£

SEARCH, DISCOVER, BUY

10 retailers redefining the path to purchase

In association with
AT A GLANCE
CONTENTS
R
etailers winning in commerce today CHAPTER 1
are those who know their target
customer and where best to find MARKETING AND COMMERCE:
them, meeting them on every digital TWO WORLDS COLLIDE
touchpoint, creating inspiring content and n The ever-changing modern path to purchase
driving sales.
It is no longer the customer’s job to reach CHAPTER 2
out and find a specific item or shop, but the
retailer’s job to meet the customer wherever DEEP DIVE: HOW THEY DID IT
they may be on the path to purchase. n Ten retailers redefining the shopping journey
This report, produced by Retail Week in
association with ChannelAdvisor, explores CHAPTER 3
who these winning retailers are and what
they’re doing to attract and retain loyal NEW WORLD SKILLS:
customers, using key platforms where ENABLING TRANSFORMATION
consumers are beginning their journeys n Retailers restructuring to meet demand
such as Facebook, Instagram, Google
Shopping and Amazon. CHAPTER 4
In turn, the platforms themselves are
constantly innovating, merging the worlds WHAT THIS MEANS FOR YOU
of commerce and marketing, and helping n Customers dictating digital transformation
retailers reach consumers in the most
lucrative and organic way.
This report looks at how retailers can
make the most of the innovations these
platforms offer, and the skills and roles
required in the retail head office to oversee
this new world.

RWRC: SEARCH, DISCOVER, BUY

Head of Commercial Content Production Editor Account Director
James Knowles 020 7715 6167 Stephen Eddie 020 7715 6015 Julia Jones-Collins 020 3033 2952
james.knowles@retail-week.com stephen.eddie@retail-week.com julia.jones-collins@retail-week.com

Commercial Content Writer Contributors Emily Kearns, Laura Reid

Rosie Shepard 020 3961 8890
rosie.shepard@retail-week.com

2 | March 2020 In association with

PARTNER
VIEWPOINT

JON MAURY
MANAGING DIRECTOR, EMEA, CHANNELADVISOR

T
he way consumers shop is evolving. Consumers are experiencing all kinds
Once upon a time, we were inspired of micro moments that influence their next Consumers are
by adverts, searched for products
on Google, compared prices on
purchase. Our survey found that 50% of
18- to 25-year-olds research products on
experiencing
marketplaces, purchased them on retailers’ Instagram and 47% of British shoppers have all kinds of micro
sites and showed them off on social media.
The lines between ma rketing and
bought items after seeing ads on Facebook.
And they don’t just stick to brands they moments that
commerce have become blurred. Traditional know – 83% have bought from brands they influence their
marketing channels such as Facebook and
Instagram are becoming increasingly
didn’t know on Amazon. They aren’t yet sure
what they want to buy and won’t be doing next purchase
transactional as they encourage consumers any product-specific searches today. But
to purchase in-app. show them an exciting product – at the ideal
Once the most influential advertising moment – in the most compelling format
platform in the world, Google is increasing possible, and you may just turn their daily
its selling capability through Google Instagram check-in and casual Facebook
Shopping. Meanwhile, Amazon, the largest scrolling into full-blown shopping.
retail site in the world, is investing more and It’s an exciting time for ecommerce as
more in its advertising services. two worlds collide, meaning retail and
The big four are reshaping the retail marketing departments need to break down
landscape, and brands and retailers must silos and increase collaboration if they are
optimise their selling and marketing to acquire and retain customers. This is
strategy if they hope to succeed. truly a time for multichannel retailing.

CHANNELADVISOR
ChannelAdvisor helps brands and retailers worldwide improve their online performance by expanding sales channels, connecting with consumers around the world,
optimising their operations for peak performance and providing actionable analytics to improve competitiveness.

ukteam@channeladvisor.com

March 2020 | 3
 THE TOP 10 RETAILERS
REDEFINING MULTICHANNEL

8 3
1

2 6

4
7
Methodology
In January 2020, Retail Week used data
10
from its in-house intelligence tool Prospect
to determine the rankings based on a
combination of follower counts for Twitter,
Facebook, Instagram and Pinterest; social
commerce features, such as having shoppable
feeds; and presence on Amazon.co.uk,
with additional scoring given to those with
branded storefronts.
9
4 | March 2020 In association with
CHAPTER 1

MARKETING AND
COMMERCE:
TWO WORLDS COLLIDE

T
he ways in which customers In general, Amazon is a great starting
discover new products, brands and point for consumers who know what product
retailers has changed. Whereas they’re looking for, while Google Shopping
once upon a time the retail journey is useful for those who are looking for a type
online began with specific retail websites, of product or category. Customers on social
today the customer journey and path to media such as Facebook and Instagram may
discovery is more fragmented. not be looking to shop at all – which is where
Retailers are consequently having to creative marketing content comes in.
rethink their marketing and ecommerce Discovery is the keyword here. Customers
strategies in order to reach their customers have little brand loyalty and therefore can be
across the digital world – from social media, inspired to buy from new brands from any
to mobile, to marketplaces. digital touchpoint they interact with.
They are also having to combine efforts Each of these platforms can bolster a
to create a homogenous brand image to brand’s marketing and commerce strategy,
market to the customer wherever they may but they alone are not the silver bullet.
be, becoming more agnostic about where the With customers at the heart, retailers need
final purchase is made. to truly understand the mindset of their
The winners in this new world are the big target audience in order to talk to them in
four: Amazon, Google Shopping, Instagram the right places.
and Facebook. They have each united their
strengths to
become marketing
and commerce
powerhouses, with
the two strategies
working in tandem
to drive customer
interaction, and
ultimately sales.

