Internet Retailer
One in four high street shoppers buy online instead
One in four high street shoppers who leaves a store empty-handed completes their purchase on the internet instead.
That’s the findings of new research carried out by retail consultancy Envirosell and RichRelevance. Researchers quizzed shoppers coming out of London shops including Marks & Spencer, Debenhams, Primark and BhS, and find that almost half left a shop without buying.
But of those who didn’t buy, a quarter planned to go online to continue shopping for the product.
A similar survey in New York produced identical results in this area.
But the two differed in that New Yorkers were more likely to go onto the internet to research products. A third of London shoppers said they did research items online. But 85% of New Yorkers said they had already compared prices online before going to the store.
Envirosell founder and chief executive Paco Underhill said: “Retailers in the UK are starting to face the same challenges as their US counterparts. In the 20th century, marketers and merchandisers determined what the consumer would buy. The growth of the Internet has meant that the consumer is now not only more empowered, but often three or four steps ahead.”
David Seinger, chief executive of RichRelevance, which provides dynamic e-commerce personalisation, said: “In the last few years, consumers have drastically changed the way they shop.
“Multichannel retailing is still in its infancy, but retailers need to ensure that they can accommodate complex customer behaviour no matter where customers interact with them – whether online, in store, via a mobile app or over a phone.”
Related newsOnline retailers make awards shortlist
Online retailers are among the finalists in the National Business Awards, announced this week.
Naked Wines, which sells UK consumers wines direct from the vineyard, has been shortlisted in the Orange Innovation Award while Cheapflights, the airline ticket company, is shortlisted both for Business Link Growth Strategy of the Year and for the 3i Private Business of the Year.
Online short-term finance company Wonga.com is listed in the BlackBerry Customer Focus Award category.
A spokeswoman for Naked Wines said the company was “chuffed” to appear on the list just 18 months after launch.
Meanwhile e-commerce supplier companies also appear in the shortlists.
Internet marketing company e-mphasis is listed for the Excellence in Marketing award, hosting company Racklisted is shortlisted for employer of the year. Nick Ogden, chief executive of voice payment company Voice Commerce is shortlisted for Entrepreneur of the Year, along with Warren Cowan of Greenlight and Marcus Simmons of online and advertising company iKnow-UK.
Make it Cheaper, the comparison website for businesses is listed in the Santander small to medium sized business of the year category, along with multichannel car hire firm Easi-Drive. Retail Decisions, the payment and fraud solutions company, is shortlisted in the Grant Thornton Mid-Cap Business of the Year category.
Elsewhere the Internet Watch Foundation is listed in the Better Regulation Award.
Related newsGuest comment: While supplies last
by Kara Trivunovic
These days, everyone is looking for a great bargain, and why not? The world of online shopping has made it easier than ever to comparison shop. Plus, it’s immediate and completely accessible. Even in shaky economic times, consumers are looking to spend – they just want to get more for their money. Factor in the rise of member-based, limited-time, designer sales sites, and shoppers are in virtual shopping heaven. Confessions of an online shopaholic may just be the next box office hit!
Retailers have seen success in offering exclusive designer sales for years, much like how H&M experienced overnight successes when designers such as Jimmy Choo, Comme Des Garçons and Stella McCartney ran their exclusive sales in conjunction with the store. Shoppers are desperate for the latest designers but at knock off prices. And, if they don’t have to face the crowds of men and women sifting through racks and piles – then even better. Imagine being able to pick through all those amazing offers from the comfort of you couch. Sign me up!
Online shopping and e-commerce is a proven and successful channel for driving revenue for many retailers and isn’t fading any time soon, but how can retailers offer the same kind of bargain deals on only a select number of garments? Well, when they’re gone, they’re gone and the customers know it. They have to act fast to get the latest deal. Talk about creating urgency within your marketing message. What’s even more evolutionary is that the sense of urgency isn’t just a one time and done instance, rather companies like Hautelook, Gilt Groupe, Ideeli and Rue La La (to name a few) have turned it into an entire business model. It gives “while supplies last” a whole new meaning (and sense of urgency).
Previously, retailers of this nature have been challenged by serious lag times in email distribution, which directly impacted customer satisfaction. For example, if the sales alert arrived to the inbox for some customers at 10am and for others at 11am or 12pm – some of the much desired inventory could already be gone, limiting the equality for consumers to gain access to the inventory. Some of these retailers have found a way to get these offers and sales notices to their clients faster, which means more real-time traffic to the site, and greater customer satisfaction, leveraging burst email technology. This method of email distribution enables companies to deliver millions of emails within a five-minute time frame, providing customers an equal opportunity to enter these limited-time sales events.
