SPECIALTY RETAIL 2015 - Member Login | Gartner · Specialty Retail (n=73) Percentage of Bands with Given Feature in Q3 2015 ... SOCIAL MEDIA 10% METHODOLOGY FACEBOOK: Reach, Engagement,

SPECIALTY RETAIL 2015NYC BREAKFAST | OCTOBER 6, 2015

2

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intelligence firm that benchmarks

digital performance.

mailto:[email protected]?subject=Industry Membership

3

Where are you today? What you need to do to get better? How to hold

teams/vendors accountable?

BUSINESS INTELLIGENCE FOR DIGITAL

RESEARCH BENCHMARKING EDUCATION


4

UPCOMING RESEARCH

SOCIAL PLATFORMSIntelligence Report:

BEAUTYDigital IQ Index®:

BIG BOXDigital IQ Index®:

FASHIONDigital IQ Index®:

MOBILE

Intelligence Report:


5

UPCOMING EVENTS

BREAKFAST

FASHIONNew York

November 12th

BREAKFAST

BEAUTYNew York

December 8th

BREAKFAST

SOCIAL PLATFORMSNew York

October 22nd


6

C L I N I C / T I S H M A N A U D I T O R I U M , T H E N E W S C H O O L , N Y C

N O V E M B E R 3 , 2 0 1 5 / 8 : 3 0 A M – 1 2 : 3 0 P M


7

STRATEGY MODULES

Social Content

& Strategy

Video Localization

The Digital

Organization

Omnichannel

Retail

Data & Targeting

Modules blend deep category insights with brand specific data to

identify opportunities


INTRODUCTION

SPECIALTY RETAIL 2015

9

United States, 2009-2019E

Apparel & Footwear Specialist Retailers: Value Sales vs. Selling Space

CRUSHED

60.0

62.0

64.0

66.0

68.0

70.0

72.0

74.0

76.0

78.0

80.0

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

2009 2010 2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E

Se

llin

g S

pa

ce

(in

m2

mill

ion

s)

Va

lue

Sa

les

(in

US

D b

illio

ns)

Value Sales Selling Space

Future growth is projected to dip to +0.8% CAGR as retail closures continue to constrain physical selling space, which has remained flat for the last three years.

Source: Euromonitor International, June 2015.

+4.1% CAGR +0.8% CAGR


10

Multiple brands from 2014 Index are exiting category…

PIVOT


11

2004-2014, n=295 retail locations

Tiffany & Co: Store Opening by Region

STATIC STORE FOOTPRINT (AT HOME)

0

50

100

150

200

250

300

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Other Europe Asia-Pacific Japan USA

83 percent of new retail locations launched since 2011 were opened abroad.

Source: Annual Report (10-K), March 20, 2015.


12

n=17 publicly traded organizations with complete data broken down by region

United States, FY 2013 - FY 2014 (unweighted average)

Retailers: Sales Growth by Channel vs. Brick & Mortar Investment

POST-EXPANSIONIST PLANNING

+2.3%

+6.3%

+26.2%

Retail Footprint ($)

U.S. Retail Sales ($)

U.S. Web Sales($)

Year-over-year growth of direct web sales continue to outpace net revenues in North America by 4x and absolute change in retail footprint by 11x.

Source: Annual Reports (10-K) & Internet Retailer.

(#)


13

69%

48%

62%58% 60%

55%

89%

38%

16%

Buy Online, Return In-Store Check In-Store Stock Status Buy Online, Pickup In-Store

Department Stores(n=58)

Big Box(n=62)

Specialty Retail(n=73)

Percentage of Bands with Given Feature in Q3 2015

Cross-Sector: Omnichannel Investments by Retail Vertical

CATEGORY LAGGING PEERS

Source: L2 Inc.


14

Pure Play E-Tailers vs. Omnichannel Retailers

Retail: Value Chain of Online Sales by Sales Model

OMNICHANNEL EQUATION

Source: ICSC, October 2014.


15

United States, Q1 2015 – Q2 2015

Share of E-Commerce Orders by Acquisition Channel (All Industries)

BORING = SEXY

Source: Custora, Q2 2015.

23%

21%

17% 17%16%

5%

1% 1%

OrganicSearch

Direct Paid Search Affiliate E-mail Other Social Display


16

January 2015

Client-Side Marketers, Worldwide

Primary Area of Focus for Improving Customer Experience

PERSONALIZATION TOP OF MIND

4%

5%

7%

10%

12%

29%

33%

Mobile-friendly

Expedited process

Fun and fulfilling experience

Security and reliability

Consistency across channels

Consumer value

Personalization and relevance

Source: Econsultancy, January 2015.


