DTC Dispatch #021

💄 e.l.f. cosmetics x 💀 Liquid Death: an unlikely duo

🌱 Happy April!

This week in DTC Dispatch:

👜 How Béis uses social listening to foster a community of superfans

👗 Clothes that whisper, not shout: Fashion's new 'quiet luxury' trend

LATEST NEWS

How Béis uses social listening to foster a community of superfans

Béis, the Shay Mitchell-fronted luggage brand, has been experiencing an extraordinary surge in growth. As recently highlighted in Glossy, this remarkable brand has achieved a remarkable milestone by reaching an impressive $200 million in annual revenue in 2023, showcasing an astounding 180% increase when compared to the previous year. The brand's trajectory is set to soar even higher in 2024, with expectations of surpassing its current achievements. Among the multitude of strategies fueling this remarkable growth, one stands out prominently: Béis's unwavering commitment to attentively listening to its vibrant community. By valuing and incorporating the feedback and desires of its loyal customers, Béis has successfully cultivated a thriving brand that resonates deeply with its audience.

“Having an engaged community [allows you] to have an understanding of the consumer. … If you listen, they’ll tell you,” said Elizabeth Money, Béis’s SVP of brand and creative. “What we do is often an answer to what our community is asking for. Our last few [product] drops have been all about answering community wants and needs.” That’s included all-new products and existing products in fresh colors.

For example, customers were complaining on TikTok about seeing scuffs, marks and dirt their bags after one use. Béis leaned into the criticism, with an IRL activation dubbed Béis Wash, held in Los Angeles from February 24-25. At the pop-up, customers could bring in a piece of luggage for a free cleaning, as well as sip on Chamberlain coffee, shop exclusive merch and check out Béis’s core products IRL. Plus, of course, there were ample opportunities for content creation, which visitors took advantage of.

Our take: In the world of modern marketing, Béis has become very popular due to its social media use and the support of Shay Mitchell to gain a lot of followers. But Béis doesn't just rely on social media and celebrity endorsements. It wants to connect with its customers on a deeper level. That's why it created the Béis Wash pop-up, where customers can have an interactive experience and feel valued. People are really excited about Béis's future because it focuses on its customers and is expected to become even more popular.

ThredUp: US secondhand market to hit $73B by 2028

The U.S. used clothing market has been growing a lot. In 2023, it reached $43 billion, which is a big increase from $23 billion in 2018. This shows that more people are buying secondhand clothes. The market grew 11% in 2023, which is seven times faster than the regular clothing market. The value of clothes being resold also went up to $20 billion in 2023, from $17 billion the year before.

ThredUp, a company that sells used clothes, thinks the U.S. secondhand market will keep growing and reach $73 billion by 2028. They also predict that the global secondhand market will be worth $350 billion by 2028. This is a lot more than the $197 billion it was worth in 2023 and the $141 billion it was worth in 2021. The secondhand market is growing faster than the regular retail market, which shows that more people are choosing to buy used clothes. This is because people want to be more sustainable and find cheaper options.

Our take: Customers enjoy buying secondhand products almost more than regular clothes due to a variety of reasons. Firstly, opting for secondhand items is seen as a more sustainable choice, as it reduces the demand for new production and minimizes waste. Additionally, purchasing secondhand is often more cost-effective, allowing customers to save money while still acquiring high-quality items. Moreover, secondhand shopping offers the opportunity to discover unique pieces that are not commonly found in regular retail stores.

ThredUp, a company that has embraced this concept, has successfully scaled its operations to cater to the growing demand for secondhand products. Not only have they managed to achieve significant revenue milestones, but they also continue to experience steady growth. This success is a testament to the increasing popularity of secondhand options in the face of rising prices for new clothes both in physical stores and online. As a result, it is expected that the trend of choosing secondhand items will only continue to gain traction among consumers.

Clothes that whisper, not shout: Fashion's new 'quiet luxury' trend

There has been a noticeable surge in the demand for understated elegance in the recent times. Rather than having excessive and prominent logos adorning designer products, the concept of "quiet luxury" is gaining significant traction within fashion circles. This shift towards a more subtle and refined aesthetic is becoming increasingly prevalent.

What does it actually mean? The fashion magazine Harpers Bazaar describes quiet luxury as "the aesthetics of stealth wealth." In fashion terms: neutral colors, simple designs and sophistication that is only evident in the details.

Status is signaled only subtly, with the very highest quality and exquisite materials. Logos, on the other hand, remain inconspicuous or are not visible at all.

