SPECIALTY RETAIL 2015

Transcription

NYC BREAKFAST | OCTOBER 6, 2015
L2 is a member-based business
intelligence firm that benchmarks
digital performance.
2
BUSINESS INTELLIGENCE FOR DIGITAL
Where are you today? What you need to do to get better? How to hold
teams/vendors accountable?
RESEARCH
BENCHMARKING
EDUCATION
3
UPCOMING RESEARCH
Digital IQ Index®:
BIG BOX
Digital IQ Index®:
FASHION
Digital IQ Index®:
BEAUTY
Intelligence Report:
SOCIAL PLATFORMS
Intelligence Report:
MOBILE
4
UPCOMING EVENTS
BREAKFAST
BREAKFAST
BREAKFAST
SOCIAL PLATFORMS
FASHION
BEAUTY
New York
New York
New York
October 22nd
November 12th
December 8th
5
NOVEMBER 3, 2015 / 8:30 AM–12:30 PM
CLINIC / TISHMAN AUDITORIUM, THE NEW SCHOOL, NYC
6
STRATEGY MODULES
Modules blend deep category insights with brand specific data to
identify opportunities
Omnichannel
Retail
The Digital
Organization
Social Content
& Strategy
Video
Localization
Data & Targeting
7
INTRODUCTION
CRUSHED
Apparel & Footwear Specialist Retailers: Value Sales vs. Selling Space
United States, 2009-2019E
Selling Space
Value Sales (in USD billions)
+4.1% CAGR
+0.8% CAGR
$200
80.0
$180
78.0
$160
76.0
$140
74.0
$120
72.0
$100
70.0
$80
68.0
$60
66.0
$40
64.0
$20
62.0
$0
60.0
Selling Space (in m2 millions)
Value Sales
2009 2010 2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E
Future growth is projected to dip to +0.8% CAGR as retail closures continue to
constrain physical selling space, which has remained flat for the last three years.
Source: Euromonitor International, June 2015.
9
PIVOT
Multiple brands from 2014 Index are exiting category…
10
STATIC STORE FOOTPRINT (AT HOME)
Tiffany & Co: Store Opening by Region
2004-2014, n=295 retail locations
Other
Europe
Asia-Pacific
Japan
USA
300
250
200
150
100
50
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
83 percent of new retail locations launched since 2011 were opened abroad.
Source: Annual Report (10-K), March 20, 2015.
11
POST-EXPANSIONIST PLANNING
Retailers: Sales Growth by Channel vs. Brick & Mortar Investment
United States, FY 2013 - FY 2014 (unweighted average)
n=17 publicly traded organizations with complete data broken down by region
U.S. Web Sales($)
+26.2%
U.S. Retail Sales ($)
Retail Footprint ($)
(#)
+6.3%
+2.3%
Year-over-year growth of direct web sales continue to outpace net revenues in North
America by 4x and absolute change in retail footprint by 11x.
Source: Annual Reports (10-K) & Internet Retailer.
12
CATEGORY LAGGING PEERS
Cross-Sector: Omnichannel Investments by Retail Vertical
Percentage of Bands with Given Feature in Q3 2015
Department Stores
(n=58)
Big Box
(n=62)
Specialty Retail
(n=73)
89%
69%
62%
60%
58%
55%
48%
38%
16%
Buy Online, Return In-Store
Source: L2 Inc.
Check In-Store Stock Status
Buy Online, Pickup In-Store
13
OMNICHANNEL EQUATION
Retail: Value Chain of Online Sales by Sales Model
Pure Play E-Tailers vs. Omnichannel Retailers
Source: ICSC, October 2014.
14
BORING = SEXY
Share of E-Commerce Orders by Acquisition Channel (All Industries)
United States, Q1 2015 – Q2 2015
23%
21%
17%
17%
16%
5%
Organic
Search
Source: Custora, Q2 2015.
Direct
Paid Search
Affiliate
E-mail
Other
1%
1%
Social
Display
15
PERSONALIZATION TOP OF MIND
Primary Area of Focus for Improving Customer Experience
Client-Side Marketers, Worldwide
January 2015
Personalization and relevance
33%
Consumer value
29%
Consistency across channels
12%
Security and reliability
10%
Fun and fulfilling experience
Expedited process
Mobile-friendly
Source: Econsultancy, January 2015.