17

February 2015

Availability & Usability of Data for Personalization

A THIRD, A THIRD, A THIRD

35%

33%

32%

Source: FitForCommerce, “Let’s Get Personal: Omnichannel Personalization in a Hyper-Connected World,” February 2015

We have data, it’s not usable, and we don’t know how to use it

We don’t have enough data

We have data, it’s usable and we know

how to use it


18

Success of Fast Fashion is more than just merchandising

EARLY WINNERS: FAST FASHION


19

IF YOU CAN’T BEAT ‘EM…

Reserve Items In-

Store Only via App

Personalized “My

AEO” Offers Inbox

AERewards Card

Links to Passbook

Push Notifications

for Timely Offers

Halfway through 2015, American Eagle returned to positive sales growth (+11%), benefiting from expanded fashion variety and decreased inventory turnover driven by personalized offers and increasing omnichannel capabiltiy.


METHODOLOGY


21

METHODOLOGY

*Methodology for highlighted components has been added/changed since last year

35%

DIMENSION:

SITE &

E-COMMERCE

TECHNOLOGY & INTERACTIVITY: Load Time, Analytics, Branded Content, Guided Selling

SEARCH & NAVIGATION: Product Filtering/Sorting, Keyword Search

CUSTOMER SERVICE AND STORE LOCATOR: FAQ, Contact Us, Live Chat, Store Locator, Map Directions

OMNICHANNEL: Click & Collect, Reserve & Collect, In-Store Returns, In-Store Events/Services, Preferred Store

PRODUCT PAGES: User Reviews, Cross-Selling, Real Time Inventory, Content Integration

E-COMMERCE: Direct Checkout, Cart Cross-Selling, Gifting

SHIPPING: Free Shipping, Shipping Restriction, Return Shipping

ACCOUNT & LOYALTY: Wishlist, Favorites, Registry, Tiered Program, Credit Card Integration


22

DIMENSION:

DIGITAL

MARKETING

35%

METHODOLOGY


BRAND SEARCH: Traffic & Web Authority, SEO/SEM

CATEGORY SEARCH: Visibility Across 300+ keywords

grouped into categories

WEB ADVERTISING: Display, Retargeting, and Cross-

Platform Initiatives (Data by Pathmatics)

EARNED MEDIA: Reddit and Blog Mentions, Selective

Presence on Industry-Specific Content

EMAIL MARKETING: Ease of Signup, Signup Incentive,

Frequency, Content, Promotions, Triggered Emails,

Smartphone Optimization, Personalization, Localization


23


DIMENSION:

SOCIAL

MEDIA

10%

METHODOLOGY

FACEBOOK: Reach, Engagement, Responsiveness,

Programming Diversity, Support of Native Video Format, Call-

to-Action

YOUTUBE: Search Visibility, Channel Experience, Reach,

Performance & Optimization of Most Viewed Content,

Competitive Advertising

INSTAGRAM: Reach, Engagement, Post Frequency, Video

Content, E-Commerce Initiatives

TWITTER: Reach, Engagement, Tweet Frequency,

Programming Tactics, Customer Service

PINTEREST, GOOGLE PLUS, TUMBLR, MEERKAT,

PERISCOPE: Presence, Reach, Engagement


24


DIMENSION:

MOBILE

20%

METHODOLOGY

SMARTPHONE EXPERIENCE: Compatibility,

Functionality, Store Locator, Mobile Feature Set, Mobile

Checkout

TABLET EXPERIENCE: Responsiveness, UI/UX

Optimization for Touch Input, Cart & Maps Performance,

Geolocation

MOBILE ADVERTISING: Impressions, Creative, Mobile and

Tablet Platforms

MOBILE SEARCH: “Above-the-Fold” Visibility via

Organic or Paid Results on Google; Site Identified as Mobile-

Friendly, Click-to-Call or Local Directions, Deep Linking

Content and Structure

MOBILE APPS (if applicable): Presence, App Store

Performance, and Functionality of iOS & Android

Offering, E-Commerce Capabilities, In-Store Mobile

Integration


25

Brands parsed into five categories based on Digital IQ score

CATEGORIZING RESULTS

GENIUS 140+ AVERAGE 90–109

CHALLENGED 70-89 FEEBLE <70

GIFTED 110–139


RANKING


27

RANK BRAND DIGITAL IQ

62Compagnie Financière

Richemont SA

87

63

Ralph Lauren Corporation

86

63

Tumi Holdings, Inc.

