Europe ecommerce, European online retail, Europe web sales

A Danish B2B AI and ecommerce vendor eyes the U.S. for expansion

Mark Brohan — Mon, 19 Feb 2024 18:00:13 +0000

A Danish ecommerce platform developer hit the jackpot, raising big money from a group of investors. And part of how Go Autonomous will use the money is to launch operations for an expansion into the U.S.

All systems go for Go Autonomous expansion

Go Autonomous has secured $10.3 million in funding from Octopus Ventures and Ridge Ventures, with participation from existing investors EIFO and 42Cap, the company says.

“We’re excited to accelerate our product adoption in Europe and the U.K. and begin laying the groundwork for our expansion into the USA, thereby further reinforcing our commitment to revolutionizing the landscape of B2B commerce software,” says Go Autonomous founder and CEO Bjarke Ruse Sejersen.

Go Autonomous has developed artificial intelligence (AI) and software-as-a-service (SaaS) applications that it says identifies the intent of emails arriving in an inbox, extracts and structures the necessary information, and connects it into enterprise systems in real time, enabling end-to-end automation of quotes and orders.

“We saw the opportunity to simplify transactional communication without changing customer behavior,” says Ruse Sejersen. “Our platform not only streamlines B2B transactions but also significantly improves response times, resulting in a more efficient, profitable, and more sustainable growth — we call it Autonomous Commerce.”

Go Autonomous has established customers such as Danish pump manufacturer Grundfos, and Saint-Gobain Distribution Denmark.

The company did not release a U.S. market launch date.

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Away will lay off 25% of staff

Mary Meisenzahl — Thu, 15 Feb 2024 18:36:10 +0000

Away said layoffs will impact 25% of its internal staff, Retail Dive first reported Feb. 14. The retailer did not share how many total employees it has.

The direct-to-consumer luggage brand is undergoing a larger restructuring that also includes “the elimination of a traditional executive team structure,” according to a statement shared with Retail Dive.

Staffing changes were made because “the team recognizes the need for a more nimble approach amidst the changing consumer landscape,” according to the statement.

“We’re reconfiguring the traditional exec team structure in order to promote better decision-making,” CEO Jen Rubio told Inc. “What I think this is doing is setting us up to be able to grow the right teams to work on the right projects.”

“Disruption has always been at the core of our company’s DNA,” the spokesperson said in a statement. “Away is dedicated to delivering the highest-quality travel products and experiences to our customers, and we believe that these steps will better position us to continue to be an innovative leader in the category.”

Away is No. 391 in the Top 1000, Digital Commerce 360’s ranking of North America’s leading retailers by online sales.

Changes at Away

Away held an earlier round of layoffs in May 2023. At the time, it cut 22 employees, including chief commercial officer Laura Willensky.

In 2023, the retailer also expanded its executive team. It hired Carissa Barrett as vice president of retail. She previously worked at Byredo, Saint Laurent, and Prada (No. 187 in Digital Commerce 360’s Europe Database). At the same time, Away hired Amanda Brody as vice president of brand. Brody previously worked at L’Oreal (No. 17 in Europe) and Charlotte Tilbury.

In January 2023, Away brought on Carla Dunham as chief marketing officer with a mandate to increase marketing spending and capitalize on post-pandemic travel.

Away may have grown its executive team too quickly, Rubio told Inc.

“I was really proud that Away was able to attract people with such impressive accolades and such great experience,” she said. “Maybe I was in a little bit of a rush to have the company grow up so quickly, and in the midst of that, we lost a little bit of the magic that got us here.”

Away’s possible sale

Away was exploring a potential sale in 2023, Bloomberg reported.

Rubio told Inc. that’s not the plan for 2024. However, “there has to be some plan on the horizon” for an IPO or acquisition eventually, she said.

This year, Away will focus on increasing the number of product launches and working with retailers on wholesale, according to Rubio.

Other online retail and ecommerce layoffs

Away joins other retailers and marketplaces in announcing recent layoffs. EBay plans to lay off 1,000 workers, 9% of its total workforce. EBay ranks No. 6 in Digital Commerce 360’s Global Online Marketplaces database. The database ranks the 100 largest such marketplaces by third-party GMV.

Macy’s, Amazon, and Wayfair also all cut their workforces in the first month of 2024. In addition, REI announced that it would lay off 357 employees, about 2.2% of the retailer’s total workforce, The Seattle Times reported.

