See-Click-Buy: Leveraging Content to Sell Merch

See-Click-Buy: Leveraging Content to Sell Merch

By: Pradeep Singh | Delivery Head, Middle East, BORN Group

In June of this year, football great Lionel Messi joined Inter Miami and Major League Soccer, America’s top league, giving American soccer a much-needed boost in terms of visibility and expanding Messi’s global fan base even further. And Messi’s sponsor, Adidas, was ecstatic. According to the New York Times: “Within a couple of days of Messi’s announcement, the company had received almost 500,000 requests from stores and suppliers for jerseys in Miami’s soft, electric pink.”

Messi was already world-famous, of course, but his example demonstrates how quickly demand for a product can explode – and the story of Messi’s jersey represents an opportunity for all kinds of online content providers. People see something – Messi’s jersey, one of Barbie’s outfits, or a piece of jewelry on a major movie star – and they want it. And if the opportunity is there, they will buy it.

The question becomes: How do you give them that opportunity?

Embedded Commerce for Selling Merch

One answer is embedded commerce. Note that I’m not talking here about social media marketing or social commerce, where you’re creating content designed explicitly to sell a product immediately or down the line. Instead, in embedded commerce, the product is part of the story but not the story itself or even the centerpiece of the story.

For example, many James Bond movies feature the titular character wearing an Omega Seamaster watch. It’s essential for Bond’s character to have a luxury watch, but the film isn’t about the watch. However, that watch becomes a powerful embedded commerce opportunity. Fans see it, think it’s cool, and some will want to buy it. Why not give them that opportunity then and there? (Product placement, where companies are willing to pay content creators to use their products as part of the story’s background, is the precursor to embedded commerce.)

Of course, an engaged potential consumer may pause the video, Google the product, and start the research and buying process. But why not make it easy for them?

It might work like this: The consumer sees the product and pauses the video by clicking directly on the watch on the screen. This could let the user save the video image to a personal directory for later shopping. Or, an embedded commerce system could include a back-end plug-in to automatically route that expression of interest to the watch company, a licensed dealer, or a marketplace of licensed dealers and take the viewer directly to a product detail page with an opportunity to buy. Embedded commerce offers new revenue opportunities to multiple value chain links, including the content creator, the streaming or online service provider, and, of course, the manufacturer and its intermediaries.

The possibilities are truly immense. You could use direct links to specific products, like the Omega Seamaster. Or you could offer similar products at a range of price points to target a broader range of potential customers.

Naturally, some content creators won’t want to dilute the power of their content offerings with advertising or e-commerce, and some brands may not eagerly embrace this kind of sales channel. But just as product placement is a well-accepted reality for all kinds of content, turning content into shoppable content may come to be equally acceptable for everything from the obvious – like impulse purchases for clothing, cosmetics, and accessories – to more substantial sales possibilities. I don’t think it’s unrealistic to think that embedded commerce could generate leads for big-ticket items like cars or vacation destinations.

Turning content into shoppable content requires a lot of upfront brand-related thinking and experience design. You’ll want to ensure that an embedded commerce strategy is appropriate to your brand experience as well as your go-to-market strategy. Embedded commerce also requires a lot of back-end technology, such as “you only look once” real-time object detection system, for example, with artificial intelligence-driven video analytics to address matching and mapping. Intelligent e-commerce/referral systems will be required to route requests to the proper jurisdiction or preferred suppliers.

When Messi joined Inter Miami, demand skyrocketed for his jersey. Imagine just how many jerseys Adidas might sell if they embraced an embedded commerce strategy in every match that streams online.

Cyber Monday—
6 Steps to Captivate Consumers

Cyber Monday—

6 Steps to Captivate Consumers

In the 1980s, people started referring to the day after Thanksgiving as “Black Friday” – for consumers, it’s the unofficial start of the Christmas and holiday shopping season; for brick-and-mortar retailers, it’s the beginning of their busiest and most profitable time of the year. Big indeed: Last year, retailers rang up more than $9 billion in sales on Black Friday. But that’s not the biggest shopping day of the year: Cyber Monday, the Monday after Black Friday, accounted for more than $11 billion in e-commerce sales last year.

In terms of overall consumer spending, e-commerce sales volumes still trail sales in the physical world, but it will surprise no one that e-commerce is continuing to grow. Online shopping is convenient (no traffic, no crowds), easy (all it takes is a smartphone), and increasingly the norm for consumers. Of course, the pandemic significantly transformed e-tailing into the default shopping experience for many. Forged by the reality of social distancing, shopping online shows no signs of slowing down.

