DOES OMNICHANNEL LEAD TO GOOD FINANCIAL PERFORMANCE?
This year, Danske Bank has provided a financial analysis of the Omnichannel Index’s industries to get a deeper understanding of each industry’s terms.
Presented in collaboration with
Solid financial performance
a pressured industry
Danske Bank has conducted an extensive analysis of the companies’ performance in Denmark, Sweden, and Norway based on public records.
Here, they have accounted for the revenue from 2016 to 2018 and the associated growth rate. The Sport and Leisure industry has an average omnichannel score, and despite growing overall revenue within the Nordics, the earnings are generally under pressure especially in Denmark.
Average score of Sport and Leisure industry
Average score of the best performing industry
Since customers in the Sport and Leisure industry have specific wishes regarding product categories and professional guidance, a determined focus on these areas are focal points for the industry.
Their average omnichannel performance and intensified online competition does not make their future any brighter. Many gigantic fashion pure players and fashion brands sell sportswear and sneakers as well.
The industry focus on new digital sales channels and on offering a seamless customer experience in order to seek to retain their customers.
Everything points to omnichannel
By comparing financial data with omnichannel scores, it is obvious that the industry has a good starting point. Their average omnichannel score and stable revenue growth indicates that the industry has every possibility to win customers via a strong omnichannel experience and thereby increase growth.
Only 19% of the customers prefer to buy the industry’s product online rather than in physical stores. But when they buy online, they do it for the increased convenience and larger product ranges.
The results across nations
Sell directly to consumer
Since last year’s Omnichannel Index the industry has lost momentum. The industry was among the best industries last year, but this year several other industries have a stronger omnichannel performance.
In every single phase, the industry could benefit from increasing their level of omnichannel. The industry fights against many different actors such a fashion brands, fashion retailers and department stores, which all excel in the awareness and loyalty phase.
Brands like Nike and Adidas are known for taking advantage of their excellent customer experience as part of their strategy to sell more directly to the customers. This challenge the industry and makes omnichannel even more important.
What the industry can learn from Sport 24
The Danish company, Sport 24, is one the best omnichannel retailers in general. This is due to their seamlessness which the industry could learn from. Customers can checkout directly through Instagram and even pay with their own mobile device.
Another crucial difference between Sport 24 and most other sport and leisure companies is that Sport 24 save cart contents across channels, which support a seamless buying experience that every customer dream of. The seamless buying experience continues in-store where salesmen can provide updates on online orders.
Such initiatives deliver a feeling of personalisation that customers demand.