Bringing the Stage Lights to E-Commerce

By: Isabella Artiles

If you do a quick Google search of the phrase ‘e-commerce trends’ you will find a myriad of articles talking about how COVID-19 accelerated the move towards online and digital. Sure, the pandemic forced us to stay at home for the past year with nothing better to do than shop online. But, as companies look towards a post-pandemic world, being online will not be enough. Consumers are becoming more and more demanding about their online shopping experience and will not settle for a nice-looking website. This is why we invested in SHOPFLIX, they’re redefining the shopping experience by combining the two things Millenials and Gen Zs love the most: digital content + e-commerce.

Trends and Shifts in E-Commerce

E-commerce has grown steadily over the last decade fueled by the rise of mobile adoption and internet accessibility. However, this trend exploded in 2020 with the global COVID-19 pandemic. The growth in e-commerce is driven by convenience and availability. People are able to shop from their couches for a wide range of items and prices without having to compromise on satisfaction thanks to online trials of apparel and accessories¹.

Gen Zs and Millennials were among the first ones to adopt the online shopping trend and represent a powerful majority of consumers in the coming decade, but targeting these customers requires more than just ease of reach². These consumers shop very differently than previous generations: their purchase decisions are heavily influenced by social media. In a survey of 2,000 consumers between the ages of 18 to 40 (split evenly between Gen Z and Millennials) showed 64.2% of Gen Z and 39.1% of Millenials indicated they get shopping inspiration from Instagram³. Moreover, these consumers tend to move away from shopping directly on brands’ websites and instead source their goods from marketplaces. Given these behaviors, branding and digital content has become increasingly important as a way to differentiate brands in a crowded online space.

To better compete, brands need to go beyond traditional marketing strategies and start looking at all aspects of the customer experience. Creating more personalized experiences will be paramount to ensure customer retention as acquisition costs rise with digital advertising. Brands also have an opportunity to differentiate themselves by providing fast, free, and sustainable shipping as the unboxing video phenomenon becomes increasingly popular with consumers. With the rise of ethics, sustainability, and equality, brands will need to ensure they are taking a stand with ethical practices throughout the entire supply chain. For context, 41% of Gen Z consumers are willing to pay more for sustainable fashion and 73.9% of Millenials believe it’s very or fairly important that brands show that they are pro-diversity and pro-equality. Consumers are making purchasing decisions based off these practices. Transparency about the supply chain and business practices is no longer a nice to have, it is an imperative for attracting customers.

Chingona Ventures’ Take on E-Commerce

Although the e-commerce space is booming, we believe these business models are challenging and require a certain level of uniqueness, scrappiness, and “Chingona Factor” to succeed.

E-commerce businesses need a higher purpose and conviction to drive them forward beyond profit. For example, from our portfolio, Dame is creating a movement around female sexual health and empowerment, Zero Grocery is changing the way we shop for groceries keeping the environment front and center, and Tiny Organics is disrupting a product category that has long been neglected. All of these founders are taking their personal experiences and pouring them into their businesses to create something truly compelling and disruptive.

Why We Invested in SHOPFLIX

SHOPFLIX is our newest addition of industry disruptors founded by Matt Matros, Lindsey Kilbride, and Anthony Cassara. SHOPFLIX is flipping the shopping experience on its head by creating a platform where “products audition for you.” Self-proclaimed as the “modern day QVC”, SHOPFLIX is a broadcast network that live streams product demonstration through a web and app platform through which clients can buy products with a single click. In a space where shopping experiences are mostly driven by photographs, SHOPFLIX is hopping on the Tik Tok and Reels trend by shifting to providing live, video content to sell their products. We believe SHOPFLIX will bring a unique perspective in three main areas:

• Personalized Shopping Experience: At the center of the business model is a laser focus on providing a customized shopping experience and delivering quality content with an easy to shop process. Leveraging influencers and on-air talent, Shopflix taps into existing online communities.
• Adding Value for Brands: SHOPFLIX understands the competitive nature of the e-commerce market. By working with SHOPFLIX, brands minimize CAC and tech costs, enabling them to generate more profit as compared to selling on other channels.
• Data-Driven: SHOPFLIX will leverage big data to determine the most popular brands, create better shopping experiences, and identify the brands willing to pay to acquire shoppers.
• Dream Team: The founders are exceptionally positioned to bring this idea to market. Matt has a track record of building brands that people love and exiting successfully while Anthony brings the know-how behind media production.