In an effort to expand their customer base and capitalize on their recent expansion efforts in the fashion sector, Walmart partnered with startup subscription service Kidbox. Like Stitchfix, Kidbox offers curated, monthly boxes of clothes customers can choose to keep or return. In this case for kids. Kidbox’s strategic partnership with Walmart allows the major retailer to reach a broader audience – particularly fashion savvy Millennials – and create greater brand awareness for both companies.
The Kidbox Strategic Partnership Offers Walmart A Built-In Subscription Option
For Kidbox, accessing Walmart’s huge online customer base (Walmart clocked more than 320 million online visits globally in March 2019), is a boon for a startup business and offers a reach Kidbox might never attain otherwise. And Walmart benefits as well. The task of building out a subscription box business, even for a major corporation, can divert attention from other strategic goals. By pairing with Kidbox, Walmart gets a readymade subscription-based fashion business without any onerous build-out.
As with other curated fashion businesses, Kidbox’s consumers sign-up, answer a survey about their children’s clothing preferences and needs and then receive monthly boxes curated by in-house stylists. Kidbox’s partnership with Walmart allows Kidbox to offer a 50% discount on the four to five items in each box, pricing out at $48 per box. There is no styling fee.
Kidbox offers 120 premium kids’ brands including their own private labels, and Walmart sees this an opportunity to increase their kids’ fashion profile, which they have expanded by 100 brands in the last year. The boxes will not initially include Walmart-specific brands.
“Over the last year, we have significantly expanded our portfolio of kids’ fashion brands as part of our broader effort to establish Walmart.com as a destination for fashion,” said Denise Incandela, Head of Fashion for Walmart ecommerce brands. “Our partnership with Kidbox enables us to round out our offering with additional national and premium kids’ brands.”
Innovative Strategies To Attract New Customers Can Include Subscriptions
In the last several years, Walmart acquired unique brands like Bonobos and Modcloth, and purchased Jet.com, in an effort to reach wealthier, Millennial shoppers on the coasts. In 2018, the retailer introduced the “premium brands” tab on their ecommerce site, featuring brands from Walmart’s new partnership with Lord & Taylor. Kidbox is another innovation in this direction. Many Millennials are parents now, brand and quality conscious and very comfortable with the subscription market. Walmart’s partnership with Kidbox aligns with Walmart’s strategic marketing efforts to introduce new customers to their brand.