On March 22, 2PM begins its third year. The purpose of the 2PM letter remains the same. It’s a weekly (or 2x/week) rundown of news, intel, and commentary that shapes our industry. It’s humanly-curated (with extreme care) and each week, the balance of the articles is influenced by the most read links from past weeks.
This project began as an initial letter sent to 30 industry friends with a simple philosophy: by studying adjacent industries, you can improve your own. As such, the letter has evolved into a trusted source of information and commentary for many of the brightest in media, commerce, data, and branding.
So with that, I’ve highlighted impactful storylines from the last two years. Part one of two will feature the first of five events, shifts, and developments that will influence your industry’s next three to five years.
10. Shopify solidifies its standing as a go-to for top 100 eCommerce.
Platform objectivity is really important here, there’s little evangelism here.Here are the most commonly seen options: custom cart, WooCommerce, Big Commerce, Magento, Salesforce (Demandware), or Shopify. I believe that established brands should build on the platforms that are best for them but the numbers are the numbers.
Based on some recent research, I’ve polled the most notable 110+ eCommerce brands and a resounding 40+% of them are hosted by Shopify. This has tremendous implications for the Shopify agency industry. Current leaders in that space: Bold Commerce, BVAccel, Pointer Creative, Wondersauce, Fuel Made, and Worn. I anticipate that one of them to be acquired by a top 25 brand in the next two years.
9. Affirm redefines consumer credit.
Early in 2015, I encountered Affirm for the first time (albeit late). I was constructing a luxury eCommerce platform for men and I was hunting down ways to bolster the site’s conversion rate. Affirm was one of the first company’s that I reached out to because the premise of the service was simple:
- offer financing at eCommerce checkout
- remove friction (long applications, credit checks)
- keep interest rates low and honest
This process was perfect for the online retailing of higher end items ranging from $500-$10,000. Hodinkee executed this concept to perfection. And now, they are pushing “honest financing” into physical retail.
People can sign up through the website or at checkout on some web stores for financing from Affirm that’s paid off in monthly installments. On Monday, the company said it’s making the micro-lending program available through Apple Pay, letting customers tap their iPhones to pay in brick-and-mortar stores.
8. Walmart pivots towards a startup culture.
When Walmart acquired Jet.com, the legacy retailer acquired a new direction led by Marc Lore. Many in the industry remain skeptical of Lore’s ability to bolster Walmart’s position in a market that’s deeply influenced by Amazon, Alibaba, and digitally vertical native brands. But to his credit, Walmart’s market cap is rising. In fact, it saw an all-time high on January 28, 2018. I’ve applauded his innovations. These innovations include his streamlining Walmart’s omni-channel operations, acquiring popular online retailers, and incubating native brands like their new Allswell.
The Allswell brand is strong, it’s independent, it’s inviting. It looks like a Silicon Valley-backed DNVB for bedding and mattresses. But most importantly, it appeals directly to upper-middle class women. If you notice, the “King” bed is now known as the “Supreme Queen”, a nice touch in an era (rightfully) dominated by the rhetoric of feminism and gender equity. Allswell is a play to capitalize on this cultural momentum.
7. Glossier forges a new path for content and commerce.
One of the core tenets of 2PM’s commerce beliefs is that to succeed, you must control both key levers: content and commerce. I’ve called this linear commerce. There isn’t an operation that is executing as well as Emily Weiss’ Glossier.
From the brand’s inception – which spawned from the hyper-popularity of Weiss’s beauty blog Into the Gloss – the beauty company has gone against the proverbial grain of the beauty business. Marketing a sense of authenticity and belonging rather than the beauty industry’s traditional fictitious glamour story, the female-dominant company (Dear Tech People reports 79% of Glossier’s staff is female) captured the love and attention of the coveted Millennials.
Janna Mandel, Forbes
Glossier / Into The Gloss has achieved that proverbial line, the result of two planes intersecting to form infinite opportunity. Glossier is operating similarly to Kylie Cosmetics, but in a way that could be more sustainable for the well-funded D2C brand.
The majority of Glossier’s influence referral comes from their blog while the majority of Kylie Cosmetic’s influence referral traffic comes from Jenner’s Instagram and Youtube accounts. While Jenner’s influence is currently stronger, Glossier owns their influence plane.
6. Subscription media becomes the new standard.
Just ten years ago, paywall was a dirty word. And then the New York Times’ innovative commerce department developed a strategy that readers are willing to play for quality. In 2018, with the exception of Axios, Outline, and Inverse, there aren’t many examples of notable media startups who haven’t pursued subscription revenue as their focus.
I’ve cited TheSkimm, Skift, and The Information as innovators in this space.
The newsletter reports a 30% open rate. Since its launch, TheSkimm has expanded to offer podcasts, an e-commerce business and a paid app featuring a calendar of upcoming news and televised events. TheSkimm will use the new influx of money to build more subscription services, perhaps with the help of Google Ventures and Google, and enrich its video and podcasting options, along with plans for data analysis.
Melinda Fuller, MediaPost
In issue No. 262, 2PM will count down the last five storylines. If you have any feedback on 6-10, email me: email@example.com.
Read more of the issue here.
One thought on “No. 261: Two Years Later | Part One”
[…] focused on the great stories of the last two years, Part Two focuses on what will happen next (See 6-10 […]