7%
5%
4%
16
A THIRD, A THIRD, A THIRD
Availability & Usability of Data for Personalization
February 2015
We have data, it’s
usable and we know
how to use it
We have data, it’s not
usable, and we don’t
know how to use it
32%
35%
33%
We don’t have
enough data
Source: FitForCommerce, “Let’s Get Personal: Omnichannel Personalization in a Hyper-Connected World,” February 2015
17
EARLY WINNERS: FAST FASHION
Success of Fast Fashion is more than just merchandising
18
IF YOU CAN’T BEAT ‘EM…
Push Notifications
for Timely Offers
Reserve Items InStore Only via App
Personalized “My
AEO” Offers Inbox
AERewards Card
Links to Passbook
Halfway through 2015, American Eagle returned to positive sales growth (+11%),
benefiting from expanded fashion variety and decreased inventory turnover driven
by personalized offers and increasing omnichannel capabiltiy.
19
METHODOLOGY
METHODOLOGY
DIMENSION:
TECHNOLOGY & INTERACTIVITY: Load Time, Analytics,
Branded Content, Guided Selling
SITE &
E-COMMERCE
SEARCH & NAVIGATION: Product Filtering/Sorting,
Keyword Search
CUSTOMER SERVICE AND STORE LOCATOR: FAQ, Contact
Us, Live Chat, Store Locator, Map Directions
OMNICHANNEL: Click & Collect, Reserve & Collect, In-Store
Returns, In-Store Events/Services, Preferred Store
PRODUCT PAGES: User Reviews, Cross-Selling, Real Time
Inventory, Content Integration
E-COMMERCE: Direct Checkout, Cart Cross-Selling, Gifting
35%
SHIPPING: Free Shipping, Shipping Restriction, Return Shipping
ACCOUNT & LOYALTY: Wishlist, Favorites, Registry,
Tiered Program, Credit Card Integration
*Methodology for highlighted components has been added/changed since last year
21
METHODOLOGY
DIMENSION:
DIGITAL
MARKETING
BRAND SEARCH: Traffic & Web Authority, SEO/SEM
CATEGORY SEARCH: Visibility Across 300+ keywords
grouped into categories
WEB ADVERTISING: Display, Retargeting, and CrossPlatform Initiatives (Data by Pathmatics)
EARNED MEDIA: Reddit and Blog Mentions, Selective
Presence on Industry-Specific Content
35%
EMAIL MARKETING: Ease of Signup, Signup Incentive,
Frequency, Content, Promotions, Triggered Emails,
Smartphone Optimization, Personalization, Localization
22
METHODOLOGY
DIMENSION:
SOCIAL
MEDIA
FACEBOOK: Reach, Engagement, Responsiveness,
Programming Diversity, Support of Native Video Format, Callto-Action
YOUTUBE: Search Visibility, Channel Experience, Reach,
Performance & Optimization of Most Viewed Content,
Competitive Advertising
INSTAGRAM: Reach, Engagement, Post Frequency, Video
Content, E-Commerce Initiatives
10%
TWITTER: Reach, Engagement, Tweet Frequency,
Programming Tactics, Customer Service
PINTEREST, GOOGLE PLUS, TUMBLR, MEERKAT,
PERISCOPE: Presence, Reach, Engagement
23
METHODOLOGY
DIMENSION:
MOBILE
SMARTPHONE EXPERIENCE: Compatibility,
Functionality, Store Locator, Mobile Feature Set, Mobile
Checkout
TABLET EXPERIENCE: Responsiveness, UI/UX
Optimization for Touch Input, Cart & Maps Performance,
Geolocation
MOBILE ADVERTISING: Impressions, Creative, Mobile and
Tablet Platforms
20%
MOBILE SEARCH: “Above-the-Fold” Visibility via
Organic or Paid Results on Google; Site Identified as MobileFriendly, Click-to-Call or Local Directions, Deep Linking
Content and Structure
MOBILE APPS (if applicable): Presence, App Store
Performance, and Functionality of iOS & Android
Offering, E-Commerce Capabilities, In-Store Mobile
Integration
24
CATEGORIZING RESULTS
Brands parsed into five categories based on Digital IQ score
GENIUS 140+
GIFTED 110–139
CHALLENGED 70-89
FEEBLE <70
AVERAGE 90–109
25
RANKING
L2 DIGITAL IQ INDEX®:
RANK
62
BRAND
Compagnie Financière
Richemont SA
DIGITAL IQ
87
CHALLENGED
RANK
FEEBLE
BRAND
DIGITAL
IQ
84
68
L Brands
86
63
81
69
Ralph Lauren Corporation
Tourneau
86
63
75
70
Tumi Holdings, Inc.
