What’s killing sales?
Small business owners, rejoice! There is finally a support group for entrepreneurs who feel alone. The membership will cost you, however.
A bit of good news, the U.S. Small Business Administration is making it easier to do business at home and get loans. We'll explore that, as well as Banana Republic's celeb-centric marketing strategy and how some makers get around tariffs with creative re-classification. Also, design expert Josh Greene shares his pearls of wisdom.
Design expert spills the goods on merchandising, store design
New York-based interior designer Josh Greene is an 18-year design industry veteran who, before founding Josh Greene Design, worked for Ralph Lauren, Michael Smith, and Sawyer Berson, among others. Here, he shares his wisdom on merchandising and store design. –Marcy Medina
What's your advice for retailers who carry or are interested in carrying home design products?
In terms of assortment, you want people to have a sense of discovery. To me, that means establishing relationships with independent makers whom you champion. You definitely need workhorse vendors that are set up to wholesale, but you don’t want everything to feel factory-produced. I’d also have a clear edit of things that go together that make it easy for people to purchase different categories, and avoid trying to be all things to all people. Check out more unique gift shows like Shoppe Object and the Wanted section at ICFF (International Contemporary Furniture Fair). I also think small design services like quick upholstery or making pillows are a great way to help people and build relationships. Or offering services like, “I’ll design your holiday tablescape,” so you give them all the parts down to the napkin rings.
What are some design trends you're seeing/loving now?
There are so many cool makers creating products with more soul. I’m partial to handmade ceramics from people like Devin Wilde, Carlos Otero, Danny Kaplan and Shane Gabier. And tabletop by people like Sophie Lou Jacobsen. This goes back to knowing who your customer is. Are you for the customer who wants a Zen home with “quiet” design and neutral colors? Or are you someone who embraces color and design with more personality? You need something digestible with a point of view.
What do you love to see when you walk into a store?
Items grouped together by category. If I am looking for new water glasses, for example, I want to see all the options and colors that you have. And if they’re merchandised together, that’s ideal for me. But I understand some people want stories, styles or “themes” laid out for them. I also like to shop vintage because I like feeling like I found something unique. So I would highly suggest adding vintage to your mix. Also merchandising by color and mood is a more soothing way for the eye to shop.
What have you learned from past jobs about good store design?
I think it’s extremely important that you have your own identity both in your assortment and your physical space. You want to sell people on your world, which will in turn persuade them to buy something so they can take a piece of that magic home with them. And then keep coming back for more! No one does this better than Ralph Lauren, where I worked in-store design in the aughts. You want the architecture of the space to be cohesive with the types of products you are selling. Restoration Hardware is also good at this type of world-building. For example, you don’t want to sell French antiques in a midcentury strip mall. People need to walk into your space and think, “Yes, this is exactly how I want to live.”
This SMB support group is the hot new membership
Entrepreneur Rand Larsen, 29, has spent over a year traveling the country in a camper van, hosting small business seminars and meeting with over 500 owners. So far, 35 have joined his small business networking group, at an eye-popping $3,000-a-year membership fee. A study found that only 17% of small business owners seek peer advice, and fewer than a third with formal growth plans share them with a CPA, lawyer, or banker. Larsen’s SMB Community requires members to have at least $1M in annual revenue but has no other restrictions. Many see it as therapy—because, as any founder knows, running a business can be lonely.
Why this matters: While business networking groups and business coaches have been around for ages, Larsen has honed in on a specific type of entrepreneur (mostly family-oriented men in their 30s and 40s striving to scale) and created a model where non-competitive small business owners can speak freely and get support. Whether you join or not, it’s a great business model. (Forbes)
Made in America: SBA’s initiative to cut red tape, enable loans
The U.S. Small Business Administration launched its Made in America Manufacturing Initiative last week. The agency said it will cut $100B in regulation costs and launch a Red Tape Hotline for small business owners and manufacturers to share feedback and flag unnecessary regulations. The SBA is also trying to make it easier for people to qualify for small business loans, including those for real estate, construction and equipment purchases. This is part of President Trump's plan to create jobs and bring manufacturing stateside, using tariffs to convince companies to invest in U.S. businesses and avoid import duties.
