Three Luxury Retailers Shinning on Instagram

They say a picture is worth a thousand words. Add a cool filter in Instagram and it may be worth more. So luxury retailers have taken up on the chance of showcasing offline products in the most popular photo-sharing app in the world.

It’s definitely worth it. With more than 300 million Instagrammers, the social network is a colorful powerhouse, just waiting for fashion retailers to tap into it. And it’s not just the numbers. From Taylor Swift to Robert Downey Jr everyone who’s anyone is walking the red carpet of Instagram.

Along these stars came the most popular and desired luxury brands in the world. With social incentives, aspiring fans can become customers and customers will become brand lovers. So photo sharing on Instagram is a go for brands looking to connect online and offline sales and marketing.

Let’s have a look at these three most effective brands on Instagram:

3. Hermes

Hermes on Instagram

Hermes on Instagram

Hermes is unconventional and creative, focusing on outlining the brand identity without being too pushy. It’s rather “modest” fan base of just over 670k followers shouldn’t be bigger either. After all, Hermes addresses a special kind of audience – the kind that doesn’t come busting doors in look for discounts. They discreetly shop online for $11.300 leisure bicycles and $7.600 bags.

2. Tiffany’s

You’ve spotted that special kind of turquoise and the must-have diamond ring that’s globally recognized. 1.8 million Instagrammers are constantly connected to the stylish social media outlet Tiffany’s employs.

The Instagram page is a mix of colorful illustrations, products showcased in glamorous yet simple and stylish photos and fashion advice from models and designers. The whole philosophy is outlined by Francesca Amfitheatrof, Tiffany & Co. design director: “I believe there is great power in simplicity.” 

Just like its brick and mortar stores, as well as the online store, the Instagram page is a stylish, simple and elegant work of art.

1. Burberry

Burberry is almost unbeatable in terms of using technology to connect to its esteemed audience. Digital retail is so important to Burberry that they’ve designed a flagship store that resembled their website, in 2012. Talk about omnichannel.

Digitally connecting to their customer has been the main ingredient to Burberry’s recent growth and Instagram was not bound to be left behind. The 2.4 million followers can get a glimpse in the lives of the rich and beautiful through Burberry’s Instagram channel.

Models, carefully crafted products and celebrities all mix to give followers, customers and aspiring Burberry product owners, that warm “I’ve got to have this” feeling.

And once that feeling kicks in, the monogramed scarf is just a step away in the online store, ready to be picked up in the closest store. Or sent home. Worry not, there’s free shipping and returns.

Twitter launches “Twitter Offers”, A Way to Drive Social Media Traffic Offline

Twitter seems bullish about its place in the omnichannel retail arena. After hiring Nathan Hubbard, former Ticketmaster president, the company started seriously developing ecommerce features for its users.

It all started with rumors leaked online about Twitter dipping its toes in ecommerce. The news were soon followed by a “buy now” button tested for a while and a few months back the “#AmazonCart” partnership was announced. The Amazon Cart project allowed customers to add Amazon products to their carts by linking their accounts and adding them to their carts via Twitter.

Twitter now launched Twitter Offers, a way for advertisers to drive social media traffic directly to brick and mortar stores. The process is pretty straight forward or Twitter users: they link their credit cards to Twitter, claim rewards from advertisers and then redeem said offers in store.

Twitter offers

Twitter offers

As it seems Twitter sees commerce not just online but offline as well. The vision includes online and offline shopping, social media, Amazon accounts linked to Twitter and … payments.

Long story short: everything Twitter has done so far is outlining a strategy where the company targets more than social media. It’s targeting omnichannel retail as a way to increase its revenue. It has the user base and it’s building the payment infrastructure. Its focus and drive may lead it where Facebook failed – setting foot in commerce land.

 

3 Effective Marketing Methods for Online Retailers

As an online retailer, you probably have your ecommerce site up and running already, quite possibly bringing you some sales and revenue too. At this point in time, you are probably wondering how to increase the sales.

This post will show you three effective methods to achieve just that – grow your website traffic and boost sales.