Macy’s ranks No. 17 in the 2023 Digital Commerce 360 Top 1000. Amazon ranks No. 1, Wayfair ranks No. 10, and REI ranks No. 67.

Levi Strauss (No. 191) also said it would lay off 10% to 15% of its corporate workforce, and Estee Lauder (No. 43) will lay off 3% to 5%.

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3 ways AI transforms the ecommerce customs declaration process

Emily Newton — Mon, 12 Feb 2024 14:00:18 +0000

Emily Newton

A smooth customs process is essential for getting ecommerce goods to their destinations in the expected time frames. However, standard customs forms are extremely detailed, with dozens of fields to fill. People are increasingly interested in how artificial intelligence (AI) could streamline things.

1. Completing Customs Forms More Efficiently

Even conscientious people make errors when providing information on customs documents. That might mean they put details into the wrong fields, use the wrong tariff codes to classify ecommerce documents, or make other mistakes, ultimately extending the time frames for parcels reaching their destinations or resulting in the packages getting returned to the senders.

Many optical character recognition tools have AI features to improve their functionality. People can use these options to pull data from electronic paperwork automatically and use it for customs forms.

Phlo Systems is a digital forwarder based in the United Kingdom working on a chatbot to fill out customs forms. Training is underway and responses have about an 80% accuracy rate, showing the solution’s potential. As of November 2023, the company’s CEO and founder expected to complete customs forms with the tool in three to six months.

Although AI can shorten the time necessary to complete customs forms, humans should always supervise the process and double-check the results. Well-trained algorithms are not perfect, so computing power and human oversight are an excellent combination to assist those dealing with exported products.

2. Linking Customer Purchases to Customs Form Data

Businesses may also expand the functionality of existing ChatGPT tools that bring AI to ecommerce, making them improve customs documents, too. Technology ecommerce brand Newegg released a customer-facing ChatGPT tool in July 2023 that suggests products for people wanting to build computers based on details they input about budget, performance requirements and other specifics.

The tool compiles all the options into a list people can review before checking out at the site. It is easy to imagine an accompanying AI product Newegg team members could use to populate customs forms based on what a customer ultimately purchases from the suggested list. Then, the items are more likely to be classified and described correctly on the customs forms. Tariff classifications determine duty rates and taxes on imports, making their accuracy critical.

Ecommerce leaders could also use AI to track trends that enable more accurate customs data. Perhaps a large percentage of overseas shoppers purchase a specific in-demand item and nothing else. AI might accelerate the process by automatically populating the product-specific customs form fields in such cases. Then, there is less to do because people only need to check the information that varies with each customer.

3. Stopping False Declarations and Counterfeit Goods

Possibilities also exist for customs agents to use AI tools to highlight abnormalities associated with illegal goods or items declared incorrectly. Artificial intelligence excels at processing large quantities of information and catching things humans would miss. Many banks use it to monitor for fraudulent transactions because it can detect those instances more accurately than people

If people make false declarations on customs documents, they typically do that to reduce their import tax and duty-related obligations. Many border patrol agents use artificial intelligence to assess which shipping containers to open for further inspection.

Some ships reach ports bearing 24,000 containers, making it impossible to inspect them all. However, the customs officials working at a Belgian port rely on predictive AI models to flag which ones to check. The algorithms make decisions based on customs declarations and data from goods previously requiring inspections.

Even so, illegal goods can slip past border agents, which may result in counterfeit products reaching ecommerce sites. More companies are responding by using or offering AI tools to combat these emerging circumstances.

One enterprise specializing in the luxury goods and sneaker markets built an artificial intelligence-driven product to compare photographs of legitimate items with those sold online. The software compares approximately 2,000 to 4,000 characteristics so consumers or retailers can feel more confident about authenticity.

Some ecommerce marketplaces could use counterfeit protection as a selling point to attract new customers. Suppose first-time visitors to a shopping website sees a banner informing them that all products above a specific monetary value receive anti-counterfeit screenings before getting shipped to recipients. Such a claim gives consumers peace of mind, particularly before buying high-value, unique or collector’s items.

Will Artificial Intelligence Improve Customs Processes?