E-tailers must be ready to elevate their offerings and value propositions before November 27 along six vectors:

Prepare your Cyber Monday strategy.

Your Cyber Monday strategy demands comprehensive planning and coordination of your go-to-market strategy. Email marketing, advertising, and social media initiatives must be tailored to and focused squarely on the most prominent e-commerce day of the year. Now is also the time to review and stress-test your website. Make sure every link works, your system can handle a much more substantial user load, and triple-check that your checkout process is robust and fast.

Optimize for search.

While some shoppers will come directly to your site, many (perhaps most) will find you through search engines, so you must be sure that your website ranks prominently for keywords relating to Black Friday, Cyber Monday, and holiday shopping. When your site secures a top position in search results, you win big.

Improve responsiveness.

The reality is that users shop from multiple devices – computers, tablets, smartphones – and a seamless omnichannel experience will help you convert browsers to buyers. Make sure you are offering a cohesive user experience across devices and platforms. Test and optimize, particularly for mobile performance.

Manage inventory.

Double down on your efforts to predict volumes and avoid stockouts. The loss of a sale because your inventory is depleted, is bad enough, but disappointed consumers can mean the loss of future sales and an ongoing relationship. (They might also vent on social media!)

Create meaningful perks.

It’s a competitive world out there, and one great way to differentiate yourself is by offering tangible benefits to your customers. For e-commerce businesses, these benefits might include free shipping (increasingly necessary in today’s environment), hassle-free returns, or flexible shipping arrangements (e.g., buy online and pick-up in a physical location). The challenge lies in execution, obviously, but also in how you integrate perks into your brand’s value proposition. Your goal should always be to create offerings that enhance the shopping and brand experience. That’s how you build customers for life.

Leverage social media on Cyber Monday and beyond.

Social media has become one of the most powerful tools to build awareness and drive sales for e-commerce companies. But Instagram and other platforms require a different marketing approach: Your focus should be on broadening awareness and engaging customers with meaningful content. In other words, your social media efforts should not look like advertising. Think of social media as an opportunity to attract customers rather than push products out. Done well, social media can drive sales.

While all these ideas are important to every e-commerce retailer at all times of the year, they become essential in the weeks leading up to Cyber Monday. While implementation requires technology, of course, the best solutions are the ones that deeply embrace and further your brand and customer experiences.

The BORN Group can help apply technology to empower your brand.

Get Ahead in Ecommerce by Staying Ahead of Digital Trends

Get Ahead in Ecommerce by Staying Ahead of Digital Trends

In the fickle world of online commerce, the only thing you can ever truly rely on is change:

Change in how online brands are expected to interact with consumers, change in the technologies and trends that digital experiences are built on, change in how consumers behave, change in what customers want, and change in the expectations for businesses to react to these changes more and more quickly.

With the never-ending stream of new digital trends, services, and user needs and wants, today’s online retailers are almost expected to innovate their site’s technology in ‘real time’ to meet the demands of their users. In fact, one of the biggest challenges for online retailers today has nothing to do with driving sales or finding customers— it’s keeping up with new technology and industry standards.

2023 brought with it a slew of new technologies that are designed to help online businesses stay ahead of consumer demands and the competition. Smart businesses are regularly taking all these trends and technologies into account and continuously updating their digital presence.

To keep up, ask yourself these key questions:

  • When was the last time you updated your ecommerce experience?
  • Have you implemented any new technologies in the CX space (e.g., AI)?
  • Do you offer a personalized / tailored experience?
  • What are your competitors doing?

Reflecting on where you are today is the first step towards creating the innovative ecommerce experience that your consumers expect tomorrow.

Customer Experience and Human Experience

A recent PWC survey showed that 73% of consumers ranked customer experiences (CX) and digital ‘human experiences’ (HX) as two of the most important factors in their purchasing decisions – only price and product quality were ranked higher. CX and HX work together to engage with consumers at every touchpoint with the brand or service. Today, consumers expect the best of both worlds: a human-centered experience that makes every interaction seamless, enjoyable, and meaningful. Meeting this demand can drive up business. According to a recent Forbes study,

  • 43% of consumers would pay more for better convenience.
  • 42% would pay more for a friendly, welcoming online experience.
  • 40% of consumers would likely pay a 16% price premium for a great customer experience.

