Good-Bye Streaming Wars, Hello Retail Wars A lot of people are asking the question: why is Saks buying Neiman Marcus? They are old retail brands. But, to be honest, they are two of the bigger brands on LTK in affiliate marketing and the audience that follow those brands have huge purchase power. Gen X, Millennials, and potentially even older Gen Z have an affinity for the brands. As online commerce takes over the retail world, the tech companies are beginning to stake their claim. Amazon bought MGM for the IP library, and I believe they are part of the Saks/Neiman's deal for the same reason. Retail IP that aggregates high end brands. One of our clients, Anna Daly, drove $30K worth of sales for Saks on LTK through 18K clicks. That's a pretty solid number for one of the brands that she pushes on LTK whose platform has over 40M active consumers. Having said that, Ash & Em drove $334K worth of commerce across their Amazon shopping in the same time period. Now, with further incentives given to them for Saks and Neimans, that would be very big for Amazon as they begin to aggregate the buyers through their Affiliate sales program. What happened with Tech companies buying up studios, might be happening with retail. Look at how Amazon uses Whole Foods for returns. That also brings foot traffic to Whole Foods. I'm sure you will soon be able to do Amazon returns to Saks and Neimans. More foot traffic and more upsells while there. Retail sales driven through LTK creators making content is over $4.1B. I wonder if LTK will begin targeting to acquire some retail brands to make them exclusive on their platform or overall deals with some top performing creators, much like Netflix made deals with big show runners like Ryan Murphy and Shonda Rhimes for content. While we still don't know how Amazon will strategize with the two retail IP's, will there be a race to acquire retail brands or make exclusive deals with strong affiliate marketers on these shopping networks? I believe this is just the beginning. Thoughts? #influencermarketing #creatoreconomy #onlineretail
Isabel Smith
5mo
How’d you get so smart?!:)
Jordan Benedict
5mo
Listen - can we just bring back Barney's?
Darren C.
5mo
💯 I suspect Off 5th and Last Call have a lot to do with this.
Rian R. Bosak
5mo
Blockbuster/Netflix all over again.
Naomi Lennon
5mo
Fascinating! Thank you for this, Larry. You are my go to on this space for sure.
Humble Strategic Advisor. Global reach & curiosity. Father. Intend to leave world better than I found it.
5moAppreciate your behind-the-curtain insights into how you make magic with, and for, your clients (and their clients). Asked a senior executive buyer friend of mine her thoughts on this, she responded; "Amazon desperately wants to break into high end products. They have all the low end Chinese sellers. Tapping into the high end will drive top line and profitability. Also they want to be more involved with social commerce. Social commerce is the next frontier in retail. TikTok is killing it." Underscores what you are saying. Keep punching :-)