Specialty Retail 2012: Mobile and Amazon are reshaping retail. M-commerce is the fastest growing channel in the history of commerce
Digital IQ Index: Specialty Retail 2012: E-commerce is now M-commerce
L2, a think tank for digital innovation, released its third annual Digital IQ Index: Specialty Retail. The report benchmarks the digital competence of 76 global retail brands, looking at over 675 data points across four dimensions: Site, Digital Marketing, Social Media and Mobile.
The Digital IQ of e-tailers fell below the average for the whole category. The top two spots in the 2012 Digital IQ Index: Specialty Retail were decisively captured by Macy’s and Nordstrom, respectively.
Amazon.com, boasting a peerless e-commerce experience and a 37 percent share of U.S. M-commerce, is THE force reshaping retail. As Amazon is reinvesting cheap capital in a supply chain to offer same day delivery, eroding one of the few remaining advantages of terrestrial retail.
Top Ten Digital IQ’s:
3. Victoria’s Secret
5. American Eagle Outfitters
8. Crate & Barrel
10. Saks Fifth Avenue.
In Q2 2012, online retail spending reached $44.3 billion, up 17 percent YoY. E-commerce is expected to grow at a 13.3 percent CAGR, versus flat growth for bricks and mortar.
“Mobile and Amazon are reshaping retail. M-commerce is the fastest growing channel in the history of commerce. A retailer’s ability to prosper will be inextricably linked to their agility on the platform. In addition, Amazon has turned its sights on specialty retailers, offering high-end brands and an experience that closes the gap with bricks and mortar. We believe the ranking offers insight into the firms that will over and under perform relative to peers,” commented Scott Galloway, Professor of Marketing, NYU Stern, and Founder, L2.
“The rise of the smart phone and mobility compound the challenges for retailers both in and out of stores. Digital experiences today need to do more than offer consumers the ability to transact. The best ones provide an experience — one that connects the consumer’s digital and physical worlds — and offers relevance to their lifestyle,” said Bill Kanarick, CMO, SapientNitro, a L2 partner.