Keep control of your brand in a fashion omnichannel strategy exhausting Market-place role

Omnichannel fashion
strategy: marketplace
role
To become a leading
Fashion e-commerce
protecting brand.
Milan, 26 June 2013

Copyright © 2013 Accenture All rights reserved. 2
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Fashion market is changing is
changing quickly, unexpectedly,
digitally

Market picture

Copyright © 2012 Accenture. All rights reserved. 7
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
>Fashion and luxury is the
second market segment in
European Market
>The clothing & footwear
European Compound Annual
Growth Rate of 11,5%

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 ,

Luxury and fashion market are evolving even in Italy
Sources: MF Fashion, Italia oggi, Messaggero

E-Commerce evolution
Functionality/CustomerValue
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

Market trends

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
> “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

Most influencing strategies for Fashion e-Commerce
> Predictions are the more
players come into the market,
the more price competition will
become heavier and discount
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-crmSource: Forrester research, Forbes

Luxury and fashion market are evolving
>The customer gives
less importance to the
idea of Brand, if he
would buy clothes,
shoes and accessories.
>The asimetric value
perception is leveraged
by the new business
model.
>The international crisis
is the first reason of this
trend.

The most interesting business-case
of the evolving fashion and luxury
players … and some common issue

Business case

Business-Case: Tiffany e-commerce & social integration

Business-Case: Amazon Fashion

Business-Case: Dunhill in-store experience

Business-Case: Bureberry digitalizing store

Business-Case: Farfetch new fashion marketplace

Business-Case: Superdry on e-bay

Business-Case: Uniqlo go to China using TaoBao/T-Mall

Business-Case: Hointer fully automated store

Business-Case: Celio* showrooming

Business-Case: Nike-Fuel purchasing everywhere

Business-Case: House of Fraser omni-fashion

Business-Case: Nasty Gal a merchandise-experience

Business-Case: Stories.com e-commerce curation

Emerging trends

Business-Case: Google Maps Indoor

Business-Case: In-store Augmented Reality fashion

Business-Case: Google Glasses

Common issues

Business-Case: have we control ?

So what?

So what? Go to market strategies
1
Owned site
2
Full-outsouring
3
Conrolled
market-place
4
Demanded
(marketplace,
flash sales)
Profitability
Brand
protection
Speed to
market
Omni-
channaling
Catalogue
digitalization
Management
effort
Overall impact on P&L: it’ negative it depend it’s positive

So what I need to do to became a
leading player in the evolving
omnichannel fashion market?

2
Forecast potential
New cross-channel market research methodologies
3
Maximize sales
Econometric model for new channel activation
4
Optimize investments
Integration of services, providers, technology
2
3
4Became a leading e-commerce in future market
1
Define strategy
Brand positioning and customer experience by channel
1

SEARCH
Natural Search,
SEO
Paid Search,
SEM
Search
Capability
Landing Page
Optimisation
iMEDIA
Standard
Display Ads
Rich Media
Ads
Broadband
Video
Web TV
WEB SITE
Branded
Sites
Affiliate
Site
Promotional
Site
Usability &
Accessibility
Analytics,
Web Site
Optimisation
PARTNERSHIPS
Content
Syndication
Comparison
Sites,
Shopping
Directories
Sponsorships,
Co-branding
Philanthropic
Cause
Marketing
E-COMMERCE
Direct to
Consumer
Where to Buy
Functionality
Branded
Storefront
Sell Direct on
Third-Party Site
Technical
Platform
MOBILE
Mobile
Browser
Mobile Aps QR Codes, GPS
RFID POS
Text
Messaging
CRM
Loyalty
Platform
Behavioral
Targeting &
Acquisition
Cross-sell
Engine
Retention &
WinBack
Campaigns,
Email,
Reporting
SOCIAL
Online Video Communities,
Answer Forums
Word-of-mouth,
Buzz, Referrals
Wikis, blogs,
Crowd Sourcing
Product
Innovation
Multichannel Customer Journey
DIGITAL CAPABILITIES TO LEVERAGE
OFFLINE
FOUNDATION
AWARENESS
ADVOCACY
PURCHASE
CONSIDERATION
LOYALTY
ONLINE
Identification
of Need
Search for
Solution
Evaluate
Alternatives
Product
Details
Visit to
the store
Purchase
Decision
Visit to
the
brand
website
Compare
Offers
Online
Purchase
Social
Interaction
Online
Registration
Mobile
App
Offline
Purchase
19% 81%Time Spent
1) Define strategy: omnichannel
2
3
4
1
2
3
4
1

