As Online Spending Grows
More & more consumers are buying clothes online, so much so that the share of e-commerce sales is set to grow from 20% today to 25% percent by 2020. According to a joint research study by international market place Zalando and consultancy firm Boston Consulting Group (BCG). In today’s market is vital for fashion brands to have a solid online marketing strategy. The two companies surveyed 90 global fashion brands belonging to 40 different organisations. There was three main takeaways from the survey that will be discussed in this article.
1.Fashion Brands to Spend more Online.
Currently, 43% of fashion brands marketing budgets goes toward media advertising, of which 57% is allocated to online services such as social media, search engine optimization and retail marketing. With competition growing more and more fierce with every passing year more than 95% surveyed are planning to increase their spending online. Of these willing to increase their spend 85% intend to spend more money on social media and 60% are looking to prioritize retail media.
2. Fashion Brands are Behind when it comes to Cross Channel Data.
The research revealed that just 27% of fashion brands are monitoring online and offline customer data to best serve their clients. This is compared to 67% in the E-Commerce industry in general. According to the research authors fashion brands need to catch up and quick. “One global fashion brand has developed a complete view of its customers using advanced data-capturing techniques; information includes everything from past purchases to the garments a customers has tried on based on radio-frequency identification (RFID) tag data. Sales associates can use these profiles to make the most relevant product suggestions possible”.
3. Fashion Brands need to Personalise their Messages.
Although 76% of the fashion brands surveyed said they feel personalisation is important only 10% are actually using personalisation in the marketing. Most online shops aren’t personalised either as a small 38% of brands fully adapt the recommendation of their E-Commerce websites to each customer. “Every experience with a fashion brand online should be tailored to the customers profile, location and browsing purchasing history”. Only 43 percent of fashion brands extract customer insight in terms of price, product, promotion and place from previous purchase behavior in order to optimize their marketing campaigns.
Thanks for this guys, great piece.