March 2020 | 5
 With more than 65% of product searches products. This helps to cement a consistent
now beginning on Amazon, the retailer has brand image across platforms, so consumers
overtaken Google as the starting point in the can recognise the same quality and feel
path to purchase in recent years. But with they would receive on the retailer’s
more than 350 million products available, own website, combined with Amazon’s
selling and advertising on Amazon may convenient checkout and delivery options,
seem like a drop in the ocean. for example Prime.
While it’s important that product images General merchandise retailers may see
and descriptions are accurate and of high better results on Amazon than others, as
quality, investing in Amazon Marketing Amazon shoppers tend to search for more
Services is the best way for retailers to functional, value items.
ensure their products are seen – be it through Traditionally Amazon has not been the
banner or headline search ads, sponsored fi rst port of call for fashion shoppers, but
product ads or product display ads, which with the advent and rise of Amazon Prime
appear on the side of related product pages. Wardrobe, this may change.
According to Jon Maury, managing A ma zon P r i me Wa rd robe a l lows
director EMEA at ChannelAdvisor: “Listing customers to order up to eight items free of
on Amazon without utilising their advertising charge for next-day delivery. They then have
capabilities is like a gym membership with seven days to try on the items, pay for what
no training programme – if you want to they wish to keep and return the rest.
see meaningful results, you need to invest. This try-before-you-buy scheme has
Especially important when trying to compete also been popularised by pay-later services
in a crowded market and the majority are such as Klarna. However, Amazon Prime
on a best-in-class training programme.” Wardrobe allows customers to order from
Amazon’s advertising department, the multiple different brands and offers to
Amazon Media Group, also offers alternative collect the parcel of returned items straight
solutions such as newsletter campaigns, from the customer’s door – removing friction
advertising on Amazon products such as from the returns process. Retailers using
the Kindle Fire or Fire TV, or even paper the service can also miss out on the margin-
advertisements in delivery parcels. eroding returns costs, which currently total
£60bn in the UK.
Shopping mindset Amazon has the potential to become a
Unlike social media platforms, visitors more popular retailer for fashion. Missguided
to Amazon are already in the shopping chief growth officer Nick Bamber even spoke
mindset, so are therefore more easily of it as a potential new channel for the fast-
converted into sales. Moreover, Amazon fashion retailer to target the student market,
shoppers are looking for convenience, as more take advantage of the Amazon Prime
therefore they are most likely to choose student discount, which offers the service at
products that appear at the top of their half the standard rate.
search, through paid advertising. To reach its full potential, retailers must use
Amazon also allows retailers to create Amazon’s selling and marketing functions,
their own branded storefronts to sell their or risk being lost in the sea of products.

6 | March 2020 In association with

 “Google Shopping is the natural extension
of Google searches,” says Joules ecommerce
director Ralph Percival.
Unlike Amazon, where products are
advertised and sold through its own services,
Google Shopping acts as an advertising
platform, which directs customers through
to the retailer’s own website to make the sale.
Potential shoppers can search for,
compare and ultimately purchase a product
from the collection of adverts presented to
them. As such, retailers’ products that appear
on different third-party marketplaces or
websites that advertise on Google Shopping
will have a higher chance of being bought.
Google Shopping ads also show up
multiple times within a Google search
– as a website result, a text-only pay-per-
click result, and a Shopping result on the With more and more searches beginning
Google Search page and the Shopping page. on Amazon, Google has begun to make
This gives retailers multiple touchpoints to shopping a more personalised experience
gather consumer interest and turn clicks through Google Shopping Actions.
into transactions. In a similar vein to the Instagram
Checkout trial in the US, the platform
Visual touch removes f riction f rom t he shopping
As the Google Shopping advert features process as customers don’t have to leave
images it adds a visual touch, which is more the search engine to make their purchase.
likely to attract customers. In fact, Google This combines the capabilities of Google
Shopping is proven to have 30% higher Assistant, Shopping and Search to create a
conversion rates than text ads. universal cart with a shared Google identity
across all devices.
This means that shopping data from
purchases made using Google Shopping
Act ions will be stored a nd used to
create a single view of the customer,
Retailers’ products that meaning retailers can tailor marketing

appear on different third- communications to customer preferences

to ultimately drive more sales.
party marketplaces or websites Retailers selling on Google Shopping

that advertise on Google also need to have a strategy for choosing

which products to promote. Missguided,
Shopping will have a higher for example, uses data analysis from its
website to understand which items are its
chance of being bought bestsellers. It then uploads these to Google
Shopping to attract potential customers
who may be browsing.
Keeping up with customer preferences
is now essential for those responsible for
Google Shopping ads within a retailer’s
commerce team.

