May 27, 2022

By changing the purchasing behavior of consumers, brands can no longer sell through only one channel.

Lucky believes that for e-commerce and traditional retailers who are looking for new ways to connect with consumers, their approach allows them to work together to achieve not only this goal, but also provides a better shopping experience for consumers.

Founded 1 year ago, the company was founded by Sneh Parmar, who has experience in consumer purchasing behavior, and Nafis Azad, who has experience in UX software and product development.

Parmar bought a certain brand of charcoal toothpaste online and waited a week for the package. Telling his friends about it, they told him that he could actually find it at Target.

“Then the light went off – why am I shopping online and paying for shipping when I can walk two blocks to Target?” He added. “Nafis and I began to understand the relationship between retailers and brands that still compete with each other.”

They wanted to build something on top of a retailer’s infrastructure to have full inventory transparency in the store, essentially adapting the concept of a “big box” for everyone, “shopper everywhere and a hybrid shopping experience.” “An offer,” Parmar said.

Now it is a team of six people. Lucky’s first product is a plug-and-play API, also available on the Shopify App Store, that integrates with major retailers in minutes – it’s already available on Nordstrom and Sephora. get an idea of ​​stocks on the store shelves and offer options for local execution. For example, when someone orders an item online, Lucky will see if it’s available from a local retailer and give the customer the option to order delivery or in-store pickup.

As mentioned, Lucky uses data to bridge the gap between brands and retailers by providing data-driven insights into real-time inventory distribution, discovery, and how brands do business in the store.

The company already has partnerships with 10 brands, including men’s cosmetics company Strix, where Lucky is integrated into more than 10 of its SKUs.

After Parmar and Azad launched beta testing in the fourth quarter of last year, they saw 10% consumer engagement using Lucky. They wanted to expand through national distribution, and after partnering with Nordstrom and Sephora, they now have access to thousands of brands to become Lucky customers, but capital was needed to reach that scale.

Lucky recently entered a seed round led by Uncommon Ventures, featuring Plug and Play Ventures and a group of angels such as Alloy’s Sara Do, Pixley’s Kyle Wong, Cremo’s Kyle Schroeder and NBA player Wesley Matthews.

Azad said the new funding will allow Lucky to build its own design, product and sales team. The company plans to increase its workforce to 10 over the next two quarters and add about seven new retailers by the end of the year. It also plans some new features, including improved store search and inventory tools, and enhanced order fulfillment capabilities.

Meanwhile, Unusual Ventures director Rachel Starr, after working at Nordstrom in business, realized what Lucky wanted to do. She notes that retail traffic has been declining for about five years now, and the ability to bring people into the store, whether they ordered online or moved, creates a meaningful brand feeling.

“If you think back eight years ago, when direct-to-consumer brands really started, it was one-on-one relationships with consumers, but scaling became an issue when so many stores were open,” Star said. “Stores like Nordstrom and Sephora already act as collection points, so when brands partner with retailers to achieve network density, it drives traffic to those retailers. Also, when returning something, people often buy something new. It’s a really good combination that meets a need that can be met on both sides.”

Azad mentioned Ulta products at Target as a way to achieve density, and when I looked at the men’s skincare brand Lumine, which was exclusive to DTC, launched at Target and Walmart last month, I asked CEO Kevin O’Connell. Why did Lumin feel this way? Physical presence in stores was also appropriate.

He explained that it was “very logical” for the company’s growth strategy to have products in a physical store, although he added that the company is not slowing down its online business. Lumin conducted a survey of shoppers and found that it is convenient for them to buy a product when they are already shopping.

O’Connell added, “And of course, partnering with big names like Target and Walmart gives us a valuable opportunity to grow our brand and expand our reach with new customers who are active shoppers. . presence.”

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