At years end, Fluid celebrates ten digital retailers that took bold action in 2011 – some are our clients, some are not. The order is purposeful. We count down to the brand actions we see as boldest. The gauntlet for 2012 has officially been thrown. Fun.

Think there’s a bold action that should to be on this list? Send it on.

Happy Holidays,
Amy

Bold Action #10 NetFlix: Facilitate visual navigation just for kids
In November Netflix revised their Wii app to include a “Just for Kids” section, navigitable by cartoon and kid characters. The under-12s will never be computer-centric – design is changing accordingly. In fact independent of age, design for tablets and touch-screens began to heavily drive web design in 2011, instead of vice versa.

Bold Action #9 AmEx: Bolster small businesses with their own Saturday
AmEx isn’t a digital retailer but in a year of bold moves by payment systems (Paypal’s Facebook app, Square’s rise, etc.) they sparked digital commerce success. Lodged between Black Friday and CyberMonday, Small Business Saturday drove social traction, offline sales and fueled Davids over Goliaths. Another brand focused on small business buying, Etsy, saw 80% YOY CyberMonday sales growth.

Bold Action #8 Coach: Kick the purchase funnel to the curb
Rich, bold imagery conveys the sensory elements of Coach products in the magazine style format of their ecommerce site. It gets most interesting though (to us) when you go to buy. Gone are the traditional .pdp pages – product details and Add to Cart are treated in a quick view. And checking out is no longer a purchase funnel, it’s done all on one page.

Bold Action #7 JCPenney: Incubate companies to target market opportunity

JCPenney had proof of market opportunity in two areas: 1. Men’s style and 2. Gifts. Recognizing the strengths (and constraints) of the JCPenney brand they served as their own VC funder and incubated two new digital only ventures. Partnering with Hearst Magazines, CLAD and Gifting Grace were welcomed into the world this Fall.

Bold Action #6 ASOS: Trust a marketplace will amplify – not compete
ASOS is the UK’s largest independent online fashion retailer, offering over 850 brands and their own ASOS label. This year ASOS opened Marketplace which allows anyone, anywhere to sell fashion to anyone, anywhere. Indie labels, emerging designers, vintage boutiques and clothes hounds are encouraged to apply for a boutique. ASOS positions themselves as celebrators of fashion and takes a percent of sales.

Bold Action #5 Reebok: Showcase custom shoes for on-demand inventory

Customers love custom shoes. Reebok saw success grow and decided to give custom shoes their own shop. In 2011 it excelled. It’s fueled by attribution to the custom creators, design voyeurism and social sharing – social that also serves as ratings and reviews. Custom options permeate their traditional inventory for a persuasive cross-sell.

Bold Action #4 eBay: Declare ecommerce is dead and buried

John Donohue, CEO of EBay, declared the concept of ecommerce dead and buried. Consumers think shopping, not device. “Over the next 12-24 months we’re going to see an explosion of experimentation, and no one knows what’s going to take off and what’s not.” Right now it’s mobile – U.S. eBay mobile shoppers spent 2.5x more on CyberMonday than in 2010. PayPal Mobile saw a 552% YOY increase in global mobile payment volume for the same day.

Bold Action #3 Apple: Overtly and publicly celebrate the life of Steve Jobs On Oct. 4th Apple launched the iPhone 4S, on Oct. 5th Apple announced that Steve Jobs had died. Defying the speculation for years that Apple stock would drop upon his death, Apple owned the celebration of his life outright. The homepage of the Apple store honored him for days and Apple stores became pilgrimage sites of emotional expression. Consumers responded with an unprecedented outpouring.

Bold Action #2 Patagonia: Declare “Don’t Buy” on the years’ biggest shopping day

Retailers wait all year for Thanksgiving weekend and this year Black Friday and CyberMonday did not disappoint. In the flurry of price drops, limited editions and 4am store openings, Patagonia took a bold stand. A full page ad in the NYTimes and their home page declared “Don’t Buy This Jacket.” A stand for their Common Threads Initiative, the buzz was widespread and polarized.

Bold Action #1 Amazon: Reward consumers for price comparing

Yes people research online and buy in-store. Amazon is aggressively encouraging people to research in-store and buy online. This shift in behavior is significant for digital (and is happening independent of Amazon). Amazon’s advantages? Prices that benefit from large inventory and the lack of online sales tax. The controversy around their Dec. 10th promotion is likely to bootstrap mobile buying – and expedite the sales tax conversation.

