2PM - No. 804: BASICALLY

2022 Retail Trend Report (.pdf) / Placer Labs: This is one of those downloads that is worth giving Placer your email address. But if not, we have summarized four of the most important takeaways below. We identified ten fast-growing brands to watch in 2022, with an emphasis on rising stars that are shaking things up in established retail categories.

New 2PM Memo (4 minute read): When a retailer launches a private label, it means they’ve achieved a critical mass. According to Placer.ai data, GoPuff’s launch of Basically, is right on time.

A lot can be said about the state of the retail industry, and the modern consumer, by looking at the companies that are expanding their store footprint most aggressively. Recent data from Placer.ai reported the top ten retailers to watch in 2022 based on their expansion plans. The list, which features fast food chains, Dollar Store spinoffs, and a store-in-a-store partnership, confirms that today’s customers are drawn to physical stores when there’s a reason to visit them, and the companies that best deliver are those that are most aware of current consumer trends: DTC, bifurcation, instantaneous delivery, and convenience. (Read More)

Marketing: The team at Ordergroove has presented 2PM with a unique offer. You can earn two months off with your annual contract. Boost retention and LTV with subscriptions. 

Spotify and Joe Rogan respond to complaints

Media / New York Times: Rogan's response via Instagram and statement by Spotify led to a 13% bounce in the stock, however it's still down 20%. The dispute over Rogan’s podcast has ignited new debate over questions about free speech on the internet and about political polarization in the coronavirus era. Technology and social media platforms, like Facebook, YouTube and Twitter, have been widely accused of playing a prominent role in spreading untruths about the virus and the vaccines to prevent it. 

MrBeast is going full Willy Wonka

Linear Commerce / Fast Company: Jimmy Donaldson is the master of authentically monetizing his vast audience. And in most cases, he makes it an interactive experience that can be shared through YouTube. This project is no exception. Donaldson tells Fast Company that his approach to launching a new food company is very similar to how he approaches most of his ideas. “What is something I think my audience will get most excited about, that they’ll like, what’s interesting, what’s the most spectacular thing we can do?” he says. “And it doesn’t get more of a spectacle than flying people in to compete for a chocolate factory.”

Why activist investors are targeting department stores

Retail Real Estate / Business of Fashion: We explained this in the context of Saks, Macy's, and Kohl's here in this member exclusive. Why are they doing this? Activist investors see the value of spinning out eCommerce operations. It's made Saks.com far more valuable than Saks ever was. Change is coming to department stores – whether they like it or not. This week, two investment groups made moves to buy the American chain Kohl's: a consortium of investors backed by hedge fund Starboard Value LP put in a $9 billion offer, and private equity firm Sycamore Partners is reportedly plotting a competing bid.

How fashion brands entered the metaverse in January

Metaverse / Glossy: Gucci was particularly active last year, turning out activations like the “hacking” project with Balenciaga, the launch of Gucci Vault and its buzzy collaboration with North Face. Its newest project is with Superplastics, the company making artistic collectible vinyl toys. It has previously released NFTs through the Nifty Gateway, a digital art auction platform owned by the Winklevoss brothers.

Editor's Note: Nike is pioneering here, most of the luxury brands are following the CryptoKicks playbook in one way or another. 

Amazon’s banned China sellers turn to Walmart’s marketplace

eCommerce / Bloomberg: This is one of those wins that Walmart's eCommerce team may only appreciate in the short term. "We'll see," said the Zen Master. It's sure to cause long-term headaches as the decision to allow China sellers is bound to force Walmart to reallocate spend towards vendor relations, intellectual property safety, and product moderation teams. The timing was serendipitous for Walmart, which in early 2021 started an initiative to attract non-U.S. merchants to its eCommerce site. By yearend, Chinese sellers accounted for an estimated 1 in 7 of those joining its marketplace. But industry veterans say that means Walmart and other online retailers could face the same problems that led Amazon to ban so many Chinese sellers in the first place.

Streaming is benefiting and struggling from Great Resignation

The Streaming Economy / Morning Brew: This is an interesting one, the market forces that propelled streaming to pandemic-time prominence is also dwindling its employment rolls. Even Netflix, which has previously brushed off questions about the growing line-up of rival streaming services, acknowledged to investors that competition “has only intensified over the last 24 months as entertainment companies all around the world develop their own streaming offerings.”

Land a job in DTC as a customer-acquisition marketer

DTC Practical / Business Insider: Customer acquisition is "the hottest" category in hiring for DTC brands right now. 

Opened  by 30.3% of members. The mechanics of achieving scale with a venture-backed, direct-to-consumer business is a difficult proposition. Take three different stories from the last few days: Glossier is in the process of right-sizing after $274 million raised, Savage x Fenty announced a $120 million fundraise, and Skims just closed $240 million. Three businesses, three stages of the life cycle, one goal: scale.

In July, Glossier raised its most recent round: $80 million in Series E funding. The news that Glossier is now reducing its workforce by one-third just six months later illustrates the difficulties that modern brands face at scale. Glossier spent heavily on new distribution channels and natively-built technology (APIs, point of sale systems, etc). The unpredictability of the pandemic only complicated matters for the beauty company.

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