This is how StockX is responding to the looming recession

Despite the current economic climate, the online marketplace has just launched its first ever global brand campaign. Here's why.

The post This is how StockX is responding to the looming recession appeared first on Inside Retail.

Founded in Detroit in 2016, StockX has grown from a niche online resale site for rare sneakers into a global online marketplace for fashion, electronics, art and other collectibles with a staggering US$3.8 billion valuation. 

Now, the business has launched its first ever global brand campaign as it looks to reach new customers and position itself more firmly as the go-to destination for a wide range of current culture products. 

Under the tagline ‘own it’, the campaign encourages people to celebrate their individuality through the clothes and shoes they wear, the games they play and the art they collect. 

“Tell the world what you’re about without ever saying a word,” the campaign video states. 

In an exclusive interview with Inside Retail, Deena Bahri, StockX’s chief marketing officer, revealed the thinking behind the new campaign, which was created in partnership with New York-based creative agency Mojo Supermarket.

“One of the reasons we loved ‘own it’ – besides the independent spirit and competence that it conveys – is that it can have multiple meanings,” Bahri explained. 

“It can play in that emotional space, but it can also play in that more literal ‘I want to buy it’ space, so we loved the versatility of the platform and the fact that it’s a perfect fit for the versatility of our business as well.” 

Launching on YouTube and streaming television this week, the campaign will eventually include digital banner ads, direct mail and out-of-home media, and a second phase on social media. 

The campaign represents StockX’s most significant marketing investment to date and one of the few times it has worked with an external agency. 

“It’s definitely a new moment in time for us in that sense,” she said.

Focus on global growth

The campaign comes after a period of rapid international expansion. After launching a London office in 2018, StockX opened an authentication centre in the Netherlands in 2019, followed by one in Canada in 2020 and another in Australia last year. 

In total, the business has 11 authentication centres worldwide and ships to more than 200 countries. 

“Our international expansion is a huge imperative for our growth,” Bahri said. “We are very focused on Australia as part of our APAC region. We’ve seen tremendous triple-digit growth in that region.”

She added that the APAC region is important to StockX not only for its growth opportunities, but also its influence on global fashion and lifestyle trends. 

“Some Asian markets are hotbeds of current culture, and for us as a brand that wants to be a driver in that space, they’re such important places to connect with the consumer,” she said.

But could the good times be coming to an end? StockX recently laid off 8 per cent of its total workforce, citing macroeconomic challenges. 

Bahri said the e-commerce industry has been affected by difficult trading conditions and that the layoff was a preventative measure in the face of a looming recession.

“We’re certainly not immune to that, although we are still outpacing the market and seeing healthy growth, especially in some of these key international markets,” she said. 

“We’re just trying to be prudent stewards of our business, and make sure that we’re in it for the long haul, and that all of our decisions today set us up for success.” 

Optimistic about the future

But while Bahri acknowledged the recent decline in consumer sentiment and spending, she remains optimistic about StockX’s ability to grow in the long run.

“I think there are certain categories of spend that are mainstays. I would say that apparel, sneakers, electronics and so on are core categories, and the consumer is continuing to be active, even if a little bit more cautious,” she said.

That’s why she believes it’s the right time for StockX to unveil its first global brand campaign. 

“Like many decisions in life, you can always find a reason not to do something. We are focused on the bigger picture and our broader journey as a company,” she said. 

“There are so many buyers and sellers out there that would love to be a part of our platform if only they knew that StockX was out there.” 

The post This is how StockX is responding to the looming recession appeared first on Inside Retail.