As we enter the Holiday 2011 season, it is clear that mobile devices are playing a growing role in how people play, socialize, and shop. There are now 328 million smartphones, tablets, and laptops for the 315 million people in the US, and mobile web traffic has doubled in the past year. Currently, 37.4% of people in the US have a smartphone, and with 650,000 people switching from feature phones to smart phones every week, we are on track to hit 50% of people with smartphones by September 2012.

Apple still dominates the smartphone and tablet market, but Android has seen dramatic growth. Apple accounts for 43.1% of mobile devices and 58.5% of mobile web traffic, while Android accounts for 34.1% of mobile devices and 31.9% of mobile web traffic. Apple device owners are clearly very comfortable accessing the Internet via browsers and mobile apps, but combined with Android we have 63 million people accessing the web via mobile, and another 21.5 million when we add in Blackberry and Microsoft devices. That’s at least 84.5 million people on the web regularly via the most common mobile devices.

So, what are all of these people actually doing on their mobile devices? Recent data from the Pew Research Center identified the most common activities on mobile phones:

• 73% send and receive text messages
• 73% take photos
• 54% send photos (or videos)
• 44% access the Internet (via browser)
• 38% send and receive email
• 35% play games
• 34% record video
• 34% play music (Pandora reports that 50% of their traffic in August 2011 was to mobile devices!)

Other studies report that 58% of people read news on their tablets, and 25% do that daily. Socializing is also popular with 3 out of 5 mobile device owners reporting they are active on social networks, and 72.2 million people in the US accessed social networks and blogs via mobile devices in August 2011, a 37% increase over last year.

But what about mobile applications? As mentioned above, we’ve been monitoring the popularity and use of the mobile web and mobile applications over the past few years.  The trend is clearly toward using mobile optimized web sites for general activities and mobile applications for productivity, focused functionality, and brand-specific experiences.

How many mobile applications are being installed and used? In 2009, 22% of smartphone owners had installed mobile apps; by August 2011 that increased to 38%, and 75% of tablet owners report installing applications. More data from the recent Pew Internet research shows that:

• 68% of people with apps on their smartphones report using them
• only17% of smartphone owners use no apps (and only 8% of tablet owners use no apps)
• 51% of smartphone owners use 1-5 apps per week
• 31% (so-called “power users”) use 6 or more apps per week (while 39% of tablet owners fall into this category)

How are people using all of the mobile applications?

• 74% provide updates on news, weather, sports, and/or stocks
• 67% help communicate with friends and family
• 64% help people learn about something in which they are interested
• 53% help people find information
• 48% facilitate work-related tasks
• 46% are for shopping and/or making purchases
• 43% watch TV or movies online
• 35% retrieve information about en event
• 29% track and manage their personal health

Yes, you read that correctly: 46% of people who use installed mobile applications are using them to shop. This is a significant market and a huge opportunity. Forrester reports that mobile commerce increased 25% in the first half of 2011 (and mobile traffic was up 300% for Holiday 2010), and PayPal is processing more than $10,000 per minute in mobile transactions (at an average of 3 mobile transactions per second, they anticipate $3.5 billion on mobile payments for 2011!) So far in 2011, the average ecommerce site is seeing 10% of traffic from mobile devices, and that number increases to an average of 15% for premium brands.

Customers are increasingly comfortable with mobile shopping and making purchases via mobile devices, and they are not making only small purchases: in October 2011, eBay sold a $40,000 backhoe via mobile, and Blue Nile sold a a $300,000 diamond engagement ring via their iPhone app in September 2011. Blue Nile also reports that purchases in the thousands or even tens of thousands are “not uncommon.”

Acceptance of and attitudes toward mobile commerce are strong and positive. Recent analysis by JiWire shows that nearly three-quarters or more of consumers are comfortable buying on mobile devices, and older, more affluent consumers are more likely to make larger purchases.

