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Betabrand Scores With Fashion Worth Talking About

"We really think hard about each product for the sake of getting bloggers to write about us because we don’t have Ralph Lauren’s marketing budget."

The online fashion label Betabrand wants to have conversation worthy products. The founders focus on self-designed products creative and unique enough to guarantee a viral resonance:

_betabrand-disco

With the Disco Open-Source Project, the raw, disco-inspired glitter material used in popular Betabrand products are on sale to do-it-yourselfers.

Customers can use the material to create their own disco accessories and clothes, which they then photograph and upload to Betabrand using their Model Citizen App. This sharing with the community is a part of the product.

To get a good look into the ideas and strategy from Betabrand, see the article in the New York Times:

 "TO understand the thinking behind Chris Lindland’s company,Betabrand, you need to keep three seemingly disparate ideas in your head at the same time: 1) It’s a challenge for Web-only businesses to sell clothing. 2) Most people want to be witty. 3) Some shoppers go crazy for limited-edition goods. (Think Beanie Babies.)

Mr. Lindland, who says his goal is “not to try to create the coolest, most cohesive line of clothing, but to create the most conversation-worthy line of clothing,” strives to keep Betabrand stocked with products that will generate “new, fun, cult-y talk.

Each week, the company introduces a new item in limited quantities. But this approach isn’t merely a lark, he says — it is a necessary strategy for an Internet retailer that needs to break through the clutter."

Betabrand depends on a strong community presence for Model Citizens. To motivate new users, Betabrand offers a 10% rebate on the next order within 24 hours of the first uploaded photo. Virality is of upmost focus:

"Customers send photographs of themselves wearing Betabrand clothing to the company, which in turn sends them a link they can forward to friends that puts those photos front and center on what looks like the Betabrand home page. (In fact, it’s a personalized version made just for them.)"

Besides a noteworthy newsletter which has an opening rate of 40%, fashion bloggers also play an important role for Betabrand:

"[Betabrand-Gründer Chris Lindland] says once sites such as Daily Candy debuted, fashion--like food, wine, and sports--was released from clutches of industry elites. “If you look at fashion and fashion marketing through the lens of the Internet, you end up taking a different approach,” he says. The idea is to turn fashion forward into "fashion forwarded."

Betabrand introduces 6-12 products per month which are produced in limited quantities.

Betabrand received $1.3 million in April 2011 from O’Reilly Alpha Tech Ventures, which brings the total venture capital in the firm to $1.52 million.

Originally posted in German by Jochen Krisch and Marcel Weiss, adapted for excitingcommerce.com by Jason Soo.

Posted by Jason Soo on 10/09/2012 | Permalink | Comments (0) | TrackBack (0)

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"The Homer"

The-homer(by guest author Alexander Graf)

Based on frequent debates about various important or not so important e-commerce business models, I would like to introduce a new term, which I used for several years while working with my former colleagues at the OTTO Group. This term considerably shortens complex explanations and is simplifying communication. The term we are talking about is: “The Homer”

Read the full feature at ecomPunk.com!

Posted by Roman Zenner on 10/08/2012 | Permalink | Comments (2) | TrackBack (0)

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Online works: Otto Group about to slash 760 jobs

"If the catalog driven revenues continue to crash so dramatically, the pressure could already be overwhelming in 2012/13, so decision-day could come much earlier than expected." (Exciting Commerce Prognosis from 11.7.2010)

Like Neckermann ("Neckermann und das Armutszeugnis") Otto has announced to slash a considerable amount of jobs - and has hit the press with three shots across the bow:

Otto press report 1:

  • "Starting in 2013, regarding the OTTO company, 450 out of 3,236 full-time jobs could be affected by the reorganisations - that is up to 14% of all employees."
  • "Regarding Bauer in Burgkunstadt, 210 full-time jobs could be affected by the reduction, up to 10% of the 2,165 jobs of the Baur brand".
  • "As far as Schwab in Hanau is concerned, up to 40 jobs could be affected, which is 5% of all 913 jobs."

Otto press report 2:

"In the future, quelle.de will be co-operated by a daughter company of the Otto Group.

The Hamburg location of Quelle GmbH will be suspended by the end of May 2013. All 60 employees will be laid off."

Otto press report 3:

"Otto Group quits its ambitions of having one central piece of standard software for the entire enterprise."

The work council remains silent.

