Retail Back to Human. Satisfied employees build trust. The best branding at our fingertips.

Ranking of employee and exemployee satisfaction with their Retail companies

Satisfied employees build trust. The best branding at our fingertips

 

Apple store staff

In many cases, the customer experience is a true reflection of the employee experience. There is a clear correlation between the two.

 

Ranking of employee satisfaction with their Retail companies

Ranking empresas retail valoracion empleado-min

MHE has developed this ranking of employee satisfaction with its retail companies. The initial base used is 268,000 employee and former employee ratings from more than 40 Retail companies published on Indeed and Infojobs as of July 2021. In some cases, these valuations include countries other than Spain. To homogenize the results, the scores have been weighted taking into account the source and the number of opinions available for each individual company.

The total score (Max = 5) takes into account several aspects such as:

  • Wages/benefits
  • Personal/work balance
  • Stability / ease of promotion
  • Management. Direct bosses
  • Culture and business environment

Beyond salary

The implications of employee satisfaction, beyond their salary, go beyond the realm of human resource management. The development of this function, increasingly integrated with the business itself, faces important challenges:

  • Hybrid partial remote work formulas for those activities that allow it
  • Overlap and less and less defined boundaries between work and personal life
  • Self-learning and continued development as a corporate competitive advantage
  • Values and purpose of the online company with personal conviction
  • Greater respect for individual diversity in how to achieve those values and common purpose of the company
  • Execution of communication and internal marketing with greater transparency and authenticity

 

Retail Human Potential>>

 

Technology and Human Resources. Implications

Technological innovations, already in application (e.g. autocheck-out), make it necessary to adapt certain roles and functions in store and central services. It is not always about updating technological skills but also, with special emphasis, developing and completing personal interaction skills.
The qualitative leap of analyzing not only functions, but individual skills with the support of analytics and artificial intelligence begins to facilitate mobility initiatives not exclusively within the same company but also between collaborating companies (e.g. Walmart / Unilever) and in the medium term why not to sectors as different from Retail as Health Services where interaction with customer / patient is key.

 

store staff mirror

 

 

Change of Time Horizons and Professional/Personal Expectations

In the face of greater uncertainty and constant changes ahead, everything we can do to strengthen the adaptability, flexibility and resilience of our employees will pay off.

 

Invest in defining and improving the key levers to achieve greater satisfaction in your employees. It will be the best and most effective branding for your business.

 

 

Más info: carlos.dominguez@mheconsumer.com

www.mheconsumer.com

 

SHEIN doubles its sales for the eighth consecutive year.

It manages to replace  Amazon as the most downloaded shopping app in USA during May 2021

 

Shein home web june 2021

 

Last May 2021, SHEIN managed to replace Amazon as the most downloaded shopping app in the USA. (IOS and Android). This first place in the ranking had been occupied by Amazon for 152 consecutive days.

  • SHEIN was founded in 2008 by Chris XU, an American student of Chinese descent. It has managed to double its sales for 8 consecutive years to achieve an annual turnover close to 10,000 million USD in 2020 (higher than Primark).
  • After drastically reformulating its initial business of selling wedding dresses in the USA from China, SHEIN has focused mainly on the ultra-low cost women’s fashion segment for Generation Z customers and young women online, especially through its app.
  • Unknown brand in China (does not sell in its domestic market), has as main markets USA, Mexico, Europe and Middle East. In total, it distributes to more than 200 countries mostly from its distribution centers in China.

 

 

App Downloads SHEIN

 

The SHEIN business model has three clear levers:

  • Accessibility
  • Choice
  • Addiction

Accessibility
The prices of its products are significantly lower than other competitors. For example, in the women’s dress category, SHEIN offers an average RRP (€15) -50% lower than Zara or Mango and +10% higher than Primark.

Pricing Index SHEIN Dresses

 

Vestidos Escalados Pvp SHEIN

Vestidos rango Pvp SHEIN

Choice
Every day it incorporates about 2,000 new SKUs in Fashion and accessories. Amount far above that of its competitors. The very fast supply chain and flexibility achieved with its local suppliers allow it to make initial runs of 100 units per SKU to later validate the results obtained and expand those products with better acceptance by market.

Addiction
More than 70% of its sales are channeled through its mobile app with all that this entails. Very high frequency of visit to know the news and an average duration of 8 minutes per visit.
From the first moment of registration, the customer receives a chain of promotions and offers that can also be linked to a program of reward points to redeem in the purchases.
TikTok, along with other social networks such as Instagram, especially suitable for mobile are used as a communication support for user content (UGC). Strong involvement with micro influencers.

