Ahead of its IPO debut, Allbirds is seeing positive website trends among Gen Z and millennial consumers who value eco-friendly brands.
That’s according to data from web traffic analytics site Similarweb, which measured Allbirds’ current website performance and saw positive trends in traffic growth, site visit duration, and conversion rates.
Allbirds recently opened its 30th retail store in Atlanta, but the company still does a significant amount of its business online.
Since February 2021, Allbirds has seen double-digit web traffic growth, with almost 40% year over year growth in April and 25% year over year growth in August. Allbirds also has an average visit duration of almost three minutes, ranking ahead of many other DTC companies. Finally, Allbirds’ conversion rate of 6.2% is also much higher than other DTC companies including Wayfair, Blue Nile, and Glossier.
Most of Allbirds’ sales come from customers between the ages of 25 and 34, Similarweb estimated. In general, these millennial and Gen Z consumers are turning to companies like Allbirds that value sustainability and limiting their impact on the environment.
Allbirds has become notable for its focus on footwear made from sustainably sourced materials, such as tree fiber, sugarcane and crab shells. When the eco-friendly brand filed for an IPO in late August, it outlined an ambitious new structure for a sustainability-focused process for going public. In an amendment filed this week, Allbirds walked back on some of these plans, including a goal to provide a framework for similar companies to go public in this way.
However, Allbirds is still known for its eco-friendly products. According to the report, the brand’s positive web trends suggest that this focus on sustainability might be a driving factor behind the brand’s performance among Gen Z and millennials.
Allbirds declined to comment.
Since 2015, Allbirds has sold more than eight million pairs of shoes to over 4 million customers across the globe. This includes 3.3 million customers in the U.S. Net revenue grew from $126 million in 2018 to $219.3 million in 2020. However, the company also revealed a net loss of $25.9 million in 2020.
In general, environmental, social and governance (ESG) efforts are becoming more important to companies from an investor perspective. In its S-1 filing with the SEC on Monday, Rent the Runway noted its crucial role in “the circular economy” and the importance of sustainability. In a regulatory filing last month, online eyewear retailer Warby Parker highlighted its status as a carbon-neutral company.