How Cookies Help Online Fashion Industry?

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Before we deep dive into how cookies help in personalization and marketing specifically in online fashion, let us understand what are cookies.

What are Digital Cookies?

Cookies are data files that stores user data and helps browsers/websites to identify, locate, and target users seeking relevant information. (Miyazaki, 2008)

How Does it Help?

Cookies help enhance user experience and provides brands with data source to re-target intent driven users.

Types of Cookies:

There are two types of Cookies-

1.       Magic Cookies- Magic Cookies are small data files that are exchanged between server and websites to keep a track of digital activity, locate relevant users and display user specific content.

2.       HTTP Cookies- HTTP Cookies are similar to Magic Cookies in function, although they are more advanced and can be stored in user's device for better targeting.

Besides the above mentioned types, Cookies are divided into 4 more sub-categories based of data collection and integration techniques. Following is a brief description of sub-divided cookies-

  1. Session Cookies- These cookies store data to memorize online interactions for a short period of time to improve user experience. Websites do not store user data basis interactions, hence cookies or extensions are used to avoid redundant user interactions. Session cookies have proved to be most beneficial to e-commerce industry as it memorizes user shopping behavior.
  2. Persistent Cookies- As the name suggests, such cookies store habitual or persistent user behavior. Persistent cookies are also used to Login details and personal data (Name, Address, email ID, Contact Info etc.) for digital forms.
  3. Third-party Cookies- Also know as Tracking Cookies, they track and roadmap online footprints of users while interacting with websites. The websites then share the data collected with third-parties like vendors, social media portals and e-com giants. The data collected is then used to retarget interested customers via digital/social advertisements.
Below is an overview of the difference between 'FIRST PARTY COOKIES' & 'THIRD PARTY COOKIES'-

How Do Cookies Work?

Data Collection, Storage, & Distribution- Cookies record digital footprints that is linked to you whenever you visit any online portal or search engine. The data can include personal information, log-in details, product preferences that is then saved in the browser. This data is then distributed across online portals and is used to assemble digital activity. (Miyazaki, 2008)



It is similar to online SHOP & PICK.

1.       You select the product & take a ticket ----> Browser collects user data during session visits and user interactions

2.       The store then gets information of your ticket -----> Data packets are stored and distributed to relevant permitted websites

3.       When you visit the store you receive the relevant product immediately -----> Data is used for personalized user experience

How Online Fashion Industry Use Cookies to Reach the Right Audience?

Online Shopping Behavior-

Cookies are collected when users visit an online shopping portal, aggregators, fashion blogs, or fashion influencer posts. Using browsing footprints, fashion retailers can assemble personalized product recommendations that are displayed in Search Engine listings, social media advertisements, etc. (How Google Marketing Platform advertising products and Google Ad Manager use cookies - Search Ads 360 Help, 2021)

Benefits of Cookies in Fashion Marketing & Sales: (Miyazaki, 2008)

·         Helps cluster user personas

·         Personalized product recommendations

·         Notify users of product launch and sales

·         Promote flagship events

·         Initiate sales using in-cart product details

·         Session management for saved/product listings

·         Track previously viewed products

·         Easy online transactions

·         Promote brand loyalty

·         Improve online shopping experience

Things to be aware of:

General Data Protection Regulation (GDPR) Compliance-

Majority of fashion retailers avoid compliance policies while engaging in cookies and third party data sourcing. Due to uncertainty of GDPR regulations with respect to use of browser cookies and personal data many online fashion retailers have taken advantage (Cookies - what do online fashion retailers have to do to comply?(and why your social media targeting may be unlawful) | Lexology, 2021) (Miyazaki, 2008). Although, Google (Turn cookies on or off - Computer - Google Account Help, 2021) has now introduced stringent policies to product personal data stored by cookies. Customers will soon be able to choose what and with whom they want to share personal information/digital footprints.

How Fashion Industry Can Use Cookies and Comply with GDPR? 

·         Clearly inform users of data retrieval

·         Third party sharing of personal data

·         Encourage user consent

·         Provide data security

·         Time-frame of data storage

·         Avoid long-term storage of private data

·         Authentication of payment approvals

Cookies are a good source for targeting potential customers and retargeting current customers in online fashion retail. By complying with GDPR policies and protecting sensitive data fashion retailers can retain customers and improve user base. Follow basic data protection regulations and be rest assured of data collection by cookies!

