Digital Fashion: Riprendere il controllo del canale e-Comemrce

Regain the e-Commerce channel

Milan, November 7, 2012

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Listening the voice of the customers on 10 Facebook pages

of fashion brands without e-Commerce

Dear think about an online shop!!! It

would be great

On-line shop is a generous idea!!!

There is only one question coming

to my mind: why Reserved does

not have an e-shop?

(…) I also often shop online, even

though I have the same store in my

town, because a garment is

unavailable

Oh, please hurry up! Most of the

brands already have their online

shops.

I would like an online shop, as e.g. Top

Secret has

Open an online shop, it’s more

convenient to shop on the Internet!

Boo, why it’s not possible to shop

on the Internet?

Is there any chance that in the nearest

future you will open an online shop?

There are several nice products I would

like to buy but that are not available in

my area.


Why an e-commerce platform?

Enjoy the

possibility to have

a complete control

over your channel

strategies, without

the intervention of

an agency!


Clothing & footwear market trend in Europe

Source: Euro monitor, Forrester Research, Fact Finder, Kelkoo, Accenture Analysis , Forbes, Business of Fashion, Accenture Estimation

>Global eCommerce market is

poised for a double digit growth

in the years to come, with the

majority coming from the EU

and the USA








and the USA

>Fashion and luxury is the

second market segment in

European Market








and the USA

>Fashion and luxury is the

second market segment in

European Market

>The clothing & footwear

European Compound Annual

Growth Rate of 11,5%


eCommerce evolution F

un

cti

on

ality

/ C

usto

mer

Valu

e

1st Generation

Experience by Default

[Ad hoc] 5%

2nd Generation

Experience by Intent

[Prioritize & Improve] 35%

3rd Generation

Experience by Design

[Design & Push] 50%

4th Generation

Experience on Demand

[Engage & Co-innovate] < 10%

Fragmented & inconsistent

• Catalog • Shopping cart

• Payments

Home-grown Manual updating Scaling issues Survey experience

Marketing only

Basic

• Search

• Promotions

• Merchandising

• Order status

• Cross sells

• Product-centric

Single-channel

Limited features

Measure experience

Measure benefits

Added features

•Searchandising

•Customer data profiles for

personalized experience

• Targeted e-marketing

•Guided store navigation for

in store search

•Social media

•User generated content

•Web analytics

Customer-centric

Micro-merchandising

Cross-channel

Real time testing

Continuous experience

improvements

Optimized for business

outcomes

Best-in-class

E-Commerce ecosystem assessment by fashion districts


>Internet adoption:

>eComm. adoption:

>Evolution index:

>Internal / SAS:

>Promotion:

>Potential:

Early adoption Average Late adoption

Exhausted Exploitable Exploitable

DM + Led + BA Led + BA (mostly) BA

3,6 3,2 2,7

Multiple Mixed Single

Quick Quick Quick

Source: Forrester Research, Gartner, Forbes, Ovum, Accenture Analysis ,


Fashion & Luxury Channels Evolution Trends

Source: Accenture Trends Observatory


Fashion & Luxury Channels Evolution Trends

Source: Accenture Trends Observatory

Source: Euro monitor, Accenture Analysis ,

> “Give me control and choice”:

the customers love a brand

consistent omni-channel

experience

The most wanted functionality in a fashion brand site






experience



> “Help me, help myself”:

customer support is one of the

most important elements to

decide customer journey in site

and stores





experience



> “Help me, help myself”:

customer support is one of the

most important elements to

decide customer journey in site

and stores

> “Know me everywhere”:

