Weekly Newsletter - 10.17.2024

PLUS: Norda & SOAR team up for cutting-edge cold-weather trail running gear

Author

Priscilla Soedarpo
17 Oct • Estimated Reading Time: 9 minutes

THE LATEST IN ATHLEISURE NEWS

THOUGHTS FROM ADWEEK NEW YORK 🎤
Advertising Week NYC Recap

💡 Balancing Fame and Flow in a Post-Privacy Landscape, by Sam Carter, CEO of Fospha.

AdWeek NYC 2024 was packed full of fresh ideas and powerful reminders of evergreen principles. From navigating privacy challenges to ensuring sustainable brand growth, here are my key takeaways that all brands should be implementing:

  1. Balance Fame and Flow: Brands that focus too much on short-term conversions and neglect long-term brand-building efforts fall into the ‘doom loop’, converting only existing demand without generating new demand. Eventually the convertible audience is exhausted, efficiency plummets, and the brand finds itself in trouble. To avoid this, brands need to strike the right balance between conversion and long-term brand awareness to sustain growth.

  2. Go Full-Funnel for Measurement: To balance short and long-term goals of conversion and brand awareness, marketing teams need to be able to measure the impact of both. Last Click attribution chronically undervalues awareness activities, so brands should opt instead for measurement tools that use a full-funnel methodology.

  3. Privacy-Proof Your Tech Stack: With third-party cookies deprecation and new privacy regulations cropping up regularly, brands need to accept the death of user-level data and embrace privacy-centric solutions to future-proof their measurement. 

Read the full article here.

Nike

Nike remains the leading footwear brand among Gen Z, yet its grip on young women is slipping, as revealed by Piper Sandler's 48th semi-annual Taking Stock With Teens survey. Despite maintaining a stronghold with 57% of teens favoring Nike for footwear, this marks a 4-point decline from the previous year. The brand's appeal among females has notably decreased, dropping from 56% to 48%. This shift is mirrored in the upper-income segment, where Nike experienced an 11-point decline.

Competitors are capitalizing on this shift. New Balance ascended to the third spot among upper-income teens, doubling its mindshare to 8%. Adidas, too, has made significant strides, particularly among female respondents, increasing its share from 3% to 14%, and securing the second position in the top footwear brands list with 9% of the vote.

In apparel, Lululemon holds its third-place position, though it has seen a slight decline in mindshare. American Eagle, however, has maintained its second-place ranking. The survey also highlights a 4% increase in teen spending, underscoring the evolving dynamics of brand preferences.

Nike's recent financial performance reflects these trends, with a 10% revenue drop in the first quarter, prompting strategic shifts, including a postponed Investor Day and revised fiscal guidance. This evolving landscape presents both challenges and opportunities for Nike and its competitors.

HOT IN D2C E-COMMERCE
Amazon Prime Big Deal Days 2024 Breaks Records with AI and Innovation (top links below 👇)

Amazon’s Prime Big Deal Days 2024 made history with the largest October shopping event ever, saving Prime members over $1 billion globally. This year’s event highlighted Amazon’s cutting-edge AI tools, including its AI assistant, Rufus, and drove massive sales across electronics, toys, and apparel. Top brands like Apple and Dyson offered unbeatable deals, setting the stage for a promising holiday shopping season.

Momentum Commerce reported a 41% sales increase on Day 1, with brands like Crocs and Lego leading the charge, while regions like Canada and Europe saw notable growth despite weather impacts affecting the U.S. Competitors Target and Walmart also launched early sales events, but Amazon's use of innovative shopping tools and AI set it apart in an increasingly competitive market.

For deeper insights into this record-breaking event, explore these key sources:

Retailers often miss revenue opportunities throughout the purchase funnel. Key areas include accessibility issues, ineffective discount strategies, and poor mobile optimization. Enhancing these aspects can reduce cart abandonment and improve customer retention. Additionally, strategic return policies can maintain customer loyalty and minimize losses, ensuring a more profitable retail experience.

Nike

Nike will replace Under Armour as Wichita State University's sponsor, starting July 1, 2025. In partnership with BSN Sports, Nike will provide gear for 16 varsity sports and the athletic department. This five-year agreement aims to enhance Shocker Athletics' service and experience, aligning with championship expectations.

Microsoft is transitioning from its retail media platform, PromoteIQ, to a partnership with Criteo. This shift reflects the evolving retail media landscape, emphasizing the need for adaptable strategies. While PromoteIQ's closure isn't officially announced, the move highlights the importance of resilient, owned architectures in the dynamic ad tech industry.

Amer Sports, parent of Arcteryx and Salomon, reported a 60% revenue increase during China's Golden Week, driven by strong sales in the outdoor segment. This growth highlights the company's potential in China, with Arcteryx's technical apparel playing a significant role in boosting overall revenue.

Norda

Norda and SOAR, two pioneering running brands, have collaborated to create a seven-piece collection of technical running apparel for cold conditions. This collection features innovative fabrics and designs, like SOAR's STORM technology, ensuring comfort and style for trail runners. The collection releases on October 10.

Amazon's Amelia AI, currently in Beta, aims to assist sellers with insights and advice. While it simplifies tasks for new users, its potential lies in evolving features like competitive analysis and content optimization. Amelia is promising, but its future impact on Amazon sellers remains to be seen.

Perfect Moment has expanded its Perfect Second Moment resale program to the UK, France, Italy, and Germany. This initiative, in partnership with Reflaunt, promotes sustainability by extending the life of luxury skiwear. It rewards customer loyalty and aligns with the growing global secondhand market trends.

Footasylum secured a £35m credit facility from HSBC to expand in the UK and enhance sustainability. The funding supports new store openings, omnichannel technology, and ESG goals. Achievements include carbon offsetting and biodiesel logistics. This strategic move aims to boost growth and community impact, reflecting Footasylum's dynamic market presence.

Advertising Week New York highlighted three key trends: the scarcity of third-party data, the rise of the creator economy, and the pressure on marketers to prove ROI. Brands must leverage first-party data, embrace TikTok's potential, and focus on measurable outcomes to succeed in this evolving landscape.

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