Earlier posts on this subject: (German)

  • Wie sich Hamburg zur E-Commerce-Metropole stilisiert (German)
  • Otto-Bilanz 2011/12: Erste Details zum Fokus-Programm (German)
  • Neuordnung im Otto-Konzern: Wer gewinnt? Wer verliert? (German)
  • Neckermann bringt Otto-Versender weiter in Zugzwang (German)
  • Der Otto-Konzern will am liebsten erstmal weiterkuscheln (German)
  • Der Otto-Konzern zwischen Aufbruchs- und Untergangsstimmung (German)
  • Online-Boom: Hört nur, wie sie zetern und jammern! (German)
  • Otto-Bilanz 2011: Otto und der Frust mit dem Online-Wettbewerb (German)
  • Otto Bilanz 2010: Schafft Otto den Evolutions-Sprung? (German)

Posted by Roman Zenner on 10/04/2012 | Permalink | Comments (2) | TrackBack (0)

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Semantic Web Conquers E-Commerce Branch

Image03Imagine a lovely Saturday, before noon: you want to do your beloved a favour, let her sleep and take yourself on a walk to the bakery around the corner. The spring sun shines through the re-vegetated trees, the city blackbirds tweet through the shrubsery. Full of energy and looking forward to a good breakfast in bed, you enter your bakery of choice. “Ten rolls please!” you holler through the small locale full of good Saturday morning moods. Instantly you get the full attention of the saleslady: “Sunday or evening rolls, wheat or rye mix, with grain or without, double or single rolls?” Be quick now. “Five regular, three with sesame and two with pumpkin seeds please.” A bit deflated you leave the bakery and recognize later that you didn’t ask for a loaf today…

Read the full feature at ecomPunk.com!

Posted by Roman Zenner on 10/01/2012 | Permalink | Comments (8) | TrackBack (0)

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Roman’s Rants: Publishers’ Paradox

Gee, it’s been a while. But I’ve been dealing with the book scene here in Germany quite intensively lately and didn’t find the time to blog. Good news: From all this engagement comes  - a brand-new rant ;) The German publishers’ scene – something to write about which will read like a sequel to my Germany post – just wait and see.

Read the full feature at ecomPunk.com!

Posted by Roman Zenner on 09/25/2012 | Permalink | Comments (2) | TrackBack (0)

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See exclusive pictures from K5 conference!

K5_Tag1-1Here is our exclusive photographic coverage from last weeks K5 conference in Munich.

Picture galery of day 1 on ecompunk.com

Picture galery of day 2 on ecompunk.com

Posted by Kai-Thomas Krause on 09/24/2012 | Permalink | Comments (1) | TrackBack (0)

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Daily Grommet: Rakuten Taking Aim Again At The Female Market

Following Ahalife, Pinterest and Vaniti, Rakuten is further setting its sights on the ladies by investing in the Daily Grommet:

_grommet

"Rakuten will be the lead investor in Series B round for the Lexington, Mass.-based online marketplace, whose motto is “fresh finds, true stories.”

The site features a new daily product by featuring it with a story about its origin."

We reported on the Daily Grommet here on Exciting Commerce in the summer of 2010 under the title of “Daily Grommet and the Feminine Take on Live Shopping”.

The Daily Grommet counted as one of the premier examples we had at the Live Shopping Days conference and fits perfectly to Rakuten’s motto "Buy from people, not the internet".

Rakuten will be opening this year’s K5 Conference on Thursday with the topic: “For a new understanding of E-commerce”.

Related posts:

  • Daily Grommet and the Feminine Take on Live Shopping
  • Rakuten: “Buy from people, not the internet”
  • Pinterest Raises $100 Million From Investment Group Led by Rakuten
  • How Rakuten Wants To Push Tradoria Ahead With Buy.com
  • Rakuten CEO Hiroshi Mikitani in DLD Video Interview

Originally posted in German by Jochen Krisch, adapted for excitingcommerce.com by Jason Soo.

Posted by Jason Soo on 09/18/2012 | Permalink | Comments (1) | TrackBack (0)

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Shopbop and the Growth of Amazon’s Fashion Empire

Amazon has the ambition to be big in the fashion world. Recently they’ve reworked their Shopbop site design:

_shopbop

A forerunner for this has been MyHabit, which Amazon has already been using to experiment with moving pictures. The format is similar, with models turning and posing in front of an imaginary mirror – also to be found now on Shopbop.

_myhabit

BuyVIP is also now using this format, albeit without the moving pictures.

Like the Amazon site itself, all of the fashion sites have been trimmed to fit the tablet device better, including Endless, which is better known as Javari internationally. It will be interesting to see how the Kindle Fire is linked in to accentuate the fashion shopping experience.

_endless

In relation to this, Zappos and 6pm are coming across rather conventional. However Zappos’ current experiments are free to be seen from their Expo area.

