business models

Why The Lingerie Industry Can’t Compete With Victoria’s Secret

Source: http://www.businessinsider.com/victorias-secret-will-beat-competition-2013-9

victoria's secretVictoria’s Secret is facing a deluge of competition from lingerie start-ups that seek to challenge the brand.

Brands like AdoreMe, Intimint, and True & Co. are trying to seduce Victoria’s Secret customers with lower prices and more tailored selections.

AdoreMe offers direct-to-consumer lingerie at about half of Victoria’s Secret prices.

Intimint asks customers to take a quiz and sends them new lingerie selections every month, based on their preferences. True & Co. sends women five bras a month, giving them the option of keeping what they like and sending back what they don’t.

While these brands are consumer-friendly and creative, their business models ignore exactly what makes Victoria’s Secret so successful.

In the ’90s, Victoria’s Secret used to focus on value. But the brand floundered because there was nothing to set it apart from other price-friendly brands like Hanes and Maidenform.

Victoria’s Secret didn’t start dominating lingerie until it stopped being cheap and began focusing on the customer experience.

Stores were redesigned with soft, pink wallpaper and inviting fitting rooms. Friendly, attractive associates were trained to greet customers and measure their bra sizes.

Women were willing to pay $50 for bras because the luxury experience made their lingerie purchases feel like investments.

This attention to customer service helped Victoria’s Secret overtake competitors like Frederick’s of Hollywood and ! post rec ord sales even during an economic downturn.

AdoreMe CEO Morgan Hermand-Waiche told Business Insider that “people are so tired of high prices and slow-fashion from Victoria’s Secret.”

But Victoria’s Secret’s sales suggest differently: The brand recently reported a 6% increase in the second quarter, on top of a 10% increase last year. That’s among the best in the retail industry.

Women don’t line up at Victoria’s Secret because it’s cheap or has an ever-changing assortment of merchandise.

They trust the brand and feel like a trip to a Victoria’s Secret store is a treat.

Victoria’s Secret offers an experience that e-commerce retailers simply can’t compete with.

 

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Monday, September 2nd, 2013 news No Comments

drag2share: Beyond Pinterest: The Best Of Other Social Commerce Business Models

source: http://feedproxy.google.com/~r/businessinsider/~3/ck4IGt6CYgY/social-commerce-photo-apps-2013-8

bii social commerce revenue

Social commerce is still a young category, with room for new formats and innovations that might bring the worlds of social media and e-commerce into closer synergy. Facebook and Pinterest may be the biggest players in social media – but they don’t own the social commerce space.

Other players, from daily deals site Groupon to Chinese e-commerce giant Alibaba, have also tried to leverage social ingredients to boost retail sales, drive user engagement, and build brand loyalty.

In a recent report from BI Intelligence, we look at successful examples of businesses and business models for generating commerce via social media-based strategies, analyze Pinterest’s success as a social commerce platform, look at Facebook’s potential as a social commerce contender, and examine the e-commerce conversion and order value gap.

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Friday, August 23rd, 2013 news No Comments

drag2share: The Rise Of Social Commerce: How Tweets, Pins And Likes Can Turn Into Sales

source: http://feedproxy.google.com/~r/businessinsider/~3/-0TCfE2VDH4/social-commerce-drives-retail-2013-8

bii social commerce revenue share

Overall usage on social media platforms is exploding. Millions and millions of consumers are expressing likes on Facebook, tweeting about products on Twitter, and pinning on Pinterest every single day.

Retailers and brands are therefore increasingly focusing their attention on social commerce.

But, many struggle with the question: how do you convert a “like,” a “tweet,” or “pin” into a sale?

In a new report from BI Intelligence, we look at successful examples of businesses and business models for generating commerce via social media-based strategies, analyze Pinterest’s success as a social commerce platform, look at Facebook’s potential as a social commerce contender, and examine the e-commerce conversion and order value gap.


drag2share – drag and drop RSS news items on your email contacts to share (click SEE DEMO)

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Tuesday, August 20th, 2013 news No Comments

Source: http://www.businessinsider.com/social-commerce-and-retailer-benefits-2013-8

BII ecommerce conversions size

Overall usage on social media platforms is exploding. Millions and millions of consumers are expressing likes on Facebook, tweeting about products on Twitter, and pinning on Pinterest every single day.

Retailers and brands are increasingly focusing their attention on social commerce.

But many struggle with the question: how do you convert a “like,” a “tweet,” or “pin” into a sale? Is social media really going to be a source of dollars and foot traffic?

In a recent report from BI Intelligence, we look at successful examples of businesses and business models for generating commerce via social media-based strategies, analyze Pinterest’s success as a social commerce platform, look at Facebook’s potential as a social commerce contender, and we examine the numbers behind the social commerce conversion and order value gap. The report is supplemented by rich datasets on social commerce, and subscribers will also receive full access to BI Intelligence’s full library of hundreds of in-depth reports, charts and datasets — including up to date coverage on social commerce.

Access The Full Report And Data By Signing Up For A Free Trial Today >>

Here’s an overview of the converging trends that promise to transform social media into a viable commerce platform:

BII social mobile purchases

BII specialty retail social platforms

BII_PinterestInStoresCOTD_7_11_13

BII AOV comparisons

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Friday, August 2nd, 2013 charts No Comments

drag2share: The Best Of The Rest In Social Commerce: Daily Deals, Shoppable Photo Apps, And More

source: http://feedproxy.google.com/~r/businessinsider/~3/ao0J30HfwTs/social-commerce-daily-deals-photo-apps-2013-6

The Best Of The Rest In Social Commerce: Daily Deals, Shoppable Photo Apps, And More

Jun 3, 2013

bii social commerce revenue

Facebook and Pinterest may be the biggest players in social media – but they don’t own the social commerce space. Social commerce is still a young category, with room for new formats and innovations that might bring the worlds of social media and e-commerce into closer synergy.

Other players, from daily deals site Groupon to Chinese e-commerce giant Alibaba, have also tried to leverage social ingredients to boost retail sales, drive user engagement, and build brand loyalty.

In a new report from BI Intelligence, we look at succe! ssful&nb sp;examples of businesses and business models for generating commerce via social media-based strategies, analyze Pinterest’s success as a social commerce platform, look at Facebook’s potential as a social commerce contender, and examine the e-commerce conversion and order value gap.


drag2share – drag and drop RSS news items on your email contacts to share (click SEE DEMO)

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Monday, June 3rd, 2013 news No Comments

The Machine is Us/ing Us

Great video of the evolution of the Internet; how its basic features changed the habits and expectations of users and therefore changed entire industries forever. It takes the viewer from web 1.0 to web 2.0 to web 3.0 and explains the transitions and the tipping points that once passed lead to irreversible changes. Industries trying to hang on to old business models and processes will die and be replaced by new industries operating at new plateaus of efficiency.

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Wednesday, July 29th, 2009 digital No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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