**Palm Springs**: The Modern Retail eTail West conference highlights the growing influence of technology on retail, with Fabletics’ Adam Goldenberg showcasing data-driven strategies and the vital role of video content in enhancing customer engagement and reducing return rates across the industry.
The Modern Retail eTail West conference is currently underway in Palm Springs, drawing approximately 2,500 industry professionals to engage in discussions surrounding the future of e-commerce. Day two of the event enhanced the spotlight on technological advancements influencing retail, notably investments in artificial intelligence and video content.
Adam Goldenberg, co-founder and CEO of Fabletics, delivered a keynote address emphasising the company’s commitment to leveraging data to enhance user experience. Fabletics has invested over $400 million into technology initiatives to establish a data-driven operational framework. According to Goldenberg, a significant proportion of Fabletics’ revenue is driven by its VIP members, of which 80% contribute to 95% of sales. “Data collected throughout their journey with the company,” he explained, has allowed for highly personalised shopping experiences, adjusting product recommendations based on individual preferences and behaviours.
A key aspect of this strategy includes the incorporation of video into the e-commerce platform. Goldenberg asserted the importance of video in conversion rates, stating that consumers are more likely to make purchases when products feature authentic video reviews. Fabletics utilises content from 4,000 micro-influencers monthly, currently generating 4-5 videos for approximately 90% of products on its website. This approach has led to high levels of customer engagement and reinforces the brand’s online presence.
Furthermore, Fabletics has made strides in reducing return rates, which stand at about 7%, significantly lower than the industry average of 12-15%. This achievement is attributed to the company’s focus on size and fit accuracy, which Goldenberg noted could be maintained through rigorous testing and holding suppliers accountable for product performance. For instance, a specific clothing item may be produced across multiple factories, with performance tracked and compared to ensure consistency.
The conference also covered broader trends in social media and content strategy. One tech executive acknowledged the emerging significance of LinkedIn in B2B marketing, likening it to TikTok, noting its effectiveness in recruiting and engaging clients. Daniel Rodriguez, CEO of Currently Wine, highlighted the benefits of his “build in public” strategy on LinkedIn, stating that it has generated substantial interest and support from potential investors.
Chris Berg, senior director of client strategy and service at January Digital, presented a compelling statistic during the conference: “Our recommendation for most brands is 80% video [content], across every channel — even for promotion and conversion media: Run video, not statics.” This assertion underlines the anticipated shift towards video content as a primary format in digital marketing strategies.
Ruchika Julapalli, vice president of digital experience at J.Crew and Madewell, shared insights into their technological innovations, specifically regarding AI. She noted a successful initiative in developing AI-generated review summaries on product detail pages, which has significantly aided customer decision-making. “Around our HQ, everyone’s like, ‘I love this new thing. It’s really helping,’” Julapalli remarked, reflecting the positive feedback from both the leadership and the customer base regarding the new technology.
As the conference continues, the discussions surrounding technology-driven strategies and the integration of video content into e-commerce underscores the transformative direction of retail in the digital age.
Source: Noah Wire Services
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