March 2020 | 7
 In recent years, Facebook-owned Instagram sales. DFS is great at this, often using tags
has evolved from a photo-sharing platform to highlight key products in feed posts,
to a place where people come to discover using it as an opportunity to curate a virtual
new brands, products and styles through the showroom,” says Horn.
Instagram pages of brands and influencers. Horn also advises retailers to make full
“Social media plays a vital role across the use of the shopping function in Instagram
customer journey, from discovery through to Stories and use the video platform to share
sale,” says Facebook head of industry, retail exclusive behind-the-scenes content to
and ecommerce Beth Horn. “Already, 90% generate customer interest and loyalty
of people follow a brand on Instagram and through engagement. One third of all
we want to make it easy for people to shop watched Stories come from businesses,
at the moment of inspiration.” giving ample opportunities to use the ‘swipe
She adds: “We suggest retailers think up to buy’ function.
of Instagram as a virtual shop window – a “Creat ing a successf ul Instag ra m
place customers come to be inspired and to advertising strategy isn’t a walk in the park,”
enjoy the act of shopping. As Instagram has says Maury. “But even a handful of best
evolved from a source of inspiration to a place practices can help companies sprint toward
where people can shop, we have focused on more conversions, sales and revenue.”
creating tools that connect shoppers, sellers In the US, Instagram is trialling Checkout
and creators to help people shop more easily.” – a function that allows shoppers to purchase
at the point of inspiration, without leaving
Upselling opportunities the social network. Instagram Checkout
Instagram has rolled out shopping functions users only need to enter their personal and
on its feed posts and Stories. Shopping tags card details once for it to be remembered for
can be attached to any post a retailer makes, all future purchases, creating a seamless
and these allow a customer to click on the journey from discovery to sale.
tag and be taken through to the retailer’s The trial began with 22 brands including
website to make a purchase. Additional Burberry, Zara and MAC Cosmetics, and has
matching or similar items from the same now been extended to more than 30 brands.
brand are also suggested when a consumer Horn says that it’s early stages and a UK
clicks on the tag, creating the potential for rollout is still being explored.
upselling opportunities. Instagram can be used to form loyal,
“Since launching Instagram Shopping, lasting relationships with customers. Content
we now have 130 million accounts tapping can be curated to fully align with brand
to reveal product tags every month. Tags are ideals, with the addition of shopping tags to
a simple but really effective way to drive make the path to purchase more streamlined.

8 | March 2020 In association with

Facebook enables retailers to connect smartphone population messaging – and 100
with potential customers through posts, billion messages exchanged across Facebook
comments and its Messenger service. products each day – is uniquely positioned to
It’s important for retailers to maximise answer shoppers’ call for better experiences,
the opportunity to create and cement the says Horn.
brand identity on their Facebook page “Take Lego, which developed and rolled
through content such as videos, interviews out its first bot for a Messenger campaign to
and competitions. provide gift recommendations to customers
Facebook’s Horn recommends retailers during the Christmas shopping season.
make use of its advertising-measurement “The bot, named Ralph, enhanced the
tool Att ribution to help understand digital shopping experience by quickly
what type of content is most impactful at helping people choose and buy the perfect
converting sales. gift. It was so successful it became a year-
“Facebook Attribution allows brands to round activation. Lego saw a 3.4 times higher
better understand their customers’ path to return on ad spend for click-to-Messenger
purchase and enables them to constantly ads compared with ads that linked to the
tailor media strategies in reaction to their Lego website, and 1.9 times higher value
customers’ habits. Gucci used Facebook for website purchases made from click-to-
Att ribution to lea r n more about its Messenger ads,” she says.
customers’ purchase path and discovered
that Facebook and Instagram’s contribution Person-to-person payments
to online sales was 14 times more than Messenger has allowed person-to-person
originally understood.” payments in the UK since 2017, but Facebook
Facebook Messenger is also becoming an has plans in the works to allow shoppers
increasingly important touchpoint in the to make purchases from businesses without
path to purchase. leaving the app. Using chatbots, Messenger
Firstly, retailers should make it clear could be used in a similar way to popular
that customers can contact them via direct Chinese app WeChat, where customers
messaging. A study by global market can order anything from a takeaway to a
research specialists Ipsos identified that new outfit.
42% of UK online shoppers expect Facebook’s plans explicitly place chatbots
brands to provide an option to chat at the centre of any transactional activity.
with a live agent or representative if These use natural language processing in
they have any questions or follow-ups. user interactions. They interpret product
Horn says jewellery brand Chupi is a requests, confirm our intention to buy, then
business that has successfully integrated trigger payment using stored card details,
Messenger into its digital ultimately creating a seamless transaction.
strategy, using direct AR/VR immersive formats can also be
messages on a daily used via Messenger to present dynamic
basis to cu rate its content. Unilever-owned brand Signal
storytelling. toothpaste used AR to elevate existing
Wh i le t he capa- Little Brush Big Brush web series, using a
bilities of Messenger Facebook Messenger experience that offered
in driving sales AR animal masks that teach kids how to
are still being care for their teeth.
explored, Using Facebook Messenger, retailers have
with 87% of the potential to drive exclusive content and
t he world’s bring personalisation to the next level.

March 2020 | 9
 CHAPTER 2

DEEP DIVE:
HOW THEY DID IT

T
he top 10 retailers redefining
the path to purchase have used
a variety of methods in order to
reach their target audience on all
digital touchpoints. Here, Retail Week takes
a look at how they have used social media
and platforms such as Google Shopping
and Amazon to drive sales and gain loyal
customers.

