à la mode - Fashion Ecommerce in 2015

FASHION ECOMMERCEIN 2015

À LA MODE

Opportunities in fashion eCommerce are unprecedented.

UK online fashion sales alone are expected to reach £19 billion by 2019.1

And the UK is just the tip of the iceberg; fashion eCommerce is booming globally.

But grabbing a piece of this action isn’t a given. In an ever-evolving market, there are inevitable challenges for eCommerce fashion retailers, both globally and locally.

À LA MODE: FASHION ECOMMERCE IN 2015 SIMPLE STRATEGIES TO HELP YOUR BRAND THRIVE

YOUR 2015 FASHIONECOMMERCE HOW TO GUIDE

THINK GLOBAL. ACT LOCAL.• Learn how to grasp the scale of opportunity for fashion eCommerce globally• Put yourself in the minds of local consumers

BRINGING IN-STORE ONLINE• Bring your consumers from the store online by giving them an authentic omnichannel experience • Learn how interactive and intuitive interfaces can help increase your conversion rates

AVOID THE DISCOUNT TRAP• Don’t feel trapped by the Cyber Week expectations• Learn a wide variety of tricks to encourage online conversion without resorting to discounts

4 À LA MODE: FASHION ECOMMERCE IN 2015

THINK GLOBAL. ACT LOCAL.

Global retailers that fail to maximize online user experiences will lose sales to smaller, more nimble local providers.


your audience has never been as broad, or as willing to browse across borders.

This growing audience offers remarkable opportunities, but catering for a global market takes work.

Before you plunder the marketing budget to attract customers from around the world, it’s vital to scale down from a global vision and take the needs of consumers in the local market you’re targeting into account.

This doesn’t just cover the local language; customers have entirely different behaviours in different regions. You need to plan, prepare and cater your user journey and purchasing processes accordingly.

In 2015 it’s easier than ever to sell your products around the globe. The Chinese are the most willing to shop outside of their country, with 87% using online retailers abroad.2 This comes as no surprise, with Chinese consumers being renowned for their tastes in high-end luxury fashion. In fact Asia is soon expected to overtake the U.S. in online sales for the first time. The fact that U.S. online apparel sales are forecast to reach $73 billion in 20163 puts the enormity of these figures into context.

This year, more so than ever before, local customers will discover and use global sites to make their fashion purchases. Boosted by improved internet connectivity in developing markets such as Brazil and Russia,



While it’s essential to focus on the local market you’re targeting, a global overview brings much needed perspective.

Global consumer behaviours are shaped by, amongst other things, countries’ locations, prevalent ideologies, GDP per capita and technological advancements. Not forgetting the preferred tastes and fashions of any given nation.

You’d fully expect to see cultural differences when travelling from New York to Shanghai. Making this transition in the online fashion world yields similar discrepancies. Your local sites need to account for this and adjust accordingly, without losing what it is that attracts buyers in your established markets.


KNOW GLOBAL TRENDS

To effectively implement a global plan, knowing the distinctions between local marketplaces is essential.

7 À LA MODE: FASHION ECOMMERCE IN 2015 THINK GLOBAL. ACT LOCAL.

REGION SPECIFIC MESSAGING

Globally your messaging needs to strike a balance between maintaining your brand identity while also understanding the distinctions between customers regionally.

Achieving this equilibrium enables you to speak to shoppers around the globe, maintaining your company’s voice and identity but using language and messaging which achieves results in each country.

Take the Asia Pacific market for example, which is set to eclipse worldwide B2C eCommerce within the next two years.

In China, people are hungry for foreign goods. However, 60% will still be bought through domestic eCommerce platforms4. While foreign goods are in high demand, consumers still prefer a localised shopping experience.

Your brand’s localised messaging needs to take this preference into account if you want to become a major player in the global market.


There’s no point having a beautiful site with a smooth user journey if your customer can’t pay.

With 92% of consumers dropping off the payment page if preferred payment options aren’t available5, knowing the favoured payment method in the region you’re targeting is essential.

Accepting different payment methods can be as easy as choosing a different option with your Payment Service Provider and completing this two minute job will undoubtedly increase your conversions.

LOCALLY PREFERRED PAYMENT PROCESSESFacilitate payment internationally, not just domestically.



Credit cards may be globally recognised, but that doesn’t automatically make them the favoured payment method in every part of the world.

In the majority of European countries, most payments are made by alternative means whether that be via debit card or giropay. Similarly in China alternative payment mechanisms, such as Alipay, make up nearly half of all transactions made.