Hautelook is one such sample sales site that is taking advantage of this technology. A US-based fashion site that hosts up to 12 sales daily lasting 48-72 hours each, Hautelook recently deployed burst technology to manage all of its 60-80% off designer merchandise sales. Each of the 2+ million customers receive a unique and personalised email, based on their shopping behavior and email preferences, and that experience is delivered for each of them within the same 5-minute window. This gives customers equal access to the website’s sales.
In order to achieve this level of speed, volume and personalisation, HauteLook had to migrate from an outsourced email service provider to a dedicated email solution from StrongMail that could directly connect to their customer databases. This direct connection eliminates the need to pull the lists and import them into their email system prior to sending a campaign. Instead, the email campaign is dynamically generated on the fly using the latest customer data to ensure relevancy and streamline the entire process.
Going with a dedicated solution also ensures that HauteLook always has the technical resources required to send this volume of customised messages in the required timeframe. Because most email service providers have their clients running on a shared email infrastructure, there’s no guarantee that sufficient resources will be available if other clients are sending high-volume campaigns at the same time. HauteLook’s dedicated solution solves this problem, while also providing the scalability to accommodate their rapid growth.
The necessity for such technology came at the demand of the consumer, which further proves that the brands no longer control or drive the marketing experience. Consumers know there has been a massive swing in power here, and they are taking full advantage (as well they should). Heed what your customers are saying – they are saying it for a reason. Had Hautelook not taken their customer feedback seriously and subsequently found a solution to support the need – they might not have become the 2+ million member strong retailer they are today.
So what does all of this mean? It goes beyond burst technology and the ability to deliver email quickly. This is about fielding, evaluating and applying consumer insights and feedback. They know you can do it and expect that you do. As the consumer gets more and more sophisticated in the ways of email messaging and online marketing capabilities, the programmes and experiences we offer them must correlate – otherwise it will be the marketer that gets left behind and your customers may just go riding off in to the sunset with a competitor.
Kara Trivunovic is senior director, strategic services at StrongMail
Related newsFirebox appoints new MD
Christian Robinson, managing director of online gift seller Firebox.com, is stepping down after 10 years. Taking over the role is Paul Zimmerman, previously head of business development at Play.com.
Robinson is moving to work with his wife, Tiffany London, on her designer maternity label Tiffany Rose and will also stay on the Firebox board in an advisory role.
Robinson said: “I have thoroughly enjoyed the past 10 years helping build the Firebox.com business and feel very lucky to have had the privilege of working alongside such a talented team. I am confident that now is the right time to appoint a successor to help lead our business through its next phase of growth and am delighted that Paul has accepted our offer to join the company as our new MD.
“Paul is the perfect fit for us and his wealth of experience within e-commerce will be invaluable to Firebox.com and help accelerate our growth even further.”
Zimmerman, whose 11 years e-commerce experience also includes four years as head of Amazon.com’s music business unit, said: “I have been a customer and a huge fan of Firebox for many years – it’s such a fun, dynamic brand that is truly passionate about its customers. I am looking forward to working with the Firebox team and developing the brand as it continues to thrive.”
Michael Smith and Tom Boardman founded Firebox.com in 1998. It now sells via catalogue and online, and has moved out of its core market of toys for boys to focus on homewares and a broader gift market. That paid off when the company posted record results in the year to January 31 2010, with sales revenue of £12.7m and £1m profit before tax.
Michael Acton Smith, co-founder and chairman of Firebox, said: “Christian has been much more than a colleague over the years – he’s effectively been the third founder of Firebox and also a great friend to Tom and myself. His role will not be an easy one to fill, yet I believe Paul’s experience at two of the UK’s largest and most well known online retailers will be a fantastic asset to Firebox.”
Related newsPast Times notches up 300% improvement in despatch rate
Past Times says it has seen its despatch rate rise by at least 300% since introducing a new carrier management solution.
The company, which sells gifts inspired by the past, says automating the process has cut down on errors as well as increasing the speed at which parcels are sent out.
Adrian Spence, head of e-commerce at the company, said: “The despatch rate has increased dramatically from our old manual process by at least 300% and any shipping errors have been eliminated.”