1
Age and region are key factors in how
Missguided differentiates its strategy on
INSTAGRAM: 6.6m followers
each platform, each of which it approaches
FACEBOOK: 1.35m followers with a “test and learn” culture, says Bamber.
GOOGLE SHOPPING PRESENCE: Yes Instagram marketing, for example, targets
AMAZON PRESENCE: Only through the 16- to 25-year-old market, whereas
third-party sellers women over 30 tend to be Facebook users.
GROUP SALES: £186.9m in 2018/19 Content on each platform is thus created
ONLINE SALES: £180m in 2018/19 with a target shopper in mind, and using
both in tandem ensures Missguided
reaches a slightly older audience with
more disposable income and spending
power than teenagers who primarily use
Missguided prides itself on having a Snapchat.
presence in the digital spaces where its While Missguided’s Instagram and
customers want to shop. Facebook accounts have now proven their
Primarily targeting teenagers and young return on marketing spend by reaching a
women, Missguided uses social media as combined audience of more than 7 million
one of its main touchpoints. Chief customer shoppers, the lucrativeness of emerging
officer Nick Bamber says this is where the platforms such as TikTok is unknown.
Missguided customer “spends an inordinate Retailers cannot yet link TikTok posts
amount of her time”. to specific item pages on their websites,
This is reinforced by adverts on television meaning its commerce capabilities are
and public transport. currently limited. However, Missguided still

10 | March 2020 In association with

wants to be “part of the conversation”, so has
created its own channel.
Similarly, Snapchat is a platform with
limited scope, as frequent users tend to be
aged 20 and under, which is younger than
the typical Missguided audience who are
largely aged 18 to 25. While Missguided
has had a Snapchat presence in the past, its
account is now defunct as it focuses on other
social media.

Global preferences
In certain countries, different platforms
perform better. For example, Pinterest is
popular for discovering products with
Missguided’s American audience, but not be available in as a many sizes and colour
as highly regarded in the UK. The retailer options as possible to avoid frustrating
therefore has to identify the platforms that potential customers.
are key sales drivers to avoid overspending. Missguided does not yet advertise or sell
Missguided also curates its offering on on Amazon, except via a third-party beauty
Google Shopping. Rather than offering all retailer that sells its branded fragrances.
its products, it promotes a selection of its However, Bamber says that as Amazon’s
bestselling staples, fastest-selling on-trend influence in the student market grows,
items and end-of-season items to drive Missguided may need to rethink its strategy
shoppers to its own website. Moreover, each in order to meet its core demographic
item that appears on Google Shopping must “where she is”.
Missguided’s workforce “live and breathe”
social media marketing and commerce, says
Bamber. Referring to the customers as “babe”
or “hun” on all communications and social
media, Missguided creates a persona that
shoppers can identify with. It also reacts to
changes in the digital space – for example,
creating a “Tinder for fashion” area on its
app; or even creating a “jeans and nice top”
section on its website after receiving requests
via Twitter.
Bamber maintains that social media
is not the “silver bullet”, however, and
forecasts that new innovations such as
Instagram Shopping and purchasing via
Facebook Messenger will do little to disrupt
the market – but that Missguided will still
“test and learn” from them.

March 2020 | 11
 shoppers create an Asos account using their
Facebook profile.
Asos tailors social media content by region,
including localised Snapchat and Instagram
channels. It doubled its content volume in

2
the second half of 2019 and has increased
engagement by adding new channels, such
Asos acts as both an own-brand retailer as TikTok and Instagram TV (IGTV).
and marketplace, as well as a platform for The retailer’s Instagram feed is shoppable
small and vintage businesses on its Asos a nd it previously collaborated wit h
Marketplace site. Instagram to launch a geo-targeted shopping
It aims to extend its brand into its feed in 2018, meaning prices appeared in
INSTAGRAM: 10m followers
customers’ lives through constant content local currencies. This followed the launch
FACEBOOK: 6.3m followers creation on multiple channels including of its user-generated content tool, As Seen
AMAZON PRESENCE: No Facebook, Instagram, Snapchat, Pinterest on Me, which shows user-generated-content
GOOGLE SHOPPING PRESENCE: Yes and more, to the point that it posts more than from customers’ Instagram accounts on
GROUP SALES: £2.8bn in 2018/2019 60,000 times a month. product pages.
Asos was one of the first retailers to As a marketplace, selling brands from
ONLINE SALES: £2.7bn in 2018/2019
launch a fully transactional shop on New Look to Ted Baker, Asos does not
Facebook in 2011, enabling customers to appear on competitor site Amazon. It does,
shop the entire product range without however, sell on Google Shopping, where
leaving the social networking platform. The the search prioritises its own-label clothing
retailer has since replaced this with a social and accessories over those of its marketplace
media login to its main website, whereby partners.

3 New Look has a significant presence across Missguided, which has collaborated with
Facebook, Instagram, Twitter and Pinterest. celebrities such as Nicole Scherzinger,
It focuses on ‘authentic’ communications Pamela Anderson, and Jourdan Dunn, New
INSTAGRAM:2.4m followers and it uses Twitter to talk about industry Look’s ambassadors tend to be influencers
news and comment on events in a more with under 100,000 followers.
FACEBOOK: 3.2m followers
human way, rather than simply promoting It also embraces YouTube, creating
AMAZON PRESENCE: Yes products. content such as Rochelle’s Style Hacks and
GOOGLE SHOPPING PRESENCE: Its influencer programme launched in London Fashion Week videos, which the
Only through third-party retailers 2016 and uses less famous names compared retailer says drives great engagement.
GROUP SALES: £1.3bn in 2018/19 with competitors. In comparison with New Look’s Instagram feed is shoppable
ONLINE SALES:£172.3m in 2018/19 and its various Facebook posts link to
carefully curated edits to appeal to its wide
demographic, with these edits and blog
posts making up the Inspiration section on
its website.
A small selection of New Look products
appears on Amazon at discounted prices.
Some of the products are also part of
Amazon Prime Wardrobe, which allows
shoppers to try their products before paying.
New Look does not sell or advertise on
Google, but some items are available on
Google Shopping through its platform
partners such as Asos and Zalando.

