Kleiner, Perkins, Caufield & Byers partner Mary Meeker’s annual Internet Trends report is one of the most highly anticipated reports in the tech industry. The extremely thorough (213 slides to be exact) report can be a little daunting to go through in order to find the most pertinent information to each industry. Luckily, Retail Dive pulled together the highlights of the report specific to the retail industry.
Here are some of the highlights from the Retail Dive piece, which can be read in its entirety here:
- Internet sales in the U.S. have steadily increased since 2000, when they made up less than 2% of all retail sales, to about 10% of retail sales in 2015.
- Major retailers are reaching $100 million in online sales in less time: it took Nike 14 years after the launch of its eCommerce site to hit this milestone; lululemon athleta took nine, and Under Armour took eight.
- Warby Parker, once an eCommerce pure-play, now makes more money per square foot in its 31 retail stores than Tiffany’s (second only to Apple). Retail Dive points out that this is even more astonishing when comparing the price points of the companies’ merchandise – Tiffany jewelry sells for thousands of dollars, while Warby Parker is famous for its low-price, stylish glasses.
With all this growth in both eCommerce and physical retail, Meeker suggests retailers’ ad dollars should start shifting to mobile, as shoppers turn to their phones to make purchases and discover new products on social networks like Facebook, Instagram and Snapchat.
Missing the Boat on Mobile?
Meeker claims that retail marketers are missing the boat on mobile and are still spending a bulk of their budgets on legacy outlets. This could be an issue for retailers, especially those targeting younger demographics. Meeker’s report highlights that millennials now encompass 27 percent of the U.S. population, and they are moving into their prime spending years. And, according to a February 2016 AdAge article, “Why Retailers Are Missing Out on Mobile With Millennials,” younger generations are spending upward of 80 hours a month on their mobile devices!
Retailers without a mobile strategy – whether it be ads, apps or mobile-optimized sites – are missing out on an opportunity that rang up $35 billion in U.S. sales last year. To thrive in today’s retail environment, retailers need a seamless solution that delivers a game-changing shopping experience, and that most certainly includes mobile.
For additional insights from Mary Meeker’s Internet Trends Report, check out: