Jill Kravetz

Can heritage brands remain relevant without losing their roots???? One of my favorite topic I covered at eTail™ West with Patricia Vekich Waldron from RetailWire This article beautifully summarizes how we successfully drive growth and innovation while maintaining Hanky Panky’s brand identity and appealing to both our loyal and new customers. ⭐️Understanding Customer Needs: It's essential to understand customer cohorts beyond demographics and focus on their feelings and aspirations to drive product innovation. ⭐️Investing in Innovation: Allocating a portion of the budget to experimental initiatives allows for the freedom to fail and scale successful actions, driving growth. ⭐️Creating Delightful Experiences: Expanding product offerings, enhancing existing items, and creating new experiences are crucial, like our last NYC pop up, for engaging both old and new customers. ⭐️Balancing Heritage and Innovation: Heritage brands must respect their roots while adapting to meet the expectations of today's customers to ensure continued growth and relevance.

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In today’s competitive and value-driven marketplace, brands are under increasing pressure to stand for more than just profits. Mission-based business models, which align a company’s operations and goals with a greater purpose, are not just a trend but a necessity. This shift reflects a continued demand from customers, employees, and a growing number of investors for businesses to make a positive impact on society and the planet. Here’s why adopting a mission-based business model is crucial for consumer brands and the key elements that define these transformative strategies. (Click below to read more...)

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“𝐍𝐢𝐤𝐞 𝐚𝐝𝐝𝐫𝐞𝐬𝐬𝐞𝐬 𝐟𝐥𝐚𝐰𝐬 𝐢𝐧 𝐃𝐓𝐂 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐲 𝐚𝐬 𝐐3 𝐫𝐞𝐯𝐞𝐧𝐮𝐞𝐬 𝐜𝐨𝐦𝐞 𝐢𝐧 𝐟𝐥𝐚𝐭” CEO John Donahoe said the sportswear brand “is not performing at our potential” and needs to lean back into wholesale and product innovation. - RETAILDIVE “𝐒𝐨𝐟𝐭𝐁𝐚𝐧𝐤-𝐛𝐚𝐜𝐤𝐞𝐝 𝐁𝐫𝐚𝐧𝐝𝐥𝐞𝐬𝐬 𝐬𝐡𝐮𝐭𝐬 𝐢𝐭𝐬 𝐝𝐨𝐨𝐫𝐬 𝐟𝐨𝐫 𝐠𝐨𝐨𝐝” It was a roller coaster ride — a short one. Brandless, a San Francisco-based [DTC] eCommerce company that made and sold an assortment of “cruelty-free” products in beauty and personal care, household, baby and pet categories, has shut its doors less than three years after officially opening them in July 2017. - TechCrunch “𝐖𝐚𝐲𝐟𝐚𝐢𝐫 𝐚𝐧𝐧𝐨𝐮𝐧𝐜𝐞𝐬 1,650 𝐣𝐨𝐛 𝐜𝐮𝐭𝐬, 13% 𝐨𝐟 𝐰𝐨𝐫𝐤𝐟𝐨𝐫𝐜𝐞” Wayfair is laying off 13% of its global workforce, including 19% of its corporate team, as it looks to streamline its business and cut out layers of management. The restructuring – the third Wayfair has implemented since summer 2022 – is expected to save the company about $280 million - CNBC “𝐓𝐡𝐞 𝐃𝐓𝐂 𝐏𝐚𝐫𝐭𝐲’𝐬 𝐎𝐯𝐞𝐫. 𝐖𝐡𝐚𝐭 𝐇𝐚𝐩𝐩𝐞𝐧𝐬 𝐍𝐞𝐱𝐭?” The grow-at-all-costs playbook led to a reckoning. Now, some DTC brands are trying things differently. - Built In “𝐎𝐮𝐭𝐝𝐨𝐨𝐫 𝐕𝐨𝐢𝐜𝐞𝐬 𝐅𝐨𝐮𝐧𝐝𝐞𝐫 𝐓𝐲𝐥𝐞𝐫 𝐇𝐚𝐧𝐞𝐲 𝐈𝐬 𝐑𝐞𝐬𝐢𝐠𝐧𝐢𝐧𝐠 𝐅𝐫𝐨𝐦 𝐇𝐞𝐫 𝐂𝐨𝐦𝐩𝐚𝐧𝐲” The shocking news comes days after Haney was forced to step aside as CEO due to the company's reported financial struggles. - Buzzfeed “𝐂𝐚𝐬𝐩𝐞𝐫, 𝐭𝐡𝐞 𝐌𝐚𝐭𝐭𝐫𝐞𝐬𝐬 𝐒𝐭𝐚𝐫𝐭𝐮𝐩, 𝐆𝐨𝐞𝐬 𝐓𝐡𝐫𝐨𝐮𝐠𝐡 𝐖𝐢𝐭𝐡 𝐋𝐚𝐜𝐤𝐥𝐮𝐬𝐭𝐞𝐫 𝐈𝐏𝐎” Casper Sleep, a startup that sells mattresses online, became on Thursday the latest money-losing outfit to get a cold shoulder from Wall Street investors. The lackluster first day of trading did not come close to fulfilling what Casper’s venture-capital investors thought it was worth a few months ago. - Reading Eagle “𝐓𝐡𝐞 𝐝𝐢𝐫𝐞𝐜𝐭-𝐭𝐨-𝐜𝐨𝐧𝐬𝐮𝐦𝐞𝐫 𝐛𝐨𝐨𝐦 𝐢𝐬 𝐜𝐨𝐦𝐢𝐧𝐠 𝐭𝐨 𝐚𝐧 𝐞𝐧𝐝” A once-bustling group of companies [Casper, Allbirds and Peloton], backed by billions in venture capital funding, saw a record year for IPOs in 2021. Now, three years later, most of those direct-to-consumer, or DTC, companies still struggle with profitability. “It’s that profitability angle now that demarcates the winners in DTC from the losers,” said GlobalData Retail’s managing director, Neil Saunders. - CNBC ---------------------------------------------------------------------- DTC is tough - and getting tougher. If even Nike needs strategic wholesale, how much more important is it for smaller DTC brands? B2B/wholesale eCommerce is a CRITICAL channel for DTC brands and the smart ones have already made the move. 🐉𝗜𝗳 𝘆𝗼𝘂'𝗿𝗲 𝗮 𝐃𝐓𝐂 𝘀𝗲𝗹𝗹𝗲𝗿 𝗮𝗻𝗱 𝘆𝗼𝘂'𝗿𝗲 𝗿𝗲𝗮𝗱𝘆 𝘁𝗼 𝘀𝗹𝗮𝘆 𝘁𝗵𝗲 𝗕𝟮𝗕 𝗲𝗖𝗼𝗺𝗺𝗲𝗿𝗰𝗲 𝗗𝗿𝗮𝗴𝗼𝗻, 𝗴𝗲𝘁 𝗶𝗻 𝘁𝗼𝘂𝗰𝗵 - 𝘄𝗲'𝗹𝗹 𝘀𝗹𝗮𝘆 𝗶𝘁 𝘁𝗼𝗴𝗲𝘁𝗵𝗲𝗿.

