Manufacturers continue move to online sales
As US retail sales plummet, marketers are shifting their budgets online, citing cost savings and better measurability.
Online merchandising is, of course, not a new concept, but the urgency at which companies are using web content to move product is rapidly mounting, says John Bukovnik, co-founder of online merchandiser e-Marketer Easy2 Technologies.
Even before the economic downturn, industry statistics showed that 81 per cent of people regularly research purchases online and 66 per cent had purchased online, leading to a range of 40 to 100 per cent conversation rate. And now, says Bukovnik, because of the tumultuous economic climate, many more factors are driving online sales:
- Store closings are sweeping all industries and causing a myriad of frustrations and inconveniences for consumers, such as having to travel farther to a different store location or another store altogether.
- Retailers of all sizes are experiencing reduced inventories, although there continues to be a fight for shelf space as new product launches continue and must be supported. Many of these new product launches may have to prove themselves online first in order to be marked a retail success.
"As many traditional brick-and-mortar stores close, more consumers are viewing online components as a convenient way to research and purchase products both online and in-store, and retailers are realizing the importance of online merchandise marketing," says Bukovnik. "Online merchandising applications such as product demos, product selectors, and buying guides are no longer considered an e-tail luxury - they are a must-have."
Even planned advertising spends in 2009 are supporting the claim that there is a significant shift from traditional to Web marketing. In fact, a recent study from e-Marketer shows an average 66.5 per cent planned spending increase online, compared to a 3.2 per cent increase in increased television spend.
Despite tighter budgets, companies are investing more into their online strategy to support market changes, leading to growth in companies such as Easy2 Technologies.
Easy2 provides online merchandising applications to a raft of well-known US companies and says it has signed up 25 new clients within the last 90 days - companies such as IO Gear, John Deere, Char-Broil, Plantronics, KitchenAid Canada and Cooper Lighting.
"Because the market is shifting toward online shopping more so than ever before, companies are realizing that in order to remain competitive, and in some cases, in business, they need to shift marketing initiatives to the Web, as opposed to traditional mediums," he said.
"Even in this economy, consumers are still spending; they are just doing it more wisely. Therefore, adding interactive tools that drive consumers to goods that meet their needs and help them make educated decisions, such as product selectors and buying guides, just makes good business sense."
Source: Inside Retailing
Wednesday, 18 March 2009
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