Accelerating Online Growth Visualising the Digital Shelf 1
Matt Foster 9 Years with Ascential Plc, the leading data information business focused on digital commerce. Digital Shelf expert focused on providing actionable insight and advice to help top tier global brands grow sales and presence online through content optimisation, eSEO and media strategy. Experience across the retail industry with roles in Sales, digital and consulting with global brands such as adidas, Unilever, Danone & Beiersdorf.
Why eCommerce is your #1 growth channel. 3
Globally, online sales of Apparel products are predicted to grow by roughly $204billion in 5 years. You need to ensure your share of this growth! 35% Increase 2020 2025 $578 Billion $204 bn $782 Billion
YOUR NEW DIGITAL LANDSCAPE adds 39% more Covid-19 Steeply Accelerates Online Sales new customers in April Nike sees 106% (businessoffashion.com, April 2020) 93% increase Saw it’s activewear sales double in the online sales up by 157% in Q2 2020 YOY online growth four months In demand, especially for loungewear and Q2 2020 through June 30 versus the activewear Adidas Annual report 2020 same time last year (Retail Burn, June 2020) (fashionatingworld.com, July 2020) (CNBC, Sept 2020) Exercise bands surge +725% as consumers turn to at-home online sales workouts in up 194% in Q2 Germany (CNBC, Sept 2020) (Criteo, 2020) 5 Drapers Digital Festival
A New Digital Landscape eCommerce capitalizes on the decline of in-store shopping eCommerce Growth In store Sales 15% 11% *in the UK activewear market 6 Drapers Digital Festival
COVID-19 Impact: One in four is now shopping more online “ I’m shopping more often online now than before, because of ” COVID-19 Note : n = 2,310 (US) and 2,229 (UK) internet users aged 16–64. Low income is <$32k, high income is >$85,000. Includes grocery shopping. Source : GlobalWebIndex 7 Drapers Digital Festival
However, stores will still be the majority of revenue, so why should you prioritise digital commerce? Drapers Digital Festival 8
Because winning in-store requires winning online first THE RETAIL CHALLENGER DIGITAL LEADERSHIP SHELF IS SHRINKING COMPETITION IS DECIDING IS RISING Drapers Digital Festival 9
voice-assisted shelf physical shelf digital shelf mobile shelf 1 SKU 200+ SKUs 20+ SKUs 4+ SKUs
Carbon38’s Katie Warner Johnson: Why Stitch Fix Is the Perfect Clothing How Sustainable Activewear Sensation We Are ‘We’ve rebranded the idea of what a retailer is’ Tala Broke The Internet Subscription to Keep Your Shopping Habits in Check carbon38.com creativeimpact.group glamour.com
From Promoters To Trend Setters – Fashion Influencers Are Going Viral iknockfashion.com August 2019 Online sellers How Gymshark must adjust to mastered the new way Instagram to consumers are drive instant shopping sales Forbes marketingweek.com June 2020 October 2018 12
How bad are out of stock issues for your brand? 13
Long-Term Damage of Stock Issues
Long-Term Damage of Stock Issues Between w/c March 1 and March 15 88% Overall Sales 25% Manufacturer B Market Share 16% Manufacturer A Market Share 15
But what does that mean for your customers? 16
Virtually 100% of brands faced Out of Stock Issues over Covid-19 Over half of shoppers found a new brand to buy instead
What happens when you go out of stock? Being Out of Stock has consequences for brands, categories and retailers Shoppers Will; + Switch brands + Substitute variant + Cancel/Delay Purchase + Switch online store + Switch channel to physical store 18 Drapers Digital Festival
As retailers grappled with out-of-stocks, research found that 75% of consumers opted to shop alternative brands Retail Dive 2020
OPTIMISING THE DIGITAL SHELF IS CRITICAL TO SALES^ Availability Traffic Conversion Sales & Share Availability Content Accuracy Promotions 22% sales loss per week for every 31% uplift in sales for each week 6% sales increase per week per day day that a SKU is Out of Stock SKU is content compliant of promo offer Search Reviews 21% sales increase moving from 5% sales increase per 10 additional 20 th to 10 th position reviews 9% sales increase per +0.5 star rating 20
How we helped a sporting goods brand CASE STUDY CHALLENGE SOLUTION OUTCOME Gaining Visibility of Edge Digital Shelf Daily Helped drive global full range of SKUs Visibility across both double-digit % growth across multiple own brand and YOY across Digital Digital Retail competitor products at Retail partners, Partners Size level across changing relationship Availability, Traffic, and with retailers from Conversion metrics reactive to proactive.
Clients have grown sales 21% faster vs. their competition who do not use our services* D E M Y S T I F Y 22
If you would like to find out more about how we can support you accelerate your online growth Reach out directly on email or via the event hub Matt.Foster@ascential.com D E M Y S T I F Y 23
Thank You Matt Foster
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