2. top retailers set the pace for innovation 2
The eCommerce market
continues to explode.
According to eMarketer’s
latest forecast:
Retailers large and small are rightfully excited by this prediction.
However, if they are to capture their share of the projected $1.5 trillion,
they’ll need to:
develop strategies that align with the
expectations of a new breed of incredibly
demanding consumers.
As Forbes notes, today’s online shoppers expect personalized, deeply
interactive experiences that cater to – and possibly even anticipate – how
they think and what they care about.2
Plus, they want these capabilities
to be delivered in sleek, hyper-efficient ways. And with more options than
ever before, they won’t hesitate to seek out the services of a competitor
if they don’t immediately get what they want.
With consumer behaviors changing seemingly overnight, it’s imperative
for retailers to become as agile as possible. It’s the only way they can
keep pace with – and even exceed – customer expectations.
Agility and Innovation Drive
Success in the eCommerce Market
1
eMarketer. “Global B2C Ecommerce Sales to Hit $1.5 Trillion This Year Driven by Growth in Emerging Markets.” February 3, 2014.
2
Forbes. “Six Trends That Will Shape Consumer Behavior This Year.” February 4, 2014.
In 2014, worldwide
business-to-consumer (B2C)
eCommerce sales will increase:
20.1%
...Reaching an astonishing
$1.5 trillion
1
3. top retailers set the pace for innovation 3
Demandware clients use agility and innovation to their advantage
each day. With the help of the Demandware Commerce
platform, they’re able to introduce innovative brand messaging,
merchandising initiatives and ways of interacting with consumers –
and find themselves empowered to stay ahead of rapidly evolving
preferences.
Their success stories highlight the value of understanding a
continually changing market, anticipating the next trend and
acting in a swift, decisive and timely manner.
They’ve become so adept at this, in fact, that we chose to honor
the most innovative and forward-thinking among them with our
inaugural Demandware Commerce Pacesetter Award.
Introduced at the 2014 Demandware XChange Conference, the
Demandware Commerce Pacesetter Award was created
to recognize individuals and organizations that used innovative
commerce strategies to drive exceptional business results.
These companies accomplished truly impressive results over
the last year. For example, they:
How Demandware Clients Innovate
Finalists for the Inaugural Commerce Pacesetter Award:
Crocs, Inc., Michael Hill and Scotch & Soda
Let’s take a look at what makes these retailers so innovative.
Connected consumers to
their brands in unique and
engaging ways
Executed an international
expansion or a new brand
rollout in a short timeframe
Increased sales thanks to
merchandising and marketing
innovations
Built a vision and plan that
set them apart from the
competition
4. top retailers set the pace for innovation 4
Innovation in Action:
Crocs, Inc.
The Initiative
As the maker of some of the world’s most recognizable shoes, innovation is
a familiar topic to Crocs, Inc. With its iconic clog design and comfortable,
lightweight materials, Crocs set a new standard for casual footwear – and has,
since its inception in 2002, sold more than 300 million pairs of shoes in over 90
countries worldwide.
When Crocs needed to respond to shifting consumer traffic patterns – while
finding a way to quickly sell end-of-life products – it knew an insightful, forward-
thinking strategy would be the key to success.
The Innovation
Crocs addressed these challenges with a two-pronged approach. Recognizing
that more and more consumers were visiting its web site on mobile devices – and would
continue to do so well into the future – the company reworked its existing web site to incorporate
responsive design best practices. This allowed the site to automatically adjust its display
to fit a customer’s device – whether it’s a smartphone, tablet or PC – while offering
complete feature parity.
In addition, Crocs introduced the “lucky bag” promotion to its Japanese shoppers. Timed to
coincide with the Japanese New Year – a culturally significant event that encourages people to start
the year with good fortune – the promotion gave shoppers the opportunity to purchase a “surprise”
collection of end-of-life items at a heavy discount. The promotion was so popular that many
categories of products sold out in a matter of hours. >>
5. top retailers set the pace for innovation 5
The Outcome
A responsive new web site and
the “lucky bag” promotion paid
significant dividends to Crocs:
49%
Return on
investment
6 Months
Amount of
excess inventory
sold in 3 weeks
Amount of
annual sales
generated by the
promotion
85%
2%
46%
Smartphone
revenue
Smartphone
conversion rate
6. top retailers set the pace for innovation 6
Innovation in Action:
Michael Hill
The Initiative
Named after a pioneering jeweler knighted in his native New Zealand, Michael
Hill has grown from humble beginnings into a multi-national company with retail
locations on several continents.
Starting small and building a presence that spans New Zealand, Australia,
the United States and Canada illustrates Michael Hill’s commitment to providing a
top-of-the-line customer experience. In an increasingly digital age, the company
recognized that continuing to drive growth and effectively catering to its customers
required an expanded – and more engaging – web presence.
The Innovation
To further solidify its position as a global player in the jewelry market, Michael Hill launched
an omni-channel commerce strategy that simultaneously deployed four new web sites in New Zealand,
Australia, the United States and Canada. Built with a responsive design that automatically optimizes the
display based on the consumer’s device, the new sites showcased more than 4,000 products, added
188 pages of new content and included blogs and other social integrations.
Eager to make online shopping rival the in-store experience, Michael Hill also added two inventive new
capabilities to its sites – both of which are designed to turn customer engagement into transactions.
“Build your own charm bracelet” allows shoppers to browse potential charms, drag and drop them into
place and review the finished bracelet before completing their orders. And, “shoppable videos” provide
an immersive, interactive experience that gives consumers more information about a product than
simple, static images. >>
7. top retailers set the pace for innovation 7
The Outcome
The launch of four new web sites
and immersive, innovative online
content generated significant
success for Michael Hill:
2014 Demandware Commerce
Pacesetter Award Winner
Sales
290%
Mobile traffic
97%
TransactionsMobile revenue Conversion rate
500% 200%
Page views
90%
5%
85%
Site visits
8. top retailers set the pace for innovation 8
Innovation in Action:
Scotch & Soda
The Initiative
Based in Amsterdam, Scotch & Soda has gained global recognition by designing
clothing that captures a unique blend of comfort, quality and eccentricity.
The qualities that define Scotch & Soda as a unique lifestyle brand are the same
factors that push the company to work hard to distinguish itself in a crowded
marketplace. To support this goal, Scotch & Soda recognized that expanding
its web presence would play a critical role in enabling its brand and products to
reach more consumers.
The Innovation
Scotch & Soda was not only looking to connect with more shoppers
around the globe, it wanted to do so in a way that aligns with their expectations
and preferences.
So, the company implemented a plan to expand its eCommerce footprint into a
significant number of new countries. In the span of nine months, Scotch & Soda
launched 13 unique sites, with six localized languages and currencies – an effort that
gave the company a presence in 73 countries.
In addition to increasing the reach of its brand, all of these sites were built with a
responsive design that delivers an optimal display and experience on any device,
making it convenient for Scotch & Soda’s customers to shop when, where and
how they choose. >>
9. top retailers set the pace for innovation 9
The Outcome
A rapid rollout of new sites in
a number of new geographies
enabled Scotch & Soda to reap
some impressive benefits: Boosted
revenue growth
Improved
conversion rate
Raised average
order value
Increased
traffic
Increased
page views
Received more
orders from
mobile devices
