Amazon Haul, What Makes Vinted Special, Advent Calendar Fever

[00:00:08] You're listening to Retail Disrupted, a podcast that explores the latest industry developments and the trends that will shape how we shop in the future.

[00:00:17] I'm your host, Natalie Berg.

[00:00:29] Today's episode is going to be a little different because it is only me on the podcast.

[00:00:34] I actually can't remember the last time that I didn't have a guest.

[00:00:38] I think I learned pretty quickly that recording an episode on your own sounds easy and straightforward, but actually it is incredibly hard.

[00:00:49] And especially if you have a brain like mine that is constantly going in a thousand different directions.

[00:00:55] I just find it really hard to focus and to kind of come up for air.

[00:01:01] So I don't have a script today.

[00:01:03] I'm completely winging it and I appreciate that not only is it easier for me as the host when I have a guest,

[00:01:13] it's also probably a lot more interesting for you to be listening in on a conversation rather than just hearing me drone on about retail.

[00:01:20] But that is what I am going to be doing today.

[00:01:23] So bear with me.

[00:01:24] And if this is your first time listening to the podcast,

[00:01:26] may I suggest that you go back and listen to some episodes where I speak to people before you decide to leave a rating or review.

[00:01:35] That's my one request today.

[00:01:41] Okay, so what I wanted to do today was to share with you some updates and also some insights based on conversations that I've been having with journalists.

[00:01:52] This is a very busy time of year for retail.

[00:01:56] There's a lot of interest in the sector.

[00:01:58] So I've been speaking to journalists about all kinds of weird and wonderful things.

[00:02:02] And I thought it would be nice to continue that conversation here on the podcast.

[00:02:07] This week has been an unusual week for me.

[00:02:10] I spent the day at Silverstone earlier this week.

[00:02:14] If, like me, you are not a racing fanatic, you might not know that Silverstone is the home of the British Grand Prix.

[00:02:23] So not your typical day out for a retail analyst.

[00:02:28] But it was a great event.

[00:02:29] It was hosted by PMC.

[00:02:32] And we heard from a number of retail leaders, particularly those in the technology space,

[00:02:38] talking about how they're digitally transforming their businesses.

[00:02:41] We heard from Nick Baton, who is the former CEO of ASOS and Matches.

[00:02:47] And he talked a lot about cultural change.

[00:02:50] And also, he spoke really candidly about how his leadership has evolved over the years.

[00:02:56] I'm going to be writing a blog about everything that I learned throughout the day.

[00:02:59] So sometime over the next couple of weeks, you can check out mbkretail.com and read all about that.

[00:03:06] I also had the opportunity to sit down with a couple of retailers and record an episode for the podcast,

[00:03:12] which will be coming out next week.

[00:03:15] I spoke to Jeanette Copeland, the technology director at Ant Summers,

[00:03:19] and also Paul Edney, the technology director at Primark.

[00:03:23] Paul and I talked about all the amazing things that Primark is doing around click and collect.

[00:03:28] So lots to explore there.

[00:03:30] And if you are not already subscribed, now is probably a good time to do that so you don't miss our conversation next week.

[00:03:43] Let's move on now to talk about the news.

[00:03:46] We're going to touch on three things today.

[00:03:48] There really is no theme.

[00:03:50] It's a little bit of a jumble.

[00:03:51] It's really just the things that I have spotted and have thought were interesting

[00:03:55] or things that journalists have been asking me about and I thought I would share my commentary with you.

[00:04:03] So we're going to talk about Amazon.

[00:04:05] We're going to talk about Vinted, the pre-loved online marketplace.

[00:04:10] And we're also going to talk about advent calendars.

[00:04:12] I told you it was random.

[00:04:15] So first up, we have a couple of breaking news stories from Amazon.

[00:04:18] And how exciting is that to be able to comment on breaking news stories on a podcast?

[00:04:22] I don't normally get the opportunity to do that.

[00:04:24] There are rumors flying around Germany that Amazon is about to terminate their online grocery service.

[00:04:31] Germany is a really tough market dominated by the discounters.

[00:04:36] And it sounds like Amazon is moving more towards a service provider role.

[00:04:42] So delivering groceries for other retailers.

[00:04:45] Now, this should come as no surprise.

[00:04:46] If you have followed Amazon closely over the years, as I have, they have been dabbling, experimenting,

[00:04:53] and iterating with lots of things, but especially with grocery.

[00:04:59] Grocery has always been a difficult market for Amazon to crack.

[00:05:04] There's a ton to say here.

[00:05:06] And I don't want to spend too much time on this.

[00:05:08] But I would say that I don't want to spend too much time on this because I'm going to be covering it next week.

