Seven latest marketplace updates you should know

#1. Target promotes Lisa Roath to Executive Vice President and Chief Marketing Officer

Lisa Roath previously served as Senior Vice President of food and beverage merchandising. (Source)

• 📈 In her new role, Roath will lead the company’s core marketing functions, including creative, guest marketing strategy, retail brand experience, social media, paid media strategy, and marketing strategy and operations.
• 💼 During her time in the food and beverage merchandising role, Target’s annual food and beverage sales grew by over $5 billion since 2019, and the company established itself as one of America’s largest digital grocers.
• 💡 Roath’s focus on innovation helped quadruple the number of emerging brands in Target’s assortment.

Actionable advice

Prioritize innovation within your own marketing strategies, leveraging digital channels to engage with customers effectively and enhance the guest experience. Additionally, explore incorporating emerging brands into your product assortments to appeal to diverse customer segments and foster loyalty. By emulating Roath’s approach, businesses can foster sustainable long-term growth and stay ahead in today’s competitive market.

#2. Walmart launches a one-of-its-kind digital-first shopping experience in collaboration with athletes, artists and celebrities

Walmart is collaborating with celebrities like Patrick Mahomes, Becky G, and Barbie, to offer customized shopping carts filled with their favorite products. (Source)

• 🏈 Patrick Mahomes, the NFL quarterback, shares his top picks for downtime and family time, including recovery gear and outdoor toys.
• 🎤 Global superstar Becky G reveals her must-have items for staying strong on-the-go during her busy tour season, along with her favorite spices for home cooking.
• 👸 Barbie, the timeless pop culture icon, showcases her favorite summer items, from beauty products to sports equipment, for a perfect summer.
• 🛒 Walmart’s new shopping experience makes it easier for customers to connect with their favorite celebrities and shop their most-loved items.
• 🌟 Walmart aims to provide products that cater to the diverse interests and needs of its customers, from athletes to artists, to anyone who shops with them regularly.
• 🌐 The digital shopping experience will be available at Walmart.com/Live and on Walmart’s Facebook page for live streams of celebrity shopping carts.

Actionable advice

Learn from Walmart’s digital-first shopping experience and leverage the power of celebrity endorsements and personalized curation to enhance your own marketing strategies. By partnering with well-known influencers or celebrities who align with your brand values and target audience, create personalized shopping carts that resonate with customers on a deeper level. This approach adds authenticity and trust, as consumers are more likely to trust recommendations from familiar faces. Additionally, brands can use live streaming platforms like Facebook to showcase these curated shopping experiences, providing real-time interactions with influencers and enabling customers to engage directly with the products they love. This initiative not only fosters a sense of community but also caters to diverse interests and needs, ensuring a more inclusive and engaging shopping experience for their audience. By embracing digital-first approaches and incorporating personalized celebrity curation, brands can attract more customers, build stronger connections, and ultimately drive sales and brand loyalty.

#3. Walmart Open Call 2023 to accelerate growth with a $350 billion commitment towards ‘US Manufacturing’

The  Open Call event provides small business owners and entrepreneurs with the opportunity to pitch their products to be sold on Walmart or Sam’s Club shelves or online. (Source)

• 🗓️ The application period for Open Call is open until August 18, 2023.
• 📅 Open Call will take place on October 24 and 25 during Manufacturing Month 2023.
• 🎟️ Since its inception in 2014, Open Call has provided over 9,000 opportunities for small and medium businesses to grow with Walmart.
• 🚀 Entrepreneurs who earn a “golden ticket” during Open Call get the chance to have their products sold at Walmart, enabling business growth.
• 🤝 All Open Call finalists gain access to mentoring sessions with Walmart leaders and special guests, as well as one-on-one pitch meetings with Walmart and/or Sam’s Club merchants.
• 🚛 Walmart is touring the U.S. with its Walmart: Made Local trailer to discover new Open Call entrepreneurs, starting from July 10 and stopping at various cities like Philadelphia, Cleveland, Indianapolis, and Chicago.

Actionable advice

Capitalize on the information about Walmart’s Open Call and its commitment to U.S. manufacturing to explore potential partnerships and opportunities for your own brand and business. Actively participate in the Open Call application process, especially if you work with an emerging or medium-sized enterprise seeking to expand its reach and grow with Walmart. The “golden ticket” opportunity to have products sold at Walmart can be a game-changer, propelling business growth and increasing brand visibility. By participating in Open Call, brands can gain access to invaluable mentoring sessions with Walmart leaders and special guests, as well as one-on-one pitch meetings, which can potentially open doors for long-term partnerships and collaborations. Overall, this information presents an exciting avenue to connect with one of the largest retailers in the U.S., fostering growth, visibility, and success in the market.

#4. Amazon’s biggest Prime Day Sale ever with $ 12.7 billion spent

Amazon’s Prime Day 2023 saw significant growth in online spending, setting a new sales record. Personalization played a crucial role in attracting and satisfying customers. (Source)

• 💸 U.S. e-commerce sales increased by 6% on July 11 and 6.4% on July 12, reaching a record $12.7 billion for the two days.
• 🛒 6.5% of online orders, totaling $927 million in sales, used “buy now, pay later,” a 20% increase from the previous year.
• 🚗 Curbside pickup was utilized in 20% of online orders on July 12, showing increased expectations for this service during the holiday season.
• 📉 More than half of Prime Day shoppers made purchases they had been delaying until they went on sale.
• 🎄 Retailers like Walmart and Target held promotion events alongside Amazon Prime Day, with their events spanning seven and four days, respectively.
• 💰 Over half of Prime Day items were priced under $20, with an average spend per item of $32.35. The top categories were home goods, household essentials, and apparel and footwear.
• 👩‍💼 The typical Prime Day shopper was a high-income, suburban female aged 35 to 44, with 88% being Prime members and many having been members since 2019 or earlier.

