Disruption, Innovation, Collaboration, Social Business, Enterprise 2.0…all of these terms are associated with the ways in which brands are coming terms when developing new e-commerce models. To gain insight, cut through the jargon and find out the true impact of digital commerce on retail, we turned to L2 Think Tank’s summit on Commerce: E, F and M held last month in New York.
James Edis, a professor at NYU Stern and the VP, Emerging Technologies Group at HBO, shared his insights on how social and digital trends are impacting, and disrupting, eCommerce for prestige, luxury brands. Here are nine ways statistics that may surprise you that are vital to luxury brand’s success in the online space.
- It takes 93 percent of specialty retailers over three days to ship new orders. Over 50 percent take more than five (5) days to credit returns. Bluefly takes three weeks, which may be a sign of financial trouble.
- Retailers think that on-site search, online promotions and website utility are most important things to consumers. That’s not true, consumers care about transparency in inventory, tracking order progress and they also want in-store pickup options. Nordstrom, Coach, Blue Nile and Zara are offering showrooms and in-store pick up options, an extremely complex process to achieve successfully.
- Frightening Mobile Stats: One in ten people have their phone within reach of the shower; 33 percent of millennials have their phone next to their bed and check Facebook and email before they get out of bed. Mobile and m-commerce are progressing so rapidly that retailers struggle to catch up, mobile is going from $0 to $50 billion in the next 36 months. Amazon holds 37 percent of the market share.
- Retailers are now getting more traffic from iPads than iPhones and Android. Consumers are 20 percent more likely to buy off a tablet than a mobile site.
- One in two households with incomes over $150,000 will have an iPad. They are comfortable making high price purchases on their tablet.
- Customers would rather be served by a non-organic point of purchase. Estee Lauder showed that customers that interacted with the Clinique iPad app are more likely to buy and convert to purchase than talking to someone behind a counter.
- Connecting online to offline is the biggest hurdle for retailers. Macy’s and Banana Republic allow you to book online style appointments and go in-store for consultation. Oscar De La Renta offers customers the option to have stylist review their purchases before it ships.
- Facebook commerce is dead. Only Oscar De La Renta and L’Occtaine have e-commerce shops. Facebook conversions to e-commerce site sales is slower than most other channels. F-Commerce was clearly a fad of 2009-2012.
- Amazon, eBay, Alibaba and Apple have deep access to cheap capital. If Amazon wants to build a distribution in south in order to fulfill an order in Alabama in 4 hours, they can. Amazon touches one in five consumers globally online. They’re investing cheap capital into sustainable, long-term competitive advantage. Amazon is creating the infrastructure to enable consumers to achieve the instant gratification that buying in physical store does. Amazon has acquired My Habit, ShopBop and is launching Amazon Lockers. Amazon touts taking online sales to 3x in 18 months to brands that come on board, brands like Tumi and Swarovski are already experimenting. Amazon is the great white shark of retailing.
To watch the full video, and to discover why Amazon is a great white shark, visit FORA.tv for the complete video series.
About L2 Think Tank: L2 is a think tank for digital innovation. We are a membership organization that brings together thought leadership from academia and industry to help brands navigate the changing digital landscape. Drawing from our proprietary Digital IQ Index? research, best practices, and emerging trends, L2 distills this intellectual capital and makes it actionable for our members. Images courtesy of L2 Think Tank.