Embed Size (px)
Citation preview
Meeting the challenge of
new digital consumer
Bill Webb “E-Commerce in the Fashion Sector” Århus University of the Arts London April 2013
Agenda
• The Changing World of Fashion Retail
• The New Digital Consumer
• From Multi-channel to Omni-Channel
• The Future of Fashion Retailing
This presentation is available to you via the
Conference Organisers. Personal details and
contacts are to be found at the end.
E-commerce: <20 year History
Rapid Evolution
• Early Pureplays – “boo hoo”
• Multi-channel – Next, La Redoute
• High Street – H&M, Zara
• Luxury – Burberry, Ralph Lauren
• Discount – Brand Alley, Vente Privé
• New Pureplays – Net à Porter
Where are we now?
As e-Commerce matures, the emphasis is
shifting from experience to efficiency – the
novelty is wearing off
Who Recalls “Motorized Transport”?
The “horseless carriage”
Syndrome
“The New mimics the Old until
it finds a form of its own”
Retail Innovation – It’s the same
• Self- service
• Self assembly
• Non-cash payment
Limitations of Research – we have to
Innovate
“If I had asked my customers they would have wanted a
faster horse” - Henry Ford
“E-Commerce/Multi-Channel”
• The old “Silo” mentality
• Digital natives v. Digital
Immigrants (Prensky)
• Holistic Shopping Journey
• Seamless integration
• “Bricks” needed “Clicks” –
“Clicks” need to think
about the “Bricks”
Macy’s Sets the Example
www.retailexperience.com February 26th, 2013
No More “E-Commerce”
Today’s fashion consumer
just “shops”
We are dealing with the “Always
Connected Generation”
European Smartphone Penetration
Physical v. e-Experience (Source: Dr Alan Treadgold - WRC Berlin, 2011)
Many people value
the store experience,
but want it delivered
in a contemporary
way
Touch, feel, try on................
Bonobos
"We were wrong at the beginning,“ CEO Andy Dunn
said. "In 2007, we started the company, and we
said the whole world is going online only. All we're
going to do is be online."
Since then, the company rolled out their version of
the in-person retail store in several locations. The
stores are focused on service and do not carry
items for sale.
"We think that ecommerce is going to be the
flagship store and possibly as much as half of retail
for any brand," Dunn added. "But what we've
learned recently is that the offline experience of
touching and feeling clothes isn't going away.
People still want to try stuff on, and so for a brand
like ours that's built on fit we want to provide that.“
cnbc March 30th, 2013
Desigual “le Nouveau Concept
Showroom-Boutique” - Spain
www.fashionmag.com February 23rd, 2012
Barcelona, Spain
2012
800 m²
1,200 SKUs
Lifestyle range
Room sets
“Shopping
advisors”
Free delivery
above € 100
How Fashion Shoppers behave (Germany)
Source: KPMG
How Fashion Shoppers behave (UK)
Source: Javelin
“Showrooming” (Laeden 2012, Frankfurt)
Shoppers are now using stores as
“brand spaces” to make their
purchasing process more efficient and
enjoyable
This has recently been of great
concern to store retailers who fear
erosion of their sales
But e-tailers are coming to appreciate
that a physical brand space can help
them gain competitive advantage
1,500 Smartphone owners in USA, UK &
Singapore. March 2013.
Why is showrooming happening?
Our customers are now skilful,
“professional” shoppers
- informed, demanding, time poor, connected,
promiscuous, environmentally aware.........
Prolonged economic recession has
squeezed personal budgets
Buying decisions are more complex
New technology has served to
empower consumers
The purchasing process now takes
across channels
Why are Consumers Doing it?
Lots of research – somewhat
contradictory and mostly American
Mostly to get a better deal
Also to research product information
And to get inspiration.....
