Knowing what customers want at all times
This is the story of how nelly.com disrupted the traditional retail models by fully incorporated Sam Walton’s quote:
“There is only one boss, the customer…”
– Sam Walton, Founder of Walmart and Sam’s Club
Nelly.com was founded in 2003 in Sweden by Jarno Vanhatapio. They initially started as a small online boutique offering a curated selection of fashion-forward clothing and accessories. Recognizing the growing demand for online shopping, especially among young consumers, Nelly.com quickly gained traction and expanded its product offerings to cater to a wider audience.
Nelly.com gather valuable insights into customers’ preferences
Early on they recognized the power of social media as a tool to engage with customers and gather valuable insights into their preferences. To enhance its offerings and tailor its inventory to better meet customer demands, Nelly.com decided to experiment with a unique approach using social media posts.
How nelly.com used social media posts to find out what to produce and sell to their customers
Nelly.com realized that traditional market research and trend forecasting methods were often time-consuming and didn’t always accurately reflect the rapidly changing preferences of their customer base. They recognized the need for a more agile and data-driven approach to curating their product offerings. The team at Nelly.com brainstormed ideas for how they could leverage social media to gather real-time feedback from their customers. So called “fresh data”.
They came up with the concept of posting images of potential clothing items on their social media channels, asking followers to vote on whether they would purchase the items or not.
With the concept in mind, Nelly.com began creating posts featuring images of clothing items from their upcoming collections. They kept the posts simple, including only a photo of the item, a brief description, and a call-to-action (CTA) prompting followers to vote “Yes” or “No” in the comments section if they would buy the item. They actively promoted these posts across their social media platforms, encouraging their followers to participate by voting and sharing their opinions. They also engaged with customers in the comments section, responding to questions and thanking them for their feedback. As the votes and comments started rolling in, Nelly.com closely monitored the engagement on each post.
They analyzed the data to identify trends, such as which types of clothing items received the most positive feedback, and which ones were less popular among their audience.
Based on the insights gathered from the posts, Nelly.com made data-driven decisions about which items to include in their inventory and which ones to prioritize for future collections. They adjusted their purchasing and merchandising strategies, accordingly, focusing on stocking items that resonated well with their customers.
Nelly.com didn’t stop with just one round of posts. They continued to experiment with different types of content, such as polls and behind-the-scenes previews, to further engage with their audience and gather valuable feedback. Through this innovative use of social media, Nelly.com was able to effectively crowdsource input from their customers, gain valuable insights into their preferences, and optimize their product offerings to better meet the needs of their target market.
This approach helped them stay ahead of fashion trends and strengthened their relationship with their customers by involving them in the decision-making process.
Nelly.com stands as a testament to the transformative power of e-commerce and the ability to disrupt traditional models. Its success story is marked by innovation, adaptability, and a deep understanding of its target audience.
What made nelly.com so successful?
Nelly.com embraced the principle of thinking big but starting small and validating before they invested which allowed them to quickly adapt to changing market trends and customer preferences. By leveraging data analytics and customer feedback, the company continuously optimized its product assortment and marketing strategies to stay ahead of the competition.
Nelly.com differentiated itself in the crowded e-commerce landscape through innovative marketing strategies, particularly on social media. The company was an early adopter of influencer marketing, partnering with popular fashion bloggers and social media influencers to promote its products to a broader audience.
Nelly.com fostered a strong sense of community among its customers through engaging content and interactive features on its website and social media platforms. The company encouraged user-generated content, such as outfit posts and product reviews, to create a more personalized shopping experience for its audience.
Building on its success in the Nordic region, Nelly.com embarked on an ambitious expansion strategy to penetrate new markets. The company expanded its presence across Europe and beyond, establishing itself as a global fashion destination for young, trend-conscious consumers.
Nelly.com vertically integrated its operations by establishing partnerships with fashion brands and suppliers, allowing them to exert greater control over its supply chain and product quality. This vertical integration enabled the company to offer a wide range of exclusive products at competitive prices, further driving its growth and profitability.
Over the years, Nelly.com diversified its product offerings beyond clothing and accessories to include beauty products, lifestyle items, and even its own private label collections. This diversification strategy helped the company attract a broader customer base and capture a larger online retail market share.
Despite its success, Nelly.com remained committed to innovation and continuous improvement. The company invested in cutting-edge technologies, such as augmented reality and virtual try-on tools, to enhance its customers’ online shopping experience to stay ahead of emerging industry trends.
In 2014, Nelly.com was acquired by the Swedish e-commerce group CDON Group (now Qliro Group), which helped accelerate its growth and expansion into new markets. Today, Nelly.com continues to thrive as a prominent online fashion retailer, offering a wide range of products from both established and up-and-coming brands to customers across Europe.
Key takeaways
What can you learn from Nelly.com? First of all, great businesses and ideas do not always require new solutions or even new products. Fashion has been around for a long time before Nelly.com. However, disruptors think outside the box when it comes to customer service and understand that the most important thing in business is understanding what their customers want to buy. Nelly.com is a brilliant example of a business that was centred on serving the customer and basing decisions on customer feedback. Its commitment to innovation and continuous improvement and its ability to foster a strong sense of community among its customers through engagement make it so successful. By constantly involving customers, they gained valuable customer feedback that helped them make better decisions and grow their business.
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