the 21% of customer tent to

purchase recommended

additional products to complete

outfits


Source: Forrester research, Forbes

Most influencing strategies for Fashion e-Commerce market

> Predictions are the more

players come into the market,

the more price competition will

become heavier and discount

erosion will follow








erosion will follow

> The M-Commerce growth will

continue a rapid growth

including couponing, voucher

and shopping comparison








erosion will follow

> The M-Commerce growth will

continue a rapid growth

including couponing, voucher

and shopping comparison

>Most profitable (increase 65-

70% margin) on-line strategy

is the customer reactivation

through direct marketing &

social-crm

Focus on Burberry cloudy period


> 9/11/2012 “Burberry Group

tumbles 17% after profit

warning”* (affecting the overall

fashion segment**) cause by

wholesales trends

Source: The Business of Fashion, The Wall Street Journal*, Market watch**, Klout







wholesales trends

>Burberry is focusing its effort

on social engagement with a

clear strategy that allowed

them to became leader








wholesales trends

>Burberry is focusing its effort

on social engagement with a

clear strategy that allowed

them to became leader

> Futuristic technology meets

heritage at Burberry's new

London flagship, with an

innovative experience that

merge digital and in-store UX


A case history: Luxury brand


> One of the most important

luxury brand needs to

empower the sales channels

>The strategy aims to increase

B2B wholesale channel level of

interactions and relationship

and also to launch a profitable

e-Commerce

>The brand experience

leverages CRM and e-

Commerce strategies across

direct and indirect channels

>Prénatal was a traditional

niche-player in a market growth

of new competitors

>A turn-around strategy aims to

change the collection creation

criteria, to increase and

integrate both the contact and

the sale channels

A case history: Prénatal


>Prénatal was a traditional

niche-player in a market growth

of new competitors

>A turn-around strategy aims to

change the collection creation

criteria, to increase and

integrate both the contact and

the sale channels

>A social-commerce strategy

integrated seamless social,

community, CRM and

e-Commerce

A case history: Prénatal


A case history: New Look


> New Look, one of the UK‟s

most successful „fast fashion‟

retailers, aims to create a

fashion site able to compete

(and win) in the pure-play

market

>A searchandising experience

stand-out the catalogue depth

emphasizing a company asset

>A direct-marketing strategy

empowers the brand presence

through the whole customer

journey

3 steps to regain the e-Commerce channel


3

2

1

Forecast potential New cross-channel market research

methodologies

Define Project scope Integration of services, providers, technology

Business case Optimise investiments, maximize sales

1

2

3

• Evaluation of the strength of your brand to identify

marketing opportunities through data analysis

• Leverage the Internet to define online consumers

potential

• Leverage social media to drive online sales

• Optimize e-mail/personal data collection to promote your

eCommerce platform

• Your potential should be increased, does not necessarily

need to be done internally

• Data Integration is the key to consumer insight

competence often not well developed within the company

third-party solutions

1) Forecast the unexpressed global potential


A B

C D

Exausted Potential

Brand Popularity

eC

om

merc

e

Tra

ditio

nal

Busin

ess b

y c

hannel

>The first step to define the

commercialization spread roadmap is

the estimation of the multichannel

potential by country

1

2

3

1) Forecast the unexpressed global potential


A B

C D

Exausted Potential

Brand Popularity

eC

om

merc

e

Tra

ditio

nal

Busin

ess b

y c

hannel

>The first step to define the

commercialization spread roadmap is

the estimation of the multichannel

potential by country

>To define multichannel potential in all

the countries where brand is currently

operating we need to consider,

normalize and aggregate

inhomogeneous business lever as: > Visitor Factor: Visits, time spent

> Trend Factor: brand trend, SERP, bidding values

> Population Factor: population by country

> Penetration Factor: internet & eCommerce penetration by

country

> Diffusion Factor: direct and wholesale store number

> Commercial Factor: direct and wholesale sales volume

> Activation Factor: business start-up readiness

> Security & Issue Factors: unpredictable factors

Trend factor

1

2

3


2) Maximize sales

BRANDING

INFORMATION

AQUISITION

BRAND

AWARENESS

T1

T2 FIDELIZATION

DIRECT MKTG LED ORGANIC

SEO

COMMUNICATION

CAMPAIGNS

VIRAL/BUZZ

ORDER

NUMBER

Service

Level

AVERAGE TICKET

VALUE (ATV)

AVERAGE TICKET

VALUE

> We can influence the visitor

volume by activating different

acquisition channels focused

on re-activation tactics and

performance strategies

>The most relevant lever to

consider is the conversion rate

that is influenced by a mix of

commercial and UX elements

>The average ticket is also

influenced by the capability of a

brand to enhance the shop-the-

look and outfit experience Source: The internet retail report

CTR

CR

TM

KPI

1

2

3

30 Copyright © 2012 Accenture. All rights reserved.

Catalogue

Mgmt

Creative & Asset Mgmt

Financial Payment

Shopping

Merchandise

Finance & Billing

CRM Content

Web Content Mgmt

Web Social Mgmt

Customer

Inventory Facility Mgmt

Reporting Customer

Service

Web Platform Customer

Care Supply Chain

Fulfilment

Application Mgmt

Licensing Mgmt

Analytics & Reporting

Analytics

Paid Media

Owned Media

Marketing & Sales

Store Integration

Reservation

Product Data

Mgmt

Pricing Mgmt.

