The e-retailer heads into the holiday shopping season behind a 30% increase in fulfillment spending and a widening net loss. North American sales increased ...
Since joining Tommy Hilfiger U.S.A. Inc. last year as director of e-commerce, Tom Davis has overseen a relaunch of the apparel company’s online retail site, ShopTommy.com, where Thanksgiving week sales were up fivefold year-over-year.
Since joining Tommy Hilfiger U.S.A. Inc. last year as director of e-commerce, Tom Davis has overseen a relaunch of the apparel company’s online retail site, ShopTommy.com, where year-over-year sales rose fivefold during Thanksgiving week sales and eightfold on the following Monday.
The company relaunched ShopTommy.com on Art Technology Group Inc.’s ATG On-Demand software-as-a-service platform, and Davis attributes part of the site’s success to Tommy Hilfiger’s ability to use the new e-commerce platform to better serve customers with more timely and effective merchandising. Software-as-a-service, a technology commonly known by the acronym SaaS, is designed to be shared among multiple retailers who subscribe to it over the Internet rather than license and install it on their own web servers.
But while some of the platform’s infrastructure is shared with other retailers, the platform also provides tools that let Davis and his merchandising team customize their merchandising efforts.
When the retailer noticed that female shoppers were buying a lot of men’s sweaters, for example, merchandisers used the tool kit to modify the merchandise displays presented to them. If Tommy Hilfiger figured a shopper was a woman, either because she logged in or because she navigated the site in a way typical of other female shoppers, the retailer showed her several products, like polo shirts, similar to men’s sweaters. “We don’t want to dissuade them from buying men’s sweaters, but we also don’t want to run out of sweater inventory, so we make sure they see similar products,” Davis says.
The merchandising tactic worked so well, he adds, that ShopTommy.com was able to increase by tenfold the number of men’s apparel items sold per day.