In a time when many retailers are struggling to stay afloat, fashion label Lulus just raised $120 million from venture capital firm IVP and Canada Pension Plan Investment Board. The brand, which began as a brick-and-mortar boutique in California, moved fully online eight years ago. For retailers trying to get the hang of e-commerce, here are three key lessons from Lulus:
1. Zero in on millennials: Though the e-tailer is still unknown to many, it’s become a fast favorite amongst millennials, a group that spends more and more time (and money) online shopping. This means the majority of growth in the retail sector now takes place in the digital space. E-commerce sales in 2017 increased by almost 15% year over year, according to Gartner L2’s Digital IQ Index: Specialty Retail report.
2. Smooth out your site: Lulus uses a variety of features to keep customers satisfied online, including a visual search tool and an extensive product review section. Brands with agile digital strategies like these are more able to steal market share from legacy brands that have traditionally dominated the industry.
3. Step up on social: Instagram captured an impressive 96% of total social media interactions for retailers over the last year alone. Through the platform, Lulus gains another advantage. More than 85% of the brand’s online clothing is Lulus-branded; when the Lulus Instagram handle shares these items using the hashtag #LoveLulus, 1.3 million followers become increasingly loyal to the brand.