Excellent CX and HX helps foster not only a better relationship between company and consumer, but also encourages more engagement and higher sales.

Artificial Intelligence (AI) and Machine Learning (ML)

To stay on top of CX and HX expectations in 2023, top brands are focusing on personalization, customization, and analytic-driven digital experiences – often supported by Artificial Intelligence (AI). According to Forbes research, 83% of surveyed businesses said implementing AI solutions is a strategic priority for their business. AI-driven tools, such as chatbots, content creators, natural language processors, robotic process automations, and rule-based expert systems, are being implemented to deliver the very best and latest in the user experiences consumers have come to expect.

While we know that AI machine learning is the next ‘big thing’ to change the digital world, this technology requires very high-quality data and analytics to work. Reworking your ecommerce platform’s data points to better serve AI/ML search engines will help your site get ahead in the next level of SEO. ‘Data labeling’ and ‘ranking algorithms’ needs to be a key focus in your digital strategy to get the very most from AI/ML.

Conversational UI & Chatbots

Conversational UI, such as voice interfaces and chatbots, is a fast and convenient way to fill the human interaction gap common to many online experiences. With the advent of AI-powered language processing, today’s chatbots can seamlessly emulate natural human conversation. From purchasing to technical assistance, dedicated plugins for your website give customers more personal, intimate and “human” support throughout their eCommerce experience.

Dynamic Pricing and Price Negotiation

Research showed that in 2021, 17% of US and European ecommerce companies planned on implementing dynamic pricing — while 21% of ecommerce businesses surveyed were already using dynamic pricing. Dynamic pricing lets vendors adjust their product and service pricing to better meet consumer demand and market needs in ‘real time’.

Augmented Reality (AR)

Augmented reality (AR) is one manifestation of visual commerce that’s becoming increasingly popular; global retailer AR spending is expected to surpass $4B in 2023. Integrating AR functionality into ecommerce websites can create some of the most immersive shopping experiences available to online customers.

Social Commerce

It should come as no surprise that social media plays a huge role in driving today’s ecommerce sales. Social media platforms are rapidly becoming the preferred search tool for younger generations. According to ‘The Future of Commerce’ Gen Z consumers use TikTok more than Google to find products. Top companies are reevaluating their social media strategies and the platforms they use to reach and engage with new customers.


Many of the best-in-class ecommerce platforms, such as Adobe and Shopify’s new ‘Commerce Components’, are taking their cues from this rapidly changing ecosystem of digital experiences. In developing bespoke, headless, composable tech-stacks, they are helping digital enterprise retail shops stay ahead of consumer expectations and demands. If you’re not already ahead of these trends— you’re already behind.  

Tell Your Story: Sustainability, Social Responsibility, and Authenticity

Tell Your Story: Sustainability, Social Responsibility, and Authenticity

“Going green” is not a new trend. In today’s market, sustainability is table stakes.

Consumers can choose from a myriad of sustainable, competitively priced, quality products – which often viewed as more desirable. In this post-pandemic world, a growing consumer base, especially Gen Z, expect businesses to participate in the world even more actively and responsibly. In a recent Nielsen study, three-quarters of Gen Z consumers stated that sustainability is more important to them than brand names and 75% of Millennials are eco-conscious to the point of changing their buying habits to favor environmentally-friendly products.

For businesses, this means adopting policies and practices that benefit not only the environment, but society as well.

Brands can stand out from the sea of “green” by becoming leaders in social impact, whether that is sustainability, equity, or fair employment practices. But for their accountability practices to resonate with consumers, brands need to talk the talk and walk the walk. They must take meaningful action to back up their messaging, or else the perception of “greenwashing” or “virtue-signaling” can drive significant backlash from consumers. At the same time, companies who are making great strides in their purpose-driven work won’t benefit from consumer engagement if they don’t tell their story.

Help the world, and your bottom line

There are financial incentives to adopting sustainable and socially responsible practices. Studies show that sustainable practices:

  • lower the cost of capital,
  • result in better operational performance, and
  • drive positive stock price performance

Purpose-driven practices can also drive innovation. Redesigning products or services to meet environmental standards or social needs creates new business opportunities. In addition, greater corporate responsibility improves morale and loyalty among employees. According to a study cited in Harvard Business Review, average turnover rates at purpose-driven businesses may be reduced by 25%-50%.