Past Times has introduced a new multi-carrier management platform from MetaPack which helps to manage their three carriers.
The platform sits between the company’s Venda order management system and their carriers, automatically translating orders into deliveries. At the same time it updates customers via email on the whereabouts of their goods.
“Being able to view the status of deliveries and tracking numbers in one system results in a better service to the customer who do contact us.”
As a result Past Times is now adding more delivery options for customers, as it looks to grow its e-commerce business.
Related newsFail to deliver customer service at Christmas and miss out on sales
UK retailers who cannot handle the Christmas rise in demand for customer service risk losing their share of a market put at £5.5bn, according to software company Eptica.
That rise, says Eptica, which specialises in customer interaction solutions, could be by as much as 400% at a time when sales could potentially rise by 5% at the same time.
It points to the trend for contact centres to be inundated with customer enquiries in the run up to the festive season. The time taken answering many, similar, questions (FAQs) can lead to slow service and frustrated customers at what is the busiest season of the year for many retailers.
In the run up to Christmas, it says, retailers can see customer enquiries rise by four times, with more than twice as many inbound emails as usual. And the spike in customer enquiries can start building as early as September.
Eptica’s research shows that by reducing inbound FAQs and responding to customer enquiries more efficiently, retailers can increase sales by 5% on average.
Dee Roche, European marketing director at Eptica, said: “We looked at before and after scenarios at 280 organisations across a wide range of sectors and found a similar uplift in sales. This is achieved by businesses using increases in efficiency as an opportunity to redeploy customer service resources to sales conversion activity and on delivering high quality service and advice to help potential purchasers.
“These benefits can only be realised by diverting low value questions away from customer service agents.”
Related newsPay4Later launches e-commerce credit
Online merchants can now offer customers credit at their checkouts using a new Pay4Later system. Pay4Later believes this is the first time retail finance has been available in the mainstream UK e-commerce market.
It brings to the internet credit options that have long been available in the high street.
Online, shoppers who choose to pay using a credit option selects that option at the checkout. They then confirm they meet the lender criteria before asked to fill in a credit application form. The customer signs the agreement online and the application is sent to the company’s network of partner lenders, who typically respond in between five and 10 seconds.
The risk of each application is analysed by CreditSentry risk management software integrated in the back office.
Credit options include buy now, pay later, instant credit and classic credit.
Scott Law, chief executive of Pay4Later, said: “Point of sale credit has been around for decades on the high street. Retailers know that offering customers credit at the point of sale is a proven way to increase sales and average order values.
“With Pay4Later online retailers can now discover these potent benefits for themselves.”
The service charges a monthly fee as well as a fee for each successful credit request.
Related newsAmazon banks $1billion in sales via mobile in past 12 months
For any one in two minds about mobile retail, take a look at Amazon: during the past 12 months the company has generated $1billion from mobile purchases. The news comes just weeks after eBay revealed that it is looking to make $1.5billion through mobile in 2010.
Amazon has also revealed that its Kindle e-books store now sells more electronic books than the company sells real books. However, Amazon has not revealed how much of the $1billion in mobile sales come from Kindle. Growth has also been dramatic since the company added its one-click payment mechanic to its mobile offering at the end of 2008.
“We’re seeing rapid growth in Kindle, Amazon Web Services, third-party sales, and retail,” says Amazon CEO Jeff Bezos. “We’re also encouraged by what we see in mobile. In the last twelve months, customers around the world have ordered more than $1 billion of products from Amazon using a mobile device.
“The leading mobile commerce device today is the smartphone, but we’re excited by the potential of the new category of wireless tablet computers,” he continues. “Over time, tablet computers could become a meaningful additional driver for our business.”
The fact that eBay and now Amazon are now reporting such stellar mobile sales provides an interesting counterpoint to M-Retailing’s own research, carried out with marketing agency Sponge over June, which found that 40% of retailers we questioned have no plans to use mobile in the next 24 months. Obviously, mobile appears to be an easy fit with ‘online’ businesses such as eBay and Amazon, but we hope that it also demonstrates that there is a growing public thirst for mobile commerce.
Related newsShoppingvouchers.co.uk visitors generate £1 each for UK retailers, claims the company
Mobile-based money saving voucher company www.shoppingvouchers.co.uk has revealed that, according to its figures, every customer who visits the site is generating £1 for UK retail sales.
