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Issue link: http://beautystorebusiness.epubxp.com/i/141850
Beauty Store Business: What is the current state of ecommerce and the dollar opportunity that it represents worldwide? MULPURU-KODALI: We expect U.S. online retail to reach $262 billion in 2013—a rise of 13% over 2012's $231 billion in online sales and representing 8% of the total retail pie. That figure is predicted to grow to $370 billion by 2017, reflecting a compound annual growth rate of 10%. Online retail's growth will outpace that of physical retail stores; as a result, stores will continue to lose wallet share to Web retailers. Mobile and multichannel investments are driving growth. Two notable changes in recent years have supported ecommerce growth. The increased penetration of Webenabled mobile devices—smartphones and tablets—boosts the amount of time consumers spend online. Also, traditional retailers have invested heavily in their Web divisions, which support both Web functionality and brick-and-mortar locations. to look up product information while browsing in stores. What must brick-and-mortar beauty retailers do for their websites? Please comment on consumer behavior when shopping online or with mobile devices. Store retailers need to focus on mobile and tablet access—to ensure [that] content is legible and that site content works across all devices. Consumers shop online for convenience, selection and value. On mobile devices, convenience becomes even more critical. It is imperative for retailers to have quick and easy checkouts with as few keystrokes as possible to get transactions. That's why websites that have checkout buttons such as PayPal Express often win over those that don't. How has social media impacted retail? Please discuss any innovative tactics being employed by marketers to generate revenue via traditional channels and online/mobile. What are the challenges retailers face online or via mobile devices? How do the latest technologies help them? With mobile, the screen sizes are very small, so conversion rates are low. For general online behavior, consumers still often want to touch and feel products before purchasing them. "Some retailers are finding that a good app experience can be ideal for engaging its most loyal shoppers." How have recent advances in technology impacted the retail landscape— both online/mobile and brick and mortar? Mobile phones and tablets are, of course, the biggest vehicles for increasing the amount of time that shoppers spend online. These tools encourage shoppers to browse more products on websites— such as Beauty.com—or visit websites that inspire—such as Pinterest. More shoppers are using these types of devices in stores as well. Sometimes tablets are used as kiosks mounted on tables to support product searches or transactions, and sometimes shoppers [use] their smartphones 66 August 2013 | beautystorebusiness.com What do you advise retailers do to ultimately lead to a sale and bring consumers back? What are the most effective marketing tactics for online and mobile? Free shipping is [a] very compelling [tactic] for customers. On mobile devices, enabling conversion through an abridged checkout experience— for example, PayPal Express—can be a great win. Some retailers are finding that a good app experience can be ideal for engaging its most loyal shoppers— even with something as basic as a realtime update of points accruals or the value of the store value cards, which Starbucks does. For small brands, social media can really help to get the word out. For larger brands, it's often a customer-service channel. There's a company called Lolly Wolly Doodle, which retails children's clothes. It posts photos of clothes on its Facebook page and enables consumers to write messages such as "Send me a size X; my email address is Y." What's interesting is that most of the company's sales are generated through this tactic. It's viral—the people who post expose their messages via their walls—and by extension through their social networks. When managing an ecommerce site, are there any universal elements behind a site's success? Any retail standouts you'd like to note? Easy navigation, easy checkout, great products, a broad assortment and strong customer service are key. Amazon and Netflix are top websites. In beauty, I think Sephora is really the best in class. It integrates elements of the in-store experience—for example, videos—very well. How can ecommerce sites best navigate the market with heightened competition from big players such as Amazon.com? Amazon is a storm that must pass—and it will. Of course, all retail is cyclical. Something will displace Amazon— it's just not clear what it will be at this moment in time because Amazon is so dominant. Continued on page 116