eCommerce Success Case: Urban Outfitters
Miguel Nicolás
09/07/2024
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We love all eCommerce success cases, but Urban Outfitters is one of the most interesting.
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Due to its very personal nature, its positioning, the way it integrates sustainability into the core of its business, and above all, how it has managed to become a reference for its target audience (university students, Generation Z, and the younger Millennials).Get ready to discover how there are still brands that do things differently.
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The origin of Urban Outfitters and its stores
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We are talking about a very current business model, focused on a quite specific audience, so you might think that this is a recent brand. But that is not the case.Urban Outfitters has a history of more than 50 years. Obviously, it did not start as an eCommerce, for logical reasons, but in the retail sector, as a small physical store, right in front of the University of Pennsylvania campus.Originally, it did not have such a personal name; it was simply called Free People and sold second-hand clothing and furniture. Halfway between entrepreneurship and university practices, a project was born that seems to have no limit five decades later.
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INSIGHT: Urban Outfitters is a paradigmatic example of choosing the right business model, location, and timing. University students do not have much purchasing power, and on US campuses, buying and selling second-hand items was a deeply rooted trend from which money could be made.
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They were, in a way, visionaries in their business conception and product selection. They understood (and still do) each item as something unique, respecting its origin. They also apply this to their stores, which are restored according to the original design and materials of the building, making them far from the typical franchise that looks the same in Budapest, Barcelona, or New York.This eclecticism that we can find in their catalog is present in all their stores and their own philosophy.
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Brand evolution
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Things were going really well, so the temptation to stay in the same niche, selling second-hand clothes, jewelry, vinyl records, and furniture, could be tempting. However, this brand is characterized by a strong capacity for innovation.Something they started doing in the late 80s of the last century was creating different brands. They no longer only sold second-hand products, but in order to keep their essence, they associated these business lines with new brands like Ecote, Bulldog, or Anthropology.
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INSIGHT: Although second-hand products have high demand, having a more limited supply complicates the growth of a business 100% based on them. Therefore, Urban Outfitters showed great vision by addressing other related niches.
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Before combining physical stores with the digital channel, Urban Outfitters realized an important fact: their target audience was changing. People who shopped at university during the 70s were professionals between 30 and 45 years old in the early 90s, with different needs and, interestingly, with higher purchasing power.Because of this, they opened the first Anthropology store, aimed at a new audience with a completely different lifestyle and, therefore, with a more luxurious positioning than "cool" subsistence.
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INSIGHT: When you have such a long history, it is important to understand that your original audience changes due to their own socio-economic conditions, and it is crucial to be able to maintain brand loyalty by giving them what they need at that point in their lives.
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Anthropology was the first branch of the business to open its own eCommerce, which is still active today. Its initial numbers were far above expectations, opening a new channel to be exploited by all brands.
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By the way, before making the leap to eCommerce with Urban Outfitters, the company's founders successfully explored other areas such as events, weddings (including bridal wear and styling), restaurants, cafes, and even a very interesting 100% online clothing rental service in a subscription format (perhaps on another occasion we will do an eCommerce success case on Nuuly, which is the name of this service).
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Urbanoutfitters.com website
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Let's talk about the eCommerce itself. Although it is worth making a comment before starting: Urban Outfitters is an international brand that sells in many countries in Europe and the world, with a version of its online store in Spanish aimed at Spain. However, in order to better see the features, we will always refer to the North American page, which is much more complete.
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Home
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If you look at the Anthropology screenshot, it is easy to identify the design. They are almost identical, changing menus and content. Would it have been worth a new design? Maybe, but if it is well-tested and works, it is not a bad idea to use it as a template.
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At the top, the design is quite canonical: logo, cart, client area, search bar... Just below, the classic menu with its categories:
- New Arrivals
- Women
- Men
- Shoes
- Accessories
- Home
- Lifestyle
- Beauty
- Vintage + ReMade
- Sale
Most are pretty standard, although there are two (Lifestyle and Vintage + ReMade) that we will look at a little later.
Now, let´s notice something important on this homepage: the most notable thing is that everything is an image, there are almost no products as such, and certainly no prices. -
INSIGHT: It may seem a bit risky, but think about it: they sell a lifestyle, they want to reach conversion through inspiration. That is why it is more evocative to put an image with a context in which you can project yourself than an aseptic image with a neutral background.
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Currently, for example, we can see how they have created a specific collection for university rooms, which they link from the home. They function as landing pages from which different products and categories are linked (lighting, textiles, furniture, desk accessories...).
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Categories
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As we mentioned when analyzing the menu, the categories are quite standard for what you would expect in an eCommerce that sells furniture and fashion. However, there are two worth highlighting a bit more because they directly contribute to creating the brand's personality and its market positioning.On one hand, we have the lifestyle category, a large miscellaneous section that includes the most adorable dolls, turntables with their vinyl records, incense holders, popcorn machines, or sex shop items.
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INSIGHT: A brand is much more than the products it sells; it is a complement to its customers' lifestyle, so connecting with their interests is crucial.
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The other category worth mentioning is called Vintage + ReMade. What can we find here? Old garments from different brands, which, in many cases, have been adapted or refurbished.The vintage part of the catalog has the differential advantage of offering exclusive, unique products chosen in a collection created directly by Urban Outfitters' stylists. In a way, it is closer to art than fashion.
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INSIGHT: Besides the inherent sustainability of circular product consumption, there is an exclusivity factor that makes this type of garment even more attractive to their audience.
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What they call ReMade (literally re-made) are pieces made from pre-existing ones. They retain the value of a vintage garment or item, but with the added customization by emerging or established designers.
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Loyalty at Urban Outfitters
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Beyond the inspirational part of this success case, I would like to show you something they do particularly well from a strategic point of view: loyalty.Urban Outfitters is a brand that has a very direct relationship with its audience, which you can see on their social media. But they don't rely solely on their engagement and prefer to use some tactics worth studying.The rewards program is something simple to implement in any eCommerce and, despite being simple, very effective. Basically, you earn points for performing actions such as:
- Joining the rewards program
- Downloading the app
- Subscribing to the newsletter
- Activating push notifications
- Making a purchase
- Writing a review
- Uploading a photo to the review
- Bringing your own bag when you go to a physical store
All these small actions yield 10 to 75 points, which correspond to 100 points / $5 balance to spend in the brand's various channels. -
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Keys to Urban Outfitters' success
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- Understanding their audience and evolving with them, not getting stuck in the same business model.
- Diversifying their brand strategy, creating different segments and targeting different niches with a multi-brand strategy that allows for various approaches.
- Consistency in their values. This is very transparent and can be seen on their website, where they talk about their commitment to the environment and their short- and medium-term goals with concrete actions to minimize their ecological footprint.
- Converging the idea of ethical consumption with exclusivity. This is a truly intelligent maneuver that gives them a positioning that allows them not to be a cheap store.
- Working on recurrence with an extraordinarily well-designed rewards program that also allows them to incorporate concepts as they need to achieve different objectives.
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I recommend that you explore further about how Urban Outfitters does things and ask yourself What do you think of this eCommerce success case?