DTC Dispatch #036

LATEST NEWS

Google reveals new tools for tracking prices in Search

This summer, online shoppers are eager for deals, and Google has introduced new features to help them find and compare prices:

- A “deals carousel” for promotions from the last 24 hours.

- “Member pricing” discounts for stores like Best Buy and Petco.

- A tool to track an item's price range over the past 90 days.

- Alerts for when items go on sale.

Sean Scott, Google's VP of consumer shopping, mentioned that summer is now a major shopping season, with online searches for “deals” peaking in mid-July, surpassing interest in “vacation.”

A Google survey found that 44% of respondents shop more on deal days, and 68% compare prices before buying online. Scott noted that 73% of shoppers are more likely to buy if they can see if a product’s price is high, typical, or low.

These tools are part of Google's efforts to boost e-commerce, including using AI to help brands with marketing and search visibility.

Our take: Google's new features are a timely and savvy response to the growing appetite for summer deals among online shoppers. The introduction of tools like the "deals carousel" and price tracking showcases Google's commitment to enhancing the shopping experience by making it easier to find bargains. These features not only benefit consumers by helping them make more informed purchasing decisions, but they also drive engagement and sales for retailers.

In an era where comparison shopping is the norm, providing real-time promotions and historical price data can significantly influence buying behavior. Google's survey highlights that a majority of shoppers are motivated by clear pricing insights, reinforcing the value of these new tools. Moreover, integrating AI to assist brands with marketing and search optimization reflects Google's broader strategy to solidify its position as a leader in e-commerce innovation.

Poppi lawsuit turns attention and scrutiny to the prebiotic beverage industry

Poppi is currently facing a class action lawsuit over its "prebiotic" claims. The company previously advertised their drinks as "gut healthy," a slogan now removed from their website.

According to Top Class Actions, the plaintiff alleges that Poppi drinks are misleadingly marketed as beneficial for gut health, despite containing minimal prebiotics and high sugar levels. Poppi has yet to respond to Food Dive's request for comment. However, in earlier statements, a spokesperson asserted that the company "stands behind our products" and considers "the lawsuit baseless, and we will vigorously defend against these allegations."

Poppi's sales have reportedly surpassed $100 million, bolstered by distribution in over 120 retailers. This success highlights a growing consumer interest in incorporating holistic health through food and beverages.

The functional beverage market is valued at over $13 billion, with the kombucha and wellness shot markets each valued at approximately $1.3 billion, according to data provider SPINS. However, the lawsuit raises questions among consumers and companies about what truly qualifies a product as "gut healthy" and the appropriate use of such labels. The answers, it seems, are complex.

Our take: The lawsuit against Poppi highlights the need for honesty in health beverage marketing. Poppi's strong sales show a demand for holistic health products, but the case questions the truth behind their "gut healthy" claims.

As more consumers seek functional beverages for well-being, the market grows, and so does the need for accurate information. The allegations against Poppi suggest that some marketing practices may be misleading.

Defining "gut healthy" is complex, indicating a need for stricter standards and regulations. Companies must back their claims with scientific evidence to maintain consumer trust. This lawsuit could prompt more scrutiny of health claims in the industry.

Saks-Neiman’s Merger Has Finally Arrived: What Are the Ramifications?

After years of pursuit, Hudson’s Bay Co., led by Richard Baker, has agreed to buy the Neiman Marcus Group for $2.65 billion, merging it with Saks Fifth Avenue.

The deal includes investments from Amazon, Apollo, and Salesforce.

HBC will form Saks Global, combining luxury retail and real estate assets, including Saks Fifth Avenue, Saks Off 5th, Neiman Marcus, and Bergdorf Goodman, each retaining their brands.

Marc Metrick, current CEO of Saks, will lead Saks Global.

Baker has not revealed other management changes, stating, "We will be surveying and understanding all the talent that exists in all three businesses to put together a best-in-class team."

The future of Geoffroy van Raemdonck, CEO of Neiman Marcus, is still uncertain.

