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According to data from April 2023, Gen Z will account for nearly two-thirds of second-hand purchases in the next five years Report From resale company ThredUp. American Eagle is trying to offer this customer easy resale shopping by selling used products through the Snap AR store. The previous AR store has already brought in $10 million in gross revenue for the brand, and it is now leaning even further on the technology to drive sales.
Selling used goods in a way that appeals to Gen Z has been difficult for brands, either because of clunky website integration, difficulty sourcing ideal items, or a lack of appropriate marketing for individual products on social platforms and brand websites, brands say. Way executives in previous interviews. Offering resale through both owned and third-party channels has been of great interest to brands in recent years. The North Face is currently at 2022.
On April 14, American Airlines launched RE/AE, an online resale store with a corresponding Snap AR pop-up store featuring 200 items. On the retailer’s app and website, shoppers can now shop for second-hand clothing from a curated assortment of styles from the ’80s, ’90s and ’00s. Through Snap Lens filters on a brand’s Snap account, customers can browse a virtual store and try on items through AR.
“This is the first time we’ve put used clothing in our top navigation, which is a major asset for any e-commerce site,” said American Eagle’s CMO Craig Brommers. “This makes it more accessible than ever before.” exposure.”
Brommers said the brand prioritized delivering a seamless experience from the Snapchat Lens pop-up store to vertical resale on the website. “If something catches my attention [as a shopper]the selling point for me is that I can buy it in that experience,” he said. “I don’t have to go somewhere else or be sent to ThredUp or the AE site [buy] it. “
According to the AE focus group, with Gen Z using TikTok and Snapchat as their two primary apps — TikTok for entertainment and Snap for communication — Snapchat is increasingly becoming a focus for the brand. With 750 million monthly active users, Snap has become the go-to choice for brand-driven AR activations, especially those targeting Gen Z. Brands like New Balance, Pangaia, and Gucci have launched AR activations on Snap. So far, the RE/AE Snap AR pop-up store has outperformed the brand’s benchmark rate by 5% in swipes on the platform. American Eagle declined to share its benchmark rate.
Snap worked with American Eagle’s marketing team to recreate the retailer’s in-store shopping experience, said Anthony DiMuccio, Snap’s head of U.S. retail and e-commerce. “The AR pop-up allows them to seamlessly select and learn more about the styles they are interested in. Globally, 92% of Gen Zers are interested in shopping with AR and we know sustainability is important to them ,” he said, citing Snapchat Generation 2022 Report.
According to Snap, two-thirds of Snap users interact with AR every day, and more than 70% of users who download the app do so within the first day of using the app. In a previous talk, Snap’s head of luxury, Geoffrey Perez, said that, as brands see it, high-resolution and seamless experiences are key to successful AR activations. American Eagle has operated eight augmented reality stores on Snapchat so far.
For American Eagle, the AR store is all about building brand identity and driving sales. Since 2020, the brand has made more than $10 million in revenue from its AR store running on Snap. “And unique, different and compelling experiences are dominating sales.”
But reaching Gen Z on Snapchat is a challenge. “What we’ve learned so far is to focus on a tight collection of about 20 SKUs and keep the store running for a limited amount of time, maybe two to three weeks,” Brummers said, reiterating the seamless experience importance. “It’s said to be loving, but Gen Z’s attention span is like a mosquito, and if there’s any friction in the experience, they bounce back, and they move on to something new.”
American Eagle Outfitters, Inc. reported fourth-quarter 2022 net income of $1.5 billion, down 1%, beating analysts’ expectations.
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