AI for customs declarations and processing is still in the early stages, with decision-makers from many businesses still in the planning process. However, as more of them try real-world applications, artificial intelligence should make a bigger and lasting impact on paperwork and goods movement. The results could assist ecommerce companies with administrative tasks associated with import and export paperwork, plus support border patrol officials with spotting suspicious cargo or incorrectly declared products.

About the author:

Emily Newton reports on how technology disrupts industrial sectors. She’s also the editor-in-chief of Revolutionized, covering innovations in industry, construction, and more.

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Under Armour ecommerce increases 2% in Q3

Abbas Haleem — Fri, 09 Feb 2024 20:01:52 +0000

Echoing comparable results from its fiscal second quarter, Under Armour Inc. reported 2% growth in ecommerce revenue during its fiscal 2024 third quarter, which ended Dec. 31, 2023.

Under Armour ecommerce represented 45% of total direct-to-consumer revenue in the quarter, the company announced Feb. 8. As a whole, Under Armour DTC sales increased 4% to $741 million. Part of that increase came from 5% growth of in-store revenue.

Meanwhile, Under Armour wholesale revenue decreased 13% to $712 million.

Total third-quarter Under Armour revenue decreased 6% to $1.5 billion, in line with the company’s outlook. Operating income was $70 million, and net income was $114 million. Meanwhile, Under Armour inventory decreased 9% to $1.1 billion.

Under Armour is No. 97 in the Top 1000. The Digital Commerce 360 database ranks North America’s leading online retailers by their web sales.

Under Armour ecommerce sales

President and CEO Stephanie Linnartz said in a call with investors that the retailer is working to improve mobile speed, search algorithms and product description pages, among other functionality fixes. She said the retailer’s ecommerce division has done “great work” to improve conversion and have a more functional website and Shop App.

“We need for ua.com and our Shop App to be the most premium expression of our company,” Linnartz said. “It’s our largest storefront when you think about it. So we are going to reduce our dependency on promotions.”

That could reduce the brand’s revenue, she added, saying it will drive profitability.

“Simply put, ua.com will become a showcase for our brand,” Linnartz said.

Under Armour revenue by region

In North America, Under Armour revenue declined 12% year over year to $915 million in Q3. Under Armour revenue in Europe, the Middle East and Africa (EMEA) grew 7% to $284 million. Asia-Pacific revenue grew as well, up 7% to $212 million. In Latin America, Under Armour revenue grew 9% to $70 million.

UA Rewards program continues to grow

Nearly 3 million members have enrolled in Under Armour’s loyalty program, UA Rewards, “which is well ahead of the target” for fiscal 2024, Linnartz said.

Members have purchased premium products more frequently than non-members program’s first few months, she said.

Under Armour earnings

For the fiscal third quarter ended Dec. 31, Under Armour reported:

Under Armour revenue decreased 6% to $1.49 billion.
Net income decreased to $114.1 million from $121.6 million in the year-ago quarter.
Under Armour ecommerce revenue grew 2%. The retailer did not attach a dollar amount to the growth.

For the nine months ended Dec. 31, Under Armour reported:

Revenue decreased to $4.37 billion from $4.50 billion in the year-ago period.
Net income grew to $232.3 million from $216.2 million in the prior-year’s period.

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s last quarter’s Under Armour ecommerce update.

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Estee Lauder announces layoffs in Q2 earnings

Mary Meisenzahl — Wed, 07 Feb 2024 18:58:26 +0000

The Estee Lauder Cos. Inc. will lay off 3% to 5% of its global workforce this year, it said in a Feb. 5 second-quarter earnings call. Those job cuts will impact up to 3,100 of the beauty retailer’s 62,000 employees, The Wall Street Journal reported.

Layoffs are part of a multi-year plan to rebuild profit margins in 2025 and 2026, Estee Lauder said.

“We are focused on strategically leveraging our strengths to accelerate our return to more sustainable profitable growth while elevating our consumer activations and increasing our operating agility,” chief financial officer Tracey Travis said. “The restructuring program is designed to right-size and streamline select areas within our organization, which unfortunately necessitates us making the difficult decision of an expected net reduction in positions globally of 3% to 5%.”

Estee Lauder ranks No. 43 in the Top 1000, Digital Commerce 360’s database of the largest North American e-retailers by online sales.

Wayfair (No. 10 in the Top 1000), Amazon (No.1), Macy’s (No. 17) and Levi Strauss (No. 191) all also announced recent layoffs.

