Morning Brew - ☕ Tik or treat

TikTok Shop’s Black Friday/Cyber Monday strategy.
October 31, 2024

Retail Brew

Hello, and happy trick-or-treating day! Amazon reports third-quarter earnings after the bell today. We’ll be watching closely for any top-line gains and how that revenue stack shapes up between its cloud computing business, advertising unit, and the superstore. We hope Amazon’s numbers do not spook Wall Street, but it’s Halloween, so don’t bet on it.

In today’s edition:

—Vidhi Choudhary, Alex Vuocolo, Erin Cabrey

E-COMMERCE

Shop till you drop

TikTok Shop holiday event TikTok Shop

TikTok Shop is doubling down on new product drops this holiday season, with items it hopes you won’t find elsewhere.

TikTok wants to offer US shoppers products from lesser-known, smaller DTC brands that may not have the resources to operate on rival platforms like Amazon, among others.

“What we’re doing is product discovery—unique products that you can discover by yourself naturally in your feed,” Nico le Bourgeois, head of US operations for TikTok Shop, told Retail Brew on the sidelines of an event the company hosted in New York on Oct. 23. “That means a lot of small brands, direct-to-consumer brands that don’t necessarily have access to those large platforms.”

New product launches exclusively for Black Friday will be on TikTok Shop shelves in November. Merchants like candy brand I Love Chamoy, will be dropping sugar-free Mexican watermelon candy gummies, Mavwicks Fragrances is set to launch a fabric softener, and period care brand August has plans to introduce cozy winter merch—all exclusive to TikTok Shop for Black Friday.

Le Bourgeois said TikTok is “reimagining” how people shop this Black Friday/Cyber Monday with the exclusive products sold through TikTok’s community of creators, as small businesses create custom products for the platform.

Keep reading here.—VC

   

From The Crew

An inside look at high-net-worth finance

The Crew

STORES

Suiting up

Costume shopping Valentinrussanov/Getty Images

The Halloween season is about to wrap up, but new data suggests this week could see a spike in last-minute holiday spending. Bank of America internal credit card data shows retail spending at novelty shops and other popular destinations for costumes increased 30% in the final week of October last year.

If such a surge happens again, it could show that not everyone is following the prevailing trend of doing their Halloween shopping earlier in the season.

Keep reading here.—AV

   

RETAIL

Thin skin

Hand reaching for skincare product on shelf Siewwy84/Getty Images

As a slew of beauty and personal care CPGs reported third-quarter earnings this week, the skin care category has been experiencing some ups and downs driven by drugstore closures and reduced innovation.

Galderma, owner of skin care brands like Cetaphil, reported this week single-digit growth for the first nine months of the year in the US, noting “more cautious consumer consumption” within the dermatological skin care market, according to a company release. Galderma noted Cetaphil grew in international markets during the period, but lagged in the US. It’s working to boost growth by upgrading its merchandising at Walmart and introducing a new Cetaphil Gentle Exfoliating line supported by Gen Z influencer Katie Fang.

While L’Oréal reported a 2.8% rise in sales in its third quarter, growth halted in its dermatological beauty segment, which houses CeraVe, La Roche Posay, and Vichy, with a 1.6% decline. CEO Nicolas Hieronimus said the “biggest culprit” for the slowdown was the US market, which he attributed to Gen Z consumers leaving the segment to try other brands as well as a lack in innovation from CeraVe.

Keep reading here.—EC

   

SWAPPING SKUS

Today’s top retail reads.

Shots fired: Shopify is reportedly encroaching into Salesforce territory by targeting big names that previously used the enterprise software giant for its services. (Bloomberg)

Too pricey: Trick-or-treaters might distribute less chocolate candy due to record high chocolate prices. (the Wall Street Journal)

Under the scanner: Temu will likely be investigated by the European Union to determine if the online fast fashion platform is in breach of rules to curb the sale of illegal products. (Bloomberg)

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