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Another interesting No Stupid Questions asked by Rachel Brown at Beauty Independent regarding founder's decisions to close their brands. Everyone reads and hears about the success stories but sadly, there are many more failures than successes. Some key lessons learned by the founders in the article include: * Market Realities: Even great products may not succeed if market conditions are unfavorable or if growth becomes unsustainable. * Emotional Strain: Closing a brand is a deeply emotional process that involves reconciling personal attachment with business realities. * Importance of Pivoting: Learning to pivot and recognize when to step away is crucial for long-term entrepreneurial success. The founders in the article cited several specific reasons for brand failure: * High Costs and Lack of Profitability: Many struggled with high operational and production costs, making profitability difficult. Having the right gross margin profile is key to long term profitability. * Market Saturation: Increased competition in the beauty space made it challenging to stand out. Launching a uniquely differentiated and positioned brand is critical in today's market. * Distribution Challenges: Some faced issues with scaling distribution, especially as they expanded into retail. Supporting a retail partner can be capital intensive and still requires the brand to generate demand. Retailers don't build brands, brands build brands. * Investor Pressures: External financial pressures from investors added stress when growth slowed. Choosing your investment partner is critical. At True Beauty Ventures, we believe are unique understanding and experience in the beauty industry mitigates some of this risk, not to mention, the need to be patient and not expect unrealistic growth from a small undercapitalized brand. Cristina Nuñez #beautyinvesting

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My colleagues @Brian and @Catherine delve into the importance of practicality in Retail's AI-driven future. Emphasizing the significance of informed decisions based on tangible business advantages over unrealistic hype and speculation. Discover how pairing AI with practical strategies success.