[00:05:13] So let me just clarify that.

[00:05:14] I have Boris Planner, who is a former colleague of mine.

[00:05:19] He's based in Frankfurt.

[00:05:20] I've known Boris for like 20 years.

[00:05:22] And he is my go-to person for all things German retail.

[00:05:26] He has kindly agreed to come on the podcast next week.

[00:05:28] And we're going to dive into this in a lot more detail.

[00:05:31] But one thing I would say here is that Amazon needs to decide at some point whether they want to be the retailer.

[00:05:38] In grocery, I should say.

[00:05:40] Whether they want to be a direct competitor to other grocery retailers.

[00:05:43] Or whether actually they just want to be the infrastructure.

[00:05:47] They want to be the rails that the retail sector runs on.

[00:05:51] I certainly know which of those two options is more lucrative.

[00:05:56] Which is more in Amazon's wheelhouse.

[00:05:58] So really interesting to see the news from Germany.

[00:06:01] And again, it hasn't been confirmed by Amazon.

[00:06:02] But it sounds like this is the direction of travel.

[00:06:06] Now, the second breaking news story from Amazon.

[00:06:09] And this is arguably a much bigger story with much wider implications for the sector.

[00:06:14] Amazon has launched a new storefront on its site called Amazon Hall.

[00:06:19] It's only in the U.S. right now.

[00:06:21] It's in beta mode.

[00:06:23] Everything is $20 or less.

[00:06:25] The majority of stuff is under $10.

[00:06:29] And some things are even less than $1.

[00:06:31] Categories include fashion, home, lifestyle, and electronics.

[00:06:36] Delivery is not what you would expect from Amazon.

[00:06:39] We tend to expect stuff to turn up within one to two days.

[00:06:44] Delivery of these items is going to take one to two weeks.

[00:06:48] Now, if all of this sounds really familiar.

[00:06:50] Well, then you've probably guessed by now that this is Amazon's answer to Timu.

[00:06:55] And to a lesser extent, Xi'an.

[00:06:57] The Chinese disruptors that have come up time and time again on the podcast.

[00:07:02] We've known this was coming for months now.

[00:07:04] And in fact, Maya and I recorded an episode.

[00:07:09] It's episode 45.

[00:07:10] We recorded it back in July.

[00:07:12] It's called Amazon Must Disrupt Itself.

[00:07:15] We talked about all of this in that episode.

[00:07:18] So I'm not going to rehash that.

[00:07:19] But I would encourage you to go back and listen to that episode.

[00:07:23] I do want to say one thing here, though.

[00:07:24] I think it's really interesting the use of the word haul.

[00:07:29] Branding really is an Amazon strong point.

[00:07:32] And Maya and I said when we recorded back in July that they were going to have to differentiate.

[00:07:38] Yes, they had to respond to Timu.

[00:07:40] Yes, they had to respond to Xi'an.

[00:07:42] You know, they need to keep innovating.

[00:07:44] And as we said in the podcast, disrupting themselves.

[00:07:47] You know, disrupting the status quo.

[00:07:48] Not standing still.

[00:07:51] Because the market is moving so quickly.

[00:07:54] And it is easy to go from being the disruptor to the disrupted.

[00:07:58] So Amazon, you know, to their credit, is taking action.

[00:08:02] There's a whole sustainability question here as well.

[00:08:06] But I digress.

[00:08:09] I think from a branding perspective, it's never going to be easy to differentiate this offering

[00:08:16] from their core offering.

[00:08:18] And I think how they manage that, it's so delicate.

[00:08:22] It's so tricky.

[00:08:23] The word haul implies that you're going to fill up your basket.

[00:08:28] And that's what Amazon wants you to do.

[00:08:30] So the more that you buy, the more you're going to save.

[00:08:33] Amazon says you'll get 5% off orders that are $50 and above.

[00:08:38] And 10% off orders, $75 or more.

[00:08:42] And given the very low price point, I mean, you're going to have to buy a lot of stuff.

[00:08:47] So watch this space.

[00:08:48] Go back and listen to episode 45 if you're interested in hearing more.

[00:08:51] And I'm sure it will come up again on the podcast.

[00:09:01] Okay.

[00:09:01] So the next thing I wanted to talk to you about is Vinted, the pre-loved fashion marketplace,

[00:09:06] the peer-to-peer marketplace.

[00:09:07] I spoke to the Wall Street Journal about Vinted.

[00:09:10] And the specific question from the journalist was, what is it that makes Vinted special?

[00:09:15] What makes them unique?

[00:09:16] And also, are they a genuine threat to fashion retailers?

