DTC

Gift and Ye Shall Receive

For direct to consumer (DTC) brands in giftable categories, Black Friday and Cyber Monday present a chance to turn frantic “best gift for dads” Googlers into lifelong customers. 

But the coming wave of shoppers, and all their demands about shipping times and returns, will put brands’ experience expertise to the ultimate test. 

The DTC advantage: Shoppers want to give thoughtful gifts, putting some companies on track for record-breaking sales. “People who have exclusively shopped in-store are making their first online purchases out of pure necessity, and even more are making their primary shopping channel online,” said Taylor Sicard, co-founder of Win Brands. 

• Healthy Roots Dolls founder and CEO Yelitsa Jean-Charles told Retail Brew sales at her toy brand have exceeded projections.
• At aperitif brand Haus, a holiday sampler set is “already selling 7x faster than we predicted,” said founder Helena Price Hambrecht.
• Win Brands director of customer service Ryan Kidd said demand across its portfolio, spanning candles, apparel, and jewelry, has “significantly increased” compared to non-Covid-19 years.

The downside: Brands can’t control what happens after thousands of shoppers hit “Purchase” in tandem. The U.S. is expected to process 80 million packages per day between Thanksgiving and Christmas, a significant increase from previous years. 64% of shoppers won’t pay for expedited shipping to bypass the rush, per Adobe Analytics. 

Bracing for shipmageddon

Handling the gifting surge is a matter of balancing customers’ expectations with the pieces of the process brands control. 

Before…shoppers may say they’re aware of shipping constraints, but brands aren’t taking any chances. 

Where there’s a readable surface, there’s a reminder about shipping deadlines. “Everyone wants their product to be delivered in time for the holidays, but they need to be made aware of the challenges so they can make as informed a decision as possible,” said Jean-Charles.

• Strong holiday comms go both ways: “If a customer wants to send us a DM on Instagram or a message on Facebook, we’re there. If they want to shoot us a text message, we’ll text them, and will always respond to an email,” said Sicard. 
• Brands need big teams to meet the rush. Haus has made new hires on its customer experience team and its warehouse staff, Price Hambrecht told me. 

During…Price Hambrecht said Haus partnered with last-mile logistics firms in some cities, so customers can take advantage of same-day delivery.

In cases where packages take the long way home, “the main mistake brands make is that they often deflect blame and push it to the courier,” said Eli Weiss, director of customer experience at sparkling beverage brand Olipop. 

• He suggests calling a shipping provider on the customer’s behalf when items are delayed: “While the courier may indeed be at fault, the experience a customer has with your couriers and partners also reflects the experience they have with you as a brand.”

After…shoppers will come back during the off-season to gift themselves and others if brands prioritize service and sales. 

“During the holiday season, many brands are taking sales as a ‘given’ and might be missing the gratitude portion,” Weiss told me. “Customers are shopping in a market flooded with options, and they chose you. Showing appreciation will keep them around.”

SWAPPING SKUS, SUPERSIZED

What’s a holiday weekend for if not to gobble up all the things you meant to read during a normal week and didn’t? From my bookmarked tabs to yours, enjoy. 

1. Your comprehensive guide to how this year has transformed retail, and how brands can bounce back. (Protocol)
2. If you’ve ever fought for the last turkey at the grocery store, you know Butterball. Here’s how the famed turkey brand is winging its way through an abnormal Thanksgiving. (Marker)
3. The Pleasant Company is so much more than a doll maker. I loved every word of this profile on the American Girl Doll’s home and the generations of shoppers it influenced. (Fashionista)
4. There’s a month left in 2020, but we already know what the retail item of the year is. (GQ)
5. You may think you picked out your new sweatpants, but algorithms were pulling the strings. They’re the first step in an increasingly tech-heavy fulfillment funnel. (Retail Brew)
6. Anyone with a craving for DTC teardowns needs to visit this five-part series. (Retail Dive)
7. Is holiday shopping ready to go Fast—as in, the company? (Business Casual)
8. QR codes: not the heroes retail wanted, but the heroes retail needs. (Quartz Weekly Obsession)
9. Part business report, part society pages tell-all, this dive into Moda Operandi’s rotating cast of characters leaders is a must-read. (Air Mail)
10. Sherwin-Williams may have missed a huge opportunity by firing its TikTok-famous employee. (BuzzFeed)
11. Last but not least, yours truly in conversation with the Apptopia team about social commerce, holiday trends, and the dumbest thing I’ve bought during quarantine. (Apptopia) 

