Consumer is becoming more value-conscious: StockX CEO
Scott Cutler, CEO of online marketplace StockX, joined Yahoo Finance Live to discuss demand trends this holiday shopping season amid a value-focused consumer environment. According to the National Retail Federation's forecast, holiday spending is expected to reach record highs between $957.3 billion and $966.6 billion.
Cutler says that while demand on StockX remains steady, they are noticing a pattern of more value-conscious behavior. As consumers become savvier shoppers, resale prices on the platform have started to decline, allowing shoppers to find deals. Although StockX does not set prices directly or offer promotions, Cutler notes that their "12 Days of Giftmas" event aims to help guide consumers towards popular and relevant brands and gifts this season.
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Video Transcript
SEANA SMITH: Well, this year's holiday spending is expected to break records, the National Retail Federation expecting to see Americans spend around $960 billion this year. Some of that will be spent on third party and resale sites to get some of this season's most coveted and exclusive items. That's where StockX comes in, a marketplace to buy and sell sneakers apparel and much more.
Here to break it all down and what have we seen so far this year and what we can expect looking ahead to next year, we want to bring in Scott Cutler. He's the CEO of StockX. Scott, it's great to have you here in studio with us. Let's talk about what you're seeing this holiday season. What has demand been like?
SCOTT CUTLER: You know, 2023 has been an interesting year for the consumer. On the one hand, super challenged, and I think that was maybe my perspective coming into the holiday. But what we've seen is actually a real surge of interest and volumes on our platform. As you said, we reflect current culture, we reflect a young demographic, and we've seen a couple of really big trends, which has been, one, a value conscious consumer.
And so on our site, which has always been associated with premium product, we've seen 35% of our transactions coming from products below retail. And then we're really seeing a surge of new brands that are finding a resurgence and growth in this market, brands like ASICS and New Balance, Fear of God have really seen growth in this market. So maybe that's a shift in consumer preferences and current culture, but it's been exciting to see it in real-time.
BRAD SMITH: You mentioning a more value conscious consumer kind of mirrors what we just heard from Oliver Chen over at TD Cowen in a more value-centric consumer that we're expecting going into 2024. How does that shift some of the most popular brands that you're expecting to see kind of move through listings and buyers and sellers continuing to flow in for certain names on the platform?
SCOTT CUTLER: Well, our perspective is always because the platform represents current market prices, the reflection of supply and demand, and I think that supply and demand is also a reflection of what's happening broadly out there in the economy. And so what we've seen is certainly some brands and resale being that second sale.
We've seen some brands see resale prices come down, but it's actually worked well for this time where the consumers can shop value. And so I think the interplay between that, as well as how much brands have been releasing out into the market provides an opportunity for, again, our demographic being mostly a millennial, 65% millennial demographic, finding that opportunity to not only find heat, current culture, but also to be able to find value.
SEANA SMITH: And Scott, one of the themes that we've been talking about with so many retailers, this holiday season and really over the last several months, has been promotional activity. What's needed in order to get the customers that you have to keep spending on your platform, keep seeing more of a return there. What have you seeing in terms of that promotional activity, because I believe you also have something that you're just rolling out here for Christmas? 12 days of Giftmas
SCOTT CUTLER: Yes, yes. So as a platform, we don't set prices, we don't own inventory. And so as our platform, we don't have promotional activity. Most of our activity is actually just trying to drive interest of the brands and the trends that are hot to give consumers a taste of what is current and what might be that great gift of the season.
And so I think when we look at what's happening in apparel as an example with the rise of new brands, the shift of preferences in sneakers, and then also seeing a couple of breakout performers, for example, in electronics to see the new Sony Console be a hot seller is exciting for us, you know, be able to see in the market.