A major positive outcome of adopting sustainable and socially responsible practices is the competitive edge that comes with it. Studies show that, when cost and quality are equal, consumers prefer companies with clear purpose and ethical values. According to a global survey by Accenture Strategy, 62% of consumers are more attracted to brands with high ethical values and who are authentic in their purpose-driven work. This attraction translates into sales. A study conducted by Porter Novelli revealed that, holding cost and quality equal, 71% of consumers would rather purchase from a purpose-drive company.

Engage with responsibility

Consumer preference for brands with sustainable and ethical practices may be driven by an increased sense of responsibility. Studies show that nearly two-thirds of consumers across six international markets believe they “have a responsibility to purchase products that are good for the environment and society.”

But consumers feel that businesses have some responsibility, too. A 2020 ICF study found that 85% of consumers “want businesses to leverage their influence to raise awareness of sustainability issues.”A similar study from Accenture Strategy found this desire to be more generalized. 62% of consumers want businesses to “take a stand” on current issues, ranging from sustainability to transparency and fair employment practices. 

Consumers’ interest in businesses taking a stand is showing up in their actions, from commentary on social media to participating in boycotts. Younger generations are increasingly more invested, more likely to praise socially responsible and sustainable brands, and critique brands that are not. As time goes on, these interactions will accelerate.

Tell your story

Social activism is a key part of building an effective brand story. Brand storytelling is the thread that ties every touchpoint in the consumer experience together. Through storytelling, brand values become more deeply embedded in consumer minds, attitudes, and ultimately, their decisions. In other words, purpose-driven brand stories are attractive and engaging.

For example, TATA Consumer, one of India’s leading food & beverage companies, tells their story through a lens of environmental and social activism. Their mission is clear: “At TATA Consumer, we stand For Better products, nutrition, communities, and planet.” TATA approached BORN to strengthen their online presence across multiple markets. BORN worked with TATA to refresh their brand identity. To do this, they amplified brand storytelling throughout the newly developed site, re-aligning it with TATA’s “For Better” philosophy. TATA’s successes – from ranking as the number one food brand in India’s Brand Equity Survey, to becoming the first industrial township to meet international environmental standards – are highlighted on the homepage and in a primary section of the site. Their brand story integrates not only the importance of their mission, but the tangible impact TATA has on the world.

Be honest

Brand storytelling is more than the brand’s voice, heritage, and narrative. It must be a transparent conversation about your brand’s efforts to put their values into practice. Above all, consumers want companies to be honest. Studies show that corporate transparency may be even more important than corporate actions. Two-thirds of consumers think transparency is one of a brand’s most attractive qualities and strongly influences where they buy.

An authentic story helps consumers understand where your company has come from and where you’re going. This means being open about successes as well as failures. Consumers understand that implementing sustainable and socially responsible practices is difficult, complex, and an ongoing journey.  An honest conversation about that journey, with its ups and downs, is not only relatable, but also fosters a more authentic relationship with consumers.

Acknowledging the ways in which a company isn’t perfect builds trust. Studies show that, when a company leads with purpose, consumers are 72% more likely to forgive that company if it makes a misstep.

A strong, purpose-driven brand story can be found threaded throughout the digital presence of Reformation, an American clothing retailer. This retailer has a strong following of loyal consumers who believe in their mission statement: “We have big goals, like reducing more emissions than we make, making all our stuff from recyclable materials and trying to save the Earth while looking damn good doing it.” Reformation proves that the latest trends in fashion can go hand-in-hand with sustainability and green initiatives. They design stylish, vintage-inspired women’s clothes using only recycled, regenerative, or renewable materials in their clothes. Reformation also carefully tracks consumer data and feedback to produce only what they know they can sell in order to prevent “textile” waste. During their manufacturing they also take into account their energy consumption, water waste, greenhouse emissions and human and eco toxicity.

We’re all in this together

Sustainability and social responsibility cannot be accomplished in a vacuum. Built on honesty and trust, the relationship between brands and their consumers can help drive greater impact. Consumers are an important part of a brand’s ecosystem.

As consumers push brands to be more responsible and transparent, brands can work with their consumers to better understand how they can do so. Brands should be asking questions like:

  • What do our consumers care about?
  • What resonates with our consumers?
  • How can our brand work with consumers to innovate, educate, and make an impact?

Collaboration between stakeholders, employees and consumers can help companies discover shared values across the ecosystem and identify where the company can make a difference.

