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Richemont’s costly e-commerce investments lead to a tenuous boost

Glossy – In 2018, French luxury group Richemont made some major investments into the e-commerce space, acquiring Yoox Net-a-Porter and pre-owned watch seller Watchfinder, and now there’s some indication as to how those investments are paying off. On Friday, Richemont released its annual earnings report for fiscal 2019, showing what acquiring these two companies had done for Richemont as a whole.

The short version is that Net-a-Porter and Watchfinder, which Richemont chairman Johann Rupert referred to as “our online distributors,” have been significant boosts to the company’s overall earnings, but have only begun to justify the massive costs associated with acquiring and operating them.

“It is rare to find retailers that are exclusively physical or online, as consumers expect both,” said David Naumann, vp of marketing at Boston Retail Partners. “Richemont’s investment in luxury e-commerce companies has been a great way to diversify its portfolio from brand, product category and channel perspectives.”

Read Full Article: Richemont’s costly e-commerce investments lead to a tenuous boost 

BRP Report: Consumers Want Personalized, Consistent Experience Across Channels

Convenience Store Decisions – Consumers want a personalized and consistent experience across channels, but according to BRP’s (retail consulting firm) 2019 Unified Commerce Survey of top North American retailers, only 28% of retailers offer a shared cart across channels. Consumers now start and stop their shopping journey in different channels, including online marketplaces and social media, and frequently shop for the same product across different retailers, both online and in the store.

Consumers expect a frictionless shopping experience across an entire brand and they don’t want disruptions as they cross individual channels or locations. In fact, according to the recent BRP Consumer Study, 87% of consumers are interested in a personalized and consistent experience across channels. Today’s consumers expect their experience to be seamless as their “shopping cart” and browsing history follows them throughout their journey.

“The growth of online and mobile is driving the demand for increased digital capabilities bundled with personalization across all channels,” said Perry Kramer, senior vice president and practice lead at BRP. “To succeed in this demanding environment, retailers must undergo a transformation as they move to a true unified commerce approach to deliver the convergence of the digital and physical shopping experiences and create a holistic customer shopping experience.”

Read full article: BRP Report: Consumers Want Personalized, Consistent Experience Across Channels

Kering hopes to push industry towards sustainability with new standards

Luxury Daily – As traditional luxury brands strive to become more transparent about their sustainability practices, French luxury conglomerate Kering is the latest to introduce new standards regarding animal welfare.

Today’s shoppers, including the highly coveted millennials and Gen Zers, are becoming more vocal about their preference for sustainable brands, and many high-end brands are emerging to fill this consumer need. Meanwhile, groups of heritage labels such as Kering need to balance their identity as luxury businesses while moving in more eco-conscious directions.

While Kering hopes to lead by example regarding sustainability in luxury, other players in the industry have also revealed more stringent sourcing guidelines.

“Consumers are reading labels to learn about the source of the materials in products and often make purchasing decisions based on the sustainability standards of the product,” said David Naumann, vice president of marketing at BRP, retail consulting firm. “Transparency in material sourcing is a becoming a new customer expectation and retailers are realizing the importance of aligning with higher standards for the source of materials and the environments for the animals that are used in products.”

“Ideally, there should be an independent organization that monitors and certifies farmers and manufacturing plants for ethical and sustainable practices to make it easy for consumer to know if a brand or product is in accordance with consistent standards,” Mr. Naumann said. “Brands that truly ‘walk the talk’ on these environmental issues will foster more brand loyalty among environmentally conscious consumers.”

Read Full Article: Kering hopes to push industry towards sustainability with new standards

How to Use Email Marketing Segmentation to Grow Your Business

Business 2 Community – If you asked customers what’s the one thing they want more of from retailers, they’d say personalized customer experiences. Customers don’t want to be seen as nameless faces in a sea of people; they want to be treated as individuals.