For adults between 18-34 years:

• 73% are comfortable buying on mobile (14% are not willing to buy on mobile)
• 27% spend under $50
• 13% spend $50-99
• 15% spend $100-249
• 14% spend $250-499
• 17% spend $500+ (45% do research before spending $500 or more)
• 13% do price comparisons
• 23% research on mobile, but buy online (non-mobile)
• 15% research on mobile, but buy in-store

For adults between 35-54 years:

• 83% are comfortable buying on mobile (11% are not willing to buy on mobile)
• 18% spend under $50
• 13% spend $50-99
• 17% spend $100-249
• 19% spend $250-499
• 22% spend $500+ (34% do research before spending $500 or more)
• 34% do price comparisons
• 31% research on mobile, but buy online (non-mobile)
• 32% research on mobile, but buy in-store

Mobile commerce is growing rapidly, and both the mobile web and mobile applications provide opportunities to reach consumers and provide the information, features, and services they need to make purchase decisions and complete transactions. With nearly half of tablet owners reporting they made a purchase from their tablets, and with 111 million smartphones and tablets in use and growing quickly, now is the time to establish a brand presence in the mobile space.

We witness it when football players take ballet. We see it when a furniture designer looks to nature for inspiration. We hear it when Tony Bennett teams up with Lady Gaga.

Unfortunately, we don’t witness this in the digital world enough. Instead of being open to a range of influences, site design processes often have a narrow focus that can result in  “me too” looks rather than differentiated designs.

How does this happen?

As part of the discovery process, companies typically limit their review of the digital landscape to direct competitors and “top sites.”  This practice is important for benchmarking and informing feature prioritization. But done alone, a competitive review can be limiting and inadvertently create a “keeping up with the joneses” effect rather than setting the stage for a differentiated experience.

How can you avoid this pitfall and create a more differentiated experience?

By expanding your circle of influence. By supplementing competitive reviews with brand spheres.

What Is A Brand Sphere?

A brand sphere is a map of your customers’  “go to” brands across verticals. It identifies the brands they choose as they go about their day and the brands you can find in their home.

What is in their refrigerator? Which labels do they wear? What car do they drive? What kind of phone do they have? Where do they eat out? Which gym do they belong to? Which hair and body care brands do they prefer?

A brand sphere draws a more complete picture of your customer. It illuminates their preferences and expectations. And it provides new fodder for inspiration.

For example, if you are designing a consumer electronics shopping site, why limit your influences to only other electronics sites or even ecommerce sites in general? Why not look at music and video sites where your consumers most likely spend more time? Why not look at the CPG sites that fall in their brand sphere? What can you learn from the news sites they visit? The social networks they use?

By looking across verticals, you will expose yourself to different design approaches and feature sets. The purpose is not to imitate these approaches but to take a step back and see if there are any distinct designs or features that spark an idea.

Undoubtedly new perspectives will fuel new ideas. Ideas that are as elegant and powerful as a football player who can both rush and plié.

Fluid got to take the stage at eTail East’s Social Commerce Summit last week. So fun. We share our presentation with you here:

The four examples you need to see:

1. Etsy’s Gift Guide

The best use of Facebook liking data that I’ve seen yet. Pick a friend and Etsy matches their likes (and interests) to Etsy products. It’s a peep show of the possibilities this public data holds.

2. J.Crew’s Very Merry Gift Guide

This stands out for two reasons: 1. Talk about beautiful, curated collections. It tells a story that makes me forget that it’s cross-sell. 2. Of-the-month offering. Subscription selling finally meets style. Why aren’t more brands doing this? Expect them to be doing so in 2011.

3. Victoria’s Secret Gift Cards (on Facebook)

Sharing gets sexy. Not only can you comment on photos from last night’s holiday party, now you can share a gift card – without ever leaving Facebook. Buying just got easier for last-minute Lucys. (Starbucks has Facebook gift cards too).

4. Coach’s Gift List (on Facebook)

The ripple effect of Polyvore permeates this design (as it continues to do throughout fashion). Drag and drop from Coach’s yummy collection to a wish list within Facebook – and affiliate each item with a friend.

Who’s going to top this in 2011? Fluid has some tricks up our sleeve. Exciting.

Happy Holidays,
Amy

Fluid (@Fluid) collaborated with Lipman and Diane von Furstenberg to create a tweet-infused online catalog for DVF’s fall collection. You can experience the interactive catalog here.

Rich interactivity + iPad / iPhone compatibility.

