In our previous post, we looked at how brands can better understand and grow their online audiences. Now, we look at how brands, such as Mulberry, can grow relationships with retailers by identifying new opportunities through data collection.
The relationship between retailers and brands has rapidly evolved in recent years, largely thanks to the Internet and the growth of online shopping. Searches for retailer sites, such as Net-A-Porter and Farfetch, have grown by an incredible 45% over the past 3 years, compared to 12% for luxury brand sites. Yet, working with retailers has its pros and cons for brands.
Whilst these relationships can bring added sales and exposure to different audiences, many face the challenge of not knowing how their brand performs and how they are perceived on retailer sites. This is particularly problematic for brands who are sales-reliant on retailers.
A way to overcome this blind spot is through greater data collection, such as page views and search terms. The below example shows branded searches within Selfridges and Net-A-Porter’s websites, where only 3 out of the top 10 brands are present on both lists.
In Mulberry’s case, the brand ranks 3rd on Selfridges compared to 7th on Net-A-Porter. Searches are also more product-specific (e.g. “Mulberry bag”, “Mulberry purse”), than brand-specific on Net-A-Porter (e.g. “Mulberry”). Mulberry could then question whether investing on Net-A-Porter is worthwhile or not.
However, a different story evolves if we look at the audiences behind retailer and brand. Net-A-Porter draws the youngest audience and highest share of young educated and urban people – a key market for luxury millennials. Whereas, Mulberry has a higher skew of older people from key affluent groups*, including business professionals, self-employed and high-income families.
As you can see from the data, there looks to be a mutually beneficial opportunity for Mulberry and Net-A-Porter to collaborate further. By comparing audiences across retailers to see where the gaps and opportunities are, both brand and retailer are able to diversify their audience.
To learn more about the key ways in which brands can grow and engage their online audiences, download the full report here: Luxury Fashion Report 2017
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