DTC Dispatch #055

LATEST NEWS

How Unilever is driving volume growth in personal care

Driving growth at a major CPG company requires balancing innovation with legacy products—a strategy that’s driven Unilever’s success, says Herrish Patel, president of Unilever USA.

In Q3, Unilever’s sales rose 4.5%, with volume up 3.6%. Its personal care segment, featuring brands like Dove, Degree, and Axe, saw a 4.4% sales increase, with Dove achieving double-digit growth through premium launches like whole body deodorants and serum-infused body wash.

Patel emphasizes that while innovation fuels growth, refining core products is equally vital to staying relevant in the fast-changing personal care market. This balance keeps Unilever competitive and connected to modern consumers.

Our take: Unilever’s balance of innovation and legacy is a winning strategy in the competitive CPG market. By combining premium launches like Dove’s whole body deodorants with improvements to core products, the company meets consumer demand for both novelty and reliability.

Dove’s double-digit growth shows the appeal of premium offerings, while refining classic products ensures loyalty from long-time customers. With a 4.5% sales increase and four consecutive quarters of growth, Unilever proves that evolving without losing heritage is key to staying relevant in a changing market.

Nordstrom leverages generative AI for holiday app refresh

Nordstrom is enhancing the holiday shopping experience with a revamped mobile app powered by generative AI, according to a press release.

The updated app introduces trend reports created with input from Nordstrom stylists and generative AI, alongside features like enhanced search, personalized recommendations, and a Style Swipes tool for discovering new looks.

Additionally, Nordstrom plans to debut The Blizz on 57th Street, an immersive holiday installation launching November 27 at its flagship New York City store. These efforts align with a broader trend among retailers investing in upgraded app experiences to engage shoppers.

Our take: Nordstrom’s use of generative AI for its holiday shopping experience is a savvy move in a retail landscape focused on personalization and convenience. Features like AI-driven trend reports, personalized recommendations, and the interactive Style Swipes tool cater to modern shoppers seeking tailored, time-saving options.

The addition of The Blizz on 57th Street, an immersive holiday installation, blends digital innovation with festive in-store magic, reinforcing Nordstrom’s commitment to tradition and modernity. By combining AI technology with stylist expertise, Nordstrom sets a benchmark for how retailers can innovate while maintaining a personal touch, enhancing both the shopping journey and customer loyalty.

Vogue boss 'concerned' by return to skinny models

The fashion industry should take note of a concerning shift toward the use of skinnier models, according to Chioma Nnadi, editorial director of British Vogue. Speaking on BBC Radio 4’s Today programme, Nnadi pointed to the resurgence of thinness as a beauty standard, despite recent strides in body diversity.

She suggested that the rising popularity of drugs like Ozempic may be influencing this trend. “We’re witnessing the pendulum swing back to skinny being ‘in,’” Nnadi remarked, adding that such shifts are often treated as fleeting trends. “We need to challenge this mindset to ensure inclusivity remains a priority.”

Our take: Chioma Nnadi’s concern over the fashion industry’s return to thinner models is timely and vital. After progress in body diversity, this shift feels like a step backward, with drugs like Ozempic potentially fueling harmful beauty standards.

The industry must reject trends that promote unhealthy ideals and trivialize the impact on self-esteem and body image, especially for impressionable audiences. Fashion shapes culture, and with that power comes a responsibility to celebrate diverse bodies—not as a trend but as a lasting commitment to inclusivity.

American luxury deal’s collapse leaves Michael Kors in limbo

After the $8.5 billion deal between Michael Kors' parent company and the owner of Coach collapsed on Thursday, CEO John Idol made a last-minute call to reassure investors.

In his first analyst call in over 15 months, Idol acknowledged the brand's recent struggles and lagging sales. He admitted the company had made several missteps during the period it was waiting to be acquired, including failing to focus on long-term planning and raising prices too quickly.

With the deal canceled due to antitrust concerns, Michael Kors now faces an uncertain future at a challenging time for luxury brands, as global economic slowdowns and reduced consumer spending weigh heavily on the industry.

Our take: The collapse of Michael Kors' $8.5 billion deal with Coach's parent company exposes the challenges facing luxury brands in an uncertain market. CEO John Idol's rare call to reassure investors revealed the brand's missteps, including rapid price hikes and a lack of long-term planning, highlighting the company's precarious position.

The deal's cancellation, due to antitrust concerns, leaves Michael Kors vulnerable amid global economic slowdowns and shifting consumer behavior. As luxury brands face reduced spending, Michael Kors must adapt its strategy to appeal to a more price-conscious consumer while maintaining its premium image. The brand’s future depends on recalibrating its approach to secure its place in a changing market.

L’Oréal teams up with The Louvre on beauty-inspired art exhibition

L’Oréal Groupe has launched an exhibition in collaboration with The Louvre Museum to explore the evolution of beauty through art. The ‘De Toutes Beautés’ (Of All Beauties) exhibit features 108 artworks spanning over 10,000 years, showcasing changing beauty ideals and rituals.

A custom web app, accessible via QR codes, offers additional content to enhance the experience. Highlights include the Greek statue of Mercure Richelieu and the 'Sleeping Hermaphrodite,' which invites visitors to explore gender concepts in art.

Our take: L’Oréal Groupe’s De Toutes Beautés exhibition at The Louvre is a compelling exploration of beauty through art, spanning over 10,000 years. By showcasing over 100 works, from ancient sculptures to modern pieces, it highlights how beauty ideals have evolved with societal changes.

The inclusion of a custom web app enhances the visitor experience, offering interactive content to deepen engagement with the art. The exhibition’s focus on gender, exemplified by the Sleeping Hermaphrodite, challenges traditional beauty standards and fosters a broader conversation about beauty's cultural significance. This collaboration underscores the fluidity and diversity of beauty in today’s world.