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Top 10 lessons from 10 Years of experience as European e-Commerce Pioneer
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Top 10 Lessons from 10 Years of experience as European e-Commerce Pioneer
Carine Moitier, COO & Co-Founder Expert Consultant in e-Commerce
eTail Europe 2009 - 09.06.09
Leapfrog is a joint research & innovation initiative of the European Textile & Clothing
industry,
led by Euratex, aiming at a technology breakthrough in the
clothing industry & retail
Leapfrog 2005-2009
drives down EU manufacturing costs, increases speed,
launches new product-services like Mass Customization.
35 partners
11 countries 3 years worktimehttp://www.leapfrog-eu.org/
Development of an Innovative Customised Product Configuration ( CPC ) Framework enabling multiple interactions by internal organization actors, and business partners aiming to the collaboration in the development of new products and the configuration of personalized garments by the consumers. Partners from retail & industry involved.
Custom Clothing = The Long Tail of Fashion
Filters & recommandation technology will guide the customerfrom “one-size-fits-all bestsellers clothing” upto the high variety choice in custom clothing.
Source : Chris Anderson – The Long Tail - July 07
Sou
rce:
Pic
ture
of
the
Aut
hor
from
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ddeu
tsch
e Z
eitu
ng
Source : Online Survey on Internet Shopping Habits – Nielsen Jan 08
85% of the world population is online
More than 50% have bought online last month
Fashion is the secondmost popular product segment representing 36%
Fashion has the top increase,From 20% to 36%
Custom clothing: some US market figures
Lands' End's commitment to customers has always been an industry
benchmark and the resulting customer response has been phenomenal. In 2003, custom clothing sales grew 72 % over 2002. About 40 % of all jeans
and chinos sold online are custom made. On average, custom clothing buyers increase their annual spending on both custom and regular clothing by 39 percent. And they're a loyal bunch: The retention rate is 34 percent higher than for other online shoppers.
A Jupiter Research study conducted last November revealed that 51% of people surveyed said they would pay an extra $10 to have a pair of pants custom fitted; 28 percent said they would pay $20; and 18 percent said they would pay $30.
25 % of USA online webshops offer Custom Clothing Ralph Lauren, Tommy Hilfiger, Timberland, Nike, Adidas, Landsend, Jc Penney, Jos a Bank, Rochester Big & Tall, QVC,...
Mass Customization
"Producing goods and services to meet individual customer's needs
with near mass production efficiency." (Tseng/Jiao 2001)
http://www.polo.com
04/10/23 confidential nv Douëlou copyright 08 13
ESPRITESPRIT
http://www.marksandspencer-madetomeasure.com
The Mass Customization Benefits
For the consumer
• product satisfaction : fit & uniqueness
• hedonistic process satisfaction :
- pride of authorship
- peer recognition & emotional factors
• new shopping experience
• new differention possibilities
La Customisation : un nouveau
Who are the customized minded men ?
je trouve difficilement customisation par
défaut
H mode778M€
H satisfait301M€
H équipé470M€
H oublié309M€
H frustré413M€
-2
-1
0
1
2
3
4
-2 -1 0 1 2
je trouve facilementcustomisation pour être mon
propre styliste
ne pas me faire remarquer customisation sur des classiques
oseridées créativescustomisation
sur de la mode
Je trouve difficilement Customisation par défaut
Cœur de cible
Cible n°1
540€ /pers
467€ /pers299€ /pers
351€ /pers
373€ /pers
Cible en mineure
Source : Institut Français de la Mode (IFM) - 2007
Who are the customized minded women ?