Combining research, service design, and brand storytelling, XDS design agencies BORN and  Mad*Pow work together to help organizations have meaningful conversations with their audiences, drive change within their organizations, and share their stories with the world.

Being sustainable, socially responsible, and authentic is an ongoing journey. Changing the world is hard. We’re here to support the work at every step of the way.

The Role of Emotional Intelligence in e-commerce

The Role of Emotional Intelligence in e-commerce

Shopping is a highly emotional experience. Studies reveal that emotional impulses drive up to 95% of purchasing decisions.1 The products and services we buy influence how we feel. As society emerges from the pandemic and online shopping continues to flourish, consumers desire a personalized shopping experience where they feel understood. In response, retailers must develop emotional intelligence to attract and retain customers. 

Emotional Intelligence Drives Sales

Emotional intelligence refers to evaluating, understanding, and controlling emotions. There is an immense payoff when companies connect with customers’ emotions. Customers who like the companies they do business with are more likely to continue to buy. Additionally, 78% of loyal customers recommend favorite brands and products to friends and family.2 Therefore, retailers must develop emotional intelligence to create a retail experience that is in tune with the feelings of their customers. Harnessing the power of emotional intelligence gives retailers the ability to target customers at the right time, through the appropriate channel, and approach them in a way that resonates on a deeper level. 

Customer Experience is the New Battlefield

In today’s highly competitive market, conventional business wisdom is not enough to succeed. With countless online retail sites, it is increasingly difficult for brands to differentiate themselves. Creating an emotionally intelligent brand with an optimized website makes customers feel like part of the experience, not just part of a transaction. 

For customers, it is critical to feel prioritized by the brands they consume. Research shows that 86% of buyers will pay more for a great customer experience.3 This sentiment has increased the need for brands to take their marketing and websites to a new level by incorporating empathy and emotional intelligence into digital experiences and customer communications. 

Emotional Motivators

As eCommerce companies craft their websites, they must remember that customer purchases are inherently driven by emotional responses. A study by the Harvard Business Review studied customers’ interactions with hundreds of brands across all categories. It concluded that more than three hundred “emotional motivators” influence consumer behavior.4 Learning which emotional motivators lead to sales help brands strategically target the feelings that motivate customers to make purchases. These motivators provide retailers with valuable insights that can be applied when designing and improving a company’s products, services, and retail site. 

Broaden Customer Reach through Digital Channels

Brands must be accessible to their customers on the internet and through their smart devices in this digital age. Tech companies like Amazon, which offer a hassle-free experience and expedited shipping, have encouraged some consumers to skip in-person shopping altogether. To compete with the convenience of retail giants like Amazon, Retailers must focus their attention on developing emotionally intelligent websites to win over shoppers and drive sales. Data shows that 86% of customers with high emotional engagement want access to a brand through numerous channels.5 Brands must become both emotionally and digitally intelligent so customers return for the experience as well as the product. 

Multiple Payment Options Increase Sales

For a business to succeed, it is critical to offer easy and convenient ways for customers to pay. Providing customers with multiple payment options encourages sales. While credit cards are still the dominant online payment form, accepting alternative payment methods such as PayPal, debit cards, and cryptocurrencies maximizes sales. According to a study by PPRO 42% of consumers in the U.S. say they would not follow through with a purchase if their preferred payment method is not available.6 Retailers can also offer deferred payment through Buy now, pay later platforms that make purchases more achievable for some customers. Providing as many choices as possible allows customers to choose the way that works best for their needs at the time. 

Building Trust

There is a significant connection between trust and closing a sale. To build trust, retailers should include extensive contact information on their website, provide chatbots, FAQs, and call center phone numbers to answer customer questions, and display customer reviews prominently. Online consumers rely on reviews when making purchasing decisions. Studies show that 93% of customers read reviews before buying a product.7 Additionally, retailers should promise shoppers a safe and secure checkout that protects them from fraud. 

Incentive Programs

Customer loyalty is essential to growing a business. Repeat customers are extremely valuable to brands. Research shows that 70% of emotionally connected customers spend twice the amount when they are loyal to a brand.6 Retailers operating in markets with multiple competitors can set themselves apart from the competition by developing loyalty programs. Creating a customer loyalty program helps incentivize customers to become repeat customers by providing rewards for making repeated purchases. Discounts, rebates, rewards, free merchandise, and coupons motivate customers to spend more with brands and reinforce the consumer/brand connection. Focusing on loyalty programs helps brands align themselves with the segment of their customer base spending the most and deepens the relationship. 

