In the 21 years since the first online shopping transaction, online retail has evolved significantly.
Popularity with consumers has naturally increased as people have become more familiar with the relevant technology. In order to meet this increasing demand, brands and retailers have also refined and enhanced their products and services, focusing on design and usability that can be adapted across multiple devices.
With online shopping forecast to be responsible for 18% of all grocery transactions by 2019, the challenge for marketers is to start designing brands and products that stand out on the four inch screen of a mobile device, instead of the 20,000 square feet of supermarket space that has until now been the norm.
Shifting from store to screen
Shopping online is no longer the inferior alternative to going into a store. Many of us prefer to click our way to a purchase, and with next day delivery, click-and-collect and online exclusive deals all offered by major retailers, our penchant for staying at home to shop is being well and truly indulged by our favourite brands and stores.
The proof is out there. The latest figures from the British Retail Consortium (BRC) show that in February 2016, 20% of UK non-food sales were made online. BRC figures also tell a clear story about Christmas 2015: while retail sales grew 1% in December compared with a year earlier, online sales jumped 15.1%.
Online retail now has an unprecedented appeal for consumers and is offering brands a credible and effective alternative to the physical shopping environment. Marketers must develop brands and products that can withstand, and thrive, in the online environment, a process that starts not with the marketing of a product but way back at the design stages.
Designing for the small screen
Grabbing attention quickly has always been a priority for retail brands, but online retail brings its own challenges in terms of how to make products eyecatching.
Not granted the luxury of the few seconds it takes to walk past a product on a shelf, brands must now create products that pop on screen, which clearly affects everything from colours used, to wording, font and positioning. After all, unlike physical browsing, online users can only see one page of results at a time, and so don’t have the ‘whole shelf’ in view.
The way we shop online is vastly different. Whereas in-store, we are more likely to make impulse buys based on something we see as we physically walk past it, we are often more cautious online and tend to make more considered decisions. Research shows that online, consumers will consult at least two sources before deciding to buy, and the higher the price tag, the more sources people will consult.
Online retail spaces offer consumers speed and convenience, but it’s vital to remember that the wider online landscape also means that they are only a click away from competitors, reviews and comparison sites. As such, they can be influenced to change their minds, switch retailer or abandon purchase in a second, far more quickly than they can in a physical shopping environment.
So it’s more vital than ever for brands to ensure their name, products and messages are communicated clearly and effectively on the small screen. Not only should a product look appealing, but the wording, product description and any positive reviews should also be prominently featured, anything that will increase the likelihood of a purchase.
Steps to achieving stand-out online
Online, some factors are firmly in the control of the retailer, such as how products are displayed and promoted. This presents a dilemma for brand designers wanting to achieve maximum stand out online. But there are some things that can be done to boost online sales performance:
Simplicity is key: Don’t over-complicate things and instead go for designs which make a rapid impression. Consider colours as well: in-store, black means premium, but online, black offers instant standout against the white background of the screen.
Be clever: In-store, getting new lines or products noticed can be tricky. Online, where consumer decisions can be more easily influenced, try offering discounted bundles where new products are offered alongside old favourites, to tempt people to try something different.
Up the experience: Always remember that the product may have been purchased online, but the customer will still end up receiving and unpacking it physically. Adding extra touches to packaging will result in an enhanced interaction with the consumer and will potentially strengthen their engagement with the brand.
Looking to the future
Online retail is clearly set to play an increasingly important role in how we shop and interact with brands. However, it’s also important to remember that in-store and other channels will also continue to affect our shopping habits.
We have seen the in-store environment shift from being simply functional to being a stage for more experiential activity, where brands can have physical interactions with their customers. As such, the online environment has stepped up to provide a more functional role, offering consumers speed, choice and convenience.
Marketers need to ensure that they have a branding strategy in place that caters for all environments. It’s no longer enough to design and develop a product that stands out on the shelf, and yet it would be short-sighted to cater only for the online space. This is why the overall strategy is so important: combining brand identity, package design and marketing activity to deliver powerful, recognisable messages that resonate with target audiences across channels.
By Nikki Austen, Head of Insight and Strategy, Webb de Vlam
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