Ken Morris, Principal at Boston Retail Partners, explains personalization this way, “Effective customer engagement requires retailers to offer a personalized, relevant, compelling and consistent experience across channels.” He continues, “In today’s crowded and highly competitive market, personalization is a critical component for optimizing the customer’s shopping experience.”
Read Full Article: How to Use Email Marketing Segmentation to Grow Your Business

How luxury retail can leverage live streaming for consumer engagement

Luxury Daily – As live streaming becomes an increasingly popular practice in China, Western labels and retailers are catching on to the tactic as a means of driving real-time interactions with consumers.

Acting as a digital, influencer-driven version of home shopping television networks, live streaming enables brands to showcase products and stores through personalities. As more luxury shopping moves online, live video offers a way to connect the physical and the digital, enabling shoppers to get feedback and make more confident decisions.

“Live streaming in retail is essentially the intersection of QVC and HSN TV experiences with live events that are delivered via online and mobile devices,” said David Naumann, vice president of marketing at BRP, retail consulting firm.

“Many consumers have a desire to be the first to have the latest fashion or product, and this passion for immediate gratification makes live events and live streaming appealing for consumers and hence retailers,” he said. “Live streaming is real-time retail in spades.”

“Live streaming creates a sense of urgency that helps stimulate impulse buying, especially if the products are only available for a limited number of minutes or there is a countdown on the number of items available,” Mr. Naumann said. “The limited availability of products is a great way to enhance a brand’s exclusive image.

“For brands that are looking to create a buzz and increase the engagement of their customers, live streaming may be worth testing,” he said.

Read Full Article: How luxury retail can leverage live streaming for consumer engagement

Survey: Retailers lag meeting key omnichannel expectations

Chain Store Age – A new survey from BRP, retail consulting firm, reveals that retailers are behind in adopting several critical omnichannel capabilities. According to BRP’s 2019 Unified Commerce Survey, 87% of consumers are interested in a personalized and consistent experience across channels. However, only 71% of retailers plan to offer the ability to “start the sale anywhere, finish the sale anywhere” to their customers.

Similarly, while 68% of consumers would choose a store that offers personalized promotions/discounts over a store that doesn’t offer them, a matching 68% of retailers need to improve their ability to utilize customer insight to meet their customers’ expectations.

About two-thirds (64%) of consumers choose a store based on product information availability via their mobile device. But only 41% of retailers plan to improve the mobile experience to ensure they are meeting their customers’ expectations.

“The growth of online and mobile is driving the demand for increased digital capabilities bundled with personalization across all channels,” said Perry Kramer, senior VP and practice lead at BRP. “To succeed in this demanding environment, retailers must undergo a transformation as they move to a true unified commerce approach to deliver the convergence of the digital and physical shopping experiences and create a holistic customer shopping experience.”

Read full article: Survey: Retailers lag meeting key omnichannel expectations

87% of Consumers Indicate an Interest in a Personalized and Consistent Experience Across Channels, According to New BRP Report

Only 28% of Retailers Currently Offer a Shared Cart Across Channels

Boston, MA – May 7, 2019– Consumers now start and stop their shopping journey in different channels, including online marketplaces and social media, and frequently shop for the same product across different retailers, both online and in the store. Consumers expect a frictionless shopping experience across an entire brand and they don’t want disruptions as they cross individual channels or locations. In fact, according to the recent BRP Consumer Study, 87% of consumers are interested in a personalized and consistent experience across channels. Today’s consumers expect their experience to be seamless as their “shopping cart” and browsing history follows them throughout their journey.

“The growth of online and mobile is driving the demand for increased digital capabilities bundled with personalization across all channels,” said Perry Kramer, senior vice president and practice lead at BRP. “To succeed in this demanding environment, retailers must undergo a transformation as they move to a true unified commerce approach to deliver the convergence of the digital and physical shopping experiences and create a holistic customer shopping experience.”

