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Robomart is trying to make "store hailing" -- by which a customer taps a button on an app that summons a store-in-a-van shop for a small fee -- a thing. Analysts suggest mobile stores are another iteration of hyper-convenience models like under-15 minute delivery, though are skeptical about profitability and scalability.
In recent years, connected TV has been a growing advertising channel for startup and digitally native brands. That trend is continuing as more companies steer away from relying on social ad spend, particularly on unreliable channels like Facebook and Instagram.
Merchandise has always been a part of canned water brand Liquid Death's marketing strategy; the company started telling t-shirts just a few months after launch in 2019. But what started as a marketing expense has now become a "revenue driver with great margins," Cessario said. Liquid Death did nearly $45 million in sales last year, and $3 million of that came from merchandise.
In this frothy venture capital market, keeping track of which startups or sectors are poised for a breakout year is more difficult than ever before. Four venture capitalists sound off on which types of companies they expect to attract a lot of VC funding this year.
Private labels are increasingly ubiquitous among retailers and consumers. They're also quickly becoming a big part of startups' sales strategies. One example is online grocery retailer Thrive Market, which is developing in-house products that sit alongside national brands and third party vendors.
After two years and a number of obstacles, connected fitness companies are at a turning point. This year, companies like Peloton, Mirror and Tonal are facing challenges as consumer demand subsides and people returning to gyms. More so, these companies are amid a number of legal battles over technology and design copyright.
Most retail companies have been laser-focused on driving as many sales as possible from Black Friday through Christmas, and are taking January to cut back on marketing. But for startups that sell workout supplements or vitamins, one of their biggest sales months is just getting started.
In the past year, 15-minute grocery delivery has taken over major urban markets like New York City, Miami and Chicago. This coverage area has presented yet another marketing and sales channel for young CPG brands looking to gain consumer data and new customer acquisition.
Non-alcoholic spirits and beverages are nothing new. However, a new slew of retailers are trying to become one-stop shops for these trendy startup brands. In the past year or so, retailers like Spirited Away, Boisson and Minus Moonshine have popped up to cater to this growing market.
Despite fears at the beginning of 2020 that the pandemic would usher in a recession that could wipe out many unprofitable consumer startups, more startups are putting near-term profitability on the back-burner, after two years of record online sales growth. At all of these companies, profitability, it seems, is always just around the corner -- but they can't stay unprofitable forever.
As the Omicron variant wave continues, planning for physical retail is once again in flux. So much so, even major retailers like Apple and Walmart temporarily shut down stores due to outbreak concerns. Now, some startup brands are weighing their options when it comes to store openings and in-person events.
Maveron senior associate Veronica Reaves believes that the pandemic has led people to reevaluate where they spend their money -- a trend that she believes will continue into 2022. She spoke with Modern Retail about the areas she's looking out for in the year to come.
The phrase Web3 has been sweeping business circles, with many deeming it the next big technology movement. At its core, Web3 represents a decentralized internet infrastructure based on blockchain technology. In that sense, it's a rebranding of something that's been around for over a decade: crypto. But if you take a scan at Twitter, Discord or Telegram, it seems like something new and exciting -- especially for DTC founders and investors.
2021 saw over a dozen venture-backed retail brands go public. There were several reasons for this, including long-planned public offerings and a need for cash to continue recent e-commerce growth. According to investors, we should expect this IPO roll to continue well into 2022.
To drive growth as a direct-to-consumer startup, lingerie brand Lively bet on a select group of 100 Ambassadors. Now, after an acquisition by intimates competitor Wacoal, the program now consists of 155,000 members. With the support of these Ambassadors, the brand has driven triple digit sales growth year-on-year for the past three years and a 40% average repeat purchase rate.
Big CPG has been aggressively pushing into plant-based grocery products the past year. Many of these efforts are increasingly coming from partnerships with the likes of Beyond Meat, Impossible Foods and Hungry Planet.
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