2PM - No. 387: A Record Breaking Day?

The death of the department store and the American middle class

Retail / Recode: We’ve frequented discussions regarding the decline of malls and traditional retail, but the effects of this are far reaching. The middle class, our communities, and the future of commerce will all be impacted.

Excerpt: “Sears was built for [the] middle-class mall goer,” Web Smith, the founder of the commerce and media newsletter 2PM, wrote in the wake of Sears’s 2018 bankruptcy. “It’s been the thesis of 2PM, Inc. that retailers who’ve built their businesses for this American demo will continue to struggle until the American middle class rebounds.”

2PM Data: Here's a tool to help you contextualize the American middle class. At top, the typical consumption of the average middle class family. And at bottom, the wide range of salaries that make up the income of America's bedrock families. These figures are influenced by region, number of dependents, and a host of other factors. 

Additional Reading: Gilded Age 2.0 (2PM Memo)

The leadership and artistry of Tony Hsieh

In Memoriam / Harvard Business Review: A few days back, we lost a true leader. Tony Hsieh, who passed away at the age of 46, was as much an artist as he was a practitioner of business. He leaves behind a much-admired Zappos corporate culture, many who loved him, and a contagious curiosity that knew no bounds.

Editor's Note: Tony Hsieh's venture firm's early investment into Mizzen + Main impacted me personally. But that wasn't the lasting impression. It was much greater. Tony impacted the entire digital economy and his work laid the groundwork that we all stand on today. Though tremendous, his success was quieter than it should have been. If there was a Mt. Rushmore of eCommerce: he’d be there.

The twilight of the ethical consumer

Sociology / Atmos: An increasing number of people question whether we can “shop our way to progress,” as a recent Vogue piece put it. There are Reddit threads and an article in The Guardian from earlier this year that have pointed out that Ethical Consumption is a politics of the well-to-do, and there’s also the well-circulated Marxist notion that there is “no ethical consumption under capitalism.” 

Subscription addiction

New Media / Alex Taussig: From a guide to the success of the paid subscription model, to commentary on the streaming economy, to seemingly all-else relevant in the digital ecosystem today, interaction with this read is a must.

An investor behind Goop predicts the wild future of retail

eCommerce / Fast Company: Investor Frederic Court’s bets on eCommerce — his London-based Felix Capital has backed Farfetch, Goop, jewelry site Mejuri, among others—are poised to pay off on Cyber Monday and throughout the holiday shopping season as consumers eschew traditional stores during the pandemic. Now Court is turning his attention to the next wave of online retail, which he describes as “eCommerce as entertainment.”

Ralph Lauren ramps up digital investment ahead of the holidays

eCommerce / Glossy: Ralph Lauren’s digital holiday plan includes the RL Virtual Experience. Through either an online portal on the Ralph Lauren website or a Snapchat lens, customers can enter a virtual recreation of the brand’s New York, Beverly Hills, Paris and Hong Kong stores, as well as explore the spaces and shop the items on display.

Don't blame media's business model

New Media / A Media Operator: Information is quite accessible on the internet. This isn’t an economic or availability problem. Instead, it’s about convenience and trust. Information is accessible and available for those who choose to read it. There are deeper problems at play so the business model is the last thing we need to worry about.

How E.l.f. Beauty beat the trend and sold cosmetics in a pandemic

Retail / Vogue Business: The company made a strategic decision early in the pandemic to keep on track with all its initiatives. “When mid-March came through and the world seemed to halt, a lot of brands pulled back on marketing and innovation and delayed product launches,” says Erinn Murphy, a senior research analyst at Piper Sandler & Co. “E.l.f., on the other hand, continued to listen to their consumers’ needs and remained really engaged on the different platforms they were spending their time.”

US forecast to become biggest online alcohol market

eCommerce / The Spirits Business: The US is forecast to overtake China to become the world’s largest online alcohol market by the end of next year. The market was previously underdeveloped, but now the channel’s growth rate in the US has accelerated by several years. Between 2019 and 2024, total alcohol eCommerce value in the US will grow six-fold to nearly double China, the IWSR predicts.

Editor's Note: does that gift card promotion make sense yet?

Inside the launch of the Curry brand

Brand / Sports Illustrated: Stephen Curry has come a long way since releasing his first signature sneaker with Under Armour in 2015. The Warriors superstar is following in the footsteps of Michael Jordan and will launch his own label: the Curry Brand. The new line will give Curry the chance to build his own roster, have his own logo and create apparel, footwear and accessories across multiple categories including basketball and golf, with continued expansion in future seasons, such as running and women’s.

How Roblox paves the way for a new era of branded gaming

New Media / Modern Retail: Roblox is still in its infancy as a marketing tool, but over the last two years, the number of brands and retailers on Roblox has grown dramatically. Compared to other gaming systems, it is incredibly easy to discover new games on Roblox, which makes the platform well suited to help even small brands build an audience. In fact, one agency told Modern Retail that retailers — including grocers — are looking into building their own branded games.

Did you see that live stream?

Streaming Economy / Ashley Brasier: Beyond technology advancements, COVID has rapidly accelerated the adoption of live viewing, as creators look to monetize their talents remotely and consumers seek new and entertaining content. Of the consumers we surveyed, 85% watch live content today, and 70% of those that watch live content say their viewing has increased significantly since the onset of COVID.

Apophenia is a word that I’ve long considered to be one of the most important in the English language. Both a normal phenomenon and an abnormal phenomenon depending on one’s mental acuity, its connotation is complex. It’s the ability to find meaningful connections between unrelated ideas. Ideas and community are the fuel of this phenomenon.

Apophenia’s role in history is understated. The Age of Enlightenment propelled mankind forward in remarkable ways. At the core of that time period was the invention of the European coffee house. Caffeinated by imported goods and free of the dulls of Renaissance-era alcohols, academic and social ideas took shape in rooms dominated by men who spoke powerfully and dutifully as if it were their singular contribution to society.

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