86

65

Brentwood Associates

85

65

Kenneth Cole Productions, Inc.

85

65

Swatch Group

85

L2 DIGITAL IQ INDEX®:RANK BRAND DIGITAL

IQ

68

L Brands

84

69

Tourneau

81

70

Desigual S.L.

75

71

Restoration Hardware Holdings Inc

69

72

French Connection Group, PLC

65

73

Baccarat SA

44

FEEBLECHALLENGED


28

AVERAGEL2 DIGITAL IQ INDEX®:RANK BRAND DIGITAL IQ

49

Kate Spade & Co.

99

49

Oxford Industries, Inc.

99

52

The Aldo Group

98

53

Aeropostale, Inc.

97

53

Daniel Swarovski Corporation

97

53

PVH Corp.

97

RANK BRAND DIGITAL

IQ

56

J. Crew Group, Inc.

94

57

Duluth Trading Co.

93

58

Arcadia Group

92

59

L’Oreal Group

91

60

Ethan Allen Global, Inc.

90

60

Joe Fresh

90

CHALLENGED


29

L2 DIGITAL IQ INDEX®:RANK BRAND DIGITAL IQ

38

Ann Inc.

103

38

Gap Inc.

102

38

Hugo Boss AG

102

38

Michael Kors Holdings Ltd

102

38

Pandora A/S

102

38

Inditex

102

RANK BRAND DIGITAL

IQ

44

Alex and Ani

100

44

Lululemon Athletica Inc.

100

44

Lush

100

44

Investcorp

100

49

Chico's FAS, Inc.

99

49

Chico's FAS, Inc.

99

AVERAGE


30


25

Fast Retailing Co., Limited

108

27

Abercrombie & Fitch Co.

107

27

Brooks Brothers

107

27

Abercrombie & Fitch Co.

107

27

Lands' End Inc.

107

31

Apax Partners

106

RANK BRAND DIGITAL

IQ

31

Ann Inc.

106

33

Signet Jewelers

104

33

The Jones Group, Inc.

104

33

Tory Burch LLC.

104

33

Williams-Sonoma, Inc.

104

33

Pier 1 Imports Inc

103

AVERAGE


31


14

Urban Outfitters, Inc.

117

15

Otto GmbH

116

16

Coach, Inc.

115

16

Steve Madden, Ltd.

115

18


113

18

Express, Inc.

113

RANK BRAND DIGITAL

IQ

20

L Brands

112

20


112

22

Ralph Lauren Corporation

111

23

Gap Inc.

110

24


109

25

Fossil Group, Inc.

108

GIFTED AVERAGE


32

RANK BRAND DIGITAL

IQ

6

Ulta Salon, Cosmectics & Fragrance, Inc.

122

9

Tiffany & Co.

120

10

J. Crew Group, Inc.

119

10

Signet Jewelers

119

12

Forever 21, Inc

118

12


118


2

L Brands

135

3

IKEA Group

129

4

Gap Inc.

127

5

American Eagle Outfitters

125

6

Gap Inc.

122

6

H&M Hennessy & Mauritz

122

GIFTED


33

RANK BRAND DIGITAL IQ

1 LVMH 141

L2 DIGITAL IQ INDEX®:

1 Instagram account incorporates e-commerce, contests, and influencers

2 Comprehensive product pages include find in-store, videos, and UGC

3 Sephora Flash provides expanded fulfillment options through subscription

IN THE COMPANY OF GENIUS

21

3


34

1%

40%

44%

12%

2%

Genius Gifted Average Challenged Feeble


Percentage of Brands Per Digital IQ Class, n=82

Specialty Retail 2014: Digital IQ Distribution

2014


35

1%

30%

52%

12%

4%



Percentage of Brands Per Digital IQ Class, n=73

Specialty Retail 2015: Digital IQ Distribution

2015


36

2014-2015 Digital IQ Percentile Rank

Specialty Retail: Biggest Winners & Losers

BIGGEST MOVERS

54% 41%

-40%

40%

-31%

Average Gifted Average Gifted Average Average Average Gifted Average Average

Gifted Average Gifted Average Gifted Average Gifted Average Gifted Average

39% 38%

-40% -38% -38%


KEY FINDINGS


38

15%

0%

77%

23%

13%

4%

88%

31%

17%

6%

90%

40%

Buy Online, Pickup In-Store Reserve Online, Pickup In-Store Buy Online, Return In-Store Check In-Store Availbility

2013 2014 2015

Percentage of Brands with Given Feature

2013-2015, n=52 Brands Present Across Studies

Specialty Retail: Omnichannel Investments Across Time

OMNICHANNEL STANDSTILL

Source: L2, Inc., Digital IQ Index®: Specialty Retail, 2015.


