Erik Jerbéus, our Solution Specialist from Vaimo Stockholm, visited Retail Day at the Hilton Hotel Slussen in Stockholm, on 21 October. The presenters focused on profitability, because while the market has grown exponentially in the last decade, the profits have barely increased. Common opinion holds that eCommerce and the possibility of drawing price comparisons online is one of the greatest factors that has led to growth in the retail market.
A few important topics included:
-The importance of storytelling in marketing.
-How retail-media mashup companies, such Net a Porter, evolve.
There was analysis regarding the aspects that make different lines of businesses work better online, and according to the speaker, when the cost reduction due to moving online is the greatest, the growth is also increased. For example, books have a 46% market share online but food only has a 2% share. Therefore, it's not more cost-effective to sell food online, and as a result, there is less growth.
The founder of Adlibris and Apotea, Pär Svärdson, talked about the importance of transparency and letting the customer make their own choices. His companies display stock levels, and have many different delivery alternatives, which make customer service much easier. The delivery costs also have a huge positive impact.
It is interesting to note that while the main focus for the day was profitability, companies like Adlibris and Apotea actually are highly focused on lowering their prices, and therefore, the margins force their competitors to do the same.
Sibas CEO, Susanne Ehnbåge, spoke about their use of WIG (widely important goal) in their work of turning Siba around from a deep crisis a couple of years ago. Their WIG was to increase conversions both online and in their stores. Online, they put greater effort into improving the site search and did this with Loop54.
Lastly, Soundtrack Your Brand presented how music can be used to improve business, which was not directly related to eCommerce, but was intriguing nonetheless.