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MULTI BRANDED OUTLET RETAIL
INDUSTRY IN US
HOW MULTI BRANDED OUTLET RETAILERS
CAN LEVERAGE SOCIAL MEDIA TO GROW
ITS BUSINESS
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AGENDA
B
INDUSTRY OVERVIEW1.
1
2 InRev Systems 2011
B
WHY SOCIAL MEDIA1.
2
B
PROFILE OF MAJOR PLAYERS1.
3
B
SOCIAL MEDIA INDEX1.
4
RESEARCH FINDINGS1.
5
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INDUSTRY OVERVIEW
17.97%
2.39%2.52%
7.33%
13.32%
5.57%10.85%
4.89%1.99%
13.51%
2.66%
6.74%
10.26%
Motor Vehicle & Parts
DealersFurniture & Hole Furnishings
Electronics & Appliances
StoreBuilding Materials & Garden
EquipmentsFood & Beverages Stores
Health & Personal Care
StoresGasoline Stations
Clothing & Accessories
Sporting Goods, Music &
Book StoresGeneral Merchandise Store
Miscellaneous Store
RetailersNon Store Retailers
Food Services & Drinking
Places
Retail Segment Share in US 2008Market Overview Retail sales in the U.S. (total
retail sales include the
categories of
gasoline, automobiles, and food
service, as well as merchandise)
totalled an estimated $4413
billion in 2009
Source: Plunkett Research Ltd
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4413
4281
4200
4250
4300
4350
4400
4450
2008 2009
Total Retail Sales(in $ billion)
Clothing & Accessories
in 2008 215.8 US$ bn
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WHY SOCIAL MEDIA (1/4)
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Brand loyalty will become vital as
consumers move towards premium
products, and exclusive outlets for such
brands will discourage them from visiting
department stores instead of an exclusive
outlet, where they can see more product
variety under the same brand
Threat from Specialist
(Exclusive) Retailers is
increasing as they
increase their presence
throughout the country
Large no of
Category
SPECIALIST
RETAILER
Low Brand Awareness High Brand Awareness
Single
Category
MBO
RETAILER
Multi Branded Outlet (MBO) Retailer
needs to move to high brand
awareness region by ENGAGING
WITH CUSTOMERS MORE THAN
EVER
The bigger your brand's share of the
online conversation, the bigger its
share of the market is likely to be
SOCIAL MEDIA
NEED
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WHY SOCIAL MEDIA (2/4)
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ComplexBuying
Behavior
VarietySeekingBehavior
Dissonance-Reducing
BuyingBehavior
HabitualBuying
Behavior
A great strength of social media is that it
encourages word-of-mouth marketing of yourbrand. In an environment in which potential
customers trust the recommendations of
friends far more than those from the
media, good word-of-mouth buzz about your
brand can be invaluable
MBORetailers
NEED
Dissonance-reducing buying behaviour occurs when the
consumer is highly involved but sees little difference
between brands. After making a purchase under such
circumstances, a consumer is likely to experience the
dissonance that comes from noticing that other brands
would have been just as good, if not slightly. Multi
Branded Outlet Retailers belong to this category
As such Word of Mouth is very important for MBO
Retailers
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WHY SOCIAL MEDIA (3/4)
CREATE fan pages to post contact information, recent updates, and most
importantly allow fans and the Company a means of communication on the
main page and through the implementation of discussions on the fan page
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DEVELOP catchy and clever ways to express the most recent companyinformation. Consumers can share recent experiences with the company, as
well as recommend potential product ideas and innovations
UPLOAD and share videos and educate your customers with awareness
and videos showcasing what your Company truly is and what your brand
image is
CONNECT the staffs of your Company and RECRUIT the best talents in the
industry in this most professional social networking site
POWER
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WHY SOCIAL MEDIA (4/4)
7 InRev Systems 2011
Reassurance
Expensive Brand
Rely on Store Image
Go for Brand Image
Be Brand Loyal
Seek Information
Perceived Risk of Customers
If the retailer can identify the
characteristics of the targetconsumer, recognize the type of risk
associated with the product category
and the way by which the consumers
handle the perceived
risk, appropriate positioning
strategies can be developed forspecific brandsDifferent segments of consumers for
different categories of products
undergo different types of decision
processes
There is no shortage ofinformation. Social Networking
Sites such as Facebook provide
access to site demographic and
behavioural information
POWER
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PROFILE OF MAJOR PLAYERS (1/4)
Social Media Ranking :
Calculated based on the interactivity level of the HealthCare
Centers in Facebook, Twitter, LinkedIn, YouTube and Blogs
JC Penney Facebook Page
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Patio Home Store Women Men
Kids Baby JCP Teen Shoes
Handbags & Accessories Jewelry & Watches Clearance
JCP has 1,749,856 fan
base in Facebook and
it use the social
media for engaging
continuously with
customers; providingthe facility to shop
online through
Facebook page too
0 2 4
3.975
3.85
4.2
2.9
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PROFILE OF MAJOR PLAYERS (2/4)
Social Media Ranking
Nordstrom Blog
Nordstrom tries toconnect to its
customers by
regularly updating
their blogs on
various topics such
as
Beauty, Style, Fashi
on, Food, Hobbies,
etc.
