ClickZ Kitchenware Newsletter - 12.19.2024

PLUS: Black utensil panic debunked & NEXE's sustainable pod deal

Author

Rachael Kennedy
December 19, 2024 • Estimated Reading Time: 7 minutes

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Welcome to ClickZ Kitchenware, your essential newsletter for commanding the digital marketplace ecosystem as a kitchenware brand.

This will be our final edition for 2024, and so on behalf of the entire ClickZ team, we wanted to wish you a Happy Christmas! We will be back in the new year to bring you all the insights needed to help your kitchenware brand succeed in the eCommerce space.

Top Reads 🌟

ProCook Group, one of the leading direct-to-consumer kitchenware brand, has reported a 7.5% revenue increase to $35.7 million. This growth, outpacing the market by 5%, is a testament to ProCook’s strategic foresight and dynamic approach.

The company has effectively leveraged e-commerce, achieving a 9.4% increase in online revenue, driven by a new website and expanded reach through Amazon UK. This digital pivot underscores the importance of adapting to consumer behavior shifts, a critical insight for marketing professionals aiming to enhance conversion rates.

Retail revenue also saw a 6.5% rise, bolstered by new store openings and consistent like-for-like growth. ProCook strategy of broadening brand reach and product offerings has attracted 315,000 new customers, a 9.8% increase, highlighting the power of targeted marketing and customer engagement.

Despite challenges such as weak footfall during the UK’s Budget event, ProCook strategic investments in marketing efficiency and store expansion are expected to sustain growth. The ambition to reach 100 stores and $126.3 million in revenue reflects a clear vision for sustainable growth.

Sector Spotlight 🎥

MARKET RESEARCH
Black is Back?

The recent uproar over black plastic kitchen utensils, fueled by a study suggesting high levels of Brominated Flame Retardants (BFRs), has been somewhat misplaced. The study, conducted by Toxic-Free Future, initially claimed that these utensils, made from recycled electronics, posed significant health risks.

However, a mathematical error exaggerated the perceived danger. Joe Schwarcz, a chemist from McGill University, highlighted the miscalculation: the study exposure estimate was far below the actual reference dose, reducing the urgency of the threat.

The paper correctly gives the reference dose for BDE-209 as 7,000 nanograms per kilogram of body weight per day, but calculates this into a limit for a 60-kilogram adult of 42,000 nanograms per day. So, as the paper claims, the estimated actual exposure from kitchen utensils of 34,700 nanograms per day is more than 80 percent of the EPA limit of 42,000.

That sounds bad. But 60 times 7,000 is not 42,000. It is 420,000. This is what Joe Schwarcz noticed. The estimated exposure is not even a tenth of the reference dose. That does not sound as bad.

The initial panic, driven by a typo, mirrors challenges in marketing where misinterpretation can lead to misguided strategies. Marketers must ensure data integrity to maintain credibility and make informed decisions.

Despite the error, the study core hypothesis remains valid, suggesting a cautious approach to black plastic utensils.

Wolf Home Products introduces Chateau Stain, a luxurious finish on European Oak, enhancing the Grove door style. This addition to the Wolf Classic Cabinetry line reflects customer feedback and market trends, offering a sophisticated, in-stock option that combines quality craftsmanship with a timeless design, meeting evolving homeowner preferences.

NEXE Innovations and Bridgehead Coffee have signed a multi-year manufacturing agreement, enhancing their partnership with BPI-certified compostable coffee pods. This collaboration underscores the growing demand for sustainable solutions in the coffee industry, aligning with Bridgehead commitment to quality and environmental responsibility, and driving market share growth.

Influencer Corner 📣

Google's decision to stop prioritizing PMax over Shopping campaigns is already making waves. Shopping CPCs have doubled YoY, reflecting advertisers’ growing shift back to Shopping for better control and strategy. With Shopping spend set to increase further, CPCs could spike even more.

READ INSIGHTS FROM JOSH DUGGAN HERE 👉

I keep talking about this but 90% of the small brands I speak to have one have one BIG problem.

Creative volume.

They produce 4 ads a month and struggle to get past $10k/mo in spend.

Why? They simply aren't testing enough creative. Simply put.... Creative testing is like mining for gold.

If you only swing the pick axe 4 times a month, you'll never find anything. Swing it 50 times and you chances increase significantly.

Ben Redack, Nomad Project

Buy with Prime is like adding an express checkout lane on your site

Running a DTC brand without using Amazon’s Buy with Prime integration is like running a marathon in flip-flops...

You can still do it, but you’ll have an extreme disadvantage. Customers want to shop on a site they can trust, especially during the holidays.

In fact, brands using Buy with Prime have experienced, on average, a 16% increase in revenue per shopper. 40% of Prime members have said that they are more likely to make a first-time purchase from a DTC brand with the Amazon Prime logo, meaning Buy with Prime helps attract new shoppers.

Nik Sharma, CEO, Sharma Brands

Performance Pulse 📈

Performance marketing in 2025 will focus on strategic use of AI, first-party data, and personalized engagement to enhance customer loyalty and efficiency. As costs rise and effectiveness declines, marketers must prioritize creativity and strategic value. Agencies face pressure to adapt, while skills in strategy and technology become increasingly vital.

TikTok ads require strategic optimization for success. Key steps include defining objectives, refining audience targeting, enhancing ad creativity, and utilizing automated bidding. Additionally, adjusting ad placements, retargeting, and leveraging advanced features are crucial. Continuous testing and alignment with TikTok trends ensure maximum ad performance and brand visibility.

Influencer Partnerships

Crocs ➡️ Influencer Marketing Manager

📍 Broomfield, CO

Marketing & Communications

Fospha ➡️ Partnerships Executive

📍 Austin, TX, USA

Affiliate Marketing

Macy’s ➡️Director, Affiliate Marketing

📍 New York, USA

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