BRP’s 2019 Unified Commerce Survey of top North American retailers offers insights into the forces affecting the retail industry, the opportunities available for retailers and the future of retail.

The key findings in the 2019 Unified Commerce Survey:

The Mobilization of Retail

  • 64% of consumers choose a store based on product information availability via their mobile device
  • 41% of retailers plan to improve the mobile experience to ensure they are meeting their customers’ expectations

The E-Commerce Effect

  • 81% of consumers purchase online at least once per month and 89% browse online at least once per month
  • 71% of retailers plan to offer a live chat option on their website to enhance the online shopping experience within two years

The Changing Customer Experience

  • 68% of consumers would choose a store that offers personalized promotions/discounts over a store that doesn’t offer them
  • 68% of retailers need to improve their ability to utilize customer insight to meet their customers’ expectations

The Need for Unified Commerce

  • 87% of consumers are interested in a personalized and consistent experience across all channels
  • 71% of retailers plan to offer the ability to ‘start the sale anywhere, finish the sale anywhere’ to their customers

The Future of Retail

  • 57% of consumers would choose a store offering an automated returns process over one that doesn’t offer it
  • 38% of retailers plan to offer an automated returns process within two years to offer more self-service opportunities

To download the complete Unified CommerceSurvey, visit:

https://brpconsulting.com/download/2019-unified-commerce-survey/.

The Unified Commerce Survey platinum sponsors are enVistaand Kiboand the gold sponsors are Aptos, ECRSand Fujitsu, LS Retail, and PCMS.

About BRP

BRP is an innovative retail management consulting firm dedicated to providing superior service and enduring value to our clients. BRP combines its consultants’ deep retail business knowledge and cross-functional capabilities to deliver superior design and implementation of strategy, technology, and process solutions. The firm’s unique combination of industry focus, knowledge-based approach, and rapid, end-to-end solution deployment helps clients to achieve their business potential. BRP’s consulting services include:

Strategy | Business Intelligence | Business Process Optimization | Point of Sale (POS)
Mobile POS | Payment Security | E-Commerce | Store Systems and Operations | CRM
Unified Commerce | Customer Experience | Order Management | Networks
Merchandise Management | Supply Chain | Private Equity

For more information on BRP, visit http://www.brpconsulting.com.

[1]2019 Consumer Shopping Habits – The Generation Gap, April 16, 2019, https://brpconsulting.com/download/2019-consumer-shopping-survey/

Consumers Shop Differently – The Generation Gap

While the shopping journey varies depending on the customer, product and even season, there are similarities within generational groups. Digital Consumers (ages 18-37) have higher expectations for the retail experience than Traditional Consumers (ages 38+) and embrace the use of technology to make their research and buying process more convenient. Traditional Consumers are more focused on the basics of finding their desired product at the right price.

BRP surveyed 1,298 U.S. consumers to identify how and where they prefer to shop and which factors influence their shopping journey. The findings of the survey are covered in the 2019 Consumer Shopping Habits – The Generation Gap report.

As retailers plan their in-store, online and mobile shopping experience strategies, it is imperative that they align with the desires of their target audiences. Making every experience a positive one is also key, as nearly two-thirds of ALL consumers will stop shopping at a retail brand after one unsatisfactory experience.

DIGITAL CONSUMERS (ages 18-37)

As Digital Consumers research products, they seek out consumer reviews to make more educated purchase decisions. When choosing a store, 65% want the ability to receive personalized recommendations and 65% prefer the ability to pay via a mobile wallet or retailer app. Receiving merchandise quickly is important with same day delivery a reason to choose a store for 77% of these consumers. Digital Consumers are more likely than Traditional to share feedback on social media for both exceptional and unsatisfactory shopping experiences.

