Yahoo Finance An Online Marketplace for ‘Many People to Sell Many Things’
There’s about to be a new social commerce player in town.
Backed by Xcel Brands Inc., in conjunction with KonnectBio Inc., Orme will launch as a short-form video marketplace that aims to raise the profile of brands and products, reward shoppers and help influencers make money.
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“It’s going to change everything about the way people think about sharing information, brands and products over social media,” Robert W. D’Loren, chairman and chief executive officer of Xcel, said in an interview. “It will also solve some very significant problems in the industry,” D’Loren said, citing low conversion rates and insufficient returns on ad spends.
Like TikTok, Orme will enable users to create short videos about products and share them with friends and family. If products sell, creators earn 6 percent for their videos, and 2 percent for others’ videos that they share, D’Loren said.
“We’re in the final stages of beta testing,” D’Loren said. Orme is expected to open up for commerce within two weeks and has been under development for two years.
“Orme has four AI engines in it. It’s going to change the retail model with many people selling many things to many people,” D’Loren said.
Orme is the Nordic word for dragon, which in Nordic culture is used as a protector of all evil — meant to be a sign that this new marketplace platform will provide honest and authentic product reviews.
D’Loren said Xcel has been in talks with fashion, apparel, accessories and beauty brands for joining the Orme marketplace.
Xcel, a media and consumer products company with expertise in livestream shopping and social commerce, has a 30 percent stake in Orme.
“Orme is an opportunity with unicorn potential,” said D’Loren, in his statement. “Orme will redefine how consumers interact with brands and products, creating a seamless and engaging shopping experience providing a nearly infinite return on ad spend for brands and shoppers an opportunity to participate in the retail commerce flywheel.”
Faisal Ahmed, CEO of Orme, characterized Orme as “more than a marketplace. It is a community where social sharing and referral incentives reward shoppers and influencers,” he said. “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 was developed by KonnectBio, a technology company.
Orme said it offers “free, simple, and fast integration with all e-commerce platforms and an easy, efficient and controlled content creation process.” The platform has personalized AI-powered content, product recommendation, a style chatbot, and a content editor filter. Orme also cited a McKinsey & Company statistic that on average, 28 percent of video shopping leads are converted into sales.
“The short-form video and social commerce market is growing rapidly,” Xcel indicated. “Affiliate and banner marketing is a $12 billion market globally, with video shopping projected to be a $35 billion market in the U.S. in 2024. Social media influencer marketing spend by brands was around $16.4 billion in 2022 and is increasing at a rate of 18.8 percent per annum.”
Xcel Brands owns the Judith Ripka, Halston, Logo by Lori Goldstein, and C. Wonder by Christian Siriano brands and has 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 has a 50 percent interest in a joint venture in Twrhll (Tower Hill) by Christie Brinkley. Xcel products are sold through interactive television, digital livestream shopping, social commerce, brick-and-mortar retail, and e-commerce channel.
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