Fast Five Shorts | Buy Or Sell: Best Buy Storefronts?
In the latest edition of Omni Talk’s Retail Fast Five sponsored by the A&M Consumer and Retail Group, Mirakl, Simbe, Infios, ClearDemand, and Ocampo Capital Chris Walton and Anne Mezzenga discuss Whether they're buying or selling Best Buy Creator Storefronts
For the full episode head here: https://youtu.be/xZ2R3c0ZxsU
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Transcript
Best Buy has debuted a new creator program that features shoppable storefronts.
Speaker A:According to a Best Buy press release, Best Buy storefronts gives creators the ability to create a one stop shop to highlight tech featured in their content and earn a commission on sales referred through their storefront with no commission cap.
Speaker A:Several leading tech influencers are joining Best Buy creator program at launch with their own storefronts, including launch Linus Sebastian of Linus Tech Tips, who has over 16 million YouTube subscribers, obviously, and 8 billion views, as well as popular and trusted tech reviewer Judner Aura, also known as your average customer.
Speaker B:Yeah, he is.
Speaker A:Obviously is.
Speaker B:I don't know, Judder.
Speaker B:I'm assuming it's a guy I know.
Speaker A:Well, we know that they have a lot of aura, so that's a great thing.
Speaker A:Um, but Chris, are you buying or selling Best Buys new storefronts for creators?
Speaker B:Ooh.
Speaker B:Ooh.
Speaker B:I like.
Speaker B:I, and I like this story.
Speaker B:I'm buying this for the here and the now.
Speaker B:The here and the now and the future is what I meant to say.
Speaker A:If I'm gonna ask correctly.
Speaker B:Okay.
Speaker B:And the reason I say that is this is something I used to talk on the show about years back.
Speaker B:I don't feel like I've talked about it as much, although I think it's been coming back recently based on the recent headlines.
Speaker B:And that is that, like it or not, the retail influencers in the online space particularly are the new merchants.
Speaker B:They are the new retail merchants of the online space.
Speaker B:They're the ones that curate everything.
Speaker B:They're the ones that tell everyone what to buy.
Speaker B:So I think let that sink in.
Speaker B:Everyone, retail merchants are getting displaced by the influencers in the online space.
Speaker B:It's very important to just come to the realization and just buy into it because it's happening.
Speaker B:So I like what Best Buy is doing for a number of reasons.
Speaker B:One, it plays on that trend.
Speaker B:Two, it shows that Best Buy understands the trend and wants to build, build tools for this new merchant community.
Speaker B:And that means in turn that number three influencers will want to work with Best Buy because they'll want to show off their pages and they'll want to get the commissions from this.
Speaker B:So it's not, it's not that dissimilar to the story we talked about with Dig Sporting Goods a few weeks ago with their influencer program.
Speaker B:So this is the wave of the future, but here's the.
Speaker B:So this is the now.
Speaker B:Now I'll talk about the next, the future part.
Speaker B:But the really cool thing here is what does this mean?
Speaker B:For bricks and mortar retailers, because I think they can figure out how to turn their actual merchandising organizations into influencers as well if they want to.
Speaker B:But I've been talking about the first part for 10 years.
Speaker B:It's going to take another 10 years for some merchant organization with the 200 plus merchants that they've got running it to be able to take their PR teams and their comp teams and be like, let's put our merchants front and center and, and allow them to talk about why they're picking the products that they are and then let the merchants kind of duke it out in terms of who's the best influencer inside those organizations.
Speaker B:That's where I see this going in the long run.
Speaker A:So tell me more a little bit about what that looks like in the physical bricks and mortar store sense.
Speaker A:Chris, like, elaborate on that for me because I'm.
Speaker A:Yeah, I get where you're going, but like, what does that feel like, look like in your mind?
Speaker B:Yeah.
Speaker B:So if I was going to activate this today, like, say if I was back at Target and I was running Hope Furnishings, I would be like, okay, all right.
Speaker B:I've got, you know, I think at the time, 50, 60 buyers under me.
Speaker B:And they're all picking products, right?
Speaker B:Yeah.
Speaker B:And they're all picking products.
Speaker B:And they all understand, they should understand their categories better than the average consumer.
Speaker B:That's why they have the jobs that they have.
Speaker B:So I would go.
Speaker B:So I would go to my marketing team and be like, all right, putting out an rfi, RFP to a PR agency that's going to put our merchants in the role of influencer.
Speaker B:Get them a marketing campaign.
Speaker B:Get them.
Speaker A:Got it, got it, got it.
Speaker B:Put our marketing dollars behind them because, like, if they try to do it on their own, it's not going to go anywhere.