Assortment Planning

Benchmark

Collaboration

Photo Mgmt.

Image

Mgmt.

Video Mgmt.

Graphic

Designer

Naming &

Labelling

Mgmt

Store info

mgmt.

Copywriting

Blogs Mgmt.

Community

Mgmt.

Ratings &

Reviews

Social Media

Administration

Translation Service

Promotion Mgmt.

SEO SEM

Affiliation

Mgmt.

Retargeting

Remarketing Commission

Deduplication

email

Marketing

Comparison

Shopping

Gift /Voucher

Mgmt

Loyalty Mgmt

Cross/Up Sell Mgmt.

Clustering

Mgmt.

Segmentation

Mgmt.

Funnel

Optimization

Invoice Mgmt

Reconciliatio

n Mgmt.

Tax Mgmt.

Payment &

Process

Mgmt.

Fraud Mgmt Online Service Product Support

Returns

Mgmt support

Orders Mgmt

support

Stock Mgmt.

3PL contract

Mgmt

Warehousing

Mgmt.

Transportatio

n Mgmt.

Auditing

Service

Sales

Tracking

Alert

Monthly

Reporting

Service

Web

Analytics

Marketing

Analytics

Shopping

Analytics

Fulfilment

Analytics

Returns

Mgmt

Replenishme

nt Mgmt

Administrative Service Support

3PL / Carrier

selection

Collaboration

3) Optimize investments – define project perimeter

1

2

3


Catalogue

Mgmt

Creative & Asset Mgmt

Financial Payment

Shopping

Merchandise

Finance & Billing

CRM Content

Web Content Mgmt

Web Social Mgmt

Customer

Inventory Facility Mgmt

Reporting Customer

Service

Web Platform Customer

Care Supply Chain

Fulfilment

Application Mgmt

Licensing Mgmt

Analytics & Reporting

Analytics

Paid Media

Owned Media

Marketing & Sales

Store Integration

Reservation

Product Data

Mgmt

Pricing Mgmt.

Assortment Planning

Benchmark

Collaboration

Photo Mgmt.

Image

Mgmt.

Video Mgmt.

Graphic

Designer

Naming &

Labelling

Mgmt

Store info

mgmt.

Copywriting

Blogs Mgmt.

Community

Mgmt.

Ratings &

Reviews

Social Media

Administration

Translation Service

Promotion Mgmt.

SEO SEM

Affiliation

Mgmt.

Retargeting

Remarketing Commission

Deduplication

email

Marketing

Comparison

Shopping

Gift /Voucher

Mgmt

Loyalty Mgmt

Cross/Up Sell Mgmt.

Clustering

Mgmt.

Segmentation

Mgmt.

Funnel

Optimization

Invoice Mgmt

Reconciliatio

n Mgmt.

Tax Mgmt.

Payment &

Process

Mgmt.

Fraud Mgmt Online Service Product Support

Returns

Mgmt support

Orders Mgmt

support

Stock Mgmt.

3PL contract

Mgmt

Warehousing

Mgmt.

Transportatio

n Mgmt.

Auditing

Service

Sales

Tracking

Alert

Monthly

Reporting

Service

Web

Analytics

Marketing

Analytics

Shopping

Analytics

Fulfilment

Analytics

Returns

Mgmt

Replenishme

nt Mgmt

Administrative Service Support

3PL / Carrier

selection

Collaboration

3) Optimize investments – how to optimize your investiments:

1

2

3

Business planning


1

2

3

>Define the middle term

strategy and the benefit for the

organization generating sales

on-line and in store

>Forecast the profits and loss,

the break event point and the

overall project profitability

>Define the new scenario

activating a new mix of partner

with vertical skill, services and

structure the new organization


SO WHAT !?!

> 4th e-Commerce Gen that starts from the

customer experience is seamless and omni-

channel

>E-Commerce is strategic for fashion brand to

rethink your model and win in a changing

market

> Exhaust the brand potential by activating and

leveraging the acquisition channel thrusts


Thank you ! [email protected]

Documents

Digital Fashion: Riprendere il controllo del canale e-Comemrce