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Congratulations to StandUp Ventures portfolio company Max Retail on their $15M USD Series A led by Nosara Capital after an exceptional year of growth! Oh how I love optimization problems, and especially ones that support entrepreneurs 😭 Independent retail shops sit on an average of 22% excess inventory at any given time, representing ~$50K-$200K of financial losses each year. For small businesses that are often the pillars of their communities (& frequently women-owned!), these losses are HUGELY impactful. Before Max Retail, options to recuperate them were extremely limited (discounting items far below cost, sending to consignment, or donating for a tax write-off). Alone, a single store in a small town with one or two sizes of a SKU isn't meaningful enough to engage with for zero inventory marketplaces or online retailers, but in aggregate, Max Retail's network of 2,000+ retailers and real-time data acts seamlessly as a single source of new and often hard-to-find supply. Bringing these items online exponentially increases the pool of potential buyers, resulting in immediate cash relief and payouts 4-8x higher than the status quo of liquidation. And the proof is in the pudding. 89% of active sellers are selling inventory every single month, with some sellers making upwards of $250k per year. GMV has exploded 4x YoY, with an incredible 40% of new retailer leads coming from existing customers. The macro omnichannel opportunity for real-time, SKU-level, inventory, pricing, and sales data across the normally siloed brick-and-mortar independent retail market is limitless. Alongside AI-powered pricing and item allocation engines, Max Retail is able to pay sellers the maximum value possible for excess inventory, and help retailers understand live inventory performance and market value of every item they list. This ultimately underpins a foundation for a more efficient and productive market, getting the right products to the right buyers at the right time, place and price. We're so excited to continue supporting the INCREDIBLE Melodie van der Baan alongside the wonderful M13, The Artemis Fund , and Rethink Impact, LP. Onwards and upwards! 🚀 #fundingnews #seriesa #retaildata

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The precarious position of CEOs in #retail and #consumer #packagedgoods (CPG) industries stems from the high volatility and rapid changes in consumer behavior. Unlike sectors like automotive or finance, where purchase cycles are longer and more predictable, consumers in retail and CPG make frequent, easily influenced choices. This makes it quickly apparent when a brand is underperforming, and boards are more inclined to replace leadership in hopes of finding someone who can drive the company to the top of its category. The pressure is intensified by stakeholders’ expectations for radical growth, especially when a predecessor achieved success through incremental improvements. New CEOs often face the challenge of balancing strategic renewal with the need for quick results, all while navigating a rapidly shifting consumer landscape. Longevity in these roles hinges not only on having a compelling vision but also on the ability to adapt and execute effectively, seizing the opportunities that change presents. Ultimately, CEOs who consistently deliver value to both consumers and shareholders will be the ones who thrive in these high-risk, high-reward positions!

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TOP 3 LAST WEEK: 1) Retail returns: An $890 billion problem; 2) When Your Team Bypasses You to Get Things Done; 3) Rethink motivation: Why metrics alone won’t keep your team inspired https://lnkd.in/ektHd2rj #retail #leadership

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Another one that bites the dust... It’s always unfortunate to see established companies like Beachbody make drastic shifts in their business models, especially when it involves downsizing and significant changes for long-standing associates. While the move to transition from an MLM model to a single level Affiliate Program might align with current market trends and financial strategies, it also highlights a broader issue in the MLM / DS industry: a lack of a timely and deeper understanding of the evolving needs and dynamics of the field. In recent years, we’ve witnessed an increasing number of companies struggle with adapting their traditional models to meet the demands of a digital world. The reduction in workforce and changes in compensation structures often leave passionate and dedicated associates in a difficult position. These decisions could be avoided with more strategic foresight and proactive adaptation to market trends, rather than reactive measures that prioritize short term profitability. Beachbody has been a leader in health and fitness, empowering millions of individuals to pursue healthier lifestyles. Yet, decisions like these suggest that companies are still grappling with how to truly support their field while evolving. It's a reminder for all industry players to focus not just on financial restructuring but also on ensuring that they understand and embrace the full potential of their salesforce, providing them with the right tools and opportunities for sustainable success. This transition, while positioned as a path to growth, leaves many loyal associates facing an uncertain future. Let’s hope this serves as a wake-up call for the industry to prioritize both innovation and people, because in the end, it’s the people who make these businesses thrive. #BusinessTransformation #DirectSales #MLM #AffiliateMarketing #Beachbody #IndustryTrends #BusinessStrategy #MarketAdaptation #BusinessEvolution #Omnichannel #HealthAndWellness

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75% of Retailers Have A Website That Doesn’t Mean They All Can Sell Online. It doesn’t mean they understand the power of an Omnichannel. In fact many CEOs are still looking for the ROI on that. I have shared in several different meetings this year that the ROI is DATA. I’ve written about it often. Retailing is about to take another disruptive turn. To understand that, it means you already create trends you don’t chase them. 50-70% of Retailers are chasing the leaders. No surprise at the independent and legacy brand level that have not captured the wave, it may be much higher. Relevance is the key with all that’s coming what’s your plan? #retailing #strategy #ceo #technology #marketing

