tag:econsultancy.com,2008:/topics/ecommerce Latest Ecommerce content from Econsultancy 2017-07-18T14:10:13+01:00 tag:econsultancy.com,2008:BlogPost/69255 2017-07-18T14:10:13+01:00 2017-07-18T14:10:13+01:00 Amazon Prime Day 2017: The mind-blowing stats and facts Patricio Robles <p>Prime Day 2017 proved to be the biggest yet. Just how big? Here are the stats and facts you should know about Amazon's self-proclaimed "epic day of deals."</p> <h3>Sales grew 60%</h3> <p>Year-over-year, Amazon says its Prime Day sales <a href="http://www.foxbusiness.com/markets/2017/07/12/amazon-prime-day-breaks-sales-record-with-60-growth.html">grew</a> a whopping 60%. While Amazon didn't reveal absolute revenue figures, considering that Prime Day 2016 was estimated to have generated somewhere between $500m and $600m in revenue, there is no doubt that it raked in the cash last week and it's estimated that the retail giant surpassed the $1bn sales mark with Prime Day this year.</p> <h3>Tens of millions of Prime members made a purchase</h3> <p>By some estimates, approximately 70% of U.S. households have a Prime membership and according to Amazon, "tens of millions" of Prime members put them to use on Prime Day, a 50% year-over-year increase.</p> <h3>Amazon signed up more Prime members than ever on a single day</h3> <p>What's more, Amazon revealed that the ranks of Prime members increased the most ever in a single day as consumers without Prime memberships itching to take advantage of Prime Day deals took the plunge and signed up for the service, which costs $99/year or $10.99/month.</p> <h3>The Echo Dot was Prime Day's biggest seller</h3> <p>The <a href="https://econsultancy.com/blog/69080-fmcg-brands-if-you-didn-t-have-an-amazon-strategy-before-you-need-one-now/">future of voice assistants is looking very bright</a> and it became even brighter last week as Amazon's Echo Dot speaker captured the distinction of being the best-selling product on Prime Day.</p> <p>The voice assistant, which normally costs $49.99, was discounted by 30%, bringing its price down to $34.99. Amazon also heavily discounted the larger and more feature-rich Echo voice assistant speaker to $89.99 down from $179.99. All told, <a href="https://techcrunch.com/2017/07/11/echo-devices-are-amazon-prime-days-best-sellers/">according to</a> one TechCrunch source, Amazon was selling thousands of Echo devices per minute at one point during Prime Day and doubled and tripled the total number of Echo devices it sold in the U.S. and globally, respectively, compared to Prime Day last year.</p> <p>The frenetic pace of Echo sales last week only bolsters the argument that <a href="https://econsultancy.com/blog/69075-is-it-too-early-to-predict-that-amazon-will-win-the-voice-controlled-speaker-market/">Amazon is set to win the voice-controlled speaker market if it hasn't already</a>.</p> <h3>Some sellers saw their sales leap over 1,000%</h3> <p>Companies offering Prime Day discounts might have sacrificed margins to be a part of Amazon's big shopping holiday, but <a href="http://www.cnbc.com/2017/07/11/this-business-had-1371-percent-increase-in-amazon-sales-on-prime-day.html">they were rewarded with surging sales</a>.</p> <p>One first-time Prime Day participant, natural chewing gum upstart Simply Gum, offered customers 20% off its gums and saw its Amazon sales rocket by 1,371%. According to Simply Gum founder Caron Proschan, "Prime Day has really proven to be one of the most important days of the year for our business, not only in terms of sales lift, but also in terms of generating brand awareness and exposure."</p> <p>Second-time Prime Day participant kitchen products company Willow &amp; Everett, realized Prime Day sales 1,500% higher than its daily average sales volume on Amazon, a sizable increase from 2016, which delivered Prime Day sales of 1,000%, or ten times, its daily average sales volume.</p> <h3>Other retailers cashed in</h3> <p>While Amazon started Prime Day, the 'Black Friday in July' concept has caught on and other retailers, not wanting to be left behind, have launched their own July sales to coincide with Prime Day.</p> <p><a href="https://www.bloomberg.com/news/articles/2017-07-14/ebay-said-to-break-july-sales-records-thanks-to-amazon-prime-day">According to</a> Bloomberg, one of Amazon's biggest competitors, eBay, "had its two best sales days ever for July during Amazon's event this week, according to a person familiar with the matter."</p> <p>Interestingly, according to SimilarWeb, while traffic to Amazon increased 5% year-over-year on Prime Day, the percentage of Amazon visitors who completed a purchase during Prime Day dropped from 14.5% to 11.4%, suggesting that more consumers are aware of the fact that other retailers are offering discounts of their own during Prime Day.</p> <h3>Amazon was by and large the price leader, but not all the time</h3> <p>In its analysis of Prime Days sales, Price comparison shopping service Priceblink found that 40% of Prime Day deals were exclusive to Amazon. Another 40% were not exclusive to Amazon but had Amazon offering the lowest price by an average of 18%.</p> <p>The remaining 20% of deals were offered by other retailers who had better prices than Amazon.</p> <h3>Black Friday is still the day for "steals"</h3> <p>Despite the growing competition from other retailers, with a few exceptions, Black Friday in July isn't quite <em>the</em> Black Friday (or Cyber Monday). At least not yet. As USA Today's Jefferson Graham <a href="https://www.usatoday.com/story/tech/talkingtech/2017/07/11/amazon-prime-day-lots-deals-few-steals/468176001/">put it</a>, while there were many deals to be had, there were "few steals," something that some consumers took note of.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Was excited to check out <a href="https://twitter.com/amazon">@amazon</a> Prime Day... super disappointed when I did. I mean, really? These are the top deals? <a href="http://t.co/4lfLwmZS4B">pic.twitter.com/4lfLwmZS4B</a></p> — Tyler J. Taylor (@tylerjtaylor_) <a href="https://twitter.com/tylerjtaylor_/status/621305271940456448">July 15, 2015</a> </blockquote> <p>While Prime Day still reached new heights in 2017, it's clear that consumers are getting savvier and it will be interesting to see if the Prime Day discounting gets more aggressive in the coming years as they come to demand that July's Black Friday delivers on the name.</p> tag:econsultancy.com,2008:BlogPost/69247 2017-07-18T12:00:52+01:00 2017-07-18T12:00:52+01:00 Bounce is back! And product pages are to blame.. Steve Borges <h3>Where has the problem come from?</h3> <p>Well the truth is that one of the underlying causes has been there for a while, as we have become used to seeing bounce rates on mobile at 150-200% of those on desktop. It’s the shift in traffic to mobile, with some retailers now seeing mobile mix as high as 70-80%, that has turned these higher mobile bounce rates into a commercial headache</p> <p><img src="https://assets.econsultancy.com/images/0008/7495/bounce_analysis.png" alt="Bounce Rate Analysis" width="615"></p> <p>Recent evidence has proved that sluggish mobile page download times are a prime culprit and, ironically, also lead to bounce rate being under-reported, as users abandon mobile pages even before the Google Analytics tag is fired. So it turns out that the problem is even worse than we thought..</p> <p>It’s no surprise then, that there is currently significant focus on delivering improvements in mobile page download speeds to solve this issue, which has led to a number of interesting initiatives, including the <a href="https://econsultancy.com/blog/68490-google-s-accelerated-mobile-pages-12-pros-and-cons/">Accelerated Mobile Pages</a> (AMP) Project and the move towards <a href="https://econsultancy.com/blog/68601-what-are-progressive-web-apps-pwas/">Progressive Web Apps</a>. All good stuff.</p> <p>However, there’s more to the bounce problem than this and, over the last six months we've noticed that some retailers' mobile bounce rates have been creeping up at a pace that simply can’t be accounted for by the site speed issue.</p> <p>Dig a little deeper and it becomes clear that the problem is predominantly with product details pages and specifically where users land directly on those pages, rather than navigate to them from elsewhere on the site (where bounce rates look more like the site average).</p> <p><img src="https://assets.econsultancy.com/images/0008/7496/PDP_bounce.png" alt="PDP Bounce Analysis" width="615"></p> <p>Where it occurs, this phenomenon exists to some extent across <strong>all</strong> marketing channels where users are landed directly on a product details page, including email and affiliates, but has a particularly detrimental effect on the performance of retailers’ most expensively acquired traffic - paid search and, in particular, Google Shopping.</p> <h3>So what’s going on?</h3> <p>Well, it’s not as complicated as you might think.</p> <p>In the traditional journey, users navigate from the homepage or other landing pages to product listings pages (PLPs) before viewing individual product details pages (PDPs). This means that users have the opportunity to understand and evaluate the brand and its retail proposition, the overall range assortment and pricing, before even starting to consider individual products.</p> <p>From a behavioural point of view on mobile, there’s now a well established pattern - users quickly navigate to the category they are interested in, once on the PLP they invest time filtering to refine their selection, before starting to view PDPs. If they get onto a PDP and don’t like the look of the product, they simply swipe right to return to the PLP to try again, until they have found what they are looking for. It’s at this point they are most likely to engage with deeper PDP content.