Online retail: Top 5 winter winners

As part of Conchango’s assessment of e-commerce sites, usability and navigation, customer support, price proposition and company stability were highlighted as key factors affecting a company’s success this Christmas.

Websites likely to buck the economic gloom are those able to offer good delivery and return, refund and exchange services, competitive pricing and promotions and a good range of products with accurate information and good availability.  Company stability will also be a significant differentiator for retailers this Christmas.  Those who can reassure consumers that their business won’t go bankrupt, and that their Christmas presents are safe, will reap the benefit to their bottom line in January.

Conchangop predicts the ‘winter winners’ of 2008 will be:

1.       Play.com: for excellent pricing and delivery combined with a huge range of products available with deals and discounts, good delivery and market perception as cheapest online for entertainment

2.       Tesco: with a strong and trusted brand, it offers a wide range of pricing across multiple product ranges and services and the site gives a consumer a good experience

3.       ASOS: for a varied and affordable range complemented by easy site navigation, great customer service and quick delivery

4.       Net-a-Porter: full of luxury clothing and accessories with an easy to find search capabilities and a good service

5.       Thorntons: for a beautifully balanced price and quality proposition supported by a trusted brand

Despite the current economic climate, the online industry anticipates a 15% rise in online sales over the Christmas period.

Lynne Davidson, Head of Retail, Media & Entertainment Consulting at Conchango says: “There is no doubt 2008 will be one of the toughest Christmas’ the retail sector has seen for a long time.  But rather than give up and drown at sea, brands should be fiercely swimming against the tide.  We’re not suggesting heavy financial investment.  Rather, serious strategic thought into how brands can adapt to, or even exploit, the current retail market conditions is required.  We’ve seen some retailers, including mid-range brands, buck the downward trend with strong financial results.  There is no reason why, with some smart thinking, this can not be replicated by others.”

To help retailers struggling to prepare for this unusual Christmas climate, Conchango has created best practice guidelines:

Relevant campaigns

 Tailor campaigns, offers and Christmas strategy around the current economic climate and ensure that best offers are communicated across the marketing and advertising channels. However, avoid the use of ‘sale’ messaging at all costs.

Web

Keep downtime until 3.00am, use worst case scenarios on shipping and estimated delivery dates, evaluate platforms by investing in load testing and ensure that enough bandwidth is available at peak times.

360 retail

Ensure all messages, stock and promotions are consistent across all channels.

Review stock

Assess intended stock line-up.  Does it still hold value and is it suitable for a much more price conscious consumer?

Out of town complexes

Used by many consumers to complete all of their shopping in one hit, it’s vital that out of town stores can provide what shoppers need that day or they will go elsewhere. Think high stock volumes of hero products, alternative ordering and delivery options for unavailable items and high staffing levels.

Exchanges, returns, refunds

Must be quick, must be easy and must be multi-channel.

Navel gazing

Look at footfall and traffic stats over the last nine months. What are like-for-like sales showing? How are the figures, year to date? Re-forecast to create realistic targets and goals.

Inspire

Offer products and service that will leave a permanent impression, post-economic slowdown. It may well be a time to watch the pennies, but there is no need to make everything look and feel cheap.

www.conchango.com