Desigual S.L.
85
65
69
71
Brentwood Associates
Restoration Hardware Holdings Inc
85
65
Kenneth Cole Productions, Inc.
French Connection Group, PLC
85
65
65
72
44
73
Swatch Group
Baccarat SA
27
RANK
BRAND
DIGITAL IQ
99
49
AVERAGE
RANK
CHALLENGED
BRAND
DIGITAL
IQ
94
56
Kate Spade & Co.
J. Crew Group, Inc.
99
49
93
57
Oxford Industries, Inc.
Duluth Trading Co.
98
52
92
58
The Aldo Group
Arcadia Group
97
53
Aeropostale, Inc.
L’Oreal Group
97
53
90
60
Daniel Swarovski Corporation
Ethan Allen Global, Inc.
97
53
91
59
90
60
PVH Corp.
Joe Fresh
28
RANK
BRAND
DIGITAL IQ
103
38
AVERAGE
RANK
BRAND
DIGITAL
IQ
100
44
Ann Inc.
Alex and Ani
102
38
100
44
Gap Inc.
Lululemon Athletica Inc.
102
38
100
44
Hugo Boss AG
Lush
102
38
Michael Kors Holdings Ltd
Investcorp
102
38
99
49
Pandora A/S
Chico's FAS, Inc.
102
38
100
44
99
49
Inditex
Chico's FAS, Inc.
29
RANK
BRAND
DIGITAL IQ
108
25
AVERAGE
RANK
BRAND
DIGITAL
IQ
106
31
Fast Retailing Co., Limited
Ann Inc.
107
27
104
33
Abercrombie & Fitch Co.
Signet Jewelers
107
27
104
33
Brooks Brothers
The Jones Group, Inc.
107
27
104
33
Abercrombie & Fitch Co.
Tory Burch LLC.
107
27
Lands' End Inc.
Williams-Sonoma, Inc.
106
31
Apax Partners
104
33
103
33
Pier 1 Imports Inc
30
RANK
BRAND
DIGITAL IQ
117
14
GIFTED
RANK
AVERAGE
BRAND
DIGITAL
IQ
112
20
Urban Outfitters, Inc.
L Brands
116
15
112
20
Otto GmbH
115
16
111
22
Coach, Inc.
Ralph Lauren Corporation
115
16
Steve Madden, Ltd.
Gap Inc.
113
18
113
Express, Inc.
109
24
18
110
23
108
25
Fossil Group, Inc.
31
RANK
BRAND
DIGITAL IQ
135
2
GIFTED
RANK
BRAND
DIGITAL
IQ
122
6
L Brands
Ulta Salon, Cosmectics & Fragrance, Inc.
129
3
120
9
IKEA Group
Tiffany & Co.
127
4
119
10
Gap Inc.
J. Crew Group, Inc.
125
5
119
10
American Eagle Outfitters
Signet Jewelers
122
6
118
12
Gap Inc.
Forever 21, Inc
122
6
118
12
H&M Hennessy & Mauritz
32
RANK
BRAND
1
IN THE COMPANY OF GENIUS
DIGITAL IQ
141
LVMH
1
2
3
1 Instagram account incorporates e-commerce, contests, and influencers
2 Comprehensive product pages include find in-store, videos, and UGC
3 Sephora Flash provides expanded fulfillment options through subscription
33
2014
Specialty Retail 2014: Digital IQ Distribution
Percentage of Brands Per Digital IQ Class, n=82
Genius
Gifted
Average
Challenged
Feeble
44%
40%
12%
2%
1%
Genius
Gifted
Average
Challenged
Feeble
34
2015
Specialty Retail 2015: Digital IQ Distribution
Percentage of Brands Per Digital IQ Class, n=73
Genius
Gifted
Average
Challenged
Feeble
52%
30%
12%
4%
1%
Genius
Gifted
Average
Challenged
Feeble
35
BIGGEST MOVERS
Specialty Retail: Biggest Winners & Losers
2014-2015 Digital IQ Percentile Rank
38%
54%
41%
40%
39%
Average  Gifted
Average  Gifted
Average  Average
Average  Gifted
Average  Average
-40%
-40%
-38%
-38%
-31%
Gifted  Average
Gifted  Average
Gifted  Average
Gifted  Average
Gifted  Average
36
KEY FINDINGS
OMNICHANNEL STANDSTILL
Specialty Retail: Omnichannel Investments Across Time
Percentage of Brands with Given Feature
2013-2015, n=52 Brands Present Across Studies
2013
88%
2014
2015
90%
77%
40%
31%
23%
15%
13%
17%
0%
4%
6%
Reserve Online, Pickup In-Store
Source: L2, Inc., Digital IQ Index®: Specialty Retail, 2015.