</p> <p>In general, the “traditional” PDP performs well in this context and optimisation can make it even better, where improving image gallery interactions, making product information easier to consume, integrating brand content and reinforcing social proof can all improve engagement and conversion.</p> <p>Consider though, how different the user journey is when it starts on the PDP itself. For example, with Google search and Google Shopping, users (typically) enter a generic search term and are then presented with a list of specific products, offered by a range of retailers. Tap on any of these and the user is straight onto a retailer’s PDP.</p> <p>We’ve seen what happens next repeatedly in the lab. Users land directly on the PDP and, if it’s not exactly the product they’re looking for and it’s not <strong>immediately</strong> obvious how to do anything else, as in the example below (with my apologies to the Homebase team), they instinctively swipe right, straight back to where they came from (in this example Google Shopping) and select another product. Boing.</p> <p><img src="https://assets.econsultancy.com/images/0008/7492/gs_shed.png" alt="Google Shopping Bounce" width="1104" height="831"></p> <p>Clearly then, the “traditional” PDP, conceived and refined for an entirely different browsing journey, simply isn’t fit for purpose as a direct point of entry to the site, where it doesn’t meet either the user needs or the retailer’s objectives.</p> <p>Beautiful imagery, compelling features and benefits and great reviews? If it’s not actually the product I’m looking for, none of that stuff matters.</p> <h3>How to get PDP bounce under control</h3> <p>The goal is simple. Any solution has to make it easier for users who have landed directly on a PDP, but don’t like the product featured, to see more products. Even easier than swiping right.</p> <p>A relatively simple aim then, but not necessarily a simple solution.</p> <p>Firstly, we know that improving the discoverability of other similar items in the category is useful. That includes, for instance, making “see next” and “more like this” options more obvious, adding simple navigation options, upweighting and adapting breadcrumbs and so on.</p> <p>But we also know that relatively small changes such as these can make a big difference on mobile and it’s essential that they don’t undermine the performance of the PDP in its traditional role, which is still important. So it’s absolutely critical that any changes are A/B tested thoroughly before implementation.</p> <p>In reality though, a single solution that meets two entirely different sets of user needs will always be a compromise and possibly one too far.</p> <p>So a more sustainable solution and the way to deliver the optimum commercial outcome, is to present an adapted version of the PDP to users who land directly on that page, thus meeting their specific needs.</p> <p>How this differs from the traditional PDP can range from presenting much bolder navigation options, encouraging the user to continue their journey on the site, presenting alternative product options in a much more obvious way and ultimately creating entirely different page layouts that provide more radical solutions.</p> <p>Prototyping, user testing and A/B testing are essential steps towards getting this right, as is delivering these adapted pages to users only in the right context, using your testing/personalisation tools.</p> <p>Ultimately though, dealing with this issue will require creativity and a lot of experimentation - because the right approach differs from retailer to retailer and product category to category.</p> <p>However you approach this issue - two things are certain: Finding the right solution is going to take quite a bit of effort, but the rewards for doing so make it well worth it, as it will make a difference to ROI across all of your marketing channels.</p> <p><em><strong>More from this author</strong></em></p> <ul> <li><a href="https://econsultancy.com/blog/69193-using-data-to-improve-your-mobile-conversion-a-simple-but-effective-approach/">Using data to improve your mobile conversion: A simple but effective approach</a></li> </ul> tag:econsultancy.com,2008:BlogPost/69252 2017-07-14T14:04:40+01:00 2017-07-14T14:04:40+01:00 10 dazzling digital marketing stats from this week Nikki Gilliland <h3>Three in four shoppers browse elsewhere before making Prime Day purchases</h3> <p>Research from <a href="http://blog.bazaarvoice.com/2017/07/10/brands-retailers-seize-amazon-prime-day/" target="_blank">BazaarVoice</a> suggests that Prime Day shopping extends beyond Amazon, with 76% of people visiting other online retailers before making a purchase. 46% of consumers are said to visit Walmart, while 40% check Target. </p> <p>BazaarVoice also found that consumers tend to browse other retailers depending on product categories. For example, more than half of shoppers researching electronics brands will also visit Best Buy, while 49% turn to Lowe’s for researching outdoor items like hammocks or barbeques.</p> <h3>33% of consumers say they will erase personal data as GDPR comes into effect</h3> <p>A new survey by SAS suggests that nearly half of consumers plan to utilise their new rights over personal data in May 2018.</p> <p>In a poll of over 2,000 UK adults, 33% said they plan to exercise their right to remove personal data from retailers, while 33% will also ask for their data to stop being used for marketing purposes.</p> <p>17% of people said they will challenge automated decisions, and 24% will access the data that retailers hold on them.</p> <p><img src="https://assets.econsultancy.com/images/0008/7477/SAS_GDPR.JPG" alt="" width="780" height="298"></p> <h3>Prime Day is the biggest sales day of the year for Amazon so far</h3> <p>New data from Hitwise has revealed that there were 9.5m transactions processed on Amazon.com during Prime Day 2017 – making it the biggest sales day of the year so far. The day generated even more sales than last year, when Amazon processed 6.7m transactions.</p> <p>Altogether, Amazon.com accounted for 87% of all online transactions processed by the top 50 retailers on Prime Day – a day when one in every 10 visits to the site resulted in a purchase.</p> <h3>Companies experience digital performance problems once every five days</h3> <p>Research by <a href="https://www.dynatrace.com/digital-transformation-audit/" target="_blank">Dynatrace</a> suggests that organisations are encountering digital performance problems on average once every five days, with individuals across business and IT functions losing a quarter of their working lives fighting to address these problems.</p> <p>In a survey of 1,200 global IT and business professionals, 75% of respondents said they have low levels of confidence in their ability to resolve digital performance problems. 48% also stated these issues were directly hindering the success of digital transformation strategies in their organisations.</p> <p>Marketing professionals are said to lose 470 hours per year or nearly two hours every business day to addressing performance problems, while IT operations professionals lose 522 hours per year or over two hours every business day.</p> <p><img src="https://assets.econsultancy.com/images/0008/7475/Dynatrace.JPG" alt="" width="582" height="293"></p> <h3>Debit cards overtake cash payments in the UK</h3> <p>The latest <a href="https://brc.org.uk/news/2017/debit-cards-overtake-cash-to-become-number-one-payment-method-in-the-uk" target="_blank">Payments Survey</a> has revealed that debit card purchases have overtaken cash for the first time in the UK, with nearly £190bn being spent via this channel in 2016.</p> <p>Meanwhile, the share of cash transactions shrank 4.5% to account for 42.3%, leaving credit and charge cards to make up the remaining 11.4%. </p> <p>The use of contactless technology has contributed to the rise in card payments, with consumers increasingly using contactless to pay for smaller purchases. The average transaction value on cards declined from £30.53 in 2013 to £25.40 in 2016.</p> <p><img src="https://assets.econsultancy.com/images/0008/7474/Cash.JPG" alt="" width="740" height="513"></p> <h3>37% of online spend goes through Amazon</h3> <p>The success of this year’s Amazon Prime Day might be indication enough, but new research from <a href="https://info.salmon.com/amazon-king-of-jungle-research" target="_blank">Salmon</a> has also highlighted just how much the retailer dominates the ecommerce industry.</p> <p>In a survey of over 6,000 consumers across Europe and the US, Salmon found that 37% of all consumer spending goes through Amazon. This could rise, too, as 73% of consumers say they will increase their use of digital shopping channels in future.</p> <p>53% of survey respondents also said they would be more likely to buy through Prime than a retailer’s online store, while the majority of consumers feel that Amazon is ‘leading the way in digital retail’.</p> <p><img src="https://assets.econsultancy.com/images/0008/7478/Salmon.JPG" alt="" width="550" height="435"></p> <h3>Fresh grocery searches on the rise</h3> <p>From analysis of over 100m online searches in Q2, Criteo has discovered that searches for online groceries increased by 108% during the period of April to June 2017.</p> <p>With consumers relying on faster and more flexible delivery options, buying fresh produce online is becoming all the more convenient. Consequently, searches for milk, eggs and cheese all increased in the second quarter. Online searches for milk increased by 92% from the first three months of the year.</p> <h3>More than 50% of travellers look for inspiration during the planning process</h3> <p>A <a href="https://info.advertising.expedia.com/multi-national-travel-trends-in-the-tourism-industry" target="_blank">new study</a> by Expedia Media Solutions has uncovered the motivations and behaviours of travel consumers across eight countries including China, Australia and the UK.