It’s not about the wings, it’s about the will to fly high.
Shopping has been traditionally about look & feel, banking high on customers’ needs, and getting assured by trusting what they see. But times have changed Brands, digital-first, or offline stores, all are moving to the new sky of digital retail expanding their wings and flying high with massive boosts in omnichannel sales in the post-pandemic new normal.
Let’s explore how brands are expanding their digital footprints, what’s then towards it, and the perks of going digital.
Big Brands Moving to Digital Stores and Luxury eCom Marketplaces
The implementation of lockdown measures has not impacted people's expenditures significantly; rather, it has led to a shift in their spending habits. In response to this change in consumer behavior, well-known fashion brands have adapted by investing in their online shopping platforms and eCommerce stores. As a result, major players in the fashion industry, such as H&M, Puma, Hugo Boss, and Zalando, have witnessed a remarkable surge in sales and an expansion of their customer base over the past few months.
For example, H&M, the Swedish fashion retailer that ranks as the world's second-largest, managed to recover from a 57% decline in local sales through a nearly one-third increase in online sales.
Puma, the world-known sportswear firm has decided to invest more in online logistics after they saw their e-commerce sales grow by around 40% in the first quarter and by 77% in April.
Showcase For Offline Sale
In today's digital landscape, where a majority (63%) of shopping instances commence online, it has become crucial for businesses to establish a strong online presence to reach potential customers. Even if these customers ultimately make their purchases from local brick-and-mortar stores, it is vital for companies to showcase their products or services on the web. However, the rising costs associated with digital marketing and the need for eCommerce adjustments have raised concerns about the sustainability of exclusively direct-to-consumer (DTC) business models. According to the State of Fashion 2023 report, brands will need to diversify their channel strategies beyond DTC in order to foster growth and success.
Why do brands need to expand their online footprint?
Most brands across the world are available online now in the post-pandemic world, even the luxury store and houses of brands are also available on niche luxury online platforms or selling via their own online store.
The ease of accessibility is the key. The ease of purchase and expanding reach to new shoppers who prefer online stores even for luxury shopping.
Customer experience. Seamless transition from offline to online saves on massive inventory management costs and store costs. It translates the offline shop experience to online with more consumer-friendly options.
What do brands need to do when they decide to go online?
Understand the eCom landscape & competition: When a brand goes online, it needs to get hold of the market first to understand what & where they want to sell and who are they targeting. Understand competition various product performance matrices as it has sharp contrast, starkly different from a brick and mortar sales competition.
Know your target: The target customers need to be identified as the brand decides to move into new territory in the online segment.
What future holds?
The future looks bright as Brick & mortar stores can co-exist with online marketplaces. The brands on the shelf of the store now making a smooth transition to digital shelf with more control over product performance.
The growing digital retail marketplaces with new technology like augmented reality are enhancing the shopping experience like never before. Brands also moving towards competitive intelligence to stay ahead of market trends with insights and analysis vs competitors across geographies and platforms.
The sales channels on the online shopping spectrum are also evolving with new avenues with on-the-go shopping potential - Live commerce and Social commerce are extending the reach of brands beyond the bound of platforms. But still, eCommerce marketplaces remain the key for a brand to boost sales.
The rise of Digital Native Brands (DNB) has also opened door the to an innovative set of products and more options for customers along with Brands which has both online & offline presence.
The race to reach the top shelf is heating up but the future looks exciting for more Brands across industries and sectors on the eCommerce landscape.
To sum it up - World is changing and brands need to change with it. Marketing strategies and sales channels are expanding and online sales is the bandwagon they need to hop on. Expanding digital footprints in the eCommerce arena is the right move. But brands need to back the decision with data-driven decisions, getting that top spot on eCommerce marketplaces is not that easy. Gear up with digital commerce intelligence, and make your marketing strategies based on insights & analytics while keeping a sharp eye on market trends and competitors' activities.
Spread your winds in eCom Sky, fly high, and make your journey more worth it.
Click here to connect with us and know more about what your brand needs to expand its digital footprint in the global digital commerce ecosystem.