Launched in July 2009, by lead generation company, 3Convert, www.shoppingvouchers.co.uk is one of the UK’s fastest growing money saving websites. It has nearly 250,000 members, 1,000 new members joining every day and 25,000 page impressions a day.
Tom Packer, company founder, said, “It’s fantastic that our site is positively contributing to UK retail sales. To see that every visitor is effectively worth £1 in retail sales is a very interesting. We had expected this figure to be much lower but actually found that month-on-month the figure is increasing and in June it was nearer to £1.50 for every visitor.”
He added, “There is no denying that shopping habits have really changed due to the recession and consumers are now very price conscious. Once people realise they really can save money by using the codes on www.shoppingvouchers.co.uk, they check us out before making a purchasing and keep using the discounts we offer and in turn make money for our retail partners.”
Rather than charging companies a monthly fee for listing their discounts, the site simply asks for a reciprocal link making this a free marketing tool and revenue generating opportunity.
Related news53% of consumers want to use mobile to buy stuff, says MEF as it launches US M-commerce Guide
More than half of global consumers “have a propensity to use their mobiles for financial transactions”, suggests a study by the Mobile Entertainment Forum (MEF), published as the organization rolls out its US M-commerce Guide.
Rimma Perelmuter, Executive Director of MEF, says: “M-Commerce is not a new phenomenon for our members. The $36bn global mobile media industry is largely built on micropayments and MEF’s M-Commerce Initiative substantially expands this opportunity to the retail and content industries with today’s launch of our M-Commerce Guide. It is a comprehensive resource that brings together expert content and analysis showing all the different ways that the mobile device can be used to enable commerce for content, services and products consumed both on and off the device. The MEF member authored Guide contains essential case studies designed to help brands, content producers and retailers demystify, simplify and monetize the mobile commerce landscape.”
The Guide is available for immediate download from the MEF website and copies will be made available at today’s Retail Mobile Executive Summit taking place in San Francisco.
The mobile device is changing the way consumers pay for content, goods and services. To tackle the complexities of driving revenue through the mobile device, the Guide breaks down the topic into manageable stages. Channels such as Mobile Storefronts, Application Stores, SMS Text Messaging and Quick Response Codes are reviewed, as well as transactional-related options including Carrier Billing, Mobile Wallet-Based Remote Payments and Vouchers & Coupons.
“MEF has been an industry partner in revenue generation for over a decade and has led the charge globally, establishing business policy, business models and best practices for the mobile entertainment industry,” said Gary Schwartz, CEO of Impact Mobile and Chairman of MEF North America. “The MEF Guide to M-Commerce signals an evolution in mobile business models and presents a snapshot of the various commerce options to help take the industry to the next level. MEF is continuing its mission to help the content owners and brands leverage the mobile phone to drive new revenues.”
RILA, known as a critical partner and effective champion for the retail industry, recently partnered with MEF in order to educate and provide guidance about M-Commerce to their retail members. Casey Chroust, RILA Executive Vice President for Retail Operations, commented: “Serving our members is our primary focus and we believe now is the time for retailers to meet their customers’ growing demand for shopping on the go. M-Commerce essentially provides retailers a wealth of opportunities to motivate and enable their customers to purchase goods and services whenever and wherever. This guide is a valuable resource for brands and retailers to start evaluating their options.”
The guide has been authored with the leadership and invaluable support of the following MEF member companies: 2ergo, ADObjects, Billing Revolution, Boku, ngage2mobile, Impact Mobile, Inmar, KPMG, mBlox, Motorola, Netbiscuits, Nokia, Polar Mobile, Playphone, RIM, Samsung, Sybase365, Synergy World, T-Mobile and Zong.
The Guide has been published with the kind support and sponsorship of Impact Mobile, Inmar, KPMG and mBlox.
Related news- Mobile Entertainment Forum US produces webinar and guidebook to foster better understanding of m-commerce in entertainment sector
- Best practice guide for m-commerce takes retailers beyond having just an ‘app for that’
- Consumers are ready for mobile marketing – and it all starts with text, finds Placecast study
eBay iPhone app downloaded 11million times
eBay’s iPhone app, which was launched earlier this year, has been downloaded 11 million times, says the company, making it the number one mobile retailer in the US. The figure was revealed during the announcement of the company’s Q2 earnings, which logged higher than expected profits of $530million on revenues of $2.2billion. The figures come just weeks after the company said that it expects to make $1.5billion from mobile in 2010.
eBay currently has a suite of 14 apps – though it hasn’t revealed download figures for the other 13 – and the company’s VP of mobile, Steve Yankovich, says the company is “intending to release a new app every five weeks”.
