OCTOBER 17, 2000
SPECIAL REPORT--XMAS E-SHOPPING
E-tailers Hit the Relaunch Key | Revamped sites are hitting the Web just in time to generate buzz in the critical preholiday season
| October is here, and for e-tailers that means it's relaunch season. Seems like every dot-com with a Christmas dream is trotting out new services, new navigation capabilities, better graphics, and wider selection. They hope to generate buzz in October that will turn to sales in November -- and happy virtual holidays in December. "This is a make-or-break Christmas for e-tailers," says Kenny Kurtzman, CEO of online luxury-seller Ashford.com.
Consumers are starting to think about holiday shopping, and online merchants need to make their case while the airwaves are still relatively quiet. By November, traditional stores will be in full swing with network-TV ads and other engaging marketing, which could drown out e-merchants. "This is an important time of year for this sector to get attention," says Derek Leckow, senior investment analyst with Barrington Research.
Among the relaunches to watch:
Target.com. Last year, the discount chain's Internet presence was almost nil: just a few thousand items for sale. This year, as of Oct. 14, Target.com has a broad new selection -- 15,000 items -- and a spiffed-up image to try to set itself apart online. "We're showing a playful attitude," says Cathy David, general manager for merchandising for Target Direct.
That's apparent in the site's product selection -- hardly just underwear and socks. The virtual shelves are bulging with everything from DVDs to home-spa fixings. But rather than offer the full selection of the retail chain, David says, Target.com focuses on gifts, home furnishings and housewares, and apparel.
The updated site is more assertive in suggesting additional items to the consumer, while adhering to the playful theme. One example: Order bed linens and you might get a suggestion for a small bedside fountain. "We want to show you unique product combinations, things you might not think of," David says. The idea is to mimic the experience of standing, in this case, in the bedding aisle of a Target store.
VictoriasSecret.com. This holiday season, the folks at Victoria's Secret are working harder to do online what has always been the company's major marketing strategy: showing off its models. The e-tailer's relaunched site, live since early October, has a cleaner, softer look, giving it a more upscale feel -- and mirroring the décor upgrade in Victoria's Secret stores. Some frames have been eliminated, widening the pages and giving the visitor more photographs to ogle. "The story we want to project is dream gifts," says Ken Weil, vice-president for new media at Victoria's Secret.
But looks aren't all this relaunch has to offer. Navigation has been updated so visitors can search by category or by line, such as Body By Victoria lingerie. Checkout is speedier. And like Target, VictoriasSecret.com is emphasizing cross-selling this year. Customers who purchase intimate apparel may get suggestions for beauty products or fragrance items.
Ashford.com. This luxury e-tailer doesn't have the benefit of brick-and-mortar stores or paper catalogs to help drum up customers. So it's counting on a month-long program of innovations to convince shoppers to check out its site. Advanced search programs allow customers to browse for specific features. Want a two-tone stainless-steel watch with a white face, perpetual calendar, diamond bezel, and quartz movement? The new search can handle the request. The diamond department -- always a hot spot during the holiday season -- has been expanded. The site's design also now sports a more luxurious look. And CEO Kenny Kurtzman has promised more changes this month, especially in customer service.
One major goal of these redesigned sites is to spread word-of-mouth recommendations. While actual purchases may be weeks, even months, away, the retailers are trying to build the notion that they're the "in" place for e-shopping. "It's like any other advertising tactic," Leckow says. "The aim is to get ingrained in the customers' minds."
But e-tailers should be wary of letting that goal lead them astray, says Lauren Freedman, president of E-tailing Group, a Chicago-based consulting firm. Too often sites focus on creating features that generate publicity but don't necessarily increase sales. "A lot of the new stuff gets a lot more PR than it should," she says. "Something can be very innovative and still not add real value for the shopper."
For example, over the past year, a number of e-tailers garnered attention for their sites by adding live chat. "How much good does it really do? Does it really result in revenues?" Freedman asks. Many companies are betting it will.
And some of the biggest relaunches are yet to come. For one, Wal-Mart stunned many earlier this month when it abruptly closed its site, promising to return soon "with an easier, more pleasant shopping experience this holiday season." In doing so, the company may have transformed a misstep into a strong marketing advantage. "Everyone will want to see what they've done," says Howard Davidowitz, a New York-based retailing consultant. And that's exactly the goal of any relaunch.
By Ellen Neuborne in New York
Edited by Thane Peterson
|
Copyright 2000, by The McGraw-Hill Companies Inc. All rights reserved.
Printer-Friendly Version
