LAS VEGAS — Mobile commerce is heating up as retailers gamble on the small, but growing, online channel.
Macy’s plans to enter the m-commerce arena this year with an iPhone app.
“It will be one of the most advanced iPhone apps offered by any retailer,” said Terry J. Lundgren, president and chief executive officer of Macy’s Inc. during a keynote at the Shop.org Annual Summit here late last month. “The amount of e-commerce done by mobile phones is growing quickly and is expected to triple over the next few years. We are moving fast to anticipate and capitalize on this opportunity.”
Other apparel and beauty companies offering mobile commerce include Polo Ralph Lauren, Gilt Groupe, Tommy Hilfiger, Urban Outfitters, Yoox, Victoria’s Secret, CVS, Rue La La, Sears, Amazon, eBay, Etsy and Net-a-porter.
Lundgren did not estimate what share of the company’s online sales could migrate to mobile devices, but he did say Macy’s and Bloomingdale’s direct-to-consumer sales are up 13 percent over last year and will exceed $1 billion for the first time this year; Macy’s initially expected to reach that sales milestone in 2008 before the banking crisis hit.
Macy’s has spent some $300 million on e-commerce infrastructure over the past few years, he said, while acknowledging the company’s progress with multichannel integration is only beginning. To help bolster its multichannel efforts and better understand customers, Macy’s teamed up with Dunnhumby, the consumer insights research firm that helped U.K. supermarket giant Tesco with its successful card-based loyalty programs. Macy’s has been quiet about the partnership, but Lundgren shared a few recent findings on its customers.
Analysis of buying behavior shows Macy’s customers who shop both online and in-store spend double that of the store-only shopper. And every dollar spent on macys.com influences an additional $5.77 spent in stores within 10 days. Further, online shoppers who use the “Finder” fit guide convert to buyers three times more often than shoppers who don’t use that feature.
Lundgren said Macy’s is also diving into social networking and the company’s Facebook page launched two months ago has attracted 75,000 fans thus far.
Though retailers are moving forward on social networking initiatives, most are still struggling to understand and monetize that channel, said Forrester Research vice president Sucharita Mulpuru during her Shop.org keynote. Half of U.S. companies pursuing social networking strategies today are doing so only because there is tremendous “buzz” about it; 66 percent said the return on investment is unclear.
Mulpuru advised retailers to “like social…but love mobile.” And, it’s clear they do love their mobile devices.
EBay president and ceo John Donahoe said mobile commerce continues to grow on the auction site (which also owns online payment company PayPal). So far, four million consumers have downloaded eBay’s iPhone app. The company has done more than $380 million in sales volume over it. Though he described the software as “kludgy,” its cumbersome nature didn’t stop one shopper from buying a $350,000 Lamborghini or another from buying a $150,000 boat over eBay via the iPhone.
From overseeing America’s fastest-growing speciality retailers to codifying cool, WWD talked to the women who are leading the way for the future of beauty. Check out our Instagram Stories to see how these women built today and are creating tomorrow. (📸: @hannah_khymych) #wwdbeauty
For @laperlalingerie's spring 2018 show, the brand chose to host their event at @thevenetianmacao. With Chinese megastars @bingbing_fan and @hubing in attendance, La Perla debuted a rock ‘n’ roll-inspired collection. The show marked the start of Sands Macao Fashion Week, which runs from October 19 to 24 — the city’s first such event. Pictured here are models backstage with glimmering eyes. #wwdfashion (📷: Cheuk-Yin To)
Trending for spring 2018: top stitch design. Gone are the days of stitch just for seams — designers are using the once-minimal detail to create strong decorative elements. (📷: Paola Testa; Styled by @andrew_shang) #wwdfashion
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)