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“Adopting a Human-Centric Leadership Model: The Future of Retail CEOs” In the dynamic landscape of retail, one truth remains: people are central to all that we do. Recently explored McKinsey’s thought-provoking article on “The Human-Centric Approach to CEO Leadership,” and it resonated deeply with me. In an industry where customer experience is critical, isn’t it time we extend that same dedication to our internal teams? Adopting a human-centric leadership style certainly requires some human approaches: #Empathy Fuels Engagement and drive speed. By understanding our teams’ needs, we nerd to cultivate a culture of trust and motivation. When our employees flourish, so does our business. #OpenCommunication and #Transparent #conversations dismantle barriers and inspire innovation. Let’s ensure dialogue flows freely across all levels. #Flexibility and #Resilience is a must. In a swiftly evolving market, adaptability is not just beneficial—it’s imperative. This applies to both our strategies and the support we provide to our teams. #Investing in People and Growtth is essential to be on top this disruption. Upskilling and Providing opportunities for professional development enhances required knowledge and empowers employees. It builds a stronger organization from within. #Cultivating #Inclusivity within A diverse workforce brings diverse ideas. Celebrating different perspectives leads to better solutions and a more vibrant workplace. As leaders, our role transcends beyond strategies and KPIs—it’s all about nurturing the very people who drive our success.✅✅ #CEO #Business #Leadership #Management #HumanCentric #Agile #Disruptive #Strategy #FutureOfBusiness #Futurism #Symbiotic #HumanMachine #Collaboration #Mckinsey

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I love seeing how Jones Road Beauty and Founder Bobbi Brown is innovating with product launches. Here are a few strategies I'm breaking down from her most recent launch, the Miracle Balm Palette, launched last week. Retail Strategy Spotlight: Jones Road Beauty's Brilliant Move with the Miracle Balm Palette: A perfect example of leveraging customer favorites to drive growth. Here's why it's genius: 1️⃣ Customer-Centric Approach • Builds on the popularity of their limited-edition mini miracle balms • Addresses customer demand for variety and portability 2️⃣ Smart Price Positioning • Lower price point ($32) reduces barrier to entry • Encourages experimentation with multiple shades 3️⃣ Acquisition & Conversion Strategy • Attracts new customers with an accessible product • Potential to upsell to full-size products later 4️⃣ Limited Edition 2.0 • Brings back popular limited mini sized SKUs in a fresh format • Creates urgency and excitement among loyal customers 5️⃣ Travel-Friendly Design • Taps into the growing travel beauty trend • Perfect for on-the-go touch-ups 🔮 My Future Product Predictions: I'd love to see Jones Road apply this strategy to their Face Pencil next. Imagine: • Double-ended pencils with complementary shades • Mini travel pack with 3 shades + blender brush What do you think? How could other beauty brands apply these strategies to their product lines? Share your thoughts in the comments. #RetailStrategy #BeautyIndustry #ProductInnovation #CustomerCentered

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Returns cost retailers an estimated $743 billion in revenue last year, according to the National Retail Federation. That was actually an improvement from 2022, when retailers lost $816 billion on returns. But there's a smarter way forward with returns. By integrating returned products into the resale market, we can simultaneously recover value and reduce waste. This approach does require some investment in: • meticulous inspection • refurbishment • repackaging Advanced tracking systems and data analytics can make all the difference here. Technological innovations like these make the process of putting returns back on the shelf swift and efficient. Fortunately, new third-party vendors offer turnkey resale platforms for retailers. One great example is Recurate (acquired by Trove Recommerce), a startup in XRC Ventures’ portfolio. They provide seamless resale solutions for top brands like Michael Kors, Steve Madden, and The Frye Company. It’s exciting to see the innovation and investment going into this space. By transforming returns into resale opportunities, we not only minimize waste but also maximize value. Which means shoppers, retailers and the planet come out ahead.