Consumers are looking for digital retail stores to go the extra mile and cater to their needs. Approaching the customer experience with emotional intelligence is necessary to drive sales and win repeat customers. Personalizing sales techniques to fit customer needs, being transparent and helpful, and creating incentives to encourage customers to be part of a digital community will drive sales and lead to future purchases. Building websites that connect with the emotions of their customers will lead to a significant return on investment. 

Footnotes:

1)https://www.idslogic.com/blog/2017/11/using-emotional-intelligence-to-power-your-ecommerce-website.html

2)https://www.semrush.com/blog/word-of-mouth-stats/

3) https://www.forbes.com/sites/danielnewman/2020/06/23/4-actionable-customer-experience-statistics-for-2020/?sh=25c72d391a84

4)https://hbr.org/2015/11/the-new-science-of-customer-emotions

5) https://cxindex.com/company/blog/emotional-intelligence-the-key-ingredient-to-great-customer-experience/

6) https://www.volusion.com/blog/why-accepting-multiple-payment-methods-is-vital-for-ecommerce-success/

7) https://www.shopify.com/blog/15359677-why-online-store-owners-should-embrace-online-reviews

Building eCommerce For The Greater Good

Building eCommerce For The Greater Good

As eCommerce reshapes the modern marketplace, many shoppers are spending more time and money online, leading eCommerce to grow, with sales expected to reach $5.5 trillion in 2022.1 The accessibility of online shopping and the growing use of digital payment options have resulted in a dramatic shift in consumer shopping habits. While there are advantages to expanding online, the rapidly changing landscape has also created financial, economic and social benefits.

eCommerce Encourages Entrepreneurship

The eCommerce industry encourages entrepreneurship by reducing start-up costs. An eCommerce site can be launched for as little as $1,000, depending on the necessary features for business.2 Whereas a significant amount of time and money is needed to open a physical store, an eCommerce store can be operational in just a few short weeks or days. Fewer barriers to start and a more significant market share encourage businesses of all sizes to compete. As more retailers enter the marketplace, sustained growth and competition lead to more innovation and online experiences. To keep customers coming back, retailers must focus on the customer experience and create compelling products that stand out. This focused attention helps attract new customers and incentivizes current customers to return to online shops, driving economic growth. 

Widely Available Goods and Services

Businesses can connect with customers through online channels and have far greater reach than physical stores. It’s estimated that 2.14 billion people worldwide, roughly a quarter of the world’s population, will make an online purchase in 2022.3 ECommerce ensures customers can find everything they need in one place. Without the limitations of a brick and mortar store, online retail stores can offer a greater number of products to their customers. In addition to increased purchasing options, customers can browse and make purchases at their convenience. Online stores enable customers to spend their time shopping instead of driving to physical stores or waiting in long lines. Online stores are always open and provide 24/7 access to vital goods and services. Secure payment options, including digital wallets, credit or debit cards and crypto, facilitate payment and encourage sales. 

More Affordable Products 

The increasing number of online storefronts has resulted in competition among retailers to provide the best deal to consumers. This gives consumers the ability to compare prices and quality. Additionally, lower operating costs allow online retailers to sell products for less than traditional retailers. The demand for certain products encourages companies to create more affordable alternatives. With so many online options, consumers can find products at their desired price point, encouraging even less affluent customers to shop. Retailers can also offer deferred payment through Buy Now, Pay Later platforms that make purchases more achievable for customers. Giving customers the option to pay later can boost sales by making larger purchases more obtainable. 

A Lifeline During Uncertain Times

A key benefit of online retail is that it is a lifeline for businesses and customers during turbulent times. As the world went into lockdown in response to COVID-19, commerce habits shifted to online purchasing. Shortages of essential items on store shelves resulted in many customers turning to eCommerce. Online shopping boomed because it was a safe and viable option to obtain necessary items. Companies that focused their efforts on online selling were more likely to survive and grow. Expanding their online presence also meant some businesses could continue to provide jobs to workers during a period of record unemployment and uncertainty.4

Career Opportunities

The growth of online retail translates to increased career opportunities. According to the data and analytics company GlobalData, the number of eCommerce jobs has increased by 180% from September 2020 to September 2021.5 Jobs in marketing, sales, design, web development and IT positions are vital to keeping an eCommerce company operating. While online websites automate many processes, the human element cannot be eliminated. Talented IT professionals are necessary to create and keep websites up and running, while creative sales and design teams contribute content to educate and connect with customers. Lastly, skilled customer service departments are necessary to handle customer queries.