12 | March 2020 In association with

 5
4 INSTAGRAM: 291k followers
FACEBOOK: 551k followers
AMAZON PRESENCE: Yes
GOOGLE SHOPPING PRESENCE: Yes, but
mainly through third parties
INSTAGRAM: 530k followers
GROUP SALES: £218m in 2018/19
FACEBOOK: 930k followers
ONLINE SALES: £78.7m in 2018/19
AMAZON PRESENCE:Yes – own branded shop
GOOGLE SHOPPING PRESENCE:Yes
GROUP SALES:£130.7m in 2017/18
ONLINE SALES: £26m in 2017/18 Former chief executive Colin Porter said in an interview
in 2019 that the clothing retailer was “genuinely agnostic”
about where its customers choose to shop.
Ecommerce director Ralph Percival confirms Joules
Cath Kidston is renowned for its playful tries to reach its target audience of women aged 30-45
heritage designs. While it is active across through all media, including email and direct mail, as
Facebook, Twitter and Instagram, Pinterest well as through multiple social and search channels.
is a particularly important network for As such, Joules products can be found on Google
the retailer. QR codes on its bag collection Shopping through a variety of sellers including Next,
named the Colour range can be scanned Bedeck and Amara, as well as its own store.
on shoppers’ mobile devices to reveal a Its presence across retailer-operated marketplaces and
Pinterest board for that product and offer Google shows Joules understands its older demographic
inspiration. would likely start their shopping journey with a simple
Google search. Joules’s decision to sell and advertise on
Amazon is driven by parallel motivations.
“Google Shopping is the natural extension of Google’s
search media and we see a lot of scope for that to grow
in future. Similarly, Amazon is important to reach our
customers on a different platform,” says Percival.
“We need to understand that more journeys are
beginning off site, so we need to be conscious about the
content we push across the channels into the broader
digital space as well as on our own site, as it all represents
the brand.”
Joules’s investment in social media was increased in
2018/19 across its in-house team and its photography and
digital media content creation capability. Its 30th birthday
campaign in 2019 also centred on user-generated content,
Cath Kidston recognises its older target encouraging customers to share photos of themselves
demographic spends more time on Facebook in some of the retailer’s earliest products as part of its
than Instagram and focuses its attention #JoulesMakingMemories campaign.
on creating inspirational content on the
platform as a result. The brand’s Facebook
posts lead to the Cath Kidston blog, which
offers product discovery and lifestyle advice.
Cath Kidston operates a branded store on
Amazon offering an assortment of health
and beauty gifts alongside a selection of
handbags and accessories.
On Google Shopping, a curated collection
of its products – mainly shoes, handbags and
clothing – is available, driving potential
customers to the retailer’s website. Some
products also have the option to compare
prices from multiple third-party partners,
including Zalando and Ebay.

March 2020 | 13
 6
INSTAGRAM: 34.9m followers
FACEBOOK: 37.7m followers
AMAZON PRESENCE: No
GOOGLE SHOPPING PRESENCE: No
GROUP SALES: £19.3bn in 2018/19
ONLINE SALES: £3.2bn in 2018/19

H&M has a strong presence across all Jenner, meaning H&M used both the gravitas app allows customers to use a visual
social channels including Instagram, of the designer as well as Kendall’s social search tool to find products matching or
Facebook and Pinterest, and separate media influence to reach 100 million similar in H&M’s inventory to photos they
accounts for its H&M Home, H&M Kids and followers. take. It also operates an in-store mode, which
H&M Man offerings. Its feeds are also fully H&M also uses Instagram influencers shoppers can use to find products to their
shoppable. and polling features to gain rich consumer specifications in store, and even orders them
It has a history of using social to build insight into its prelaunch products, allowing for home delivery.
hype a round celebrity and designer it to make changes such as replacing zippers H&M does not sell on Amazon or Google
collaborations, benefiting from its large with buttons. Shopping, preferring to engage with its
followings. Its Balmain collection, for H&M’s mobile app is also a key component shoppers across social media and its
example, was promoted by model Kendall of its digital discovery capabilities. The own app.

Burberry was an early adopter of social This gives its customers exclusive
media. It joined Facebook in 2009 and access to the brand’s backstage areas at
social media has since become an LFW and creates hype for the brand.
increasingly important channel for the Burberry also sells on Google Shopping
brand. The group has a presence on through its own branded website and
around 20 social platforms including myriad designer marketplaces including
Twitter, Instagram, Facebook, Line, KaKao Farfetch, Net-a-Porter and Matchesfashion.

7
and WeChat, connecting with its global On Amazon, branded accessories
customer base. such as scarves, perfume and sunglasses
It became the first luxury brand to are sold, but it does not have a branded
reveal its collection on social media ahead storefront.
of its official London Fashion Week show
in September 2015, when it unveiled its
INSTAGRAM: 16.9m followers range on Snapchat the night before. The
FACEBOOK: 17.1m followers content was viewed more than 200 million
times.
GOOGLE SHOPPING PRESENCE: Yes, also
The company streams its London
through marketplace sellers
Fashion Week shows on its Facebook page
AMAZON PRESENCE: Yes and posts videos and playlists of different
GROUP SALES: £2.7bn in 2018/19 products and campaigns, music events
and behind-the-scenes footage across its
social media channels.

