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Dec 22

Dec 29 2017


NO. 251: 🗣 10 THOUGHTS FOR 2018

--------------------------------------------------------------------------------

Issue no. 251. The last one had a 38.79% open rate. The most-read link was CB
Insights' review of the biggest Direct-to-Consumer brands in play. It was so
popular, LeanLuxe is featuring it today. Here is a key excerpt that you should
read if you haven't:

“[Succeeding] earns you the right to go from product one to product two. Take as
much time as you need to get product one right, and to prove it,” said
co-founder Andy Dunn.

He goes on to compare this strategy to Ralph Lifshitz's early perfecting of his
Ralph Lauren ties (read a history here). We were just having this same
discussion during a planning round table for Cotton Bureau's Blank line of
size-inclusive, American-made tees. It is important to get the very first
product right before moving to the second.

"Because if you don’t [get it right], no one is going to be waiting on pins and
needles for product two," added Dunn.

Web Smith, EIC
web@2pml.com



Did you receive this from a colleague? Subscribe at 2pml.com

Today's Top Intelligence (11 Reads)

Grailed: 30 Most Popular Brands in Fashion
The “K***e Effect” is still clearly real, but we might need to start discussing
the “Virgil Effect” as well. While Adidas held the top spot in the realm of
sneakers, and K***e West-affiliated garments rounded out our end-of-the-year
“top five” in terms of popularity, it’s impossible to ignore the rise of both
Off-White and Nike. With “The Ten” building hype with teases and celebrity
sightings all the way up to its inevitable drop in Q4, Nike’s star continued to
rise right alongside that of Abloh’s own Off-White.


Read More

The New David's: The Traub Labs 200
DNVB: Our second look at the David's focuses on a curated selection of over 200
brands across five key categories: fashion, accessories, beauty, wellness and
home. By definition, our Davids were founded, launched and nurtured online and
our curation is centered on those which we believe are ones to watch. The 200+
are at varying stages of maturity and scale, but on average, through anecdotal
evidence, we believe they are each generating an estimated $10 million in sales
or $2 billion in total. 



Retail and Media are Converging
Capstone: All the major digital players like Facebook, Google, Pinterest,
Snapchat and Instagram have developed ad offerings that start to bridge the gap
between retail and media, in the form of shoppable ads or swipe-up-to-purchase
type of ads, for instance. On the opposite side, the likes of Amazon and Walmart
are acting like media owners. Amazon is really making inroads into advertising,
renovating its search and programmatic products. So more and more, media is
being wired for retail, and at the same time, more and more retail is wired for
media. It’s an interesting convergence on both sides.



The Retail Winners and Losers of 2017
Retail: Make no mistake, it has been a year of transition for all retailers —
from online to brick-and-mortar and everyone in between – and it hasn't been
easy. But those that stood out for the better, did so by investing in themselves
— in products, stores, experiences, technology and delivery. Others, however,
made headlines this year for outdated business strategies that left some
stagnate and others in bankruptcy court.



What Will the New Year Bring For Podcasts?
Digital Media: Podcasting has always been a way for people to creatively tell
stories as there’s a minimal barrier to entry and it offers a good way to find
niche audiences. Last year, we saw podcasts move beyond listeners’ ears and into
television and books, with writers, producers and publishers using the stories
from podcasts as a way of gauging the popularity of a subject, as well as
providing a jump-off point for their own content.



The Year in Snapchat Advertising
Digital Media: Ad buyers agree that Snapchat’s best move of the year was
introducing the Snapchat Ads Manager. In May, Snapchat began allowing ad buyers
to run two of the platform’s ad units, Snap Ads and sponsored filters, via a
self-serve auction. The platform’s third ad unit, sponsored lenses, must still
be bought through the Snapchat sales team.



The 22 Most Engaging Pieces of Brand Content in 2017
Content: Unmetric, a company that analyzes engagement data across social
platforms, ranks posts from brands with an engagement score from zero to 1,000.
Because every platform is different, and every brand has different metrics for
success, Unmetric gives scores based on the idea that some metrics (like shares
and retweets) have more value for brands than others such as likes or favorites.



Retail Woes: A Running List of Fashion Bankruptcies
Retail Apocalypse: Some of the most recent retail bankruptcies have been those
of the traditional mall retailers, whose businesses have suffered significantly
in light of fast fashion's growth. Moreover, market giants, such as Wal-Mart and
Target have wiped out a number of other companies, who were unable to compete
with their pricing power and general reach. And as noted by many sources, any
existing retail problems only increased when Amazon arrived on the scene.