</p> <p>In all eight countries, at least 50% of travellers say they are often undecided on a destination close to booking, with most looking for help and inspiration during the planning process. More than 65% say they are influenced by informative content from travel or tourism brands.</p> <p>That being said, the research also found differences in the kind of marketing people respond to. While ads featuring deals are most likely to influence Americans, Canadians and Australians, Chinese travellers are prompted by ads with appealing imagery and informative content. Both French and German travellers place equal value on appealing deals and imagery.</p> <p><img src="https://assets.econsultancy.com/images/0008/7476/Expedia_Media_Solutions.JPG" alt="" width="780" height="363"> </p> <h3>Marketers struggling to localise content</h3> <p>According to research from the <a href="https://www.cmocouncil.org/authority-leadership/reports/328" target="_blank">CMO Council</a>, marketers are finding it difficult to localise content and tailor their output for individual media platforms.</p> <p>In a poll of 150 marketers, just 36.2% agreed they were performing well when it comes to translating creative strategies across all the necessary physical and digital touchpoints. Furthermore, just 32% believed they are succeeding in adapting branded content for different markets, audiences, and locations served by their companies around the world.</p> <p>47.7% of respondents stated that ‘localisation demands’ – e.g. language, cultural values and religion – were putting pressure on teams to deliver creative at scale. 43.9% also cited new digital formats and device types as a big challenge.</p> <h3>Emojis lose momentum as a marketing tactic</h3> <p>Research from 2016 showed that 95% of Brits were more likely to open an email if they contained emojis that juxtaposed the subject line. However, a new study by Mailjet suggests that emojis might be losing their effect.</p> <p>In a series of tests, Mailjet found open rates in the UK and the US rise by just 5% and 6% respectively when emojis accompanied the subject line.</p> <p>While the crying-with-laughter emoji was previously the most popular, Brits are now 33% less likely to open a message using the crying emoji than an email without it. The current overall best performer is the simple red heart emoji, being one of the few to generate a positive net result across all test regions with a 6% increase in open rate. </p> <p><img src="https://assets.econsultancy.com/images/0008/7479/emojis.jpg" alt="" width="540" height="540"></p> tag:econsultancy.com,2008:BlogPost/69241 2017-07-14T12:09:00+01:00 2017-07-14T12:09:00+01:00 Three reasons to admire Glossier: The best online beauty brand you've never heard of Charles Wade <p>The brainchild of reality TV semi-celebrity Emily Weiss, it is a spin-off from her popular blog ‘<a href="https://intothegloss.com/categories/the-top-shelf/">IntoTheGloss.com</a>’ (an editorial beauty site). Whilst Glossier’s trajectory from nowhere to darling of the cosmetics world has much to do with its sister site, the savvy CEO, and a tidal influencer strategy, it is in fact the fantastic customer journey – from online to on-skin – that keeps people coming back for more.  </p> <h3>Subjective Lines </h3> <p>This is a brand that knows its audience, nowhere is this more evident than email newsletters, which are often playful and quizzical, yet equally compelling.</p> <p>For example, on March 2016 a message was sent with the odd title “Re: Phase 2 Launch tomorrow”. Inside there was plain text, no images, and content – it appeared to be a professional exchange between the Head of Design and the Founder that had been mistakenly forwarded to customers.</p> <p>“Hey guys!” the former proclaims, “The new product pages and fonts go live in the AM. Watch out world, there’s a new serif in town.” Weiss fires back: “This is huge, guys. TOMORROW!!!” The ‘Unsubscribe’ option at the bottom revealed that it was indeed a mail-out. Essentially an exercise in ‘guerilla emarketing’, it gave the recipient the feeling that they were peeking behind the curtain, with tantalising language that generated anticipation. </p> <p>The brand has frequently returned to the theme of provocative subject lines, such as “ADULTS ONLY”, “whoops”, and “How to get Rich”. Sometimes the content is related – in the case of the latter it is about ‘rich moisturizer’ – whereas others are often more ambiguous. Another example from May 26 was titled “Are you leaving?”. Given the channel it had shades of an unsubscribe message, yet it was in fact about Glossier's travel pouch (for carrying items on the plane). It is borderline clickbait – but it works.</p> <p>Glossier has used GIFs; added instructional graphics to images; and even brought back an early 2000s favourite, downloadable ‘wallpapers’. What is remarkable is how the brand consistently finds new ways to excite its audience, belying the fact that the ecommerce store carries less than 30 products.</p> <h3>‘Sitegiest’</h3> <p>The inbox experience is extended unequivocally through to <a href="https://www.glossier.com/">the website</a>, which could act as a reference point in ecommerce. Although the templates that underpin the site are not revolutionary, the brand majors on strong imagery and equally compelling language, with quips such as “the best highlighter in the universe” expertly placed.</p> <p><img src="https://assets.econsultancy.com/images/0008/7482/glossier_homepage.png" alt="" width="750" height="404"></p> <p>A common theme with this brand is the sense that it knows its customer; this translates throughout the user experience (UX). For example, the arrow cursor has been replaced by a series of emoji-style icons that are different from one piece of content to the next, utterly pointless but equally glorious.</p> <p>The product pages are impressive. Not only is the inventory shot luxuriously – often on models who are in fact employees – there is a full description, replete with awards won and application guidelines. Towards the bottom of the page images are used to further describe an item. For example, the highlight properties of ‘Haloscope’ make-up are cleverly presented by a simple motion: the wearer moves her hand from side to side, whereupon it shimmers in the light.</p> <p><a href="https://www.glossier.com/products/haloscope"><img src="https://assets.econsultancy.com/images/0008/7483/haloscope_makeup.png" alt="" width="750" height="429"></a></p> <p>Glossier can also claim to have been consistently aware about how its products might look on different skin tones. Those items with more than one shade usually have multiple application guides featuring models with varying skin or lip colours. Another clever initiative is the ability to either add a single piece into the shopping bag or essentially subscribe by selecting ‘Deliver every’ one, two, or three months. Glossier has been brave with reviews too: a sample of the best and worst are positioned next to each other at the top of the section – all remaining responses are listed thereafter. (A customer can even sort results by date or highest / lowest rating.)</p> <p>The checkout is invitingly easy. Here too a neat touch, with a progress bar filling in front of the eyes to indicate how many more dollars are required to qualify for free shipping. Gamification of the purchase process is rarely a bad thing.</p> <p>However, the best is saved for mobile. Glossier has not bothered with an app, but, recognising the proliferation of smartphone usage amongst its audience, has designed an excellent m-commerce site. In fact, it basically is an app.</p> <p><img src="https://assets.econsultancy.com/images/0008/7484/glossier_mobile.png" alt="" width="280" height="498">  <img src="https://assets.econsultancy.com/images/0008/7485/glossier_mobile_2.png" alt="" width="280" height="498"></p> <p>For example, simple navigation is anchored to the bottom of the page, rather than <a href="https://econsultancy.com/blog/65511-hamburger-menus-for-mobile-navigation-do-they-work">via hamburger menu</a>. Product shots fit snuggly within an iPhone screen and automatically scroll, making life a little more convenient for the viewer. One slight error though might have been adding so many reviews to each page, forcing the user to scroll for quite some time before being shown related items.</p> <p>The checkout is – like its desktop counterpart – brilliant. As a further help, a promo box is presented as a prominent overlay, making it easy to enter the code.</p> <h3>Applying The Gloss</h3> <p>Whilst Glossier's comms and user experience are no doubt fantastic, it would be all in vain if the product was a letdown. Yet in many ways this is the strongest suit and ensures an exquisite end-to-end journey.</p> <p>First-off, the price-point is squarely in-line with the dominant player in the market, Sephora. For example, a $25 'Priming Moisturizer' is comparable to anything on its competitor’s site. Glossier definitely sits in the enticing ‘affordable, not cheap’ zone, thereby giving it enough of an aspirational quality, without costing “<a href="https://www.glossier.com/category/makeup">half a paycheck</a>”. Indeed, the Glossier <a href="https://www.glossier.com/products/glossier-sweatshirt">sweater</a> notwithstanding, no single item strays above the $40 mark.</p> <p>The product packaging is almost flawless. The typography is bold and robust, and the standalone ‘G’ logo has an almost gothic quality. Juxtaposed are the simple yet bright colour blocks, which look like a pantone – this is demonstrated ably in the <a href="https://www.glossier.com/products/cloud-paint">Cloud Paint</a>. The company has managed to produce an inventory that is feminine without being ‘girly’. Crucially, it is easy to imagine the items standing out inside a bathroom cabinet. </p> <p><img src="https://assets.econsultancy.com/images/0008/7486/Cloud_paint.png" alt="" width="700" height="470"></p> <p>This is essentially an online business (the exception being a Manhattan showroom), so parcel presentation is important, especially given that shipping, whilst free over $30, is otherwise not cheap and certainly slower than buying at a local shop.