14 | March 2020 In association with

 9
INSTAGRAM: 585k followers
FACEBOOK: 2.4m followers
GOOGLE SHOPPING PRESENCE: Only through
third-party platforms
AMAZON PRESENCE: Yes
GROUP SALES: £871.7m year to April 2019

8
Like Zara, Superdry almost entirely eschews
TV advertising and traditional media in
favour of social media. It says this approach
INSTAGRAM: 38.4m followers fits the needs of its customers, while robust
FACEBOOK: 28m followers and scientific measurement ensures it gets
GOOGLE SHOPPING PRESENCE: No the best possible return on investment.
AMAZON PRESENCE: No The emphasis is on engaging with
customers at all stages of their journey by
GROUP SALES: £23.1bn in the year to
developing impactful, integrated campaigns
January 2019
with immersive content.
The retailer also features short films on its
YouTube channel to introduce new products,
promote events or show behind-the-scenes
Zara famously does little in the way of advertising, footage of sponsored events and shows.
especially shirking traditional medias such as
television adverts and billboards. Instead, one of the
only channels it does invest in is social media and
influencer marketing.
In comparison with other fashion brands, Zara’s social
media following is exponentially higher. While this is
due in part to its international presence, the retailer was
also one of the first to invest heavily in curating quality
content thus creating a large captive audience.
Moreover, its lack of advertising ties in with its scarcity
and urgency proposition – Zara only manufactures a
certain number of products, thus creating a buzz where
customers set out to buy items before they disappear
from shelves. Superdry does sell on Amazon and,
Customers posting on social media then acts as social while it does not have a branded store,
proof that they were able to purchase coveted garments. it has a significant number of products
UGC is therefore one of the key ways in which Zara available, including T-shirts, hoodies,
markets, without spending a penny. watches and hats. As Superdry has a large
Zara does make use of social media shopping functions, target demographic ranging from ages 18 to
including Instagram and Facebook shopping. It also 40-plus, advertising and selling on Amazon
applies Instagram Shopping to its paid influencer posts, is a great way to appeal to a wider audience,
meaning shoppers are directed straight to its website. as more and more searches start on the
Zara does not sell or advertise on Google Shopping marketplace.
or Amazon. Superdry branded products only appear
on Google Shopping through other platforms
such as Lyst and Next.

March 2020 | 15
 Topshop’s creative attitude
to marketing, teamed with
its fashion-forward products,
are what sets it apart from
other retailers

10
INSTAGRAM: 10.1m followers
FACEBOOK: 4.2m followers
GOOGLE SHOPPING PRESENCE: Yes
AMAZON PRESENCE: No
GROUP SALES: £846.8m in 2017/18
ONLINE SALES: £170m in 2017/18

Social media is at the very heart of Topshop’s have been released on both Topshop.com
marketing strategy. and Topman.com, with additional content
The retailer is also notable for being one of hosted across the brands’ social channels
the first in the UK to engage with Pinterest. and via digital displays in store.
In December 2013, the social network made Celebrity-inspired clothing ranges also
its first big appearance in UK retail in a generate interest for Topshop, for example,
collaborative campaign – Dear Topshop its collaborations with the Jenner sisters and
– which allowed shoppers to pin pictures Kate Moss boost engagement with the brand
straight from the retailer’s website on to their globally via social media.
own Pinterest board. It also features on Google Shopping to drive
In mid 2019 Topshop/Topman launched a traffic on to its own website, using a curated
new ‘competitive (and speedy) dating show’ selection of its best seasonal pieces. Topshop’s
called Date Dash, whereby contestants were creative attitude to marketing, teamed with
tasked with creating an outfit in a bid to woo its fashion-forward products, are what sets it
millennial shoppers. apart from other retailers.
Six three-and-a-half minute episodes It does not sell or advertise on Amazon.

16 | March 2020 In association with

BUSINESSES TACKLING THE NEW
WORLD OF COMMERCE OUTSIDE
OF OUR TOP 10

W 18
hile fashion retailers nab the
top spots in the new world of
marketing and ecommerce,
t here a re plenty of ot her
categories and brands taking advantage of
these changes. We’ve selected three from our
top 30 retailers that are helping to redefine
INSTAGRAM: 208k followers
the path to purchase.
FACEBOOK: 392k followers
GOOGLE SHOPPING PRESENCE: Yes
AMAZON PRESENCE: Yes, including branded
storefront
GROUP SALES: £131.2m in 2017/18
ONLINE SALES: £10.4m in 2017/18

While ecommerce makes up less than 10%

of all Paperchase sales, the retailer’s drive to
become multichannel is evident.
It posts frequently across all social media
channels including Facebook, Instagram,
Twitter, YouTube and Pinterest.
Pinterest acts as a particularly interesting
discovery point, where Paperchase curates
inspiration boards for seasons, events or
customer needs.
Its Instagram and Facebook feeds are
fully shoppable, and it has a strong presence
across Google Shopping and Amazon.
Its branded Amazon shop sells a selection
of more essential, plain-coloured items such
as notebooks and diaries in comparison
with the colourful and kitsch selection sold
on Google Shopping.

