Is retail embracing social media?

As retail e-commerce grows and retailers create a more unified online and offline experience, more and more online “window shoppers” are converting to purchasers. The retail landscape is changing rapidly and retailers that are embracing digital media are coming out on top.

A few retail brands have surfaced in marketing publications this week in the context of the intersection between digital media and retail – among them H&M, American Apparel and Patagonia. These brands have their bases covered, from Twitter to Mobile Apps, and they’re forecasting higher marketing spend across social mediums. While I strongly believe that social is highly relevant and a powerful marketing tool for retailers, it is extremely important for them to use these mediums properly. Over the past 2 years, Nordstrom, JC Penney, Banana Republic and Gap have all shut down their Facebook storefronts as they have proved to be a quick failure. In order to generate incremental sales, such experiences must complement existing purchase channels since:  1. Users are being intercepted while socializing with friends – selling to them in this environment is very challenging; 2. All Facebook storefronts to-date have been just another destination to purchase a limited collection of items that are already available on their websites and therefore, they are less likely to convert users. As retailers embrace social, their success will be closely tied to how well they cater to prospective buyers’ mindset and interests.