Issue No. 261: Two Years Later | Part One

facebook-ad

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.

This essentially makes Affirm a credit card provider without physical cards or credit scores. The San Francisco-based company pitches itself as superior to traditional credit cards from American Express Co. or Visa Inc. because it’s transparent about fees and charges no interest on purchases from more than 150 retailers.
Julia Verhage, Bloomberg Technology

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.

From Member Brief No. 2:

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

From Member Brief No. 1

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: web@2pml.com.

Read more of the issue here.

Issue No. 250: 🗣 Listen up!

The 2PM community is a vibrant one of thousands of smart, curious, and polymathic-types who lead in professions to include: branding, commerce, data, and digital media. 2pml.com covers the many ways in which these industries converge and where there is disruption or opportunity.

After a few months of lobbying by my wife (and great feedback from subscribers), 2PM will begin releasing a weekly podcast that will recap news and developments. In addition to recaps, there will be a scripted deep dive into one retail touchpoint each week. If you’re a member of this community and you have something to contribute, expect an invitation to join the pod.

The format will be 20-25 minutes per week, with a link to the audio in your inbox at 2PM EST on Monday. The pod will be direct, succinct, and digestible – just like these letters. Expect more news on format and partners in the final few issues of 2017’s letters.

This is the opinion of Web

See more of the issue here.

Issue No. 247: Welcome Back

Opinion: DNVB’s must become luxury brands

9be8a5c7-88c5-4fe5-966d-38bf361934b2.png
There are a great many tidbits in this essay, in addition to the original infographic above. The notion of moving a brand up-market is one that I believe very strongly in – not only as a price-anchoring function but as a product differentiator and brand builder.

This is the first essay that I’ve featured by the New York venture capitalist but it’s a worthwhile one. It’s lengthy but it’s worth your time.

Excerpt: Building a luxury direct-to-consumer brand is easier said than done, but take comfort in the fact that it can be done. Every generation has its share of holdover brands from the last, but millennials, like our parents before us, have a cadre of all new logos and experiences we want to be seen in, on, and around. Unlike our parents, we care about the experience of the purchase as much as product itself and are willing to pay serious premiums for individualized VIP treatment. Use that to your advantage. Provide a level of service your competition won’t, and tack that additional cost to the end of the price tag.

Read more here.

See more of the issue here.