SHEIN Mobile Home

Strengths

  • Supply chain. They have achieved a strong integration with their local cluster of suppliers with flexibility and agility.
  • Differentiation from other Marketplace platforms. Very focused to date on customer segment and limited product categories.
  • Recommendations instead of searches. Low cost of customer acquisition.
  • Simple and very effective photographs and videos.
  • Sexy. In itself an attribute and product category with strong presence in its assortment and communication.
  • Opportunistic use of external conditions such as U.S. tax/tariff exemptions for small orders

Shein Home Site Junio 21

Weaknesses

  • Delivery issues that impact the customer experience. Delivery lead times of several weeks.
  • Quality and fitting problems. Returns with cost from the second garment per order.
  • Clones and forgeries. Incidents and legal claims of some brands such as Dr. Martens and Levi’s
  • Sustainability and social responsibility. They are not part of the brand’s values until the present.
  • Lack of transparency. Characteristic of Chinese culture
  • Lack of cultural sensitivity for various markets. For instance, controversies generated by the introduction of earrings with the swastika cross or carpets for the home with religious-Muslim motifs.

 

Retail Strategy>>

 

Perspective

New product categories and segments. It is testing and developing new segments such as:

  • SHEIN X. Market place for External Designers.
  • SheGlam. Cosmetics and perfumery. Incorporating more current values of sustainability and well-being.
  • Motf. Product quality upgrade with less emphasis on fashion trend.

Progressive geographical expansion without losing the concentration of efforts in its priority markets such as USA.
Attempts into physical stores. Already present through Pop-up stores (Mexico, London, Paris …) and potential acquisitions eg Top Shop chain.
The lack of proactivity in values and commitments (sustainability, transparency, social responsibility) will have to be reviewed to avoid possible rejections of the Brand.
Persistent rumors of near IPO with record valuation potential.

SHEGLAM SHEIN

 

A commitment to differentiation does not always imply higher costs and higher prices.
Who said extremes were never good?

 

 

Más info: carlos.dominguez@mheconsumer.com

www.mheconsumer.com

 

Priorities and qualities on the rise for Marketing teams.

Obsession with the Customer

 

Marketing vs Customer google trends interest Eng

There is no doubt about the obsession and interest in the Customer that permeate our companies increasingly in the last 10 years. The constant concern for competition, sometimes sickly, has been far outweighed by a greater focus on the Customer

Retail Marketing has ceased to be a mere department to be integrated into the different activities of the company. In its evolution, this function has had very different focuses and emphasis:

  • Concentration on communication management
  • Promotional activity
  • Creativity and innovation
  • Loyalty programs
  • Ecommerce
  • Data analytics
  • Omnichannel
  • Customer Experience
  • …/…

During one of these stages in retail, marketing attributes were intimately linked to the product to such an extent that the best marketers were the product specialists themselves.

In every Retail company, Marketing has meant something different. It is a clear reflection of the priorities of each business to see what specific activities are included under the versatile marketing umbrella.

 

Customer Experience. Top priority for Marketers (CMO)

 

Marketing Priorities Eng

 

Human qualities best valued for the Marketing team in a highly technological environment

In an environment of strong technological development, it highlights that the most valued qualities for marketing teams are transversal human skills with a view to greater adaptation and creativity in changing situations.

 

Future skills MArketing Talent eng

Lifelong learning

Getting that within the organization itself, learning is considered as a competitive advantage, will be critical to be able to face the constant changes and appearances of new functions and newly created jobs.

The outsourcing of Marketing activities tends to be reduced and will be used more as a means or tool to implement the new know-how internally with the teams themselves.

 

Lifelong Learning Eng

Unstoppable increase in spending on Digital Marketing

Digital marketing budgets continue to grow to the detriment of traditional communication.

 

Marketing spending per area Eng

 

Functions and Commercial Organisation>>

 

CMO (Chief Marketing Officers) in action

The Marketing Managers (CMO) have historically had a greater volatility and rotation compared to the rest of the Directors in the companies. His role on the board of directors has been undervalued with respect to finance, operations and technology. In these uncertain times their vision and participation is essential.

 

Make sure that within your organization Marketing evolves in line with your priorities.
Manage the present well to prepare for a bright future !

 

 

More info: carlos.dominguez@mheconsumer.com

www.mheconsumer.com

 

New business model. Bring together and accelerate consumer product brands in Amazon FBA environment (Fulfilled by Amazon)
Helix Amazon HO building Arlington Virginia Campus

Strong growth of the Amazon FBA segment

Around Amazon, with an annual sales volume of about 400 billion USD and growth of +38% vs. last year, it is normal that new business models be generated. “He who a good tree is still, good shadow shelters him.”
Amazon’s segment of third-party services achieves its highest growth and profitability. Thousands of small businesses offer their specialized products by leveraging Amazon’s commercial and operational coverage that receives a commission for its services in return.
In many cases, it is successful small entrepreneurs who are behind these companies and who encounter sustained growth and profitability issues from some billing thresholds. Their revenue is often concentrated on a class-leading, privately branded individual product with 90% of the sales through Amazon.

