How direct to consumer can ignite loyalty from fickle customers

DEREK O'CARROLL | February 18, 2019

article image
More and more brands are bypassing stores or retail partners through direct-to-consumer strategies in an effort to achieve greater profits, build strong customer relationships, and improve loyalty. The direct-to-consumer (DTC) market is exploding. Eighty seven percent of brands have plans to launch a DTC channel, with 23 percent aiming to do so within the next 12 months. Nike's DTC business contributed to 24 percent of the company's revenue in 2016, up from 17 percent in 2013. It has plans to grow its DTC business by 250 percent in the next five years. DTC is also being widely embraced by shoppers — the majority (82 percent) of whom have bought directly from a brand in the last year. Understandably, a huge number of brands are now following the gold rush to deploy DTC but, as they do so, they must ensure they deliver the shopping experience that buyers expect. The service they offer must be second-to-none, at all points in the customer journey, to avoid falling short of expectations.

Spotlight

Retailopia

Retailopia is a common platform for In-Store Retailers, Online Retailers, Retail Technology Providers and End Customers.

OTHER ARTICLES

Retail ,Wholesale Trade,Ecommerce,Retail,E-commerce,point of sale.

Article | February 10, 2020

Last July, a small group representing the giants of the tech industry gathered in the seat of US government, Washington DC. They probably didn’t want to be there. Congress had summoned their employers Apple, Facebook, Google, and Amazon to answer questions about the command they hold over the markets they operate in. On Amazon’s behalf, associate general counsel Nate Sutton spoke in defense of his employer’s role in US retail. Throughout, he argued that Amazon isn’t so powerful as to be able to control prices and stifle competition. Amazon, he pointed out, makes up less than 1% of retail globally. In the US, it accounts for around 4% of retail. In fact, Walmart is much larger than Amazon, he said. In terms of sales, Sutton is right. Walmart reported $510 billion in total sales across its US and international segments in the 2019 fiscal year, versus Amazon’s $233 billion in roughly the same period.

Read More

How Amazon’s Cashierless Tech Will (Or Won’t) Change The Physical Retail Landscape

Article | March 11, 2020

The advance of Amazon’s cashierless technology is not a new story to the retail beat as of 2020. Since the first AmazonGo retail location opened in early 2018 with its much-hyped walk-in, walk out retail technology designed to make the line at checkout a thing of the past, Amazon has been slowly but surely expanding the technology’s footprint there are now 26 Go stores in operation in the U.S. with new openings scheduled for New York, Chicago, Seattle and San Francisco on the agenda for his year. And, as of reports two weeks ago, cashierless tech is breaking out of the small footprint, convenience store-esque locations that are Amazon Go stores. As of the end of February, Amazon announced the tech was making its full-fledged grocery debut in the form of Amazon Go Grocery stores.

Read More

Retail store space can have myriad uses

Article | March 22, 2020

Brick-and-mortar retailers have embodied this concept since the inception of physical stores. The saying is taking on a different meaning for retailers seeking to reimagine the concept of physical stores. No-inventory stores, like Bonobos, are exchanging storefronts filled with large amounts of costly inventory for showrooms stocked with personal stylists, cafés or office space. The concept of the store as a showroom benefits retailers, their customers and their workers. The combination of decreased square footage, lower rents and freed-up cash typically tied up in massive inventories creates new opportunities for all to enjoy. Consolidating most inventory in a few central locations, rather than scattering it across all stores, will increase margin and inventory turns significantly.

Read More

How Art Van went from a retail juggernaut to a house afire

Article | March 8, 2020

The Warren-based retailer's sudden announcement that it would wind down operations comes only three years after its late founder, Art Van Elslander, sold the company to a Boston-based private equity firm, Thomas H. Lee Partners LP, in an estimated $550 million deal. How did a seemingly healthy, valuable and beloved company go so wrong so fast? After its 2017 acquisition, Thomas H. Lee set an aggressive strategy to open 200 more stores and double revenue to $2 billion by 2020. But being saddled with roughly $400 million in debt and no financial cushion to respond to the disruption of changing furniture habits left Art Van's business model sitting on a tinderbox. Management missteps were all the fuel needed to burn the house down.

Read More

Spotlight

Retailopia

Retailopia is a common platform for In-Store Retailers, Online Retailers, Retail Technology Providers and End Customers.

Events