2PM - SUN DAY RED

Must Read: According to recent projections, the golf apparel and accessories industry will triple over the next five years with the most substantial growth coming by way of the Middle East and Africa. This year also marks a sea change in the sport with Nike and Tiger Woods parting ways while several others claw for position atop of a red ocean market.

Tiger Woods introduces his new brand: Sun Day Red

DTC Brands / Feature 👆🏾: Mr. Woods is trading in the Nike swoosh he wore for decades for the tiger logo of Sun Day Red, which will be a stand-alone unit within TaylorMade Golf.

Why DTC brands aren't swayed by cheaper social media ads

Advertising / Summary: Despite lower costs to advertise on platforms like Meta, brands are diversifying into traditional and digital channels to maintain growth. DTC strategies now emphasize multichannel engagement, from search engine marketing to in-person events, to connect with consumers more effectively and prepare for a future without cookies, emphasizing direct data collection and broader marketing mixes.

Shopify's merchant solutions revenues up 21%

Payments / Summary: Shopify reported strong growth due to increased Shop Pay usage and merchant base expansion, leading to a 23% rise in GMV to $875.2 billion and a 21% increase in Merchant Solutions revenue. However, investor concerns over guidance on rising operating costs caused an 13.4% stock drop. Shop Pay's success and international merchant growth were highlights, despite a cautious outlook for 2024 with expected low 20% revenue growth and rising expenses related to marketing and staffing. Here was our prediction that Shopify should consider. 

How Zenni Optical boosted revenue 34% with sharper search

DTC Brands / Summary: The company tailored searches to better suit online eyewear shopping, leveraging a proprietary AI for improved result relevance. This digital transformation, including a pilot with U.S.Vision and plans to sell contact lenses and offer digital vision exams, aims to provide a comprehensive, convenient shopping experience for vision care.

Temu is speedrunning American familiarity

eCommerce / Summary: Temu, a fast-growing shopping app, aired $21 million worth of Super Bowl ads. Unlike ads with celebrities or cultural references, Temu's featured off-brand characters and a sorceress, highlighting affordable shopping. The ad, part of a $3 billion media campaign, aims to familiarize American consumers with Temu, challenging dominant retailers like Amazon. 

2PM's previous analysis on the shift in marketplace DTC retail towards a "direct from factory" model, highlighting Chinese eCom companies like Temu, is directly related to Temu's aggressive marketing strategies, including its notable Super Bowl ad campaign. Two years ago, the focus was on how these companies are restructuring the DTC landscape by bypassing traditional retail channels, offering products at significantly lower prices directly from manufacturers.

Second Update to the DTC Power List, presented by Bold Metrics. All brands are updated with the secondary interest poll. The second update of 2024 sees some major movers: Nugget (+403 MoM), Caraway (+341 MoM), NooWave (+306 MoM), Noah (+266 MoM), Nice Film Club (+257 MoM), Nice Film Club (+257 MoM), Care / Of (+207 MoM), Backdrop (+127 MoM), Purple Carrot (+127 MoM).

800+ Brands Measured

Amazon is being sued over its ubiquitous 'Buy Now' button

eCommerce / Summary: A class action lawsuit claims Amazon misled customers into purchasing more expensive products via its "Buy Box," suggesting cheaper alternatives exist under "Other Sellers." Accusations include Amazon favoring items shipped through its Fulfillment by Amazon service, despite not always being the best deal. The lawsuit, representing potentially millions of Amazon customers since 2016, underscores ongoing concerns about Amazon's pricing and promotional practices.

Is Taylor Swift actually increasing NFL ratings?

Media / Summary: Analysis of Nielsen data indicates a mixed "Swift effect": games she attended, especially on Sunday nights, saw higher viewership, but it's unclear if increases are due to Swift, the Chiefs' success, or other factors. While some data suggest Swift may attract more viewers, particularly in playoffs, the overall impact on the NFL's popularity remains ambiguous, highlighting the complex interaction between celebrity influence and sports viewership.

Echoing 2PM's earlier insights on the transformative potential of such partnerships, this Swift-Kelce phenomone underscores the effectiveness of leveraging high-profile celebrities to draw new audiences to sports. Swift's influence, similar to Messi's, serves as a powerful case study in the ongoing convergence of entertainment and sports, showcasing the capacity of celebrity power to shape viewer habits, expand fan bases, and introduce sports to untapped audience segments.

The most civilized place to look at news online might be Reddit

Media / Summary: Despite its past controversies, such as the misidentification incident during the 2013 Boston Marathon bombings, Reddit's subreddit communities, particularly r/worldnews, offer a platform for detailed and regulated discourse. Managed by volunteer moderators who enforce strict rules against sensationalism and misinformation, Reddit has become a space where news is shared and discussed in a measured and constructive manner, contrasting sharply with the chaotic and often misleading nature of news on other social media platforms.

Perspective: The growth of golf in the Middle East is largely attributed to significant investment in the LIV league and new world-class golfing facilities and luxury resorts: each aimed at diversifying economies beyond oil. Hosting prestigious tournaments and leveraging the region's favorable climate, especially during the European winter, also attract international players and tourists alike, further cementing golf as a key component of the Middle East's expanding sports and leisure industry.

Amazon and Walmart want to use GenAI to transform shopping

AI / Summary: XGen AI introduces AI tools for ecommerce, allowing brands to enhance shopping experiences without in-house AI experts. Features include AI-powered search and dynamic product recommendations, aiming to level the playing field with giants like Amazon and Walmart. The startup emphasizes vertical AI's potential impact on ecommerce, with notable early adopters and $16 million in funding.

Amazon's "significant" reliance on Chinese sellers

eCommerce / Summary: Amazon disclosed the substantial impact of China-based sellers on its marketplace, revealing their significant contribution to third-party seller services and advertising revenues. Nearly 50% of top U.S. sellers on Amazon are from China, influencing nearly half of third-party GMV. This acknowledgment highlights the growing interdependence between Chinese and American tech and retail sectors, marking a shift in global retail dynamics with direct-from-China sales increasing on platforms like Amazon, Shein, and others.

Executive Members (Read More): In recent decades, the wellness industry has evolved from a fringe market into a comprehensive lifestyle machine, intertwining elements of health, fitness, nutrition, and mental well-being. A recent merger suggests that the industry is still early in its growth stage.