39

38%

34%

15%

12%

DisplayLocation Type

or ProductLines

List In-StoreServices or

Events

BookAppointment

Service

SelectPreferred Store

Percentage of Brands Providing Information on Brand Site

September 2015, n=73

Specialty Retail: Retail Location Information

BRICKS: MORE THAN JUST POS



40



41



42

100%

0%

63%

38%

63%

83%

5%

58%

20%

38%

60%

0%

40%

20% 20%

33%

0%

33%

0% 0%

82%

0%

27%

55%

27%

Free Shipping Product Restricted FreeShipping

Order Minimum FreeShipping

Always Free Shipping Free Return Shipping

Accessories & Shoesn = 8

Appareln = 40

Beauty & Skincaren = 5

Home & Giftn = 9

Watches & Jewelryn = 11


July 2015

Specialty Retail: Shipping Offers Across Index Categories

SHIPPING OFFERS



43

FULFILLMENT: HOME & GIFT

Free Shipping

(Any)

Buy Online, Pick-

up In-Store

Check Inventory

Online

Other Detailed

Services

Crate & Barrel 8 4 4Warehouse Pick-up,

Courier Service

Ethan Allen 8 8 8“Premier Home

Delivery”

Pier 1 4 4 4“White Glove

Service”

Pottery Barn 8 8 8Select “White Glove

Delivery”

Restoration Hardware 8 8 8Select “Unlimited

Furniture Delivery”

West Elm 8 8 8Select “In-Home

Delivery”

Williams Sonoma 4 8 8Select “White Glove

Delivery”

IKEA 8 8 4Store Delivery,

Picking with Delivery

Sur la Table 4 8 8 -



44

68%63%

40%

27%

73%

55%

8%

Blog,Lifestyle Content

Videos User-GeneratedContent

ProductCustomization

"Shop theLook"

Digital Catalog,Lookbook

Diagnostic,Quiz


July 2015, n=73

Specialty Retail: Brand Site Investments

CONTENT AND COMMERCE

66% link branded content to specificproduct pages

53% include shoppable guided selling tools



45

68% 67%

38%

32%

15%10%

User Ratings User Reviews Customer ServiceAvailbility

Real Time OnlineInventory

User GeneratedContent

Product Q&A

Percentage of Brands Implementing Features on Product Pages

July 2015, n=73

Specialty Retail: Features on Product Detail Pages

PRODUCT PAGES



46

BEST IN CLASS


47

August 2015, n=80 Top Generic Queries by Category

Specialty Retail: Search Visibility Across General Terms on Google

SEO/SEM

Accessories

& Shoes

(n=8)

Apparel

(n=40)

Beauty &

Skincare

(n=5)

Home & Gift

(n=9)

Watches &

Jewelry

(n=11)

