Xcel Brands Co-Founds ORME, a Next Generation Short-Form Video Marketplace
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The investment by Xcel Brands in ORME represents a strategic move to capitalize on the burgeoning social commerce market, which is exhibiting robust growth. The integration of short-form video (SFV) with social commerce is a trend that aligns with consumer behavior, as video content continues to dominate social media and drive engagement. ORME's business model, which combines affiliate, influencer and digital marketing into a performance-based model, addresses the current market need for higher conversion rates in digital advertising.
From a market perspective, the social commerce space is ripe for innovation, especially with the projected growth of video shopping in the US to $35 billion in 2024. The emphasis on performance-based cash fees for content sharing could disrupt traditional affiliate and influencer marketing models, potentially increasing ROI for brands. Furthermore, ORME's AI-powered recommendation engine and content creation tools could provide a competitive edge by enhancing user experience and personalization, which are key factors in driving sales conversions.
Xcel Brands' 30% stake in ORME could have significant financial implications. The investment in a platform with 'unicorn potential' indicates high expectations for future revenue growth and market penetration. Considering the social media influencer marketing spend is increasing at a rate of 18.8% per annum, ORME's business model could capture a substantial share of this expanding market, potentially increasing Xcel Brands' revenue streams.
The investment in ORME may also be seen as a diversification strategy for Xcel Brands, reducing its reliance on traditional e-commerce and retail channels. However, it is important to monitor the execution of ORME's business model and its ability to achieve the high conversion rates it promises, as this will be a critical determinant of the investment's success. Additionally, the scalability of ORME's technology and its integration capabilities with existing e-commerce platforms will be crucial for widespread adoption by brands and retailers.
ORME's approach to revolutionize social commerce by transitioning from a one-to-many to a many-to-many retail model reflects a deep understanding of the current e-commerce landscape. The focus on creating a community that rewards both shoppers and influencers for their engagement is an innovative way to foster brand loyalty and consumer retention. By incentivizing content creation and sharing, ORME could effectively turn customers into brand ambassadors, amplifying brand reach organically.
ORME's style chatbot and AI-powered content editor filter are tools that could significantly enhance the customer experience by providing tailored recommendations and improving content discoverability. These features, if executed well, could set a new standard for customer engagement in the e-commerce space. However, the challenge lies in maintaining the quality of user-generated content and ensuring that the platform's algorithms accurately reflect consumer preferences without compromising privacy.
Xcel Brands owns
ORME was created to reward customers for interacting with brands and retailers
NEW YORK, Jan. 24, 2024 (GLOBE NEWSWIRE) -- Xcel Brands, Inc. (NASDAQ: XELB) (“Xcel” or the “Company”), a media and consumer products company with expertise in livestream shopping and social commerce, today announced its
“ORME is an opportunity with unicorn potential,” said Robert W. D’Loren, Chairman and Chief Executive Officer of Xcel. “ORME is redefining how consumers interact with brands and products, creating a seamless and engaging shopping experience that provides a nearly infinite return on ad spend for brands and gives all shoppers an opportunity to participate in the retail commerce flywheel.”
Faisal Ahmed, CEO of ORME, Inc., highlighted, “ORME is more than a marketplace; it is a community where social sharing and referral incentives include and reward shoppers and influencers. This feature not only amplifies brand content but also offers fee earning potential through referrals, leveraging the power of social networks and word-of-mouth marketing.”
ORME is set to transform the retail model from a one-to-many to a many-to-many experience. Combining the best aspects of affiliate, influencer, and digital marketing into a performance-based model, ORME presents a whole new experience for shoppers, influencers, brands, and retailers.
For shoppers and influencers, ORME creates a unique environment where they can create fun content, tell inspiring stories, learn from authentic people, explore an array of products in fashion, beauty, home, pet, and wellness sectors, and even earn performance-based cash fees for sharing content. For brands and retailers, ORME offers free, simple, and fast integration with all e-commerce platforms and an easy, efficient, and controlled content creation process. The platform also boasts a personalized AI-powered content and product recommendation engine, a style chatbot, and a content editor filter.
ORME aims to solve the issues with low conversion rates with affiliate, influencer and digital marketing, and the lack of an end-to-end SFV platform in the US. According to McKinsey & Company, on average,
The SFV and social commerce market is growing rapidly. Affiliate and banner marketing is a
About Xcel Brands
Xcel Brands, Inc. (NASDAQ: XELB) is a media and consumer products company engaged in the design, marketing, live streaming, social commerce sales of branded apparel, footwear, accessories, fine jewelry, home goods and other consumer products, and the acquisition of dynamic consumer lifestyle brands. Xcel was founded in 2011 with a vision to reimagine shopping, entertainment, and social media as one thing. Xcel owns the Judith Ripka, Halston, LOGO by Lori Goldstein, and C. Wonder by Christian Siriano brands and a minority stake in the Isaac Mizrahi brand. It also owns and manages the Longaberger brand through its controlling interest in Longaberger Licensing LLC and a
About ORME
ORME is based in New York and is a next generation short form video marketplace inspiring our users through honest and authentic content created by shoppers, creators, influencers and brands wherever they create, watch, listen, connect and socialize in the digital universe. ORME was cofounded by Xcel Brands and KonnectBio, Inc.
ORME is committed to evolving through innovations in technology including the major application of AI, making deep connections with our users and community and providing opportunity to all in the retail commerce flywheel. ORME makes the everyday shopper a paid influencer. www.ormelive.com
Forward Looking Statements
This press release contains forward-looking statements. All statements other than statements of historical fact contained in this press release, including statements regarding future events, our future financial performance, business strategy and plans and objectives of management for future operations, are forward-looking statements. We have attempted to identify forward-looking statements by terminology including "anticipates," "believes," "can," "continue," "ongoing," "could," "estimates," "expects," "intends," "may," "appears," "suggests," "future," "likely," "goal," "plans," "potential," "projects," "predicts," "seeks," "should," "would," "guidance," "confident" or "will" or the negative of these terms or other comparable terminology. These forward-looking statements include, but are not limited to, statements regarding our anticipated revenue, expenses, profitability, strategic plans and capital needs. These statements are based on information available to us on the date hereof and our current expectations, estimates and projections and are not guarantees of future performance. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors, including, without limitation, the risks discussed in the "Risk Factors" section and elsewhere in the Company's Annual Report on form 10-K for the year ended December 31, 2022 and its other filings with the SEC, which may cause our or our industry's actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time, and it is not possible for us to predict all risk factors, nor can we address the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause our actual results to differ materially from those contained in any forward-looking statements. You should not place undue reliance on any forward-looking statements. Except as expressly required by the federal securities laws, we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.
For further information please contact:
Dave Gentry, CEO
RedChip Companies Inc.
407-491-4498
XELB@redchip.com
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