No Turn On Red

Last year, Target announced that they would be ending their relationship with Amazon and bringing their e-commerce operations in-house. I only assume that many e-commerce platforms and integration partners were courting the large retailer, touting their services. Yesterday, the retailer announced the full list of vendors that will be involved in the nearly 2 year project:

• Sapient Corp., based in Boston, as the lead partner and integrator,
• International Business Machines Corp., based in Armon, NY, which will provide the multichannel e-commerce platform,
• Oracle, based in Redwood City, Calif., which will provide the database platform,
• Endeca Technologies Inc., based in Cambridge, Mass., which will provide search and navigation functionality,
• Autonomy Corp., based in San Francisco, which will provide content and digital asset-management functionality,
• Sterling Commerce Inc., Dublin, Ohio, which will provide global inventory visibility and cross-channel order-management functionality, and
• Huge Inc.,based in Brooklyn, NY, will provide visual and interaction design.

This is going to be an interesting project to watch and I can’t wait to see what Target and their vendors come up with. A highly visible, successful brand that is already known for a pleasant in-store shopping experience will have a very high bar to meet as re-platform their e-commerce offering.

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Augmented reality is one of the biggest buzzwords right now and people are looking for ways to bring this technology to every industry. As much as I love e-commerce, there is still a (purposeful) disconnect from the brick and mortar shopping experience, especially with apparel. I feel that when technology can bridge this gap, e-commerce sales can only grow as shoppers continue to turn online. Augmented reality is one of the technologies that, when used effectively, could do a lot to bridge this disconnect.

One of the coolest demos that I saw at this year’s shop.org was the augmented reality dressing room tool that was developed by Zugara in partnership with Richrelevance. This tool allows shoppers to “virtually” try on clothes, put together outfits, and share these items with their friends on Facebook. This is all made possible through the use of Flash, a web cam, and hand gestures from the shopper. Really awesome stuff.

This week, Zugara and Richrelevance have announced that this technology has been brought to online boutique Tobi.com. Through the application, called Fashionista, shoppers can now shop the catalog using their web cam and interact with their friends. It’s really great to see this technology go live.

How are shoppers going to react? Tough to say. This is still emerging technology but with a very long life cycle ahead of it. Augmented reality may just be entering the e-commerce arena, but expect many more of these applications in the future. For now, the Fashionista application is a great first step in implementing augmented reality in e-commerce. I can’t wait to see this app grow.

I’ve embedded a video, below, showing the Zugara demo at the Richrelevance booth from shop.org. Above is a screenshot showing the application being used on Tobi.com.

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Adobe, makers of Photoshop, Flash, and other software that doesn’t get paid for as often as it should, has announced that they are purchasing website analytics and optimization company Omniture in a deal worth 1.8 billion dollars.

This is a huge deal for the e-commerce industry and not just for what it means for Adobe today. This is a huge deal for the type of company Adobe can now position itself as and for where they could potentially be in 18 months.

First, realize that Omniture is not just an analytics company. Sure, that may be what they are known for – but they have many components of their software suite that work seamlessly with each other. Omniture also does merchandising, recommendations, website testing, and site survey – all tasks that are analytic driven. Many of these components are used by e-commerce retailers and I know several retailers that love their packages.

Second, realize that Adobe has already stepped into the e-commerce world when they acquired Scene7 in 2007. Scene7 is a fantastic solution for managing images for retailers. (I’m not rehashing some Adobe marketing, I’m speaking as a developer who’s used Scene7 – I really like this software). Scene7 is now used by many, many retailers around the world to dynamically serve their images.

Short term I’d expect some sort of analytics package being applied to Scene7. I’m not sure what type of analytics you’d see, but I’m sure there are metrics that can be applied. If there are metrics available, there is a marketing person who will want to analyze them.