  1. Pay Per Click Advertising (PPC)

ppc-icon-newThis is an online advertising service provided by all the three major search engines today (namely Google, Yahoo and Bing). The following steps will allow you to start advertising your site online using the PPC method. (You’ll have to repeat these steps for each search engine where you wish to advertise):

  • Open an account
  • Create one or more ads for your site (with text and/or graphics)
  • Enter a list of keywords corresponding to which you wish your ad to be shown
  • Specify your geographic and/or demographic targeting preferences
  • Specify how much you wish to spend/pay each time a user clicks your ad and visits your site
  • Specify campaign duration, spend limits etc.

And that’s it. Within a day or two from the time you finalize your campaign (often faster), the search engine/s will start displaying your ads and the traffic (and sales) will start rolling in.

Of all the web marketing methods this article will cover, PPC advertising is the only method that delivers almost instant gratification. It is also a highly accountable method that provides totally measurable ROI.

You can read up some more on PPC advertising as it relates to online retailers at Entrepreneur.com.

  1. Search Engine Optimization (SEO)

searchSEO is the art and the science of getting your website to show up at or near the top of the results when the prospective buyers of your products search for keywords related to your business and products at various search engines.

High search engine result rankings for the keywords relevant to your products achieved via SEO will almost certainly boost the traffic of potential customers flowing in to your web site, with the resultant increase in sales and revenues.

SEO, however, is not a path that you should tread lightly, for two reasons. First, it is not an easy or a trivial task. In order to be executed successfully and effectively, SEO requires deeply entrenched knowledge, expertise and experience, backed by ongoing study and knowledge update processes. Secondly, if executed in a manner that violates the arbitrarily and rapidly changing best practice guidelines of the search engines in any way, SEO can potentially backfire drastically, causing your site to get blacklisted by the search engines in the worst case scenarios.

To get up to speed with the most current SEO scenario, you can go though this useful 90-slides presentation from Rand Fishkin.

Insomuch as you have an online retail operation going, it is quite likely that your website has been built using one of the several ready-made ecommerce software platforms.

While most of such software platforms provide at least some basic features to facilitate SEO, there are huge differences in SEO features across different platforms.

  1. Social Media Marketing (SMM)

smm-iconSMM, you can say, is the ‘newest kid on the block‘ so far as online marketing is concerned. As you can readily imagine, there are gad-zillions of people (including your potential customers) spending untold numbers of hours everyday at various social networking sites and services like Facebook, Twitter, Instagram, Pinterest etc. And therefore, marketing your online retail business at these social media sites can certainly be a very lucrative way of growing your brand visibility, traffic and sales.

Most of the popular social networks offer their own self-service advertising programs under various pricing schemes and models, including PPC (that we looked at above), with Facebook, as is to be expected, leading the pack in terms of reach as well as ease of use.

And then, there are many third-party services and agencies that help you grow your website traffic and sales using various social media platforms.

You can read this article at the InternetRetailer portal to get interesting information on social media vis-a-vis small retailers.

Online retailing is a highly competitive business so make the most of the tips above to enhance your marketing operations.

Author bio: Catalin Zorzini is the founder of Mostash.com (a digital marketing studio). He likes hot soup and hot jazz.

3 Content Strategies that Work Great for Ecommerce

You’ve chosen the best products for your customers, you’re spending top dollar for advertising and your customer service works great. Yet something seems to be missing. Your online store does not yet stand out. If so, you may be in need of some content marketing.

Now content – this is a rather big word and it may mean lots of things for lots of people. For me, content is about more than keywords stuffed on product descriptions or carefully changing your product title to match whatever Google is into these days.

It’s about your shop’s personality. It’s about standing out and standing up for something. It’s your story to the world.

So let’s have a look at five ways to build great content for your online store:

1. Tell your story. No one cares “About us”.

What do you do when you meet someone? You try to look as interesting, smart and great looking as possible. You wouldn’t just go ahead and show them your ID card and recite a bunch of boring facts about you.

You tell a story.

Ecommerce sites all have a story. At some point someone thought - hey, I can do better than my competitors. They decided to stand for something. Yet most of the times they miss the opportunity to show this. They get lost in boring and useless “About us” statements that fail to transmit anything else than the fact that someone bothered to fill in some words on that page.

