4. The slow march of technology
Apple Newton, 1987 Microsoft Tablet, 2000 Apple iPad, 2010
Presentation: The future of internet retailing, London College of Fashion, June 2011 thinking apart ltd www.thinkingapart.com
7. Low-end
So whats going on in fashion right now?
High-end
High-end
8. Retailers with online/physical
stores see sales rise 22% on 2009
Online/physical growth Part 4: Fashion retailing Sales increase by 6% for stores
with physical locations only
Capgemini index, June 2010)
Future growth will be harder
Easy successes have been won
Expect switching of customer loyalty than new customers
Retailers should focus on maximising revenue online
Internet retail trends 2010, Verdict
9. In 2009, £5.4bn spent online in
2009, 17% increase over 2008.
Online-only retail declined in
favour of stores who offer
multichannel shopping.
Interactive Media
in Retail Group 2010
Multi-channel growth
10. Mistakes continue
Global survey of more than 500 businesses found companies estimate they
are losing the equivalent of 24% of their annual online revenue due to a
bad website experience.
“Reducing customer struggle”, Econsultancy & Tealeaf, June 2011
Presentation: The future of internet retailing, London College of Fashion, June 2011 thinking apart ltd www.thinkingapart.com
11. The future lies in getting four areas right
Discovery Product
Brand Service
Differentiation and innovation will be key
Presentation: The future of internet retailing, London College of Fashion, June 2011 thinking apart ltd www.thinkingapart.com
12. Discovery: reaching out in the real world
Sources of Information Used to
Research Products Before Making a
Purchase According to US Moms*,
Sep 2010 “Several factors hinder teens
from buying online, including
Recommendations from family/friends 62% lack of access to payment
Review of recommendation websites 40% methods like credit cards. But
News and information websites 33% for most teen girls, online
Magazine/articles 31% shopping is simply not social
Company/corporate websites 28%
enough for them to give up
Medical professional 26%
Personal or review blogs 15%
their trips to the mall.”
Facebook 15% Piper Jaffray, “Taking Stock with Teens:
Spring 2011”, April 6, 2011
Mom-focussed social
networking communities 10%
Source: NPD Group, "Social Media Moms: How
Networking impacts Purchase Behaviours", Child's Play
Communications, Dec 13, 2010
Presentation: The future of internet retailing, London College of Fashion, June 2011 thinking apart ltd www.thinkingapart.com
13. Tell-a-friend
65.9% would often use tell-a-friend feature when offered
an incentive
34.0% of consumers would tell-a-friend if just asked to do so
by a website.
Source: lucid marketing, “How use moms share and
spread information: Health Edition 2011”, April 2011
Presentation: The future of internet retailing, London College of Fashion, June 2011 thinking apart ltd www.thinkingapart.com
16. Product: deliver value around it
Feeling towards shopping for clothes by age group, April 2011
70
60
50
40
All
30 16-24
20
10
0
I prefer to try on Clothes sizes lack I buy from 2-3 My size sells out It is easy to buy
clothing before consistency favourite stores more quickly than clothes that fit me
buying others
Source: GMI/Mintel
Presentation: The future of internet retailing, London College of Fashion, June 2011 thinking apart ltd www.thinkingapart.com
23. Brand: protect, grow, nurture
Its new slogan of 'modern,
sexy, cool' didn't resonate.
Instead consumers continued
to see it as a safe stalwart.
Trying to shift away from its
middle-of-the-road appeal to
something more modern and
exciting alienated its core
audience and proved a very
risky move.
Mintel 13 Oct 2010
Presentation: The future of internet retailing, London College of Fashion, June 2011 thinking apart ltd www.thinkingapart.com
24. Value wins
Preferred Product Attributes According to US
Internet Users, by Age, July 2010
18-34 year olds 35+ year olds
Utilitarian traits
Value 54% 67%
Quality 37% 42% “Millennials need
Function 30% 36% ―external validation‖
and value products
Durability 30% 36%
and services that
Ease of use 18% 23% convey their success
to others while
Superficial/image-concious traits rewarding
themselves."