1) Define strategy: digital positioning
2
3
4
1
exclusive
accessible
Source: Marci Ikeler – digital strategy for luxury brand
DigitalTV Print In-Sotre Events VIP Events
1
“Because the internet is founded on principles of accessibility and democracy, luxury
brands generally use digital as a way to spread the brand's dream and mythology.
Digital communications can play a valuable and critical role in spreading information about
the brand.”
exclusive
accessible
TV Print In-Sotre Events VIP Events
2
Digital
The role of «digital»
approached with a
standard stragy
The new role of
«digital» approached
with a seamless
luxury stragy
2
3
4
1

2) Forecast the unexpressed global potential
A B
C D
Exausted Potential
Brand Popularity
eCommerceTraditional
Businessbychannel
>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
2
3
4
1

2) Forecast the unexpressed global potential
A B
C D
Exausted Potential
Brand Popularity
eCommerceTraditional
Businessbychannel
>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
2
3
4
1

3) Maximize sales
> 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
Client
Acquisition
Real
time
Bid
Re
target
Display
Affiliation CRM
loyalty
E-mail
Market
palce
Re
market
Key
word
CRM
loyalty
2
3
4
1

> 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
Click
Through
Channeling
Traffic
Turnover
Commercial
Levers
Transactions
Organic Lead
Awareness
Information
Acquisition
Customer
Thrust
User
Experience
Reactivation
Conversion
Phisical
(store)
Digital /
Mobile
3) Maximize sales
2
3
4
1

Post-order
Pre-order
Supply chain
Fullfilment Inventory
Finance & Billing
PaymentFinancial
Analytics & Reporting
ReportingAnalytics
Web
Platform
CRM
Customer Shopping
Marketing & Sales
Paid
Media
Owned
Media
ContentCommercial
Assortment
management
Product
content
Editorial
content
Social
content
Product Data
Mgmt
Pricing
Mgmt.
Assortment
Planning
Benchmark
Collaboratio
n
Photo
Mgmt.
Image
Mgmt.
Description
Mgmt.
Graphic
Designer
Naming &
Labelling
Mgmt
Store info
mgmt.
Copywriting
Blogs Mgmt.
Community
Mgmt.
Ratings &
Reviews
Social Media
Administration
Translation Service
Promotion
Mgmt.
SEOSEM
Affiliation
Mgmt.
Retargeting
Remarketing
Commission
Deduplicatio
n
email
Marketing
Comparison
Shopping
Gift /Voucher
Mgmt
Loyalty
Mgmt
Cross/Up
Sell Mgmt.
Clustering
Mgmt.
Segmentatio
n Mgmt.
Funnel
Optimization
Invoice
Mgmt
Reconciliatio
n Mgmt.
Tax Mgmt.
Payment &
Process
Mgmt.
Fraud Mgmt
Stock Mgmt.
3PL contract
Mgmt
Warehousin
g Mgmt.
Transportati
on Mgmt.
Auditing
Service
Sales
Tracking
Alert
Monthly
Reporting
Service
Web
Analytics
Marketing
Analytics
Shopping
Analytics
Fulfilment
Analytics
Returns
Mgmt
Replenishme
nt Mgmt
3PL / Carrier
selection
Collaboratio
n
Store
integration
Customer
Care
Support
service
Online
Service
Product
Returns
Mgmt
Orders Mgmt
Administrati
ve Service
Facility mgmt
Application
mgmt
Licencing
mgmt
Reservation /
Pick
2
3
4
1
4) Optimize investiment

So what?

So what? … the final takes
> 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
>E-Commerce is not rocket science
>Preserve your brand during full
customer journey

Thank you !
Federico Gasparotto
Digital Marketing Offering Lead
Accenture Interactive
Tel: +39-331-7550490
@: federico.gasparotto@accenture.com
Blog: www.gasparotto.biz
Linkedin: it.linkedin.com/in/federicogasparotto

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