Organic

Index Brands

Among Top-10

Destinations10% 40% 30% 30% 40%

Top Brand

Paid

Index Brands

Among Top-10

Destinations0% 30% 10% 20% 40%

Top Brand



48

August 2015, n=80 Generic Apparel Queries (e.g., “pants”) on Google.com

Top 10 Sites Appearing on First Page of Organic and Paid Search Results

Apparel: Search Visibility Across General Terms on Google

APPAREL: SEO/SEM

20%

21%

23%

25%

29%

33%

33%

38%

50%

70%

boohoo.com

hm.com

kohls.com

us.asos.com

oldnavy.com

jcpenney.com

express.com

forever21.com

macys.com

shop.nordstrom.com

Specialty Retailer Department Store E-Tailer

ORGANIC PAID

Other

9%

9%

9%

10%

10%

10%

10%

18%

29%

30%

chicos.com

amazon.com

ae.com

target.com

llbean.com

hm.com

bohoo.com

zappos.com

jcpenney.com

macys.com



49

August 2015, n=80 Beauty & Skincare Queries (e.g., “serum”) on Google.com


Beauty & Skincare: Search Visibility Across General Terms on Google

BEAUTY & SKINCARE: SEO/SEM

15%

16%

16%

18%

24%

29%

33%

53%

68%

91%

lushusa.com

maccosmetics.com

maybelline.com

allure.com

totalbeauty.com

walgreens.com

eyeslipsface.com

amazon.com

ulta.com

sephora.com

8%

9%

9%

10%

13%

13%

21%

28%

29%

31%

100percentpure.com

sephora.com

garnierusa.com

lancome-usa.com

rimmellondon.com

amazon.com

olay.com

lorealparisusa.com

maybelline.com

covergirl.com

Specialty Retailer Beauty Brand E-Tailer

ORGANIC PAID

Other



50

August 2015, n=80 Generic Home & Gift Queries (e.g., “outdoor furniture”) on Google.com


Home & Gift: Search Visibility Across General Terms on Google

HOME & GIFT: SEO/SEM

28%

29%

30%

38%

39%

41%

41%

48%

54%

56%

crateandbarrel.com

williams-sonoma.com

macys.com

ikea.com

walmart.com

overstock.com

target.com

bedbathandbeyond.com

wayfair.com

amazon.com

10%

10%

13%

14%

15%

16%

19%

23%

24%

36%

potterybarn.com

ewfurniture.com

wayfair.com

target.com

macys.com

raymourflanigan.com

crateandbarrel.com

overstock.com

amazon.com

jcpenney.com

Specialty Retailer Big Box E-Tailer

ORGANIC PAID

Other



51

August 2015, n=80 Shoes & Accessories (e.g., “boots”) on Google.com


Shoes & Accessories: Search Visibility Across General Terms on Google

SHOES & ACCESSORIES: SEO/SEM

18%

21%

23%

28%

29%

36%

45%

50%

53%

65%

kohls.com

target.com

overstock.com

ebags.com

aldoshoes.com

dsw.com

amazon.com

zappos.com

macys.com

shop.nordstrom.com

9%

11%

11%

13%

13%

14%

21%

24%

26%

55%

walmart.com

sears.com

jcpenney.com

target.com

llbean.com

nordstromrack.com

6pm.com

macys.com

amazon.com

zappos.com


ORGANIC PAID

Other



52

August 2015, n=80 Generic Watches & Jewelry(e.g., “bracelet”) on Google.com


Watches & Jewelry: Search Visibility Across General Terms on Google

WATCHES & JEWELRY: SEO/SEM

23%

25%

33%

34%

34%

35%

36%

44%

50%

70%

pandora.net

bluenile.com

etsy.com

kay.com

zales.com

amazon.com

us.nordstrom.com

tiffany.com

macys.com

overstock.com


ORGANIC PAID

Other

10%

10%

10%

10%

11%

11%

14%

14%

26%

38%

overstock.com

kay.com

bluenile.com

alexandani.com

fossil.com

amazon.com

tiffany.com

jcpenney.com

tjx.com

macys.com



53

July – August 2015, n=73 Brands with Newsletter and Account Signup

Specialty Retail: Newsletter and Account Signup Process

NEWSLETTER AND ACCOUNT

89%

65%

38% 38%

WelcomeEmail

Pop Up Incentivized Expedited

77%

28%

14%8%

4%

WelcomeEmail

Expedited SocialMedia

Confirmation Incentivized

Newsletter Signup Account Signup



54

July – September, 2015, n=73 Brands with Newsletter and Account Signup

Specialty Retail: Trigger Emails

TRIGGER EMAILS & INCENTIVES

42% of Brands sent abandoned cart emails

29% of Brands that sent abandoned cart offered incentive through free shipping

15% of Brands sent birthday emails

100% of Brands that sent birthday emails offered either a gift or incentive



55

June – September 2015, n=652 Email Campaigns

Victoria’s Secret: Average Read Rate by Email Category

BEST IN CLASS

36%

23%

11%8%

6%

3% 2% 1% 0.3%0%

20%

40%

60%

0%

10%

20%

30%

40%

Promotion Product Sale Free Gift LoyaltyProgram

Localized AbandonedCart

Birthday UGC

Rea

d R

ate

Pe

rce

nt

of

Em

ail

Ca

mp

aig

ns

Customized Content

Source: eDataSource


56

Personalized and Localized E-Mail Content

EMAIL CUSTOMIZATION

15% Personalized Subject Lines

12% Based on Browsing

History

4% Referenced Local

Event

10% Referenced Local

Store

Ω



57

September 2015, n=70 Brands with Data

Specialty Retail: Average Impressions per Creative by Category

WEB ADVERTISING

Topshop

650K915K

1.4M

688K984K

-2,000,000

-1,000,000

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

Accessories &Shoes (n=8)