Buy Online, Return In-Store
Check In-Store Availbility
38
BRICKS: MORE THAN JUST POS
Specialty Retail: Retail Location Information
Percentage of Brands Providing Information on Brand Site
September 2015, n=73
38%
34%
15%
12%
Display
List In-Store
Location Type Services or
or Product
Events
Lines
Book
Select
Appointment Preferred Store
Service
39
40
41
SHIPPING OFFERS
Specialty Retail: Shipping Offers Across Index Categories
Accessories & Shoes
Apparel
July 2015
n=8
n = 40
Beauty & Skincare
n=5
Home & Gift
n=9
Watches & Jewelry
n = 11
100%
83%
82%
63%
58%
60%
40%
33%
27%
33%
63%
55%
38%
38%
27%
20% 20%
0%
Free Shipping
5%
0% 0% 0%
Product Restricted Free
Shipping
0%
Order Minimum Free
Shipping
Always Free Shipping
20%
0%
Free Return Shipping
42
FULFILLMENT: HOME & GIFT
Free Shipping
(Any)
Check Inventory
Online
Other Detailed
Services
Crate & Barrel
8
4
4
Warehouse Pick-up,
Courier Service
Ethan Allen
8
8
8
“Premier Home
Delivery”
Pier 1
4
4
4
“White Glove
Service”
Pottery Barn
8
8
8
Select “White Glove
Delivery”
Restoration Hardware
8
8
8
Select “Unlimited
Furniture Delivery”
West Elm
8
8
8
Select “In-Home
Delivery”
Williams Sonoma
4
8
8
Select “White Glove
Delivery”
IKEA
8
8
4
Store Delivery,
Picking with Delivery
Sur la Table
4
8
8
-
43
CONTENT AND COMMERCE
Specialty Retail: Brand Site Investments
July 2015, n=73
73%
68%
63%
55%
40%
27%
8%
Blog,
Lifestyle Content
Videos
User-Generated
Content
Product
Customization
66% link branded content to specific
product pages
"Shop the
Look"
Digital Catalog,
Lookbook
Diagnostic,
Quiz
53% include shoppable guided selling
tools
44
PRODUCT PAGES
Specialty Retail: Features on Product Detail Pages
Percentage of Brands Implementing Features on Product Pages
July 2015, n=73
68%
67%
38%
32%
15%
10%
User Ratings
User Reviews
Customer Service Real Time Online
Availbility
Inventory
User Generated
Content
Product Q&A
45
BEST IN CLASS
46
SEO/SEM
Specialty Retail: Search Visibility Across General Terms on Google
August 2015, n=80 Top Generic Queries by Category
Index Brands
Among Top-10
Destinations
Accessories
& Shoes
(n=8)
Apparel
(n=40)
Beauty &
Skincare
(n=5)
Home & Gift
(n=9)
Watches &
Jewelry
(n=11)
10%
40%
30%
30%
40%
0%
30%
10%
20%
40%
Organic
Top Brand
Index Brands
Among Top-10
Destinations
Paid
Top Brand
47
APPAREL: SEO/SEM
Apparel: Search Visibility Across General Terms on Google
Top 10 Sites Appearing on First Page of Organic and Paid Search Results
August 2015, n=80 Generic Apparel Queries (e.g., “pants”) on Google.com
Specialty Retailer
Department Store
E-Tailer
Other
PAID
ORGANIC
70%
shop.nordstrom.com
50%
macys.com
38%
forever21.com
macys.com
30%
jcpenney.com
29%
18%
zappos.com
express.com
33%
bohoo.com
10%
jcpenney.com
33%
hm.com
10%
llbean.com
10%
target.com
10%
oldnavy.com
us.asos.com
29%
25%
kohls.com
23%
ae.com
9%
hm.com
21%
amazon.com
9%
boohoo.com
20%
chicos.com
9%
48
BEAUTY & SKINCARE: SEO/SEM
Beauty & Skincare: Search Visibility Across General Terms on Google
August 2015, n=80 Beauty & Skincare Queries (e.g., “serum”) on Google.com
Specialty Retailer
Beauty Brand
E-Tailer
Other
PAID
ORGANIC
91%
sephora.com
68%
ulta.com
53%
amazon.com
33%
eyeslipsface.com
walgreens.com
totalbeauty.com
29%
24%
31%
covergirl.com
29%
maybelline.com
28%
lorealparisusa.com
21%
olay.com
amazon.com
13%
rimmellondon.com
13%
10%