</p> <p>An order comes in a white box embossed with Glossier's single-letter logo. Under the lid there is are quotes like "Skin First. Make up second. Smile always.”, all conveying a personal touch. The merchandise is encased within a pink semi-transparent sleeve with bubble wrap. (Perfect for carrying on a flight with most products below the TSA liquid limit.)</p> <p>Inside might be stickers or notes, all to enhance the unboxing experience – again, a knowing nod to a distinctly millennial endeavor. Whilst sales and consumer feedback attest to the quality, should someone not like their purchase they can return it for free. However the brand urges you to give it someone else who might like it and still receive money back. Clearly, this is not altruistic, however it reaffirms a central pillar of thoughtfulness that runs across all customer touchpoints.</p> <h3>Finally...</h3> <p>There is much more to admire about the brand, such as its social media presence and ethics, yet it is these three aspects that stand-out. The path from email to enamel is considered, engaging, simple, and rewarding.</p> <p>And on July 12 Glossier <a href="https://intothegloss.com/2017/07/where-can-i-buy-glossier-canada-uk-france/?_ke=Y2hhcmxpZXdAYXNvcy5jb20%3D&amp;utm_campaign=canada&amp;utm_medium=email&amp;utm_source=glossier&amp;utm_content=canada_prelaunch_quebecnocountry_071217">announced</a> that it will start to ship internationally. The formula is a winning one, so expect to see Glossier soon.</p> tag:econsultancy.com,2008:BlogPost/69244 2017-07-13T10:32:38+01:00 2017-07-13T10:32:38+01:00 Eight inspiring examples of shoppable digital content Nikki Gilliland <p>So, how can retailers capture consumers in the moment?</p> <p>Shoppable content is one effective strategy. This refers to any kind of content – including images, video or blogs – that offers customers a direct opportunity to buy within just a few clicks. The strategy helps to bridge the gap between browsing and buying, effectively engaging consumers and increasing conversion rates in the process.</p> <p>So, what does effective shoppable content look like? Here are just a few inspiring brand cases and the reasons why they work.</p> <h3>Diesel</h3> <p>Shoppable video can be a mixed bag. While the medium sounds great in theory – allowing consumers to click directly on the products they’re seeing on screen – it can actually be a rather jarring user experience, interrupting the video and taking viewers away mid-action.</p> <p>That being said, Diesel’s shoppable video – created as part of its #forsuccessfulliving campaign and in celebration of the brand’s 30th anniversary – is a pretty seamless example. </p> <p>Directed by Alexander Turvey, the short follows various Diesel models as they prepare for their first catwalk show. Calls-to-action appear at certain points throughout, which allows the viewer to save items or go directly to the Diesel store. As the video only involves music, with no real narrative or plot, this means that the experience of ‘in the moment’ shopping is less disruptive.</p> <p><a href="https://www.instagram.com/p/BKA4Zndgnja/" target="_blank"><img src="https://assets.econsultancy.com/images/0008/7407/Diesel.JPG" alt="" width="780" height="497"></a></p> <p>Meanwhile, the video capitalises on the ‘<a href="https://econsultancy.com/blog/68305-runway-to-retail-how-fashion-brands-are-introducing-see-now-buy-now" target="_blank">see now buy now trend</a>’, selling exclusive items ahead of Diesel’s FW16 runway show in Tokyo to provide extra value for consumers.</p> <h3>Lazy Oaf</h3> <p>Instagram is now the top social media platform in terms of user engagement. Instead of just likes and comments, however, many brands want to transfer this engagement into direct purchases. </p> <p>While Instagram itself has been testing its new shopping features, retailers like Lazy Oaf have been busy finding their own ways to make the user experience more shoppable. It has created its own ‘Insta-shop’ – which lives on its main site, but is also linked to from its Instagram channel.</p> <p><img src="https://assets.econsultancy.com/images/0008/7397/Instashop.JPG" alt="" width="550" height="273"></p> <p>Essentially, it allows consumers to browse the Lazy Oaf Instagram feed (but on its own website) and means they can directly click on and buy any item they like. By hovering over each photo, users can instantly see whether an item is shoppable, also making it easy for consumers to buy multiple items in one go.</p> <p><img src="https://assets.econsultancy.com/images/0008/7396/Lazy_Oaf_2.JPG" alt="" width="780" height="442"></p> <h3>Made.com</h3> <p>Made.com’s Unboxed cleverly shows how to merge <a href="https://econsultancy.com/blog/67547-10-excellent-examples-of-user-generated-content-in-marketing-campaigns" target="_blank">user-generated</a> and shoppable content. Building on the idea that people want to see how furniture or homeware looks in real life before investing, it allows customers to upload photos of their Made.com purchases. </p> <p>Alongside this, it also includes links to available items in each photo, encouraging customers to take action instead of just inspiration. Users can even get in touch with the people who have uploaded photos in order to ask questions and hear honest reviews.</p> <p>While it's not the most seamless example of shoppable content (perhaps focusing the user's attention on reviews rather than clicking through to the products themselves) - it still helps to drive purchases in the long run.</p> <p><img src="https://assets.econsultancy.com/images/0008/7400/Made_Unboxed.JPG" alt="" width="650" height="588"></p> <h3>Net-A-Porter</h3> <p><a href="https://econsultancy.com/blog/68219-four-things-brands-can-learn-about-content-marketing-from-net-a-porter" target="_blank">Net-A-Porter</a> is a retailer that truly understands the importance of shoppable content, using it to drive customer loyalty both on- and offline. Its print magazine, Porter, works in conjunction with a digital-version, allowing users to shop items directly from the page. By downloading the Net-A-Porter app and scanning the magazine, readers can find and buy items as they flip through.</p> <p><img src="https://assets.econsultancy.com/images/0008/7402/Porter.JPG" alt="" width="453" height="479"></p> <p>Net-A-Porter's weekly online publication, The Edit, uses the same formula, including handy links to all the items featured in the magazine.</p> <p><img src="https://assets.econsultancy.com/images/0008/7401/Net_A_Porter.JPG" alt="" width="780" height="556"></p> <p>Delivering instant gratification to consumers (and taking away the frustration of seeing something you like and not being able to find or buy it) – Net-A-Porter ensures that there is minimal friction between browsing and buying. </p> <h3>Tesco</h3> <p>It’s not only fashion or homeware retailers that benefit from shoppable content. Tesco is one supermarket that puts this at the heart of its digital strategy, using its ‘Real Food’ content hub to drive conversions online. </p> <p><img src="https://assets.econsultancy.com/images/0008/7404/Real_Food.JPG" alt="" width="550" height="429"></p> <p>The reason it works so well is because it makes buying multiple ingredients incredibly quick and easy. Instead of writing down and searching for individual items, users can be one click away from buying everything that’s needed for a recipe. What’s more, Tesco also prompts users in case they don’t have store cupboard items like olive oil or ketchup.</p> <p><img src="https://assets.econsultancy.com/images/0008/7403/Tesco.JPG" alt="" width="650" height="487"></p> <p>This example also demonstrates how FMCG brands can capitalise on faster purchase intent. Unlike fashion or retail brands – where the path to purchase involves much greater deliberation and comparison – people are much more likely to see and buy when it comes to food and drink.</p> <h3>Kate Spade</h3> <p>Kate Spade is one fashion retailer that has taken shoppable content to a whole new level, launching a series of ads designed to be watched and enjoyed like a TV show.</p> <p>Starring recognisable faces like Anna Kendrick, the #missadventure series is billed as a series ‘about interesting women leading interesting lives.’ Naturally, however, Kate Spade also hopes that people will be just as interested in the clothes and accessories they wear, allowing viewers to find and buy all the clothes featured.</p> <p>In order to avoid disruption to viewers, the brand collates all shoppable items into a list, which can be clicked on during or at the end of the video. </p> <p><iframe src="https://www.youtube.com/embed/j8XCi71rwsg?wmode=transparent" width="854" height="480"></iframe></p> <p>By truly immersing viewers into world of Kate Spade, the brand is able to increase the chances of them becoming paying customers.</p> <h3>One Kings Lane</h3> <p>Home décor brand, One Kings Lane, has generated effective results from its shoppable blog. However, that doesn’t mean it focuses on revenue over and above engagement. Instead, it focuses on creating high quality content and photography, providing customers with inspiration and value above everything else.</p> <p><img src="https://assets.econsultancy.com/images/0008/7405/One_Kings_Lane.JPG" alt="" width="780" height="486"></p> <p>One danger of shoppable content, especially in blog form, is that it can soon become outdated. Products will be sold out or limited, leaving content filled with old or broken links. In order to combat this, One Kings Lane <a href="https://adexchanger.com/ecommerce-2/one-kings-lane-uses-content-convert/">focuses on refreshing content regularly</a>, and ensuring that its shoppable content stays up to date.