"Quiet luxury whispers, loud luxury shouts," explains Fernando Fastoso, Professor of Brand Management, Luxury and High-Class Brands at Germany's Pforzheim University. "Loud luxury communicates to the masses, quiet luxury only to those 'in the know'."

Our take: Luxury fashion, in the past, held a distinct meaning that diverges significantly from its present-day interpretation. Two or three decades ago, individuals sought to flaunt their expensive designer garments through conspicuous logos emblazoned across their attire or by donning ostentatious designs. However, the contemporary perspective on luxury fashion has shifted towards a concept known as "quiet luxury," as aptly described in this article. Nowadays, people yearn for an understated elegance, one that emanates from the quality of the fabric they adorn and the impeccable fit of their clothing, rather than relying on prominently displayed logos as a symbol of opulence.

Dolce&Gabbana moves luxury design to Miami real estate project

Italian luxury fashion house Dolce&Gabbana is entering the real estate market in Florida. They are building a tall building called the Grand Residences in Miami. It will be the tallest building in the city. The building will have 250 rooms and suites that are designed with elegance. The views from the building will be amazing. Each room and suite will have its own entrance for privacy. Dolce&Gabbana's Grand Residences will offer a luxurious and stylish living experience in Miami.

"Buyers of the residents will have the opportunity to rent their Dolce&Gabbana-designed homes via the hotel program when they're not in private use," according to developer JDS Development Group.

"The cultural vibrancy of Miami is the perfect backdrop for our world debut in the real estate sector with 'fatto a mano,' or made by hand, craftsmanship at its heart," said Alfonso Dolce, chief executive officer of Dolce&Gabbana.

Our take: Dolce&Gabbana, the renowned purveyor of opulent fashion items, is now venturing into an entirely novel realm of real estate. In a bold and unprecedented move, the brand seeks to captivate the attention of its devoted clientele by offering them the opportunity to indulge in the epitome of lavish living, an experience that perfectly complements the luxury they have come to associate with Dolce&Gabbana. This audacious foray into the real estate market marks a significant departure from the traditional path followed by luxury fashion brands, making it an intriguing and potentially game-changing business maneuver. The question that arises, however, is whether Dolce&Gabbana will be able to seamlessly transition its brand essence and allure into the realm of real estate, captivating the hearts and minds of its discerning customers in this uncharted territory. Only time will tell if this daring venture will prove to be a resounding success for Dolce&Gabbana.

FEATURED CONTENT

Liquid Death and E.l.f. cosmetics collab 

You won't believe the mind-blowing collaboration that's about to go down! Liquid Death, the ultimate badass brand, is teaming up with a cosmetics powerhouse. I know, it sounds crazy, but trust me, it's pure genius! People always assume that Liquid Death is only for the hardcore metal heads covered in ink, but oh boy, they couldn't be more wrong. This brand is a force to be reckoned with, transcending stereotypes and breaking boundaries.

Instead of sticking to their existing fanbase, Liquid Death is taking a leap of faith and diving headfirst into uncharted waters. They're reaching out to new audiences who may not have even heard of them before. And guess what? It's paying off big time! By joining forces with the fabulous e.l.f., they're tapping into a whole new world of potential buyers who are ready to splash their hard-earned cash.

Now, let's get one thing straight - Liquid Death is just water, folks. Yes, you heard me right. It's not some exclusive elixir reserved for a select few. It's a refreshing beverage that anyone, and I mean anyone, can enjoy. Even the fierce ladies who slay the makeup game! So, ladies, grab your brushes and your Liquid Death, because this is a match made in heaven.

The message is simple, my friends. If you want your brand to be successful, you need to think outside the box. Liquid Death is a great example of this, showing that being relatable and accessible is the key to success. So, let your brand shine and reach its full potential. Don't limit it to a small group when there's a whole world out there ready to embrace your product. Let's conquer the market together!

Our take: Collaborations from unlikely duos continue to unexpectedly emerge, captivating the attention of the masses. The latest addition to this captivating series unveils the remarkable partnership between Liquid Death and e.l.f. cosmetics. With a shared vision of broadening their horizons and captivating new hearts, these two brands embark on an audacious journey. Liquid Death, a brand that has already faced the challenge of battling stereotypes surrounding its customer base, fearlessly endeavors to shatter societal boundaries and delve into uncharted territories, alluring a fresh wave of consumers into their realm.

Thanks for reading this week’s edition of the DTC Dispatch.