Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa Bay news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Charlotte news in your inbox

Catch up on the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Photo: Scott Eisen/Getty Images

E-commerce startups, especially those in the fashion and lifestyle spaces, are testing novel methods to keep young shoppers coming back in a saturated market.

Why it matters: Millennial spending habits on retail are impulsive as they spend more freely than other generations. New startups are popping up on their Instagram feeds to advertise free trials or referral codes to get them in the door — but retaining those free-flowing dollars can be more difficult.

By the numbers:

  • An average company has a 32% chance of retaining a customer who made one purchase for a second purchase, but once a customer makes two purchases, there's a 53% chance they will make a third, per a report from RJ Metrics.
  • 90% of female social media users interact with beauty brands, and 83% of interactions are related to clothing, according to Adweek.
  • The two top factors when buying clothing and accessories re low price and high product quality, according to a 2017 Statista survey.

The winners:

  • Birchbox, a monthly subscription service for beauty products, went through several restructuring methods this past year in a successful attempt to show profitability, per Retail Dive.
  • Letgo, the secondhand goods marketplace valued at over $1 billion, announced the launch of image recognition technologies to give users video listings and automatic pricing suggestions, TechCrunch reports.
  • Glossier's CEO Emily Weiss raised $86 million in venture capital for the beauty brand. The company's clean product branding has attracted a mass of young cultish fans, Recode reports.
  • ClassPass, a subscription service for fitness classes, has raised $85 million in venture capital to fund the New York City-based startup’s plans to open in 10 more U.S. cities by end of year as well as enter new markets overseas, primarily in Southeast Asia.

The losers:

  • Mobile shopping app Grabble folded in July after it deemed its progress in "creating a technology platform for native mobile commerce" as a failure to deliver, trade publication Drapers reports.
  • Blue Apron stock has taken a hit since it went public last year. Blue Apron CEO Brad Dickerson told Axios' Dan Primack that the company pretended to be a technology business when it wasn't. "It’s something we’ve seen lots of other consumer companies do," Primack reported on his Pro Rata podcast.
  • MoviePass ran out of cash just last week, freezing subscriber usage at the theaters. "Surge fees" consistently keep going up and the company’s owner, Helios and Matheson Analytics, filed for a $5 million loan to keep the company afloat, per Business Insider.

The bottom line: As Kirsten Green, the founder of Forerunner Ventures, wrote for Axios Expert Voices, "These trends most often direct transactions straight to brands and specialty retailers, and will only continue in popularity."

Go deeper

Updated 6 hours ago - World

Mexican President López Obrador tests positive for coronavirus

Mexico's President Andrés Manuel López Obrador during a press conference at National Palace in Mexico City, Mexico, on Wednesday. Photo: Ismael Rosas/Eyepix Group/Barcroft Media via Getty Images

Mexican President Andrés Manuel López Obrador announced Sunday evening that he's tested positive for COVID-19.

Driving the news: López Obrador tweeted that he has mild symptoms and is receiving medical treatment. "As always, I am optimistic," he added. "We will all move forward."

6 hours ago - Politics & Policy

Sarah Huckabee Sanders to run for governor of Arkansas

Sarah Huckabee Sanders at FOX News' studios in New York City in 2019. Photo: Steven Ferdman/Getty Images

Former White House press secretary Sarah Huckabee Sanders will announce Monday that she's running for governor of Arkansas.

The big picture: Sanders was touted as a contender after it was announced she was leaving the Trump administration in June 2019. Then-President Trump tweeted he hoped she would run for governor, adding "she would be fantastic." Sanders is "seen as leader in the polls" in the Republican state, notes the Washington Post's Josh Dawsey, who first reported the news.

Coronavirus has inflamed global inequality

Illustration: Aïda Amer/Axios

History will likely remember the pandemic as the "first time since records began that inequality rose in virtually every country on earth at the same time." That's the verdict from Oxfam's inequality report covering the year 2020 — a terrible year that hit the poorest, hardest across the planet.

Why it matters: The world's poorest were already in a race against time, facing down an existential risk in the form of global climate change. The coronavirus pandemic could set global poverty reduction back as much as a full decade, according to the World Bank.