The Fresh Market's live commerce bet
Specialty grocer The Fresh Market is making a major bet on live commerce with the launch of its retail media network.
Why it matters: Retail media networks, whereby brands can advertise on an assembly of digital channels through a retailer, have ballooned into a $45 billion market.
What’s happening: The Fresh Market's network allows brands to run sponsored video ads across its live video streams.
- The company works with vendors to create tailored livestream content featuring their products on The Fresh Market’s live-streamed broadcasts.
- This is a departure from most retail media networks because they rely on static display and search, the company says.
- Consumers can purchase featured products directly from The Fresh Market’s website.
By the numbers: RMNs are projected to reach $100 billion in terms of ad spending by 2026, according to McKinsey & Co.
- By 2025, McKinsey says social commerce could grow to more than $2 trillion.
- Drawing from its experience, The Fresh Market says its shoppable videos had conversion rates that were over 300% more than what you would get from traditional digital advertising.
- The Fresh Market says its first four livestreams drew 2 million views.
How it works: The Fresh Market has been partnered with livestreaming commerce platform Firework since 2021.
- The partnership allows the lift, monetary-wise, to be as light or heavy as The Fresh Market wants it to be, Miller says, but, he added, the company has posted new positions to support this team.
Of note: Firework was valued at around $750 million last year following its $150 million Series B round led by Softbank Vision Fund 2 in May.
What they’re saying: The live shopping retail media network has brought several revenue streams to bear for the company, CMO Kevin Miller tells Axios.
- “We're selling more products more profitably,” through its streams, he says.
- “We're also providing a terrific platform for our vendor community to be able to spend some real good quality time with our customers,” he says, because the level of engagement is extremely high.