Main Takeaways: -Fashion Digital Market: -Digital fashion consumers -What problems tech could solve? -Product design for fashion -Trends for fashion product development:

1. www.productschool.com
Amaze and Profit in a Billion-Dollar Market
by Farfetch Sr PM

2. How to amaze and profit in
a billion dollar market
by Maria Fernanda Napole

3. Who am I?
Hi! I am Maria Fernanda Napole :)
Passionate about innovation and people, tech
entrepreneur for over 20 years.
I have already participated in the construction of
start-ups around the world and also of large
multinational corporations.
I am absolutely “people centric”, a great supporter of
diversity and equity.
#WomanInProduct #WomanInTech #WomanInBusiness

4. 1.Fashion Digital Market
2.Digital Fashion Consumers
3.Problems could tech solve
4.Trends for fashion product
development
Agenda

5. “The future of commerce it’s global now. As a retailer, you need to
stand out. You need to move fast, you have to be customer
service-focused. You need to try and stand out in the crowd and
offer the customer the best experience you can.”
Charlotta Forslov
Online Manager, Honey Birdette

6. Fashion Digital Market
● Expected revenue in 2021: US$ 759,5 billion.
● Revenue increase 15% from March 20 to March 21.
● In just eight months of 2020, e-commerce's share in
global fashion retail went from 16% to 29%.
● At United States, it should reach 34% by the end of
2021.
Fashion is the most representative
sector in online shopping.

7. Over the next four years, online sales of apparel and
accessories are expected to reach the
US$ 1 trillion mark.

8. Top 10 largest e-commerce markets in the world
● China: $672 billion
● USA: $340 billion
● United Kingdom: $99 billion
● Japan: $79 billion
● Germany: $73 billion
● France: $43 billion
● South Korea: $37 billion
● Canada: $30 billion
● Russia: $20 billion
● Brazil: $19 billion
“South Korea taking the cake in
fashion (77%), Germany (76%), China
and India (68%), UK (67%).”
Nielsen’s Global Connected Commerce
The most lucrative industries by country

9. “With consumers increasingly relying on online shopping — it is
estimated that 95% of purchases will be made online by 2040.”
Nasdaq
Online Shopping and E-Commerce Statistics

10. Digital Fashion Consumers
Millennials and Gen Xers spend 50% more time shopping online than their older counterparts: 6 hours X 4 hours.
* Millennials: from 80's to 2000. Gen Xers: from 60's to 80's.
Millennials (67%) and
Gen Xers (56%) are the
biggest online fashion
shoppers.*

11. Digital Shoppers :: Behaviour
● Men spending 28% more than women
shopping online.
● 43% making purchases while in bed
● 23% at the office
● 20% from the bathroom or while in the car.
● 10% made purchase drunk
○ Men: 14% reporting to have done so,
○ Women: 6% of woman reported doing so.
No surprise that...
- 42% have made a
purchase that they
regretted
- 21% have accidentally
bought something they
didn’t want.

12. Digital Shoppers :: Payment
- 57% of online shoppers having made a
purchase from an overseas retailer.
- The preferred payment method varies
around the world.
- 53% Credit cards
- 43% digital payment systems
- 38% Debit cards
- cash-on-delivery is the go-to method
for Eastern Europe, Africa, and the
Middle East.
- the most preferred method
in China and Western
Europe
The most preferred method in
China and Western Europe.

13. Digital Shoppers :: Content
- 73% of potential customer are more likely to
make a purchase if they can watch a video
explaining a product or service beforehand
- 46% of consumers want product
comparisons from ecommerce sites
- 42% of customers want more testimonials
- 69% of online shoppers want more reviews
- 77% of customers read product reviews
before making a purchase.

14. Digital Shoppers :: Social Media
- 74% of consumers rely on their social
networks to make purchasing decisions.
- 56% of users that follow brands on social
media do so to view products.
- In emerging markets, such as Southeast
Asia, social shopping accounts for 30% of
all online sales.
- Mobile shoppers who read product
reviews on social media channels show
conversion rates of up to 133%,
The average CR of
an e-commerce is
2,5% in a global
metric.

15. Digital Shoppers :: CX
- 64% of customers find customer experience
more important than price.
- 33% of Americans say they would consider
switching companies after a poor customer
service.
- An inconvenient return policy deters 80%
of shoppers
The key to good
customer service is
making everything as
easy as possible for
people.

16. Digital Shoppers :: UX
- 74% of people are likely to switch brands if
they find the purchasing process too
complicated.
- 57% of customers will abandon your site if
they have to wait 3 seconds or longer for a
page to load.
- 60% of customers will leave your site if
they can’t find what they were looking for
in the first place.
- 52% of people say they’re less likely to
re-engage with a brand when they’ve had
a bad mobile experience.
About 70% of shopping
carts are abandoned. This
results in about an $18
billion loss in revenue per
year.

17. Product Culture
Problems that tech can solve

18. Problem X Solution :: Inventory
Use data analysis to offer products
more suited to the taste of your
customers, simplify the assortment
by reducing the quantity of SKUs
and recalibrate the volume and price
equation to increase the margin and
recover profitability.
The requirement to offer a wide variety
of products to consumers has led the
fashion retailer to sell in recent years,
on average, only 60% of the
products in stock at full price. The
remaining 40% received stimulating
discounts that eroded the
profitability of the business.
The Problem The Solution

19. Problem X Solution :: Offline stores
Use data analysis to calculate the
return provided by each space,
based not only on sales, but also on
the ability to operate as a place to
deliver products purchased online,
engage customers and provide other
beauty-related services.
The BoF and McKinsey study shows
that 37% of fashion executives
worldwide intend to close more than
10% of their stores by the end of
2021.
The Problem The Solution

20. Trend :: Personalization
● Personalization can help increase a
business profit by 15%.
● 75% of customers are most likely to buy
from a retailer that recognizes them by
name and recommends products based
on previous purchases.
● After implementing personalization, 93%
of companies see a rise in conversion
rates.

21. Trend :: Non linear journey
Internet is non-linear, but the West has built
linear journeys of discovery and purchase that
have been maintained for more than 2 decades
in e-commerce:
home > catalog > product page > cart >
checkout > post sales
The East has been deconstructing this journey
and shows a strong trend towards the
consolidation of social commerce, live
streaming, and different non-linear journeys of
product discovery.

22. Catalog Evolution :: Sears 1920 X ASOS 2021

23. Trend :: Positive Impact
● 66% would stop buying or significantly reduce
the volume of purchases from brands that
mistreat their employees or suppliers.
● 55% expect companies to take care of their
employees' health in times of crisis.
● On-demand production, environmentally
friendly production processes and reverse
logistics for recycling are hot topics.
○ About 12% of the textile fibers used in
the clothing manufacturing process are
discarded at the factory,
○ 25% of the items remain without a
buyer
○ only 1% of the products are recycled,
which increases waste tremendously in
the world. fashion.

24. Trend :: D2C
- Direct contact between customer and brand
- Lean catalog focused on Product Hero
- Deep understanding of customer needs
- Strong Purpose
- High margin (no intermediary)
- Healthy mix of paid and organic social
media, influencer marketing, all anchored in
unifying its community.

25. To keep studying ;)
https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion

26. Thank you!
Maria Fernanda Napole
maria.fernanda.napole@gmail.com

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