The Retailer Summer Edition 2021

SUMMER 202 1

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5. Retailers who show purpose will shine We can expect to see ethical gifting grow in prominence over the coming months. Consumers are increasingly not only looking for a specific product but also for a retailer with ethics and purpose that align with their own — and the personal nature of gift-giving makes that particu- larly relevant. In a Google survey, 55% of shoppers 5 said sustainability was more important to them than value and quality. Expect to see this attitude informing wishlists and present shopping. Actions: Communicate your brand purpose and values authentically and consistently. It’s important to avoid “greenwashing” (that is, making ethical statements that aren’t backed up by actions), as this tends to push customers away in the long term. Instead, focus on publicising the values that are true to the way you do business. “Search interest in “Christmas gifts” now starts to climb as early as August”. ‘‘

3. Competition between brands is increasing

Discovery behaviour moving online and a wider shift to digital is also creating a more competitive environment, where retailers of all sizes can seek a bigger slice of the market and build customer loyalties. In the past year, depending on the category, 25% to 30% of consumers said they tried a new brand.3 And the vast majority of consumers report they’ll stay loyal in the future: 75% of womenswear and 82% of menswear shoppers who bought from a new brand during the pandemic say they’ll continue shopping with them in the coming six months.4 Actions: Ensure your ads are being seen by the right audience at the right time by using automated tools such as Smart Bidding to optimise your campaign — monitoring click share to ensure you’re not missing out to the competition. Finance teams can empower marketing with a budget that can flex in line with market demand and avoid any sort of artificial cap on growth. If you want to recruit valuable customers this Christmas, now is the time to invest in apps and the marketing strategy behind them. App users generate 3.5 times more revenue than other shoppers and have a higher repeat purchase rate, according to a recent eMarketer study. If mobile isn’t already a priority, it’s never been more important to make that shift —mobile commerce in retail is forecast to pass £100 billion by 2024. Actions: Build app marketing campaigns that identify, recruit, and retain high-value customers. Spend can be alignedwith your key trading periods, creating visibility on seasonal offers and promotions and helping you capture peak demand. 4. Retail apps are going from strength to strength

Becky Power thinkwithgoogle.com/uk

1 Google/Ipsos, U.K., Holiday Shopping Study, n=3,150 (online Britons 18+ who shopped for Christmas in the past two days), Nov. 2020–Jan. 2021. 2 Google Internal Data, U.K., 2020.

3 Google/Trinity McQueen, U.K., n=1,000 consumers per category, Jan. 2021. 4 Google/Trinity McQueen, U.K., n=1,000 consumers per category, Jan. 2021. 5 Google/Basis research, U.K. adults, 2020 (n=4,000)

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