Digital Brands Groups Inc. (NASDAQ: DBGI) jumped 31.05% after the company announced expanding its e-commerce ecosystem to launch a selection of brands on the Amazon marketplace this fall.
Online shopping surged during the pandemic, especially apparel sales
According to a Wells Fargo survey from March, Amazon surpassed Walmart as the top clothes vendor as the pandemic pushed more people to online shopping. Wells Fargo projects Amazon’s footwear and apparel sales in the United States to increase by around 15% in 2020, to more than $41 billion, putting it 20% to 25% ahead of Walmart.
A VentureBeat analysis in 2020 showed that electronics, clothes, and home and kitchen goods were the most popular purchasing categories by Amazon Prime users in the US. Amazon product searches for women’s clothing had a 42% market share, as per a September 2018 survey from Retail Dive.
DBG’s Chief Marketing Officer, Laura Dowling, said that their marketing approach now includes an extra consumer acquisition channel through Amazon. She said that they looked at data from various apparel manufacturers that have used Amazon’s marketplace. They are thrilled about the potential the channel offers to enhance brand exposure and customer acquisition.
DBG nearing an agreement with a marketing services agency
Also, the company is pleased to be finalizing the completion of an agreement with a marketing services agency specializing in Amazon advertising. With the agreement, DBG will increase brand awareness and customer acquisition. The company has a tactical plan for expanding into Amazon in the near future, aiming for a fully interactive, unique DBG store with exclusive content.
Laura added that Amazon is a powerhouse in the retail world regardless of the category you are in. She said that any brand should have a well-designed, high-traffic presence in the marketplace to increase brand recognition and encourage sales both on the platform and through other channels.