Apparel(n=38)

Beauty & Skincare(n=4)

Home & Gift(n=9)

Watches & Jewelry(n=11)

Ave

rag

e I

mp

res

sio

ns

Pe

r U

niq

ue

Cre

ati

ve

Cole Haan

Allen Edmonds

Old Navy

Bath & Body Works

The Body Shop

IKEA

Ethan Allen

Tiffany & Co.

Baccarat

Gap

Duluth Trading Co.

Sephora



58

WEB ADVERTISING: DESKTOP

Specialty Retail: Unique Brand Ads vs. Relative Impressions

0%

25%

50%

75%

0 400 800 1,200

Re

lati

ve

Im

pre

ss

ion

s

Number of Unique Brand Ads

Accessories & Shoes Apparel Beauty & Skincare Home & Gift Watches & Jewelry

Coach

Ikea

Sephora

Cole Haan

Victoria’s Secret

Old Navy

Pottery Barn

Zales

Tiffany & Co.

September 2014 - September 2015, n=70 Brands Serving Ads

Source: Pathmatics

Gap


59

WEB ADVERTISING: MOBILE


0%

25%

50%

75%

0 300 600

Re

lati

ve

Im

pre

ss

ion

s

Number of Unique Brand Ads

Accessories & Shoes Apparel Beauty & Skincare Home & Gift Watches & Jewelry

Coach

Ikea

Bath & Body

Works

SephoraCole Haan

Victoria’s Secret

Old Navy


Gap

Zales

Pandora

Source: Pathmatics


60

DESKTOP VS. MOBILE



36%

58%

64%

42%

Desktop Mobile

Direct Indirect

56% 55%

44% 45%

Desktop Mobile

42%

27%

58%

73%

Desktop Mobile

51% 54%

49% 45%

Desktop Mobile

75%

61%

25%

39%

Desktop Mobile

Accessories & Shoes

ApparelBeauty & Skincare

Home & GiftWatches &

Jewelry

Source: Pathmatics


61

Platform Active Brands (30 day threshold)

Average ReachMedian Annual

Growth

Average Post

Frequency

(per week)

Average

Interactions

(per post)

99% 3,454,224 +12% 9.75 2,205

97% 1,352,537 +132% 10.92 24,331

97% 329,412 +33% 108.22 61.72

84% 9,802,141* +46% 1.05 -

July 2014-15, n=73

Comparative Metrics by Social Platform

SOCIAL MEDIA LANDSCAPE

*YouTube: Average Total Views Up / Down >10%YoYSource: L2 Digital IQ: Specialty Retail 2015


62

Free People

Williams-Sonoma

Hollister

Abercrombie & Fitch

Forever 21

Victoria's Secret

Aeropostale

Sephora

Michael Kors

Tiffany & Co.

Zara

M

2M

4M

6M

8M

10M

12M

14M

16M

18M

- 5.00 10.00 15.00 20.00 25.00 30.00 35.00

Cu

mu

lati

ve P

ost

Inte

racti

on

s

Posts per Week

July 2014 - 2015, n=70 active accounts Reach

Specialty Retail: Reach, Post Frequency, & Engagement

FACEBOOK

INDEX AVERAGE

Reach 3,454,224

Post Frequency 9.75

Total Interactions 1,563,343



63

Aeropostale13%

87%

Overall Index Leader

July 2014-2015

Category Leaders: Share of Voice by Total Interactions

FACEBOOK: LEADERS

Sephora 47%

53%

Beauty & Skincare

IKEA72%

28%

Home & Gift

Pandora36%

64%

Watches & Jewelry

Nine West29%

71%

Accessories & Shoes

Leader Others

Aeropostale20%

80%

Apparel



64

September 2015, n=70 active accounts

Specialty Retail: Adoption of Call to Action (CTA) Button on Facebook

FACEBOOK: CTA BUTTONS

Only 10% of

brands are using

CTA buttons to

drive to featured

products or

destinations other

than their main

brand site.

