Nostalgia, Fast Fashion and Sustainability: The Week in Retail

Nostalgia marketing is giving retailers a boost, as the Barbie-fueled craze is expected to give Mattel a projected revenue of US$100 million in 2023. Meanwhile, Mexico’s rapid e-commerce growth becomes a beacon for cyberattacks, but there are strategies businesses can implement to prevent and defend against them. Amazon looks to mitigate carbon emissions with contractors by 2027. 

Read more in this week’s roundup! 

Clothing Sustainability: Fast Fashion vs. Second Hand

The fast fashion model, focused on quick and cheap clothing production, raises concerns about environmental impact and labor practices. In response, the second-hand clothing market is seen as a more sustainable solution, aiming to create a circular economy. Fast fashion's rapid production contributes to environmental and social issues, while the second-hand movement seeks to extend garment lifecycles and reduce emissions, with the potential to save billions and double sales by 2027.

OLX Auto Leaves Mexico, What Will Happen to Customers?

OLX Autos is shutting down its operations in Mexico, Argentina and Colombia, and scaling down in Ecuador and Peru, causing uncertainty for customers about their purchases and contracts. The company, known for buying, selling and financing used cars, will maintain its presence in select countries. 

Nostalgia Marketing Capitalizes on Barbie Movie

Mattel is projecting US$100 million in revenue this year, boosted by nostalgia-driven campaigns like the one for the Barbie movie. In Mexico, this marketing campaign yielded $51.8 million in sales, demonstrating the effectiveness of creating emotional connections through nostalgic products and experiences. Nostalgia marketing allows brands to tap into positive feelings and meaningful associations linked to the past to foster customer loyalty.

Retailer's Guide to Fortifying E-commerce Security

Mexico's rapidly growing e-commerce sector, projected to make up 22% of retail sales in 2023, is attracting cybercriminals who exploit vulnerabilities in digital systems. Retail Dive highlights prevalent fraudulent tactics that are causing significant losses for retailers, such as social engineering, payment fraud and loyalty program exploitation. To counter these threats, multifaceted verification protocols, including IP address checks and VPN detection are recommended, especially during the holiday season.

Amazon Will Require Suppliers to Set Mitigation Goals in 2024

Amazon has announced a new policy for suppliers, requiring them to share carbon emission data and establish carbon mitigation goals from 2024 onward. In its 2022 Sustainability Report, Amazon outlined progress in its ESG targets, highlighting that 90% of its energy demand was powered by renewable sources in 2022. The company's sustainability initiatives also include plans to transition to a fleet of 100,000 electric delivery vans by 2030 and the launch of the Climate Pledge Friendly (CPF) program in Mexico, offering sustainable and second-hand products to customers while promoting circular economy practices.