Amazon Sales per segment Percentage

 

Amazon Sales Evolution per segment Data Table

Sales LFL AMAZON

Thrasio. Growth and profitability for a unicorn. Unusual

Thrasio, created in 2018, is a clear example of a company growing at high rates and with positive operating results. Unusual exception in unicorn typology with a valuation of more than USD 1 billion. It is focused on identifying, acquiring, and improving consumer product brands marketed primarily through Amazon FBA.
Thrasio does a detailed job of identifying and selecting candidate brands for their acquisition and subsequent commercial and operational improvement thanks to their super specialization in the Amazon environment.
In its first two years of existence it has acquired 40 brands with incomes between 1-40 million USD in categories as disparate as home, kitchen, leisure. Among these brands are: Angry Orange, Best Gear, Creative Space, Maxim Fitness, Coffee Gator, Trail Buddy Poles…

 

Trailbuddy Thrasioangryorange Thrasio

Massimofitness ThrasioCoffegator Thrasio

 

Apply effective business and operational improvements after acquisitions.

To materialize these acquisitions Thrasio has reviewed 400 candidate brands with an advanced and well-shot Due Diligence process.
Once within their portfolio, their own marketing and operations teams make improvements by applying a proven tool kit in just 35 days in areas such as:

  • Positioning within Amazon, consumer ratings and comments
  • Content and visual communication tailored to the Amazon environment
  • Packaging
  • Product design
  • Range reduction
  • Product Sourcing
  • Expansion to other international markets where Amazon has a significant presence such as the UK, Germany, and Japan

The results are there and Thrasio already has a total annual revenue of more than 500 Million USD doubling every 73 days its turnover. Still far from the size of large consumer product conglomerates such as Procter & Gamble and Unilever that through acquisitions of individual brands and supported by strong traditional advertising investments managed to occupy end caps in large retail chains.

Omnichannel Retail >>

Replica effect. Clones in action

Thrasio currently has 700 employees and its high growth rate generates a wide range of vacancies (+240 positions in February 2021). The type of functions and profiles required are revealing the company’s priorities and contrast with the current structure of many retail chains. We recommend visiting their WEB Thrasio Jobs.
Thrasio’s acceptance among investors has been very good (including Advent as the main player), achieving a total of USD 900 Million in 6 rounds of funding.
The replica effect is fast and there are already clones of this type of business in both the USA and Europe. Among them are: Perch, Heroes, 101 Commerce, Razor, Seller X, Brands United….a whole new generation.

 

Selling on Amazon is “easy”. Growing and doing it profitably is difficult. Looks like Thrasio is in a good position to achieve it. Like any challenge, it is not without difficulties ahead including the heavy dependence of an innovative giant like Amazon.

 

Más info: carlos.dominguez@mheconsumer.com

www.mheconsumer.com

 

Customer Ratings & Reviews

It’s been two decades since Amazon included the stars and customer feedback at the product level. They have had great development and their future is promising.

Marketing Circular

They have a clear impact on conversion

  • More than 80% of consumers read reviews and ratings online before purchasing a product (store/online). Especially for high-cost, risky products. It oscillates on a large average depending on the product category. There is a clear upward trend of its impact on conversion.
  • Still 30% of retail chains do not communicate any kind of assessments (stars) or comments.
  • At the individual product level, conversion greatly increases after the first 5 reviews and comments become visible.
  • The impact of negative valuations is increasing on chains. 2 out of 3 customers are predisposed to express their negative rating against a bad shopping experience.
  • In 3 out of 4 of these negative cases, the main reason originates from operational elements and is generated after the transaction.

 

There are already consolidated best practices for its content, communication and implementation

  • Help keep comments from being too brief. A revision with 400 characters has 2.3 timesmoreimpact than another with only 20 characters.
  • Make it easier forother client s to highlight the usefulness or not of that comment. No opinions have the same value.
  • Some negative comments provide credibility and authenticity to opinions. “Too good to beauthentic.” An average product rating of 4.2 – 4.7 (out of 5) is the range with the highest impact in conversion.
  • Set email reminders to encourage post-purchase product evaluations. 80% of ratings are generated by email. Take advantage of optimal periods by product type, from 7 days (for campaign items) to 21 days (e.g. appliances, giving opportunity for use) from the time of the transaction.