“We pick and choose what will move the needle, and then we do it fast, he says. ”Picking the right platform also has a huge effect on the bottom line: users of the iPad typically spend three or four times more in a shopping spree than iPhone users.”
Perhaps most interestingly for sellers, mobile use might be the saviour of auctions: last year when eBay released a mobile app alerting bidders on the state of auctions they were watching or bidding on, “sales shot up.” Yankovich says, “it was instant money.”
Related newsAdoption of m-commerce across Europe is as low as 2%, but growth will come, study shows
Adoption of mobile commerce in Europe remains low, with a mere 2% of adults across the continent reporting purchasing products from their mobiles and only 5% interested in doing so, according to new research from Forrester Research based on a survey of more than 14,000 European online adults.
Only 16% of online buyers have used their mobile phone for a shopping-related activity such as researching products, checking on the status of an order, or locating a nearby store to buy a specific product, says Forrester.
Currently, browsing for products and services is the most popular commerce-related activity on a mobile, but only 7% of online buyers do this. Online buyers also tend to use their mobile phone to check on the status of an order or locate a nearby store. Buying products from a mobile phone hasn’t taken off, as a mere 2% of European online buyers purchase products from their mobile phone and only 5% are actually interested in doing so.
Unsurprisingly, mobile-savvy users are more likely to engage in mobile commerce. For example, 23% of European iPhone users research products on their mobile phone at least monthly. Similarly, among mobile daily Internet users, one-third have already researched products/services using the mobile Internet, 20% have located a nearby store, and 18% have compared prices on a mobile device while in a shop. Even if this group is still niche, this gives a good indication of the potential of mobile commerce.
Italian and Swedish online buyers have warmed up the most to mobile commerce, followed by the UK. Those in France and Germany show the least interest – as backed up by eBay’s findings that UK consumers buy four times as much online than the French.
The study also finds that there is a huge disparity between the level of mobile technology different retailers are currently using in mobile. In addition to the SMS technology that many retailers have introduced or are considering introducing, some European retailers — like Tesco, Zara, and Albert Heijn — provide fully established mobile Web site options. Other European retailers — like La Redoute, Fnac, or Ocado — have mobile applications aimed at capturing orders via a mobile phone.
Forrester finds that European retailers have adopted mobile commerce strategy by three main routes: developing smartphone apps, optimizing their website for mobile traffic and using mobile as an in store tool.
According to the study, European retailers, travel operators, and price comparison sites are particularly keen on apps, as these allow customers to do online shopping and travel research including searches for products, prices, store locations, and sales information anywhere they go.5 Ocado was the first UK retailer to launch an iPhone app: Ocado on the Go users can shop for everything from food and drink to books and toys . Ocado’s iPhone app has proved to be rather successful, with 4.4% of all Ocado orders in February 2010 being taken through the iPhone edition of its system.6 Other applications offer checks on instore item availability as well as comparisons of online and local pricing. For example, fashion retailers Oasis and Net-A-Porter launched iPhone applications that enable customers to shop and complete transactions via their mobile devices.
With the Internet proving to be a strong growth channel for most retailers, many are redesigning Web sites in order to maximize the revenue potential of their online presence via mobile Web access. For example, UK grocer Marks & Spencer recently launched a version of its Web site designed specifically for mobile devices where mobile users can access the Web site through the original Marks & Spencer address (http://www.marksandspencer.com) without having to download any software or applications. Carrefour also launched m.carrefour.fr where users can see 360-degree product views, find instore promotions, check inventory, and order products.
Mobile service can also be used without performing any transaction — like as a price comparison or user review tool when the user is at the point of sale (POS). For example, Sephora brings the online content and experience into the store as well as the voice of the customer by urging customers to read reviews on their phones in-store by going to m.sephora.com (see Figure 5). This enables customers to access credible word of mouth on products and services from any location. Oasis launched a peer-to-peer SMS giftvoucher service allowing customers to purchase gift vouchers through its Web site to be sent to the mobile phones of friends and family and redeemed in-store. This technical development embraces the emerging mobile market and creates a road map for the future integration of online and in-store commerce. French price comparison site Touslesprix.com launched a mobile site in order to allow users to access its comparison features on a mobile in-store.