Others, however, they make it personal. They tell everyone what they stand for and why should you choose them. Meet Warby Parker:

Warby Parker decided they would have none of that boring “About us” corporate double talk. No sir. They went on and shared everything the company stands for. The history, their social responsibility program, even why they’re named Warby Parker (Turns out they’ve named the company from two characters in a Jack Kerouac book).

The point: tell a story, not just a few facts about the company. After all, your customers are people, not robots.

2. Show them “How To” do it

So you’re selling lots and lots of products. That means you should be some kind of expert on how they could be used. As shocking as you might find this, your customers are probably not.

So tell people how to use your products.

Take Sephora for example: As their online sales grew intensively, they’ve built a special How To’s page. It features videos, inspiration photos and user posted tips on how to best use make up.

Even the products have their own how to’s and user submitted gallery:

How to look good at everything on Sephora. Being a complex product, it gets easier to use with videos and photos.

How to look good at everything on Sephora. Being a complex product, it gets easier to use with videos and photos.

The point: make your customers understand how to use the product. You probably know a bit more about the products than they do.

3. Earn your media. Own your media. Have a voice.

You know who’s the best at saying great things about you? That’s right. You.

Don’t rely on others to say great things about your products. You know they’re great. Otherwise – why would you sell them?

Build a magazine for your niche and stick to it. Explain what your customer should do to look better, feel better, spend better. After all, you have already picked those “whats”. The times where media was owned by large corporations and they alone could make or break your business – those times are gone.

Just go ahead and build a blog and fill it with great advice, just like the good folks at Gilt.com did. The Gilt MANual is a great resource for men interested in fashion. It’s ran by Gilt and very popular.

giltmanual

And Gilt is not the only case where ecommerce sites built their own media outlets. Bonobos publishes great fashion advice on Equateur. Alex and Ani, one of the fastest growing online retailers in the US runs a great blog that showcases events, company news and things customers would take interest in.

The point: start writing and earn media instead of paying for it. It’s a great way to share insights with your customers and build relationships.

The Rise and Fall of Fab.com: A Cautionary Tale for Every Entrepreneur

Fab.com is dying.

fab-broken-heartThe ex-gay Yelp, ex-gay Social Network, ex-gay Amazon, ex-Design Flash Sales site struggles on its death bed. The company’s spectacular rise and fall is a lesson in how to go from rags to riches and back to rags again. It is a story on how growth can sometimes make investors, founders and management oblivious to threats.

I was never a big fan of the concept of flash sales. I covered it, I studied it but I didn’t like it. It is short-sighted way of running online retail operations. It is a great way to create market demand. It may even be a good way to develop customer base. But it will not handle growth forever.

Flash sales need three things to function: good-to-great products, relatively low prices and consumers willing to try overpriced merchandise at a discount. All of these factors come at the expense of two very “un-scalable” variables:

  1. a people based supply chain. To make products available at a discount, someone has to find great products, has to estimate demand for those products and then negotiate purchasing. This is a tricky bit because these guys have to take into account a price that is relatively small but helps the flash sale site turn a profit and and allows the manufacturer to actually ship the product. This is very, very hard work and can be done only by skilled individuals who can evaluate demand, find products, negotiate prices and make sure merchandise is delivered.
  2. a demand based on human wants, not needs. No one needs designer shoes or designer furniture. People need shoes and furniture. Sometimes they want designer shoes because we live in a shallow society that makes people feel that objects buy them happiness. And most business pray on these wants. Flash sales sites promise products that say “I am a successful individual”. They promise brands and designer items at a low(er) cost. As a novelty – it will work for a while (for Fab that meant about 2 years). But customers will eventually want new products, at lower costs.
Jason Goldberg on product curation.

Jason Goldberg on product curation.

None of these variables scale very well, because they are human-based. Fab and especially founder Jason Goldberg, the one taking most of the heat have learned this the hard way.

Of course, it easy for me and other bloggers to watch events unfold and point fingers at who done what and why the business model was wrong. It was a bit harder when Fab.com was getting millions and millions in financing and customers were anxious to find new products and buy on Fab in 2012. 

But this post is not about pointing fingers. It’s about looking beyond the failure, at what lies ahead for Fab.