Speaker B:But they could do it with the power of Target or Walmart behind them.
Speaker B:It becomes really powerful and they can become celebrities in their own right to the advantage of the companies.
Speaker A:Right.
Speaker A:That might make the job of buyer a little bit more appealing than it is right now.
Speaker A:Those teams are under it right now just trying to sort through everything that they're.
Speaker A:Everything that's going on right now, 100%.
Speaker B:And then also it gets.
Speaker B:Helps the rubber meet the road too, because a lot of merchandising success is based on how you operate politically.
Speaker B:Where this could actually be determined by who actually has the most followers, who brings in the most commissions.
Speaker B:Like, right.
Speaker B:It's every.
Speaker B:It turns everything on its head.
Speaker B:So I think, I think There's a there, there.
Speaker B:It's just a question of who's going to bite the bullet and do it.
Speaker B:It'll be the startups.
Speaker B:First they'll come up with this idea and go after it, which is what they do already.
Speaker B:That's the funny thing about it.
Speaker A:Right?
Speaker A:Yeah, well, so I, I, I love that concept and thought and I'm excited to see that kind of take shape and especially what that, and if that ends up working and if that's a, a tool to acquire new teams within retailers that are, excuse me, have much more dimension to them and are able to actually do some things that allow their creativity to come through as well.
Speaker A:But I, for me, I think there were three immediate wins here in addition to what you talked about.
Speaker A:Number one, I think from a marketing angle, what Best Buy doing here is doing here is really smart because I think you start to look at how this influencer economy is going to start to shape how marketing spend is, is, is done in these retail organizations.
Speaker A:Because I don't think you're throwing as much money in this case at traditional marketing spending tactics.
Speaker A:You're not throwing money at TV ads that, and crossing your fingers that you see a sales lift afterward.
Speaker A:The best thing that brands can do right now to stay relevant, to increase awareness and to market is to create content.
Speaker A:And this removes Best Buys duty and expense in creating this content and becoming relevant or staying relevant with today's consumer, I think, you know, they're only paying influencers when sales are made here the sales are directly attributable to those influencers.
Speaker A:I think this just kind of shakes up exactly how, how they're marketing to consumers and for the better.
Speaker A:I think the second thing to pay attention to is search.
Speaker A:Now when you think about where people are discovering products now, not only when I go to Perplexity or Google or wherever I'm going to search these products, Best Buy is showing up in those search results and the influencers are showing up in the search results.
Speaker A:And I think that just boosts both Best Buy and the influencers relevance and allows you again to show up in more places where people are looking to discover content.
Speaker A:And then finally, I think scaled content is another thing here for these influencers.
Speaker A:They're only creating one video.
Speaker A:They're taking the content that they're already producing and then they're able to distribute that now across all of Best Buys platforms and make more money on it.
Speaker A:And they're not capped.
Speaker A:They can, you know, like this is endless possibility for them as influencers.
Speaker A:So I think those are three areas that I'm really keen to follow.
Speaker A:You know what Best Buy is doing, what Dick's Sporting Goods is doing and just kind of how this whole thing evolves and what that does to our industry as a whole.
Speaker B:Yeah.
Speaker B:You know, and I got to call you out for something there that you just said.
Speaker B:You know what it was, what you said?
Speaker B:Duty.
Speaker A:Duty.
Speaker B:Duty.
Speaker A:Did I?
Speaker B:Duty.
Speaker B:You said duty.
Speaker B:Yes, duty.
Speaker A:My God.
Speaker B:Duty.
Speaker B:And it's duty for duty for Beavis and Butthead fans and duty for tariffs.
Speaker B:So very, very apropic time.
Speaker B:Again, you said duty.
Speaker A:All right, all right.
Speaker B:Yeah.
Speaker B:But I agree with you 100%.
Speaker B:I agree with you 100%.
Speaker B:The one caveat I would have in this story, though, is you still got to get traffic to these pages.
Speaker B:Right.
Speaker B:So the first thing, the first and foremost thing that that Best Buy needs to do is to make the conversion of the sale and social commerce easy for these influencers, which I imagine it's thinking about.
Speaker B:But this gives them an easy landing spot for that to happen, too.
Speaker B:So that's part of.
Speaker A:Well, and data to support it.
Speaker A:Like, they'll know quickly if it's not working.
Speaker A:Like, they'll be able to see, like this person was not able to sell or this person's not converting, and it allow them to, like, pinpoint that to an exact degree where with TV or with out of home or some of these other traditional radio ads, whatever it might be.
Speaker A:Like, you don't have the specificity that you get with these types of campaigns.
Speaker A:So I love it.
