From Frenemies to Best Friends turning the threat of brands going - - PowerPoint PPT Presentation

CONFIDENTIAL

June 18, 2019

From Frenemies to Best Friends

turning the threat of brands going direct into a win-win by putting the customer first

Rich Siefert, Sr. Consultant, FitForCommerce

• 1. Today’s Retail Reality
• 2. What does that mean for you?
• 3. How do you compete?
• 4. Q&A

Today’s Agenda

We are the help.

is a specialized consultancy helping digital businesses accelerate growth. Trusted advisor to hundreds of global companies. Curated digital innovation tracking and applied market advice to businesses in CDO-

• n-demand service.

Benchmarking of Top 120 Retailers for Omnichannel Innovation (Store, Web, Mobile, Cross-channel). is a philosophy and our methodology based on an investment and due diligence mindset for decision-making and execution to ensure success.

3

Trusted Advisor to over 500 Brands and Retailers

4

4

Trusted Advisor to over 500 Brands and Retailers

5

5

113

IR1000 clients

18

countries served

1500+

engagements helping clients grow

500+

retailer, brand, B2B, manufacturer clients

600+

combined years of experience across 25 verticals

400+

vendor selection projects

1600+

thought leadership pages published

Today’s Retail Reality

Shopper Expectatio ions are at an All ll Tim ime Hig igh

• Any time, any way, anywhere is today’s shopping

mantra

• Shoppers insist on a superior, seamless and

convenient experience

• Your competitor is only a click away
• Amazon is eating up market share
• New technologies redefine what is possible

Shoppers are Digital

Outdoor Shoppers Are Digital Too

70% of outdoor consumers engage with tech for something

• utdoor related - gathering product information, interacting socially or

discovering something new.

75% of outdoor consumers shop with intent and educate

themselves prior to making a purchase.

80% shop outdoor retailer sites every two months or more often.

How Outdoor Consumers Use Tech to Shop

Source: Path to Purchase Report, Outdoor Industry Association

Research/Discovery

22% to read reviews of outdoor

products

21% to compare prices of

• utdoor products

20% for inspiration for new

• utdoor products

19% to discover new outdoor

brands

19% to discover new outdoor

retailers/places to shop

Socialize

21% to share photos or videos of

• utdoor activities

20% to discover new places to

engage in their outdoor activities

18% to find like-minded people

who share their interest in a specific

• utdoor activity

17% to share details about their

• utdoor activities

14% to feel like part of an outdoor

community

Learn/Track

20% to discover new places to engage

in their outdoor activity

19% for inspiration for new outdoor

activities

18% to learn about a new outdoor

activity

14% to feel like they’re experiencing

the outdoors

13% to track the performance of

competitors in outdoor activities

12% to track their performance in

• utdoor activities

Brands are Dig igital

Brands’ also face increased competition fr from retailers

1 out of every 4

products sold in the US is private label or store brands

Driven by the need to differentiate rather than price

Source: Private Label Manufacturers Association

The Elephant in the Room…

• Amazon is doubling down on private label and

exclusive brand strategies

• Amazon now accounts for 49% of all US

ecommerce sales….

• Most digital shoppers start their shopping

journey on Amazon

• This year, more than 50% of US households

will be Amazon Prime members

What does this mean to you?

Do you ever feel like being a retailer has become an extreme sport?

You constantly have to navigate increased competition from all angles

Brands are Getting Closer to Customers…

But They Still Need You!

• 90% of retail sales still happens in physical stores
• Only 1% of site visitors purchase on brand sites
• 39% of outdoor consumers shopped both online and at brick-and-mortar

locations for outdoor gear. Only 12% of outdoor consumers shopped exclusively online.

• While there are many channel opportunities, specialty brands still want to

be with retailers who can tell their story and add to their authority… and respect MAP pricing

• Local retailers provide solutions for immediate gratification… compete with

same day delivery

Source: Path to Purchase Report, Outdoor Industry Association

How Do You Compete?

The Customer Always Comes First

DISCOVERY CONSIDERATION PURCHASE USE/SERVICE LOYALTY

Conducts online research for camping vacation, compares features of camping tools and gear Visits store to see gear in person and get advice from associate experts Considers buying online for convenient ship to home Looks for how to videos and relevant camping tips Shares camping experiences with friends and on social media

Understand the Customer Jo Journey and Tailor the Shopping Experience

• Location, Location, Location
• Associates as experts
• Existing customer relationships

Play to Your Strengths

Unlock the Power of f Your Stores – Experience!

• Host in-store events and classes
• Provide services and testing equipment to guide

purchase decisions

• Arrange clinics (ski, golf, hiking, tennis, etc.) and
• ther group activities for testing equipment and

learning different sports.

• Offer rental to introduce novices to a new sport
• r allow experts to try new equipment before

purchasing

BRANDS + RETAILERS:

• Include brands in events as experts, sponsors, participants
• Leverage brand partners to educate staff

Unlock the Power of f Your Stores – The Power of Now

• Implement buy online/pick up in-

store for convenience and to drive in-store traffic for possible upsell

• Same-day delivery… to store

areas

BRANDS + RETAILERS:

• Make sure you are on brand website store locators… with

detailed, accurate information

Associates as Experts

• Hire associates who are already outdoor

enthusiasts

• Train associates to provide expert advice on

products

• Encourage associates to create ongoing

relationships with customers

• Enable associates to share their experiences with
• ther customers (e.g. UGC on websites)
• Leverage expert associates to lead classes, talk, in-

store or offsite

BRANDS + RETAILERS:

• Brand sites, content and team members provide invaluable

resources for training associates

• Invite brands to provide educational product showcases

Deliver Personalized In Interactions

• Unlock the power of your data - use what you

already know about your customer and start capturing what you don’t know!

• Make sure you have the right tech to easily

capture, analyze and leverage data

• Create relevant and personalized marketing

programs (email, promotions, loyalty) to drive traffic and sales

BRANDS + RETAILERS:

• Selectively share what you know about your customers with your

key brand partners

Embrace Digital

• Expand your reach – online, customers

can find you from anywhere, at any time

• Engage with shoppers during

discovery/research

• Extend your product assortment
• Develop the digital approach that makes

sense for you and your customers – ecommerce, advertising, social, marketplaces…

BRANDS + RETAILERS:

• Extend your product assortment with brand’s DTC capabilities

to Drop Ship

Embrace Digital In In-Store Too!

• Support endless aisle
• Empower sales associates

with tools to provide better in-store experiences

Unlock the Power of f Content

• Use content to guide shoppers and inform

purchase decisions

• Tell your story and showcase your expertise

through use and compelling content (how to’s, tips, videos)

• Foster community – encourage customers to

share experiences, reviews and photos

BRANDS + RETAILERS:

• Leverage brand’s content to make sure customers get all the

details they need

Go Local and Embrace Mobile

• Make it easy for shoppers to find you on the go
• Invest in local product listing ads to drive store

traffic

• Leverage geo-targeted ads for key brands
• Claim and own your store to make sure critical

information is accurate

• Reputation management… Yelp, Google…
• Optimize your site for mobile devices

Reeling It In!

• Never forget – brands still need you!
• Put the shopper at the core of everything you do
• Understand the customer journey to deliver differentiated

experiences at every touchpoint

• Unlock the power of your stores with differentiated experiences and

value-added services

• Embrace digital – commerce and marketing

Rich Siefert| transformation@fitforcommerce.com

THANK YOU! Questions???

31