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The digitization of retail has deeply changed shopping experience, especially for what concerns the apparel business. The consequence is that now the store is everywhere: in the shopper’s pocket, in his house and office or at the mall. With more and more sales shifting online each year, most fashion retailers are facing one of the biggest challenge of the new millennium: how do they satisfy consumers’ expectations of a seamless shopping experience? This work will try to answer to this question. At first it will be analyzed, both qualitative (with a survey) and quantitative (with results analysis), how consumers have changed the way they shop, how they make purchasing decisions and what they expect from fashion retailers. Shoppers are becoming more indifferent about which medium they use to make a purchase. When they purchase online, for example, they expect their orders to be processed straight away, and be shipped to their home as soon as possible, or, if they are shopping in a store, they expect to easily and quickly check for promotions or lower prices in a kiosk, without having to ask to a store employee. All it matters is to have the right product at the right time in the right place. As a consequence, I’m going to investigate best practices and how fashion retailers must find new ways to meet consumers demand regardless of the channel in order to boost sales, by implementing a cross-channel offering, one in which the consumer can move between channels without any resistance.
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HARMONIZATION OF THE DIGITAL AND PHYSICAL SELLING ENVIRONMENTS: CROSS CHANNEL STRATEGIES IN FASHION RETAILING.
UNIVERSITÀ COMMERCIALE LUIGI BOCCONI
2012/2013
Dissertation by: FEDERICO NARDINI
University Number: 1343623
Supervisor: SILVIA VIANELLO
MSc IN ECONOMICS FOR ART, CULTURE, MEDIA AND ENTERTAINMENT
WHAT IS CROSS CHANNEL RETAILING?
Ipsum
LITERATURE REVIEW
MULTI-CHANNEL RETAILING
Consumers can shop across different channels which function separately from one another,
operating in technological and operational silos
CROSS-CHANNEL RETAILING
OMNI-CHANNEL RETAILING
Consumers can shop across channels and perceive these channels as part of the same
brand. The Channels are integrated one-another and the customer experience is
harmonized through them
Consumer does not perceive channels at all, simply a brand. All channels are served by
common set of technology services
fashion retailers are 4th
in terms of cross channel
capabilities
Apparel benefited the
most from cross channel
capabilities
VALUE OF THE CROSS CHANNEL SHOPPERS
LITERATURE REVIEW
Cross channel shoppers buy more often, both in terms of numbers of item purchased and both in terms of spending. They are more valuable to fashion retailers than other kind of shoppers
connected
informed multi-channel
user
expect the brand to know his needs
moves seamlessly through channels
brand loyal
THE APPLICATION FIELD OF THE ANALYSIS IS FASHION RETAILING
Understand how cross channel strategies will develop unique advantages to fashion retailers, understanding which cross-channel elements can influence apparel’s sales
EXPERIMENTAL ANALYSIS
STUDY OBJECTIVE
IN FASHION RETAILING?
According to the literature review fashion retailers benefit
the most from cross channel strategies, even if they are still
behind in terms of implementation of cross
channel capabilities.
WHY CROSS CHANNEL
It’s a hot topic that positively influence sales, loyalty and
brand awareness. It helps to create a dialogue and a deeper relationship with the
consumer, and allows to be flexible to customers’ changing
preferences and needs.
EXPERIMENTAL ANALYSIS
RESEARCH QUESTIONS AND METHODOLOGY
Preliminary Analysis Qualitative Analysis Quantitative Analysis Experiments
ME
TH
OD
OLO
GY
qualitative interviews in order to identify cross
channel elements in fashion retailing
Online and offline survey, in order to
understand fashion shoppers’ buying
behavior
Multiple regression analysis in order to
examine the hypothesized relationships
Cluster analysis in order to classify respondents
into homogenous fashion shoppers’
groups
WHICH ELEMENTS OF CROSS CHANNEL RETAILING HAVE POSITIVE IMPACT ON APPAREL’S SALES?
WHICH TYPES OF CROSS CHANNEL SHOPPERS EXIST IN FASHION RETAILING?
Integrated marketing? Click&Collect&Return? Advanced technology?
Of the twenty hypotheses, five support positive relationships between cross channel elements and increase of sales, while three support negative relationships.
Dependent variable: “Have you spent more in clothes since you started shopping across channels?”