What were Estee Lauder’s financial results?

Estee Lauder reported net sales declined 7% to $4.28 billion in its second fiscal quarter ended Dec. 31.

Skin care made up the largest portion of sales, accounting for $2.17 billion in the quarter. That was a decline of 10% from $2.43 billion in the year-ago period. Makeup sales also declined, down 8% year over year to $1.17 billion. Fragrance sales grew slightly to $737 million from $734 million. Meanwhile, hair care sales declined 5% to $173 million.

The retailer attributed much of the sales decline to waning demand in China.

“This decline was primarily driven by the slowdown of overall prestige beauty in mainland China,” CEO Fabrizio Freda said in a statement. Online sales in China also declined, with worse than expected performance on Double 11 Day, also known as Singles Day, on Tmall. Tmall is an Alibaba-owned marketplace. Tmall is No. 2 in the Global Online Marketplaces Database, Digital Commerce 360’s ranking of the largest such marketplaces by gross merchandise value. Brick-and-mortar sales increased in China, but they were more than offset by the online decline.

Net sales in the Asia Pacific region fell 7% year over year, and the retailer lost some market share there, Freda said. Net sales in the Americas declined 1%. That was driven by decreasing demand in North America, partially offset by growth in South America. In Europe, the Middle East, and Africa, net sales declined 14% in the period. Part of the decline is due to rightsizing inventory levels, Estee Lauder chief financial officer Tracey Travis said, with 2% attributable to “business disruptions in Israel and other parts of the Middle East.”

Estee Lauder earnings

For the fiscal second quarter ended Dec. 31, 2023, Estee Lauder reported:

Net sales declined 7% to $4.28 billion.
Gross profit declined 8% to $3.13 billion.

For the six months ended Dec. 31, 2023, Estee Lauder reported:

Net sales declined 9% to $7.80 billion.
Gross profit declined 12% to $5.57 billion.

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports.

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Ikea launches generative AI assistant

Mary Meisenzahl — Tue, 06 Feb 2024 18:17:15 +0000

Ikea released a new generative artificial intelligence (AI) shopping tool, the retailer announced Feb. 5. The tool is available in the OpenAI GPT store with the $20 per month Plus membership in the U.S. Ikea says it will expand the tool to other markets in 2024.

“The new IKEA AI Assistant on GPT Stores is an ongoing initiative, and the continuation of a journey that looks to enrich the retail experience and explore additional avenues to interact with our customers and coworkers, as they help us improve and develop further,” Parag Parekh, global chief digital officer for Ikea Retail, said in a statement.

Ikea is No. 7 in the Europe Database, Digital Commerce 360’s ranking of the largest online retailers in the region.

How does Ikea’s generative AI assistant work?

Consumers can access the Ikea AI assistant through ChatGPT. Users can ask questions about Ikea’s catalog and product availability at a specific store. A customer can tell the tool that he is looking for a dining table that seats eight, and ChatGPT will respond with images of products that fit the description, along with prices and a look at average customer ratings, according to an example video Ikea shared. It can also provide a link directly to checkout with the item on Ikea’s website.

Ikea’s generative AI assistant is available in the U.S.

Users can also ask for design tips, or ask the tool to show them furnishings within specific parameters. For example, ‘’Show me a cozy living room layout for a small apartment with the use of sustainable materials.’’ Requests can be more specific, too, asking how certain Ikea products would look together in a kitchen, for example.

“We are taking a pragmatic, execution-focused approach, learning by doing and capitalizing on our early efforts of a Responsible AI framework. We activated a broad ecosystem of partners to bring to life several experiments, so that we can take part in the AI evolution as we shape our company strategy,” Francesco Marzoni, chief data and analytics officer at Ikea Retail, said in a statement.

Consumer-facing generative AI

Ikea joins other major retailers in releasing generative AI tools consumers can use to find and purchase goods online. Amazon.com Inc. recently debuted Rufus, a new generative AI shopping assistant trained on Amazon’s product catalog. So far, the assistant is available to a small subset of U.S. customers to answer shopping questions and make recommendations, Amazon said. It will roll out to all U.S. customers in a few weeks.

Walmart is also rolling out ways consumers can use generative AI as they shop. Walmart released a new generative AI-powered search capability in its app at the Consumer Electronics Show in January.

