Why do some brands discourage customers from buying more of them?

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This is a fascinating trend. I first noticed this with Patagonia. The clothing brand that encourages people to keep their clothes longer (recall the “Don’t Buy This Jacket” campaign). REI is on board with the “Good & Used” section of its online retail site – and in our local store. These choices seem to be a good fit with the sustainable positioning of these two brands. But more recently, I am seeing other clothing brands step into the used gear space. One example is Adidas, which has partnered with ThredUp to help customers resell used footwear.

These examples might stimulate discussion about consumerism (Chapter 19), retailing (Chapter 12), or reverse channels (Chapter 10). It also begs the question about why companies would do this? Does Adidas have the same motivations as Patagonia or REI? Does this help the company sell more new clothing – while also making money on used gear (perhaps appealing to a clientele that cannot afford these products new)? Is it all about positioning the brand as caring about the environment?

Social e-commerce is huge in Asia. It’s coming to the U.S.

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My kids have started talking about social e-commerce. Of course that is not the term they use, but buying via Instagram is growing fast. “Social e-commerce is the business of selling goods online—in quantity—through people’s social networks” – quoted from this great Fast Company article, “This $360 billion e-commerce trend is huge in Asia—and it’s coming to the U.S. next.” The article describes the growth of social commerce in Asia, where is now comprises 13% of all online sales in China. The article delves into the two most prominent business models – group buying and live e-commerce. This could be an emerging online retail practice to keep an eye on – and to share with your students.

Breakfast Cereal Package Helps with Early Identification of Color Blindness

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Simple story and example of Marketing for a Better World. Sometimes clever marketing aligns a brand while making for a better world. “While people can live perfectly normal lives with color blindness, it helps to be aware of the condition. That goes double for children, who can be put in a disadvantage at school, where color is frequently used to convey information.” (Trendwatching). This Trendwatching story showed me how Kellogg’s made some changes to its Froot Loops box, turning it into a color blindness test. Of course, an image of the cereal looks pretty similar to the traditional Ishihara test for color blindness (if you cannot see the 15 inside the circle, you might be color blind).

These images might be a nice image addition to your slide deck for Chapter 8 (packaging).

Buy Now Pay Later Gets Easier!

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Credit cards have long been an easy way for consumer to “buy now pay later.” But not everyone could qualify for a credit card and the interest rates are very high!

These days consumers are seeing an explosion of point-of-sale “buy now pay later” (BNPL) options with companies like Klarna, Afterpay and Affirm. This article at Forbes shows BNPL is expected to grow from ~$24 billion in 2020 to almost $100 billion in 2021. While BNPL can be particularly appealing to young shoppers, who may have more limited access to credit, and it is most popular with Gen Z and Millennials, Gen X and Boomers are now using it as well.

BNPL’s biggest appeal may be convenience. At the point of online purchase, consumers have the option to split that $100 pair of shoes into four $25 payments. And BNPLs don’t charge interest. The risk is borne by the BNPL provider, with the seller typically giving the BNPL service a cut (say 3%) of each sale. That nudge may close some sales and helps retailers. And it looks good to consumers who do not have to pay a premium to buy now pay later.

The growth of BNPL raises all kinds of interesting questions you might want to discuss in your marketing class. There are ethical questions about whether credit is a good idea (see this article in The Atlantic for warnings from personal financial experts).

Shopping During COVID-19 Accelerates Changes in Retail

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The brick-and-mortar retail business has struggled through the pandemic. With many retailers closed or shoppers simply avoiding them, online retailers benefitted. That has also created challenges for consumer goods makers that relied on those brick-and-mortar retailers to sell their wares. This Fast Company article, “How COVID-19 accelerated a shopping revolution” describes how fashion brand Rebecca Minkoff responded and offset the loss of sales in its retail channels.

Another Fast Company article describes how omnichannel, “a multichannel selling approach in which a retailer provides a seamless customer shopping experience from computer, mobile service, or brick-and-mortar store” (definition from our textbook, Essentials of Marketing) grew in importance during the pandemic. The pandemic increased the importance of curbside pickup and online distribution. In “Can retailers meet the demands of the omnichannel revolution?” you can read examples of how some retailers adapted.