Despite the low penetration rate, Forrester analyst Thomas Husson argues that mobile presents a growing market opportunity. “Smartphone adoption in Europe is growing fast, which makes traffic to Web sites through mobile devices easier. European consumers are starting to show interest in mobile commerce activities, and many retailers across Europe— like La Redoute, Fnac, eBay, Amazon.com, Tesco, and Carrefour — are starting to improve their mobile Web sites and creating mobile applications for the iPhone.”
Related newsMandMDirect.com sees 6% sales conversion rate from mobile campaigns
Mobile commerce isn’t just about purchasing goods on a phone, it all starts with using mobile as a marketing tool – and it appears that, if you get the right and receptive audience, it can work. Online fashion and sports retailer MandMDirect.com has seen a 6% sales conversion rate from mobile promotional campaigns over the last four months. Text messages were sent each month to its active customer base, driving them to the website with various offers. 6% of customers receiving text messages from MandMDirect.com then went on to make a purchase.
The campaigns, created by mobile marketing agency Sponge, featured a wide range of offers where people were encouraged to buy products via discount codes that could be activated on the retailer’s website.
“The results we’ve seen since working with Sponge are further evidence of the growing importance of mobile in retail,” said Jonathan Jones, Head of UK Marketing at MandMDirect.com. “Our customer base wants the best deals but doesn’t want to spend ages looking for them – by using text messages we’re able to give them relevant and timely offers such as free delivery, ensuring they can take advantage of promotions as and when they happen.”
MandMDirect.com is now considering broadening its range of mobile promotional mechanics – testing a wider variety of offers, techniques and tactics to understand what best drives response – and extending its current mobile marketing programme to overseas territories.
“SMS broadcasts to intelligently derived segments of MandMDirect.com’s database have driven good response rates – and by response rates we mean people buying,” said Alex Meisl, Chairman of Sponge. “Mobile has proved to be the perfect tool to direct heavy volumes of traffic to the website.”
Related newsNet-a-porter.com launches mobile experience through iPad magazine app
Online luxury fashion retailer Net-a-porter.com has published the first edition of its eponymous magazine app for the iPad, which will let users shop direct from the pages of the magazine, watch video content of its clothes ‘in action’ on the runway and read interviews with leading designers. The app will also let users view high quality images of items, share product suggestions with family and friends and feedback about their shopping experience
Available for free from Apple’s App Store, the app lifts content from the company’s paper-based magazine and delivers it to as many as 3 million iPad owners in what the company sees as “a truly unique and inspiring way to shop the latest fashion”.
Ian Tansley, Net-a-porter.com’s VP of Ecommerce says: “We are using the latest web technologies – HTML5, CSS3 and Webkit – to deliver rich animation and touch-enabled content. Tablet technology allows us to deliver one step further on Natalie Massenet’s original idea for Net-a-porter.com – to create an interactive magazine to shop from.
“We have great ambitions for the Net-a-porter.com magazine app and recognize that tablet digital publishing is in its infancy and is an evolving landscape, which is why this is just our first edition,” he continues. “We have integrated user feedback opportunities within the app and are keen to work with our loyal customers around the world to shape this product into something they find compelling, inspiring and useful.”
Those of you lucky enough to have an iPad can download the Net-a-porter.com magazine app here
Related newsGUEST OPINION iPad and the future of retailing
Frank Lord, VP EMEA, ATG outlines why he believes the iPad will be the first of many devices to transform the UK retail sector
In the fast-paced world of technology, change happens at an extraordinary pace. Trend setting companies out there from Apple and Google to Microsoft are investing heavily in R&D bringing new products to market at phenomenal speed so any player looking to seriously capitalise on the innovations needs to have their finger firmly on the pulse.
This need for speed is especially acute in the retail space which was not only hit hard by the recession but is undergoing a period of transition as retailers embrace the internet and the world of online shopping.
However, retail is more than going into a shop, purchasing online or browsing from a Smartphone. It is about shopping anywhere, anytime, in the way that best suits the consumers needs, which is why launches like that of Apple’s iPad is going to radically change the way the retail sector embraces technology.
Like most new product releases from Apple, the iPad has generated a huge amount of interest from consumer and business users alike. The IT giant sold two million iPads within the first two months of its launch and judging from the sheer size of queues outside Apple stores across the country, the device has captured the imagination of the UK consumer.