PAYMENT CULTURES DIFFER AROUNDTHE WORLD

Unfortunately it’s not as simple as replicating and translating your home site around the world. Whether you choose to consult an expert or conduct your own research, be sure that any campaigns running across multiple countries abide by cross-border rules and regulations.

For example, certain countries adhere to ‘double opt-in’ email laws - something to bear in mind for campaigns that require users to share their email address.

In this case, ignoring local nuances and laws could result in a hefty fine or, in a worst-case scenario, your site could be suspended.

RULES AND REGULATIONS



BRINGINGIN-STORE ONLINE

This year fashion eCommerce will do its utmost to silence the remaining naysayers by transporting a vivid in-store experience online.


In established eCommerce markets demanding consumers expect an omnichannel experience. As a result the relationship between brick-and-mortar stores and fashion eCommerce is becoming more fluid.

Fashion consumers’ main complaint with online has always been hard to argue with: online shopping doesn’t let you get hands-on with the physical product.

BRINGING THE IN-STORE ONLINE

But, attitudes are changing. This shift in thought is led by ‘always on’ millennials, 45% of whom spend more than an hour a day browsing retail-orientated sites.6 This year online fashion retailers can replicate millennials’ more habitual online purchasing amongst the rest of their consumers by bringing more elements of the in-store experience online.

12 À LA MODE: FASHION ECOMMERCE IN 2015 BRINGING THE IN-STORE ONLINE

Online engagement rises by nearly 50% when brands post product images online7.

Bring your online customers closer to the in-store experience with interactive and intuitive interfaces on your website.

Using videos and intuitive images, featuring multiple high definition shots, 360 degree views and zoomable content enables your customers to get closer to your products. For years ASOS have provided an exemplary lesson in how you can give your customers a feel for your products without a brick-and-mortar store.

INTERACTIVE AND INTUITIVE WEBSITES


CLICK AND COLLECT

BRINGING THE IN-STORE ONLINE

Cross-channel services, such as click and collect are vital if you want to offer your customers the shopping experience they’ve come to expect.

Click and collect blurs the line between the high street and online, making it faster, more convenient and cheaper for customers to purchase their products. The service has proved popular and gained real traction in the UK, with 63% of Brits opting to click and collect in the past year.9

Millennials switch between media platforms an average of 27 times per hour... customers will not wait around if retailers don’t provide a seamless service.8

ADD TO BAG

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YOUR ONLINE BOUTIQUE

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Skinny Jeans£50

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YOUR ONLINE BOUTIQUESHOPPING BAG

14 À LA MODE: FASHION ECOMMERCE IN 2015 BRINGING THE IN-STORE ONLINE

SIMPLIFYYOUR RETURNS

Although we’ve talked about ways you can reduce returns, in fashion eCommerce they are inevitable - last year 39% of consumers who bought online returned items.10

Click and collect is thriving due to its convenience and returns are all about making it as simple for your customers as possible.

Recent developments in more accurate online fittings point towards less returns in the future. However, for now, a clear, simple and preferably free returns policy is another way to bring the high-street practicality to online fashion. Bare in mind that 74% of shoppers wouldn’t purchase from a site if they had to pay for returns.11


AVOIDING THE DISCOUNT TRAP

Consumers are starting to see heavy discounting as the norm.

16 À LA MODE: FASHION ECOMMERCE IN 2015 AVOIDING THE DISCOUNT TRAP

The seemingly endless stream of major discount events, from Cyber Monday to the more traditional Boxing Day and January sales in the UK, means customer behaviours are evolving.

If your business is scrambling to adapt to these rapid changes, you’re not alone. Indeed Retail Week recently reported that the enormity of Black Friday in the UK last year ‘blew some retailers off course.’12

Unfortunately for fashion retailers this means today’s switched on customers are just waiting for the next round of discounts before buying.

‘Demand is now almost solely driven by discounts, with shoppers very reluctant to buy goods at full price in the hope that yet another sale could be just around the corner’.13

Brands are already preparing for the next Black Friday as huge discount events have seemingly permanently etched themselves into the retail calendar.

To avoid falling into a low-margined discount abyss, your business must convince customers to break the cycle of sales-led purchases.

So how can you encourage online conversion without discounts?


Don’t feel pressurised into discounting products earlier than initially intended. Instead make it easier for your customers to find existing deals on your site.