allure.com
18%
lancome-usa.com
maybelline.com
16%
garnierusa.com
9%
maccosmetics.com
16%
sephora.com
9%
lushusa.com
15%
100percentpure.com
8%
49
HOME & GIFT: SEO/SEM
Home & Gift: Search Visibility Across General Terms on Google
August 2015, n=80 Generic Home & Gift Queries (e.g., “outdoor furniture”) on Google.com
Specialty Retailer
Big Box
E-Tailer
Other
PAID
ORGANIC
56%
amazon.com
54%
wayfair.com
48%
bedbathandbeyond.com
24%
amazon.com
23%
overstock.com
target.com
41%
crateandbarrel.com
overstock.com
41%
raymourflanigan.com
walmart.com
39%
macys.com
ikea.com
38%
target.com
macys.com
30%
wayfair.com
williams-sonoma.com
29%
ewfurniture.com
crateandbarrel.com
28%
potterybarn.com
36%
jcpenney.com
19%
16%
15%
14%
13%
10%
10%
50
SHOES & ACCESSORIES: SEO/SEM
Shoes & Accessories: Search Visibility Across General Terms on Google
August 2015, n=80 Shoes & Accessories (e.g., “boots”) on Google.com
Specialty Retailer
Department Store
E-Tailer
Other
PAID
ORGANIC
65%
shop.nordstrom.com
53%
macys.com
50%
zappos.com
45%
amazon.com
36%
dsw.com
55%
zappos.com
26%
amazon.com
24%
macys.com
6pm.com
21%
nordstromrack.com
14%
aldoshoes.com
29%
llbean.com
13%
ebags.com
28%
target.com
13%
overstock.com
23%
jcpenney.com
11%
target.com
21%
sears.com
11%
kohls.com
18%
walmart.com
9%
51
WATCHES & JEWELRY: SEO/SEM
Watches & Jewelry: Search Visibility Across General Terms on Google
August 2015, n=80 Generic Watches & Jewelry(e.g., “bracelet”) on Google.com
Specialty Retailer
Department Store
E-Tailer
Other
PAID
ORGANIC
70%
overstock.com
50%
macys.com
44%
tiffany.com
38%
macys.com
26%
tjx.com
jcpenney.com
14%
14%
us.nordstrom.com
36%
tiffany.com
amazon.com
35%
amazon.com
11%
zales.com
34%
fossil.com
11%
kay.com
34%
alexandani.com
10%
etsy.com
33%
bluenile.com
10%
kay.com
10%
overstock.com
10%
bluenile.com
pandora.net
25%
23%
52
NEWSLETTER AND ACCOUNT
Specialty Retail: Newsletter and Account Signup Process
July – August 2015, n=73 Brands with Newsletter and Account Signup
89%
77%
65%
38%
38%
28%
14%
8%
4%
Welcome
Email
Pop Up
Incentivized
Newsletter Signup
Expedited
Welcome
Email
Expedited
Social
Media
Confirmation Incentivized
Account Signup
53
TRIGGER EMAILS & INCENTIVES
Specialty Retail: Trigger Emails
July – September, 2015, n=73 Brands with Newsletter and Account Signup
42% of
Brands sent
abandoned
cart emails
29% of
Brands that
sent
abandoned
cart offered
incentive
through
free
shipping
15% of
Brands sent
birthday
emails
100% of
Brands that
sent
birthday
emails
offered
either a gift
or incentive
54
BEST IN CLASS
Victoria’s Secret: Average Read Rate by Email Category
June – September 2015, n=652 Email Campaigns
40%
60%
30%
40%
23%
Read Rate
Percent of Email Campaigns
36%
20%
20%
11%
8%
10%
6%
3%
2%
1%
0.3%
0%
0%
Promotion
Product
Sale
Free Gift
Loyalty
Program
Localized Abandoned
Cart
Birthday
UGC
Customized Content
Source: eDataSource
55
EMAIL CUSTOMIZATION
Personalized and Localized E-Mail Content
Ω
15%
Personalized
Subject Lines
12%
Based on Browsing
History
10%
Referenced Local
Store
4%
Referenced Local
Event
56
WEB ADVERTISING
Specialty Retail: Average Impressions per Creative by Category
Average Impressions Per Unique Creative
September 2015, n=70 Brands with Data
7,000,000
Old Navy
6,000,000
5,000,000
Bath & Body Works
4,000,000
3,000,000
Gap
2,000,000
Duluth
Trading Co.