TRADITIONAL CONSUMERS (ages 38+)

Traditional Consumers focus on the basics when they shop – product availability and competitive pricing. While shopping for products, 63% choose a store based on the associates’ ability to order out of stock products. While they are more tolerant on the timing of deliveries, 86% will choose a store with free delivery over one that doesn’t offer this service. Traditional Consumers rarely share feedback on social media for any shopping experience, but for unsatisfactory experiences, 64% will contact the retailer to share their dissatisfaction.

For more information on the generation gap between Digital and Traditional Consumers, download the 2019 Consumer Shopping Habits – The Generation Gap report:

https://brpconsulting.com/download/2019-consumer-shopping-survey

I hope you enjoy this report.  Please share your comments below.

David

Ease of Checkout, Payment Top Consumers’ Shopping List

Convenience Store Decisions – Retailers are adding to POS capabilities now while planning eventual move to cloud-based commerce platforms. According to a new report released last week by Boston-based retail consultant BRP, brick-and-mortar stores are standing up to the seemingly massive shift to online commerce. The key, the report suggests, is in the ease of the shopping and purchasing experience.

According to the report, “SPECIAL REPORT: The State of Store Technology,” the store is still a major part of the customer journey with 79% of consumers indicating they frequently purchase merchandise in a store. With an increased focus on customer engagement and the convergence of physical and digital, the point of sale or commerce platform plays a critical role in shaping the customer shopping experience. The right technology foundation is essential to support the best in-store customer experience.

“Stores remain center stage in the shopping experience, and that experience is an ever-increasing factor in where consumers choose to shop,” said Brian Brunk, principal at BRP (retail consulting firm). “Retailers understand the importance of keeping up with customer expectations; in fact, 75% are considering cloud-based platforms as part of their in-store technology plans over the next several years.”

BRP’s “SPECIAL REPORT: The State of Store Technology” is based on findings from the BRP Consumer Study and the “2019 POS/Customer Engagement Survey” and offers insights into the state of retailers’ current store technology and their future plans.

Read Full Article: Ease of Checkout, Payment Top Consumers’ Shopping List

Influentials: Top Movers and Shakers in Retail 2019

RIS News – The retail industry touches the lives of everyone on a daily basis. Filled with innovative technology in a rapidly changing landscape, retail is constantly on the move ― and its success is impossible without knowledgeable leaders working hard to evolve the industry and steer the ship into the future.

RIS’ third annual “Influentials: Top Movers and Shakers in Retail” highlights the retail executives, analysts and solution providers that are shaping the retail landscape and developing and deploying cutting-edge technology.

The executives featured below were chosen for their contribution to the retail industry and their respected companies. Whether they are launching a new retail venture, innovating cutting-edge technology, or helping set the retail agenda, these exceptional leaders are pioneering the entire industry forward. To compile this list, RIS interviewed each executive to uncover the keys to their success and the technological innovations they have helped bring to the market.
Read on to find out more of what makes each of these leaders a retail tech influencer and one of RIS’ Top Movers and Shakers.

KEN MORRIS, PRINCIPAL, BRP
Throughout his four decade career in retail technology, Ken Morris has held IT leadership positions at leading retail companies and his consulting expertise has helped hundreds of retailers solve business and IT problems.

Prior to founding BRP (retail consulting firm), this industry thought leader was CEO and president of LakeWest Group and founder of CFT Consulting and CFT Systems, a retail software company. Earlier in his career, he held retail information technology executive positions at Lord & Taylor, Filene’s (Macy’s), Talbots, Stop & Shop Supermarket Company, and Sears.

Morris said his biggest accomplishment has been that he designed, built and owned the largest lost prevention solution, XBR, before selling it to Micros/Oracle. He also founded and built best-in -class retail management teams – BRP and CFT Consulting.

BRP is working with several retail clients that are implementing augmented reality at stores with visual products, like furniture, making this innovative technology a game changer in the retail customer experience. He’s also working on real-time retail.

