CNBC·
Retailers are turning to entertainment to win shoppers’ attention
Summary
- Gap Inc. created a new chief entertainment officer role earlier this year, appointing former Paramount executive Pam Kaufman to lead its entertainment, content, & licensing platform.
- The company has launched major campaigns partnering with bands like Just Your Type & building on ads featuring the girl group Katseye.
- Kaufman stated that brands must reflect their values & provide fans with meaningful ways to experience them as part of a "fashiontainment" strategy blending retail & entertainment.
- Gap CEO Richard Dickson emphasized putting brands at the center of cultural conversation to align with evolving consumer attitudes.
- Experts note that shopping has shifted from a fulfillment task to an entertainment form, with retailers investing in in-store experiences & exclusive online content to drive engagement.
- The trend follows historical precedents like Procter & Gamble's 1930s "soap opera" campaigns, though social media & short-form content have increased audience demand for original material.
- Intellectual property is becoming increasingly valuable for cutting through marketing noise, with distribution expanding across video, audio, short-form, long-form, & live event content.
- Executives with cross-sector expertise in both retail & entertainment, such as Kaufman, Dickson, & Skydance co-CEO Ynon Kreiz, are driving this convergence.
- SonderCo CEO Sean Akaks identified opportunities for nontraditional players to create content amidst consolidation in the legacy entertainment sector.
- Retailers are leveraging experiential retail, with data showing companies like Coach & Ralph Lauren saw nearly 10% year-over-year increases in average basket size.
- Experts warn that while entertainment & experiential strategies help drive traffic, they cannot replace the fundamentals of having great products in stock at transparent prices.
Retailers are increasingly investing in and building out entertainment studios as the race for audience attention speeds up.
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