Exploring the Next Wave of Retail Innovation with MAC Cosmetics, Revolve, and Afterpay at NYFW — Afterpay

Transformation and innovation are not new themes within the retail sector, but the how, when, where, and why of consumer shopping behavior change constantly. The COVID-19 pandemic accelerated some trends and surfaced others, causing many merchants to rethink strategies ranging from omnichannel to payments. 

Revolve, a fashion retailer for Millennial and Gen Z shoppers, started as an online retailer but has experienced rapid growth by being present wherever customers are. Gerona noted that Revolve’s offline and social media presence is just as important as connecting with customers via its online store, allowing the brand to engage with shoppers in multiple ways, multiple times a day. Even more important is how Revolve views customers: as friends. This has enabled the brand to foster relationships with a growing network of influencers who support Revolve. In these efforts, Gerona said, it’s critical that brands empower audiences but not direct them–it’s all about individuality and authenticity. Ambassadors and influencers have been especially important throughout the pandemic, as brands around the world were forced to find meaningful ways to connect with consumers without the benefit of in-person stores or experiential activations. 

MAC Cosmetics takes a similar viewpoint, especially in regard to the brand’s 13,000-strong community of MAC makeup artists. These incredible artists are encouraged to be ambassadors for the brand through authenticity, self-expression, and creativity–and they bring customers along with them. This kind of human-to-human connection is vital in a world that is increasingly online and digital. 

MAC has proven that technology and humanity don’t have to be at odds–the brand has invested heavily in tech that enables human connection and brings the physical experience of shopping to whichever device a customer has in-hand. This involves virtual makeup try-ons and shade matching, providing tech to makeup artists so they can provide individual-level service to customers, and offering the convenience (and safety) of buy online, pick up in store via Afterpay, or delivery via Postmates and Uber. 

Generation Z is nothing if not adaptable, and adapt they did throughout the pandemic. Molnar was candidly surprised at how eagerly this generation has embraced the Afterpay brand and integrated it into their lives. The growing distrust of traditional credit cards among this generation and among Millennials has made Afterpay a wallet staple for today’s consumers. But it’s Afterpay’s ecosystem of engaged merchants, influencers, and users that has made it a magnet to next-gen shoppers. Discovery, Molnar noted, is central to the Afterpay experience, and why the Shop Directory drives so much traffic for merchants. It’s also why Afterpay has expanded to brick-and-mortar stores in recent years; the magic of in-person shopping will always be a draw to many consumers. 

Omnichannel has become central to so many retailers’ growth strategies as the ability to seamlessly blend in-person, out-of-home, mobile, and online brand experiences is critical for merchants. Aquilina noted that beyond providing that seamless and engaging experience, MAC works to understand the culture of local markets and offer solutions based on employee and customer sensitivities. As a brand with significant presence in both the East and West, MAC approaches the modernization of its retail experiences with both local and global nuances in mind–such as offering WeChat programs in Shanghai to help customers better navigate stores. 

Ultimately, succeeding in retail transformation comes down to values. For Revolve, that’s recognizing that diversity and inclusion are non-negotiable–from who Revolve hires to who leads the brands it carries. Innovation can only get a brand so far–they must put in the work to be reflective of the customers they serve (for example, Gerona noted that 80% of Revolve’s 800 brands are women-owned!).

Afterpay has always been about enabling people to get what they need or want now, without worrying about paying up front or being saddled with fees down the line. Early in the pandemic, Afterpay recognized the financial hit so many consumers experienced due to lost income, and launched a series of promotions to further enable people to get what they need. People responded and engaged enthusiastically, noted Molnar, and have since paid Afterpay back as loyal customers–simply because Afterpay remained true to its values. And that is perhaps the most transformational approach a brand can take today.

To learn more about innovation, trends, and transformation in the retail sector, follow our merchant blog.