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Home / Business / Companies / Retail

Paul Brabin: 12 digital ways of Christmas retail

By Paul Brabin
NZ Herald·
17 Dec, 2013 04:30 PM5 mins to read

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Opinion
Retailers are not abandoning their High St stores but innovating for tech-savvy shoppers, writes Paul Brabin.

Our Kiwi retailers have been embracing digital change. This doesn't mean they're abandoning their High St stores - simply designing the shopping experience around the needs of today's tech-savvy shoppers.

So, what innovations can shoppers expect from forward thinking retailers in Christmases to come?

1. Automated retail stores

The future of the store is one with fewer offline sites, but more experienced staff. Retail is increasingly adopting an automated model in which customers are serviced by stores with minimal staff disruption. It's down to technology. For example, Hointer, the Seattle-based fashion store, proposes a unique concept: customers pick which pair of jeans they want to try, and an automated mechanical system takes the clothing to a dressing room.

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2. Interactive buying opportunities

Beyond stores, many retailers are taking every opportunity they can to get in front of customers - including merchandising through videos. For example, Canadian retailer SSSense produced a music video last year using interactive hotspot technology - ensuring every item featured could be purchased by the viewer right then and there.

3. Stores are downsizing

Retail has been downsizing for several years now, particularly in the changing fashion and book industries landscape. But it's not just about cutting down: it is down to businesses designing their offerings around a smaller footprint. Look at pop-up shops: they've evolved beyond the physical to the digital realm where curation is a customer's dream. Daily deals and group buying sites are increasing in popularity.

4. The digital staff member

Retailers are increasingly using tablet technologies and interactive technologies to allow customers to find more products themselves. From no more queues and no more aisle treks to technologies allowing customers to share a picture of themselves in a new outfit on social media, these innovations will become popular. And the beauty of it? Businesses get their own brand on social networks - a must for the Christmas period.

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5. Target marketing

While the value of email marketing is constantly debated, research shows it to be the most popular digital marketing method. Yet, most businesses still aren't using it right. Key to success is drilling down into email marketing demographics to get a better return through this channel.

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During the 2012 American presidential race, the Barack Obama campaign achieved huge success in targeting specific users with even superficial changes in email subject lines - there's no reason the same can't be achieved in a retail environment.

6. The peak happens earlier

While in bricks and mortar stores most of the year's Christmas sales happen in the few weeks before December 25, in digital the holiday rush tends to happen earlier, because of shipping limitations. As a result, sales of AdWords, email marketing campaigns and discounts need to happen earlier too. There is a whole rush of digital activity not in December, but in November.

7. Responsive web design

Today - if not yesterday - is the time for interactive design. Google increasingly want to see responsive web design used. While a responsive design may not provide a direct boost in traffic, it will make mobile and tablet sites easier to browse. And therefore, lead to an increase in traffic, which will naturally boost Google rankings. It's all tied together.

8. Content, glorious content

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The popularisation of content creation among retailers is as much a necessity as it is a power play. Without a blog or at least some stream of useful information, retailers aren't providing any differentiation from their competitors. For a fashion business, information on different trends and styles goes a long way to making the company appear savvy.

9. Catalogue marketing

Paper catalogues still represent a huge amount of the marketing budget for retailers, especially around holidays such as Christmas. With more businesses offering catalogues online, a gap remains between putting the material in people's hands and getting them online. More tie-ins between print and digital counterparts can be expected.

10. Cyber Monday

Typically the first Monday in December after the American Thanksgiving holiday, Cyber Monday was originally designed as a tie-in to the holiday. Now more international retailers are getting in on the action and focusing on selling all over the world. More New Zealand businesses are looking into and adopting similar tactics as a lead into encouraging extra Christmas sales, targeting both local and global audiences.

11. Catch the last-minute Christmas Day panic

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The last-minute gift certificate is a famous Christmas gift, yet in recent years, the trend has been given a digital spin. Statistics from the last few years show downloads on Christmas Eve are beginning to rise - and site traffic is actually increasing on Christmas Day as people given tablets and smartphones download eBooks or music through gift certificate cash. Even if this is simply a gift certificate, retailers cannot ignore this chance to pick up last-minute sales.

12. Virtual Santa

With Skype, social media and the proliferation of apps and smartphones, we now have more ways to get in touch with Santa. Perhaps one day he'll be able to spend more time at the North Pole and less time working in-person in-store in the lead-up to Christmas?

Paul Brabin is a PwC partner and a digital change specialist.

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