Kendall Jenner, curation and machine learning: Keeping up with Revolve Group

Revolve Group, the company behind leading e-commerce platforms Revolve and FWRD, has carved out a niche in the fashion industry by combining innovative brand partnerships with cutting-edge technology.

FWRD offers a highly curated collection of iconic and emerging luxury brands, while Revolve similarly offers a curated assortment of premium apparel, accessories and beauty products at a lower price point. It recently opened its first-ever store, entering into the omnichannel realm.

At a time of unprecedented challenges and opportunities, Revolve Group’s data-driven strategies, influencer collaborations, and commitment to customer experience help it stand out in a crowded market.

The appointment of Kendall Jenner as FWRD’s creative director, exclusive capsule collections and advanced search features, exemplify how Revolve Group continues to adapt and thrive. 

Kai Li is Revole Group’s SVP, and in this discussion, he shed light on the essential components of Revolve’s success, offering a blueprint for other retailers navigating the complexities of today’s retail landscape.

Inside Retail: How Does Revolve work with brands?

Kai Li: If we go back in time, a decade ago, the majority of how we [would] identify brands [was by sending] buyers into the market. Today, a decade later, we’re being recognised in the US as a launching pad for emerging brands. 

Most of Revolve’s new brand discoveries are from people knocking on our door.

Influencer or celebrity recommendations allow us to have a closer look at the brand and celebrity brands have a higher chance of success.

Revolve’s success today can be attributed to two major components – the fashion component and the other is the data component. 

IR: How Does Revolve use data in working with brands?

KL: Our decisions on how much to buy from a brand and how long to stock it are driven by data. We’re very data-driven.

We know if a brand and product will perform well within 48 hours. When we put it online, we analyse page visits, conversion rates, and page time.

Many data points tell us if a product is good. Influencer and celebrity referrals help a brand get in the door, but ultimately, it must be proven and backed by data.

There are many good brands with great products, but most fail to understand the importance of the service component. 

A good product is only 50 per cent of the job; the other 50 per cent is achieved through good customer service and other elements. At Revolve, we excel at both, which is why we thrive.

IR: How does Revolve provide a premium customer experience across the FWRD and Revolve sites?

KL: It’s all about the curation. The selection for both sites is different and we do a lot of ready-to-wear. The FWRD creative director is Kendall Jenner.

Differentiating ourselves in the luxury market without a physical store is challenging, but our angle is our unique selection perspective.

IR: Tell us more about the thinking behind appointing Kendall Jenner as FWRD’s creative director in 2021?

KL: Her appointment aligns with her career goals. Is it going to be long-lasting? Five or 10 years – I can’t say, but she has stayed on for more than two years. 

The benefit of this appointment comes from multiple areas — customer awareness and it also gave us reputation.

When we talk to traditional European brands, her association shows off our marketing muscle, helping us gain trust and recognition. This can secure more exclusive names willing to participate in Revolve’s marketing activities.

Those are the benefits that come from multiple angles.

IR: Do the sites have any exclusive collections or products to enhance this curation and experience?

KL: We do have a lot of exclusive capsules. I think the experience that we’re really trying to create from an online perspective is unique selections that you normally don’t see – which is backed by the uptake of the European customer.

It’s actually interesting that when I look up the European FWRD market data. All of the products come from Europe and I would assume we have no market there. But we actually have pretty decent sales in Europe. 

When I look into it, the unique selections and the products we pick they’re probably not available locally.

Product discovery at Revolve is an element we are focused on, and the product recommendations on the page of one item complement that. It makes it easier for the customer to shop and increases the conversion.

IR: How does technology accelerate this process?

KL: Our machine learning. I have a tech background so it’s hard for me to say AI.

Machine learning helps us to best understand customer searches in natural language when they are searching for a specific item on the site.

We combine this with additional search features, such as icons for different lengths and types of dresses, to narrow down searches. We’re probably the only ones doing this, offering tools that help customers find what they’re looking for. 

The problem with machine learning is that it works mostly, but just that 5 per cent that does not work, really frustrates customers. What we want to deliver is a consistent experience helping them find the exact product. We found the best approach is using the traditional approach layered on top of the machine learning.

IR: Do you have any data or insights on brands that resonated with the Revolve customer?

KL: Helsa, former Victoria’s Secret Angel Elsa Hosk’s fashion brand, launched in 2022 in partnership with the Revolve Group on FWRD and the collections have had extraordinary success on the Revolve site with each drop.

IR: Have customer reviews changed how you run things at Revolve?

KL: Customer feedback is invaluable. I had a customer from France just last week, I directly engaged with her because I saw she was just frustrated. She highlighted issues with our returns process. We apologised and addressed the flaws she identified, improving our service. 

Reading customer feedback can help us improve at a surface level and beyond.

IR: How do foreign exchange rates impact pricing?

KL: Foreign exchange rates significantly affect prices and sales. In general, every 1 per cent change in exchange rates will increase or reduce sales by 2.5 per cent. Retention is the secret sauce for long-lasting compound growth. Higher retention rates significantly boost revenue and growth. 

A seller with a 40 per cent retention rate has 2.3 times the compound annual growth rate of a seller with a 20 per cent retention rate. There are many ways to improve retention; in addition to the usual loyalty program, price, service, selection, and better customer engagement can also help with retention.

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