Cole Haan
1,000,000
-1,000,000
Topshop
Allen
Edmonds
Accessories &
Shoes (n=8)
Apparel
(n=38)
Tiffany & Co.
IKEA
1.4M
915K
650K
0
Sephora
The Body
Shop
Beauty & Skincare
(n=4)
984K
688K
Ethan Allen
Home & Gift
(n=9)
Baccarat
Watches & Jewelry
(n=11)
-2,000,000
57
WEB ADVERTISING: DESKTOP
Specialty Retail: Unique Brand Ads vs. Relative Impressions
September 2014 - September 2015, n=70 Brands Serving Ads
Accessories & Shoes
Apparel
Beauty & Skincare
Home & Gift
Watches & Jewelry
Relative Impressions
75%
Coach
Sephora
50%
Ikea
Gap
Zales
Tiffany & Co.
Pottery Barn
Cole Haan
25%
Old Navy
Victoria’s Secret
0%
0
400
800
1,200
Number of Unique Brand Ads
Source: Pathmatics
58
WEB ADVERTISING: MOBILE
Accessories & Shoes
Apparel
Beauty & Skincare
Home & Gift
Watches & Jewelry
75%
Relative Impressions
Ikea
Bath &
Body
Works
50%
Coach
Zales
Gap
Cole Haan
25%
Old Navy
Sephora
Pandora
Victoria’s Secret
0%
0
300
600
Number of Unique Brand Ads
Source: Pathmatics
59
DESKTOP VS. MOBILE
Direct
Indirect
25%
42%
44%
45%
49%
58%
64%
39%
45%
73%
75%
58%
56%
55%
42%
36%
Desktop
54%
Desktop
Mobile
61%
27%
Mobile
Accessories
& Shoes
Source: Pathmatics
51%
Desktop
Mobile
Apparel
Desktop
Mobile
Beauty &
Skincare
Home & Gift
Desktop
Mobile
Watches &
Jewelry
60
SOCIAL MEDIA LANDSCAPE
Comparative Metrics by Social Platform
July 2014-15, n=73
Platform
Average Reach
Median Annual
Growth
Average Post
Frequency
(per week)
Average
Interactions
(per post)
99%
3,454,224
+12%
9.75
2,205
97%
1,352,537
+132%
10.92
24,331
97%
329,412
+33%
108.22
61.72
84%
9,802,141*
+46%
1.05
-
Active Brands
(30 day threshold)
Source: L2 Digital IQ: Specialty Retail 2015
*YouTube: Average Total Views
Up / Down >10%YoY
61
FACEBOOK
Specialty Retail: Reach, Post Frequency, & Engagement
July 2014 - 2015, n=70 active accounts
Reach
Cumulative Post Interactions
18M
INDEX AVERAGE
Michael Kors
16M
Aeropostale
14M
Reach
3,454,224
Post Frequency
9.75
Total Interactions
1,563,343
12M
Victoria's Secret
10M
8M
Forever 21
Tiffany & Co.
6M
4M
Zara
Sephora
Abercrombie &
Fitch
Hollister
2M
Free People
Williams-Sonoma
M
-
5.00
10.00
15.00
20.00
Posts per Week
25.00
30.00
35.00
62
FACEBOOK: LEADERS
Category Leaders: Share of Voice by Total Interactions
July 2014-2015
Leader
Others
Aeropostale
20%
Nine West
29%
Sephora
47%
53%
71%
80%
Accessories & Shoes
Beauty & Skincare
Apparel
Aeropostale
13%
28%
Pandora
36%
IKEA
72%
Home & Gift
64%
87%
Watches & Jewelry
Overall Index Leader
63
FACEBOOK: CTA BUTTONS
Specialty Retail: Adoption of Call to Action (CTA) Button on Facebook
September 2015, n=70 active accounts
69%
Shop Now
3%
1%
1%
Join Now
Watch Now
Contact Us
Only 10% of
brands are using
CTA buttons to
drive to featured
products or
destinations other
than their main
brand site.