69%

3% 1% 1%

Shop Now Join Now Watch Now Contact Us



65

Abercrombie & Fitch

Urban Outfitters

Hollister

Aeropostale

American Eagle

Free People

Express

Victoria's Secret

Alex and Ani

H&M

Forever 21

ZaraBaccarat

ZalesM

50M

100M

150M

200M

250M

300M

0 5 10 15 20 25 30 35

Cu

mu

lati

ve P

ost

Inte

racti

on

s

Posts per Week

July 2014- 2015, n=71 active accounts Reach

Specialty Retail: Reach, Post Frequency, & Engagement

INSTAGRAM

INDEX AVERAGE

Reach 1,352,537

Post Frequency 10.92

Total Interactions 5,477,792



66

July 2014-2015

Instagram: Top 5 Posts by Absolute Engagement

BEST IN CLASS

38K 38K 38K 39K 42K 53K 62K 73K 83K 86K 87K 96K 98K

Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15

Average Likes per Post

#15/26/15

479.8K likes4,227 comments

#26/29/15

473.1K likes821 comments

#36/12/15


#46/4/15


#56/30/15


Event General Happy Birthday, Angel! VS Swim VS Sport



67

July 2014-2015

Instagram: Top 10 Brands by Relative Engagement

BEST IN CLASS

@lillypulitzer3.3%

@aeropostale1.9%

@vspink1.8%

@lushcosmetics1.7%

@bathandbodyworks

1.6%

@zalesjewelers1.3%

@urbanoutfitters1.3%

@brooksbrothers1.4%

@hollisterco1.5%

Watches & Jewelry Beauty & SkincareApparel

@baccarat_legendary

1.3%



68

July 2015

Instagram: Forever 21 Thread Screen

MISSED OPPORTUNITY

Source: f21threadscreen.com, Compete, YouTube

The F21 Thread Screen is a 2,000-lb

machine that uses 6,400 mechanical

spools of thread to display Instagrams that

are hashtagged with #F21ThreadScreen.

It streamed live online 24 hours a day from

July 22-28th.


69

Alex and AniMadewellLush

Fossil

Lululemon Athletica

Victoria's Secret

White House Black Market

Aeropostale

Hollister

.M

.5M

1.M

1.5M

2.M

2.5M

3.M

3.5M

0 50 100 150 200

Cu

mu

lati

ve P

ost

Inte

racti

on

s

Posts per Day

Reach, Post Frequency, & Engagement

TWITTER

INDEX AVERAGE

Reach 329,412

Post Frequency 15.46

Total Interactions 179,529

July 2014- 2015, n=71 active brands Reach



70

0.07%

0.11%

0.05%

0.01%

Interaction Rate

July 2014-2015

Best in Class: @Aeropostale

TWITTER: BEST IN CLASS

32% of @aeropostale’s top 100 tweets (byoverall interaction) feature at least one of theseVine stars.

@Aeropostale

Index Average



71

Accessories & Shoes

Apparel

Beauty & Skincare

Home & Gift

Watches & Jewelry

September 2015

Periscope: Broadcasters by Category

PERISCOPE



72

March-June, 2015

Periscope: @alexandani

BEST IN CLASS

July 1

April 10

May

21 BROADCASTS

March 26 Periscope Launches

June16



73

March-June, 2015

Content Analysis: @alexandani

PERISCOPE CONTENT

Behind the scenes

48%

Live Music 14%

In Store Event14%

Community Activity

24%

10 of 21 broadcasts included behind the scenes content from Alex and Ani’s “Ruler of the Woods” photo and video shoot



74

Brooks BrothersPandora

Pottery Barn

The Body Shop

Tommy Hilfiger

Ulta

Sur La Table

Victoria's Secret

Sephora

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0 2 4 6 8 10 12 14

Perc

en

t o

f C

han

nel V

iew

s

fro

m T

op

Vie

wed

Vid

eo

Uploads per Week

July 2014-2015, n=61 active brands

Specialty Retail: Total Views, Upload Frequency, & Top Video Reach

YOUTUBE

INDEX AVERAGE

Total Views 11,494,312

Post Frequency 1.22

Most Viewed/Total Views 27.34%



75

Cartier

Victoria’s Secret

Old Navy

Pandora

H&M

Sephora

Aeropostale

American Eagle

IKEA

Fossil

Free People

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

M 10M 20M 30M 40M 50M 60M

Pe

rce

nt

of

Org

an

ic V

iew

s

Incremental Video Views

September 2014 – September 2015, n=73 Brands with YouTube Channels

Specialty Retail: Paid vs. Organic Views on Brand YouTube Channels

CHANNEL PERFORMANCE

INDEX AVERAGE

Organic Views 49%

Channel Views 4.4M

Source: Strike Social.