Ignore the iPad at your peril
Sitting between the smartphone and laptop, the iPad gives users a new way to stay connected when on the go. Although some have dismissed the product as nothing more than an over-sized iPhone, reviews have been positive with many liking the ability to easily browse full-sized web pages. Indeed, many consumers have found it to be a pleasing device to use, the user interface with its large application icons and on-screen controls activated by the touch of a finger make it very easy to manage.
Organisations have been quick to capitalise on the opportunity this new product presents, current estimates claim that more than 5,000 apps have been specifically created for the iPad. This figure is expected to rise significantly in coming months as the UK market embraces the wealth of opportunities presented by the device.
For retailers, the iPad is set to put cross-channel strategies to test like never before so it is vital organisations prepare for the potential impact the device will have on UK retailing. Below are some key issues worth considering.
5 ways the iPad is set to shake-up the retail sector
1) A catalyst for mobile retailing
Mobile commerce is already hugely popular but some consumers have expressed a reluctance to shop using mobile devices because of the small screen size of devices. In a survey of 1,000 UK consumers conducted last year we found 29% would be more inclined to embrace mobile commerce if smart phone manufacturers offered devices with larger screens. The iPad addresses these concerns so those retailers that haven’t already embraced the mobile channel need to act fast if they are to make the most of the opportunities it presents.
2) Changing the in-store experience
The iPad is likely to have a significant impact on the ways in which retailers interact with consumers online but also has the potential to change interactions in-store. For instance, retailers may want to equip members of staff with iPads so that if a customer has a query about a product that isn’t in stock they can quickly find the information needed online while walking around the shop.
3) Keep consumers ‘appy
Although there’s an argument that creating an app specifically for the iPad is unnecessary since shoppers can access the complete web with ease, those that chose to go down the app route will enjoy many benefits. For instance, developing an iPad app means retailers can make use of the devices motion sensors to deliver an experience consumers won’t get on other platforms.
4) Demand for greater interactivity
Some retailers are making good use of video content online in a bid to offer a dynamic shopping experience but many will need to do more. With increasing numbers of people spending time online using the iPad, expectations of e-commerce sites are higher than ever so retailers that don’t make the mark are likely to lose market share to others.
5) A greater battle for attention
Retailers have long struggled to grab the attention of consumers while they browse online but with the iPad this challenge becomes even greater. Unlike a PC or even a laptop, consumers could be using the device in any location and doing many other activities at the same time such as watching TV or travelling. Retailers therefore need to ensure they offer a captivating and highly personalised shopping experience if they are to keep consumers coming back for more.
Commerce anywhere
Mobile technologies are playing a vital role in revitalising and expanding the retail space. The ability to shop on any device, browse stock availability and click through to purchase at the touch of a button make mobile and particularly the iPad, an incredibly compelling proposition.
The iPad has generated overwhelming interest all over the world and retailers need to make sure they are capitalising on the opportunities this device and many others like it, present. The technology has the potential to create a brand new way to sell to the consumer and we urge retailers to explore how they can integrate the device into the sales strategies to enhance customer service and in turn, transform the way in which we shop.
Related newsAccessorize to get dedicated site
Fashion accessories business Accessorize is to get its own dedicated website as the business expands its reach into Europe and the US.
Up to now Accessorize products haven been sold online through the website of its parent company Monsoon. But the new site follows fast growth in e-commerce and reflects Accessorize’s independent position on the high street.
The new site will be aimed at the US and European markets, as well as the UK. Reflecting this, it will be available in French, German and Danish as well as English.
Steve Back, chief commercial officer of Monsoon and Accessorize, said: “By creating an online experience similar to walking into an Accessorize store, the return on investment from the online opportunity is sizeable.”
The site will, like the Monsoon site, be hosted on Venda where features will include the use of social media, dynamic navigation and behavioural merchandising.
Back added: “Venda clearly understood how to translate high street retail into online and helped create a tailored solution to our specific requirements.”
Eric Abensur, chief executive of Venda, said: “Successful retailers such as Monsoon and Accessorize realize the importance of the evolving e-commerce channel for maximizing its commercial benefits. We are excited to be involved in the next stage of growth for the company as it expands its international customer focus.”
Related newsHMV launches into download market
HMV has launched into the music download market with its new HMV Digital site, competing in a market that already includes Apple’s iTunes.