March 2020 | 17
 29

INSTAGRAM: 22.5m followers

FACEBOOK: 12.3m followers
GOOGLE SHOPPING PRESENCE: Yes
AMAZON PRESENCE: Yes, including branded
storefront
GROUP SALES: £199bn in the year to
September 2018

24
Apple takes a different approach to its social media
marketing, choosing to showcase the capabilities of its
products – for example, the new iPhone camera quality INSTAGRAM: 976k followers (UK)
– on its Instagram channel and posting very little on
FACEBOOK: 28.7m
Facebook or Twitter.
Instead the company prefers to speak through a GOOGLE SHOPPING PRESENCE: Yes
single ‘narrator’ – a role that was previously held by the AMAZON PRESENCE: Yes
late Steve Jobs and has now been taken over by chief GROUP SALES: £34bn in 2018/19
executive Tim Cook.
Consequently, it does not use social media as part of
its ecommerce strategy.
However, Apple does sell and advertise its products Ikea has separate social media accounts for
through Google Shopping and a branded storefront on most of the countries it is active in.
Amazon. In the UK it uses Facebook, Pinterest
It also runs television adverts and uses other more and Instagram, although it does not have
traditional media such as out-of-home advertising. a dedicated Twitter account for the UK
For a digital-led brand, this may seem counter- market.
intuitive, but it creates a level of exclusivity around the Facebook is Ikea’s primary channel to
business that is less available on social media. communicate with its customers in the UK,
and both its Instagram and Facebook feeds
link to its website.
Ikea has a wide target demographic,
ra nging f rom students to f i rst-t ime
homeowners, to older age groups.
As such, Ikea both sells and advertises on
Amazon and Google Shopping. Its decision
to sell on Amazon is part of a longer-term
strategy to create its own industry-wide
furniture sales platform, with Ikea reporting
that “there had to be something” between
its own website and more general websites
like Amazon, to effectively create a one-stop
shop for furniture and homewares.

18 | March 2020 In association with

CHAPTER 3

NEW WORLD
SKILLS: ENABLING
TRANSFORMATION

T
he convergence of marketing and the focus should be the customer, not
commerce – as retailers jostle to the channel.
meet their customers where they Maury agrees: “For many of the brands
browse and buy – has placed who sell across depa r t ment stores,
new demands on retailers to overhaul marketplaces and their own stores, too
organisational structures. often their sales departments are siloed
This has meant an increase in demand with a digital marketing team, a marketplace
for specialist skills across social media, team and a bricks-and-mortar team all
search engine optimisation, mobile and acting independently.
apps, to name a few. “These departmental silos bring their
own set of KPIs and they don’t talk to each
Introducing new roles other as much as they should or share
Digital recruitment agency Cranberry Panda valuable data insights. Consumers don’t care
says more “progressive” retailers have about what channel they buy on. Brands
recruited a chief customer officer. shouldn’t either. They should measure
“The customer should be what drives all “multichannel success” because they’re
business decisions,” says chief executive living in a multichannel world.”
Jonathan Hall. By breaking down silos it will be easier
“This person’s role is to to create the homogenous brand experience
bring the different depart- across all channels – including service,
ments together to give the feel and convenience – that customers
customer a ‘single now expect.
brand experience’ In this ranking’s top 10, New Look hired
across any chan- former Karen Millen managing director
nel they interact Louise English to the role on an interim
with. If the board basis last year; Joules hired chief customer
buy into this role it can officer Lysa Hardy in 2016; and way back in
have significant benefits 2011 Burberry appointed Steve Sacks.
to a retailer offering the
competitive edge over Supporting discovery
its rivals.” With the path to purchase beginning at
Hall also says numerous different digital touchpoints,
that retail head offices performance marketing teams are needed
ne ed to b e able to to drive growth through paid search,
collaborate more as paid social media, and advertisements

March 2020 | 19
 on shopping platforms such as Google check that the customer’s needs are met and
Shopping and Amazon. taken into account when actioning changes.
Missguided’s Bamber says balance is Asos, for example, has hired a chief
required. While a brand should be present growth officer whose remit combines
wherever its target customer is, it’s equally ma rketing, data analytics, customer
important to understand exactly where that experience and strategic planning.
might be and not spend unnecessarily. Last year, Cath Kidston also made the
“Generally, where the larger audiences decision to create a new executive position
are, the more benefit there is from an in charge of data, hiring former Victoria
engagement and revenue perspective. Beckham chief digital and technical officer
However, it does depend on who your James Wintle as digital director.
audience is as Snapchat or LinkedIn could Zara also uses intensive data analytics
also be important,” says Hall. “With all new in order to create on-trend pieces and
digital channels it is a case of test and learn react to customer preferences, and cites
to understand what works and how we can its customers as its chief customer officer.
improve with our next attempt.” It says they give feedback on all areas of
the business, and drive changes through
Testing and learning their comments on social media.
Bamber and Hall therefore agree on a ‘test “While brand ‘feel’ is important it is
and learn’ attitude. TikTok, for example, more powerful combined with a deep
could become a big opportunity for the understanding of what the audience is
right business, which is why youth-oriented saying,” says Hall. “Data scientists, web
brand Missguided is already trialling its analysts and even specific social analysts
own channel. like Instagram analysts are therefore being
Meanwhile, the important platforms added to head office teams.”
differ by market, with Weibo replacing Data is abundant, but useless without
Facebook in China, for example. teams to interpret it and enforce changes.
Other departments that have become Joules’s Percival agrees that digital
important in the new commerce world are transformation has meant the addition
product technicians and data analysts. of more specialist employees to focus on
Product technicians are responsible creating a multichannel business.
for creating a friction-free positive brand “In a fast-moving world, our teams need
experience across all tech platforms, be it to be able to react quickly to customer
the retailer’s own website, mobile site, app responses to all marketing campaigns. As
or social media shopping function. such, we outsource some activities, such as
As teams collaborate, test and learn, they pay-per-click, but have others in house – all
also need the support of data analysts to to ensure we cover our bases.”

