By Kate Kozak | September 6th, 2017
The landscape of shopping is changing, and it’s changing fast. Retailers are rapidly testing various marketing strategies as consumers become increasingly digital-savvy and social media-driven.
The Evolution of the Shopper
Online shopping has evolved from a place where consumers research products and compare deals then purchase in-store. Now, shoppers research in-stores and online, then proceed to purchase the best product for the best price. Online retailers have been working diligently to close this gap by making it easier and more convenient to shop online by offering free shipping, paid duties, and free returns. Amazon is the most notorious. Retailers are reacting to this change by minimizing their brick and mortar stores to a showroom and using their eCommerce site to enable the savvy shopper all the features they need to make a final purchase.
This savvy shopper has been labeled the Omnishopper.
“Omnishoppers are defined as consumers who use technology for the full range of shopping experiences. These shoppers are more demanding, social, connected and convenience-oriented than ever before.” (Thelander, 2015)
These shoppers compare brands, quality, and availability on every purchase.
Retailers whose brand quality stems from the product rather than the store are seeing a double digit increase in eCommerce sales. Brands such as Lululemon, Victoria’s Secret and American Eagle are providing what this customer needs, the ability to try on and feel the clothing and then order it online at their convenience. These stores maintain the consistency in their clothing quality and styles, which enables this shopper to easily shop online at their convenience.
Old Business Models are Failing
Department stores and other retailers are drastically restructuring their business models to accommodate this new shopper. The old school department model has fizzled, with Sears closing 59 locations, Macy’s closing more than 100 stores nationwide, and The Gap Inc anticipating the closing of 200 stores worldwide. Brands such as Old Navy and Banana Republic’s revenue are down seven quarters. To survive, these brands need to change their business model and target these digital-savvy shoppers.
Revamping Old Business Models
The department store giant, Sears is opening pop up stores, starting within locations such as Versace, Tom Ford, and BCBG. They are also strengthening their branding strategy by focusing on a single Sears brand for apparel, footwear, and home goods. Through aggressive merchandise overhaul and pricing model shifts, Sears is changing the fundamental business model it’s had since 1893. Now that’s a shake up!
Macy’s plans to target this market by opening more off-price Backstage stores within its department stores to help drive traffic. To take this one step further, they recently hired a new President, Hal Lawton, the former senior vice president at eBay in an effort to bring the department store retailer closer to the technology sector. You better bet, they are working on a way to target this new genre of retailer.
The big players are changing their playbooks to target the omnishopper, for them, there are drastic changes that need to be made to accommodate them. Engaging shoppers means driving personalization without sacrificing scalable operations, today’s omnishopper expects more for their dollar.
Tips for Success in the eCommerce Business
If you have an eCommerce business, my top 3 suggestions; First, be true to your brand, make yourself stand out. Secondly, customer service has always been key, but now you probably won’t get a second chance so do it right the first time. Third, your influencers are your customers that love your brand and have a following. Target them within your database, purchasing, reviews and social media posts. Give them a little something extra to tell people even more about your brand.
With the advent of the omnishopper, it is even more important to make your products stand out.
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References
O’Shea, Dan (August 2017) As big department stores struggle to engage their online consumer, through voice assisted Omnichannel Retailing
http://www.retaildive.com/news/75-of-omnishoppers-search-in-store-buy-online/503366/
Thelander, Christine (November 2015), “What is an omnishopper?” https://www.canstar.com.au/transaction-accounts/what-is-an-omnishopper/
Shaw, Hollie (April 2017) “’Abolish it’: Sears disavows department store model with new pop-up location, merchandise” http://business.financialpost.com/news/retail-marketing/abolish-it-sears-disavows-department-store-model-with-new-pop-up-location-merchandise
Bowman, Jerry (January 2017) Why Macy’s Is Closing Even Profitable Stores http://www.foxbusiness.com/markets/2017/01/21/why-macy-is-closing-even-profitable-stores.html
Kazin, Mathew (August 2017) Macy’s Hires New President; 100 jobs to be cut in restructuring efforts http://www.foxbusiness.com/features/2017/08/21/macys-hires-new-president-100-jobs-to-be-cut-in-restructuring-efforts.html
Wahba, Phil (September 2017) Gap Inc Is Closing 200 Stores but Opening 270 New Ones
http://fortune.com/2017/09/06/gap-inc-banana-republic-old-navy/