Fab.com: the road so far

Fab started as a gay community service that reviewed local business. In 2011 it pivoted and went on to offer daily discounts to its users, later on connecting users in a form of social network. As the model didn’t really took off, founders Jason Goldberg and Bradford Shellhammer decided they need to pivot yet again and rethink their market.

As it seems, the duo thought the company was great at a very specific thing and decided to focus on that: design. Specifically: interior design. They re-positioned Fab.com as a source for inspiration and sales of design-related products.

The rise

One can of course notice the stereotypical positioning (being a former gay community) but it nevertheless worked. The response to this new pivot was great. The number of registered users went form 175 000 in June 2011 to 350 000 in just a month. In just 12 days the company sold more than $600k worth of merchandise.

The new Fab.com was available by invite only and when it opened more than 125 000 had already registered to receive offers. The reviews were awesome and in just a short month after the Fab relaunched, Menlo Ventures invested $8 million in the company.

Fab’s usage of social networking and social-shopping features further increased the number of users and sales for the company. In just 5 months since launch (nov. 2011) the company boasted over 1 million registered members. Then came the holiday shopping season and sales skyrocketed. As a result of fabulous sales and increasing media traction, Andreessen Horowitz invested … wait for it … $40 million.

In 2011-2012 Fab was just killing it. Sales reached $100 million

In 2011-2012 Fab was just killing it. Sales reached $100 million

After just 7 months since relaunch, on Dec. 7, legendary Andreessen Horowitz VC’s are chosen by Fab.com founders from 15 willing investors.

At the end of 2012 numbers are in and they show a spectacular growth fueled what went from a 4 people company to a 140 employee design force.

CEO Jason Goldberg then posted on its now gone blog “Betashop” a slideshow detailing the successful year his company had. It shows the brave startup growing from a small yet promising group of passionate people to a company selling in 26 countries, with 10 million members.

In 2012 Fab sold over 4.3 million products. During the holidays that meant a rate of 17 products sold per minute. While other companies still try to cope with the idea of mobile commerce, Fab’s sales in 2012 had 33% of all sales coming from mobile. During holidays, 56% of sales came from smartphones and tablets.

The customer lifetime was great and two out of three purchases came from repeat customers. In 2012 sales grew 600% over 2011 and Goldberg boasted that Fab’s 15.000 products were 33% more than IKEA’s. Fab was the largest design store.

Jason Goldberg's statement on Fab, 2012. Source.

Jason Goldberg’s statement on Fab, 2012. Source.

The fall

In hindsight, past the astonishing numbers, some statements showed something was not exactly right. There was a sense of too much pride: everything Fab was doing was absolutely great and everybody else was just the loser left behind. Jason felt like Fab was the only company with the right attitude and operations. Even Amazon and IKEA didn’t seem like a match for them.

The company was so incredibly self-assuring that it was doing everything internally. In 2012 it employed more than 600 people across the world, it built and operated its IT systems in-house, it even built its own warehouse. How ’bout renting, man?

The 2012 presentation goes on and on about the greatness of Fab, about superstar employees, about the huge vision ahead, about how Fab has to beat IKEA and Amazon at design and deliver more than $30 billion in sales. In the end Jason shows a 6 point plan on how they’ll achieve that:

  1. Have personality
  2. Sell stuff they don’t
  3. Lead on mobile
  4. Lead on social
  5. [Be] global
  6. Be the best company to work for

These 6 points up there - these are the reason Fab failed. What they leave untapped is just what matters. They are all great for rallying the troops but they lack substance. Amazon and IKEA’s steady growth happens from the ground up. The infrastructure these companies rely on to build, handle, ship and sell products – these are their secret weapons.

Marketing is just the illusory panacea startups reach for when hoping it would suffice in their struggle against the big guys. It doesn’t. That’s where they get their smaller competitors.

Retail, even if it happens online, is a logistics game. Walmart, IKEA and Amazon manage to stay on top with a lot of help from their supply chain. Everything moves smoothly behind the scenes and that’s what Fab failed to acknowledge. By spending too much time on social media, mobile and interviews, the management failed to see the large logistic wall that suddenly halted their growth.

