verde live: august 12 - gains in the bike industry, click bait and fake news, Amazon's Q2 earnings and more
verde live - august 12, 2020
On this weeks episode, Kristin covers gains in the bike industry, click bait and fake news, Amazon's Q2 earnings and the accelerated pace at which consumer behavior trends are changing because of COVID.
KEY takeaways and links:
A surge in the bike industry: Modern Retail writes that sales in the bike industry are up by 70% YOY. A bulk of these new cyclists are comprised of people choosing to use bikes over public transport - but I would like to add that people are also using their new bikes for exercise and wellness. Though the cycling industry is exciting about its growing popularity, the article sites that a key limiting factor is the complete exhaustion of shop owners and employees.
Fake news and click bait: Cycling Tips reports that - contrary to many reports in the media - Simon Cowell broke his back riding an electric motorbike (not an e-bike) with a top speed of 60 mph. Readers need to be able to TRUST the media - especially established media. Click bait headlines and shoddy reporting hamstring this trust - and it’s incredibly tough to repair.
In retail news: Amazon reported earnings for its second fiscal quarter of 2020, including revenue, to be up by 40% to $88.9 billion, a net income of $5.2 billion. The mega-marketplace increased grocery delivery by 160%, subscription services by 29% and saw huge gains in ad revenue.
Tune into my conversation with David Howell - a marketplace expert - on Channel Mastery for more information about how the 40-day shut down of fulfillment by Amazon, and the snails pace delivery of Prime through COVID, has consumers looking at other marketplaces.
Consumers are more likely to buy from brands they follow on social media: The Sprout Social Index Report shares that 50% of consumers have increased their social media usage in the last six months. 89% of consumers will buy from a brand they follow on social, with 84% saying they’ll choose that brand over a competitor.
COVID and the accelerated growth in e-commerce: A recent report by McKinsey & Company sites that we have seen a 10-year growth in e-commerce in three months because of COVID-19. Retail TouchPoints says the increase in e-commerce is presenting a BIG challenge in terms of brand loyalty.
The Retail TouchPoints report continues: Retailers have turned to proven resources to battle customer defection: discounts and free services. Just over half (52%) of retailers now offer free shipping, up from 44% in 2019 — a mark of how vital the delivery experience has become.
Join Kristin for the next Verde Live on Monday, August 17, at 11:00 a.m. (MDT) on the Verde Brand Communications YouTube channel. Visit our YouTube channel for past episodes and to subscribe today.