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Designer Collections At Home & Gifts Women Men
Juniors Baby & Kids Beauty & Fragrance Shoes
Handbags & Accessories Weddings Sale
0 2 4
4.3
4.9
3.8
4.1
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PROFILE OF MAJOR PLAYERS (3/4)
Social Media Ranking
Macys YouTube
Channel
Macys use YouTubeto promote their
own reality show
Macys Million
Dollar Makeover
which is a target to
attract women to
buy and shop at
Macys
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For the Home Bed & Bath Women Men
Juniors Kids Beauty & Fragrance Shoes
Handbags & Accessories Jewelry & Watches Sale
0 2 4
4.45
4.25
3
5
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PROFILE OF MAJOR PLAYERS (4/4)
Social Media Ranking
Sears Twitter Page
Sears has 78891
followers in Twitter
and it gas been using
twitter for
announcing itspromotional deals
and offers
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Appliances Automotive &
Tires
Baby Beauty Bed, Bath &
Home
Books &
Magazines
Clothing Electronics &
Computers
Fitness &
Sports
Home
Services
Jewelry &
Watches
Lawn &
Garden
Music, Movies &
GamesOffice
Products
Outdoor
Living
Replacement
Parts
Shoes Tools Toys & Games Clearance
0 2 4
3.725
4.05
4.2
4.5
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SOCIAL MEDIA INDEX (1/2)
Retailers No of Channels Social Grades
NORDSTROM 5 4.16
MACYS 4 3.82
SEARS 4 3.65
JC PENNEY 5 3.45
SOCIAL MEDIA GRADES is calculated based on the interactivity level ofthe mixed retailers in Facebook, Twitter, LinkedIn, YouTube and Blogs.
It shows how active the mixed retailers are in the social media space
No of Channels represents the number of social networking sites a
MBO retailer is present in
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SOCIAL MEDIA INDEX (2/2)
Social Engagement Graph: Interaction Plot of Retailers in the Social Media Space
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0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
0 1 2 3 4 5
Interacti
vity
Level
No of Channels
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RESEARCH FINDINGS (1/7)
BRAND AWARENESS: Online conversations are happening about your brand right now. The Chart
shows the number of conversations across web
Nordstrom is the most talk about brand in the social media with
3650 conversations within a period of 10 days. Sears should be
concerned about the recent spike in its negative sentiment
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RESEARCH FINDINGS (2/7)
BRAND SENTIMENT: Positive conversations inevitably mean positive sales results, and even
the discovery of negative sentiment presents an opportunity for a brand advocate to step in andtry to change the tone of the conversation
Macys is the most hated brand among
the four MBO retailers while Nordstrom
and JC Penney does good in this regard
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JC Penney Nordstrom Macys Sears
Positive Sentiment % 64.2% 68.1% 55.9% 54.8%
Negative Sentiment % 6.6% 8% 15.9% 11.7%
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RESEARCH FINDINGS (3/7)
COMPARE the demographics age group of your brand talkers with competitors
Macys is patronize highly by teens while Sears by middle age people;
both JC Penney and Nordstrom are famous among younger people
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RESEARCH FINDINGS (4/7)
COMPARE the demographics location of your brand talkers with competitors
JC Penney should be concerned about its less buzz in the US. The talk about JC
Penney is almost negligible while Sears & Nordstrom are doing quite strong
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RESEARCH FINDINGS (5/7)
COMPARE the demographics location of your brand talkers with competitors
JC Penney is the only MBO Retailer which is more stronger in Facebook
than in Twitter. Macys has the highest absolute presence in Twitter
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RESEARCH FINDINGS (6/7)
INDUSTRY INTELLIGENCE
Tracking the keyword Sports Apparel in Simplify360
There are 5821 mention of the
keyword Sports Apparel in the
social media within a period of 2
weeks alone
Twitter Demographics shows 26-35 ages
population most active in the conversation
followed by 36-45 age group
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Majority of talkers about Sports Apparel
are from Chicago region
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RESEARCH FINDINGS (7/7)
INDUSTRY INTELLIGENCE
Tracking the keyword Winter Apparel in Simplify360
There are 3504 mention of the keyword
Winter Apparel in the social media
within a period of 2 weeks alone
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Understand Consumer Insights and
Industry trends which will help you to
greatly improve your
marketing, research, communications
and, ultimately sales
Conversation like the one above shows
the lack of supply of winter apparels and
Retailers could stock more inventories
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VP - Sales,
InRev Systems
21 InRev Systems 2011
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