Commerce at Huge.
At Huge, we believe commerce can be human, and that transactions should be more than transactional.
Real relationships require brands to connect users to what matters most. Our experience has taught us that leaders in the digital-first economy do not treat digital as a “channel,” but as an amplifier of a brand’s experience, services, products, and core value proposition.
Commerce in 2020.
The way people work, shop, communicate and consume content is in flux -- and this transformation is perhaps most evident in the world of digital commerce, where the traditional purchase journey continues to radically evolve. Business models that drive substantially increased valuations -- like recurring revenue streams -- are at odds with growing user fatigue around the subscription economy, and a sense of “sameness” in what products and offerings brands are bringing to market. Combine this with the imperatives to be omnipresent across new platforms and touchpoints, consistent and contextual in messaging and capabilities, and to provide increasingly integrated physical / digital experiences, and choices for what to invest in and why become overwhelming.
The digital commerce journey as we knew it.
The impact of COVID-19.
2020 has been a year of upheaval -- and acceleration. We have seen an unprecedented uplift in digital penetration of sales, and brands who provide value-added digital experiences and services -- like Nike, who’s seen a 80% increase in digital engagement with tools such as Nike Training Club; or Peloton, who has struggled to keep pace with out-sized demand -- have disproportionately overperformed compared to peers.
Our proprietary insights data reinforces that this shift is not a fluke -- user research we conducted indicates that over 40% of consumers in the United States and Canada say they’re much more likely to leverage digital service technologies such as chat and video to engage, interact, and seek post-purchase support from brands moving forward.
What are you more likely to do?
Over 60% expect enhanced or more reliable omnichannel capabilities, like the ability to identify and reserve store inventory, perform curbside pick-ups, or be given an indicator for whether a physical store is “busy” or not. Other tracking indicators show that elements of social commerce, including live-streaming and digital events -- long established in China, but only recently emergent in the west -- have enormously accelerated in adoption, through newer entrants like TikTok and Houseparty, and through already saturated platforms like Instagram, Snapchat, Fortnite, and Facebook.
As every stage in the traditional purchase funnel has evolved over the last decade, the relationship between content and commerce has changed. This historic tension -- ‘content versus commerce’ -- now represents a false dichotomy. The world’s leading commerce experiences today, from browsing new destinations on AirBNB, to engaging with Sephora’s active beauty community, to walking the aisles at Trader Joe’s, are rich in content, imagery, and story. They connect us to an experience that is more than purely transactional.
Moving forward, we see an unprecedented opportunity to take advantage of this seismic shift -- to redefine offerings, launch new capabilities, or accelerate strategic investments -- and believe this period of change will define the leading brands for the next decade. To that end, Huge is doubling down on our commitment to commerce, partnering with brands who help us shape the future of how people buy -- and how we create a sense of togetherness without being together.
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