The online catalog is richly interactive but coded so that it can be fully experienced on the iPad / iPhone. The video player, interactive carousels and screen transitions are all HTML5, delivering a great shopping experience and letting DVF reach its audience on the all the devices that matter.

Fully twitter-enabled catalog experience.

To put it mildly, Diane von Furstenberg is an avid twitterer (<@InsideDVF>) and her posts are addictive. The catalog is built around her most iconic statements – like “I always wanted to live a man’s life in a woman’s body” – and letting users retweet her latest posts directly from within the catalog.

Most interesting is that each product has it’s own hashtag – e.g. #jane bolero – encouraging users to tweet out what they like at a product level (they can tweet/share/like the catalog as a whole as well). The result is product-specific tweets with unique bit.ly links to each product detail page that help track the consumer’s path through the social shopping funnel and the traffic driven from their shares, likes & tweets.

Follow Andrew Sirotnik at twitter.com/asirotnik

*Thank you* to the people behind the “people’s choice” Adweek Buzz Award! And special thanks to our great clients at Rachel Roy and the Jones Apparel Group. We’re thrilled to get this recognition for the facebook pop-up store for Rachel Roy!

(more on the facebook fan shop and why it worked here)

Fluid (@Fluid) recently launched two customization-themed shopping experiences for Sears: Craftsman Custom and The Garage Planner.

Craftsman Custom delivers a premium experience for consumers to tailor a pro-quality tool storage solution to their specific needs and tastes. The experience leverages 3d visualization to deliver a blueprint-like experience that progressively builds into a photo-realistic vision of the consumer’s ideal product, all in real time.

The Sears Garage Planner experience is built on inspirations and “starting point” ideas. Consumers are presented with an interactive photo gallery of shoppable and customizable garage storage solutions. The experience is simultaneously inspirational and actionable, injecting the consumer with ideas and empowering them to make them their own.

Our team has a long history designing shopping experiences for customizable products, including …

• FunStamps (the first personalizable stamps offering)
• Timberland Boot Studio (custom footwear)
• Your Reebok (custom footwear) + facebook configurator
• Design Within Reach FLOR Designer (custom carpet configurator)
• Fine Stationery (card & stationery customizer)
• Vans Customs (custom footwear)

We’re fortunate to collaborate with such great brands to innovate new shopping experiences in such a nascent field. We’re proud to be among the first who have created configurators delivering consumers real-time visualization, product rotation, share-to-phone and integrated social sharing tools.

The business benefits of a better customization experience: 200%+ increase in sales, 16+ minute average consumer engagement on-site, spikes in sharing & heavy engagement with social media customization tools.

Some recent observations, field notes, and expectations looking forward:

• Before the “economic downturn” (or whatever it’s called now), Fluid was seeing RFPs for customization up approx 5-10x showing a sharp increase in interest across industries. The recession put most of those projects on hold.

• Those brands that continued forward became increasingly strategic around customization, seeing it as a brand and business building opportunity. In many cases increasing scope and decreasing timelines in an effort to get to market quickly with robust offerings (a differentiation/barrier strategy).

• Interestingly, over half of these brands are in verticals outside of footwear.

• Embedding up-sells in the customization experience has proven so effective that some retailers are pricing base models at-or-under cost and attaching costs per attribute selection (e.g. premium colors, extra set of laces, etc.).

• Providing the consumer with simple, intuitive social tools — both providing the ability to chat real-time with friends & ability to engage one’s facebook network without ever leaving the customization experience — has become a priority among most of our clients (and now considered a best practice within Fluid).

Finally, three predictions:

1. Customization experiences will take shape in ways that are more subtle and less overt – more about great digital shopping and less about “configurators” per se. This is what most consumers want. Thoughtful experiences that embed customization vs. customization being the main draw will help launch this consumer-driven approach to digital shopping into the mainstream.
2. Customization will make the notion of a crowd-sourced economy a reality. Champion and Keds are first movers (and got a lot of brand benefit as a result + some satisfaction at beating Nike to market I’m sure
3. Customizable shopping experiences will increasingly be deployed exclusively to social channels like facebook. Customizing something lends itself superbly to a community atmosphere – expect to see brands fully leveraging all that facebook has to offer in that regard.