20 | March 2020 In association with

 CHAPTER 4

WHAT THIS
MEANS FOR YOU

C
ustomers have driven the need for
retailers’ wider transformation,
dictating where and how they want
to interact with them.
Consumer brand loyalty is at an all-time
low, meaning retailers need to be present
at these touchpoints. The opportunity is
ripe for retailers to generate sales through
creative content and compelling adverts,
and make use of the tools available to spending the most time, and therefore where
them through platforms such as Facebook, the biggest opportunity to convert lies.
Instagram, Google Shopping and Amazon. The retailers t hat a re winning at
Retailers need to understand their multichannel are those that understand
customers’ preferences in order to hone where their customers are and tailor the
their marketing efforts. Overexposure is shopping experience to each platform. They
just as risky as ignoring these platforms also ensure their brand purpose and identity
altogether, as spending unnecessarily on is clear across all channels.
ad campaigns with no return on the “In many cases, your products might
investment will erode margins. already feature on the marketplace in the
A ‘test and learn’ attitude is advised for all form of end-of-season stock or via resellers,”
platforms, especially new mediums such as says Maury. “The most effective way for
TikTok. While most consumers will expect you to take control of your customers’
brands to have a social media presence in brand experience is to be present on the
one form or another, it is important to pay marketplace yourself, own the experience
attention to where the core demographic is and sell more yourself.”
In the retail head office, there needs to be
an inherent understanding of social media
and data analysis, and how these can be
While most consumers will expect used to underwrite the brand handwriting
brands to have a social media across all marketing media.
Successful retailers will hire a chief
presence, it is important to pay customer officer to drive customer-facing

attention to where the core business decisions from the top down and
remove silos within the multichannel space.
demographic spends most time It is clear that development of the path
to purchase will continue across platforms
such as Facebook, Instagram, Google
Shopping and Amazon, as the worlds of
marketing and commerce continue to merge.

March 2020 | 21
 THE PROSPECT VIEW
The data used to collate this report was approach to TikTok and favours humorous
collected and analysed by Retail Week’s content.
in-house intelligence arm, Prospect. Here, Evidently, a one-size-fits-all approach
Prospect data analyst Eleanor Smith gives to social marketing is no longer viable, as
her view: older consumers gravitate towards the
rather static Facebook, while the fledgling

T
Gen Zers of the world devour interactive
he top retailers in this report have content from their favourite influencers
developed a strong social media on TikTok and YouTube. Live streaming is
presence through a combination particularly popular, with gaming-centric
of targeted, localised and engaging platform Twitch accessed by more than
content. Burberry has leaned on ‘hype 15 million users daily and utilised by brands
culture’ and utilises exclusive Instagram such as Hollister and KFC to interact with
product launches to drive social engagement, users in real time.
whereas Asos has adopted a non-commercial Customers themselves, often desperate
to boast about their latest purchases, can
also provide retailers with user-generated
content (UGC), which other shoppers view
as vastly more trustworthy and shareable
than content from the brands themselves.
And conversion is substantially boosted
when UGC is pulled on to product pages,
with Dune London reporting a 28% higher
conversion rate after implementing UGC.
While still a f ledgling channel in
the West, a world dominated by social
commerce does not seem far off. Instagram
Checkout launched in the US in early-2019
and allows consumers to purchase goods
without leaving the app. Chinese app WeChat
opened a similar service in 2017 and saw
$115bn (£90bn) pass through its myriad
stores in 2019.
Away from social media channels, there
is an ever-growing share of consumers now
beginning their product searches directly on
Amazon. This is an important consideration
for brands that need to decide whether or
not to collaborate with shop-in-shops on
the platform.
While brands such as Nike have shunned
the giant – as there is little control over the
customer journey and a risk of counterfeit
products competing with genuine – Amazon
has found a strong UK grocery partner in
Morrisons and an unlikely ally in Apple,
which went on to create a best-in-class
storefront across its marketplaces in the US
and internationally.

22 | March 2020 In association with

FIVE KEY TAKEAWAYS

1 UNDERSTAND CUSTOMER DATA TO

FOCUS EFFORTS ON CHANNELS THAT
HAVE POTENTIAL FOR BEST ROI

2 CREATE ORIGINAL AND CREATIVE CONTENT ON

SOCIAL MEDIA TO ATTRACT NEW CUSTOMERS

3 CONSIDER WHETHER YOUR BUSINESS NEEDS A

CHIEF CUSTOMER OFFICER TO DRIVE DECISION-
MAKING AND BUILD TEAMS WITH A BLEND OF
SKILLS BETWEEN MARKETING AND COMMERCE

4 DRIVE LOYALTY TO MEET THE CUSTOMER

IN THE CHANNEL WHERE THEY SPEND THEIR
TIME DWELLING

5 ADOPT A PRAGMATIC, FLEET-OF-FOOT

STRATEGY WHERE YOU ASSESS NEW
CHANNELS AS THEY ARISE

March 2020 | 23
In association with