The search function uses Microsoft’s large language model (LLM) alongside Walmart’s data to give consumers relevant results across product categories. Walmart CEO Doug McMillon gave the example of a shopper hosting a Super Bowl watch party. Rather than searching for a new TV, chicken wings, chips, and other essentials, one search would generate all of these items, he said, without the user manually inputting the specifics of each type of product.

The generative AI search will also take into account factors about the specific app user. A consumer’s location, search history, and other relevant information will be used to further refine their results, McMillon said.

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Deckers announces new CEO

Mary Meisenzahl — Mon, 05 Feb 2024 18:59:28 +0000

Deckers Brands announced president and CEO Dave Powers will retire on Aug. 1, 2024. Powers will be replaced by Stefano Caroti, who is currently chief commercial officer. Powers will remain on the board of directors through 2025, and Caroti will be nominated to the board this year, the company said.

Deckers is No. 74 in the Top 1000, Digital Commerce 360’s ranking of the largest North American online retailers.

“Serving as CEO of Deckers has been a great honor, and I am incredibly proud of our accomplishments to date,” Powers said. “Since joining Deckers in 2012, we have experienced explosive growth driven by incredible — and still increasing — brand heat across UGG and HOKA. Our organization has proven to be incredibly resilient, and we have worked with agility to continuously achieve our goal of doing good and doing great. I’m confident Deckers will continue to excel throughout this transition and into the future with Stefano at the helm, and I wish all my colleagues the best as we begin our next chapter.”

Stefano Caroti will take over as CEO on Aug. 1.

Deckers’ new CEO

Caroti joined Deckers in 2015 as president of omnichannel, a position he held for nearly eight years. In April 2023, he was promoted to chief commercial officer and interim president of Hoka.

Prior to joining Deckers, Caroti spent decades elsewhere in the footwear industry. His career has included six years at Puma as managing director and chief commerce officer. Before that, he held various positions at Nike. Caroti was vice president of EMEA (Europe, Middle East and Africa) commerce, and vice president of EMEA footwear, Deckers said. He also worked as general manager for Germany and Italy.

Puma ranks No. 79 in Digital Commerce 360’s Europe Database, and Nike also ranks No. 9 in the Top 1000.

“It is a privilege to step into this role as we continue to build on Deckers’ strong momentum,” Caroti said. “Over the next six months, I look forward to working with Dave, who is a great mentor, colleague and friend, to continue executing on our strategy and ensure a smooth transition. With our experienced management team, dedicated employees, and innovative products that resonate with consumers around the world, Deckers is well positioned to continue cutting through a highly competitive marketplace and take advantage of the many opportunities ahead.”

How is Deckers doing financially?

Deckers just reported revenue grew 16% to a record $1.56 billion in its fiscal third quarter ended Dec. 31. Meanwhile, direct-to-consumer sales grew 22.7% in the quarter, accounting for $858.1 million in sales.

“Our brands delivered Deckers’ largest quarter in history, with record revenue and earnings as both HOKA and UGG drove exceptional performance in the quarter, led by our DTC channel and high levels of full-price selling,” Powers told investors.

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Fanatics appoints three new executives

Mary Meisenzahl — Fri, 02 Feb 2024 14:39:02 +0000

Fanatics Commerce announced the appointments of three new executives on Jan. 31. Fanatics Commerce is the design, manufacturing and selling arm of Fanatics Inc., which sells 1.5 million sports-related SKUs across more than 1,000 different brands.

Fanatics ranks No. 57 in the Top 1000. The Top 1000 database is Digital Commerce 360’s ranking of the largest North American online retailers by web sales.

Fanatics new appointees

The retailer appointed Stephen Dowling as president of the international segment. Dowling is tasked with growing the company outside of North America, based out of Fanatics’ Manchester, United Kingdom, office. Fanatics operates more than 80 offices, manufacturing facilities, and fulfillment centers around the world, with a recent push for international development, it said.

Dowling joined Fanatics from Adidas, where he had worked since 2017, according to his LinkedIn profile. Since 2021, Dowling served as senior vice president of digital growth at Adidas, overseeing a $5 billion direct-to-consumer ecommerce business. Previously, he worked as the global head of direct-to-consumer ecommerce at Unilever.

Adidas ranks No. 16 and Unilever ranks No. 68 in the Top 1000 Europe database.

