California Apparel News

Search-engine optimization (SEO), search-engine marketing (SEM), and site search involving email, mobile and social media topped retailers’ wish lists for the year, according to a recently released study by eTail, the e-commerce and online B2B trade show.

A significant number—72 percent—of the retailers surveyed in the 2013 Technology & Retailer Spending Outlook Benchmarking Study said they have a great deal of cash on their balance sheets, but 56 percent said they only expect a modest improvement in the economy, revenue and hiring this year. And 40 percent of the survey respondents said they don’t expect a full economic recovery until 2013–14 or later. Of the 100 retail executives surveyed,23 percent said headcount will never return to pre-recession levels. The study, which was released earlier this month, wascompiled at the eTail event in Boston in August. More than 100 retailers participated in the survey, which was created to ascertain technology spending habits from a number of verticals, including apparel, sporting goods, consumer electronics, travel and hospitality, mass-market retailers, and specialty/niche.

When asked what external resources they were planning to invest in for the last quarter of 2012, the highest percentage—48 percent—of survey respondents said the combined field of SEO, SEM and site search—all of which involves email, mobile and social media—topped the list. In terms of spending intentions for the next six months, the top three areas—all at 29 percent—were SEO, SEM and site search; online video; and the combined field of CRM (customer relationship management) systems, customer segmentation and loyalty. And when asked about spending over the next year, 30 percent said they were looking to implement CRM systems and improve customer segmentation and loyalty.

When asked what area they are not planning on spending resources on at all, the top answer, at 57 percent, was the combined fields of fraud, privacy, site security and logistics; payment processing; and global solutions.

Retail goes mobile

Last year, smartphones and tablets played a growing role in online shopping, with consumers increasingly using smartphones to check prices and product features while physically in a retail store. Fifty-two percent of e-commerce transactions included free shipping, representing an all-time high. (The previous high was Q4 2010 at 49 percent.)

That growth trend appears to be poised to continue, according to the recent eTail benchmarking study.

Sixty-two percent of the respondents see mobile as the biggest growth area in the next year. Social media came in second, at 27 percent, followed by tablets at 25 percent. In terms of where, specifically, respondents are focusing their mobile efforts and resources, the majority cited the areas of website and applications support, paid searches, research, design/responsive design, commerce, and general optimization.

Stay social

In terms of how exactly they are using social media, 76 percent of the respondents said engagement, followed by 51 percent using it for public relations, 47 percent using it for customer service and 42 percent using it for sales. This order surprised Lori Hawthorne, events director for eTail Portfolio.

“One surprising statistic arising from the survey was that 76 percent of the respondents noted that they are using social media purely for engagement, versus for commerce. Although social media may be a significant factor in the commerce process, engagement with customers using social platforms is most important right now,” Hawthorne wrote via email.

In terms of advertising, online ad sales in the United States rose 21.9 percent in 2011 to $31.74 billion, the first time they topped $30 billion. This marks a return to growth rates not seen since the 2006–07 measurement period, before the recession, according to the study.

And retail marketers accounted for the single largest chunk of online ad spending in 2011, when they spent$7.1 billion on online ads, 22.4 percent of the total. Online retail spending for Q4 2011 increased 14 percent year-over-year to $49.7 billion, according to the study.

Holiday stats

Although some industry analysts are gearing up for a mild holiday sales season, e-commerce spending has remained strong throughout the economic recovery.

Ten individual days in the last quarter of 2011 surpassed $1 billion in online spending, led by Cyber Monday (the Monday following Thanksgiving) at $1.25 billion, according to the eTail report. The first Monday in December ranked second at $1.17 billion, followed by Green Monday, which fell mid-month on Dec. 12 and took in $1.13 billion.

The top-performing online product categories were digital content and subscriptions, jewelry and watches, consumer electronics, toys and hobbies, and computer software. Each category grew at least 18 percent compared with the previous year.

For the entire year of 2011, U.S. retail e-commerce spending reached a record $161.5 billion, a 13 percent increase from 2010.

eTail is a conference series held biannually in the United States and internationally, offering best practices and tactical strategies presented by retail innovators from every facet of the industry. Its next benchmark study will be taking place at eTail West Feb. 25–28 in Palm Desert, Calif.