With all the chatter in retail these days � from the Web and fan sites; the corporate, designer, and fan blogs; the bloggers at fashion shows downloading runway video to their sites before people even leave the show � is there too much noise getting in the way of real business?
No way, says Gilt Groupe's Nathan Richardson, general manager, men's.
"[Social media] has really put the consumer in the driver's seat," he says. "The amount of information at their fingertips is like nothing we have ever experienced. Consumers are so much more aware of their retail options, and are knowledgeable about brands and value. It has really empowered the consumer to make informed decisions."
As Oona McSweeney, Stylesight's vice-president of retail and special markets points out,
"It's like Sy Syms always said: �An educated consumer is our best customer.' Truer words were never spoken, and he probably never knew how prophetic that was."
Most men (59%) and women (71%) have browsed the Internet for clothes, according to the Cotton Incorporated Lifestyle Monitor� survey. Today,however, online shopping is no longer limited to perusing retail sites.
Web surfers can drool over fashion obsessions on blogs like BleachBlack, and can receive updates about store sales and new merchandise via email, Facebook, and Twitter. Sites like Polyvore let users give and get style advice, and create virtual outfits � from sunglasses to $1,125 Givenchy tops � that can then be purchased through sites like FarFetch.com. Invitation-only shopping sites like TheTopSecret.com and Gilt Groupe offer ephemeral deals for premium merchandise. And with the growing adoption of smart phones like the Blackberry, Droid and iPhone, consumers can shop anywhere, anytime on their mobile devices.
Total 2009 online retail sales in the fourth quarter grew 14.4% on an adjusted basis over the fourth quarter of 2008, reaching $35.9 billion, according to the Department of Commerce. For the year, e-commerce sales increased 2.0%, to $134.9 billion. According to the Euromonitor International's "Internet Retailing � U.S." report, clothing and footwear Internet sales in 2009 were estimated to be about $13.2 billion.
Monitor data reveal that men shop online for clothes less than once a month, and spend about an hour-and-a-half doing so. Meanwhile, women shop online for apparel about once a month and spend about two hours in the process.
While they may not spend a significant amount of time shopping on the Internet, online consumers are a "super savvy breed," according to McSweeney. They check out sites, talk to their friends, and engage in peer-to-peer feedback to see what people online say about various products.
But that process might be changing even more due to the smartphone.
"The mobile phone is the mall of the future," McSweeney says. "Twitter and Facebook are viable in reaching consumers, but they can't pull them in with that. There are apps like FaceCash, which are mobile debit systems so you can pay for services and goods with your phone. Different apps allow you to search for the best price and then your phone tells you how to get there, or enables you to buy it online. The smartphone is your mall, your wallet and your home office, and that's your tool for life. When people get used to the convenience and realize they have the power now, they'll make the decisions."
Richardson says Gilt Groupe has had tremendous success from apps for both the iPhone and iPad, even offering special sales for those users. "Weekend orders from these devices represent a significant portion of revenue," he says. "And while it's still early, we are seeing men using these devices to shop more than women."
Sales through social media may be on the rise, but social media itself remains inherently a powerful marketing tool. Some companies are figuring out how to increase their brand's message while allowing consumers to have some fun. Levi adopted Facebook's new Social Plugins system so shoppers can tag items they like. And Richardson says Gilt Groupe maintains a very active Facebook page, where co-founder Alexandra Wilkis Wilson recently held a live chat about Mother's Day gifts. Gilt Groupe also has a blog where favorite items are listed, and its "Sites We Love" area alerts readers to engaging blogs like Denimology.
Social sites drive business, McSweeney says. "Polyvore is intriguing because it's a great outlet for influential tastemakers, but retailers can promote brand awareness and get insight into consumers. And it's great for styling and merchandising, and providing a meeting ground for retailers and early adopters of fashion."
Mom-and-pop shops who are not on the front lines of e-commerce, however, need not feel out of the loop. They can invite shoppers to sign up for email alerts. From there, they can create free Facebook pages and Twitter alerts about new product or promotions.
With the avalanche of apps, links, chats, blogs, sites and more, McSweeney reminds retailers: at the end of the day, it still comes down to the merchandise. "You must offer something great. Then you can get into how to reach your consumer. But the product is still number one."