Tag Archives: ecommerce

Netflix Launches Netflix.shop

Movies have long generated revenue from sales of merchandise related to the shows (think Disney). According to trade group Licensing International, sales of licensed products tied to shows was roughly $49 billion in the U.S. in 2019, and $128 billion globally. That’s a big number and one that has attracted Netflix to enter the market with its own merchandise line and shop.

Not content to have us all streaming entertainment constantly, Netflix now wants us to shop on its platform, too. Netflix has launched an online store with items that are highlighted in its shows. While Netflix holds a dominant lead in streaming, it also needs to have new sources of revenue in order to expand. Competitors such as Hulu and HBO Max charge streaming fees, but they also show commercials to generate additional revenue. Netflix does not have that revenue stream.

The new online store will sell apparel, merchandise, and collectibles from favorite shows such as “Stranger Things,” “Lupin,” and other shows. Limited edition street wear and action figures based on “Yasuke” and “Eden” (anime series) are now available. Lupin merchandise includes baseball caps, shirts, hoodies, throw pillow, and even a side table. All of the Lupin products were designed and produced in cooperation with the Louvre Museum. Future products will be based on popular series including “The Witcher” and “Stranger Things” along with Netflix logo apparel.

This isn’t Netflix’s first foray off screen. It has previously created video games based on popular shows and has agreements with department stores to sell products as well.

What will you buy?

Group Activities and Discussion Questions:

  1. Poll students: What movies and shows can they list that have licensed products for sale?
  2. Have they purchased items related to these shows?
  3. Show Netflix’s new store: https://www.netflix.shop/
  4. Discuss the various promotional tactics that can be used for marketing a product. Have students come up with tactics and list all the tactics on the white board (ex: billboards, print, direct mail, etc.).
  5. Divide students into teams. Have each team outline a marketing plan for Netflix.shop and have each team select three different tactics. For each tactic, explain why it was selected and how it will be used.
  6. How can this plan be expanded to new geographies outside the U.S.?

Source:  New York Times; Reuters; other news sources

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Apple Advertises its Privacy Strength

Data privacy is undoubtedly an important issue of the times. With the proliferation of mobile devices, website tracking, location enabling, and the pervasiveness of social media, one can be pretty sure that one way or another we are being tracked on our devices.

Apple states “Privacy is a fundamental human right. At Apple, it’s also one of our core values.” Hmm… Even with that statement, it makes one wonder just what is happening with our activities and data. Who know what about us? What do they do with this information?

Enter powerful new advertisements from Apple that illustrates how we are being tracked. The videos show how crowded it gets when companies are tracking our movements and purchases. Great ads.

Apple’s new advertisements, “Tracked,” highlight how its app tracking transparency tool lets users opt out of letting apps track interactions. The company also has the support of privacy watchdog groups such as Privacy International. Users should get to choose for themselves which companies they will share information with about their actions.

The new tool is part of iOS 14.5. It’s simple to choose. When an app wants to follow our activities to share information with third parties, a window shows up on our device to ask for permission. If the answer is “No” the sharing stops. Good for consumers. Not so good for companies (such as Facebook and Google) that rely on tracking to see what we are shopping for in order to target its ads.

Privacy. Simple, powerful, and needed.

Group Activities and Discussion Questions:

  1. Discuss the topic of privacy and data tracking with students.
  2. What is their opinion? What is their level of concern?
  3. Show Apple’s website statements about privacy: https://www.apple.com/privacy/
  4. Show advertisements: https://youtu.be/8w4qPUSG17Y
  5. Another ad: https://youtu.be/rEWeA7qDV4k
  6. Divide students into teams. Have teams research competing phone manufacturers to see what those privacy policies state.

Source: Advertising Age; Apple; New York Times; other news sources

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Black Friday/Cyber Monday 2020

Since we wrote about November 11 – Singles Day in China, it seemed only fitting to next cover U.S. shopping over Black Friday and Cyber Monday. And, while the gross revenue sales in the U.S. fell well beneath the 2020 Singles Day record of more than $75 billion in purchases over an 11-day period, U.S. shopping still hit record levels of roughly $9.6 billion on Black Friday, an increase of 21.6% from 2019!

Black Friday shopping was followed by another strong shopping day tallying $10.6 billion on Cyber Monday. To many marketers, more interesting than the dollar amounts are the shifts in habit to online shopping. In particular, sales on mobile devices accounted for an estimated 40% of purchases for a total of $3.6 billion, an increase of 23% compared to last year. Mobile is where it’s at these days.

Some additional shopping highlights:

  • People spent an average of $312 on holiday purchases between Thanksgiving and Cyber Monday.
  • Americans spent 116.6 million hours shopping online.
  • Consumers spent $6.3 million per minute online.
  • Average spending per consumer online was $27.50.
  • Biggest categories were electronics, clothing, and toys.
  • In-store shopping on Black Friday declined 37% .
  • Online shopping on Black Friday increased 8%.

Consumer shopping habits are certainly changing. Now marketers have to keep up!

Group Activities and Discussion Questions:

  1. Discuss the changes in U.S. consumers’ shopping habits.
  2. What new shopping habits have the students formed?
  3. Where do they shop? Why? Online and in person?
  4. Show video about the changes in store for Black Friday shopping: https://www.wsj.com/video/the-end-of-the-mad-rush-how-2020-is-reshaping-black-friday/FD19834F-9701-46E9-A6D5-14A1AE2F9601.html
  5. Poll students about their shopping over Thanksgiving Week – Cyber Monday. How much was spent, which products were sought after, etc.?
  6. Divide students into teams.
  7. Considering the increasing use of shopping on smart phones, have students develop a marketing campaign specifically for mobile devices.

Source: AdWeek; CNBC; New York Times; Wall Street Journal; other news sources

 

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