Consultant Chris Jones of Redsocks reviews the latest merchandising techniques for e-retailers and brands selling through online retail sites.

1. Digital Marketing Priorities 2016
Brought to you by:
Merchandising in 2016 – The End of Online Equality?
Chris Jones
Consultant @
Redsock.biz
Not all channels are equal. Mobile First has a corollary: Desktop Second. And not all
products are equal - brands are fighting back. They’re hiring ex-retailers to change their
former employers’ List-Curate-Automate approach. Find out what the “end of online
equality” means in practical terms for online merchandising in 2016.
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a headshot
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2. 2
Agenda
 (About me)
 Perceptions of online merchandisers
 Mobile first, not just mobile equal
 Brands & suppliers: awake!
 What this means for online merchandisers

3. 3
About me

4. 4
About me

5. 5
Agenda
 (About me)
 Perceptions of online merchandisers
 Mobile first, not just mobile equal
 Brands & suppliers: awake!
 What this means for online merchandisers

6. 6
Defining Online Merchandising
Taking the customer from landing to add-to-cart

7. 7
Perceptions for 2014?
Digital Marketing Digital Merchandising
Trading
Listing

8. 8
Perceptions for 2016!
Digital Marketing Digital Merchandising
Trading
Listing

9. 9
2014 or 2016 where you are?
 Which of the previous pictures represents how your digital
merchandising function is regarded?
 A) Feels like 2014 from back where I am
 B) Feels like 2016 here already
 C) It’s probably 2016 out there, but not where I work!
 D) Here in 2015, we’re in transition from 2014 to 2016
 E) Don’t know

10. 10
Agenda
 (About me)
 Perceptions of online merchandisers
 Mobile first, not just mobile equal
 Brands & suppliers: awake!
 What this means for online merchandisers

11. 11
Rise of mobile is well documented
http://www.smartinsights.com/mobile-marketing/mobile-
marketing-analytics/mobile-marketing-statistics/
Smartinsights IMRG
http://www.imrg.org/imrg-capgemini-quarterly-
benchmarking-may-to-july-2015
(Mobile includes tablets in this definition)

12. 12
We know behaviour is different on mobile…
NY Times Avg Pages
per Visit
Avg Session
Duration
Mobile 2.55 1 min 43s
Desktop 3.58 17 mins 31s
Amazon Avg Session Duration
Blended
Mobile
4 mins 38 secs
Desktop 8 mins 35 secs
Mobile is about immediate impressions, headlines not details…
…and we may not even be really concentrating on it

13. 13
We know behaviour is different on mobile…
NY Times Avg Pages
per Visit
Avg Session
Duration
Mobile 2.55 1 min 43s
Desktop 3.58 17 mins 31s
Amazon Avg Session Duration
Blended
Mobile
4 mins 38 secs
Desktop 8 mins 35 secs
Mobile is about immediate impressions, headlines not details…
…and we may not even be really concentrating on it

14. 14
We know behaviour is different on mobile…
First impressions are typically emotional impressions. We save
the rational analysis for later (on our PCs), where we can see
more detail and depth
Right
brain
Left
brain

15. 15
Lip-service paid to “mobile first” mantra
Yet we implement mobile onto retail websites as an equal to PC
rollover
Left
brain Right
brain
Left
brain
Mobile First? PC Second?
Screenshots from
houseoffraser.co.uk

16. 16
Change is coming in 2016
Left
brain
Right
brain Screenshots from
marksandspencer.com
 1) Driven by retailers themselves

Mobile First PC Second

17. 17
Change is coming in 2016: True Mobile First
Left
brain
Right
brain Screenshots from
marksandspencer.com
 1) Driven by retailers themselves
 2) Driven by the brands and manufacturers that supply them
Mobile First PC Second

18. 18
Agenda
 (About me)
 Perceptions of online merchandisers
 Mobile first, not just mobile equal
 Brands & suppliers: awake!
 What this means for online merchandisers

19. 19
Brands wake up to Digital… and not just for marketing
2015
2014
Brands are hiring retail expertise.
Not to sell D2C, but to work with
their retailers; and including
Merchandising in the skills mix

20. 20
Brands wake up to Digital… and not just for marketing
2015
2014
Brands are hiring retail expertise.
Not to sell D2C, but to work with
their retailers; and including
Merchandising in the skills mix

21. 21
Offline, they’ve long understood retail merchandising
…and been prepared to pay for better placement/presentation!
Photo in House of
Fraser

22. 22
In 2016, we can expect this to arrive online in force
…and “equal treatment” of products/brands to be challenged
Screen clip from
houseoffraser.co.uk

23. 23
“Automation” equality could be strongly challenged
With brands
insisting on some
more control over
such behaviour Screen clip from
houseoffraser.co.uk

24. 24
And much more attention paid to relative prominence
Screen clip from
houseoffraser.co.uk
And therefore
with an interest
in how this can
be influenced
on your site

25. 25
Particular focus on “generic” terms
Screen clip from
tesco.com
…Because these are a
sign of a brand-agnostic
customer who can be
“won”

26. 26
Where are your brands?
 Are your brands/suppliers already involved in more detail
in your site than merely banners and promotions?
 A) Yes, they are into the details
 B) Banners and promotions, yes, not otherwise
 C) They pretty much leave this up to us
 D) Yes in store, but not yet online
 E) None of these

27. 27
Agenda
 (About me)
 Perceptions of online merchandisers
 Mobile first, not just mobile equal
 Brands & suppliers: awake!
 What this means for online merchandisers

28. 28
Roles for 2016!
Digital Merchandising
Trading
Listing
 Stronger relationships with buyers
 Rainmaker role, as suppliers/brands
more willing to pay “not to be equal”
 In A/B-testing, suppliers/brands will
want to be in the “A” outcome group!
 Automation solutions will need much
more guidance
 Categories and sub-categories will
need much more specific curation
 The product-specific intensity of in-
store visual merchandising will need
to be more strongly replicated online

29. 29
Summary – questions please!
 Mobile first means mobile
different
 Left-brain/right-brain
merchandising goes online
 Brands & suppliers: awake!
 Generic becomes a fight for
priority
 Online merchandising more
prominent in trade-terms
 More management of
automation solutions
 Retail is detail!
 http://goo.gl/c9ykoj
 Benchmarking tool for brands
to measure how their retailers
merchandise them online
 …or for retailers to understand
what opportunities they have to
leverage brand interest
 Also see:
http://www.smartinsights.com/mob
ile-marketing/mobile-marketing-
analytics/mobile-marketing-
statistics/
 http://www.smartinsights.com/eco
mmerce/merchandising/online-
merchandising/