 

LULEMON

 

lULEMON2

 

 

Q & A.  Section and User Generated Content

  • Feedback structured and fostered by the chain itself. Segmented based on demographic profile and usage. With an emphasis on those attributes that are key to conversion according to each product category.
  • The latest reviews are always best rated by other consumers and further facilitate an improvement in the SEO positioning of the product.
  • Verified opinions always provide greater credibility than anonymous opinions.
  • Syndicated actions with External Marks and other Partners that make it easier to obtain ratings in less time.
  • The use of content generated by the users themselves (UGC). Use and use of feedback and visuals in the various channels of customer interaction including social networks and conventional media.
  • Accompanying assessments with visuals or videos increases their impact by 4.
  • The customer wants a response to their feedback. Depending on the nature of the incident, quickly within 24-48 hours.
  • Presentation of evaluations not only on individual product pages. Optimize your impact with your selective presence also on home page and product category pages.
  • A Q&A section (detailed questions and answers) on the product page is clearly appreciated by customers and positively impacts conversion

 

Customer Experience >>

 

 

IKEA1

 

John Lewis

 

In the future, they will increasingly have an impact on operational improvements, product and customer experience.

Advanced and personalized analysis of all customer-produced content allows you to:

 

H&M Fitting & Size

 

  • Decentralization of customer service. Local power with technological support from software tools like  Critizr.
  • Optimal tool to motivate and incentivize the internal teams of the chains. Not always with negative content.
  • Integration within the process to test new products and services.
  • Q&A system that provides interactive conversations  between  the customers  themselves.
  • Close linking for improved client experience  (CX).
  • Greater focus on reviews on fitting and clothing sizes, where there  is a large rotation of models with very short lifespans.
  • Use and communication to engage customers with those improvements/changes already made thanks to their comments.
  • Launch of programs aimed at highlighting the opinions of those customers whose opinion is most relevant to other consumers. Example Amazon VINE program.

 

Decathlon

Your customers’ feedback provides credibility and trust. The resources used in this area will have a high return.

  • It is not enough to have it… they need to be optimized by incorporating the already proven best practices that are appropriate for each sector. Its coste is relatively low and have clear operational implications.
  • Your development will go hand in hand with improving the customer experience (CX).
  • This positive spiral of confidence materializes into greater conversion.
  • The planned reduction in conventional marketing budgets entails the opportunity for a greater emphasis on digital and social marketing that will facilitate the use of user-generated content (UGC).

 

Circular and prescriptive marketing: do we take the most of it?

 

Wayfair

 

 

Amazon Q&A

 

Amazon Q&A2

 

Más info: carlos.dominguez@mheconsumer.com

www.mheconsumer.com

 

Sources: American Marketing Association. CMO Survey, BazaarVoice, Brightpearl, Critizr, NorthWestern University, Olapic Monotype, Power Review, Salesforce Research, Trustpilot

 

ROBLOX. Creativity that hooks

Listening to the customer is no longer enough


roblox target customer

Innovative content platform that makes it easy to develop and enjoy video games to more than 160 million active users for almost 3 hours a day. More than half are niñ@s under the age of 12.
Coding is no longer a barrier. 1 million users develop their video games, earning a total payment of $250 million. This remuneration is quantified based on the acceptance of each game.

 

ROBLOX Users Evolutions

Roblox Time spent minutes

Age segments ROBLOX users

It effectively disperses that creative power by integrating its own users into the business model. It is the natural quarry of the developers of the apps of the future

ROBLOX developers remuneration

Quadrilling your sales over the past 3 years, up to $1 billion by 2020, is never easy. It still doesn’t give a profit. ROBLOX imminent IPO will be a good opportunity to validate the expectations your investors have had in the business.

Retail Strategy >>

The competition is strong, Epic Games, Minecraft, Unity… ROBLOX has achieved some important differentiating elements at the base of its model:

  • Facilitador del “NO CODIGO” poniendo a mano de cualquiera la elaboración de nuevos videojuegos
  • Facilitator of the “NO CODE” by putting at the hand of anyone the elaboration of new video games
  • Freemium with subscriptions of $5 to $20/month
  • Market place specific among its users
  • Making “Content” the true king of business
  • With a focus very focus on a particular age segment
  • Lightweight structure. Total of 800 employees across the company

 

ROBLOX Business Model

 

 

Retail is not immune to this phenomenon. Implications

In a sector such as Retail, where there are still chains with difficulties in proactively listening to their customers, opportunities will arise to implement practices related to those of ROBLOX where customers themselves “replace” their centralized product teams feeling part of a related social network, creating, enjoying and even being remunerated for it.

 

Fasten your seat belts!

 

Más info: carlos.dominguez@mheconsumer.com

www.mheconsumer.com

 

 

Sources: Roblox Accounts, Material IPO Roblox Nov 2020, Rex WoodburyScott Galloway

 

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