5/13/2023 0 Comments Nasty gal series![]() ![]() In Nasty Gal’s case, the inability to hold on to customers led to what’s called “a leaky bucket” situation, analysts said. “If you spend $50 on marketing to get a customer to buy something and they only buy once from you, you are probably not making money.” “You end up spending money via marketing online like banner ads (or paying) influencers,” said Ari Bloom, chief executive of Avametric, a fashion software company in San Francisco, and an investor in fashion startups. ![]() ![]() It’s a strategy that only pays off in the long-run if one-time buyers become loyal shoppers. (In a stark example of appearance versus reality, Forbes magazine predicted that its 2015 sales would top $300 million).Īnalysts said that Nasty Gal’s rapid growth was fueled by heavy spending in advertising and marketing. But it wasn’t long before sales started dropping - to $85 million in 2014, and then $77 million in 2015, according to bankruptcy documents. ![]()
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