Longer term, I think it would be killer if there was an e-commerce platform that offered seamless integration with Omniture analytics and Scene7 image hosting. Of course Adobe isn’t an e-commerce platform, but not for long. I don’t think we will see 2010 come and go without a major, major acquisition by Adobe of an e-commerce platform. I think it would make perfect sense for Adobe to grow in this world. The industry has so much growth potential and Adobe could be perfectly situated to take advantage of this. It’s almost a no brainer to me.

I have my own ideas in my head of who I think Adobe could acquire, but I will keep them to myself right now. Let’s just say, that any e-commerce platform offering an ondemand SAAS solution would be the type of company I would think Adobe would gobble up.

The next 18 months are going to be very interesting in the e-commerce world.

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The Retail Email blog has a roundup of this morning’s e-commerce email blasts with attention being paid to today’s email from Saks. The e-mail, entited “8 Great Reasons to Shop Saks.com“, calls attention to some of the new and improved functionality that the retailer has added to their site. Great way to call attention to improvements on the site that may have been implemented over a period of time or that the users may not have realized are there. I think it gets them to explore new areas of the store that they may not have been aware of before.

StorefrontBacktalk has some of the early numbers from this year’s National Retail Federation annual show. Registration and exhibitors are down from last year, but international vendors who will be at the show.

In more NRF news, PredictiveRetailer has a recap of Day 1’s social media happenings. It’s a great review of blog posts and tweets referencing the day’s different sessions. Looking foward to seeing the recap for the rest of the sessions!

For those not attending the NRF Big Show, don’t forget you can use Twitter search to follow the NRF keyword to keep up to date with what’s going in in New York this week. There’s a bunch of attendees who are on Twitter and there’s been some good ideas and comments being posted there. I’ll be Tweeting from the Expo Hall tomorrow.

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I just took a look through my statistics for the year and have compiled a list of the most popular posts here on No Turn On Red. Looks like the real-time information provided by retailers via Twitter was the breakout topic that I wrote about this year.

• More Corporations Offering Gustav Information on Twitter
• Hurricane Gustav, Home Depot, and Twitter
• Online travel agencies & the US Presidential Inauguration
• JC Penney: Teen sex advert not ours
• JCPenney, Twitter, YouTube and Viral Marketing
• NJ GOP Proposes Sales Tax Holiday to Spur Consumer Spending
• Guiding customers to the products they need

Happy New Year to all my readers. May we all be surprised and see 2009 turn into a brighter year than we are all expecting! Thanks to everyone who visits, reads, and shares information from this blog. I do appreciate the readership!

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ComScore reports that Cyber Monday spending increased 15% over last year. While the November to December period is down 2% from last year, this weekend saw tremendous gains in online sales. Breaking down the data a bit more, ComScore today reports that there was a 22% increase in online shoppers, though a decrease in the average value per transaction. Online shopping sites saw a 33% jump in traffic, with Best Buy seeing a 131% increase in traffic. I hope they were able to reap the benefits of that. More detailed breakdowns available in today’s release from ComScore.

Best Buy recently turned to their retail stores to look for talent to build their new intranet. There seems to be a good focus on breaking down divisions between rank and accelerating communication from the bottom up. Employee feedback is being used by merchants to help make better, and most likely, more timelier decisions. I also really like the fact that they went to the store level to find the skill to build the intranet, essentially allowing the target audience to have a major say in how the site will be built.

Walmart and Coke have released a new commercial called “Joy! Enough to go around“. The commercial pushes the low prices that Walmart has on Coke products; prices so low that it allows the star of the video to throw a holiday party for everyone he knows. It’s a really well crafted video. I love the continuous, one-camera shot of this video. Now, I can’t get the jingle out of my head. Well done, I think.

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Cyber Monday is here and.. almost gone. This is a holiday created by marketers looking to capitalize online sales that may or may not one day match the phenomenon that is Black Friday. In the meantime, it still represents a day in which there area significant chunk of e-commerce sales and deep discounts.