[00:09:23] Now, before I answer both of those questions, I just want to preface this because I'm conscious

[00:09:28] that I have a global audience.

[00:09:29] And maybe you don't all know Vinted.

[00:09:31] If you're in the US, you'll know ThredUp.

[00:09:35] You might know Depop.

[00:09:36] But Vinted has been a huge disruptor here in the UK and in Europe.

[00:09:42] They have really broken the mold.

[00:09:44] And it's been really interesting to kind of watch their journey.

[00:09:48] They are making money now.

[00:09:49] So I spoke to the BBC earlier this year about that.

[00:09:52] They are profitable, which is really unusual for this kind of marketplace.

[00:09:58] And they are really having an impact on the industry.

[00:10:04] eBay, for example, has scrapped seller fees for all categories.

[00:10:10] They started with fashion and now it's across everything.

[00:10:13] And that really is a direct response to Vinted because Vinted doesn't charge any fees for

[00:10:20] the seller.

[00:10:20] So what is it about Vinted that makes them so special?

[00:10:24] I think it's their ability to offer customers value without sacrificing values.

[00:10:30] And there's a third element here.

[00:10:32] It's the fact that they're able to do this in a way that is totally frictionless.

[00:10:37] Frictionless for the buyer, frictionless for the seller.

[00:10:40] It's just easy.

[00:10:41] They've removed all the barriers.

[00:10:44] And that is a sweet spot that no other retailer has been able to hit.

[00:10:48] So value, values, and frictionless experience.

[00:10:51] I think it's an incredibly relevant platform for how people want to shop today.

[00:10:56] Affordability is still really important, right?

[00:10:59] Especially in the current climate.

[00:11:02] But so is convenience.

[00:11:03] We don't want to sacrifice the kind of digital touch points, the digital experience that

[00:11:10] we've gotten so used to.

[00:11:12] We also want sustainability.

[00:11:14] And we also want community.

[00:11:16] Maybe to a lesser extent, we want community.

[00:11:18] And so there is a little bit of a social element here.

[00:11:21] Not as much as Depop.

[00:11:22] But there definitely is a community.

[00:11:23] And I think that Vinted really taps into all of those consumer needs in a totally brilliant

[00:11:28] way.

[00:11:29] From a consumer's perspective, a few things.

[00:11:33] There is the feel-good factor.

[00:11:35] You're saving money.

[00:11:36] You're doing your bit for the planet.

[00:11:38] And again, there's no real hassle.

[00:11:40] And that is what keeps you coming back to the platform.

[00:11:43] Most people understand the need for circularity in fashion.

[00:11:47] But it has to be accessible, right?

[00:11:49] It has to be financially accessible.

[00:11:51] And it has to be digitally accessible.

[00:11:53] We talk a lot about the intention-behavior gap on this podcast.

[00:11:57] You know, ask any shopper, any consumer in a survey, do you want to buy more sustainably?

[00:12:01] And they're all going to say yes.

[00:12:03] But what do they actually go and do after they complete that survey?

[00:12:07] You know, shoppers don't want to sacrifice things like convenience.

[00:12:11] They don't want to pay extra for sustainability.

[00:12:14] The onus is often on the retailer.

[00:12:16] So I think Vinted kind of touches on all of these things.

[00:12:20] There are no sacrifices to be made.

[00:12:22] You can be frugal.

[00:12:24] You can, again, do your bit for the planet.

[00:12:26] And everyone's happy.

[00:12:27] The other important point here, just to build on the frictionless point, shoppers today are

[00:12:34] really intolerant of friction, right?

[00:12:36] We are living in this on-demand era where anything we want is just a couple of taps away.

[00:12:41] And, you know, the same goes for sellers on the platform.

[00:12:45] The sellers and buyers are often the same people, right?

[00:12:47] I mean, I just checked my Vinted account, but I haven't.

[00:12:50] I've been using it for like, I don't know, a Christmas jumper.

[00:12:54] The things that, you know, you don't really want to buy new or have to think about.

[00:12:57] And it's just easy and cheap and you feel less guilty about buying.

[00:13:00] Um, so I, I don't use it that much, but I just realized I have six pounds, um, in my account,

[00:13:06] which will probably make me go back to the platform and use it there.

[00:13:10] And that is what, what they've done, right?

[00:13:12] They've created this ecosystem.

[00:13:14] And so it's really important that sellers have that same slick frictionless experience.

[00:13:22] I know that, um, in the past Vinted has said that sellers can list an item within two clicks.

[00:13:30] So I thought that was interesting, you know, being able to list an item quickly, seamlessly,

[00:13:34] and without any fees.