Segment your traffic and use on-site targeting techniques such as in-page recommendations to direct your customers towards relevant existing discounts and offers. Whether it’s free shipping and returns or products that are already on sale - nudging customers in the direction you want them to go enables you to avoid a cycle of overly-regular discounting.

SHAPE YOUR TRAFFIC

Take control and shape the traffic that visits your site to suit your goals.



Nobody likes to miss out.

The principle of scarcity means we’re inclined to place a higher value on items that are running out.

Stock indicators do this job for your website, proving the popularity of your product while also inspiring urgency in your customers.

STOCKINDICATORS


Your customers will also appreciate the clarity, by providing fair warning you reduce the likelihood they’ll suffer last minute disappointments.

If your stock does run out, leaving your prospect forlorn, why not get their email and contact them when the item is restocked? This personalized service will keep customers happy and enable you to make the sale in the future.


Despite buyer behaviour showing favouritism towards discounting, brand new products still hold an allure and higher status than sale products.

Limited edition lines can create similar scenes to those that were so heavily publicised on Black Friday. Last year, H&M and Alexander Wang’s collaboration had customers camping outside their Oxford Street store and online shopping fashionistas bashing refresh.

Whether it’s on the high street or online, put your new stock where your customers can see it. Make your new stock the main feature of your site. Draw attention to key pieces and complement them with fresh content to convince your customers.

SHOUT ABOUTYOUR NEW STOCK



Make sure your website proves you’re the real deal.

Customers are conditioned to expect to see certain things on your online store, if they don’t, they’re likely to leave fast. Demonstrate both your site and payment processes are secure by prominently displaying appropriate security credentials.

REASSURE YOUR CUSTOMERS


As well as asserting your security credentials, provide reassurance messaging to boost customer trust

Examples of this messaging include money-back guarantees, a lengthy return period or free returns.

With a minority of consumers still anxious about spending online, particularly expensive items, any additional peace of mind you can offer them increases the likelihood that they’ll convert.



• Grasp the scale of opportunity for fashion eCommerce globally.

• Scale down from a global vision and take the needs of consumers in the local market you’re targeting into account.

• Use regional messaging and facilitate payment internationally, not just domestically.

• Ensure campaigns running across multiple countries adhere to cross-border rules and regulations.

BRINGING IN-STORE ONLINE

• Give consumers the omnichannel experience they crave by transporting elements of the in-store experience online.

• Use interactive and intuitive interfaces on your site to help customers get a better feel for your products.

• Practicality is key. Offer easy returns and services such as click and collect to improve convenience for your customers.

AVOID THE DISCOUNT TRAP

• Convince customers to break the cycle of sales led purchases.

• Encourage online conversion without discounting by shaping traffic, using stock indicators, reassurance messaging and showcasing new stock.

YOUR 2015 FASHION ECOMMERCE CHEAT SHEET

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ABOUT YIELDIFY

Yieldify believes that marketers want to convert visitors, easily.

We provide a full-service solution that lifts revenue for over 1000 global brands and we are vertical agnostic. We are specialists at creating more conversions in the lower funnel using our Exit-Intent Technology. Our advanced analytics tracks and reacts to on-site behaviour, providing marketers with predictive insights into their online customers.

Yieldify’s technology simplifies the marketers’ ability to predict and adapt to visitor intent across all devices.

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1 http://www.mintel.com/press-centre/retail-press-centre/top-of-the-online-shops-online-fashion-clicks-with-70-of-brits

2 Dyn via http://evigo.com/18781-survey-tips-succeed-global-ecommerce/

3 eMarketer http://www.emarketer.com/newsroom/index.php/apparel-drives-retail-ecommerce-sales-growth/

4 http://www.slideshare.net/gosquared/7-ecommerce-trends-in-2014

5 http://www.mycustomer.com/feature/technology/should-your-brand-capitalise-retail-potential-china/169221

6 https://www.olapic.com/stats/

7 Urban Land Institute via eMarketer http://www.emarketer.com/Article/How-Millennials-Shop-Online/1010031

8 http://www.theguardian.com/small-business-network/2015/feb/06/how-mobile-ecommerce-changing-fashion-industry

9 Metapack via http://evigo.com/17388-metapack-report-big-demand-better-delivery-choices/

10 Collectplus via Retail Week 30/01/2014

11 ibid.

12 Nick Bubb, Retail-week.com

13 Head of retail at KPMG, David McCorquodale http://www.theguardian.com/business/2015/feb/10/uk-retailers-sales-lift-new-year-resolutions

APPENDIX

Documents

à la mode - Fashion Ecommerce in 2015