Why Should Businesses Care

The eCommerce industry has revolutionized commerce worldwide. Entrepreneurs can now set up shop easier than ever, providing new opportunities. The increased number of online retailers has generated more diversity in goods and services, which helps keep costs manageable. During times of uncertainty, eCommerce offers a lifeline that enables consumers to find much-needed supplies. Businesses that shift to eCommerce can continue to expand while helping the greater good by providing employment, goods and services to everyone.

Footnotes:

1.https://www.emarketer.com/content/global-ecommerce-forecast-2022

2.https://www.bigcommerce.com/articles/ecommerce/ecommerce-cost/#conclusion

3.https://www.oberlo.com/statistics/how-many-people-shop-online

4.https://www.forbes.com/sites/johncaplan/2021/05/03/ecommerce-has-been-a-lifeline-for-small-businesses-during-the-pandemic-where-do-they-go-from-here/?sh=e85d61235871

5.https://www.globaldata.com/ecommerce-hiring-increases-180-y-o-y-social-commerce-trends-increasing-hiring-activity-finds-globaldata/

The Future of Retail Part I: Navigating Today’s Landscape

The Future of Retail Part I: Navigating Today’s Landscape

Nothing could have prepared retailers for Covid. Since the pandemic forced the first widespread lockdowns in living memory, some have collapsed, the pandemic hastening their demise after a lackluster few years. Others survived but are changing their business models and spaces, looking for new ways to maintain sales and profits. A third set are buoyant, having seen online sales rocket. All have been deeply affected by the events of the last couple of years and are no doubt wondering what the future will bring. 

Whether 2022 sees the last of the lockdowns or not, Covid has changed the way we live and shop for good. The pandemic has not only accelerated digital transformation, it has also necessitated a total rethink of the future of retail in all its aspects: online and in-store, local, downtown or mall, delivered to your door or click-and-collect. Retailers now need to carve out a successful future in this new normal, with agility baked into their operations so they are well placed to respond to changing situations. But what will the new retail landscape look like? Now that the widescale lockdowns are over, what new consumer behaviors are here to stay?

Competition Heats Up Among The Giants: Amazon And Walmart 

Apple, Facebook, (Google) Alphabet, Microsoft Amazon and Walmart all saw huge increases in sales and profits since the start of the pandemic. Amazon saw almost every aspect of their business rise, from web services to streaming to home delivery, accounting for 41% of all US online retail sales in 2021.1 The company has opened Amazon Fresh grocery and convenience stores and is now moving into its own branded FMCG products with Aplenty. Expansion is inevitable, but the brand is keeping quiet about its plans. 

Meanwhile Walmart’s ecommerce sales grew 74%, leading them to hire more than 235,000 store associates2. Having largely left the Marketplace part of the business dormant for some years, it spruced up its offering, undercut Amazon for commission on some items and reached 70,000 sellers, projected to increase 146% by the end of 2022.3 Amazon’s marketplace is still far bigger, expected to have more than 3 million sellers in the US by the end of 2022 and 7.5 million globally according to Marketplace Pulse. But Walmart has physical stores, which means successful online vendors could find opportunities to sell offline too. The company also apparently has plans beyond retail and is aiming to develop its services in advertising sales and healthcare, where it will be jostling for position once more with main rival Amazon. 

A Permanent Shift Towards Online Shopping 

Consumers have grown to rely on online shopping, not only for essentials like groceries and toiletries, but also for goods and services to keep them entertained at home. During lockdown the winners were those businesses who, like Amazon and Walmart, were able to meet the surge in demand while maintaining a high level of customer service, as well as those who could quickly pivot their offering in response to changing customer needs. 

All the surveys and statistics agree that the shift towards online shopping is likely to be permanent. According to IBM’s U.S. Retail Index, the pandemic has accelerated the shift away from physical stores to digital shopping by roughly five years.4 A Qubit survey polling 1,500 US and UK customers in July 2021 found that nearly 86% planned to continue shopping as they had over the last 12 months5, despite physical retailers re-opening, and the intent was clear in all age groups. McKinsey reports that ecommerce remains at around 35% above pre-Covid levels.6 But online shopping brings slimmer margins and moving forward retailers will need to find ways of increasing basket spend and keeping warehousing and delivery costs down, as well as creating experiences that keep customers coming back for more.

