Influencer marketing is still in its infancy with social commerce expected to nearly quadruple in the next five years. Due to this cache, they have a distinct advantage in this space over many other companies. They are the preferred partner of influencers as Revolve's association enhances influencers’ personal brands. Influencer marketing is a strength for Revolve. Revolve was a pioneer in social media and influencer marketing, with a majority of traffic derived from organic sources. Revolve utilizes a strong brand with many different forms of outreach through networks of influencers, branded festivals, and traditional advertising. Revolve has effectively expanded out of the United States with “limited investment and no physical presence” and will continue to focus on Europe, Australia, Canada, Middle East, and the Asia-Pacific over the long-term.
Revolve brands free#
Its efficient platform combined with a robust logistics infrastructure enables free express shipping and free returns in the U.S., U.K., European Union, Australia, New Zealand, Singapore, and Canada.
Revolve brands full#
The company’s ability to capture a majority of its sales at full retail price sets it significantly apart from its competitors. In 2020, Revolve reported 77% of sales being at full price, defined as not less than 95% of full retail price. This platform is successful in adding a constant sense of newness to the site while reducing inventory risk. On its S-1 filing, Revolve cites making decisions in a data-first, customer-centric manner by leveraging 17 years of proprietary data that spans millions of customer interactions and hundreds of thousands of styles, creating “a strategic asset of hundreds of millions of data points.” Over 1000 new styles are added each week through a custom platform which manages inventory, pricing, and trend-forecasting. Currently, the website mostly targets women however, Revolve is constantly adding men’s selections.
Beauty was launched in 2016 and has been a rapidly growing segment for the company. There are over 750 emerging and established brands, including 24 owned and developed by Revolve, and 300 brands with Forward. The website selection is more targeted than department stores while offering a greater selection than boutique stores. Their offerings include a curated selection of premium clothing with Revolve, iconic and emerging luxury brands through their Forward line, and a wide range of beauty products. It is the go-to online source for discovery and inspiration for the millennial consumer. The company was ahead of its time in its vision to leverage digital channels to transform the shopping experience. Revolve was founded in 2003 by Michael Mente and Mike Karanikolas. Revolve presents an attractive opportunity to tap into a subset of the population with an increasing amount of disposable income as well as the growing luxury apparel market. With ~1.5 million active users, Revolve has built a loyal following and is still at the beginning of capturing a sizeable position in these markets. The company has also begun to cost-effectively expand outside of the United States with limited investment and will continue to tap into markets in Europe, Australia, Canada, and Asia Pacific. This leads Revolve to have gross margins that are much higher than competitors and has consistently enabled the company to operate at a profit. Revolve has consistently grown sales and leverages 17 years of data to sell a vast majority of its products at or near full price, capturing close to as much revenue as possible. Revolve's recent expansion into beauty products unlocks an even larger addressable market with the global cosmetics market valued at $380.2 billion in 2019 and growing 4.5% per year.
The addressable luxury apparel market is already large at $72.13 billion in 2020 and will continue to grow as these consumers continue in or begin their careers. Discretionary spending for these generations is much higher for items such as clothes and beauty products. Influencer marketing is still very much in its infancy and Millennial and Gen Z consumers are still early in their careers.
The company is the go-to shopping destination for the Millennial and Gen Z consumer and has a very strong social media and influencer presence. Revolve ( NYSE: RVLV) is a leader in online retail for premium and luxury clothing as well as beauty products. Active contributors also get free access to SA Premium. It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Editor's note: Seeking Alpha is proud to welcome Brendan Graniez as a new contributor.
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