Innovation 12% 8%
Looks 11% 5%
Popularirt 9% 4%
Uniqueness 8% 5%
Prestigious 5% 1%
Luxury 3% 2%
Source: Resonate Networks, "Engaging Generation Y: Insights About Motivations that Drive
Purchase Decisions", Oct 28 2010
Presentation: The future of internet retailing, London College of Fashion, June 2011 thinking apart ltd www.thinkingapart.com
25. Brand authenticity
Presentation: The future of internet retailing, London College of Fashion, June 2011 thinking apart ltd www.thinkingapart.com
26. Future of Internet Retailing
Niche content back in vogue
Presentation: The future of internet retailing, London College of Fashion, June 2011 thinking apart ltd www.thinkingapart.com
27. Designers want to connect with you
Presentation: The future of internet retailing, London College of Fashion, June 2011 thinking apart ltd www.thinkingapart.com
28. Service: major area for improvement
23% of consumers reported hassle of returns puts them off shopping online.
22% of consumers prefer online stores with a reserve and pick-up service
31% prefer to return/exchange items in store that they have bought online,
thus creating a big advantage for multichannel retailers
Under 25s are the most concerned by return difficulties: retailers need to
address their concerns as they are such a major force.
E-Commerce, UK – 2008/2010, Mintel research
Presentation: The future of internet retailing, London College of Fashion, June 2011 thinking apart ltd www.thinkingapart.com
31. Offer flexible delivery times
Presentation: The future of internet retailing, London College of Fashion, June 2011 thinking apart ltd www.thinkingapart.com
32. Easier payments for vendors
Presentation: The future of internet retailing, London College of Fashion, June 2011 thinking apart ltd www.thinkingapart.com
33. The future?
“The best way to predict the future is to invent it.”
Alan Kay, computer scientist
Listen to your consumers but go much further than they expect
34. References and websites
Slide 5: Technology has become incredibly cheap—Shopify www.shopify.com
Slide 6: New mums & teenagers—On new mums, see their new found power—even rejecting Prime Ministerial candidate David
Cameron: http://www.timesonline.co.uk/tol/news/politics/article6924035.ece
On the rise of teenagers using technology in privacy to their parents,
see: http://www.spiked-online.com/index.php/site/article/5166/
Slide 8: Online/physical growth—“Acquiring new customers will become a challenge – maintaining existing customer loyalty
and developing systems to create repeat business are likely to be key features of successful online retailing in the years
ahead.” Internet retail trends 2010, Verdict
Slide 9: Multi-channel growth—See Online retail the real 2009 winner, Michael Conway, On Internet Business
http://www.oninternetbusiness.com/2010/01/online-retail-the-real-2009-winner/
Slide 15: Mobile discovery—Scandit see http://www.iscandit.com/
Slide 19: Virtual shopping—TopShop “European” Shopping & Entertainment Center, Moscow. See Wired:
http://www.wired.com/beyond_the_beyond/2011/05/augmented-reality-kinect-fitting-room-for-topshop-moscow/
Slide 21: Virtual fitting rooms—See Corte Ingles http://eci.virtualtwo.com/
Slide 22: Telling a friend—See Magic Mirror http://www.magicmirror.me/
Slide 23: Brand: protect, grow, nurture—See Guardian http://www.guardian.co.uk/media/2010/oct/12/gap-logo-redesign
Slide 25: Brand authenticity—Solerebels http://solerebelsfootwear.weebly.com/ and Denum Therapy:
http://denimtherapy.com/
Slide 26: Niche content back in vogue—See: Alex and Alexa www.alexandalexa.com
Slide 30: In-store pickup—See FT http://www.ft.com/cms/s/0/0811d9e8-7393-11df-bc73-00144feabdc0.html
Slide 32: Easier payments for vendors—Square www.squareup.com
Presentation: The future of internet retailing, London College of Fashion, June 2011 thinking apart ltd www.thinkingapart.com
35. The end.
Future of internet retailing
Martyn Perks
Twitter: martynperks
mail@thinkingapart.com
www.thinkingapart.com
