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SYNC 2021 Day 2 Recap: DTC matters when going global, said fashion brand Cider a...

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SYNC 2021 Day 2 Recap: DTC matters when going global, said fashion brand Cider and low-cost retailer Miniso

SYNC 2021 Day 2 Recap: DTC matters when going global, said fashion brand Cider and low-cost retailer Miniso

Rebbeca Ren

posted on October 21, 2021 4:22 pm

Cider is a social-first womenswear brand, supported by the well-known VC A16Z, MINISO mainly relies on opening physical stores to enter overseas markets

"We are lucky because we have been online from day one, so we don't need to deal with the transition from offline to online during the pandemic," Yu Wu, co-founder of Cider, said during the "Cross-Border" panel discussion of SYNC 2021 SV on Tuesday.

SYNC SV is an annual technology summit hosted by PingWest, which bridges entrepreneurs, investors, and professionals from the United States and China to exchange opinions on trending topics in the tech and capital sector.

As COVID-19 disrupted the economy and dealt a heavy blow to physical stores, many fashion brands are struggling. Industry giants such as Gap and Victoria's Secret have shuttered a lot of their storefronts and increased investment in online businesses. With the sweeping digitalization trend in the retail sector, Cider, which was established in 2020, is growing rapidly.

CIder's websiteCIder's website

In May, the Guangzhou-based fashion company raised a total of $130 million in Series B financing led by existing investors DST Global and A16Z, marking its entry into the unicorn club. The funds funding proceeds will be used to shore up brand management, R&D, and overseas sales network.

#cidergang on Instagram#cidergang on Instagram

Through proactive social media exposure, Cider has already built a strong community of digital-native consumers. According to Wu, Cidergang is a fashion-forward Gen Z global community who are looking for higher quality and more affordable clothing and are delighted to share their fashion opinions. Currently, posts about #cidergang are highly-participated on social media including TikTok, Instagram, and Pinterest.

32.07% of the total traffic on the Cider website comes from social media, and 38.89% comes from search, according to data from Similarweb. The social-first brand is on the track to becoming one of the most popular affordable womenswear brands among Gen Z in the US. 

For Cider, COVID-19 is an opportunity to stand out, while for MINISO, a brand that mainly expands overseas markets through physical stores, it is a huge challenge. 

Ye Zhicong, general manager of MINISO's global e-commerce business, has witnessed the increase in the contribution of online business to the entire company.

Miniso's US online storeMiniso's US online store

During the pandemic, the company raised its focus on online channels and has boosted the promotion and marketing efforts of its online stores. According to the company's Q2 2021 earnings report, its e-commerce revenue was approximately 200 million yuan, a year-on-year increase of 136%, accounting for 12% of total revenue.

Still, physical presence is important to MINISO. Recently, in an interview with Reuters, the company said it was moving fast to take advantage of the pandemic slump in rents in the US economy and aim to double its storefronts in the US. 

The Chinese retailer offers high-quality fashion at low prices, as well as a variety of household and consumer goods, including cosmetics, stationery, toys, and kitchenware. Approximately 80% of products are priced below $12. Since opening its first store in Guangzhou in 2013, Miniso has opened more than 100 stores in 98 countries/regions in less than 8 years. 

Although the two Chinese companies have adopted different approaches in exploring overseas markets, they both believe that the direct-to-consumer (DTC) strategy is vital to brands.

From Wu’s experience, by operating a standalone website, Cider is able to collect core data that third-party e-commerce platforms such as Amazon and AliExpress do not allow sellers to access. 

Data can help Cider build out a digitized supply chain that also gives feedback to factories on which styles are in demand, and the company can use data-driven buying, merchandising, and marketing strategies to create the ultimate flywheel of great selection and great prices, the co-founder explained.

DTC model empowers companies to build their brand relationship with customers, and more importantly, the direct and authentic engagement with customers can help companies understand the reasons behind customer behavior and ultimately help companies operate more effectively, Ye added.


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