News of the Dutch fashion brand, Mexx, filing for bankruptcy did not come as a surprise to us.
Earlier this year, while working on an international omni-channel strategy for a Canadian competitor of Mexx, we attempted to audit Mexx’s online strategy. At the time, we found that they had recently put their online business to bed.
According to the company, they decided to close the website to build a better one that would provide its customers with a superior shopping experience—a wise move in a digitally driven world.
However, now that the company is bankrupt, it appears that not only their online business but also the brand has died, or is about to die in its sleep!
On December 5, 2014, the day after Mexx filed for bankruptcy, we discovered the company’s website is no longer in a state of slumber, but it has not fully awaken. For instance, a banner that advertised a door crasher special for girls’ apparel was still on the homepage despite the fact that the offer had ended on December 1, 2014, which was four days ago!
Online Sales Continue to Rise
An interesting shift is occurring in the retail world. For some retailers, online sales could potentially account for the majority of total sales in the near future. A new research report from UBS highlighted four companies that are expected to see a large portion of sales coming from e-commerce in the fourth quarter of 2014. These retailers include:
|Retailer||Estimated Online Sales (as a % of Total Sales)|
|American Eagle Outfitters||24%|
|Abercrombie & Fitch||29%|
It was not long ago when many had said apparel purchases would not be well-received online!
“Go Omni-channel or Go Home”
While e-commerce is clearly the way to go, successful retailers are not stopping at a spectacular website. They are embracing what it means to be an omni-channel retailer. An omni-channel retailer integrates all of their channels to engage customers with a consistent, seamless and superior experience and message, and/or to gain efficiencies, such as inventory efficiency.
J.C. Williams Group’s quarterly Canadian E-tail Report surveys Canadian consumers regarding their online purchasing habits. The message has consistently been “Go Omni-channel or Go Home!”
Retailers who have invested in an omni-channel strategy have seen both their online sales and enterprise value increase.
If you don’t have an omni-channel strategy, in its place is a gaping hole in your business. Your customers are probably going elsewhere while you are sleeping. It is time to wake up before your brand falls into an eternal omni-channel slumber.
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