Online sales changing fashion industry sales
Online sales are increasing by leaps and bounds. The rate is measured at more than 30%. It has become very important for all companies to have an e-commerce site. E-commerce is directly competing with retail sales and customers are also checking out online stores or sites before making retail purchases. The most sought after product in this category is fashion and apparel brands. Today, there are not only brand specific online stores but multi branded e-commerce sites where customers can compare different brands, different styles and check out hundreds of items. With the discounting policy of online sales customers are getting incentive to make heavy purchases and this is directly interfering with retail sales of fashion brands.
Basics of affiliate marketing program
It’s not only the need of the day but looking at long term perspective it’s essential to have a strong digital marketing strategy. Affiliate marketing is an inseparable component of this strategy. Affiliate marketing basically means that a smaller individual or organization gets connected with a larger organization. So many small business fashion companies, fashion bloggers get affiliated to larger fashion brands to advocate and promote branded products. It’s a purely performance based marketing program where merchants or the brands pay commissions based on each purchase. The programs quantifies it’s effectiveness by measuring the traffic, sales and ROI. The payout is based on Cost per Acquisition or Cost per Click model. The basic structure is that a fashion blogger or an individual writing about fashion has to register with a brand. On registration the brand is called a merchant and the blogger the affiliate. Registration is absolutely free and what’s more interesting is that the merchants often provide training for grabbing customer acquisition and marketing opportunities. The merchants always provide all necessary product information, images and videos along with the advertising tools like banners, text links and codes to the bloggers for publishing the brand advertisements. Bloggers hold their blogs very close to them so they select brands which they like.
A win-win situation
It’s a very lucrative way to earn money for both the blogger and the fashion brand or merchant. The only thing the blogger needs to do is to make his or her blog interesting with original content, crisp layout and a sophisticated look and feel. The blogger of course need not put any money on registration and earns, on the contrary, a handsome commission which is as much as 10% to 15% of each transaction value. It’s an easy way to earn quick bucks in these times of increased inflation and lay offs. Many people cover up their basic daily needs by earning money from such advertising avenues. Fashion brands have a definite return on investment with low risks as the process is completely quantifiable. It directly measures the ROI by advanced Google analytics system. The training costs and hiring costs of sales people are also negligible. It is also more cost effective and hassle free to maintain an online store rather than a retail outlet with respect to investment, manpower management and branding. However, the brand value of this channel and customer lifetime value needs to be measured for an all round success of fashion affiliate marketing strategy.