Digital advancements have changed all aspects of the fashion industry, which leaves brands facing more danger now than ever. As the industry evolves, brands face an era of Darwinism, forced to adapt or face extinction. As the managing partner for an agency that specializes in fashion brand clients, we talk to business owners on a daily basis, and even some of the largest brands are finding themselves struggling to implement a solid digital business strategy. This often leaves them at the mercy of third-party platforms, like Amazon, which continues to grow due to the collection of consumer data.
Amazon is one of the biggest online retailers and has grown exponentially over the past 20 years. When Bezos attended his first Met Gala in 2012, it marked Amazon’s foray into the world of fashion. And Bezos has big plans for its expansion into fashion e-commerce. This fact makes the giant seem impossible to beat, but that doesn’t mean other fashion e-commerce retailers can’t keep up.
According to McKinsey & Company, "By 2025, annual consumption in emerging markets will reach $30 trillion -- the biggest growth opportunity in the history of capitalism." This leaves a lot of room for new fashion brands to penetrate the market in the next 3-5 years. Take what you can learn from Amazon, and use the insights as an opportunity for growth and change within your own brand.
Here are some key elements to focus on:
Create a data-driven digital marketing strategy.
Digital advancements have changed us into beings of instant gratification. But most of us don’t realize that these fast results aren’t necessarily effective, and definitely aren’t permanent. In order for brands to succeed in this digital era, they need to focus on data-driven digital marketing strategies committed to growth, not quick, short-term gains.
Entry barriers to fashion e-commerce are far more complex and challenging than traditional retail. Amazon’s approach to fashion is largely based on data-centric trend forecasting. With access to an immense amount of consumer data, Amazon has a huge advantage over brands that don't yet understand the importance of collecting and analyzing their own consumer data from day one.
Having the ability to interpret data in the right way can help brands identify and monitor important performance indicators such as how many of their visitors are reaching checkout and then abandoning their carts.
These insights can help a brand find ways to improve its website and run win-back email marketing campaigns, which can improve the long-term value of its customers.
Build a strong online brand.
A strong identity is one way to survive in the world of Amazon. In this digital age, it's impossible to stay relevant without an online identity, and a strong presence will put you at the top of consumers’ minds. According to research, digital interaction influences 70% of purchases. You can see how building brand perception is just as important as driving traffic to your website.
Make sure your brand has a visually appealing website and is driven by quality content that has the ability to connect with consumers on an emotional level. Online shoppers will quickly observe the aesthetics of your website to determine the value of your brand. Research shows that the attention span of digital users has dropped to that of a goldfish. This gives you about eight seconds for your brand to make an impact, which contributes directly to your overall brand perception, affecting whether a consumer will shop from you now or in the future.
Ensure a quality customer experience for customer acquisition and retention.
A big part of fashion purchases, whether online or offline, is determined by a high level of customer service standards. One of the top reasons people love shopping on Amazon is that it makes them feel secure: The shopping process is easy, quick and fun, and consumers know they can count on high customer service standards should anything go wrong.
Pay attention to the customer service strategies Amazon has implemented, and use them to your brand's advantage. A lot of research and thought has gone into the way Amazon sells to and interacts with the consumer, so take notes.
Implementing customer service standards such as user-written reviews is among the many ways you can gain trust in the eyes of the shopper. Quality reviews on your website give shoppers a sense of security, one that they have become accustomed to by shopping on Amazon. Make the review process easy, and offer some incentive for your shoppers to share their positive experiences.
Another customer service standard brands cannot afford to ignore is free shipping and free returns. This is something that will have to be accounted for when setting up your pricing strategy. However, it will have a significant impact on your consumer's purchase decisions.
Stay focused, and understand that Amazon is not untouchable.
Amazon is making waves. But when it comes to finding trendy and affordable fashion online, the e-commerce giant is not untouchable.
In a 2011 Wired interview, Jeff Bezos shared his insights on the importance of sticking to a long-term business growth plan: “Our first shareholder letter, in 1997, was entitled, 'It’s all about the long term.' If everything you do needs to work on a three-year time horizon, then you’re competing against a lot of people. But if you’re willing to invest on a seven-year time horizon, you’re now competing against a fraction of those people, because very few companies are willing to do that.”
Amazon may be a leader of the Fourth Industrial Revolution, but it still needs to pay attention to emerging competitors. There is still plenty of room within retail e-commerce for brands to generate revenue. Amazon’s attention to the market and its success in adapting to the digital landscape has made it what it is today, and we can learn from that success and apply it to grow our own brands. Be committed to your growth, and your brand will find success.
