Why is Netflix opening an eCommerce store?
During the pandemic, online shopping and streaming subscriptions have grown significantly. Additionally, Netflix fans were excited about the partnerships and licensing deals with retailers that offered fun and themed products, including fashion and lifestyle items. For example, the “merchandising bonanza” around the release of season three of Strange things included agreements with “Coca-Cola, Schwinn and Target to bring various branded goods to shelves and online stores”, reported Kelsey Sutton for Advertising week. Walmart, Amazon, H&M, and Sephora have also partnered with Netflix in recent years to create and sell products for Netflix TV shows and movies.
“We’re excited to give fans a new way to connect with their favorite stories and introduce them to the next wave of artists and designers who embrace the power of storytelling in all its forms. ” mentionned Josh Simon, vice president of consumer products at Netflix. The Netflix store also shares the stories and history of its creators of merchandise on the Netflix.shop website. Leveraging narratives around designers to create product enthusiasm is part of Netflix’s approach to marketing, with Simon explain that Netflix.shop is “an exciting new destination combining select products and rich storytelling in a shopping experience unlike any Netflix”.
What will the Netflix e-commerce store sell?
For now, the store sells an assortment of limited edition items ranging from hoodies to jewelry. Having a owned and operated e-commerce platform allows Netflix to create demand for unique, novelty, and special drops that match the big news around its TV shows and movies. However, Netflix will continue to sell merchandise through major retailers and brand partnerships. “The goal of Netflix.shop is to try and create cachet for the company’s originals among superfans, with the secondary benefit of generating additional revenue for the company,” reports Todd Spangler for Variety. Netflix plans collaboration with Louvre for collection of items inspired by French caper series Lupine, which will include housewares and other branded products sold on the Netflix e-commerce site.
How Does Netflix Ecommerce Store Benefit Advertisers?
At this point, Netflix has not released any details on how advertisers might benefit directly from it. And, while expanded partnership opportunities may be a possibility, the additional revenue stream from the Netflix store is also a likely sign that Netflix will continue to go ad-free.
Ultimately, brand placement in Netflix shows may represent a more linear sales opportunity. If Netflix.shop starts selling products displayed on its programming, advertisers could create native shopping experiences that take consumers directly from viewing to purchasing. If Netflix chooses to take this more robust approach with the Netflix store in the future, advertisers may finally be able to reach and create conversions from the generally isolated Netflix user.
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