In 2013 things got from great to bad and then to awful. The company did raise an additional $150 million in venture capital in July 2013 but as CEO Jason Goldberg these were definitely not great news:

“What a lot people don’t know is that we set out to raise $300 million. […] And when you set out to raise $300 million, and you raise $150 million, you have to change your business plan. And that’s what we did.”

Jason Goldberg

The change of business plan meant a lot of things that hurt the company’s credibility. Layoffs throughout its offices left employees unhappy. The company had to reconsider its position. At the turning point it was burning through $14 million each month and still not reaching sales projections.

Fab.com traffic dropped abruptly. Source

Fab.com traffic dropped abruptly. Source

The job cuts took Fab from more than 750 employees to less than 380 at the end of 2013. It started in Europe and than spread through its offices. Every office was restructured to help the company reach a balance point. It didn’t. Even C-level executives had to take a hit. It’s unclear if they left willingly or have been laid off but Co-founder Bradford Shellhammer and COO Beth Ferreira left the company.

Meanwhile traffic came down abruptly and so did sales. The company was heavily relying on ad spending to reach customers. Its 2012 marketing costs were $40 million. In 2013, the figure dropped to $30 million. But as the chart on the right shows – that was not the only factor that lead to the drop in traffic and sales. People were just not interested in Fab’s products anymore. Buzzwords and social media didn’t cut it anymore.

Fab.com's traffic dropped both on the web and mobile. Source.

Fab.com’s traffic dropped both on the web and mobile. Source.

Hem.com – The rebirth?

hemAll these bad news took the company by storm. A lot of people took shots directly at Goldberg for shifting focus, delaying layoffs and generally the could-be death of Fab.com. It was not surprising: he was the one taking the spotlight when Fab was growing, he would be the one taking the heat for the fall.

The media took turns at hitting Fab.com whenever it could and it was obviously an easy task. There were plenty of laid-off employees out there to leak inside info about how bad the company was being ran. They were jobless, pissed-off and needed someone to take the blame.

How could a company with $336 million in funding fail so bad? Where did the company on everyone’s lips go? What happened with all that value investors just …  lost?

All these questions left out some seemingly uninteresting investments Fab was running in Europe. While dealing with layoffs, decreased sales, management layoffs and media hits, Fab acquired custom furniture companies MassivKonzept and One Nordic Furniture Co..

By doing so the company combined the MassivKonzept’s mass customization tools and One Nordic Furniture Co.’s talent and technology. The new company took over Fab’s sales in Europe and now leverages Fab’s customer base, experience and of course – cash.

jason-goldberg-techFab’s European venture received the name Hem (Swedish for “Home”) and now employs 150 employees in Berlin, Helsinki, Warsaw and Stockholm. Some of them are previous Fab employees, some are new hires.

Hem is a designer, manufacturer and retailer and it is an integrated company. It is the technology company that Jason Goldberg wanted to build for a long time.

But most importantly, Hem is something Fab never was: its own company. An unique organization that goes beyond comparing itself to others. It is not the Amazon of Europe or the IKEA of online. It is Hem. It allows its customers to build custom, beautiful furniture and products for the home and it can now deliver on this promise. It seems to be a company that may lack sales and the buzz Fab had but it has something more important: purpose and substance.

It seems that a more mature Jason Goldberg has finally decided to leave marketing and PR aside and focus on building a real company. An unique company that goes beyond buzzwords and solves real problems, in a real environment, where the team is not made of superstars but rather a group of passionate people that put the product ahead of their own egos. And it started with its leader.

I believe Hem has a bright future, unlike Fab. It is built to last, just like its products. I must say that when I set out to write this post, it was going to be yet another bashful take on Fab’s fall. But the more I read about it, the more I found about Jason and his company and the more personal it felt. And a lot of it resonated through this interview he gave at TC Disrupt. A sense of grit and humility echoed through this talk. As an entrepreneur I know what it feels to fail. I too made mistakes and I too delayed laying off people. I too mistook marketing for product and company development. I too believed sky was no limit and failed. So there is a lot of Jason’s actions that I get from being in a similar, yet smaller scale, place.