“Today’s retail model is moving beyond omnichannel by breaking down the walls between internal channel silos and leveraging a common commerce platform with a single order management system to deliver a holistic, real-time, personal, seamless experience,” Morris notes. “The importance of real-time visibility and access to product and customer information across channels has grown significantly over the past few years as it drives significant benefits to retailers and consumers.”

Morris says if he could change one thing in retail, it would be to get retailers to invest in infrastructure.
“Retailers have notoriously been reluctant to invest in infrastructure, because they are too focused on quarterly results,” he notes. “Where would we be as a country if we didn’t invest in railroads and highways? Retailers should apply the same long-term approach to their technology strategy.”

Read Full Article: Influentials: Top Movers and Shakers in Retail 2019

Downloads

2019 Unified Commerce Survey

87% of Consumers Want a Personalized and Consistent Experience Across Channels

Consumers now start and stop their shopping journey in different channels, including online marketplaces and social media, and frequently shop for the same product across different retailers, both online and in the store. Consumers expect a frictionless shopping experience across an entire brand and they don’t want disruptions as they cross individual channels or locations. In fact, according to the recent BRP Consumer Study, 87% of consumers are interested in a personalized and consistent experience across channels.

BRP’s 2019 Unified Commerce Survey of top North American retailers offers insights into the forces affecting the retail industry, the opportunities available for retailers and the future of retail.

The key findings in the 2019 Unified Commerce Survey:

The Mobilization of Retail

  • 64% of consumers choose a store based on product information availability via their mobile device
  • 41% of retailers plan to improve the mobile experience to ensure they are meeting their customers’ expectations

The E-Commerce Effect

  • 81% of consumers purchase online at least once per month and 89% browse online at least once per month
  • 71% of retailers plan to offer a live chat option on their website to enhance the online shopping experience within two years

The Changing Customer Experience

  • 68% of consumers would choose a store that offers personalized promotions/discounts over a store that doesn’t offer them
  • 68% of retailers need to improve their ability to utilize customer insight to meet their customers’ expectations

The Need for Unified Commerce

  • 87% of consumers are interested in a personalized and consistent experience across all channels
  • 71% of retailers plan to offer the ability to ‘start the sale anywhere, finish the sale anywhere’ to their customers

The Future of Retail

  • 57% of consumers would choose a store offering an automated returns process over one that doesn’t offer it
  • 38% of retailers plan to offer an automated returns process within two years to offer more self-service opportunities

Personalization is Key to Customer Loyalty

Personalization is Needed to Compete Against Amazon

As consumers become more technologically savvy and have access to better information, there is a widening gap as retailers struggle to meet consumers’ escalating expectations. Personalization is one of the best ways to create and maintain a connection with the brand’s most valuable and loyal customers. The 2018 Special Report – Personalization is Key to Customer Loyalty identifies how retailers are personalizing the shopping experience for their most valuable customers.

“Personalization is the best way for retailers to enhance the customer experience, especially for those customers who are already invested in your brand,” said Perry Kramer, senior vice president and practice lead at BRP. “Identifying and rewarding your most valuable customers with personalized offers and services is imperative to cultivating loyal, brand enthusiasts.”

The key customer loyalty trends identified in the study include:

Customer Identification and Incentives – To engage with customers on a personal level requires retailers to identify the customer early in the process at any touch-point.

• 53% of retailers extend specialized offers to encourage customers to identify themselves with personal information

Most Valuable Customers – With 80% of a retailer’s business typically coming from 20% of its customers, identifying your most valuable customers and understanding their shopping habits is critical to cultivating loyal, brand enthusiasts.

• 77% of retailers identify their most valuable customers, however, 69% of those feel the process needs improvement

Personalizing the Experience – Retailers that identify customers when they enter the store and equip their associates with the proper mobile tools can personalize the shopping experience based on customer context.

• 69% of retailers that identify their most valuable customers share this information with their associates, which represents missed opportunities for the 31% who don’t share customer information with associates.