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Tour the colorful and collected home of the founder of <a href="https://twitter.com/RollerRabbit">@RollerRabbit</a> → <a href="https://t.co/lGLHmOAZJ6">https://t.co/lGLHmOAZJ6</a> <a href="https://t.co/QuRyevrFKW">pic.twitter.com/QuRyevrFKW</a></p> — One Kings Lane (@onekingslane) <a href="https://twitter.com/onekingslane/status/876092396366422016">June 17, 2017</a> </blockquote> <h3>Matches Fashion</h3> <p>Lastly, instead of using shoppable video to create film-like ads, Matches uses industry experts and behind-the-scenes insight to entice viewers to buy,</p> <p>Its ‘Digital Trunk Shows’ series involves a number of designers talking about the inspiration for and creation of their collections. Viewers can simply click on an item for it to be automatically added to their basket.</p> <p>This approach aims to use information and insight to offer real value to consumers, softly encouraging them to make purchases rather than blatantly selling.</p> <p><iframe src="https://www.youtube.com/embed/v-fO50XoNNY?wmode=transparent" width="854" height="480"></iframe></p> <p><em><strong>Related articles:</strong></em></p> <ul> <li><em><a href="https://econsultancy.com/blog/67909-selfridges-unveils-ios-app-with-shoppable-instagram-feed-is-it-any-good/" target="_blank">Selfridges unveils iOS app with ‘shoppable’ Instagram feed: Is it any good?</a></em></li> <li><em><a href="https://econsultancy.com/blog/66625-shoppable-video-the-missing-piece-of-your-marketing-strategy/" target="_blank">Shoppable video: the missing piece of your marketing strategy?</a></em></li> <li><a href="https://www.econsultancy.com/blog/68275-ted-baker-unveils-shoppable-video-google-voice-search-stunt-for-aw16-campaign"><em>Ted Baker unveils shoppable video &amp; Google voice search stunt for AW16 campaign</em></a></li> </ul> tag:econsultancy.com,2008:ConferenceEvent/840 2017-07-13T06:02:28+01:00 2017-07-13T06:02:28+01:00 Digital Cream Sydney <p style="border: 0px; vertical-align: baseline;">Exclusive to 80 senior client side marketers, <strong style="border: 0px; font-style: inherit; font-variant: inherit; vertical-align: baseline;">Econsultancy's Digital Cream</strong> is one of the industry's landmark events for marketers to:</p> <ul style="border: 0px; vertical-align: baseline;"> <li style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; font-variant: inherit;">convene and network with like-minded peers from different industries</li> <li style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; font-variant: inherit;">exchange experiences</li> <li style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; font-variant: inherit;">compare benchmark efforts</li> <li style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; font-variant: inherit;">explore the latest best practice</li> <li style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; font-variant: inherit;">discuss strategies</li> <li style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; font-variant: inherit;">learn from others who face the same challenges with suppliers, technologies and techniques. </li> </ul> <p style="border: 0px; vertical-align: baseline;">In a personal and confidential setting (It's Chatham House Rules so what's said at Digital Cream, stays at Digital Cream), the roundtable format is a quick and sure-fire way to find out what's worked and what hasn't, an invaluable opportunity to take time out and come back to the office full of ideas.</p> <h3 style="border: 0px; vertical-align: baseline; color: #004e70;">Roundtable Format</h3> <p style="border: 0px; vertical-align: baseline;">There are 8 roundtable topics and each delegate chooses 3 table topics most relevant to you, each session lasting about an hour and fifteen minutes. Each roundtable is independently moderated and focuses on a particular topic discussing challenges or areas of interest nominated by the table's attendees in the time available. This level of input ensures you get the maximum from your day.</p> <p style="border: 0px; vertical-align: baseline;">Digital Cream has been devised by the analysts and editors at Econsultancy in consultation with the most senior digital buyers in the world and runs in London, New York, Melbourne, Sydney, Shanghai, Singapore and Hong Kong.</p> <p style="border: 0px; vertical-align: baseline;"><strong style="border: 0px; font-style: inherit; font-variant: inherit; vertical-align: baseline;">Attendees pick three tables choices from the following full list of topics offered (extra topics will be removed at a later stage. If there is a topic you'd like to discuss which is not listed here, you can suggest it while registering):</strong> </p> <p style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; font-variant: inherit;">1. Agile Marketing - Develop a more responsive &amp; customer-centric approach</p> <p style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; font-variant: inherit;">2. Content Marketing Strategy</p> <p style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; font-variant: inherit;">3. Customer Experience Management</p> <p style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; font-variant: inherit;">4. Data-Driven Marketing &amp; Marketing Attribution Management</p> <p style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; font-variant: inherit;">5. Digital Transformation - People, Process &amp; Technology</p> <p style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; font-variant: inherit;">6. Ecommerce</p> <p style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; font-variant: inherit;">7. Email Marketing - Trends, Challenges &amp; Best Practices</p> <p style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; font-variant: inherit;">8. Integrated Search (PPC/SEO) - Trends, Challenges &amp; Best Practices</p> <p style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; font-variant: inherit;">9. Joining Up Online &amp; Offline Channels Data</p> <p style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; font-variant: inherit;">10. Marketing Automation - Best Practices &amp; Implementation</p> <p style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; font-variant: inherit;">11. Mobile Marketing</p> <p style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; font-variant: inherit;">12. Online Advertising - Retargeting, Exchanges &amp; Social Advertising</p> <p style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; font-variant: inherit;">13. Real-Time Brand Marketing - Using Data &amp; Technology To Drive Brand Impact</p> <p style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; font-variant: inherit;">14. Social Media Measurement &amp; Optimisation</p> <p style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; font-variant: inherit;"><strong style="border: 0px; font-style: inherit; font-variant: inherit; vertical-align: baseline;"><strong style="border: 0px; font-style: inherit; font-variant: inherit; vertical-align: baseline;">&gt;&gt;</strong> <strong style="border: 0px; font-style: inherit; font-variant: inherit; vertical-align: baseline;">View past Digital Cream event photos (source: facebook page)</strong><br></strong></p> <p style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; font-variant: inherit;"><a href="https://www.facebook.com/pg/Econsultancy/photos/?tab=album&amp;album_id=10153875617599327" target="_blank">Digital Cream Sydney 2016</a>, <a style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; color: #004dcc; font-variant: inherit;" href="https://www.facebook.com/media/set/?set=a.10153214103704327.1073741876.90732954326&amp;type=3" target="_blank">Digital Cream Singapore 2015</a>, <a style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; color: #004dcc; font-variant: inherit;" href="https://www.facebook.com/media/set/?set=a.10153124439974327.1073741873.90732954326&amp;type=3" target="_blank">Digital Cream Sydney 2015</a>, <a style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; color: #004dcc; font-variant: inherit;" href="https://www.facebook.com/media/set/?set=a.10152276242849327.1073741856.90732954326&amp;type=3" target="_blank">Digital Cream Melbourne 2014</a> and <a style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; color: #004dcc; font-variant: inherit;" href="https://www.facebook.com/media/set/?set=a.10152209218799327.1073741854.90732954326&amp;type=3" target="_blank">Digital Cream Hong Kong 2014</a></p> tag:econsultancy.com,2008:BlogPost/69216 2017-07-07T10:12:39+01:00 2017-07-07T10:12:39+01:00 Four factors fuelling the growth of fast fashion retailers Nikki Gilliland <p>So, what’s fuelling this boom? Here’s a bit of a deep dive into Hitwise’s <a href="http://www.hitwise.com/gb/articles/urgency-catwalk-look-fuels-fast-fashion-industry/?bis_prd=1" target="_blank">research</a> and how brands are capitalising on the consumer desire for instant and affordable fashion.</p> <h3>What is fast fashion?</h3> <p>Before we go any further – what exactly determines a fast fashion retailer? </p> <p>Essentially, it is when the production process is accelerated in order to get new catwalk trends into stores or online as quickly as possible. It also reflects the growing consumer desire for speed and value within retail. </p> <p>It means that, instead of waiting for new seasonal collections (i.e. spring/summer), consumers can get their hands on a continuous cycle of trend-led clothing, all year round.</p> <p>Brands such as H&amp;M and Zara were said to be among the very first fast fashion retailers. When the latter opened its first US store in 1990 (having first launched in Spain in the 1970s) it announced that it would only take 15 days for a garment to go from concept to completion.</p> <p>So, what’s fuelling fast fashion brands?