Creating experiences fit for the future

BORN has worked with several leading retailers to ensure their online customer experiences are optimized for this new environment. Brooks Brothers, America’s oldest retailer needed to become ‘far more than a store’. Now they have reimagined the online experience, removing friction and telling the brand story more effectively. It’s easier for users to discover new products, educate themselves on the options available and become part of the loyalty scheme to reap future benefits. 

Meanwhile, world-leading luxury watch brand Rado needed to create a better experience for mobile. The BORN team redesigned the mobile interface, enhancing the content and navigation to provide a better showcase for products and tackling content management and eCommerce functionality. These retailers are future proofing their online experiences, ensuring that they measure up to customers’ ever-growing expectations. 

Delivering For Customers, And The Environment

Efficient delivery comes at a cost, to customers, the retailer and to the environment. But it’s also key to the convenience of online shopping. What could it look like in the future?

Click-and-collect has solid advantages for retailers, driving footfall to physical stores where customers may make additional purchases as well as being a low-carbon option. Businesses finding themselves with an abundance of space are dedicating an increasing proportion to fulfilling click-and-collect orders. 

Speedy home deliveries are more of an issue. The problem with next-day deliveries is that it means half-empty vans are doing the same trips, sometimes multiple times a day. That ‘last mile’ comes at a high carbon cost. There’s a commonly held view that people will insist on speed, but a study for a major retailer in Mexico found that slower shipping was acceptable to 71% of customers if they were told it meant saving a certain number of trees, calculated to be equivalent to carbon emissions caused by faster shipping.7 The author of the study is hoping that giants like Amazon or Walmart might take note for the future; in the UK ASOS are already offering reduced shipping rates and a discount code for ‘no hurry’ delivery.Perhaps consumers who expect super-fast delivery, can be weaned off it in the interests of the environment, at least for the most part. 

Amazon are beginning to invest in electric vehicles for the ‘last mile’, with their robot delivery system Amazon Scout operating in four US states and the business further developing the technology in the UK.9 For an even more futuristic, if rather terrifying option, ANYbotics and Continental’s concept combining driverless shuttle vehicles with robot delivery dogs looks uncomfortably like something from dystopian TV series Black Mirror.10

Footnotes

  1. Amazon Clobbers Competition, Accounting for Over 40% of US Retail Eccomerce Sales In 2021, eMarketer, https://www.emarketer.com/content/amazon-clobbers-competition-us-retail-ecommerce-sales-2021
  1. How Walmart is Responding to Covid-Related Challenges, Forbes, https://www.forbes.com/sites/edwardsegal/2021/09/01/how-covid-repeatedly-put-walmart-to-the-test/?sh=4b190a6617bd
  1. How The Pandemic Helped Walmart Battle Amazon Marketplace For Sellers, Reuters, https://www.reuters.com/business/retail-consumer/how-pandemic-helped-walmart-battle-amazon-marketplace-sellers-2021-04-14/
  1. COVID-19 Pandemic Accelerated Shift To E-commerce By 5 Years, New Report Says, TechCrunch, https://techcrunch.com/2020/08/24/covid-19-pandemic-accelerated-shift-to-e-commerce-by-5-years-new-report-says/
  1. Consumers Plan To Keep Shopping Online, Despite Stores Reopening, Fashionunited, https://fashionunited.uk/news/retail/consumers-plan-to-keep-shopping-online-despite-stores-reopening/2021081257089
  1. US Consumer Sentiment and Behaviors During The Coronavirus Crisis, McKinsey & Company, https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/survey-us-consumer-sentiment-during-the-coronavirus-crisis
  1. How To Shop Online More Sustainably, NY Times Wirecutter, https://www.nytimes.com/wirecutter/blog/shop-online-sustainably/
  1. How Does Your ASOS No Hurry Delivery Service Work?, ASOS, https://www.asos.com/customer-care/delivery/how-does-your-asos-no-hurry-delivery-service-work/
  1. Is Amazon’s Scout Delivery Robot Coming to the UK and Europe Soon?, Pocket-lint, https://www.pocket-lint.com/gadgets/news/amazon/153671-is-amazon-s-scout-delivery-robot-coming-to-the-uk-and-europe-soon
  1. This Robot Delivery Dog Can Bring Your Parcel Right To Your Doorstep, Mashable, https://mashable.com/video/driverless-vehicle-deploys-robot-delivery-dogs