EXPERIMENTAL ANALYSIS
REGRESSION RESULTS
Buy online, same day pick up in store
Buy anywhere, deliver home
Buy online, return in store
Buy online, return via express mail
Buy in a country, return in another
Buy and free delivery
Buy and free return
Buy through mobile
Buy through social media
Targeted recommendations and promotions online
Redemptions of coupon and offers both online and offline
Personalized e-mails based on one’s interests and tastes
Targeted advertising on search engines
Presence of the fashion brand on multiple social media
Mobile friendly websites
Updated and always accessible customer’s dataset
Understanding of customers’ previous purchases (both online and offline)
In store technologies (kiosks, tablets, magic mirrors, etc.)
Payment option through mobile
Animated and digital shop windows
CLICK & COLLECT & RETURN INTEGRATED MARKETING ADVANCED TECHNOLOGY
Ipsum
EXPERIMENTAL ANALYSIS
FASHION SHOPPERS – CLUSTER RESULTS
"I come into the store because it is located in the mall near my workplace/home»
"I use the web to gain information on the clothes, but then I want to touch and try
the clothes I have chosen"
"I enter the store where it happens, I look at the prices and compare them with my smart-phone: I buy where it costs less, on
the internet or through my mobile”
56% of respondents 20% of respondents
Research and buy in store
Touch and try the items and check what else the retailers has in store
Follows the brand online, but doesn’t use mobile apps or in store technologies
24% of respondents
Gain information, compare products and prices online , but prefer to buy in a physical stores
At least 2 channel before the final purchase
Sensitive to promotions, offers and to targeted advertising
Research online or in store, but buys online, or through mobile, tablet and social media
More than 2 channels before the final purchase
Scan barcodes, mobile apps and in-store technologies
The more we understand the customers, their buying behavior, and their interests and needs the more
they can be targeted with advertising, promotions, cross-sells and up-sells
EXPERIMENTAL ANALYSIS
FASHION SHOPPERS – POSITIONING MAP
MANAGERIAL CONCLUSIONS
MANAGERIAL IMPLICATIONS – HARMONIZED CHANNELS
Consumers are not just shifting the buying process to another channel, but they are actually spending
more online with their favorite retailers, the one which can best meet his needs and expectations.
7% of apparel retailing is
done online or via mobile
In 2015 it is expected to grow to 16%
Digital channels will cannibalize the physical
channels?
Thanks to cross channel elements, the brand loyalty to a specific retailer is going to
increase, and for this also the spending with their favorite fashion retailer will.
IN STORE TECHNOLOGIES
Online and physical channels will grow in parallel
MANAGERIAL IMPLICATIONS – THE CONNECTED STORE
80% of respondents prefer to buy in a physical
store
75% of respondents
research online before
buying in a offline store
STORE AS SHOWROOM
Showroom which drives revenues across all channels
(online, in store, mobile, etc…) and augment the
brand experience.
IN STORE TECHNOLOGIES
In store technologies as a support for the connected
costumer, in order to entertain and meet customer
expectations
BE
NE
FIT
S Bigger range of products and
collections (different sizes, colors, etc…)
Elimination of stock problems
TH
RE
AT
S
The consumer can’t have the product immediately
The perfect solution is to associate the sales to a physical shop rather than to a digital channel: this means
that in fashion retailing, all the online channels must converge into the physical one.
CONNECTED FITTING ROOMS
SOLUTION: provide appealing delivery proposition, and click and collect options
MANAGERIAL CONCLUSIONS
Tablets
Kiosks
Magic Mirrors
Virtual Catwalks
Virtual shelves
Animated shop windows
Connected Fitting Rooms
Invisible Technology
MANAGERIAL CONCLUSIONS
MANAGERIAL IMPLICATIONS – FUTURE TRENDS
Digital channels let fashion retailers engage with shoppers in new ways, starting a dialogue that opens the doors to more sales, a greater loyalty and more business opportunities.
M-commerce
Loyalty cards/coupons
Credit-card
Mobile app/QR codes
F/T/G/P - commerce
CRM/Customer service
Find/share information
Targeted advertising
Personalized e-mails
Integration with socials
Optimize experience
Re-targeting
Focus on keywords
in line interests & needs
Attract target audience
Re-target
Mobile
Social
Newsletter
Display adv
MANAGERIAL CONCLUSIONS
ADVICES FOR FASHION RETAILERS
BE CUSTOMER ORIENTED
CUSTOMIZE CROSS-CHANNEL
STRATEGIES
SHOPPERS ARE READY, AND COMPANIES?
![[Infographic] Proven Sales Growth Strategies for Fashion Retailers](https://img.dokumen.tips/doc/110x75/58ce9d481a28abb26e8b46e5/infographic-proven-sales-growth-strategies-for-fashion-retailers.jpg)