[00:13:35] And that is really just removing all the barriers.

[00:13:38] And the result is this continuous flow of new products being added, which drives more buyers

[00:13:46] to the platform.

[00:13:47] Those buyers, again, they often become the sellers and it just creates this kind of flywheel

[00:13:51] effect, something we talk a lot about, uh, when we're talking about Amazon.

[00:13:56] Uh, so that's sort of it.

[00:13:57] And in terms of whether or not they are a threat, I mean, the journalist I spoke to said

[00:14:03] that there are, and I didn't realize this, but there are some hardcore vintage shoppers

[00:14:09] that now will only buy from Vinted.

[00:14:12] They've just, um, don't ever leave the platform.

[00:14:15] And I think it is interesting.

[00:14:17] It's also, I mean, I imagine that's a really small percentage of, of shoppers and most people

[00:14:23] want that variety, but it's interesting just to see how the stigma around buying secondhand

[00:14:29] has been completely shed, you know, secondhand or pre-loved is totally normalized.

[00:14:34] It's cool.

[00:14:36] Um, it's celebrated and it's also now accessible to a digitally native demographic to the Gen

[00:14:44] Z shopper that has grown up with technology and, and wants, you know, doesn't want homogenous

[00:14:50] high street styles, but wants that individualistic style and still get the thrill of a bargain.

[00:14:56] Um, but you can also find items that are unique or, or better quality because you're getting

[00:15:02] brands for a lower price.

[00:15:03] So I think, you know, again, it touches on a lot of consumer needs right now.

[00:15:07] Really, really relevant format.

[00:15:15] The last thing we are going to be talking about on today's episode is advent calendars.

[00:15:19] Now you may have noticed that there has been an absolute explosion in advent calendars.

[00:15:25] We've seen such a proliferation of choice here.

[00:15:31] It's not just about three pound Cadbury's chocolate advent calendars.

[00:15:36] I mean, there's advent calendars for everything.

[00:15:38] So I have been asked about this, um, by three different journalists just in the past few weeks.

[00:15:45] And, um, it's been really interesting to put together some thoughts and, and also to do

[00:15:50] some digging into, or just to, you know, spend some time structuring my thoughts to think

[00:15:54] about why this is actually happening.

[00:15:55] Um, the first thing I'm going to do with you though, is I'm going to share some, um, a

[00:16:00] very brief history of the advent calendar.

[00:16:03] Cause I was asked to do this for marketplace radio, which is a American radio program.

[00:16:09] Um, and then I also spoke to the BBC for a piece that went live over the weekend.

[00:16:15] And I will link to that in the show notes as well.

[00:16:18] So firstly, how did it all get started?

[00:16:20] Well, like a lot of Christmas traditions, the advent calendar started in 19th century

[00:16:26] Germany.

[00:16:27] By the way, when I said I didn't have a script, I totally have a script for this part.

[00:16:31] This is not my area of expertise.

[00:16:34] Okay.

[00:16:34] So what would happen?

[00:16:35] Well, Protestants would mark the days leading up to Christmas in a number of different ways.

[00:16:39] So they might light a candle, they might take chalk marks on a wall or door, or they would

[00:16:45] hang up a religious picture for each day.

[00:16:47] The first printed advent calendar was created by someone called Gerhardt Lang.

[00:16:53] This was in the early 1900s.

[00:16:55] And Gerhardt was apparently inspired by a childhood memory of his mother taping sweets to a piece

[00:17:02] of cardboard for each day of advent.

[00:17:04] He took the idea further by cutting little doors into the cardboard.

[00:17:08] And instead of finding chocolate behind the doors, like we do today, you would find a biblical

[00:17:13] picture or a biblical verse.

[00:17:16] And that is really how the modern advent calendar began.

[00:17:20] Now, a little bit of extra history for you, because it's really interesting what happened

[00:17:25] next.

[00:17:26] So these advent calendars pretty much disappeared during the war, during World War II, because

[00:17:31] of paper rationing.

[00:17:32] And also there was a Nazi ban on printing calendars with images.

[00:17:37] Fortunately, after the war, production picked up again, and these calendars evolved to become

[00:17:44] less religious, and also to include some of the things we find in calendars today, so chocolates

[00:17:50] and toys.

[00:17:52] So that's just a little bit of history.

[00:17:54] The next question I was asked was about novelty advent calendars.

[00:17:59] When did they begin?

[00:18:00] Why are we seeing such an explosion?

[00:18:02] I think the idea for a novelty advent calendar has actually existed for a while now.

[00:18:08] So for the past, I don't know, 10, 15 years, we've seen advent calendars for gin, cheese,

[00:18:16] socks, fancy chocolate, all kinds of things.