je trouve difficilement customisation par
défaut
F accro mode 765M€
F mode596M€F satisfaite
531M€
F contrainte727M€
F équipée460M€
F oubliée484M€
F frustrée841M€
-3
-2
-1
0
1
2
3
4
-2 -1 0 1 2 3
je trouve facilementcustomisation pour être mon
propre styliste
ne pas me faire remarquer customisation sur des classiques
oseridées créativescustomisation
sur de la mode
Je trouve difficilement Customisation par défaut
Cible n°1
Cible n°2
543€ /pers730€ /pers
417€ /pers
351€ /pers572€ /pers
334€ /pers
592€ /pers
Source : Institut Français de la Mode (IFM) - 2007
The Mass Customization Benefits
For the retailer
• value competition instead of price
• reduced planning risk, inscreased flexibility
• new cost strutures
• reduction of inventory, fashion risk
• real customer relationship management
The Mass Customization Benefits
For the retailer
• customer knowledge
• life panel without panel effects
• « lead customer » information
• higher market research efficiency
• using custom operations as learning / pilot fields for upcoming mass products
The Bivolino.com ConceptStory
«If every man is an individual, then how can he be satisfied with products that are not made uniquely for him ? »
Bivolino.com was born in 1998 from a desire to meet individual fashion needs. Strong of our 50 years know how, our vision is to answer all your personal needs and desires in terms of fashion. Thanks to Internet and our revolutionary customizing patented technology, we are able to give you the inspiration for creating your own style.
Starter Award 2004 in The NetherlandsPromotional Product of the Year 2004BeCommerce Silver Award 2006
Shirt second skin
Thanks to Linosoft technology, worldwidepatented, each Bivolino shirt is cut accordingto the exact body shape without using anytape measurement.
Consumer driven integrated manufacturing
Pattern designCAD
MTM licenseSoftware
Made-to-measure
Database sizesMeasurementsWest-Europe
Backofficesoftware
Remote manufactoryCAM
ADMShipment
‘Fashion before fashion’
Bivolino.com offers the latest fashion within 14 days thanks to a full vertically integrated e-business.Each week a new collection is available.
http://bivolino.hyves.nl/
Carine Moitier 2008
Your business powered by BivolinoServices
04/10/23
1. Configure the product in the Webshop with Bivosoft tm
1. Configure the product in the Webshop with Bivosoft tm
2. eCAD/CAM processing of each single customer order and 1/1 patterns with Linosoft tm patent
2. eCAD/CAM processing of each single customer order and 1/1 patterns with Linosoft tm patent
3. Tracking of all production and delivery phase with Bivotrack tm
3. Tracking of all production and delivery phase with Bivotrack tm
4. Manufacturing services
SOME own experieces
Powered by Shirtsdotnet.com
www.wemadebyme.com
Some figures for conclusion
• 75% repeat customers
• 3.8% return of goods
• no discount sales
• + 100% growth for each of the last 3 years
++ TOP 10 Lessons… out of 10 years experience
Lesson #1
THINK BIG,STAR T SMALL &STAY FOCUSED.
Lesson #2
e-COMMERCE SHOULD BE IN THE HEARTH & SOUL OF YOUR COMPANY’s CULTURE & VISION.
Lesson #3
THE e-COMMERCE BUSINESS IS NOT JUST
ANOTHER CHANNEL.
Lesson #4
THE e-COMMERCE BUSINESS IS BUILT ON REPEAT CUSTOMERS.
Customers come…
Customers come back…• on any given day, 75% of purchases from returning customers• repeat customers order> 2.5x in the next 12 months.
Customers come back, order more and more often…• repeat customers have higher average order size• 111,98€ - first time customer in Q108• 143,22€ - returning customers in Q108
Lesson #5
WORD OF MOUTH REALLY WORKS ONLINE.
Consumers are the New Authorities
Then
“Turns out the contaminated wheat gluten that has
sickened and killed so many cats and dogs recently
has ended up in quite a few brand names. I finally
found a complete list of the affected brands here. I
feed my cats --- dry food, and fortunately the dry
food was not on the list. The --- wet is, though. Don't
assume that your brand is safe. Check the list!”
- stynes.blogspot.com, 04/05/07
Now
Lesson #6
CREATE REAL VALUE,DO NOT COMPETE ON PRICE.
Lesson #7
MAKE SURE YOUR INVENTORY WEB SITE IS 100% ACCURATE.
Lesson #8
CENTRALLY LOCATE YOUR DISTRIBUTION.
Lesson #9
CUSTOMER SERVICE IS AN INVESTMENT.
(NOT AN EXPENSE)
What customers first see• 24/7 1-800 number on every page• free fast shipping• free return policy
What customers experience• fast & accurate fulfillment • friendly, helpful « above & beyond » customer service• a personal handwritten complement card
What to do internally• no call times • no sales-based performance goal for reps• 5-week customer service & culture training
Lesson #10
DON’T BE SECRETIVE. DON’T WORRY ABOUT COMPETITORS.
JUST DO IT!
