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| Abercrombie & Fitch has its sights set on the future of commerce... | (image source) |
On 17 January 2012, the National Retail Federation, the
largest retail trade association in the world, held its annual conference in
New York City. During the event, the technology and consulting corporation IBM
announced that Abercrombie & Fitch is "working" with them to
implement what IBM calls "smarter commerce" into A&F's direct-to-consumer
operations (e.g. the online "e-commerce" business of A&F).[source 1] This
is a move, in part by Abercrombie & Fitch, to further improve its
customer-business relations, with "speed, efficiency, and
adaptability,"[1] as it continues to grow its business in an environment in
which consumer activity is becoming ever more influenced by mobile and social
networking.
But what exactly is smarter commerce? It is a
concept by IBM which the company developed to signify higher business practices
of using collected consumer data, primarily through online activity, using
newly created software, to position marketing more effectively to better meet
customer shopping preferences. This would entail monitoring in real-time, using
social media, "to better assess the effectiveness of new services and
product offerings"[source 2] while "automating purchasing,
marketing, sales, and fulfillment processes to better serve
customers."[1] In effect, this would provide A&F with the
ability to "continue to deliver quality merchandise, and provide a unique
shopping experience that will deepen its relationship with consumers."[1]
Reportedly, Abercrombie & Fitch wants to elevate its
online operations to a $1 billion dollar business by sometime in the near
future and it will only achieve this by harnessing the power of modern,
innovative cross-channel solutions. We no longer live in a world where the
majority of interaction between a business and customer is through a
brick-and-mortar store. We're becoming highly interconnected through the
evolution of social networking and online activity and this is taking
customer-business interaction to a new level. It is crucial for Abercrombie
& Fitch to maintain an online shopping experience which satisfies and
surpasses the preferences of its shoppers while also keeping track of what
works and what doesn't. After all, about "2/3 of all consumers make a
first purchase because of a digital experience."[source 3]
To reach its aspirations, Abercrombie has thus selected
IBM's smarter commerce ingenuity. As the Senior Vice President and Chief
Information Officer for A&F, John Deane, explained, "We require a
world-class solution that will scale over time, bolster international
expansion, and support cross-channel commerce. IBM's e-commerce and order management
solutions meet our requirements for infrastructure, scalability, and future
growth."[1]
If you've been paying attention over the past few months,
you've noticed the steps the Company has been taking to further advance.
Redesigned e-commerce sites for the A&F brands were launched in early-2011
to systematically improve product organization and online shopping; and a
search feature was added as well as a further step. Meanwhile, the utilization
of Facebook as a social marketing tool continues to reach out to customers
worldwide. (Facebook plug-ins were integrated into hollisterco.com - "like" and sharing buttons for individual products - but were later removed in 2011). Furthermore, mobile websites for the brands were reintroduced in late-2011
as an improvement from the first, short-lived attempt at mobile e-commerce back
in late-2009.
And it is not just Abercrombie & Fitch getting
uplifts. Dior, which previously managed an annoying website itself - the Dior
Homme division was even more tedious - launched an updated version of dior.com,
in late-2011, which encompasses all of its divisions in one concise and
beautifully navigable site which brings forth an online experience with the
company that puts its previous version to shame. Louis Vuitton, which, too,
recently updated its website (also a much appreciated improvement), and created
its official Facebook page, is getting ready to launch, for the first time, its
mobile site. The point is that companies are aware of the power that modern
social, online, and mobile technology now have in retail in the 21st century as
important nodes of commerce.
Abercrombie & Fitch, a specialty retailer and a
global leader in its respective industry, is keeping up with the changing
times. Indeed, these have been challenging years (with the Great Recession and
what not), but the Company has proved capable of adapting and surviving.
Re-established as a fashion retailer in 1992, Abercrombie & Fitch has seen
much change in the industry and has grown considerably since...it's only just
begun. And this collaboration with IBM will continue secure a prosperous future
for the ever-expanding, worldwide A&F Empire! Cheers to that!
Stay FIERCE!