From Frenemies to Best Friends turning the threat of brands going direct into a win-win by putting the customer first June 18, 2019 Rich Siefert, Sr. Consultant, FitForCommerce CONFIDENTIAL
Today’s Agenda 1. Today’s Retail Reality 2. What does that mean for you? 3. How do you compete? 4. Q&A
is a specialized consultancy helping digital businesses Curated digital innovation accelerate growth. Trusted tracking and applied market advisor to hundreds of global advice to businesses in CDO- companies. on-demand service. is a philosophy and our Benchmarking of Top 120 methodology based on an Retailers for Omnichannel investment and due diligence Innovation (Store, Web, We are the mindset for decision-making Mobile, Cross-channel). help. and execution to ensure success. 3
Trusted Advisor to over 500 Brands and Retailers 4 4
Trusted Advisor to over 500 Brands and Retailers 113 18 1500+ 500+ 600+ 400+ 1600+ IR1000 clients countries served engagements retailer, brand, B2B, combined years of vendor selection thought leadership manufacturer clients experience across 25 helping clients grow projects pages published verticals 5 5
Today’s Retail Reality
Shopper Expectatio ions are at an All ll Tim ime Hig igh • Any time, any way, anywhere is today’s shopping mantra • Shoppers insist on a superior, seamless and convenient experience • Your competitor is only a click away • Amazon is eating up market share • New technologies redefine what is possible
Shoppers are Digital
Outdoor Shoppers Are Digital Too 70% of outdoor consumers engage with tech for something outdoor related - gathering product information, interacting socially or discovering something new. 75% of outdoor consumers shop with intent and educate themselves prior to making a purchase. 80% shop outdoor retailer sites every two months or more often.
How Outdoor Consumers Use Tech to Shop Research/Discovery Learn/Track Socialize 22% to read reviews of outdoor 20% to discover new places to engage 21% to share photos or videos of products in their outdoor activity outdoor activities 21% to compare prices of 19% for inspiration for new outdoor 20% to discover new places to outdoor products activities engage in their outdoor activities 20% for inspiration for new 18% to learn about a new outdoor 18% to find like-minded people outdoor products activity who share their interest in a specific 19% to discover new outdoor 14% to feel like they’re experiencing outdoor activity 17% to share details about their brands the outdoors 19% to discover new outdoor 13% to track the performance of outdoor activities retailers/places to shop 14 % to feel like part of an outdoor competitors in outdoor activities 12% to track their performance in community outdoor activities Source: Path to Purchase Report, Outdoor Industry Association
Brands are Dig igital
Brands’ also face increased competition fr from retailers 1 out of every 4 products sold in the US is private label or store brands Driven by the need to differentiate rather than price Source: Private Label Manufacturers Association
The Elephant in the Room… • Amazon is doubling down on private label and exclusive brand strategies • Amazon now accounts for 49% of all US ecommerce sales…. • Most digital shoppers start their shopping journey on Amazon • This year, more than 50% of US households will be Amazon Prime members
What does this mean to you? Do you ever feel like being a retailer has become an extreme sport?
You constantly have to navigate increased competition from all angles
Brands are Getting Closer to Customers…
But They Still Need You! • 90% of retail sales still happens in physical stores • Only 1% of site visitors purchase on brand sites • 39% of outdoor consumers shopped both online and at brick-and-mortar locations for outdoor gear. Only 12% of outdoor consumers shopped exclusively online. • While there are many channel opportunities, specialty brands still want to be with retailers who can tell their story and add to their authority … and respect MAP pricing • Local retailers provide solutions for immediate gratification … compete with same day delivery Source: Path to Purchase Report, Outdoor Industry Association
How Do You Compete?
The Customer Always Comes First
Understand the Customer Jo Journey and Tailor the Shopping Experience Conducts online research for camping vacation, compares features of camping tools and gear DISCOVERY Visits store to see gear in person and get advice from CONSIDERATION associate experts Considers buying online for convenient ship to home PURCHASE Looks for how to videos and relevant camping tips USE/SERVICE Shares camping experiences with friends and on social media LOYALTY
Play to Your Strengths • Location, Location, Location • Associates as experts • Existing customer relationships
Unlock the Power of f Your Stores – Experience! • Host in-store events and classes • Provide services and testing equipment to guide purchase decisions • Arrange clinics (ski, golf, hiking, tennis, etc.) and other group activities for testing equipment and learning different sports. • Offer rental to introduce novices to a new sport or allow experts to try new equipment before purchasing BRANDS + RETAILERS: • Include brands in events as experts, sponsors, participants • Leverage brand partners to educate staff
Unlock the Power of f Your Stores – The Power of Now • Implement buy online/pick up in- store for convenience and to drive in-store traffic for possible upsell • Same-day delivery … to store areas BRANDS + RETAILERS: • Make sure you are on brand website store locators … with detailed, accurate information
Associates as Experts • Hire associates who are already outdoor enthusiasts • Train associates to provide expert advice on products • Encourage associates to create ongoing relationships with customers • Enable associates to share their experiences with other customers (e.g. UGC on websites) • Leverage expert associates to lead classes, talk, in- store or offsite BRANDS + RETAILERS: • Brand sites, content and team members provide invaluable resources for training associates • Invite brands to provide educational product showcases
Deliver Personalized In Interactions • Unlock the power of your data - use what you already know about your customer and start capturing what you don’t know! • Make sure you have the right tech to easily capture, analyze and leverage data • Create relevant and personalized marketing programs (email, promotions, loyalty) to drive traffic and sales BRANDS + RETAILERS: • Selectively share what you know about your customers with your key brand partners
Embrace Digital • Expand your reach – online, customers can find you from anywhere, at any time • Engage with shoppers during discovery/research • Extend your product assortment • Develop the digital approach that makes sense for you and your customers – ecommerce, advertising, social, marketplaces… BRANDS + RETAILERS: • Extend your product assortment with brand’s DTC capabilities to Drop Ship
Embrace Digital In In-Store Too! • Support endless aisle • Empower sales associates with tools to provide better in-store experiences
Unlock the Power of f Content • Use content to guide shoppers and inform purchase decisions • Tell your story and showcase your expertise through use and compelling content (how to’s , tips, videos) • Foster community – encourage customers to share experiences, reviews and photos BRANDS + RETAILERS: • Leverage brand’s content to make sure customers get all the details they need
Go Local and Embrace Mobile • Make it easy for shoppers to find you on the go • Invest in local product listing ads to drive store traffic • Leverage geo-targeted ads for key brands • Claim and own your store to make sure critical information is accurate • Reputation management … Yelp, Google… • Optimize your site for mobile devices
Reeling It In! • Never forget – brands still need you! • Put the shopper at the core of everything you do • Understand the customer journey to deliver differentiated experiences at every touchpoint • Unlock the power of your stores with differentiated experiences and value-added services • Embrace digital – commerce and marketing
THANK YOU! Questions??? Rich Siefert| transformation@fitforcommerce.com 31
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