</p> <h3>Speed and agility</h3> <p>Hitwise data suggests that ASOS, New Look and Very are the most popular brands in the category, accounting for 47% of the UK’s fast fashion market share. </p> <p>For brands like ASOS, the ability to capture millennial consumers is key, with this demographic now reportedly having an estimated spending power of $2.45trn. One way it does this is by delivering on the demand for new fashion, as younger consumers typically spend around seasonal events (such as festivals) as well as after payday.</p> <p>ASOS stocks over 60,000 items at any given time, allowing the ecommerce retailer to constantly update its inventory with ‘new in’ products.</p> <p><img src="https://assets.econsultancy.com/images/0008/7155/ASOS_social.JPG" alt="" width="750" height="475"></p> <p>Research by Goldman Sachs suggests that ASOS is able to do this by mastering its supply chain. The below screenshot shows the correlation between supply-chain lead times and like-for-like sales growth, with the results showing just how important speed is for both <a href="https://www.econsultancy.com/blog/69044-five-reasons-behind-boohoo-s-97-increase-in-profits" target="_blank">Boohoo</a> and ASOS.</p> <p><img src="https://assets.econsultancy.com/images/0008/7154/goldman.JPG" alt="" width="650" height="483"></p> <p>ASOS constantly tracks how well (or poorly) trends are selling online, before adjusting its inventory accordingly. This means that it reduces the risk of unsold stock, and in turn, delivers a steady stream of new trends for fashion-hungry consumers.</p> <h3>Celebrity endorsement</h3> <p>Hitwise data also shows that PrettyLittleThing.com is the fastest growing brand in the fast fashion category, with the site seeing a whopping 663% increase in online visits year-on-year since 2014.</p> <p><img src="https://assets.econsultancy.com/images/0008/7150/Hitwise.png" alt="" width="297" height="233"></p> <p>For PrettyLittleThing, working with celebrities and influencers has allowed the brand to drive awareness of its products. A popular search term relating to the site is ‘celebrities wearing Pretty Little Thing’ – mainly thanks to endorsements from the likes of Kylie Jenner and Sofia Ritchie.</p> <p>However, Pretty Little Thing does not only use celebrities to merely promote its clothing. Well-known names, like former TOWIE star Lucy Meck, have also created their own clothing lines with the brand. </p> <p><img src="https://assets.econsultancy.com/images/0008/7151/PLT.JPG" alt="" width="550" height="546"></p> <p>In doing so, it has allowed the ecommerce retailer to strengthen its connection with customers, offering them something more authentic and original than a shallow celebrity endorsement.</p> <h3>Sales through social</h3> <p>Alongside influencers, fast fashion brands have mastered the use of social media to drive sales. </p> <p>Today, consumers are constantly craving fashion and lifestyle-related digital content, not just to inspire their choices, but also for the purpose of entertainment. So, in order to deliver this, many retailers have started to act more like media brands – fusing the worlds of shopping, entertainment, and social media. </p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">SHINE BRIGHT Shop the leggings - <a href="https://t.co/BAozK9oxRq">https://t.co/BAozK9oxRq</a> the shoes - <a href="https://t.co/ybfQaGIWuX">https://t.co/ybfQaGIWuX</a> <a href="https://t.co/7Nnp9xFv7m">pic.twitter.com/7Nnp9xFv7m</a></p> — boohoo.com (@boohoo) <a href="https://twitter.com/boohoo/status/879474400445292544">June 26, 2017</a> </blockquote> <p>Unsurprisingly, Instagram reigns supreme as the most effective platform for fashion brands, with many posting videos, Instagram Stories, and including links to shoppable content to allow users to smoothly transition from the act of browsing to buying. </p> <p>One brand that has effectively used social to increase sales volume is Missguided. It has even incorporated the recognisable user interface <a href="https://econsultancy.com/blog/67600-missguided-launches-tinder-inspired-app-experience-review">of another social app – Tinder – into its own</a>.</p> <p>With its ‘swipe to hype’ feature, consumers can dislike or like products to create their own wishlists.</p> <p><img src="https://assets.econsultancy.com/images/0008/7152/Missguided_app.JPG" alt="" width="550" height="483"> </p> <p>This ‘tinderisation’ of ecommerce shows how fast paced the industry has become, with consumers making impulsive decisions – often based on the knowledge that there will be continuous stream of new products in the pipeline.</p> <h3>Sustainability and ethics</h3> <p>The fast fashion industry has come under fire in recent years for its impact on the environment, as well as suggestions that the demand for cheap clothing is driving poor working and labour conditions. </p> <p>Interestingly, research shows that 19% of the top fast fashion related searches are linked to the environment, ethics and sustainability. In order to counteract this, many brands are now displaying increased levels of transparency, with some also introducing initiatives relating to ethical and environmental issues.</p> <p>H&amp;M, for example, launched a conscious beauty collection in 2016 which included ‘planet-friendly’ products. Similarly, it has set itself the goal of using 100% sustainably sourced cotton by 2020.</p> <p><img src="https://assets.econsultancy.com/images/0008/7153/H_M.JPG" alt="" width="760" height="321"></p> <p>Meanwhile, Zara has pledged to boycott Uzbek cotton, which is an industry linked to forced labour. The brand has also joined the Better Cotton Initiative to promote sustainability and best practices for workers in the cotton industry.</p> <p>Of course, there is still a long way to go before fast fashion retailers prove themselves, however these examples are helping to satisfy increasingly conscientious consumers – as well as enhance their brand reputation.</p> <h3>Other brands playing catch-up</h3> <p>So, what impact has the fast fashion had on the wider industry in general? Interestingly, mid-tier and luxury brands are recognising that the consumer desire for fast fashion is not only based on low prices. </p> <p>Often, it can simply be because consumers do not want to wait for seasonal collections. </p> <p>As a result, some brands are introducing ‘runway to retail’ concepts to allow consumers to get their hands on clothes as soon as they’re seen on the catwalk. Elsewhere, JC Penney has accelerated the delivery of merchandise in order to update stock mid-season, while GAP has announced that it will be trialling a fast-fashion model to see whether it increases sales.</p> <p>As the continued growth of retailers like Missguided and ASOS demonstrates, fast fashion could be a trend that’s here to stay.</p> <p><em><strong>Related articles:</strong></em></p> <ul> <li><em><a href="https://econsultancy.com/blog/68728-how-fashion-retailers-can-use-search-trend-data-to-inform-marketing-product-strategy/" target="_blank">How fashion retailers can use search trend data to inform marketing &amp; product strategy</a></em></li> <li><em><a href="https://econsultancy.com/blog/66501-how-fashion-brands-are-setting-trends-in-digital/" target="_blank">How fashion brands are setting trends in digital</a></em></li> <li><em><a href="https://www.econsultancy.com/blog/68404-10-examples-of-great-fashion-marketing-campaigns" target="_blank">10 examples of great fashion marketing campaigns</a></em></li> </ul> tag:econsultancy.com,2008:BlogPost/69230 2017-07-06T14:15:06+01:00 2017-07-06T14:15:06+01:00 After years of resistance, Nike gives in to Amazon Patricio Robles <h3>The back story</h3> <p>For years, Nike refused to sell its products directly on Amazon. As the Wall Street Journal <a href="https://www.wsj.com/articles/how-nike-resisted-amazons-dominance-for-years-and-finally-capitulated-1498662435">explains</a>, Nike has long believed that its powerhouse brand, one of the strongest and most recognizable in the world, meant it didn't have to sell through third-party distribution channels unless they agreed to Nike's demands.</p> <p>These demands were designed, among other things, to allow Nike to maintain its pricing power and control the way its products were displayed to consumers.</p> <p>When it came to Amazon, Nike executives were concerned that Amazon didn't give it enough control and the ecommerce giant's site didn't do its brand justice, so it didn't follow the lead of competitors like Adidas and Under Armour, which were more eager to tap into Amazon's platform to grow their online sales.</p> <p>Interestingly, that hasn't stopped Nike products from becoming the most-purchased apparel brand on Amazon. How? Third-party sellers, which acquire Nike products through a variety of sources, including distributors, discount retailers and even Nike's own Nike.com.</p> <p>Third parties are legally allowed to resell products that they purchase, and in the wake of the bankruptcy of brick-and-mortar retailer Sports Authority, which flooded the market with some $400m worth of liquidated merchandise including Nike products, third-party sales of Nike products on Amazon have boomed.</p> <h3>The deal</h3> <p>Frustrated with the third-party sales and Amazon's policing of counterfeits, and recognizing that the retail market has changed, Nike apparently concluded that the time was right to strike a deal with the online retail giant.</p> <p>Under the agreement, Nike will sell a "small amount" of its products to Amazon. In exchange, Amazon will prevent third-party sellers from selling those products on its site. Already, Amazon has started informing third-party sellers that they have a limited time to sell their remaining stock of Nike products before the restrictions go into place.</p> <p>According to a Wall Street Journal source, "the agreement is likely just the first step in a broader partnership, although Nike remains concerned about how its products will look on the site."