64
INSTAGRAM
Specialty Retail: Reach, Post Frequency, & Engagement
July 2014- 2015, n=71 active accounts
300M
Reach
INDEX AVERAGE
250M
Reach
1,352,537
Post Frequency
10.92
Total Interactions
5,477,792
Victoria's Secret
200M
Aeropostale
150M
Hollister
100M
H&M
50M
M
Urban Outfitters
Forever 21
Free People
Abercrombie &
Fitch
Zara
Baccarat
Zales
0
American Eagle
Alex and Ani
Express
5
10
15
20
Posts per Week
25
30
35
65
BEST IN CLASS
Instagram: Top 5 Posts by Absolute Engagement
July 2014-2015
#1
5/26/15
479.8K likes
4,227 comments
Event
General
#2
6/29/15
473.1K likes
821 comments
Happy Birthday, Angel!
#3
6/12/15
456.4K likes
3,495 comments
VS Swim
VS Sport
#4
6/4/15
440.9K likes
9,096 comments
#5
6/30/15
443.4K likes
5,095 comments
Average Likes per Post
83K 86K 87K 96K 98K
73K
62K
38K 38K 38K 39K 42K 53K
Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15
66
BEST IN CLASS
Instagram: Top 10 Brands by Relative Engagement
July 2014-2015
Watches & Jewelry
Apparel
Beauty & Skincare
@lillypulitzer
3.3%
@aeropostale
1.9%
@vspink
1.8%
@lushcosmetics
1.7%
@bathandbodyworks
@hollisterco
1.5%
@brooksbrothers
1.4%
@urbanoutfitters
1.3%
@zalesjewelers
1.3%
@baccarat_legendar
y
1.6%
1.3%
67
MISSED OPPORTUNITY
Instagram: Forever 21 Thread Screen
July 2015
The F21 Thread Screen is a 2,000-lb
machine that uses 6,400 mechanical
spools of thread to display Instagrams that
are hashtagged with #F21ThreadScreen.
It streamed live online 24 hours a day from
July 22-28th.
Source: f21threadscreen.com, Compete, YouTube
68
TWITTER
Reach, Post Frequency, & Engagement
July 2014- 2015, n=71 active brands
Reach
3.5M
INDEX AVERAGE
3.M
Aeropostale
2.5M
Reach
329,412
Post Frequency
15.46
Total Interactions
179,529
Victoria's Secret
2.M
Hollister
1.5M
1.M
.5M
White House Black
Market
Lululemon
Athletica
Lush
Madewell
Alex and Ani
.M
0
50
100
Fossil
150
200
Posts per Day
69
TWITTER: BEST IN CLASS
Best in Class: @Aeropostale
July 2014-2015
Interaction Rate
0.11%
@Aeropostale
0.07%
0.05%
Index Average
0.01%
32% of @aeropostale’s top 100 tweets (by
overall interaction) feature at least one of these
Vine stars.
70
PERISCOPE
Periscope: Broadcasters by Category
September 2015
Accessories & Shoes
Apparel
Beauty & Skincare
Home & Gift
Watches & Jewelry
71
BEST IN CLASS
Periscope: @alexandani
March-June, 2015
March 26
Periscope Launches
April 10
May
July 1
June16
21 BROADCASTS
72
PERISCOPE CONTENT
Content Analysis: @alexandani
March-June, 2015
Community
Activity
24%
Behind the
scenes
48%
In Store
Event
14%
Live Music
14%
10 of 21 broadcasts included
behind the scenes content from
Alex and Ani’s “Ruler of the Woods”
photo and video shoot
73
YOUTUBE
Specialty Retail: Total Views, Upload Frequency, & Top Video Reach
July 2014-2015, n=61 active brands
Percent of Channel Views
from Top Viewed Video
100%
Brooks Brothers
90%
INDEX AVERAGE
Pandora
Total Views
11,494,312
Post Frequency
1.22
Most Viewed/Total Views
27.34%
80%
Pottery Barn
70%
60%
The Body Shop
50%
Tommy Hilfiger
40%
Ulta
30%
20%
Sur La Table
10%
Sephora
0%
0
2
Victoria's Secret
4
6
8
10
12
14
Uploads per Week
74
CHANNEL PERFORMANCE
Specialty Retail: Paid vs. Organic Views on Brand YouTube Channels
September 2014 – September 2015, n=73 Brands with YouTube Channels
100%
Free People
90%
Sephora
INDEX AVERAGE
Percent of Organic Views
80%
70%
Organic Views
49%
Channel Views
4.4M
Victoria’s Secret
60%
IKEA
50%
H&M
Fossil
40%
30%
20%
Old Navy
Aeropostale
Pandora
10%
M
Source: Strike Social.