What Happens When Walmart's ModCloth Copies a Feminist Brand? Nothing.
eCommerce: While ModCloth has removed the t-shirt from its site, it has not
taken any further steps to rectify the situation, which very likely amounts to
copyright infringement. Yes, Pardue very likely holds copyright protection in
the nail polish-bearing fists design that she created, which ModCloth is thereby
infringing by recreating for its own tees.



Away Is Using Content to Tell Its Brand Story
DNVB: At Away, our ultimate goal is to be known as a global travel brand—luggage
is just the beginning. We know that there’s a lot that can be improved  with the
current travel experience, and we want to help fix that—for Away to become
synonymous with more seamless travel.  This past September over Paris Fashion
Week, we created a pop-up hotel called Chez Away it was a big success and proved
what our team is capable of when we think outside the box, so we are exploring
similar opportunities to activate and offer an all encompassing Away travel
experience for our community in 2018.



Best of 2017: Facebook, Subscriptions and Commerce
Digital Media: Along with subscriptions, commerce has emerged as a route to
monetization. One of the most interesting, if unlikely cases, is with Barstool
Sports, the millennial male-aimed sports comedy site.



2PM's 10 Thoughts for 2018



 1.  Brand: Nike will make small gains against Adidas by copying the German
     brand's "creators" playbook (click above) but Adidas will remain the brand
     for rebels and the message will resonate better in 2018, as consumers shun
     the status quo.
 2.  eCommerce: Podcasts will continue to mature their eCommerce operations.
     There will be more examples of refined stores and high quality brand plays
     in merchandise.
 3.  Digital Media: Netflix is on to something and may scare the likes of AMC
     and Cinemark in 2018. Will Smith scored a big win with 11M week-one views.
     This is out of the 53 million Netflix subscribers. Expect the streaming
     service to redefine what Netflix means by building on the critical momentum
     of "Mudbound" and the viewership success of "Bright."
 4.  eCommerce: Amazon will cut its affiliate spending by upwards of 40% in
     2018. This will most likely affect independent media groups and some of
     BuzzFeed's most recent efforts. 
 5.  Digital Media: 2018 will be the year that Youtube influencers take
     ownership over their eCommerce presences and flock to white glove services
     that are fully vertical.
 6.  DNVB: Walmart will buy 1-2 more digitally vertical native brands in 2018.
     They will also test a smaller-box urban storefront, by a different name,
     for their higher end brands. 
 7.  Brand: Brands with evergreen products will reduce Google SEM spend and
     shift to Amazon search products. Remember, Amazon is now a $1B+ advertising
     business.
 8.  eCommerce: Spurred by GGV Capital's belief in China's commerce sector,
     brands will begin spending considerable time working with China's trove of
     mobile-first eCommerce platforms to grow through international channels. In
     2008, it was SEM. In 2012, it was social. In 2016, it was the Soho pop-up.
     In 2018, it will be American exports in China.
 9.  eCommerce: Shopify will develop a 'featured' marketplace for its top
     Shopify and Shopify Plus performers and it will compete against the likes
     of Wish and others. Expect this to be launched in the form of a mobile app
     with one-click purchasing. Tobi, Harley, and crew will also launch their
     first of many private label brands to appear on this marketplace app. 
 10. Digital Media: 🗣2PML will become a leading commerce podcast in 2018. It
     will become the go-to 20 minute pod for polymaths with little time for
     market research, continued education, and Porter's Five Forces analysis. 

Follow @2PMLinks for this thread and other updates. 



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Previous Issues

 * Dec 29
   
   
   NO. 251: 🗣 10 THOUGHTS FOR 2018

 * Dec 22
   
   
   NO. 250: 🗣 LISTEN UP!

 * Dec 18
   
   
   NO. 249: THE DEFINITIVE WHITE PAPER 👀

 * Dec 13
   
   
   NO. 248: THE NINE BOXES.

 * Nov 29
   
   
   NO. 247: WELCOME BACK

 * Oct 22
   
   
   NO. 246: DNVB'S WILL BE JUST FINE.

 * Oct 7
   
   
   NO. 245 WHAT'S OLD {RADIO} IS NEW AGAIN!

 * Sep 20
   
   
   NO. 244: A RARE ARGUMENT.

 * Sep 15
   
   
   NO. 243: ON PUBLISHERS AND ECOMMERCE.

 * Sep 13
   
   
   ISSUE 242: OPENINGS AND CLOSINGS



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