[00:18:19] But today you really can, as I said at the start, you really can get an advent calendar for just

[00:18:23] about anything.

[00:18:24] There are so many food and drink options.

[00:18:27] Everything from advent calendars for protein bars to Nespresso coffee pods.

[00:18:34] Like, you can get anything.

[00:18:37] Beauty, of course, is a category that has absolutely exploded, and that's what I was speaking to

[00:18:41] the BBC about.

[00:18:42] But you also have toys, jewelry, pets, super obscure things like chili sauce and instant

[00:18:51] noodles.

[00:18:51] And those are real things, by the way.

[00:18:53] If you go on Amazon, you can get each of those calendars for about 15 pounds.

[00:18:57] Okay, so why is this happening?

[00:18:59] Well, I think a couple of things.

[00:19:01] Firstly, it goes without saying, the way that we shop today is dramatically different to just

[00:19:07] 5, 10, 15 years ago.

[00:19:09] Now, in the UK, a decade ago, just 12% of retail sales took place online.

[00:19:15] Today, it's more like 25 to 30%.

[00:19:19] Now, that's created a lot of opportunities for brands, but the one big downside is that

[00:19:24] it's a lot harder for shoppers to discover new products in an online setting.

[00:19:28] So if you're shopping in a store, you might pick up a dress and try it on.

[00:19:33] You might sample some makeup.

[00:19:34] You can't do that online.

[00:19:36] And so I think a lot of brands are recognizing that advent calendars are a great way to get

[00:19:41] new products into the hands of the consumer.

[00:19:44] And obviously, the ultimate goal here is to acquire and convert new customers.

[00:19:50] Shoppers still want to treat themselves.

[00:19:52] They want good value.

[00:19:54] And they want that element of surprise.

[00:19:57] The other thing we need to call out here is that the advent calendar explosion that we're

[00:20:03] witnessing has also been fueled by social media.

[00:20:06] The whole unboxing trend is very compatible with an advent calendar.

[00:20:10] We are literally opening up little doors and discovering new products.

[00:20:14] Advent calendars tend to sell out anyway, at least the best ones do.

[00:20:18] And so if an advent calendar is going to go viral on TikTok, well, that is just going to

[00:20:24] add to the sense of urgency.

[00:20:26] And on the flip side, I think shoppers will know very quickly if an advent calendar isn't

[00:20:31] worth it.

[00:20:32] There was a great example of a Chanel advent calendar.

[00:20:35] It was priced at, I can't remember the exact price, but it was over like $500.

[00:20:40] It was, you know, as you'd expect, a luxury admin calendar.

[00:20:44] And that one went viral for all the wrong reasons.

[00:20:47] So, you know, there's a lesson there.

[00:20:50] This was a couple of years ago and TikTokers were saying it wasn't worth the hype.

[00:20:54] That message quickly spread to millions of people.

[00:20:57] And, you know, that's the risk today.

[00:20:59] There is nowhere to hide.

[00:21:01] There's so much pressure on retailers to make sure that these calendars and really anything

[00:21:05] that they're offering to customers is going to be of excellent value.

[00:21:11] And then there's one final point here around timing.

[00:21:15] Black Friday, I did a podcast about Black Friday last week.

[00:21:19] It is no longer a one-day event.

[00:21:21] It is a month-long event.

[00:21:23] And in fact, this year, I noticed that John Lewis, Curry's, and Boots all launched their

[00:21:30] Black Friday deals on Halloween.

[00:21:32] And that is the earliest I've ever seen.

[00:21:34] So how does this relate to advent calendars?

[00:21:37] Well, if shoppers are starting their Christmas spending in October, maybe early November, but

[00:21:43] if they're starting their Christmas spending earlier, well, then that creates an opportunity

[00:21:46] for retailers to reach this captive audience, to target them with advent calendars, higher

[00:21:54] margin advent calendars, and capture some of that early spend.

[00:21:59] So I think that's also played a role.

[00:22:01] Okay, that is everything from me for the week.

[00:22:04] Thank you, as always, for tuning in.

[00:22:06] And make sure to check back next week when I will have not one, not two, but three guests

[00:22:12] on the podcast.

[00:22:12] We are going to be talking about Amazon Fresh in Germany, and also we're going to be hearing

[00:22:17] from the technology directors at Primark and Ann Summers.

[00:22:21] In the meantime, have a great weekend.

[00:22:30] Thank you for listening to Retail Disrupted.

[00:22:32] If you enjoyed this episode and would like to support the podcast, please leave a rating

[00:22:36] or review or share it with others.

[00:22:39] It really makes a difference.