Regardless of the hype, Cyber Monday seemingly caused an uptick in visitors to e-commerce websites throughout the industry. Web servers across the country saw their processors stretched to the limit and on-call IT technicians had their hands full. By and large, it appears that most websites were winners – with only a few retailers seeing minor downtime or sluggishness – applause and props go to the often overlooked network engineers and sysadmins who kept their servers runner.

The Cyber Monday cross hairs were aimed directly at the web servers of two retailers: J.Crew and Bloomingdale’s. Both retailers have seen significant outages today – with each website serving “System Unavailable” messages since early this afternoon.

Earlier in the year, J.Crew redeveloped their website. The site has seen problems and glitches ever since the launch. J.Crew went as far as to blame their decline in Q3 revenue on the problems they were seeing with their relaunched website. A lot of money was spent, I’m sure, on this new implementation of the website and it’s incredible to see the downtime they are still happening. Being down for a few hours on a weekday in June is bad – being down on one of the busiest days of the holiday season is unimaginable.

I don’t know what the issue is with Bloomingdale’s, but they haven’t fared much better. As with J.Crew, they’ve been serving a system error message for the better part of the afternoon. Another missed opportunity.

Additional coverage of the site outages from Computerworld and Crain’s, New York Business. I also have an on-going collection of System Maintenance screenshots over at ecommr.

Slowness and downtime issues aside, I’m hoping the rest of the industry is seeing a positive sales day. Looking forward to seeing the sales estimates over the next few days.

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Focusing today’s Express Lane on Black Friday and Cyber Monday. Here’s some articles that I’m reading that I’d like to share:

ComScore estimates e-commerce sales only up 1% on Black Friday. Retail stores only saw a 3% gain, the smallest gain in several years, according to ShopperTrak. The modest sales growth, combined with the deep discounts cutting into profit margins, has already helped send Wall Street into another daily tail spin.

For a further look into the Black Friday numbers, the National Retail Federation released a comprehensive survey into this year’s shopping habits. Seeking Alpha does a great job of digesting and breaking these numbers down.

CNBC has a good look at how Black Friday transpired at one local mall. Good snapshot into the events of this day at one New Jersey mall.

Of course, today is Cyber Monday. Retailers are offering deep discounts and free shipping. Twitter is on fire with people discussing deals and sharing links. Looking forward to seeing the sales figures for today and I wonder what impact social media will have today.

And finally, the industry did have some very tragic events occur on Black Friday when a worker was trampled to death at a Long Island Wal-Mart and two men were killed in a shooting at a California Toys R Us. Very sad and tragic events, indeed.

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Couple of stories that I’m reading this morning:

CNBC’s got a great run down on Amazon’s holiday strategy. The online retailer saw a 42% sales growth in Q4 2007 and forecasts 12 – 15% growth this year. Remarkable feat considering consumer spending is forecast to be down this season. The retailer looks to siphon sales from other retailers by offering low prices and “ridiculous deals”.

Shop.org has released more data on expected consumer habits through this Holiday season and especially for this weekend. Bottom line, consumers are using the web to enhance their real world shopping experience. Be prepared.

Just on the heals of reporting very soft e-commerce sales growth in October, Comscore forecasts flat growth in e-commerce sales for this holiday season. They estimate a 4% decline in sales through the first 23 days of the Nov-Dev shopping season.

Earlier today I talked about JCPenney’s use of social media, Twitter, and viral marketing. I missed this press release from the retailer detailing some of the improvements they’ve launched on jcp.com for a better online shopping experience. More product photos, customer reviews, and more online-only promotions. Kohl’s holiday strategy also emphasized a better online experience.

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comScore has released their October 2008 US retail e-commerce sales estimates. The verdict? Sales were weak – only up 1% over October 2007, which is the softest increase since comScore started tracking US retail e-commerce sales in 2001.

For households making less than $50,000, sales were down 3% for the past three months, compared to the same time period last year. Households with incomes over $100,000 saw a 14% growth in the same time period.

The economy is hitting everyone hard right now and it appears that no retailer, online or live, is immune at this point.

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