Cartier
American Eagle
0%
10M
20M
30M
40M
50M
60M
Incremental Video Views
75
YOUTUBE VIDEO TYPES
Content Analysis: Category Leaders by Total Views
July 2014-2015
Storytelling
10%
20%
Social Interest
Recruiting
General Promotion
Haul
Holiday
Product
Event
How To
5%
15%
15%
47%
55%
40%
95%
5%
65%
26%
35%
30%
Nine West
n=10
6,782,188
5%
5%
5%
Victoria's Secret
n=20
137,221,376
Sephora
n=20
41,435,354
21%
Williams-Sonoma
n=20
18,336,237
Cartier
n=19
85,499,430
76
YOUTUBE TRAFFIC
Paid vs. Organic: Category Leaders by Total Views
July 2014-2015
Paid
Organic
4%
63%
78%
88%
100%
96%
37%
22%
13%
Nine West
n=10
6,782,188
Victoria's Secret
n=20
137,221,376
Sephora
n=20
41,435,354
Williams-Sonoma
n=20
18,336,237
Cartier
n=19
85,499,430
77
YOUTUBE
Top 10 Videos: Total Video Views
July 2014-2015
Cartier
Shape Your Time
24,840,980
9/28/14
Cartier
La Panthere – The
Feminine
Fragrance
7,810,508
4/14/15
Pandora
The Unique
Connection
17,042,623
4/13/15
Cartier
Winter Tale
6,422,075
11/17/17
Aeropostale
Aero Now.
14,882,752
7/28/14
Cartier
The
Proposal
6,417,667
2/2/15
Victoria’s Secret
Angels Lip Sync
“Shake It Off”
8,835,598
12/8/14
Swarovski
Swarovski Citra
Sphere Chrono
Watch
8,211,545
9/3/14
Old Navy
#Unlimited
5,905,462
4/31/14
Cartier
Paris Nouvelle
Vague Collection
4,201,332
6/2/15
78
CURRENT INVESTMENT
Specialty Retail: Site Configuration on Mobile Devices
September 2014 – September 2015, n=66 Overlapping Brands
Responsive Design
Mobile Site
No Mobile Optimization
3%
9%
32%
42%
55%
59%
2014
2015
79
MOBILE SITE
Specialty Retail: Adoption of Mobile Site Features
September 2014 – September 2015, n=66 Overlapping Brands
2014
2015
97%
97%
88%
96%
89%
82%
82%
71%
65%
59%
39%
12%
Store Locator
Mobile Optimized
Checkout
Account
Sign In
Geo-Location
User
Ratings & Reviews
Check
Inventory
14%
8%
Arrange
In-Store
Pickup
80
MOBILE SITE
Specialty Retail: Mobile Site Features
September 2015, n=73 brands
96% with store locator
80% with CTC for
specific store locations
77% with online
inventory
38% include find
product in store feature
14% of brands allow
arrange in-store pick up
from mobile site
15% with mobile
optimized live chat
81
MOBILE APPS
Specialty Retail: Mobile App Features
September 2015, n=67 Mobile Apps from 45 brands
54% of brand apps are ecommerce enabled
64% feature a store
locator, 63% of brand
apps include geolocation
60% support account login
and 50% incorporate
newsletter signup
33% of apps utilize
barcode scanning
82
NEW FORMS OF PAYMENT
Cole Haan’s Mobile App
Opt-in for push
notifications and alerts
Integrated to brand
Instagram with
shopable links to
product
Prioritizes Apple Pay
and Touch ID for inapp purchases
Offers additional
methods of expedited
payment such as
PayPal
83
CONCLUSIONS
CONCLUSIONS
LATE TO THE GAME
As a group, Specialty Retail brands have largely failed to make the same
omnichannel investments observed across their peers in the Department Store and
Big Box retail verticals (i.e., reserve online, ship to store, store to door).
LESSONS FROM FAST-FASHION
Select brands are rapidly adjusting their merchandise portfolio to mimic the success
of fast-fashion brands. Increased variety underscores the urgency of investment in
personalized product recommendations and accompanying offers.
LESS IS LESS…
To date, only a third of brands offer customers the tools to define a robust user
profile (beyond purchase history) and less than 10 percent incorporate advanced
product recommendations into persistent account settings.
DIGITAL IQ = SHAREHOLDER VALUE
85

SPECIALTY RETAIL 2015

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