Condé Nast's GQ this week expanded its product offering at its online store, a sign its strategy to mix content and commerce is gaining traction. The selection of items is still
limited compared with the bonanza of merchandise that can be found at retailer websites, but a more cautious approach is merited to avoid the pitfalls of sitting on stale merchandise that goes
unsold.
The latest batch of products includes a $175 handmade,
GQ-branded sterling silver signet ring, a $45 matte black Zippo lighter, a $25 limited-edition
Nalgene water bottle and a $95
GQ hoodie, as
Publishers
Daily reported this week. The magazine replenished the stock of some items that had sold out, such as a long-sleeve shirt with a picture of "Seinfeld" co-creator Larry David from
GQ's "Wellness and Success" issue in February.
Revenue from retailing activities including ecommerce is enticing, but publishers need to be mindful of the potential
risks. Last year, magazine publisher
F+W files for bankruptcy, blaming its
effort to build an ecommerce business as a major mistake.
The company had tried to parlay reader loyalty to its enthusiast titles, which included Popular
Woodworking and Artists Magazine, into a business of selling arts and crafts supplies. The inventory went unsold as readers found better deals elsewhere, mostly likely in the
competitive cauldrons of Amazon or eBay.
Exclusivity is a key differentiator for any retail enterprise, especially as a slew of digitally native brands such as Allbirds,
Untuckitn and Warby Parker take on more established rivals. Well-known brands like Levi's and Nike are boosting their direct-to-consumer efforts to reach shoppers who are avoiding stores during the
pandemic.
The GQ Store expansion comes as publishers like Condé Nast aim to develop new sources of revenue to help offset declining ad sales. Ecommerce also is a way to
develop a rich source of first-party consumer data that is becoming more valuable as stricter privacy laws, such as those in California, make the sharing of third-party data a major liability.
With Google planning to end support for third-party cookies in its Chrome browser by 2022, and with Apple changing its software to notify customers when apps want to access its
device identifiers, ad targeting is going to become more challenging.
Publishers that build trusting relationships with their readers by respecting their privacy concerns
while also collecting first-party data will have an advantage in selling their ad inventories.
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