Yes, Fab is dying and it’s a great thing. Hem now takes its place and it has the potential to be a far better company. In the end this might be not a cautionary tale of entrepreneurship gone bad but a lesson in resilience and willingness to adapt.

Jason Goldberg took some courageous steps into transforming the company he’s built and it will probably pay off in the future. After all, he runs a company that is pretty close to break even, with $120 million in the bank and a large customer base. And now it has a real business model. How hard can it be?

Using the Mobile Revolution for Marketing

We’re reaching that point in the world where technology has evolved to a micro-level. Computers that used to be the size of large walls are now as sleek and light as a stack of papers, and what was once a brick-sized mobile phone has become the size of a small child’s palm. By now, computers are practically mobile phones.

US teens mobile usage. Source: Nielsen

US teens mobile usage. Source: Nielsen

More people in America use and own mobile phones than toothbrushes. Fifty-four percent of these phones are smartphones, and by 2017, there will be over 10 billion mobile devices. As mobile traffic rises, so too does the need for mobile apps. With 90% of Tweets and 40% of Google searches coming from mobile phones, the way to get and spread day is becoming handheld. While two years ago most of this traffic was coming from teens with cell phones (teens increased mobile consumption in 2012 by 256%, with the standard teen sending an average of 3339 texts per month), mobile usage has extended far beyond teens. Most recently, with the continual creation of mobile apps reaching out to various targeted consumers, many companies have begun a new form of marketing for the mobile online shopper.

In fact, four out of five consumers use their smartphones to shop, and the majority claim that shopping from their phones is more enjoyable than shopping in person. No more long lines, parking tickets, unnecessary purchases, or exhausting traffic jams – consumers can buy what they want, when they want, how they want. And it gets shipped straight to their homes. 56% of consumers use their smartphones to search for a store’s location and directions, 51% to look up product information, 59% to do price comparisons on products, 45% to write up product reviews, and 41% to search for coupons. Smartphones make shopping easy and reliable, even more so than shopping in person. With many stores creating apps or green “Buy Now” buttons, shopping no longer requires physical salesmen.

Not only do mobile apps make shopping easy, but it also allows for information about products to be spread more reliably. 78 – 84% of consumers rely on social networks when researching new products. By 2015, it’s predicted that the amount of goods and services consumers purchase through their mobile phones will total roughly $119 billion. Mobile coupon usage is expected to rise to 53.2 million, and retailers say that 67% see a greater value in having their customers use mobile apps to shop rather than shopping in person. Overall, mobile apps bring five times more engagement – both in the product being sold and in the dialogue between targeted consumers.

Ivan Serrano is a web journalist and infographic extraordinaire from Northwest California. He particularly likes to write about the technology world, social media and global business. 

There’s no Place Like 127.0.0.1

When it comes to computers, 127.0.0.1 is the “localhost”. In computer networking the local host is “this computer”. Or home. We have a changing landscape in computer usage (shift to mobile) and we notice the same trend in human behavior. People change places more than before. Decreased cost in transportation and relocation means we can move from one place to another without much hassle.

Our home when we're away

Our home when we’re away

But there is no place like home, right? Well – what is home? Apparently our digital hubs have become our homes when we are on the move. Social networks are now our go-to place when we want to connect with our friends, even when we are away. Photo sharing apps like Instagram or Flickr store our memories and we can access them on the fly whenever we are away.

Even our local shop gets replaced by the increasingly present favorite online shop brand. There is a pattern that shows mobile buyers (those that change residential areas) are more prone to purchasing online and staying loyal to their favorite online store brand:

“For example, customers at Diapers.com who change locations become more or less likely to shop online, depending on the increase or decrease in their offline shopping costs in their new neighborhoods. Specifically, shoppers who have some experience shopping online and then move to a new location with homes with more storage capacity and relatively few stores will increase their online shopping activity.” Source: MIT Sloan Review

We, human beings, do not enjoy change all that much. In a fast moving world – we need stability. We need a fixed point. And after all it is all relative. If we’re constantly on the move – the only fixed point is that which moves with us or is everywhere around. Brick and mortar stores are fixed and therefore always moving for the traveler. Our fixed point is in the cloud. Our fixed point is the mobile.