Why this matters: While Vice President Vance spoke about the plan during a visit to a Michigan plastics plant, it may have still sounded like a campaign stump speech with “cut your taxes” and “slash your regulations” among his promises. Yet the administration’s moves so far have convinced companies across sectors to commit to U.S. investment. (Manufacturing Dive)
"ChapStick pockets" & other creative ways brands dodge tariffs
Adapt or die: Takeaways from AAFA’s exec summit
Kohl’s moves from DEI to “inclusion and belonging”
Consumer sentiment falls to lowest in 29 months
Khakis w/ a dose of celebrity: Banana Republic’s marketing play
Rare Beauty CMO speaks to Gen Z via community-building
Selena Gomez’s Rare Beauty is on its way to becoming a unicorn; the 5-year-old company is estimated to be worth billions, echoing Glossier before it and with just as fervent a Gen Z following. Leading Rare Beauty’s marketing efforts from the beginning is beauty industry veteran Katie Welch, known for propelling companies like Hourglass to explosive growth. At SXSW earlier this month, she spoke about how Rare Beauty used an influencer-first strategy to create an online fan base so engaged that the company could wait five years before launching its first major ad campaign.
“I can argue not every brand has to have a brand purpose, but I do think every brand should have a community. That’s why you exist." - Katie Welch, Rare Beauty
Why this matters: Welch likened her community-oriented marketing approach to a lasting friendship that needs constant attention and communication. Their version of social listening, weekly Zoom calls called Rare Chats, helped galvanize customers during its pandemic launch. Today, Rare Beauty ranks second to e.l.f. and ahead of Maybelline in popularity among teens. Read the full article in Marketing Dive.
YouTube Shorts, branding’s next big thing?
Short-form video is now the fastest-growing content type in the video-sharing space, garnering more engagement and usage time than long-form videos. It's estimated that Shorts get 90B views daily. And it’s not just content creators that YouTube is courting to make Shorts, it’s brands too. A new report released with data insights from eMarketer is aimed at helping brands leverage Shorts to make sales. Among the stats: 96% of Gen Z said they watch both short and long-form videos, and average daily Shorts viewers grew 25% YOY in the U.S. The report suggests teaming up with content creators to propel your brand with shoppers.
Why this matters: On YouTube specifically, consumers are more likely to trust their favorite creators’ recommendations because they’ve been watching those creators for years. How many Instagram accounts have you actively followed for 5+ years? TikTok has hardly been around that long. YouTube suggests using a company like BrandConnect to find creators to partner with. (Social Media Today)
Tariffs won’t hurt off-pricers but immigration policy will
The off-price retail model—selling excess inventory from other brands at a discount—helps retailers like Burlington, TJX and Ross avoid most import duties. However, one of the administration’s new policies is hitting them hard: the immigration crackdown. Many Ross shoppers are Hispanic consumers, according to Chief Operating Officer Michael Hartshorn, and analysts suggest some may be spending less due to the current climate. In contrast, TJX has adapted by attracting higher-income customers. Q4 earnings from all three retailers showed signs of caution.
Why this matters: While off-price retailers typically benefit during economic uncertainty, their Q1 results could reveal how immigration policies are impacting them—and other businesses that rely on immigrant shoppers. (Retail Dive)
Now that's dedication. Instead of closing his video store in Idaho, the owner relocated it just for his most loyal customer.
Throwing shade. B-Dubs vision goggles and limited edition Meta Ray-Bans, keep the tech-assisted eyewear craze buzzing.
Power in her hands. L.A. content creator MaCenna Lee shares her life and DIY projects as she renovates her L.A. house and Texas cottage on XO, MaCenna. She loves a power tool and a can of paint. And? She also runs a scented candle business.
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The SKUpe is curated and written by Marcy Medina and edited by Bianca Prieto