</p> <h3>What's next?</h3> <p>While it remains to be seen just how smoothly the relationship between Amazon and Nike develops, it would appear that Nike's decision to relent and allow Amazon to sell its products is one that cannot realistically be reversed. This is meaningful for a number of reasons.</p> <p>First, it is arguably a capitulation to Amazon on the part of one of the world's most iconic brands. If anyone needed more evidence of Amazon's ascendance, this is it. To repeat: one of the world's most powerful and valuable consumer brands, despite its long-standing concerns, felt it could no longer avoid giving in to Amazon.</p> <p>Second, the Amazon-Nike deal demonstrates just how important third-party sales are to Amazon's business. Not only do they account for $6bn – a quarter – of the company's top line revenue, they are clearly a source of incredible leverage for Amazon. Here, the only apparent way for Nike to get Amazon to stop permitting third-party sellers from selling its products was to agree to sell its products to Amazon.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Powerful distributors win. (Remember this next time someone quotes the "content is king" or "brand is king" lines.) <a href="https://t.co/29CJHauAKq">https://t.co/29CJHauAKq</a></p> — Shira Ovide (@ShiraOvide) <a href="https://twitter.com/ShiraOvide/status/880136014366482432">June 28, 2017</a> </blockquote> <p>Finally, while the sports brand stands to profit from selling directly to Amazon, there is plenty of risk involved for Nike. After all, it's giving up a lot of control over the customer experience for the most prominent ecommerce channel and Amazon, which is itself creating private label apparel brands, will no doubt be looking closely at the data from Nike sales on its site.</p> <p>While the Nike brand will no doubt remain one of the most valuable in the world for years to come, make no mistake about it: Nike's deal with Amazon marks a major turning point in the retail upheaval that is taking place.</p> tag:econsultancy.com,2008:BlogPost/69226 2017-07-06T10:43:30+01:00 2017-07-06T10:43:30+01:00 How Food52 successfully combines content and commerce Nikki Gilliland <p>So, how has it managed to create such dual success? Here’s an in-depth look into the publisher, and what others experimenting with commerce might be able to learn from it.</p> <h3>Fusing content and community</h3> <p>As former food editor of the New York Times, Food52’s CEO and co-founder, Amanda Hesser, undoubtedly knows a thing or two about food publishing. In 2009 she teamed up with freelance food writer and recipe tester, Merrill Stubbs, to create a food website aimed at 'home cooks'.</p> <p>More specifically, Food52 aims to reach an audience of home cooks who – alongside recipes – also care about food within a wider context, such as how it fits in with a modern lifestyle, its visual appeal, and how it makes people feel. </p> <p>In order to do this, instead of a straight-forward recipe hub or editorial website, Food52 uses a combination of professional articles and <a href="https://econsultancy.com/blog/67547-10-excellent-examples-of-user-generated-content-in-marketing-campaigns" target="_blank">user-generated content</a>. So, alongside feature articles, you’ll also find regular submissions from its 1m registered contributors, and even a site ‘hotline’ for people to find answers to any burning food-related questions.</p> <p><img src="https://assets.econsultancy.com/images/0008/7240/Food52_Hotline.JPG" alt="" width="580" height="423"></p> <p>It is the site’s highly-engaged community that first allowed Food52 to venture into commerce. When the site launched, it did so with the aim of crowdsourcing a cookbook based on user submissions. Since then, it has created a number of cookbooks in this way, with each one including a competition element (with recipes voted for by fellow readers). </p> <p>In doing so, it has been able to capitalise on the contributions of its enthusiastic audience, as well as foster a real sense of community online. Contests are a regular feature throughout the year, too, with users voting for various categories such as ‘best weeknight recipe’ and ‘best thanksgiving leftover recipe’. </p> <p><img src="https://assets.econsultancy.com/images/0008/7241/Recipe_contests.JPG" alt="" width="760" height="443"></p> <h3>A seamless experience</h3> <p>Alongside this sense of community, Food52’s dedication to creating a seamless user experience has enabled it to expand into ecommerce <em>without</em> alienating its audience. </p> <p>Instead of using content purely as a vehicle to drive sales it treats the two verticals equally. It aims to be the ultimate foodie destination, meaning that - whether the user’s aim is to find a lamb recipe or a carving knife – they will be able to find what they’re looking for somewhere on the site. </p> <p>Product recommendations (usually found at the bottom of recipes) feel natural rather than forced, with the publisher only selling items that fit in with the brand’s wider ethos.</p> <p><img src="https://assets.econsultancy.com/images/0008/7242/Product_recommendations.JPG" alt="" width="550" height="677"></p> <p>Similarly, regardless of whether Food52 is promoting a product or a recipe, its priority is to always provide the user with inspiration – and high quality across the board. This stretches to the site’s signature photography and design, too. </p> <p>Both the content and commerce verticals are photographed in the Food52 studio, which ensures consistency in what the publisher calls the ‘Food52 aesthetic’. This usually means beautifully understated and minimalistic photography, often with a vintage-inspired edge.</p> <p>Together with design, Food52 uses storytelling elements to naturally integrate retail, as well as to create its own ‘point of view’. In doing so, it does not necessarily aim to compete with large competitors, but to provide extra value for consumers. Unlike the purely functional style of Amazon, for instance, Food52 uses emotive and immersive elements to draw in the audience.</p> <p>Each merchant selling on the site has their own page, including detail such as where they’re from and their motivations.</p> <p>With a third of all products sold being exclusive or one-off designs – Food52’s curated approach is certainly part of its appeal. By promoting the handcrafted nature of items and the small scale of merchants selling on the site, it feels far more 'artisan' than a big brand ecommerce site.</p> <p><img src="https://assets.econsultancy.com/images/0008/7243/One_of_a_kind_products.JPG" alt="" width="760" height="500"></p> <p>This image is portrayed everywhere on the site – even extending to the FAQ page, where the first two questions focus on the publisher’s ‘food as lifestyle’ approach.</p> <p><img src="https://assets.econsultancy.com/images/0008/7244/FAQ.JPG" alt="" width="750" height="430"></p> <h3>Relevant and natural advertising</h3> <p>Food52’s online shop is not its only source of revenue – it also makes money through display advertising and sponsored content.</p> <p>However, it also treats this in the same way as it does shoppable items, ensuring that it is both relevant and valuable for users. Again, the publisher does this by putting as much of an emphasis on quality as it would its regular editorial features or recipes. </p> <p><img src="https://assets.econsultancy.com/images/0008/7245/Sponsored_content.JPG" alt="" width="640" height="459"></p> <p>There’s no obvious difference in quality between sponsored or non-sponsored content, which means that it could even pass by unnoticed. </p> <p>Food52’s CEO, Amanda Hesser, has previously said that the publisher decides whether or not it accepts a brand deal based on a single question – would it do it with or without an advertiser? If the answer is yes, then this clearly signifies a natural partnership, and one that the audience would want to hear about. So, even if brand involvement <em>is</em> obvious, Food52’s reputation for quality means that users are perhaps more than willing to accept it.</p> <h3>Strong social presence</h3> <p>Unsurprisingly, social media is another huge area of interest for advertisers, with sponsored content on Food52’s various channels often being part of the package. </p> <p>Food52 has partnered with a number of big brands including Annie’s Mac &amp; Cheese and Simply Organic Foods in the past. And just like branded content on the website, these social posts tend to be just as well received as regular ones, mainly due to the way they seamlessly blend in with the rest of the content on Food52’s channels.</p> <p>Instagram is one place where Food52 has particularly flourished – perhaps unsurprising considering that food is one of the most <a href="https://econsultancy.com/blog/67856-four-delicious-examples-of-food-drink-brands-on-instagram/" target="_blank">popular topics on the platform</a>. </p> <p><img src="https://assets.econsultancy.com/images/0008/7246/Food52_Insta.JPG" alt="" width="780" height="418"></p> <p>That being said, other publishers show that the topic itself is not always enough. </p> <p>One of Food52’s biggest competitors, AllRecipes - which generates a huge amount of visitors on its main website - has a mere 280,000 followers on Instagram. Perhaps this can be put down to AllRecipes aiming to be a sort of social hub in its own right, however, it certainly highlights Food52’s success on the platform.</p> <p><img src="https://assets.econsultancy.com/images/0008/7247/AllRecipes.JPG" alt="" width="780" height="435"></p> <p>The publisher experiments with various types of social media content, capitalising on user-generated posts as well as other mediums like video and livestreaming. Interaction with followers is also another key to social success, with Food52 encouraging comments and replying to questions across Facebook, Twitter, and Instagram.