Published on March 3, 2014
E-commerce in fashion industry
E-commerce in fashion industry Just 10 years ago many in the retail industry did not believe that consumers would ever take to buying fashion online. How wrong they turned out to be. Not only have retailers sprung up offering fashion items at all price points online, but high street retailers are finding that the percentage of their sales going through their website is increasing year on year. Source: http://mediazone.brighttalk.com/comm/sitedata/c52f1bd66cc19d05628bd8bf27af3ad6/download/9174_Etail%20Report%202011-lores.pdf 2
Example: Apparel & accessories sales in US Online apparel sales continue to capture a greater share of US retail ecommerce sales, as the category. A mix of larger and smaller online product categories will post the highest CAGRs from 2012 to 2017. Best-performing online category apparel and accessories - will register high CAGR (Compound Annual Growth Rate) of 17.2%, according to eMarketer estimates. Source: http://www.emarketer.com/Article/Retail-Ecommerce-Set-Keep-Strong-Pace-Through-2017/1009836 3
Example: Apparel & accessories sales in US "Retailers continue to increase the scale of their ecommerce operations, particularly by investing in online sales platforms that display products and convert shoppers more effectively; apparel sales have benefitted more than any other category. Apparel has become an online success due largely to easy and free returns, innovative visualization tools and the presence of customer reviews.” - Jeffrey Grau, eMarketer principal analyst. Source: http://www.emarketer.com/newsroom/index.php/apparel-drives-retail-ecommerce-sales-growth/ 4
Example: Fashion emerges as best-performing segment of ecommerce in UK The UK online fashion sector has grown 258% in five years, making it the best-performing segment across ecommerce, according to research from IMRG. The fashion category of the IMRG Capgemini e-Retail Sales Index outperformed other categories for four of the five years between January 2009 and December 2013, with sales growing nearly 17% year on year, totalling £91bn in 2013 and accounting for 21% of all online retail. Source: http://www.marketingmagazine.co.uk/article/1231014/fashion-emerges-bestperforming-segment-ecommerce-claims-report 5
Example: Southeast Asia startup investments 2013: It’s all about e-commerce, fashion and women Mobile commerce, in particular, has been a major theme in the tech scene in 2013, and given its initial successes, looks set to dominate headlines again in 2014. But visualizing the data gives a better sense of the scale: Out of the $645 million plowed into internet companies, a massive $593 million, or 92 percent, has something to do with e-commerce. We’ve segmented e-commerce into several categories, including online retail, payments, C2C marketplaces, and flash sales. The majority of e-commerce investments, it would seem, have gone into men’s and women’s fashion, with the latter dominating sales of course. Source: http://www.techinasia.com/southeast-asia-startup-investments-2013-ecommerce-fashion-women/ 6
eCommerce Benchmark for the Fashion Industry The eCommerce Benchmark for the fashion industry is a study, conducted by the eCommerce Foundation. The eCommerce Foundation is a nonprofit organisation whose goal is to help companies improve their e-commerce activities. As more than 70 fashion companies have participated in the eCommerce Benchmark, the Foundation decided to publish a detailed report on how they are performing. Both online fashion pure players and fashion retailers participated in the study. Within the retail fashion industry, participants are either Generalist (18%) or operate in specific segments, such as Women (34%) / Men (13%), Shoes (4%), Body (12%) and finally Jeans (3%). Source: http://magazin.unic.com/en/2012/07/26/ecommerce-benchmark-for-the-fashion-industry/ 7
Where does the traffic come from in fashion? As expected, the majority of traffic comes from search engines (53%). Direct traffic is relatively low (15%); in fact, the average direct traffic for other retail industries is significantly higher (22.3%). It is interesting to note that social and viral media play a much bigger role in fashion (8%) than retail in general (4%). Still, social media delivers less traffic than, for example, ‘old-fashioned’ email marketing as a traffic source (10%). The email open and click through ratios are high in the fashion industry compared with retail in general, and it is not surprising to see that women’s fashion is the segment with the highest open ratio at almost 35%. Source: http://magazin.unic.com/en/2012/07/26/ecommerce-benchmark-for-the-fashion-industry/ 8
Conversion ratios in fashion retail Women’s fashion has by far the lowest conversion ratio (1.85%), while body fashion, as a niche player, has the highest conversion ratio (2.40%). Source: http://magazin.unic.com/en/2012/07/26/ecommerce-benchmark-for-the-fashion-industry/ 9
Platform for your e-store – why Magento? Platforms like Shopify, SquareSpace and Tictail offer off-the-shelf, plug-and-play options for companies new to e-commerce. These services require few technical skills to set up and are extremely simple to use, though they are heavily templated, with little scope for customisation. As for cost, however, most offer simple revenue sharing schemes or low monthly fees. Open source e-commerce platform Magento is another, more flexible option. Many brands have chosen Magento, amongst them Bonobos, Nike and Christian Louboutin. Source: http://www.businessoffashion.com/2013/11/the-basics-part-9-e-commerce.html mytheresa.com – e-store built on Magento 10
High performance and visual inspiration Features of the new site include: Full screen experience Custom campaign modules Look book Customized checkout Flexible landing and content pages Integration with multiple warehouse and ERP systems Access rights management across multiple sites/stores Localized payment and shipping methods Source: http://info.magento.com/rs/magentocommerce/images/Gant1.pdf 11
Online orders increased by 340% three months after launch GANT continues this success by spanning across multiple markets, from the US and Canada to France, the Netherlands, Norway and Germany; including a phased rollout to more than fifteen additional countries. Other notable highlights since the new implementation include: Source: http://info.magento.com/rs/magentoco mmerce/images/Gant1.pdf 290% increase in conversion rate 13% increase in traffic 35% reduction in page load time 50% decrease in hosting costs 12
Why choose Responsive Web Design? More Internet users are now shopping using mobile devices. To accommodate these users, responsive web design become a standard for the eCommerce websites, particularly Magento stores. First of all, you save an immense amount of time and money in the long run, as only one set of code needs to be maintained and updated, where with a dedicated mobile site at least 2 platforms needs to be updated and maintained regularly. Source: http://www.artversion.com/w eb-design/magentocommerce/responsive-webdesign-for-magento-stores// 13
Second, a responsive site will increase the conversions and profitability of your website. By providing the best user experience for all platforms and devices, visitors will be able to find what they’re looking for, view website with ease, and use website without any problems and have consistent user experience across multiple devices. Source: http://www.artversion.com/web-design/magento-commerce/responsive-web-design-formagento-stores//, http://www.businessinsider.com/mobile-retail-and-commerce-trends-2014-1 14
Divante for fashion • • • • • • SOLAR Company is a Polish clothing brand. It has 80 chain boutiques,13 franchise boutiques (e.g. in Lubeck, Gent, Lviv), 7 outlet stores, 120 members of external chain and 25 partners in the neighboring countries. Complex e-commerce implementation Microsoft Navision integration Opening conversion rate 2,21% High average order value 68% purchases made during the first visit 15,9% purchases via SEO after a month from the opening Read more about this implementation on our blog: http://divanteltd.com/blog/complex-e-commerce-implementation-fashion-brand/ 15
Divante Full service e-Commerce Agency Magento / UX / eMarketing http://divanteltd.com
Fashion houses are starting to woo the masses with fashion apps. Photograph: GONZALO FUENTES/REUTERS
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