Shopping is no longer what it used to be. The pandemic has transformed our consumer habits in many ways, especially when it comes to shopping. Faced with health restrictions, digital has taken center stage, and marketers have had to adapt to the new situation to address a new normal both digitally and physically. Never before have technology and digital tools been so useful and essential in keeping people, businesses, and communities connected. Now that countries are reopening in Europe, the Middle East, and Africa, the technology we saw last year is going to be a catalyst for economic recovery and resumption.
For now, the numbers are looking high in Spain: Our country is among those that have taken the most advantage of the e-commerce opportunity, with a 41% increase in sales through this channel (1). Online shopping has become normalized and digital has brought opportunities for brands, in fact, we know that the 36% of consumers have purchased from an online store they had not visited before COVID (2).
More than a year after the start of the pandemic, at Google we wanted to analyze what challenges the retail sector has faced today and how we have helped them gain the momentum they needed to overcome adversity and thus contributing to the economic recovery of such an important sector in our countryRetailers have shown us that they know how to seize the opportunities of this new post-COVID environment.
In Spain, e-commerce has consolidated significant growth even after the Christmas period. In fact, It is estimated that the growth of online sales will be consolidated post-covid around 35-45% (3). Even so, it must be taken into account that e-commerce presents different rules of the game. For example, the average consumer in Spain knows 13 online stores, but usually uses only 3 (4), and 47% of the global e-commerce market is concentrated in 5 business groups.
How has the Spanish retail sector adapted to this change?
Both during the toughest months of the pandemic and in its most recent stages, some brands have taken advantage of the digital boom to scale their online business and divert traffic from physical stores.
A good example is that of TOUS. The Spanish brand, which has been a leader in the affordable luxury jewelry and accessories segment with Google since 2019, has been able to reorient its commercial strategy by relying on and understanding the iThe importance of the role of your marketing teams and the use of technology to maximize your sales and boost your online channel business.This meant that once the lockdown on physical retail began due to COVID-19, the company was prepared to perform very well in its online business. “Faced with the challenges of the pandemic and with the desire to provide our customers with the best possible service, we saw it as essential to strengthen our partnership with Google. We optimized our full potential as a brand on the digital front by improving the connection between physical stores and online channels, implementing new Shopping ad formats, and a commitment to automation in our online marketing programs. This has helped us triple our online sales during the lockdown period, growing by 721% in 2019, going from representing 81% in 2019 to 201% in 2019. It has also contributed to the consolidation of our advanced omnichannel model,” states Carlos Soler-Duffo, CEO of TOUS.
In the case of Scalpers, due to the COVID19 pandemic, the Sevillian fashion company also faced the challenge of directing its efforts towards a 100% digital strategy. According to Francisco Gutierrez, Digital Chief Officer at Scalpers, “We decided to take quick action, taking our 2019 results as a reference, and invest based on the results of our prospecting campaigns in seven countries. Given the good results, we increased our investment in Google Ads, which increased our digital marketing budget from 12% to 20%, representing a potential annual growth of 13% to 15%. Furthermore, thanks to SSC and Discovery, we optimized our winter sales campaign.”
Another interesting success story has been D. Franklin, An Alicante-based startup from Illice Brands Group (IBG) that offers fashion and accessories products, participated in the latest edition of the Google for Startups Growth Academy program, focused on fostering the growth of the e-commerce industry and leveraging its acceleration to generate economic recovery in our country. D. Franklin suffered significant supply and distribution challenges during the pandemic. Despite this, With the help of Google, they managed to improve their internationalization strategy and managed to increase their customer base by 50%TP3Q and their year-on-year profits by 40%TP3Q. “Despite the challenges we experienced at the beginning, we managed to increase our revenue by 140% TP3T and our profit by 110% TP3T. Google has helped us from the beginning to better understand the consumer and transform our product lines. In addition, products like Smart Shopping, Discovery and Optimize "They've allowed us to improve our performance, identify new markets, and grow our business internationally. We've gone from a retail-only business model to establishing our online store, which now generates 75% of our sales—80% of our sales—in the international market," concludes Enrique Esquitino, CMO and Head of E-Commerce at D. Franklin.
The digital and the physical, closer than ever
At the same time, visits to physical stores are recovering. Our mobility reports reveal that Spain is one of the countries recovering most rapidly in terms of leisure and retail traffic. “Near me” searches are growing year after year
- +87% growth 2019 vs. 2018
- +20% growth 2020 vs. 2019
- +17% growth in 2021 vs. 2020
Similarly, the digital and physical worlds are increasingly interconnected, and consumers are turning to the internet to locate local businesses. In 2021, searches for “near me” continue to grow, up 171% compared to last year. This connection is evident when we talk about investment in digital media. According to a study by Analytic Partners, 50% of sales generated through the Paid Search channel are realized in physical stores.
In this sense, and to address these consumer changes, retailers must make their business more visible locally. Today, we are launching new tools to improve the visibility of their business profiles on Google.
First, we launched personalized recommendations to help each retailer stand out on Google: it's called Local Opportunity Finder, A new tool that allows business owners and retailers to receive personalized suggestions on how to make the most of their Google Business Profile and evaluate local opportunities without having a website, and improve their presence on Google Search and Maps. This is undoubtedly great news for business owners, especially since they can stand out by personalizing the customer experience. This new tool will allow retailers to better capture customer demand and grow their business.
Considering that users often use Google to search the Internet for information about products and companies before visiting stores, it is important that you keep the Company Profile Updated. Let customers know if you offer services like shipping, walk-in pickup, or in-store sales.
For businesses that do have a website, we also have the free tool Grow My Store. A site that analyzes retailers' websites and creates a personalized report on the quality of the user experience, along with recommendations for improvement.
To show your store's products on Google to nearby shoppers, you can use local inventory ads. You can also promote products available for in-store pickup or walk-in pickup.
The local campaigns are another way to drive traffic to your stores by promoting your locations to shoppers searching on Maps, Search, YouTube, and the Google Display Network. You can highlight special promotions and important changes to specific stores.