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Revolve: From e-commerce to physical retail, a bet to revive growth

By Diane Vanderschelden

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Retail

Revolve 'Best Trip' - AI-generated billboard campaign. Credits: Revolve

Faced with changing purchasing behaviors and intensifying competition, Revolve, a major player in fashion e-commerce, has decided to adapt its strategy by investing in physical retail. This decision is part of a desire to diversify its distribution channels and consolidate its position on the market.

A proven economic model

Long seen as a pure-play e-commerce player, Revolve has built its reputation on a model based on influencer marketing and personalised customer experience. By organising exclusive events and forming strategic partnerships with the biggest influencers, the brand has managed to create an engaged community and generate real excitement around the brand.

The need to evolve

However, the economic context and consumer expectations have evolved. The pandemic has certainly boosted e-commerce, but the trend seems to be reversing. Consumers are once again looking for a more tangible shopping experience and want to be able to try products before buying them. Faced with this observation, Revolve has decided to complement its online offering with a network of physical stores.

A strategic deployment

The choice of Aspen, in the US, to open its first store is not insignificant. This high-end ski resort is frequented by a wealthy clientele in line with the brand's values. The encouraging results of this first experience convinced Revolve to accelerate its development in physical retail. The company is now considering opening new stores in key cities, such as the Hamptons or Beverly Hills.

The stakes for investors

While this new strategy seems promising, it also raises questions among its investors. Revolve's valuation has fallen sharply in recent months, reflecting the uncertainties related to the transition to a hybrid model. Analysts are divided on the company's prospects, with some seeing this diversification as a growth opportunity, while others fear a dilution of efforts and pressure on margins.

This article originally appeared on FashionUnited.FR. Translation via AI and edit by Rachel Douglass.

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Store opening