Tuesday
April 21, 2020

• For brands who sell through retail channels (brick-and-mortar stores or online), they’re seeing their current sales decline, which could underline a larger issue at hand.
• Paid social media continues to be a helpful revenue-driving tool for apparel and accessories brands.
• Many brands may have seen soft sales in March (the beginning of the pandemic in the US) but are now seeing their sales increase.

Of brands who sell through a retailer (store or online), 40 percent have said their sales have decreased or stopped entirely. One brand said, “Retailers are canceling or holding orders for their stores”.

Even though retail stores are closed, retailers often buy products far in advance to ensure adequate stock levels. The fact that they’re not purchasing now from direct to consumer (DTC) brands could be due to a cash flow issue or perhaps an inventory issue as the Wall Street Journal reported in their recent piece.

Many retailers have so much inventory on their shelves that they first need to liquidate before they sell new products. Additionally, there are many brands that feel that consumer buying behavior will change dramatically post-pandemic.

One brand said, “I believe consumers will have a massive behavior change. Food delivery and experiences at home will be more sought after.” Another brand said, “I think consumers will continue to want to shop online and avoid crowded stores; perhaps consumers will want to book a time to visit the store in advance and have a ‘private tour’ vs being there with others.”

Pre-coronavirus, many apparel and accessories brands used paid social channels to heavily promote their brand. Since the coronavirus, 91 percent of all category responses say they’ve increased their time or dollars for paid advertising (Google SEM, Paid Instagram, or Paid Facebook). Forty-five percent of these respondents sell apparel and accessories and, of this group, 68 percent have reported their sales are going up.

While many brands saw decreased sales in March, sales are beginning to rise in April. A look at our customer base of revenue attributed to email shows a significant revenue spike in April. Additionally, across 32,500 Klaviyo customers in 82 countries, sales, week to week, are up by an average of 72 percent between March 15 and April 19 of 2020.

Effective Marketing Moments

What’s working?

Playful puzzles and games. Francesca’s, an online apparel company, is feeling extra spunky and altered its messaging to reflect the current times by referring to a vacation as a “staycation.” They’ve also offered a crossword puzzle illustrating what products they’re selling—a fun and unique way to entertain customers.

Relevant creative imagery. 4Moms, a baby gear brand, uses work-from-home (WFH) messaging and imagery to highlight one of their products that might be useful to parents who are trying to juggle working and childcare simultaneously.

Brands with increasing sales

How are they feeling?

Many brands with increasing sales say that, after the pandemic is over, they plan to increase their inventory to keep up with demand.

One brand said they’re “adapting with the new ‘normal’ of local communities with safe social distancing practices, health and human contact, and having more supply on hand just in case we see another huge influx of orders.”

Brands with decreasing sales

How are they feeling?

Brands with decreasing sales say their key to achieving success after the pandemic is over is to adapt as best as they can by focusing on improving their online store and being prepared in case a pandemic happens again.

Check out 12 ways to optimize your website and emails.

Brands with flat sales

How are they feeling?

Brands with flat sales are feeling cautious about the future and say they’ll achieve success by beefing up their content strategies and keeping a pulse on future indicators on how consumers are behaving.

One brand said they plan to create “more personal campaigns about the business and workers.”

A great way to organize your content is to create a content calendar. Here’s a guide to help you get started.