Tag Archives: Apparel

Using the Four Pillars of Optimization to Recapture Online Market Share

The following article appeared in Chief Marketer on February 11, 2011.

In many market sectors, the traditional retailer is under siege. Take the apparel sector. Discounters such as Overstock.com, flash-sale sites like Gilt Groupe and Rue La La, fast-fashion players including Century 21, massive marketplaces such as Amazon, and fashion blogs like The Style Rookie have created a treacherous landscape for apparel retailers, which can no longer expect offline-branding or retail-footprint alone to adequately secure their online fortunes.

An apparel retailer, or any other type of merchant, that has its marketing and branding efforts siloed and is not evaluating its integrated business is at risk of losing its place in the online discussion.   

Case in Point: “Men’s Fashion”

Before you dismiss this as alarmist, let’s look at a simple example: men’s fashion. This is a good benchmark, as most menswear customers look primarily to retailers to inform their fashion choices. But of all the listings on the first page of Google for “men’s fashion,” only two are retailers.

The threat here is not that content sites such as GQ or About.com are taking control of the men’s fashion discussion, but rather that a straight affiliate play like www.mens-fashion-tips.com could capture more natural-search attention than Armani or Ralph Lauren or even Lands’ End.

These results, of course, are an algorithmic byproduct. Search engines aren’t editorial, so they typically do not favor one site over another for content reasons. They focus on how well the site matches their interpretation of quality and relevance for a particular search query. So why did only two retailers show up on page 1 for this query? Because the apparel merchants let it happen. They have ceded their voice in the search discussion for “men’s fashion.” 

As we dive deeper and narrower with search terms such as “men’s pants,” we see a much more retailer-focused environment, with Kohl’s, Macy’s, Banana Republic, and Gap among the diverse merchants appearing on the first page. And while the term “men’s pants” is still a very broad query, it does express significant intent to deeply engage with pertinent content.  And, at this level of query, the retailer rules the day. Why?

For the top-level query, such as “men’s fashion,” the eventual desired destination of the searcher is unclear. It is hard to tell if that searcher wants to learn more about men’s fashion, see videos about men’s fashion, or shop for men’s fashion. Over times, however, search engines have learned that the average search for “men’s pants” yields a click through to a retailer.

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PM Digital Spring Apparel Study Released

Our lastest Rewind report on paid search performance underscores dramatic improvements for apparel retailers in Spring 2010. 

PM Digital’s latest Rewind report has been released with a look at paid search performance for apparel retailers during the 2010 Spring fashion season.  And the news was very good.  Consumers shopping online for apparel increased their total paid search demand by an impressive 33 percent over the same months in 2009.  Even better, apparel marketers achieved this swell in demand from February through April with a modest increase of 2 percent in year-over-year spend, revealing that search ad dollars went further this year than they did at the same time last year, with CPCs falling by -1 percent.   

Click here for a full copy of the PM Digital 2010 Spring Apparel Rewind Study.

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The Outlook for 2010

The facts, the stats, and the true in-the-trenches business experiences from 2009 now tell us a lot about what to expect for 2010.  Below is a quick review of some of the key things online marketers should look for in the coming year.

A Slow Recovery

There will be continued slow recovery in US consumer spending, especially for large purchases due to a lack of discretionary cash (not income, per se), increased savings rates and a general adjustment to this new “now”.  2008 changed buying behavior to a “no”-first shopping mindset and 2009 cemented a value-only, thrifty approach.  2010 won’t change this.  Unemployment, under-employment and slow-growth for the private sector are the engines that are choking back substantive improvements in consumer confidence.  While there are certain job sectors re-igniting hiring, most industries will only begin to replace the attrition they forced during the lean 2008 and 2009.

Pent-Up Demand from the Jet-Set

For the super-wealthy demographic, expect that luxury items will be back in vogue as pent-up demand for jewelry, cars, homes, boats, fashion, at today’s reduced costs, increases.  Unfortunately, this is unlikely to offset the dramatic fall-off seen from the much larger affluent group that accounted for much of the demand growth during the run-up to the recession.

Personal Fulfillment for the Rest of Us

The definition of discretionary has changed relative to consumer purchases and buying behavior.  Where, pre-recession, this meant items people didn’t need but wanted, the recession and its epic duration have people focused on their hobbies and passions to relieve stress and to add back pleasure in their lives.  No longer considered discretionary, these hobbies and their related items and services have become part of the indispensable.  I anticipate revenues from home improvement, home-based interests like gardening and exercise, and passion hobbies like crafts, music, fishing, etc. stay in vogue and continue to capture wallet share.

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