Be sure to check out our Amazing blogs that will help you stay updated with the trends & boost your clothing business.

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Keywords:

Cookies

Online Data Collection

Http Cookies

Use of Cookies in Fashion Industry

Types of Cookies

Tags:

#onlinecookies #onlinedatacollection #useofcookiesinfashionindustry #cookiesinfashionindustry #httpcookies #gdprforuseofcookies

 

Author: Rachael Sumitra 

 

Publishing Date: 15/06/2021

References-

Advertising, 2021. Cookies and Advertising. [online] Marketingjournal.org. Available at: <https://www.marketingjournal.org/cookies-and-advertising/> [Accessed 18 July 2021].

Cahn, A., Alfeld, S., Barford, P. and Muthukrishnan, S., 2016. An Empirical Study of Web Cookies. Proceedings of the 25th International Conference on World Wide Web,.

Lexology.com. 2021. Cookies - what do online fashion retailers have to do to comply?(and why your social media targeting may be unlawful) | Lexology. [online] Available at: <https://www.lexology.com/library/detail.aspx?g=1a90b841-742d-4bb0-92a2-ac9164e0008c> [Accessed 15 June 2021].

Miyazaki, A., 2008. Online Privacy and the Disclosure of Cookie Use: Effects on Consumer Trust and Anticipated Patronage. Journal of Public Policy & Marketing, 27(1), pp.19-33.

Sipior, J., Ward, B. and Mendoza, R., 2011. Online Privacy Concerns Associated with Cookies, Flash Cookies, and Web Beacons. Journal of Internet Commerce, 10(1), pp.1-16.

Support.google.com. 2021. Turn cookies on or off - Computer - Google Account Help. [online] Available at: <https://support.google.com/accounts/answer/61416/turn-cookies-on-or-off-computer?co=GENIE.Platform%3DDesktop> [Accessed 15 June 2021].

Support.google.com. 2021. How Google Marketing Platform advertising products and Google Ad Manager use cookies - Search Ads 360 Help. [online] Available at: <https://support.google.com/searchads/answer/2839090?hl=en> [Accessed 17 July 2021].

Target Internet. 2021. The Digital Marketing Guide to Web Cookies | Target Internet. [online] Available at: <https://www.targetinternet.com/digital-marketing-guide-to-cookies/> [Accessed 18 July 2021].

www.kaspersky.com. 2021. What are Cookies?. [online] Available at: <https://www.kaspersky.com/resource-center/definitions/cookies> [Accessed 15 June 2021].

Comments

  1. Tanishq NagpalJuly 16, 2021 at 12:52 PM

    It's an insightful blog post, Its interesting to know how digital cookies helps brands to enhance their users experience and retargeting eventually to take profits home.

    Fashion marketers or entrepreneur were enjoying the happy days of leveraging the power of third party cookies to target their shoppers through advertisements.

    But in the recent few years, consumers got concerned about the way companies use the data, long story short its almost time to "Say Goodbye to Cookies"

    Me and other young marketers would like to what future will look like for the brands. I'm sure they won't abandon the personalization because that's the root of the good marketing strategy.

    What I think is advertisers will definitely need to have a better understanding of their consumers as a whole rather than individuals, come up with new and better experiments, and keep data privacy seriously which they should be rather than fearing the change I'm confident we'll come up with advanced ways to advertise without concerning anyone.

    ReplyDelete
  2. Chirag ChughJuly 18, 2021 at 6:05 AM

    Superb, the blog gives complete clarity on Web Cookies. I want to share my knowledge on cookies, accepting cookies will provide you the best website experience, whilst refusing cookies may cause problems with your usage of the site. Consider online purchasing. Cookies allow the site to keep track of all of the products you have added to your shopping basket while you browse. If you blocked cookies in your browser when shopping online, the items in your shopping basket would vanish every time you clicked a new link! Online buying would be almost impossible and surfing the site would be impossible. Cookies are required on some websites.

    ReplyDelete

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