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Weekly Newsletter
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The Rise of Chinese Ecommerce: "I was kind of skeptical of live shopping in the US. But then whatnot was like number one in the top rated marketplaces by Andreessen Horowitz? And so that made me take a deeper look."
The Rise of "Marketed by China" Concept: "He's allowing the manufacturers of high end retailers to sell the goods directly from the manufacturer to the consumer. And he's kind of giving them the entire technology to manage a consumer. It's like shopify b. Two B for Chinese manufacturers." - This quote speaks to the rise of the "marketed by China" concept and how Italic is disrupting the traditional middleman model by allowing high-end retailers to sell directly to consumers. The question is whether or not China can implement this concept successfully for higher quality products.
The Rise of Chinese E-commerce: "It's more so like they're understanding more the consumer behaviors."
The Challenges of Being a Fashion Brand: "And how many brands are there in the world? Thousands and thousands. And the fact that you can name ten and most people will probably name the same ten says a lot of how hard it really is to remain that relevant."
The Future of Supreme Hinges on Bad Bunny: "Crocs did it with bad bunny. So maybe Bad Bunny could be the saving grace for supreme."
"The Instant Pot Bankruptcy: So excessive inventory supply...you would think that during COVID a lot more people would buy these things, but turns out because every product from homes skyrocketed during COVID."
Viral Topic: The Success of Yasso Ice Cream: "Yasso makes over 300 million in 2023 in sales. Wow, that's bizarre. On retail. And I've never seen this ice cream company or tried it."
Affiliate Marketing Leakage: "We're overpaying on some of these affiliate commissions and we can't track all this stuff and what is actually driving the success behind specific affiliates."
Niche Within Niche: "If you really own that entire vertical, you can still build a pretty big business."
The Power of Mom Communities: "But there's so many mom Facebook groups and these communities where a lot of the products are shared and you just get crazy organic growth."
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❇️ Key topics and bullets
- Topic 2: Mom and Baby-Related Products - Lalo claims to be the fastest growing baby-related company, but the host thinks Bobby is the fastest growing - Lalo targets a niche market of rich moms - Building a mom or baby-related product allows tapping into distribution outside of ads through mom communities, blogs, and Facebook groups - Word-of-mouth recommendations from these communities lead to organic growth - The creativity involved in acquiring customers makes mom products fun
- Topic 3: Health and Wellness and CPG Industries - Growing interest in gut health - Pushback against highly processed foods in American diets - Natural oils such as olive oil gaining popularity - Consumers increasingly seeking healthy and natural products - Discussion on ice cream brands
- Topic 4: Direct-to-Consumer (DTC) Brands and Vertically Integrated Sellers - High-quality products and branding as success factors for DTC brands - Value still a priority for many Americans despite the trend towards environmentally conscious shopping - Vertically integrated sellers offer a wide variety of cheap products, often from Chinese retailers - Difficulties in becoming successful in the D-to-C brand space due to high prices and reduced profit margins in retail expansion - Reference to Amazon and how consumers prioritize price and convenience over brand loyalty for certain products
- Topic 5: Instant Brands, Chinese Manufacturers, and Community-Based Purchasing - Instant Brands filing for Chapter Eleven bankruptcy despite being previously profitable - Excessive inventory supply as possible reason for their bankruptcy - Examples of Chinese businesses gaining a better understanding of the US consumer market - Pin Duo as a fast-growing community-based platform in China - Potential cultural barriers to community-based purchasing model in the US
- Topic 6: Fashion Brands and Streetwear - VF Corp, not Louis Vuitton or LVMH, owns Supreme - Difficulty for fashion brands to remain relevant given the many brands in the world - Supreme and Fear of God as examples of popular streetwear brands - Question of whether Supreme can stay relevant after losing the culture that made it popular.
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