Interesting piece from the retail bulletin this morning underlining that department stores are under threat from the internet and not as an e-commerce tool but as a research tool.

It would seem that consumers don’t look for inspiration from department stores, but prefer to research and identify the product/s they want to purchase before they’ve left the house or the office.

To strengthen this argument Michele Norsa, the chief executive of fashion business at Salvatore Ferragamo, believes that brands with their own stores will suffer less in the current economic climate than those that only sell through concessions.

This post and the entry on the ‘new-info-shopper’ raise an interesting point, that if the consumer is researching more heavily online, before making a purchase is the brands first opportunity to make an impression their website? And if this is then fulfilled in store should brands focus more on making these two touch points more integrated and less on their online presence offering just DR?

As the guys in the office would testify I love Nike iD and they’ll be happy to know that I’m just as in love with their new offering for the Nike Air Troupe.
The site is great as you would expect, but most astoundingly and of extreme scientifical note Nike have somehow created a black hole within the site , as I managed to loose 2 hours of my Sunday afternoon designing trainers when I could have sworn I’d only been on the site for 30 minutes?

The concept of the site is for individuals to design their own pair and then challenge other designers from around the world, with the winner receiving their uniquely designed pair of Troupes and €300 to spend on Nike id.

The site offers organic growth through social media with designers challenging or just showing off their designs to their network of friends in Facebook and MySpace, either through messaging or embedding the widget. As an open sourced widget the individual can monitor where their design is currently ranked in real time, without having to login and access the Troupe site. Nike have created the widget to exist within sites and platforms that are visited frequently, to promote brand awareness and product placement, ideal when you consider that at £85 a pair these trainer won’t be a rash purchase.

Check out the site:
http://niketroupebattle.com/

Emarketer have published today the findings from a study by the Aberdeen Group looking into ROI within social media marketing.

The study found that 63% of the companies within the survey (defined as best-in-class) are planning to up their social media marketing budget for 2009.

The research also discovered that 39% of the companies surveyed said it was somewhat difficult to measure social media and 20% said it was very difficult. This highlights an interesting point in that even at a time when digital budgets are being scrutinised companies are still considering increasing  investment in a medium that’s hard to quantify.  I feel this underlines the importance and value that companies now put on social media, plus and most importantly how social media stands alone as platform within the digital media space.

After working with Rado quite extensively in 2008 it comes as no shock to learn that they have launched a social network targeting the design community.

With the design audience a core market for the Swiss watch manufacturer it looks like they have removed the middle man (digital design titles) in order to reach and communicate with this very important user. Once this social network is established is there any need for Rado to buy digital media targeting the design community?

Nice project by Morgans Hotel Group, which “seeks to capture the creative spirit and collaboration that drives independent musicians and filmmakers.”

Morgans Hotel Group have created the site so it exists effortlessly within social media – extending the project beyond the site itself.

With the economy as it is currently, a project like this offers Morgans with the opportunity to engage with their audience, even if they’re not considering booking a $350 a night room. Where normally the only way for a hotel chain to get its product in front of an individual is at the research and booking stage, product placement for Morgans has been packaged within exclusive video content – all the video footage for this project is set in their rooms/suites.

Interestingly the project highlights that Morgans are not shying away from the fact that we’re in a recession, the title gives it away, but actually embracing it and have produced what I’m guessing is a long term strategy.

Early Jan ‘09 the Wall Street Journal wrote a piece about the ‘New Info Shopper’, those consumers that pour over information before making any purchase, from a £20,000 car (as you’d expect) all the way down to a tube of toothpaste.

With the internet close to hand at all times these shoppers can research from their desk at work, on their commute from mobile or from their laptop at home – my phone has a bar code scanner so I can compare where I can get the best price for that product. This easily accessible information makes the consumer very powerful and has the potential to create a shift in consumers purchasing on brand name alone to purchasing based on facts.

With the economic climate as it is these consider purchases highlight the need for brands to explain the stories behind their brand and why their product is a better choice over their competitor.

The WSJ showed that these consumers have become highly suspicious of TV ads, with 78% of this consumer group feeling that TV ads no longer had enough information in them. With the internet the new place to window shop, the WSJ has coined the phrase ‘Windows Shoppers’, the success of Net-a-Porter definitely demonstrates this.

The findings also showed that 92% of respondents said they had more confidence in information they seek out online, than that of a salesclerk or other source.

The WSJ also showed that 70% of Americans now say they consult product reviews or consumer ratings before they make their buying decisions. Sixty-two percent say they spend at least 30 minutes online every week to help them decide what and whether to buy, in the under 45s this audience made up 73%.

I believe that this research has shown that as part of a brands digital communication it must make available all information about that brands products, heritage or news. Consumers will find it, whether it’s on an unofficial fan page in Facebook or the blog of a brand advocate. With this in mind it is imperative that brands provide the most detailed assets for these social media PR engines e.g.  Product shots in the highest resolution or detailed insight to the product designer’s inspiration behind the new launch, so as to provide these unofficial brand pages or blogs with the tools to create the most detailed review of the brands product/history/news, minimising conjecture.

Within the luxury and premium sector this type of collateral is easily available, with great heritage and contemporary information that is always news worthy. If you then ad to this the emotive connection that these brands have with their consumers, it is possible to leverage these brand advocates within social media to provide detailed touch points for those ‘New Info Shoppers’.

A study by Netpop has shown that social networkers are much more likely to shop and spend more online than users that don’t engage with their social network.

The study showed that social networkers bought a number of products and services online, spending on average of $101 per month. Non-contributors to social networks spent about 20% less per month.

Social networking has grown 93% since 2006 , with 76% of US broadband users actively contributing  to the web via social media.

Experian’s ‘Engaging Online with the Empowered Customer’ report has shown that in 2008 fashion retail sites saw a 31% growth in traffic . Alongside only a 1% growth in traditional catalogue adoption, the research demonstrated the shift by consumers to a more digital focus when researching for fashion.

The report demonstrated that although growth in traffic had been exceptional, fashion retailers did not capitalise on repeat purchasing, with 45% of customers making just one purchase. The report also showed that just under a third of customers made up almost 70% of the revenue, customers that should be identified and encouraged to make more frequent visits.

Experian felt that retailers and home-shopping companies were not achieving customer expectations of multi-channel. It called on them to ‘blend’ online and offline activities to offer customers a better experience and encourage repeat purchases.

“Greater emphasis needs to be placed on the exploitation and application of existing data assets,” said Marie Myles, director of marketing for Experian’s integrated marketing division. “The enhanced insight derived from this approach and the move to a coordinated customer contact strategy will lead to more profitable and longer relationships between brands and consumers.”

Adidas have shown that they understand that the savy consumer researches fashion before making a purchase, in this current economical climate all purchasing is becoming more and more considered. Their new look book is very slick and with the occasional play of ‘ beggin’ from their TV ad blends the offline with the online very well.

I really like this site built by the Tate Liverpool, not for its aesthetic but for the incredibly powerful and emotional UGC, it underlines that UGC isn’t just the preserve of teenagers.

This project certainly demonstrates that UGC isn’t something that needs to be feared and that the content produced can often be incredibly valuable.

This initiative also highlights that emotive subjects can translate really well online, just read some of the comments.