Or more choice/better availability
Or to save time
And add convenience
In summary – a better use of
personal resources – increased
personal productivity
Where “Showroomers” Buy
Shoppers’ next actions
Showrooming has become an
important part of integrated
cross-channel shopping
behaviour
It can enhance or detract
from your chances of
completing the sale
The Added-value of In-store Digital
The Total Digital
Experience
Product enhancement
Value enhancement
Enjoyment enhancement
Process enhancement
Source: Webb, 2012
Product Enhancement
Augmented Reality
Body Scanning
Virtual decor, fitting rooms
Holographic catwalks
Live streaming of fashion shows
Extended choice
Gesture Browsing (Kinect)
Customisation
http://link.brightcove.com/services/player/bcpi
d9153862001?bckey=AQ~~,AAAAATR2mTk
~,i1OJdzNgN35XZhWP5leryi1zvLGI5fkZ&bcli
d=0&bctid=1275647328001
http://www.youtube.com/watch?v=L_cYKFdP1_0
Process Enhancement
Cross-Channel purchasing
Mobile & phone payment
Apps for wayfinding etc
Stock availability checks
QR codes supporting
product/brand information
Digital shopping assistants
Interactive product media screens
(Adidas etc)
http://www.youtube.com/watch?v=7uCWRAgN51A&feature=player_detailpage
Enjoyment Enhancement Efficiency + Brand Engagement
Brand values showroom
Digital environment and
graphics
Interactivity
Instant gratification
No need for personal
interaction
Gucci -
Milan
LG Live – Singapore
Hugo Boss – virtual store
Apple
Value Enhancement
Downloadable/instant coupons
Flash sales
Price comparison
Collaborative Group Purchasing
Personal Customer identification and
promotion
C&A Facebook “Like” Mothers’ Day
promotion – Sao Paulo, Brazil
Winner 2012 WRC Retail
Innovations award
On-line Facebook “likes”
uploaded to smart in-store
garment hangers
Use of Social Media – 55,000
extra fans added
Uplift in sales of featured
SKUs and core collection
integration of on-line and
physical promotion
Oasis Flagship – Argyle Street, London
I-pad enabled sales assistants – stock access and payment
Winner, Retail Week “Retail Technology Award” 2012
90 minute “click & collect” facility
£7m eighteen month omni-channel investment programme
Greater productivity and enhanced customer service
Burberry Flagship – Regent Street, London
4,000 m² global flagship
Converted 19th c. theatre
Opened September 2012
7 metre screen
Streamed catwalk shows
In-store events
“Magic mirrors” – RFID
tags on clothes provide
information
I-pad enabled advisors
check stock and take
payment
Customized Trench coats
“Burberry World Live –
Like Walking into our
Website” Christopher Bailey
The Brand Space of the Future
“It is becoming apparent that the
recession is accelerating the rate at
which the Internet is impacting the
retail sector. The traditional retail
model in which stock is held in an
outlet for immediate collection by the
customer is giving way to a hybrid
model that emphasises the store’s role
as a display area and leisure
destination.”
James Roper, CEO IMRG.
Just-style.com
The integrated Fashion Brand Space
Addresses Customers’ real Needs
• Close engagement with the product
• Widest assortment choice
• Best prices
• Exemplary customer service
• Appropriate experience
• Easy collection and returns
New Fashion Business Model for Everyone
• Brand awareness and engagement
• Customer acquisition &CRM
• Greater stock productivity, reduced returns
• Reduced capital costs
• Staff motivation & retention
Jan 2013
Brand Space Options for E-tailers
• Branch store
• Flagship store
• (Hybrid) showroom
• Pop-up store
• Mobile store
• Concession
• C&C Partner
• Virtual Store
• Party Plan
• Event
Some More
These are all
e-tailers!
Agenda for Action
Retailers distinguish between shopping channels – customers mostly
don’t now. How will you give your brand physical expression?
Embrace a truly omni-channel distribution model
Develop your strategy for Showrooming (and surfing) customers – then
plan for the operational requirements to execute it, including fulfilment
Develop store format & design concepts to accommodate Showrooming
Ensure that all your stores are wired for staff and customer connectivity.
plus free WiFi.......
Upgrade the profile, status and rewards of your staff – they should
become true “brand ambassadors”
Train them with new skills: IT, editing, curating, negotiating.........
Ensure full integration of IT systems – web, mobile, inventory control,
payments, social media, CRM/loyalty, fulfilment.....
Create a community around your brand through in-store experiences AND
social/digital/web marketing. Develop personalised promotions
The Store of the Future...... Is both a Window and a Gateway to a brand. Like Dr Who’s Tardis it
is small on the outside but big on the inside. It uses physical
constructs and new digital technology to maximize both efficiency and
experience
…….and Good Luck
Bill Webb
Senior Lecturer - LCF
Scholar of Cambridge University
Marketing Manager/Director - Jaeger, Johnson & Johnson and Storehouse
Director, Management Horizons
Marketing Director - Fitch Retail Design
Director, Conzept International
Retail Consulting Career
Member of Ebeltoft Group (local member:
Retail Institute Scandinavia)
The University of the Arts London
Largest university for design & fashion in Europe
Over 20,000 students from more than 130 countries
Six colleges with individual specialisms
London College of Fashion School of Science and
(retail) Management
Member of the Association of Business Schools
Member of The European Retail Academy
Centres for management consulting and industry
training
Extensive research into fashion and retail sectors
Ebeltoft Group
Ebeltoft Group is a worldwide alliance of retail consultancies with members in numerous mature and emerging retail markets. Responding to our client´s demand and market globalization, we offer pragmatic retail consulting services and conduct global insight research. We are unique in our ability to combine global retail expertise with deep local insight and turning this into innovative and practical solutions.
North America: United States and Canada
Latin America: Brazil and
Mexico
Europe: Denmark, France, Germany, Italy, Netherlands, Portugal,
Romania, Spain, Turkey and United Kingdom. And Switzerland.
Asia Pacific: Australia, China, Singapore
and India
Ebeltoft Group Bill Webb
T: +44 (0)7768 453169
www.ebeltoftgroup.com
