go into a recession, then demand will drop and then that’ll give everybody time to catch up, and even things out more,” said Willy Shih, a management professor at Harvard. (Vox)
Primed for success: Business is boomin’ on Amazon. Elevate your brand’s performance on the platform with key insights and winning strategies for Prime Day + beyond with Feedvisor’s vital trend data, collected from over 1k US brands. Start here.*
*This is sponsored advertising content.
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Amazon struck a deal with Grubhub that includes waiving of delivery fees for US Prime members at some restaurants and the option to acquire a 2% stake in the company.
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Ben & Jerry’s is suing Unilever, its parent company, to stop the sale of its Israeli business.
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Inditex is shutting down e-comm operations in China for its Bershka, Pull&Bear, and Stradivarius labels.
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Subway has redesigned its menu with 12 new sandwich options to “streamline” customization.
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TikTok reportedly scrapped plans to expand live commerce in the US and Europe.
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Morning Brew’s Business Casual podcast, that is. Join journalist Nora Ali as she chats with creators, thinkers, and innovators about today’s biggest and most significant business stories, what they mean, and why you should care. Listen here.
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Catch up on the Retail Brew stories you may have missed.
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Written by
Erin Cabrey, Glenda Toma, and Jeena Sharma
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