76

July 2014-2015

Content Analysis: Category Leaders by Total Views

YOUTUBE VIDEO TYPES

30%

5%

21%

40%

20%

10%

65%

5%

26%

5%

15%

5%

35%

95%

47%

15%

55%

5%

Nine Westn=10

6,782,188

Victoria's Secretn=20

137,221,376

Sephoran=20

41,435,354

Williams-Sonoman=20

18,336,237

Cartiern=19

85,499,430

Storytelling Social Interest Recruiting General Promotion Haul Holiday Product Event How To



77

July 2014-2015

Paid vs. Organic: Category Leaders by Total Views

YOUTUBE TRAFFIC

22%13%

37%

96%100%

78%88%

63%

4%

Nine Westn=10

6,782,188

Victoria's Secretn=20

137,221,376

Sephoran=20

41,435,354

Williams-Sonoman=20

18,336,237

Cartiern=19

85,499,430

Paid Organic



78

July 2014-2015

Top 10 Videos: Total Video Views

YOUTUBE

CartierShape Your Time

24,840,9809/28/14

AeropostaleAero Now.14,882,752

7/28/14

Victoria’s SecretAngels Lip Sync

“Shake It Off”8,835,598

12/8/14

SwarovskiSwarovski Citra Sphere Chrono

Watch8,211,545

9/3/14

PandoraThe Unique Connection17,042,623

4/13/15

Old Navy#Unlimited5,905,4624/31/14

CartierThe

Proposal

6,417,6672/2/15

CartierWinter Tale6,422,07511/17/17

CartierLa Panthere – The

Feminine Fragrance7,810,508

4/14/15

CartierParis Nouvelle

Vague Collection4,201,332

6/2/15



79

September 2014 – September 2015, n=66 Overlapping Brands

Specialty Retail: Site Configuration on Mobile Devices

CURRENT INVESTMENT

Responsive Design Mobile Site No Mobile Optimization

32%

59%

9%

2014 2015

42%

55%

3%



80

September 2014 – September 2015, n=66 Overlapping Brands

Specialty Retail: Adoption of Mobile Site Features

MOBILE SITE

82%

88% 89%

71%

59%

12%8%

97% 97% 96%

82%

65%

39%

14%

Store Locator Mobile OptimizedCheckout

AccountSign In

Geo-Location UserRatings & Reviews

CheckInventory

ArrangeIn-StorePickup

2014 2015



81

September 2015, n=73 brands

Specialty Retail: Mobile Site Features

MOBILE SITE

77% with online inventory

38% include find product in store feature

15% with mobile optimized live chat

96% with store locator

80% with CTC for specific store locations

14% of brands allow arrange in-store pick up from mobile site



82

September 2015, n=67 Mobile Apps from 45 brands

Specialty Retail: Mobile App Features

MOBILE APPS

64% feature a store locator, 63% of brand apps include geolocation

54% of brand apps are e-commerce enabled

33% of apps utilize barcode scanning

60% support account loginand 50% incorporate newsletter signup



83

Cole Haan’s Mobile App

NEW FORMS OF PAYMENT

Prioritizes Apple Pay and Touch ID for in-app purchases

Opt-in for push notifications and alerts

Offers additional methods of expedited payment such as PayPal

Integrated to brand Instagram with shopable links to product


CONCLUSIONS


85

LATE TO THE GAMEAs a group, Specialty Retail brands have largely failed to make the same omnichannel investments observed across their peers in the Department Store and Big Box retail verticals (i.e., reserve online, ship to store, store to door).

LESSONS FROM FAST-FASHIONSelect brands are rapidly adjusting their merchandise portfolio to mimic the success of fast-fashion brands. Increased variety underscores the urgency of investment in personalized product recommendations and accompanying offers.

LESS IS LESS…To date, only a third of brands offer customers the tools to define a robust user profile (beyond purchase history) and less than 10 percent incorporate advanced product recommendations into persistent account settings.

DIGITAL IQ = SHAREHOLDER VALUE

CONCLUSIONS


Documents

SPECIALTY RETAIL 2015 - Member Login | Gartner · Specialty Retail (n=73) Percentage of Bands with Given Feature in Q3 2015 ... SOCIAL MEDIA 10% METHODOLOGY FACEBOOK: Reach, Engagement,