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- Consumers are spending less, The Olympics, and more | D2C Digest
Consumers are spending less, The Olympics, and more | D2C Digest
Weekly D2C News
Berkay Erol
August 21, 2024
Hey there, great people of the D2C community who are building fantastic things! This is your host Berkay writing.
Take a 5-minute break and dive into D2C Digest for a quick overview of what’s happening in the D2C market worldwide!
💸 Back-to-School Shoppers Are Feeling the Pinch This Year
As the back-to-school season kicks in, shoppers are shifting their online spending towards cheaper options.
Is economic pressure finally catching up with consumers?
Signifyd's latest data reveals that while e-commerce sales are still growing, it's the low-cost items that are flying off the shelves.
Shoppers are relying more on discounts and budget-friendly alternatives, raising questions about what this trend means for the upcoming holiday season.
Key Insights from July 📊
Online spending grew by 10% in July, but the biggest gains were in orders under $100, which jumped by 17.7%.
Big-ticket items over $500? Sales were nearly flat compared to last year.
Even with average discounts of nearly 29% on home goods, shoppers still held back.
While apparel spending was up by 12%, electronics sales stayed flat, and home goods dropped by 8%.
The average order value dropped by 4%, signaling cautious consumer behavior.
As we head into the holiday season, the big question remains: Will this trend of trading down continue, or will shoppers loosen their purse strings again?
Source: Signifyd
🤺 2024 Paris Olympics: A fashion game-changer?
The Olympics was one of the year's most significant events, drawing millions of viewers from around the world. While many celebrated the games, they also sparked criticism and debate.
But one thing about the Olympics was how it put the fashion industry into the spotlight. Brands partnering with the Olympics gain massive visibility, but does it translate to direct sales?
Take LVMH, for example. Despite being a top-tier partner, their direct financial returns seem limited so far.
However, their brand image has skyrocketed, with LVMH everywhere in the months leading up to the Games. 🚀
Yann Rivoallan from the French Women's Ready-to-Wear Federation noted that the Olympics provided a much-needed boost for French fashion.
Sales started climbing from July 26, thanks to the festive atmosphere.
Record Viewership, Modest Budget 📊
Paris 2024 broke viewership records, with 54 million French viewers tuning in.
And they did it with a budget much smaller than past Games—talk about smart spending.
A Boost in Sports Product Sales 🛒
This massive audience isn’t just watching—they’re buying, too.
42% of consumers are more likely to buy products endorsed by top athletes.Brands like Athleta and New Balance are cashing in on this trend.
Partnerships and Brand Visibility 🌍
The Games have been a huge opportunity for brands to stretch their global reach.
Louis Vuitton, for example, has made a big splash, reinforcing their image as a luxury leader.
New rules since 2021 mean athletes can now be directly linked to brands, opening up new avenues for collaboration.
This shift has been a game-changer, driving brand visibility and new sales opportunities.
Image from the opening ceremony of the Paris Olympic Games. Credits: Getty, LVMH.
Paris and France Get a Boost 🇫🇷
The economic ripple effects of the 2024 Paris Games could be huge—up to €11.1 billion for Paris and its region.
And beyond the money, the Games have boosted Paris’ tourist appeal, especially after a tough 2023.
The Champs-Élysées became a luxury showcase during the Olympics, drawing in nearly 300,000 visitors daily.
This attention has attracted new investors and pushed up rents on this iconic avenue.
The 2024 Paris Olympics have sparked new trends, blending tradition with innovation.
Now the big question is: Can the LA Games in 2028 make a similar splash?
📱 Social Shoppers Choose Instagram for Fashion, TikTok for Beauty Products
As social media shopping takes off, platforms are finding their niches.
A PYMNTS report surveyed nearly 3,000 U.S. consumers to see where they shop online.
Key Insights
Instagram is the top choice for buying clothes, with 47% of its shoppers purchasing apparel.
For beauty products, TikTok leads the way, with 33% of its users making a purchase.
YouTube shines in food and beverage shopping, with 40% of users buying in this category.
Source: Pymnts
🤔 Which social media platform is your biggest revenue driver?
💻 Post of the week
This is one of the most creative founder ads I’ve seen.
Great example of taking an otherwise boring product and using good DR copywriting + creative visuals to sell it.
Any brand with a juxtaposition against big brands/'the industry' should take inspo from this.
Well executed.
— Alex Cooper (@alexgoughcooper)
4:00 PM • Jul 21, 2024
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