It is reported that many major brands are poised to ramp up their financial investments towards their e-commerce division, if they have one already, by an average of 16% over the next 6-12 months. This strategic shift comes amidst findings from the inaugural E-commerce Executive Strategy Snapshot by Pattern, a leading global entity in e-commerce acceleration.
According to the report, which canvassed over 300 founders and executives primarily based in North America across diverse product sectors such as beauty & personal care, sports & outdoors, home & kitchen, and more, a quarter of brand leaders anticipate substantial investment increases ranging from 31% to 98%. These investments are earmarked for critical areas including enhancing online product imagery, video, and copy (58%), bolstering influencer marketing efforts (51%), refining branding and packaging (43%), and intensifying product design focus (41%).
John LeBaron, Chief Revenue Officer at Pattern, emphasized the strategic importance of data-driven decision-making in today’s competitive landscape. He noted, “This snapshot ensures that executives don’t have to rely on conjecture when making critical decisions about how to shift their strategy for 2024 and beyond.”
Despite the optimistic investment outlook, the survey highlighted significant challenges hindering growth trajectories for many brands. Rising shipping costs and inventory management complexities were cited by a third of executives as prominent obstacles. Additionally, a quarter of respondents expressed struggles with managing unauthorized sellers and distributors, which poses a threat to sales integrity. Further complicating matters, expanding to new channels and marketplaces emerged as a barrier for another 25% of brand leaders, constraining their potential for growth.
In response to these challenges, a notable trend is the increasing reliance on external partners. The analysis revealed that brands partnering with e-commerce accelerators to navigate marketplace complexities reported fewer growth impediments compared to their counterparts.
The strategic realignment underscores the imperative for brands to adopt agile approaches in adapting to the evolving e-commerce terrain. By leveraging enhanced data insights and strategic partnerships, brands aim to not only mitigate existing challenges but also capitalize on emerging opportunities in the digital marketplace.
As brands gear up for a period of accelerated investment and strategic recalibration, the landscape of e-commerce is set for dynamic transformation, driven by innovation and resilience in the face of evolving consumer demands and market dynamics.
