Morning Brew - ☕️ Goodbye, minimalism

How Gen Z is reshaping retail product design.
Morning Brew April 11, 2022

Retail Brew

Square

Hi there. And happy National Pet Day to all the pet parents today. We’ve got a treat for everyone: Remember to sign up for our (IRL) conversation on sustainability later this month. Keep scrolling for the deets.

In today’s edition:

—Julia Gray, Glenda Toma, Jeena Sharma

DESIGN

Bright ideas

Starface pimple patches inside its square smiley-face compact Starface

Skincare brand Starface wants its pimple patches to feel like jewelry. The zit-zapping star stickers are packaged inside a square smiley-face compact, which the company calls “Big Yellow.” On store shelves, that smiley is nested inside an electric-lemon box, emblazoned with playful bubble letters. It’s like a cutesy matryoshka doll for acne.

“On a shelf of other acne-specific products, everything is a little drab and lackluster. So we definitely wanted to bring joy,” Starface’s president and general manager Kara Brothers-Phillips told Retail Brew.

The minimalist aesthetic that was so popular among millennials is coming to a close, and you can thank Gen Z. They look for products with attitude and personality, explained Hamish Campbell, VP executive creative director at the brand design agency Pearlfisher: “We’re now into maximalism.”

  • “This is probably one of the biggest generational shifts in mindset, to be really promoting who you are,” he told us.

Pearlfisher—which works with companies like Blue Bottle Coffee, McDonald’s, Wild Turkey, and Pyrex—has noticed a growing interest in younger consumers among its clients. “Almost every brief I get is now looking to how we move these brands to be more Gen Z appropriate,” Campbell said.

Scrolling through memory lane: When helping companies strategize and design for this audience, he emphasizes Gen Z’s creativity, mixed with their penchant for nostalgia.

Beauty brand Youthforia, a Gen Z favorite, packages its lip gloss and blush in neon tubes that click together like magnetic Legos. Founder and CEO Fiona Co Chan told us she wanted the products themselves to spark childhood memories. “[It] kind of brings you back to the first time you’ve ever bought makeup…I wanted it to kind of be reminiscent of a toy.”

Click here to read more.—JG

        

SOCIAL MEDIA

Party planning

Party City social images Illustration: Dianna “Mick” McDougall, Photos: Party City

Get out the balloons: Party City CMO Julie Roehm recently spoke with Marketing Brew’s Alyssa Meyers about the retailer’s new and improved social media strategy.

Start strong: One of the first things Roehm did at Party City—coincidentally, her tenure started just a few months before Covid hit the US—was to move most of the retailer’s media budget to digital platforms, including Pinterest, Instagram, TikTok, Facebook, YouTube, and Google.

  • In the past year, its spend on social has doubled, according to Roehm.
  • This January, Party City’s paid media-buying efforts led to a nearly 10% YoY increase in traffic. And from 2020 to 2021, paid social traffic improved 30%, she said, primarily driven by Facebook, Pinterest, and Instagram.

Share the fun: Roehm also established the company’s first internal influencer team and created partnerships with creators, including “mom influencers.”

“Social has been a gift that keeps on giving for us,” she said, explaining that Party City’s influencers not only post content for the brand, but also provide feedback about what’s working and what isn’t. “It helps us a lot to refine our go-to-market positioning and strategy.”

+1: Another priority? Pinterest. Click here to read the full story on Marketing Brew.—GT

TOGETHER WITH SQUARE

Retail is going omnichannel

Square

You might be wondering: What does that mean? And how can I go there too?

Square has the answers to your retail questions, such as why you need an omnichannel strategy and how you can leverage the power of social media for your business.

All these trade secrets are in The Ultimate Retail & Business Playbook, a hub we put together with Square featuring all the info and resources you need to keep up with the changing world of retail and business.

Check out articles like this one on the top 8 retail trends you can expect to see in 2022 and what you can do to make those trends work for your business.

Visit The Ultimate Retail & Business Playbook for all the retail deets to help you grow your biz.

FOOTWEAR

Private ambitions

DSW storefront Ablokhin/Getty Images

Owned brands are having a moment, and DSW parent company Designer Brands wants to step up.

The company laid out a five-year financial plan on Friday, in which it aims to hit $4 billion in annual revenue and a gross profit of 35%—all by fiscal 2026.

  • To reach that goal, Designer Brands is counting on doubling the 19% of total revenue it currently derives from its owned brands to nearly one-third—mainly through DTC channels including DSW and The Shoe Company.

