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Future of internet retail
The document discusses trends in internet retailing and fashion. It notes that while technology has advanced rapidly, future growth will be harder to achieve and retailers should focus on maximizing revenue online. It identifies four key areas for retailers - discovery, product, brand, and service. For discovery, it discusses the importance of recommendations, reviews, and social aspects. For product, it discusses sizing, virtual fitting rooms, and delivering value. For brand, it emphasizes protecting the brand identity and authenticity. And for service, it highlights the need to improve areas like returns and delivery to better serve customers. The future will require differentiation, innovation, and getting these four areas right.
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Future of internet retail
- 1. Future of internetretailing Martyn Perks Twitter: martynperks [email protected] www.thinkingapart.com
- 3. Everything appears tobe moving at breakneck speed…
- 4. The slow marchof 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
- 5. Technology has becomeincredibly cheap
- 6. New mums Teenagers
- 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, £5.4bnspent 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 liesin 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 outin 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
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- 16. Product: deliver valuearound 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
- 17. Sizing: Not makingit easy
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- 19. TopShop -- “European”Shopping & Entertainment Center, Moscow Virtual shopping
- 20. TopShop -- “European”Shopping & Entertainment Center, Moscow Even for men!
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- 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 InternetRetailing 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 toconnect with you Presentation: The future of internet retailing, London College of Fashion, June 2011 thinking apart ltd www.thinkingapart.com
- 28. Service: major areafor 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
- 29. Solving the collectionnightmare
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- 31. Offer flexible deliverytimes Presentation: The future of internet retailing, London College of Fashion, June 2011 thinking apart ltd www.thinkingapart.com
- 32. Easier payments forvendors Presentation: The future of internet retailing, London College of Fashion, June 2011 thinking apart ltd www.thinkingapart.com
- 33. The future? “The bestway 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 Slide5: 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 ofinternet retailing Martyn Perks Twitter: martynperks [email protected] www.thinkingapart.com