Retailers shift their ad spending from TV, radio and print ads to digital ads.
Revenue climbs 15% in the first half of the year at the e-commerce operator. A new and improved Yoox.com is producing an 18% increase in conversions just weeks after its launch.
Yoox Group, an Italian retailer that sells online and operates e-commerce sites for other brands, has reported today 15% revenue growth in the first half of 2014 and strong initial results from its redesigned e-commerce site. The retailer says the new Yoox.com is producing an 18% increase in conversions and a 3% lower bounce rate than the old site just weeks after launch.
Yoox says the new site makes site navigation and the path to purchase simpler and faster. The new site is also designed to magnify the visibility of certain sections, such as what Yoox calls “Pop Up Stores” that feature specific brands. It also beefed up site search. For example, sunglass shoppers can now search items by such criteria as face shape, material and lens options.
Yoox also improved MYOOX, its area for registered users, by adding features based on customer feedback, including greater social media integration, personalized content based on the shopper’s provided profile information and easier ways to check the status of orders and returns. That has reduced contacts to customer service, Yoox says.
Yoox Group divides its businesses into what it calls its multi-brand line, which includes company-owned e-commerce sites Yoox.com, TheCorner.com and Shoescribe.com, and its mono-brand line, which includes the set-up and management of luxury retail sites for brands such as Bottega Veneta, Yves Saint Laurent, Alexander McQueen, Balenciaga and Sergio Rossi
Yoox Group says its total net revenue in the first two quarters rose nearly 14.8% year over year to 238.0 million euros (US $318.3 million) compared with 207.4 million euros (US $277.4 million) in the first half of 2013. Yoox Group’s second quarter net revenues reached 111.5 million euros (US $149.12), up 14.9% from 97.0 million euros (US $129.73 million) in Q2 2013.
For the first half of 2014, Yoox also reports:
- The average number of monthly unique visitors to all 37 of the luxury sites under the Yoox Group umbrella was 14.0 million, compared with 12.5 million a year earlier.
- Yoox Group received 1.5 million orders, up 15.4% from 1.3 million a year earlier.
- Its sites’ average order value fell 8% to 200 euros (US $267.48) from 216 euros (US $288.88) in the first half of 2013.
- The number of customers who had placed an order on a Yoox site in the past 12 months rose from 1.0 million in the first half of 2013 to 1.2 million in the first half of 2013.
- Its multi-brand line sales reached 173.9 million euros (US $232.58 million) up 16.9% compared with 148.8 million euros (US $199.01 million) in the first half of 2013.
- Multi-brand accounted for 73.1% of sales, compared with 71.7% a year earlier.
- Its mono-brand line posted revenue of 64.1 million euros (US $85.73 million), up 9.2% from 58.7 million euros (US $78.51 million) a year earlier.
- Its mono-brand line accounted for 26.9% of sales, compared with 28.3% of sales a year earlier.
For the second quarter of 2014, Yoox also reports:
- Multi-brand sales of 82.8 million euros (US $110.78 million) up 18.6% from 69.8 million (US $93.39 million) euros a year earlier.
- Mono-brand sales of 28.7 million euros (US $38.4 million), up 5.1% from 27.3 million euros (US $36.53 million) a year earlier.
- Multi-brand accounted for 74.3% of sales compared to 71.9% a year earlier
- Mono-brand sales accounted for 25.7% of sales compared with 28.1% a year earlier.
Breaking out regions for all of Yoox Group (mono and multi-brand lines), Yoox says Italy posted strong sales in the first half with sales up by 22.9% to reach 38.7 million euros (US $51.78) for the first half, from 31.5 million euros (US $42.15 million) a year earlier. Europe (excluding Italy) sales for the first half were also strong at 113.7 million euros (US $152.13) up 14.7% from 99.1 million euros (US $132.59 million) a year earlier. All of Europe, including Italy, accounts for 64.1% of Yoox Group sales.
Yoox customer Sergio Rossi extended its web store to China at the end of June. And this summer Yoox also began selling sunglasses on Yoox.com, and the retailer plans to add sportswear to its e-commerce offerings in September.
Yoox also began using popular mobile-based social network WeChat in China, Italy and the U.S. Yoox shoppers can use the network to chat with customer care and personal style advisors, as well as to access content and promotions exclusively reserved for WeChat users. Yoox plans to extend the service to other countries as well as the brands it builds e-commerce sites for in the future.
Yoox Group also began accepting the Korean Won, bringing its currencies to eight, and this month, it gave shoppers in France and Spain the option to collect and return their orders through thousands of pick up and drop off points nationwide. Many points are open until late in the evening and seven days a week, Yoox says. The service will later be offered in Germany, the U.K., Belgium, the Netherlands and Luxembourg, Yoox says.