</p> <p><iframe src="https://www.facebook.com/plugins/video.php?href=https%3A%2F%2Fwww.facebook.com%2Ffood52%2Fvideos%2F10154761571104016%2F&amp;show_text=0&amp;width=400" width="400" height="400"></iframe></p> <p>Let’s not forget its use of Pinterest either – especially how Food52 has even incorporated similar features from the discovery site into its own. Users can ‘like’ products and recipes to add them to new or existing ‘Collections’. In turn, this data also allows the publisher to discover what readers are looking for and enjoying, which it uses to inform future content and commerce sales. </p> <p><img src="https://assets.econsultancy.com/images/0008/7248/Collections.JPG" alt="" width="580" height="490"></p> <p>Using a combination of beautiful design, quality content, and focus on delivering value for its community, Food52 is a great example of how to fuse two very different verticals.</p> <p><em><strong>Related articles:</strong></em></p> <ul> <li><em><a href="https://econsultancy.com/blog/66438-how-should-ecommerce-brands-be-using-content/" target="_blank">How should ecommerce brands be using content?</a></em></li> <li><em><a href="https://econsultancy.com/blog/69026-why-online-publishers-are-launching-wedding-verticals/" target="_blank">Why online publishers are launching wedding verticals</a></em></li> <li><a href="https://econsultancy.com/blog/69058-how-millennial-entrepreneurs-are-disrupting-retail-and-ecommerce/" target="_blank"><em>How millennial entrepreneurs are disrupting retail and ecomm</em>erce</a></li> </ul> tag:econsultancy.com,2008:BlogPost/69218 2017-07-04T11:00:00+01:00 2017-07-04T11:00:00+01:00 24 Sèvres: Will it disrupt the luxury ecommerce market? Nikki Gilliland <p>While the likes of Net-A-Porter and Farfetch have mastered the art – using a combination of brilliant <a href="https://econsultancy.com/blog/68219-four-things-brands-can-learn-about-content-marketing-from-net-a-porter" target="_blank">content marketing</a> and <a href="https://econsultancy.com/blog/69000-what-farfetch-s-store-of-the-future-tech-says-about-the-state-of-luxury-retail/" target="_blank">super-fast delivery</a> to satisfy customers – there’s now a new kid on the block.</p> <p>24 Sèvres is a new ecommerce company owned by LVMH (the parent company of brands like Louis Vuitton and Marc Jacobs). Inspired by the iconic French department store, Le Bon Marché, 24 Sèvres aims to fill a gap in the luxury retail market, offering a ‘shopping experience of the future’.</p> <p>So, what does it offer for luxury consumers, and will it tempt them away from competitors? Here’s more on the launch, alongside what I think makes 24 Sèvres stand out from the crowd.</p> <h3>Building on an existing store reputation </h3> <p>Le Bon Marché has been a destination store at 24 rue de Sèvres in Paris for more than 160 years. The aim of 24 Sèvres is to bring the experience of shopping there online, giving customers all over the world access to a curated and distinctly Parisian perspective on fashion.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Hello world! We're open <a href="https://t.co/8avjPkrJTr">https://t.co/8avjPkrJTr</a>. <a href="https://t.co/0Zf5ZjJZX3">pic.twitter.com/0Zf5ZjJZX3</a></p> — 24 Sèvres (@24Sevres) <a href="https://twitter.com/24Sevres/status/871992437807427585">June 6, 2017</a> </blockquote> <p>So, while 24 Sèvres might seem a little late to the party – entering ecommerce long after rivals like Net-A-Porter – the long history of Le Bon Marché (as well as its unique cultural appeal) gives it an immediate head-start. The same perhaps cannot be said for the likes of Style.com – the Conde Nast-owned company that failed to get off the ground.</p> <p>As well as an existing set of customers, 24 Sèvres also hopes to capitalise on the fact that it shares its name with Le Bon Marche’s existing loyalty program. Now, the program will marry with the 24 Sèvres website and app, allowing loyal in-store shoppers to seamlessly transfer online – as well as giving them an incentive to do so.</p> <p><img src="https://assets.econsultancy.com/images/0008/7175/Loyalty_Program.JPG" alt="" width="760" height="499"></p> <h3>Targeting a niche consumer</h3> <p>While Farfetch might target fans of unconventional or edgy style, Net-A-Porter tends to focus on those who value fashion as part of a wider lifestyle-orientated context. </p> <p>So, who is 24 Sèvres’ target market? Interestingly, the brand suggests that it is aimed at a more specific shopper, someone who has a real interest in the chic and effortless style of Parisian women, and who is typically between the ages of 28 to 45.</p> <p>Launching with just 150 brands, 24 Sèvres is definitely keen on promoting a more ‘curated’ approach, building on the idea that all items are hand-chosen by Parisian fashion experts.</p> <p>To celebrate the site’s launch, 24 Sèvres also commissioned a capsule collection of 77 items. The limited-edition pieces were designed by various local and international designers in collaboration with other high-profile names within the arts and music scene. For example, the jacket below is designed by Alice Balas, incorporating an illustration by French artist, Malika Favre.</p> <p><img src="https://assets.econsultancy.com/images/0008/7203/sevres.JPG" alt="" width="750" height="475"></p> <h3>Visually-led merchandising</h3> <p>This focus on Parisian style is reflected in the website’s design.</p> <p>The homepage is currently made up of two revolving ‘vitrines’ (a bit like a full-page carousel, in a cinemagraph style) – which depict two women looking into a shop window. Again, this mirrors the window displays in the original Le Bon Marché store, which are famously intricate and creative in design. </p> <p><img src="https://assets.econsultancy.com/images/0008/7178/24_Sevres_flyer.JPG" alt="" width="760" height="382"></p> <p>Unlike Net-A-Porter in particular, it is clear that 24 Sèvres is focusing more on visual elements than editorial or content-driven features. Combined with delightful and intricate animations elsewhere, the result is a rather slick and playful UX. </p> <p><iframe src="https://www.youtube.com/embed/gotsVqMYF04?wmode=transparent" width="854" height="480"></iframe></p> <p>On the site, product pages are characterised by large imagery with minimal text, while the ‘Explore’ section uses imagery and video to bring curated collections to life. </p> <p>While it is still unclear how 24 Sèvres will expand its marketing, its launch involved an innovative social campaign. Once again aligning with its visual strategy, it used Instagram to build hype and intrigue in the run up to the site’s launch, creating multiple accounts to highlight 24 Parisian locations in conjunction with pieces from the capsule collection.</p> <p><img src="https://assets.econsultancy.com/images/0008/7176/24_sevres_insta.JPG" alt="" width="690" height="545"></p> <h3>Technology to build relationships</h3> <p>The biggest challenge facing luxury ecommerce retailers is the ability to connect with shoppers on a personal level. Online shopping lacks tangible elements important for decision-making, such as trying on products or asking questions.</p> <p>While it might sound contradictory, 24 Sèvres uses technology in order to make up for this absence, building relationships with users via interactive customer service technology.</p> <p>The 24 Sèvres app includes a video chat feature that allows users to talk to a stylist based in Paris. This means that customers can get the same service as in-store – perhaps even better, due to the focused nature of a video call.</p> <p><img src="https://assets.econsultancy.com/images/0008/7179/video_chat.JPG" alt="" width="324" height="579"></p> <p>Facebook users can also interact with a chatbot that gives style and shopping advice. While the latter is yet another basic decision-tree based bot, it is a little more innovative than other retail examples. This is because the bot helps to inform a personalised email geared around individual style preferences.</p> <p><img src="https://assets.econsultancy.com/images/0008/7177/24_Sevres_bot.JPG" alt="" width="650" height="532"></p> <p>This kind of technology offers customers a more bespoke service, giving people the chance to go beyond the one-way online shopping experience and connect with the brand on a meaningful level.</p> <p>The email from your own 'personal shopper' includes personalisation techniques such as conversational language, addressing the recipient by name, and further ways to interact.</p> <p><img src="https://assets.econsultancy.com/images/0008/7180/Personal_shopper_advice.JPG" alt="" width="530" height="719"></p> <h3>In conclusion...</h3> <p>In the crowded and highly competitive luxury ecommerce market, 24 Sèvres is certainly one to watch. While it might lack the large and varied selection of brands found on other sites, this is actually more of a positive than a negative, helping to emphasise the appeal of its curatorial approach.</p> <p>In future, it will need to build on this, providing value for loyal customers with yet more capsule collections and creative collaborations. </p> <p>In the meantime, its international distribution model and innovative customer service features look set to satisfy global shoppers looking for a slice of Parisian style. Where Style.com failed – mainly with an inability to differentiate itself from its competitors – perhaps 24 Sèvres can truly succeed. </p> <p><em><strong>Related reading:</strong></em></p> <ul> <li><em><a href="https://econsultancy.com/blog/67439-how-creative-seo-can-deliver-big-wins-for-luxury-fashion-retailers/" target="_blank">How creative SEO can deliver big wins for luxury fashion retailers</a></em></li> <li><em><a href="https://econsultancy.com/blog/68603-five-ways-luxury-brands-attempt-to-increase-conversions-online/" target="_blank">Five ways luxury brands attempt to increase conversions online</a></em></li> </ul>