The retailer also appointed Valerie Love as chief people officer. Love previously worked as senior vice president of human resources at The Coca-Cola Company and held HR positions at Johnson & Johnson (No. 371 in the Top 1000) and General Motors.

Justin Tsai will lead Fanatics Commerce in the newly created chief product officer role. Tsai was previously an operating executive at technology investment firm Silver Lake. Prior to that role, he spent nearly eight years in product management and growth at GoDaddy.

Fanatics Commerce CEO on the news

“I am thrilled to welcome Stephen, Valerie and Justin to Fanatics Commerce, all of whom will play an invaluable role as we work toward elevating the experience of being a fan across all corners of the world,” Fanatics Commerce CEO Andrew Low Ah Kee said in a statement. “All three are highly regarded executives who bring a wealth of knowledge, expertise, and energy to the Fanatics Commerce business that will help propel us into our next chapter.”

All three appointees will report to Low Ah Kee, who became CEO of Fanatics Commerce in September 2023. He joined from real estate ecommerce platform OpenDoor and previously worked at GoDaddy. Low Ah Kee replaced former Fanatics Commerce CEO David Mack, who retired in August.

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Why Benefit Cosmetics made a home in the TikTok Shop

Abbas Haleem — Thu, 01 Feb 2024 15:41:14 +0000

When stores began opening after COVID-19 restrictions, Benefit Cosmetics “expected to see a lot of people return to stores quite quickly,” said Ursula Casserly, ecommerce manager at Benefit Cosmetics UK.

In reality, she said, the return to stores was “a steady incline rather than immediate.” But in 2023, the retailer saw consumers move back into stores for a more interactive, immersive experience, she said. Online, though, one trend gained a lot of traction among Benefit Cosmetics consumers: TikTok Shop.

“We’re seeing a huge increase in sales for our Benetint, which is a really original product of ours. It’s been around for many years,” Casserly said. “That has been influenced by the popularity of TikTok and TikTok Shop. We’ve also seen a big success with the launch of our pore care line, which was six products.”

Benefit Cosmetics joined TikTok Shop while the marketplace was still in beta. The ecommerce expansion for the social platform launched in the U.S. in September 2023. As of Q4 2023, TikTok Shop sales accounted for 4% of Benefit Cosmetics’ direct-to-consumer sales. Casserly said Benefit Cosmetics’ goal is to grow that to 10%. Similarly, DTC sales represent about 4% of total business, she said.

Benefit Cosmetics’ parent company, LVMH, is No. 3 in Digital Commerce 360’s Europe Database. The database ranks the region’s largest online retailers by web sales.

The benefit of being on TikTok Shop

Casserly said that although Benefit Cosmetics sometimes nudges consumers from TikTok to the retailer’s website, it encourages its consumers to shop within the app.

“It’s a dangerous place,” said Ella Pearn, Benefit Cosmetics UK’s senior digital public relations and influence manager, joking about how easy it can be to spend on TikTok. Pearn said the hashtag “TikTok made me buy it” being viewed tens of billions of times is a testament to TikTok Shop’s influence. (Videos posted using the hashtag had 77 billion views as of November 2023, CNBC reported.)

“Instead of adding hurdles to the buying process, TikTok has created a platform that allows its users to seamlessly complete orders without leaving the app,” Pearn said. “Then, with everything in one place, they can stay exactly where they want to be and funnily enough that is TikTok. Social commerce is certainly the future.”

Still, Casserly said the average Benefit Cosmetics customer on TikTok Shop skews “a lot younger.”

“The average spend is probably a little bit less because it’s a new way of shopping, so there is some nervousness around purchasing through there. But we are seeing that start to grow,” Casserly said. “There’s a lot of offering on there that isn’t necessarily brands you would see on websites as well. There’s a lot of TikTok-grown beauty brands that have a lot of success through TikTok Shop but not necessarily in other marketplaces. That’s another difference. It’s a different group of competitors.”

Benefit Cosmetics displays its products on TikTok Shop, where it has sold more than 96,500 items.

Advertising versus organic posts on TikTok

Benefit Cosmetics began using TikTok in March 2020, Pearn said, well before TikTok Shop launched its beta. The retailer then “started advertising with brand campaigns relatively early on, when the costs were relatively pricy. We took part in a number of brand campaigns with the one-day max format, possibly Q2/Q3 of 2020. That brand activity’s always been there. Then we sort of moved to working more with influencers, which has always been a natural step for Benefit as a brand.”

