Brands credit TikTok creators

It’s Monday!

TikTok's latest feature lets users create AI replicas of their own voice for video voiceovers, but while it adds personalization and language translation options, it raises questions about whether this kind of AI-driven innovation truly enhances the social media experience or just moves us further from genuine human interaction.

TL;DR:

• Brands credit TikTok creators: Brands are finally giving TikTok creators credit for viral trends, moving towards more ethical collaborations.

• Start-ups winning in luxury e-commerce: Smaller luxury sites thrive by offering unique, affordable brands and cutting costs.

• Luxury ‘dupe’ brands succeed: Affordable brands like Quince and Italic attract shoppers by mimicking luxury quality without high prices.

• The 'Chief ___ Officer' strategy for influencers: Instead of just paying influencers for standard endorsements, give them a 'Chief' title that aligns with their personal brand.

Brands finally credit TikTok creators for viral trends

Brands like Netflix, Zillow, Syngery, and Lyft are finally giving credit where it’s due by partnering directly with TikTok creators like Jools Lebron, who sparked the “Very demure. Very mindful” trend. This marks a shift in how brands approach viral moments, moving away from co-opting content to genuinely collaborating with creators.

Historically, creators from marginalized communities have pushed for recognition and compensation for their viral contributions. Now, brands are starting to listen, acknowledging that failing to credit original creators can lead to backlash.

By directly collaborating with creators, brands like Lyft and Netflix are finding more authentic ways to engage with audiences, avoiding past mistakes where viral trends were used without proper credit, like with the "Renegade" dance or "On Fleek" phrase.

As creators gain more recognition and the legal landscape around content rights evolves, brands are learning that ethical collaborations are not just the right thing to do—they’re smart marketing.

The start-ups defying the luxury e-commerce slump

While big luxury e-commerce players like Farfetch and Matches struggle, smaller marketplaces like Cult Mia, Wolf & Badger, and Garmentory are thriving by focusing on emerging, affordable luxury brands and keeping their operating costs low. Key Takeaways:

1. Avoiding inventory costs: Unlike larger competitors, these start-ups don’t own inventory. Instead, they let brands handle packing and shipping, taking a cut from each sale. This strategy helps maintain high gross margins and reduces financial risk.

2. Exclusive offerings: These platforms focus on unique, emerging brands that aren’t widely available elsewhere. By not competing directly with bigger names for high-end brands, they attract shoppers looking for something different.

3. Controlled pricing: Smaller marketplaces give brands more control over pricing and discounts. This avoids excessive markdowns, maintaining both brand image and profitability.

4. Additional revenue streams: By offering services like marketing placements for a fee, these companies create recurring revenue beyond just sales commissions, which helps cover operational costs.

5. Personalized shopping experience: With tools like personalized homepages based on browsing history, these platforms enhance the shopping experience, increasing conversion rates and customer loyalty.

Why it matters: These start-ups show that a focus on unique, curated selections and smart cost management can provide a path to profitability, even in a tough luxury market. They're capitalizing on a growing consumer desire for niche, indie brands over mainstream luxury labels, making them ones to watch in the evolving retail landscape.

What luxury ‘dupe’ brands are getting right about shoppers

Start-ups like Quince and Italic are thriving by offering affordable, high-quality basics made in the same factories as luxury brands. By mimicking the luxury look without the hefty price, they're tapping into a sweet spot for middle-class shoppers who want quality but are price-conscious.

• Rapid growth: Quince grew to $300 million in sales last year and aims for $1 billion in 2024. Its strategy? Selling unbranded luxury-style products at a fraction of the cost.

• Value over branding: These brands don't focus on a unique identity but rely heavily on social media ads to attract customers looking for luxury without the price tag.

• Retention tactics: Italic uses a $60 annual membership for exclusive deals, driving repeat purchases and customer loyalty.

• Lessons for other brands: Established brands can learn from Quince and Italic by clearly communicating value and focusing on quality at a competitive price.

The takeaway? Brands that offer high-quality alternatives at lower prices are winning over consumers looking for value, proving that affordability and quality are a powerful combination in today’s market.

MARKETING IDEAS

The 'Chief ___ Officer' strategy for influencers

Instead of just paying influencers for standard endorsements, give them a 'Chief' title that aligns with their personal brand.

Why this works:

1. Authenticity boost: Titles like 'Chief Adventure Officer' or 'Chief Style Guru' make influencers feel like co-creators, fostering a deeper, more genuine connection with your brand.

2. Increased engagement: Announce their role on social media and create a special landing page. This strategy drives more traffic and engagement as followers feel a closer tie to both the influencer and your brand.

Successful examples:

• Virgin Voyages named Jennifer Lopez as ‘Chief Entertainment Officer.’

• Ridge Wallet appointed Marques Brownlee their ‘Chief Creative Partner.’

• Podia made Jill Dalton the ‘Chief Flavor Officer.’

Tips for implementation:

• Tailor the title to fit the influencer’s niche, like 'Chief Workout Warrior' for fitness influencers.

• Keep it fun and unique to make the role memorable without needing a real business function.

Key takeaways:

1. Parasocial interaction: Fans already feel connected to influencers; this strategy deepens that connection with your brand.

2. Halo effect: Positive feelings towards the influencer extend to your brand, especially with a fun, distinctive title.

This strategy transforms influencers into genuine brand advocates, driving more meaningful engagement and loyalty.

Extras…

• TV advertising campaigns: Examples & advice for marketers.

• The luxury e-tailer is closing Farfetch Platform Solutions, which provides online shopping tools for retailers like Harrods, as Farfetch’s operating losses drags down its new owner Coupang’s profits.

• Job seekers encounter a ‘brutal and frustrating’ hiring market in e-commerce.

• How brands can beat the e-commerce slowdown: The upside for online sales may be lower than many retailers anticipated. Physical stores and social commerce could make up the gap.