Retail Insight Network

Daily Newsletter

08 August 2023

Daily Newsletter

Signal: THG leads the way in influencer marketer recruitment

Global e-commerce technology group, THG, invests heavily in influencer marketer recruitment in 2023 following a FY2022 loss of a £0.5bn.

The Hut Group (THG), the Manchester-based global e-commerce technology group, led the way in influencer marketer hirings over the May to July period, according to GlobalData’s job analytics.

Nine new listings for THG were identified across the period, including roles for senior influencer and ambassador manager, group influencer marketing lead, influencer managers and executives and influencer content manager.

Other top performers in influencer marketer recruitment include Rihanna’s Lavender Lingerie (doing business as Savage X Fenty) and luxury brands Hermès International and Kering.

THG, which owns brands such as MyProtein, LookFantastic and GlossyBox, has a track record of out-performing competitors in the direct-to-consumer (D2C) market, leveraging the followings of influencers such as Molly-Mae Hague, Morgan Rose Moroney and Razi Khan, to increase brand awareness and sales via discount codes.

Amid increasing sales and revenues, THG has nevertheless struggled with widening losses in recent times, as home shopping wanes post-Covid and prices of vital commodities (such as whey for its sports nutrition business) rise. The group reported 2.7% growth in revenues to £2.2bn for the financial year ending December 31, 2022, and a total sales growth of 38.8% over two years, while losses widened to £550m.

Influencer marketing boosts ROI by significant margins

Unlike traditional “parasocial” marketing methods like print and TV advertisements, influencer marketing draws upon the “trans-parasocial relations” that hold between prominent social media figures and their followers.

The efficacy of influencer marketing has been explained through social learning theory, social comparison theory, source credibility and parasocial interaction.

Indeed, according to a study from Convince and Convert, influencer marketing received 11x the return on investment (ROI) than banner ads did.

Our signals coverage is powered by GlobalData’s Disruptor data, which tracks all major deals, patents, company filings, hiring patterns and social media buzz across our sectors. These signals help us to uncover key innovation areas in the sector and the themes that drive them. They tell us about the topics on the minds of business leaders and investors, and indicate where leading companies are focusing their investment, deal-making and R&D efforts.

APAC duty-free market expected to grow fastest, fueled by rising income levels and international travelers

Per latest GlobalData estimates, the global duty-free market retailing market was valued at $49 billion in 2022, its highest level ever as it bounced back from the pandemic impact, and is expected to grow at a CAGR of more than 28% during the period 2020-2026, driven by government initiatives, rising passenger numbers, major global events (for instance global sporting tournaments) and the renewed popularity of cruise trips. Infrastructure investments will also play an important role, particularly airport expansion and space refurbishment, and investments in arrivals duty-free formats. That said, growth will be held in check in the years ahead by the permanent erosion of disposable income from the heightened cost of living impacting demand for air travel. The duty-free market in the APAC region showed strong growth in 2022, as traveler numbers surged in response to the lifting of travel restrictions. To cater for rising demand in the region, many airports in the APAC area are expanding and modernizing, giving duty-free stores greater space that will allow them to attract more customers. The future of APAC duty-free retail is also being shaped by the adoption of technology. The rise in online shopping, mobile payments, and digital marketing are giving businesses new ways to connect with customers and improve the shopping experience.