(photo via adidas)
In the following video from Kare 11 it’s explained that the new IG shopping experience is primarily targeting women. 20 Brands have been included in the rollout. Details aren’t clear on when smaller brands will be able to capitalize on the new feature. Check out the video below:
Now that you’ve done that let’s dive into this discussion. I was writing with Anthony Chiappetta (https://chiappettashoes.com/), who is creating one of the best omnichannel experiences in the footwear industry and the topic came up on IG Shopping. For the record, I’m not on IG. I was on the platform and was building a solid following, but I killed my page because I realized something that I covered in my recent book. I also discussed the implementation of IG stores as a means of brands building DTC in the book:
Nike’s Consumer Direct Offense, Amazon & StockX: The Disruption of Sneaker Retail
Instagram, like Amazon, like eBay, like StockX, like GOAT and other third party e-commerce platforms can be used as vital segments of a marketing and sales strategy. There is an understanding that many consumers are not conscious about how and when they buy. The simple reason for this is Amazon has created a problem for all of retail with free returns. Every e-commerce strategy has to incorporate a free return policy because customers expect it. This is an extremely expensive issue that companies are attempting to counter with “measuring apps” to prevent the return of footwear and apparel. Margins are continuously diminished with every item returned.
I’m going to try to make this short; in the book I explained the problem with seling on Amazon in great detail. That information is interchangeable with this new IG feature. As businesses devote more and more time to third party platforms those businesses fail to grow their own websites and sales channels. In the book I explain that a company has to have a strategy that utilizes social media and Amazon, but I also explain that companies are being duped and the long-term issues that arive with third party will eventually erode a business. What is a company to do?
2017 NIKE, Inc. Investor Meeting | The Scale of Sport Highlights – A Detailed Breakdown
In Nike’s 2017 Investor’s Day they delivered a number that would explain why the brand is currently crushing its competitors. Inside of Nike’s digital ecosystem customers buy 3 times as much during a visit. While the company discussed their London based Instagram experiment and talked about their relationships with Amazon’s brand registry, it was the direct to consumer CDO that was the most stunning area for growth. Which moves this discussion back to this post.
As companies begin to build their Instagram store experience something in their own house will undoubtedly suffer. The ease and speed associated with reaching the customer “where they are” will undoubtedly lead to everything I experienced with a half a million dollar Amazon store. I explained in detail in the book how the loss of margins and the inability to gather customer data for years was a slow road to death.
Sometimes the pretty, new sales platform isn’t the best option. Unfortunately most companies are unwilling to utilize slow growth methods. They can’t afford to do so… the only companies that can really afford it are the big businesses. They can sustain and continue to build in-house as well as capture the immediate growth on social media stores. You know what they can also do? They can avoid the issues that arise when Instagram decides to limit the reach of your pretty new shop to followers you already have when they force you to buy ads to hit those ‘followers’.
That is the real issue and it’s more of an issue for the little guy than it is for Nike, adidas or H&M.