Benefit Cosmetics is “very much in digital media. It’s our largest outlet,” she said. She said Benefit Cosmetics most heavily invests in TikTok, with plans to continue growing that investment in 2024. The other top digital media channel is Meta’s platforms, she said.

One of the benefits to being on TikTok, she said, is that the “for you” page can show content from anyone, anywhere. And although some brands have found success in organic TikTok posts, as opposed to in-app ads, “there’s certainly a method to the madness of the TikTok platform,” she said.

In addition to using the TikTok Shop for sales, Benefit Cosmetics has a TikTok page to teach consumers about its beauty products and tools.

Historically, she said, Benefit Cosmetics would primarily use social media ads to target consumers interested in beauty products. The brand would then create lookalikes based on those users. TikTok, though, allows the content to be from anyone on anything, versus other platforms that use attributes to target consumers, she said.

“We’re still learning and still defining what that really looks like for us,” Pearn said. “You can create something you think is going to work incredibly well and then it doesn’t. After a decade of what has been meticulously staged, edited, polished content that’s been heavily curated across all social media platforms, we really find ourselves in a bit of a creative renaissance. TikTok has paved the way for that and for a new, much more authentic style of content. It’s leveling the playing field, and even things like livestreaming that TikTok offers makes that incredibly exciting.”

She said that makes both organic and paid TikTok content more accessible. Benefit Cosmetics previously used Instagram livestreaming when that functionality was new, but “we never saw the same results as we see on TikTok.” The brand also has livestreamed on the television network QVC, she said.

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H&M names new CEO as Helena Helmersson steps down

Brian Warmoth — Wed, 31 Jan 2024 22:00:06 +0000

Daniel Ervér, the current head of retailer H&M, will expand his role to become the CEO of its parent company, H&M Group announced on Wednesday. As the new H&M CEO, Ervér will replace Helena Helmersson, who is stepping down.

Who is H&M’s new CEO?

Daniel Ervér, CEO of H&M Group (Photo credit: H&M)

The move marks the latest advancements in Ervér’s 18-year career at H&M. Ervér began in a summer trainee capacity in 2005, going on to rise up through merchandising and management positions. In retaining his current responsibilities running H&M, he will face ongoing challenges in a competitive fast-fashion landscape. The group’s sales were down 4% year over year in its most recent quarter, which ended Jan. 29. (That figure is calculated in local currencies.)

“As Helena has now chosen to leave the CEO role, we are pleased to appoint Daniel as CEO of the H&M group today,” said Karl-Johan Persson, chair of H&M Group, in a statement. “Daniel is a competent, experienced and respected leader and has the qualities needed to continue to develop the H&M group.”

H&M is No. 13 in the Europe Database, Digital Commerce 360’s rankings of the largest online retailers in the region.

“I am both honored and very happy for the board’s confidence and motivated and humbled by the task,” Ervér said in a press release. “Together with all committed colleagues, we will continue to create unbeatable value for our customers and profitable growth. Our focus will be on offering our customers the best combination of fashion, quality, price and sustainability in an inspiring and attractive shopping environment.”

Helena Helmersson steps down

Helmersson became H&M’s first-ever female CEO in 2020, succeeding Persson, who is the grandson of H&M founder Erling Persson.

“I am very proud of what we together have achieved during the last years when we have navigated through pandemic, and several geopolitical and macroeconomic challenges,” Helmersson said. “However, it has been very demanding at times for me personally and I now feel that it is time to leave the CEO role, which of course has not been an easy decision.”

Persson expressed gratitude to Helmersson, whose own H&M Group career spans 26 years, four of which have been as CEO.

“The board of directors would like to express a big thank you to Helena for her valuable contributions during a very intense time,” said Persson. “Helena is an appreciated leader that has decisively and effectively led and navigated the H&M group through a time largely marked by pandemic, geopolitical and macroeconomic challenges.”

Shares for the Stockholm-based H&M Group were down more than 11% for the day on Wednesday afternoon. News of the leadership change accompanied results from its full financial year ending in January. Net sales in local currencies for the year were down 1% from the previous year.

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The post H&M names new CEO as Helena Helmersson steps down appeared first on Digital Commerce 360.