Our take: The Saks-Neiman Marcus merger represents a bold move in the luxury retail sector. Hudson’s Bay Co.'s $2.65 billion acquisition, with backing from heavyweights like Amazon, Apollo, and Salesforce, signals confidence in the combined strength of these iconic brands. The formation of Saks Global promises to leverage the unique strengths of Saks Fifth Avenue, Saks Off 5th, Neiman Marcus, and Bergdorf Goodman while maintaining their distinct identities.

Marc Metrick’s appointment as CEO of Saks Global brings continuity, yet the lack of clarity on further management changes, especially the future of Neiman Marcus CEO Geoffroy van Raemdonck, leaves some uncertainty. This merger could redefine luxury retail, but its success will hinge on effective integration and talent management. For now, the luxury market is watching closely to see how this high-stakes combination unfolds.

Omega, Glossier Make Olympic Splash

With the Olympic Games in Paris just weeks away, brands are gearing up for a big presence. Omega, the official timekeeper and sponsor since 1932, is launching new ads featuring pole vaulters, high jumpers, break-dancers, fencers, and gymnasts set against iconic Parisian landmarks like the Eiffel Tower, Arc de Triomphe, and the Louvre. The ads use optical illusions to transform Paris into an athletic playground and feature an exclusive song by French rapper SDM, titled “Born to be a Legend.”

Glossier is also making its mark as the first-ever beauty sponsor for USA Basketball’s Women’s National Team. Announced as the Official Beauty Partner of USA Basketball, this partnership is the first of its kind dedicated exclusively to the USA Women’s National Team program since 1996.

Our take: As the Paris Olympics draw near, brands are eagerly joining the celebration of athleticism. Omega’s new ad campaign uses Parisian landmarks to emphasize their longstanding ties to the Games, blending culture to enhance their brand story. With athletes showcased against iconic sites like the Eiffel Tower and Arc de Triomphe, Omega presents Paris as a backdrop of sports excellence and timeless elegance.

Glossier’s role as the inaugural beauty sponsor for USA Basketball’s Women’s National Team is a significant milestone in sports marketing. This partnership not only highlights the growing influence of beauty brands in sports but also underscores Glossier’s commitment to diversity and empowerment in women’s sports.

These efforts reflect a broader trend where brands leverage major sporting events to align with values of excellence, diversity, and global unity. By connecting their products with the Olympic spirit, brands like Omega and Glossier aim to deepen their connection with audiences. These partnerships are poised to shape perceptions during the Games, showcasing sports as a platform for cultural exchange and inspiration.

Jo Malone London partners with Paddington for a series of scented gifts

The British fragrance house, part of The Estée Lauder Companies, has partnered with the beloved character Paddington Bear to create a series of exclusive scented gifts.

At the core of this collection is a cologne that pays homage to Paddington’s cherished snack, the marmalade sandwiches tucked beneath his iconic red hat. Drawing inspiration from this quintessentially British preserve, Orange Marmalade intertwines warm woods with vibrant orange zest, resulting in a delightful golden fragrance.

Alongside the cologne, the Jo Malone x Paddington collaboration features four limited-edition gift sets. These include a special trunk design reminiscent of Paddington’s suitcase, housing Jo Malone London favorites across cologne, home fragrance, and bath & body categories.

Our take: The partnership between the British fragrance house and Paddington Bear brings together nostalgia, creativity, and delightful scents. Inspired by Paddington’s love for marmalade sandwiches, Jo Malone has created an exclusive collection of scented gifts.

At its heart is Orange Marmalade cologne, a tribute to Paddington’s favorite snack that captures British heritage with its warm woods and vibrant citrus notes. This unique fragrance promises to charm both Paddington fans and fragrance enthusiasts alike.

The collaboration includes limited-edition gift sets, featuring a special trunk design reminiscent of Paddington’s suitcase. This adds to the collection’s allure by blending storytelling charm with luxurious offerings across cologne, home fragrance, and bath & body categories, ensuring a complete sensory experience.

In essence, Jo Malone x Paddington celebrates a beloved character while showcasing the artistry of fragrance creation and the power of storytelling in branding. It highlights the enduring appeal of combining creativity, nostalgia, and quality to create products that captivate and delight consumers.