SPONSORED BY SPLITIT

What does the future of retail look like? Splitit’s guide explains how Covid-19 has drastically altered the retail landscape. Yet even with record YoY growth in e-commerce sales, physical stores still have a role in the retail experience. Read how e-commerce and brick and mortar can complement one another if the right framework is created. Check out Splitit’s guide today. 

COMMUNITY

It’s time for Coworking, our segment highlighting the best part of Retail Brew: you, the readers. If you’d like an intro to 145,000+ retail industry pros, fill out our quick nomination form.

We’ve got a special holiday screenshare with Rachel Insoft, data scientist at Stitch Fix. 

Describe your job like you’re on a date. I use client behavior data and business changes to algorithmically predict demand (i.e., client orders). These forecasts feed into everything from financial reports to creating a budget for hiring new employees.

One thing we can’t guess about your job from LinkedIn: How much time I spend shopping on our new "direct buy" platform. I like to tell myself it's product research…

Favorite project you’ve worked on: Helping launch and lead forecast capabilities for the new U.K. arm of the company!

Favorite retail account to follow: The Outrage—retail activism at its best.

FROM YOU

On Monday, I shared a lowlight from my first (and only) Black Friday sales experience. Many of you wrote back with doorbuster horror stories of your own. Here’s a sample.  

Submissions have been edited for length and clarity.

: “You’ll never know the horror of Black Friday until you are stationed at the panty bar at a PINK store (or Victoria’s Secret for that matter). Customers trampled my staff as the gates opened and they literally climbed over tables to get to the back. Panties were flying.” – Chelsea M.

: “What ruined my career as a J.Crew sales associate were holiday shoppers with outlandish expectations. One man comes to mind. He laid down the gauntlet: He needed a pair of chinos with a 40" waist and 30" inseam for less than $30. What did he think I was, a North Pole elf? Lo and behold, I went to the sale corner and dredged up a Christmas miracle, 30x40 pantaloons for $29.95. I was bursting with excitement and rushed back to the customer. He glanced at the pants, said, ‘Don't like the color,’ and walked out. No ‘Thank you.’” – Austin C.  

pt. two: “I worked at Express and we had just received our Black Friday floor set the Tuesday before Thanksgiving. Even though I was a stock associate in the back room, they asked me to come in Thanksgiving evening to help set up the floor for Friday. I was placed in charge of the ‘jean wall’ —a specific fold, look, and color palette had to be replicated with our inventory. It was a daunting task, but after several hours, the job was finished, and I had never been so proud of a wall in my life. 

The next day, I was scheduled for the 1-10pm shift, and sure enough, when I came into the store, the ENTIRE jean wall was destroyed.” – Kevin L. 

: “I worked at CVS in high school and I spent all day on Black Friday telling people how to stand in a line. It was awesome.” – Jen M.

HOMETOWN HEROES

Let’s close with a Retail Brew trivia classic. I’ll provide a location and the retail category; you guess which retailer is headquartered there.

1. Seattle, Washington: fine jewelry
2. Boise, Idaho: affordable groceries 
3. Stratham, New Hampshire: outdoor gear meets streetwear
4. West Des Moines, Iowa: groceries and in some locations, DSW shoes
5. Louisville, Kentucky: parent to drive-thru faves

Keep reading for the answers.

ICYMI

Catch up on the Retail Brew stories you may have missed. 

• How Emerging Technology Fuels E-Comm, From Discovery to Delivery
• The Resale Market for Gamers Has One Home: eBay
• Quarantine Is Boosting Retailers’ Interest in Unusual Vending Machines

HOMETOWN HEROES ANSWERS

1. Blue Nile
2. Albertsons
3. Timberland
4. Hy-Vee
5. Yum! Brands