Hello, and happy Wednesday!
This is issue no. 11 of the Nebulab newsletter, your favorite bi-weekly reflection about retail, DTC, and eCommerce technology.
Here's what we wrote a few weeks ago in our issue about the status of Web3 adoption in retail: "[...] to become widespread, the technology itself needs to step away from the spotlight, develop the interconnectedness typical of all successful infrastructures, and demonstrate the ability to generate incremental value for its users and the companies that invest in it."
You know what technology today ticks all three boxes? AI. Well, it's still very much in the spotlight, but not without reason: unlike with Web3, real-world, revenue-driving AI x retail applications are numerous and within the realm of technical/financial possibility for most brands. Product discovery, personalized marketing, customer service, product co-creation... the opportunities are endless, as are the tools to capitalize on them.
Our suggestion? Jump on the opportunity while it's hot, but do it in a way that resonates with your brand's values and will have a long-lasting impact. Ask yourself two questions:
What are things you're already doing that AI just made easier?
What are the things you've wanted to do that AI just made possible?
Finally, let's all be mindful that we're all climbing the Peak of Inflated Expectations right now. The tumble down the Trough of Disillusionment will be long and hard as we learn that AI is not a magic wand: no amount of ChatGPT prompts can turn a terrible idea into the next big thing, especially when AI tech is just a few keystrokes away for all of us.
Retailers are using ChatGPT to help people pick what to buy. While the article is interesting in itself, there’s a deeper consideration to be made here. Currently, OpenAI is content with selling technology, and everyone’s jumping on the bandwagon. Is there a universe where OpenAI positions itself as more of a consumer-facing company? ChatGPT plugins certainly look like a step in that direction, and they might turn ChatGPT into the everything marketplace.
How fashion brands are using generative AI. While ChatGPT is arguably the most user-friendly AI-human interface currently out there, there’s so much more happening in the space right now. It’s fascinating to see how many applications for AI can be found in a single retail category.
How AI is infiltrating influencer marketing. There’s an incredibly thin line between using AI to answer questions about stuff and using AI to... well, to generate the stuff we then ask questions about. Great influencers take a lot of pride in their authenticity—at the same time, brands are looking for more: more content, more velocity, more diversity. How will AI tip the scale?
AI Doomsday For People Who Don’t (Yet) Wear Fedoras. Here’s the PSA you were all waiting for. If you’re curious whether the robots-will-take-over-the-world-a-la-Blackmirror proclaims are valid or exaggerated, this is a great (and well-balanced) primer about the current concerns with LLMs and modern AI.
New article
Scaling DTC Brands Through Product-Led Growth
Product-led growth (PLG) is a methodology adopted by startups such as Dropbox, Slack, and Zoom. PLG puts the customer experience at the center of the customer journey and takes a product-first approach to scaling.
While traditionally designed for SaaS companies, eCommerce/DTC brands can embrace PLG to lower their customer acquisition cost, increase customer lifetime value, and gain a deeper understanding of their customer base.
In our latest article, we explore the fundamentals and benefits of PLG and how you can take your first steps toward establishing a PLG strategy for your brand.
Brand interview
Marketplaces, Brand Identity and Sustainability
Watch our latest interview with Millie Pearson—COO at The Edit—to find out:
What distinguishes a good marketplace from a "meh" marketplace.
How SMBs can pursue sustainability in a tough economic environment.
Why more and more brands are taking their logistics in-house.
P.S. Do you know an authentic pair of sneakers when you smell one?
That's it for today!
If you have any questions, comments, or sneakers you want us to smell, send them right to [email protected].
See you in two weeks! 👋
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