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It’s line review season in retail. I’ve been on both sides of the meeting. It's tough to know what to share. Here are six tips I’d share with brands already on the shelf who want to nail their presentations. Tip 1: Be Engaging Buyers are in back-to-back meetings. Be sure to add some sizzle, and personalize the conversation if you know them. Tip 2: Remind them of Who You Are Most buyers manage 50+ brands. They may not recall what the current assortment is. Recall your brand’s “why.” Walk them through the current state and the desired future state. Tip 3: Share *Relevant* Market Performance Buyers don’t necessarily want to hear about the competition. Talk about growth at other retailers if it ties into your desired future state for that retailer. Tip 4: Cover the Business Go through your current business performance. If it’s going well - know your ask for more. If it’s not going well, have suggestions prepared to offer solutions. Tip 5: Provide Positive Updates Share what you’re excited about: a new influencer partnership, a new product launch, new operations, new people on the team. Tip 6: Ask Questions What best practices are you seeing from your top-performing brands? Are you noticing any changes in the consumer that we should be aware of? Maximize this opportunity to talk with the buyers. Share news about your business Gather the intel you can use to help your business grow.

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In today’s retail landscape, merchandisers are overwhelmed with data but often lack actionable insights. They face the challenge of making quick decisions on product selection, inventory, and more, all while navigating fragmented data systems. Traditional BI tools, while useful, can complicate this process with complex dashboards that don’t cater to individual needs. The good news? AI-powered analytics are stepping in to bridge this gap. By integrating generative AI with BI platforms, merchandisers can easily access insights using natural language, simplifying decision-making. For instance, instead of sifting through multiple dashboards, they can simply ask an AI for sales data on specific products across regions. This integration not only streamlines workflows but enhances data-driven decision-making, ultimately improving product assortments and customer satisfaction. As we embrace AI, the future of merchandising is set to become even more intuitive and responsive, giving retailers a competitive edge. Conversations On Retail, Chain Store Age

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👂 Feedback is very useful, whether positive or negative. But when a brand or retailer wants to gather feedback, it is not necessarily when a shopper or buyer wants to give it. If your requests for feedback are going unanswered, think about when you are asking for it and whether you're aligned with when a shopper has something to say. 😠 Typically, people want to share negative feedback immediately when something negative happens. See those feedback requests in airport washrooms just as you leave. If people are leaving negative feedback then and there, someone probably needs to come and clean it or restock it. 🛑 Nothing turns me off faster than receiving a request for feedback before I receive my item and have had a chance to use it. In this case, I don't typically come back to share my feedback unless it's negative. Brands/Retailers need to experiment with feedback request timing and remember when each individual is willing to engage. #ecommerce #customerexperience #customerfeedback

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Listening to couple of podcast channels has been my morning routine on way to work.Building Better CMOs is one of them. Greg Stuart is simply awesome, the way he drives any conversation, the way he modulates his voice (goes low to high so seamlessly in certain moments that need that) , the way he brings in that personal touch is all 100% worth. In addition the kind of leaders he brings in ooze brilliance and inspiration. Greg - I listened to 2 of your podcasts today, so the next post coming up soon. (Ofcourse I took notes!) This one in particular that I listened to today morning is with the high energy Michelle Crossan-Matos . Not a moment to be missed in this conversation. What clarity of thought ! Some of the habits that Michelle shared, I follow as well- -Early morning wake up time -Reading about Leadership -Going for a power walk (I do a power run) -Taking notes on her phone, journaling -Basically preparing your brain for the day There are so many highlights in this conversation, one of the things I lovewhen she says CMOs need to be more of center brain than left or right. Then creating your own framework is important as you move in your career journey . I love her perspective that ----if one got to teach 5 people tomorrow on something, what helps is a framework that is own. I get the essence of it and hence I always accentuate the importance of getting out of your laptop for few moments each day and whiteboarding. I have a big white board in my home study where I keep writing/doodling depicting what's on my mind and tell you what - it is empowering ! Marissa is also the most vocal person in her boardroom and thats such a great sign of a great leader. And yes, she also calls herself the luckiest #CMO in the entire world......because....because her CEO is a former CMO. (All CMOs will relate of this) Another highlight from Marissa - Don't walk away from brand building. And also, if you get an opportunity to work in the 'retail' category ever, don't miss it (a lot of good reasons) PS: I gotta say with 3 eyeliners and 3 mascaras bringing in dimension to your eyes (the essence of it is linked to one's career journey as well!) So, I urge leaders to take out 32 mins and listen in to this! Building Better CMOs Podcast #Podcast #CSuite #Leadership #CMO Ammita Mistry Rudrashish Nag Moneka Khurana Lloyd Pereira

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Started this week sharing laughs with Rick Watson, here in NY 🗽 Rick is a reference to me when it comes to Digital Commerce so it was an honor to have him on OFFBounds where we could talk about many things that I am curious about, such as: ➡️ What happened to DTC? ➡️ The increasing cost of customer acquisition ➡️ Why companies aren't replatforming ➡️ Walmart results The episode will be live next Tuesday, stay tuned! 🎧 #commerce #retail #digitalcommerce #ecommerce

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