Morning Brew - ☕ Hair-raising

We talked to Francesca Raminella, CEO of Goody’s parent company.
April 07, 2023

Retail Brew

Happy Friday! Have dinner plans this weekend? Well, you might want to reconsider since SpaghettiOs has just introduced a spicy version of its beloved canned spaghetti in partnership with Frank’s RedHot. But not to worry if you’re not the biggest fan of spice: The product comes with a “mild to medium” heat level. Either way, report back if you give it a shot!

In today’s edition:

—Erin Cabrey, Jeena Sharma

BEAUTY

Taking hair of business

Goody Tru hair accessories line Goody

Goody has been getting in consumers’ hair (literally) for over 100 years.

Founded in 1907 as H. Goodman & Son, an ornamental comb business, it’s blossomed into the country’s No. 2 hair accessories brand, selling products like brushes, clips, and its signature Ouchless Elastics at retailers including Walmart, Target, and CVS.

The brand just released its largest ever collection, a Walmart-exclusive 60-piece line called Goody Tru, collaborating with three multicultural women artists—Reyna Noriega, Hola Lou, and sister trio Let It Happen—to create products from satin bonnets to hair charms.

  • The line saw a 70% unit sell-through rate at the end of February, making up 66% of the top 25 hair accessory fashion items at the retailer.

Retail Brew chatted with Francesca Raminella, CEO of Goody’s parent company, Beauty by Imagination (BBI), which also owns brands like Wet Brush and Ouidad, to discuss the century-old brand’s approach to innovation.

This interview has been lightly edited for length and clarity.

What was the inspiration behind the Goody Tru line? It all started in the Covid days. We really wanted to find something that could be inspiring. And the inspiration came from doing something that was not traditional. So most brands these days, they partner with a celebrity, with an influencer, maybe with a designer of a brand that’s already famous. We found these female artists who had a lot of energy, had a lot to say, multicultural, [and] very relevant to the customer that we wanted to talk to, which basically was our current Goody customers plus some new ones that we wanted to attract.

Keep reading here.—EC

        

FROM THE CREW

Sweetgreen’s locally grown insights

The Crew

If you’ve ever worked in the office when lunchtime rolls around, you’ve probably seen the herds of people headed to grab a bowl from Sweetgreen.

The chain of salad counters is known for its organically sourced ingredients and partnerships with local chefs and farms. But as the company rapidly expands, it faces the issue of remaining true to its values of sustainability and connecting to its surrounding communities.

Marketing Brew sat down with the salad giant’s Chief Brand Officer Nathaniel Ru to find out how they focus their growth strategy on a few organic ingredients and how they maintain their relationship with food and people. Check out the conversation.

FASHION

Store-bot

A Levi’s AI model. Levi’s

You know how when consumers speak of increasing diversity and representation in fashion what they really mean is brands just using more AI models of color? Yeah, maybe not, but Levi Strauss & Co. might not have gotten the memo; it announced a partnership with AI studio Lalaland.ai last week.

Through its partnership, the company said it would be using Lalaland.ai’s advanced AI tech to generate a wide range of models that represent people of different body types, skin colors, and ages.

“This AI technology can potentially assist us by supplementing models and unlocking a future where we can enable customers to see our products on more models that look like themselves, creating a more personal and inclusive shopping experience,” the brand said in a statement.

While AI’s potential in fashion seems manifold and unexplored in many ways, Levi’s plan to “supplement” models of various backgrounds and body types is unlikely to be one of those ways. Not only does it hamper the relatively limited opportunities for real-life models of color and plus-sized models to get hired, but it also seems like the perfect recipe to ignite consumer backlash.

And, in Levi’s case, it did.

Days after the announcement of the partnership, social media was flooded with posts criticizing the move. "Your diversity doesn’t count if you’re not diversifying who’s on the payroll," one Twitter user wrote.

Many others expressed similar sentiments, with some even claiming they wouldn’t buy from the brand again.

Final word: Levi’s has since issued a statement claiming it doesn’t plan on scaling back on live photoshoots, using real-life models, or its “commitment to working with diverse models.”

Keep reading here.—JS

        

SUPPLY CHAIN

Chain reaction

Two AI-powered robotic arms sort produce onto conveyer belts at a Covariant lab. Covariant

If March comes in like a lion and goes out like a lamb, how does April come in? It doesn’t really matter, because April means something else entirely for us: resale. That’s our monthly theme, and Andrew Adam Newman got us started this week with his look at resale’s holdouts.

We’ll have much more throughout the month on how ever more retailers are jumping into resale to keep customers in their ecosystem, but before we get too far into it, we’re taking a look back at March, when we went deep on supply chains.

No chain, no gain: Katishi Maake spoke with Rothy’s chief supply chain officer, Heather Howard, about the company’s vertically integrated manufacturing process and commitment to circularity.

Orderly fashion: Jeena Sharma delved into the critical importance of a smoothly functioning supply chain when it comes to pulling off a successful Fashion Week.

Same chip, different day: You’d think credit card chip shortages would keep retail execs up at night, but you’d be (mostly) wrong, as Andrew Adam Newman reports.

Supply and try again: Whatever happened to all those “supply chain issues” we were hearing so much about for so long? Erin Cabrey tracked some of them down.

  • Supply chain issues: Where are they now?

Working machines: “Combined with an e-commerce boom, a supply chain still recovering from the pandemic, and an increasingly tight labor market, [AI-powered automation] is transforming the way retail work works,” writes Maeve Allsup in her look at how the tech is affecting jobs.

        

SWAPPING SKUS

Today’s top retail reads.

A long run: How Hokas broke through the noise to become one of the fastest growing and most popular sneaker brands for runners and hikers. (the New York Times)

Final destination: American railways and truckers have been longtime competitors, but post-pandemic, both sectors are seeing a slowdown, leaving some wondering if their futures will diverge. (The Economist)

A pretty penny: L’Oréal’s acquisition of beloved skincare brand Aēsop came as a surprise, mostly because it paid a whopping $2.5 billion. Here’s why. (Business of Fashion)

WHAT ELSE IS BREWING

  • The US added 236,000 jobs in March indicating a slowdown in hiring.
  • Sweetgreen has changed the name of a chipotle-flavored salad bowl after Chipotle filed a lawsuit claiming trademark infringement; the suit has since been dropped.
  • Starbucks customers have expressed concerns on social media about the chain’s olive oil-infused drinks.
  • Galeries Lafayette will introduce 10 new outposts  in China by 2025.

FRIEND OR FAUX?

Three of the stories below are real...and one is most definitely not. Can you spot the fake?

  1. Subway and Cadbury have joined forces to create a Creme Egg sandwich for Easter that will be available across the UK.
  2. Chipotle is getting complaints from longtime and loyal customers for making its salsa too spicy.
  3. Japanese authorities have arrested two men for “sushi terrorism” after they performed a food-related prank at a restaurant and posted it online.
  4. Sweetgreen has introduced a “Finance Bro Salad” across its Murray Hill and Wall Street locations that comes with extra protein and a special “secret” dressing.

Keep reading for the answer.

FRIEND OR FAUX? ANSWER

Sorry, we know you were about to line up to get a bowl of that salad, but sadly, there’s no such thing…Maybe this will give them a nudge?

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Written by Erin Cabrey and Jeena Sharma

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