The company previously noted its owned-brand sales in Q4 increased 69% YoY, while private-label sales via DTC channels grew 98% YoY. “We needed to get in more control of our destiny,” Designer Brands CFO Jared Poff told Footwear News. “Not just be a retailer of other people’s brands, but truly be a brand builder.”

Zoom out: Designer Brands is not alone in seeing the value of selling directly to consumers—especially as companies like Nike have also accelerated their shift toward DTC and cut down on business with wholesale partners. Under Armour has also been rethinking its wholesale channels, while Adidas is counting on DTC making up 50% of its sales by 2025.—JS

        

WHAT ELSE IS BREWING

  • Consumer concerns over inflation reached a record high in March, per Federal Reserve data.
  • Etsy’s commission fees are supposed to increase today—as some sellers on the platform consider a strike in response.
  • Shopify announced plans for a 10-for-1 split of its common stock.
  • Target introduced a landing page on ThredUp as part of a new deal.

TOGETHER WITH PLACER.AI

Placer.ai

Comeback companies of the year. These brands were written off by leading analysts, but Placer.ai saw their potential—and has the foot-traffic trends to prove it. From a discount furniture chain seeing surging numbers to an entertainment company already hinting at a rebound, the deets on 7 brands with the biggest comeback potential are in this white paper from Placer.ai.

EVENTS

Sustainability in Retail

The Checkout event promo focused on sustainability on April 27, 2022 Francis Scialabba

Upcycling, circularity, sustainable sourcing…what do these all have in common? Answer: The potential to be nothing more than catchphrases—or the power to become impactful initiatives.

If you’re a retail professional at the director level or above and ready to put more impactful sustainability initiatives in place, join us on April 27 in NYC (yes, in person!) for The Checkout: Sustainability in Retail forum. We’ll be in conversation with Liz Hershfield, SVP and head of sustainability at J. Crew Group and SVP of sourcing at Madewell, to learn about how to set audacious, actionable goals while also creating accountability.

Spots are first come, first serve, so register here.

SWAPPING SKUS

Today’s top retail reads.

Great expectations: A hard look at US consumer culture. “We’re always being set up that whatever we’re looking at or considering to buy is better,” said David Mick, a professor of commerce at the University of Virginia. (Vox)

Early birds: Yes, some retailers are already putting in their holiday orders. (Forbes)

Bowl over: PetSmart is pushing into fresh and frozen food to keep pet parents coming back. (Modern Retail)

FROM THE CREW

Morning Brew Accelerator

Smiling group of people

If you haven’t heard about it yet, you should really check out Morning Brew Accelerator (MB/A) right now.

Here’s the TL;DR version: In just eight short weeks, MB/A gives professionals the tools they need to level up in the core competencies required of modern business leaders.

But this isn’t your run-of-the-mill professional development course. MB/A is a cohort-based online program that helps you build authentic connections with fellow classmates … and those relationships don’t stop when the class is over. Students also get free lifetime access to our alumni Slack channel, job boards, and alumni-only events.

So don’t miss out on a business education program that alumni say left them feeling “invigorated,” “energized,” “inspired,” “rejuvenated,” and even “smarter.” Learn more about MB/A today.

HOT TOPIC

At the mall, it’s where band tees are the only tees. In Retail Brew, it’s where we invite readers to weigh in on a trending retail topic.

Last week, online luxury retailer Farfetch announced a global strategic partnership with Neiman Marcus Group (NMG), owner of Neiman Marcus and Bergdorf Goodman, which included a minority investment of up to $200 million.

Under the deal, both luxury retailers will sell products through Farfetch’s marketplace, which reaches 190 countries, providing a potential sales boost for the retailer that filed for bankruptcy in May 2020.

  • Farfetch will support Bergdorf Goodman’s website and mobile app through its white-label tech services. Bergdorf Goodman will also be expanding its own website abroad, planning to debut its first international website in 2023.

NMG CEO Geoffroy van Raemdonck told Bloomberg the move will also help the company reach an emerging demographic of younger luxury shoppers.

You tell us: Do you expect other retailers to make similar moves to cash in on the growing global luxury market? Cast your vote here.

Circling back: Last week, after warehouse workers on Staten Island voted to form Amazon’s first union, we asked our readers how they think a unionized Amazon warehouse could affect the industry. One reader said it will start a “domino effect” of private businesses unionizing, while another reader noted that it could lead other warehouses and manufacturing companies to raise wages and improve working conditions to keep workers from switching over to the e-comm giant.

 

Written by Julia Gray, Glenda Toma, and Jeena Sharma

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