Morning Brew - ☕ The perfect fit

American Giant’s quest to manufacture a superior-quality hoodie in the US surprised everyone—even some of the vendors making it.
Morning Brew August 24, 2022

Retail Brew

Listrak

Hello, hello. Should a retailer have a TikTok account? That’s like asking if you, a human, should breathe air. But the real questions are: what should you post, and how can you get that post discovered? Level up your marketing team with the Brew’s Business Analytics Accelerator, where you can learn how data and finance go together like the FYP and whatever the kids are dancing to these days. The next session starts Sept. 6, so don’t miss out on being the person who can anticipate the next meme challenge.

In today’s edition:

—Andrew Adam Newman, Erin Cabrey

MANUFACTURING

They might B2B Giant’s

American Giant founder and CEO Bayard Winthrop stands in a cotton field. American Giant

One day about 10 years ago, Bryan Ashby, president of Carolina Cotton Works, a Gaffney, South Carolina, manufacturer that dyes and finishes fabrics, was on his computer.

“I’d recently hopped on and created myself a Twitter account just to see what this nonsense was about,” Ashby told us.

Being an American manufacturer, he searched for “Made in USA apparel.” And he discovered American Giant, a San Francisco-based DTC brand that was just getting started. American Giant was on a mission to make casual basics like hoodies and t-shirts, entirely in the US, with a priority of quality fabrics and construction over price.

Carolina Cotton Works had helped produce fabric for sweatshirts before, so he gave the company a ring. And it wasn’t long before Bayard Winthrop, founder and CEO of American Giant, flew to South Carolina to meet with the company.

Putting it all on the table: He brought a hoodie, which American Giant, at that early juncture, made from fabric sourced in India; Winthrop hadn’t yet found an American manufacturer who could make it to his specs.

“He put the hoodie on a conference room table and we were like, ‘Wow. This one is a lot different. This is not a sweatshirt that a screen printer is going to buy and sell to a high-school cheerleading team. This is a jacket. This is outerwear,’” Ashby recalled.

The cotton fabric was heavyweight and dense, the yarn fine. The zipper was metal, as were the grommets and the tips of the drawstring. There were reinforcement panels on the shoulders and elbows. And it was garment-washed to minimize shrinkage.

“I was like, ‘Man, I mean, do you understand that this is really expensive?’”

Keep reading here.AAN

        

TOGETHER WITH LISTRAK

E-nail your email campaigns

Listrak

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Achieve long-term digital marketing success with Listrak and snag your free copy of the 2022 Email Trends and Observations Report here.

        

COMMUNITY

Coworking with Matthew Kates

Coworking with Matthew Kates Matthew Kates

On Wednesdays, we wear pink spotlight Retail Brew’s readers. Want to be featured in an upcoming edition? Click here to introduce yourself.

Matthew Kates has been working with retail brands for over 20 years. Along the way, he’s had stints at CPG giants like Kellogg’s and PepsiCo, and built reward programs for Xbox and Coca-Cola. Now, he’s SVP of strategy at Clarus Commerce, which has worked on loyalty programs and promotions for more brands that you might have heard of, like Hershey, Clorox, and Lowe’s.

How would you describe your job to someone who doesn’t work in retail? Clarus Commerce is a leading customer-engagement company specializing in loyalty programs and promotions. We partner with brands and agencies to better engage customers and influence their behavior throughout the customer journey. I specifically oversee the strategic planning, concept development, program design, and analytics of brand platforms—which all contribute to the creation of these loyalty and promotion programs.

One thing we can’t guess about your job from your LinkedIn profile? My job combines data and creativity. I like to think of it as painting by numbers.

What’s your favorite project you’ve worked on? Having the opportunity to be the strategic architect for My Coke Rewards was a once-in-a-lifetime opportunity. The campaign allowed consumers to enter codes found on specially marked packages of Coca-Cola products to earn points, which then could be used to redeem a variety of reward options. The program grew to become the largest CPG loyalty program ever, with over 23 million members, and enabled Coke to create a direct relationship with its consumers.

Which emerging retail trend are you most excited about this year, and why? Everyone is talking about the metaverse right now, but it’s still in its infancy and has a long way to go. For that reason, I’m most excited about social commerce because it’s having a huge impact on customers today and only continues to evolve as TikTok pushes to the forefront of competitors. The average person spends at least two hours a day on social media, and social offers so many innovative ways to engage consumers that directly influence purchase behavior.

What’s your go-to coffee order? Nitro cold brew—so smooth and a really nice hit of caffeine to wake me up in the morning.

Worst piece of advice you’ve received? To have a 20-year plan. While it’s nice to have a career plan, it’s even better to be open to random opportunities that can take your life in a whole new direction.

What was your favorite retail product when you were 15, and what’s your favorite retail product now? At age 15, it had to be the first computer my family owned, an Apple IIC. Its green, monochromatic screen and dot-matrix printer seem incredibly dated now, but at the time, it was amazing. Today, I’d have to say the iPhone. It’s hard to believe that the iPhone is half the cost of my 1980s Apple IIC, and it can do infinitely more.—EC

        

TOGETHER WITH BOLT

Bolt

Give the gift of conversion. Ho-ho-hold up. Holiday shopping already? Yes, Virginia, many consumers begin their seasonal shopping as early as September. And Bolt’s here to help you cut down on online cart abandonment and increase e-commerce conversions with hassle-free shopping. Prep for seasonal success here.

        

SWAPPING SKUS

Today’s top retail reads.

Game, set, match: All eyes will be on tennis fashion when the US Open begins in New York City next week, but tennis apparel—even for the less athletically inclined—is on the rise, inspiring lines from brands like Aerie and Rothy’s. (the Wall Street Journal)

Mystery meat: A bizarre New Jersey deli that was the only asset of a publicly traded company worth $100 million—despite it only bringing in $13,000 in annual sales—has shut down. (Forbes)

Acting up: How the Inflation Reduction Act will impact sustainability in the retail industry. (ModernRetail)

WHAT ELSE IS BREWING

  • Peloton struck a deal with Amazon to sell equipment and apparel through the ecomm giant.
  • Richemont sold a 47.5% stake in online-fashion retailer Yoox Net-a-Porter to Farfetch.
  • Nordstrom slashed its full-year outlook as its Nordstrom Rack business continues to struggle.
  • Urban Outfitters saw a ~$68 million quarterly dip in profits in Q2.
  • The USDA said it’s investing up to $300 million to support farmers’ transition to organic farming.

TOGETHER WITH INSIDER INTELLIGENCE

Consumers are likely to spend more than ever in 2022. Insider Intelligence’s team of analysts share 3 of the biggest trends in the retail industry that every commerce professional should know.

Download the report now

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Written by Andrew Adam Newman and Erin Cabrey

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