_zappos

Exciting Commerce has been reporting on Amazon’s fashion strategy for over 2 years now. At that time Jeff Bezos laid out his master plan for his fashion empire.

Related posts:

  • Amazon Starts Javari In Germany, MyHabit in the USA Javari: Amazon Expands Shoe Retailer To France
  • Amazon Launches Javari Shoe Site in England and Japan
  • Fed Up With Investors? - Zappos Moves To Amazon Jeff Bezos On Amazon’s Fashion Strategy Shopping for Shopping Clubs: Privalia Trumps Brands4Friends and BuyVIP in Latest Investment Maneuvers
  • Vente-Privée on Amazon and eBay’s Radar

Originally posted in German by Jochen Krisch, adapted for excitingcommerce.com by Jason Soo.

Posted by Jason Soo on 09/07/2012 | Permalink | Comments (0) | TrackBack (0)

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British Electronics Chain Dixons Acquires the Rest of PIXmania for 10 Million Euros

In Germany it was Redcoon for Media-Saturn. In Switzerland it was Digitec for the Migros Group. And since 2006, PIXmania has been playing the same role for British electronics chain Dixons. That is, playing the role of an online sales channel as a hedge for brick-n-mortar empires under siege.

Dixons has become all too familiar with the problems of their competitors such as Media-Saturn and Best Buy. The corporation, to which PC World and Currys also belongs, had to register revenues down to 8.18 billion pounds during fiscal year 2011/12, representing a reduction of 3%. Dixons announced in June the closure of 60 High Street stores as a cost reduction measure.

Similar to its colleagues in Germany and the US, Dixons has a tangible e-commerce deficit. Although the online contribution of the 2010/11 revenues was 842.7 million.pounds (about 10%), 733.7 million of that was from the French online retailer PIXmania, which Dixons has been holding a majority share of since 2006.

The move to take almost 100% of PIXmania is a move to keep Dixons in the online game:

_pixmania

"Dixons Retail PLC today announces it has reached an agreement to acquire the 22% interest in PIXmania S.A.S. currently indirectly held by the founders of the business, Steve and Jean-Emile Rosenblum for €10 million (approximately £8 million) in cash. Dixons already holds a 77% interest in PIXmania."

PIXmania was last known for its troublesome exposure to crisis ridden southern Europe last year, needing to note down a 9% revenue decrease and a loss of 19.8 million pounds. Dixons wants to aggressively concrentrate on a turnaround:

„Pixmania’s trading continues to face strong market headwinds and this move will also allow us to manage the company in line with the group’s wider strategy and take actions necessary to improve its performance,” said Sebastian James, who took over as Dixons’ chief executive in February.

Dixons, which is whittling down its portfolio of UK shops, has high hopes for Pixmania’s online sales platform, and has signed licensing deals with retailers including Carrefour to use its software.”

After Dixons’ initial investment in PIXmania, they have been responsible for Dixons “multi-channel shop” operations. Since 2007, PIXmania has been selling goods from third party providers on pixmania.com. In several south European countries, PIXmania is running 17 flagship stores.

Originally posted in German by Jochen Krisch and Matthias Hell, adapted for excitingcommerce.com by Jason Soo.

Posted by Jason Soo on 08/29/2012 | Permalink | Comments (0) | TrackBack (0)

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Little Black Bag Raises $8 Million for Surprise Moments

Little Black Bag has raised a further $8 million for bringing the thrill of the surprise to e-commerce. The company was recently way at the top of our dotCommerce “List of Notable Startups” (in German). (via via):

_LBB1

"[…] Little Black Bag (LBB), a six month old social commerce site that offers a personalized collection of brand name women’s merchandise, today announced an $8 million Series B funding round led by GRP Partners, with participation from DCM. This brings the total funding raised to date to $10.75 million. […]

On LBB, customers buy a personalized mystery bag filled with women’s fashion products and then trade the items with others – all online. […]

The engagement metrics, social interactions and traffic patterns are unlike any eCommerce company I’ve seen,” said Mark Suster, partner at GRP Partners."

Exciting Commerce had put the topic of “Surprises” on the agenda of the Live Shopping Days 2010 conference ("The Hipstery and the Rise of Mystery").

We’ve already partly covered the topic with Birchbox and other companies with a business model around beauty samples.

Related posts:

  • The Hipstery and The Rise of Mystery
  • Birchbox: The Founders Speak About Their Plans
  • How The Luxury Industry is Allying Itself With New Merchants

Originally posted in German by Jochen Krisch, adapted for excitingcommerce.com by Jason Soo.

Posted by Jason Soo on 08/24/2012 | Permalink | Comments (0) | TrackBack (0)

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