Actionable advice

With a surge in U.S. e-commerce sales, a strong online presence is vital to meet growing market demand. You can draw valuable insights from Amazon’s Prime Day guidelines to optimize your own stores and promotions effectively. For instance, by adhering to ad policy and using the Featured Deals widget (FDW) carefully, you can create promotional messaging that attracts more customers, and drive sales. You must also collaborate with major retailers for joint promotions, targeting the typical Prime Day shopper profile – high-income, suburban females aged 35 to 44 and long-time Prime members – as this can enhance brand visibility and resonate with specific audiences. Using these insights strategically enables seizing opportunities and adapting to consumer behaviors for increased sales during peak shopping periods.

#5. Etsy to sell Elo7, its Brazilian marketplace citing ‘underperformance’

The acquisition of Elo7 did not meet expectations due to challenges in the macroeconomic environment, leading to a decision to sell it to a Brazilian corporation. (Source)

• 🏠 Etsy’s growth strategy included creating a “House of Brands” targeting opportunities beyond its core marketplace.
• 📈 Etsy’s House of Brands initially had four members: Etsy, Reverb, Depop, and Elo7.
• 💰 Elo7 was acquired for $217 million in 2021 to tap into the Latin American market.
• 🌐 Elo7 was already a top 10 e-commerce company in Brazil with 1.9 million active buyers and 56,000 active sellers at the time of acquisition.
• 📉 Etsy’s growth has slowed down after the pandemic peak, with a decline in gross merchandise sales and new buyers.
• 🤝 Etsy plans to focus on improving the buyer and seller experiences, leveraging AI technology to enhance search and shipping processes.

Actionable advice

The decision to sell Elo7 due to underperformance underscores the significance of conducting thorough market research and adapting strategies to changing conditions to remain competitive. Businesses must invest in technology, particularly AI, to enhance the customer journey which can lead to improved buyer and seller experiences. Brands should also adopt a long-term vision, remaining committed to delivering value to customers and investors, even during challenging periods. By applying these insights, marketers can position themselves for sustainable growth, adapt to market changes, and create a seamless and valuable customer experience.

#6. FTC files lawsuit against Amazon over deceptive practices for Amazon Prime

The lawsuit represents the FTC’s most significant action against such practices and follows a months-long investigation into Amazon’s Prime practices. (Source)

• 🎯 Amazon used manipulative “dark patterns” to trick consumers into unknowingly enrolling in automatically-renewing Prime subscriptions.
• 🔄 Amazon intentionally complicated the cancellation process for Prime subscribers to deter them from canceling.
• 💰 Amazon’s bottom line influenced the company’s decisions to slow or reject changes that would have made it easier for users to cancel Prime.
• 🛑 The FTC’s complaint, currently redacted, accuses Amazon of nonconsensual enrollment and violations of the FTC Act and the Restore Online Shoppers’ Confidence Act.
• 🔀 During the checkout process, consumers were presented with multiple opportunities to subscribe to Amazon Prime, making it difficult to purchase items without subscribing.
• ❌ Amazon implemented a multi-step cancellation process, redirecting consumers to pages with offers to continue the subscription or turn off auto-renewal before allowing cancellation.
• 🕵️‍♂️ Amazon executives failed to address the issues until the FTC investigation and attempted to delay and hinder the Commission’s investigation.

Actionable advice

Businesses must take a leaf from Amazon’s lawsuit to reinforce ethical practices and transparent user experiences in their organization. By prioritizing intuitive user experience design, clear communication, and easy cancellation options, they can build trust and reduce customer frustration. Besides, compliance with consumer protection regulations is crucial, necessitating continuous awareness and adherence to legal requirements. Understanding the impact on customer perception, brands should ensure transparency in subscription models and cancellation processes to maintain positive relationships. Overall, marketers must emphasize ethics, optimize user experiences, comply with regulations, engage proactively, and manage customer perception appropriately.

#7. Walmart opens largest tech fulfillment center in Indiana

Walmart aims to reach 95% of the U.S. population with next-day or two-day shipping through these new fulfillment centers. The company is combining people, robotics, and machine learning to optimize its fulfillment processes. (Source)

• 📦 The facility combines people, technology, and machine learning to increase order capacity and expedite shipping.
• 💼 The McCordsville center will employ over 1,000 associates and offer new career pathways, including tech-focused jobs.

Actionable advice

Draw from Walmart’s new fulfillment center model to enhance their logistical and customer experience by highlighting the increased order capacity and faster shipping. Brands and businesses can especially focus their attention on the supply chain modernization journey within their firm with the help of machine learning and AI-powered robots. Besides, drawing inspiration from its philanthropic initiatives, marketers can strengthen their own community engagement efforts, thereby building a positive brand reputation.

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