URBN clothing rental service Nuuly to add fulfillment center
Nuuly saw 150% growth over the holidays.
Nuuly saw 150% growth over the holidays.
URBN is opening a new fulfillment center in Missouri for its apparel rental brand.
The news: The parent of Urban Outfitters will open a new fulfillment center in Raymore, Missouri. It will provide logistics for clothing rental brand Nuuly, which is a subscription service offering more than 15,000 styles from more than 300 brands.
What are the details?
The 604,000-square-foot facility is set to become the second U.S. fulfillment center for the brand, and also the second for URBN in the Kansas City region.
It represents a $60 million investment that will create 750 jobs in five years for the region.
The new facility will be located at Raymore Commerce Center, which was developed by VanTrust Real Estate.
Key quote: "Nuuly has experienced significant growth since our launch in 2019. We are excited to open our second U.S. fulfillment center to support our next phase of growth, and proud to work with the State of Missouri and the City of Raymore to bring new jobs to the Kansas City region," said Dave Hayne, Chief Technology Officer of URBN and President of Nuuly, in a statement.
Nuuly momentum: It comes after URBN released data showing Nuuly segment sales during the two holiday months increased 150% due to a 153% increase in subscribers as compared to the 2021 holiday season.
Rental growth:URBN has a portfolio that includes apparel brands such as Urban Outfitters, Anthropologie and Free People. Each of those are centered sales of new items. With Nuuly, it is layering in rental, as well as resale with the recently launched Nuuly Thrift. This opens up an avenue for clothes to be worn by one user, then recirculated. It also provides a subscription offering that creates recurring touchpoints (and revenue) with consumers. It’s a different approach for URBN, reflecting that the company is offering not only responding to demand for variation in what people want to buy, but how they want to buy it.
Owning the supply chain: Rental is a unique model that requires not only packing and shipping orders to go out, but also receiving them and preparing clothes to be worn again. Fulfillment is a particularly important part of the equation, and finding efficiency through processes and software is the avenue through which to build a profitable business. Given this, there are advantages to owning a fulfillment center as opposed to working with a third-party logistics provider.
Missouri as ecommerce hub: The new facility underscores that Missouri wants to become a prime location for ecommerce and distribution. Given its positioning in the center of the country, the state positions companies within 600 miles of 135+ million potential customers. A public-private economic development organization called the Missouri Partnership helps to create a friendly environment for businesses.
Amazon partnered with Hexa to provide access to a platform that creates lifelike digital images.
Amazon sellers will be able to offer a variety of 3D visualizations on product pages through a new set of immersive tools that are debuting on Tuesday.
Through an expanded partnership with Hexa, Amazon is providing access to a workflow that allows sellers to create 3D assets and display the following:
Selllers don't need prior experience with 3D or virtual reality to use the system, according to Hexa. Amazon selling partners can upload their Amazon Standard Identification Number (ASIN) into Hexa’s content management system. Then, the system will automatically convert an image into a 3D model with AR compatibility. Amazon can then animate the images with 360-degree viewing and augmented reality, which renders digital imagery over a physical space.
Hexa’s platform uses AI to create digital twins of physical objects, including consumer goods. Over the last 24 months, Hexa worked alongside the spatial computing team at Amazon Web Services (AWS) and the imaging team at Amazon.com to build the infrastructure that provides 3D assets for the thousands of sellers that work with Amazon.
“Working with Amazon has opened up a whole new distribution channel for our partners,” said Gavin Goodvach, Hexa’s Vice President of Partnerships.
Hexa’s platform is designed to create lifelike renderings that can explored in 3D, or overlaid into photos of the physical world. It allows assets from any category to be created, ranging from furniture to jewelry to apparel.
A Hexa 3D rendering (Courtesy photo)
The result is a system that allows sellers to provide a new level of personalization, said Hexa CEO Yehiel Atias. Consumers will have new opportunity see a product in a space, or what it looks like on their person.
Additionally, merchants can leverage these tools to optimize the entire funnel of a purchase. Advanced imagery allows more people to view and engage with a product during the initial shopping experience. Following the purchase, consumers who have gotten a better look at a product from all angles will be more likely to have confidence that the product matches their needs. In turn, this can reduce return rates.
While Amazon has previously introduced virtual try-on and augmented reality tools, this partnership aims to expand these capabilities beyond the name brands that often have 1P relationships with Amazon. Third-party sellers are an increasingly formidable segment of Amazon’s business, as they account for 60% of sales on the marketplace. Now, these sellers are being equipped with tools that enhance the shopping experience for everyone.
A video displaying the new capabilities is below. Amazon sellers can learn more about the platform here.
Hexa & Amazon - 3D Production Powerhousewww.youtube.com