The company sees digital as an important part of the diversification of both HMV and sister company Waterstones. The bookseller’s e-book store recently marked its millionth download, and now HMV has moved into digital download, thanks to its acquisition of 7digital.com.
Sarah Hughes, HMV’s head of online and digital, said: “We are delighted to launch a world class download store that reflects both HMV’s music retailing heritage and our strategy to be a broad-based entertainment brand.
“Our partners at 7Digital have built for us a significantly improved new site that looks great and has never been easier to use. With so many innovative and wonderful features, it offers a truly intuitive and engaging customer experience that I very much hope will lead to HMV becoming a bigger player in the burgeoning digital market.”
Related newsIMRG launches customer experience benchmarking
A new programme aimed at helping online retailers increase sales while reducing their costs has been launched by industry body IMRG.
The annual Index of Customer Experience measures internet sales from the customer’s point of view, from log on to delivery and after sales service.
Retailers can use the programme, managed by Rebelati, to measure their service against benchmarks for their sector.
IMRG managing director David Smith said: “In future the customer experience will be the key factor in winning and keeping customers. ICE provides a unique and consistent measure to help businesses manage and develop their own customers’ experience.”
Programme director Mark Turner said: “Positive experiences engender loyalty and recommendation; poor ones can ruin a brand’s reputation and lose companies market share at the speed of light in the world of social media.
“But the experience is governed by more than just the web site, it is also affected by the delivery process and any subsequent service inquiries the customer may have. ICE covers the entire cycle.”
Related newsOnline sale season set to peak tomorrow
Tomorrow is expected to be the busiest day of the summer sales for online retailers as internet sale-hunting reaches its peak. That’s the forecast from shopping comparison site Kelkoo UK.
It estimates some £1.3bn will be spent online over the course of the summer sale period in total, with the peak day tomorrow. In all, 33p of every £1 spent in the summer sales will be spent online.
“Online spending continues to fare well in the unstable economic climate,” says Bruce Fair, managing director of Kelkoo UK, “as consumers seek out the very best bargains and look to cash in on the convenience of no queues and a less stressful shopping experience.”
Opinion Matters quizzed 1,011 consumers for Kelkoo and found 44% of consumers planned to shop online for bargains this summer, spending an average of £36 each. Some 58% of consumers expect discounts of 45% or more in the sales, and 55% believe online summer sales offer better bargains than those held on the high street.
“The fact that the busiest online shopping day looks set to hit more than a month after many of the summer sales began shows how shoppers are increasingly prepared to bide their time and wait for the right price,” says Fair.
“The recent budget may have put the reins on unjustified spending, but it has also highlighted the need to snap up deals when they become available. Much of the uplift seen during the summer months could also be attributed to the impending 20% VAT increase as people look to make the most of lower prices before the higher rate of tax kicks in on January 4.”
According to the survey, 62% think web sales are less hassle than those on the high street while 53% believe they offer more choice and better discounts. Some 51% believe they ultimately have better choice of stock and products.
Related newsHawes & Curtis first to use biorobotic virtual fitting room
Online shoppers at UK retailer Hawes & Curtis’ website will soon be able to try on clothes in a virtual fitting room, in what is thought to be a world-first service.
Estonian biorobotics company Fits.me has pioneered an online service that allows shoppers to see how the clothes would look on them, based on their own exact measurements. The service uses robotic mannequins that can simulate nearly 100,000 different body shapes.
Customers enter their height, chest, waistline, arm-length and select a torso type in order to produce photographs of how the clothing would look on them.
Now Fits.me has now teamed up with Jermyn Street business suit and luxury shirt seller Hawes & Curtis to launch the service to the public for the first time.
“This is an exciting e-commerce development that will alter the way our consumers shop,” said Touker Suleyman, owner of Hawes & Curtis.
Fits.me believes a key impact of the new technology, which it says removes the hurdle of shoppers wanting to try clothes on before they buy, will be to reduce the rate of returns.
Heikki Haldre, chief executive and co-founder of Fits.me, said “The initial research trials we’ve conducted with our virtual fitting room have a proven a 28% reduction in online apparel returns, while increasing sales three times over. Retailers can sell more with fewer returns, which directly impacts their profit and loss.”
Currently, it says, 9% of clothing is sold over the internet, a market currently worth $31bn.
Fits.me was founded in 2009 and is based in Estonia and London. It is backed by the Estonian Development Fund and Enterprise Estonia.
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