À LA MODE FASHION ECOMMERCE IN 2015
À LA MODE: FASHION ECOMMERCE IN 2015 SIMPLE STRATEGIES TO HELP YOUR BRAND THRIVE
Opportunities in fashion eCommerce are unprecedented. UK online fashion sales alone are expected to reach £19 billion by 2019.1 And the UK is just the tip of the iceberg; fashion eCommerce is booming globally. But grabbing a piece of this action isn’t a given. In an ever-evolving market, there are inevitable challenges for eCommerce fashion retailers, both globally and locally.
YOUR 2015 FASHION ECOMMERCE HOW TO GUIDE THINK GLOBAL. ACT LOCAL. • Learn how to grasp the scale of opportunity for fashion eCommerce globally • Put yourself in the minds of local consumers
BRINGING IN-STORE ONLINE • Bring your consumers from the store online by giving them an authentic omnichannel experience • Learn how interactive and intuitive interfaces can help increase your conversion rates
AVOID THE DISCOUNT TRAP • Don’t feel trapped by the Cyber Week expectations • Learn a wide variety of tricks to encourage online conversion without resorting to discounts
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THINK GLOBAL. ACT LOCAL. Global retailers that fail to maximize online user experiences will lose sales to smaller, more nimble local providers.
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THINK GLOBAL. ACT LOCAL.
À LA MODE: FASHION ECOMMERCE IN 2015
In 2015 it’s easier than ever to sell your products
your audience has never been as broad, or as willing to
around the globe. The Chinese are the most willing to
browse across borders.
shop outside of their country, with 87% using online retailers abroad. 2 This comes as no surprise, with
This growing audience offers remarkable opportunities,
Chinese consumers being renowned for their tastes in
but catering for a global market takes work.
high-end luxury fashion. In fact Asia is soon expected to overtake the U.S. in online sales for the first time.
Before you plunder the marketing budget to attract
The fact that U.S. online apparel sales are forecast to
customers from around the world, it’s vital to scale down
reach $73 billion in 20163 puts the enormity of these
from a global vision and take the needs of consumers in
figures into context.
the local market you’re targeting into account.
This year, more so than ever before, local customers
This doesn’t just cover the local language; customers
will discover and use global sites to make their fashion
have entirely different behaviours in different regions.
purchases. Boosted by improved internet connectivity
You need to plan, prepare and cater your user journey
in developing markets such as Brazil and Russia,
and purchasing processes accordingly.
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THINK GLOBAL. ACT LOCAL.
À LA MODE: FASHION ECOMMERCE IN 2015
KNOW GLOBAL TRENDS To effectively implement a global plan, knowing the distinctions between local marketplaces is essential.
While it’s essential to focus on the local market you’re targeting, a global overview brings much needed perspective. Global consumer behaviours are shaped by, amongst other things, countries’ locations, prevalent ideologies, GDP per capita and technological advancements. Not forgetting the preferred tastes and fashions of any given nation. You’d fully expect to see cultural differences when travelling from New York to Shanghai. Making this transition in the online fashion world yields similar discrepancies. Your local sites need to account for this and adjust accordingly, without losing what it is that attracts buyers in your established markets.
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THINK GLOBAL. ACT LOCAL.
À LA MODE: FASHION ECOMMERCE IN 2015
REGION SPECIFIC MESSAGING
Globally your messaging needs to strike a balance
In China, people are hungry for foreign goods. However,
between maintaining your brand identity while also
60% will still be bought through domestic eCommerce
understanding the distinctions between customers
platforms 4 . While foreign goods are in high demand,
regionally.
consumers still prefer a localised shopping experience.
Achieving this equilibrium enables you to speak
Your brand’s localised messaging needs to take this
to shoppers around the globe, maintaining your
preference into account if you want to become a major
company’s voice and identity but using language and
player in the global market.
messaging which achieves results in each country. Take the Asia Pacific market for example, which is set to eclipse worldwide B2C eCommerce within the next two years.
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THINK GLOBAL. ACT LOCAL.
LOCALLY PREFERRED PAYMENT PROCESSES Facilitate payment internationally, not just domestically. There’s no point having a beautiful site with a smooth user journey if your customer can’t pay. With 92% of consumers dropping off the payment page if preferred payment options aren’t available 5 , knowing the favoured payment method in the region you’re targeting is essential. Accepting different payment methods can be as easy as choosing a different option with your Payment Service Provider and completing this two minute job will undoubtedly increase your conversions.
À LA MODE: FASHION ECOMMERCE IN 2015
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THINK GLOBAL. ACT LOCAL.
À LA MODE: FASHION ECOMMERCE IN 2015
PAYMENT CULTURES DIFFER AROUND THE WORLD
RULES AND REGULATIONS
Credit cards may be globally recognised, but that
Unfortunately it’s not as simple as replicating and
doesn’t
translating your home site around the world. Whether
automatically
make
them
the
favoured
payment method in every part of the world.
you choose to consult an expert or conduct your own research, be sure that any campaigns running across
In the majority of European countries, most payments
multiple countries abide by cross-border rules and
are made by alternative means whether that be via
regulations.
debit card or giropay. Similarly in China alternative payment mechanisms, such as Alipay, make up nearly
For example, certain countries adhere to ‘double opt-in’
half of all transactions made.
email laws - something to bear in mind for campaigns that require users to share their email address. In this case, ignoring local nuances and laws could result in a hefty fine or, in a worst-case scenario, your site could be suspended.
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Ă€ LA MODE: FASHION ECOMMERCE IN 2015
BRINGING IN-STORE ONLINE This year fashion eCommerce will do its utmost to silence the remaining naysayers by transporting a vivid in-store experience online.
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In
BRINGING THE IN-STORE ONLINE
established
eCommerce
markets
À LA MODE: FASHION ECOMMERCE IN 2015
demanding
But, attitudes are changing.
consumers expect an omnichannel experience. As a result the relationship between brick-and-mortar
This shift in thought is led by ‘always on’ millennials, 45%
stores and fashion eCommerce is becoming more fluid.
of whom spend more than an hour a day browsing retailorientated sites.6 This year online fashion retailers can
Fashion consumers’ main complaint with online has
replicate millennials’ more habitual online purchasing
always been hard to argue with: online shopping
amongst the rest of their consumers by bringing
doesn’t let you get hands-on with the physical product.
more elements of the in-store experience online.
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BRINGING THE IN-STORE ONLINE
INTERACTIVE AND INTUITIVE WEBSITES Online engagement rises by nearly 50% when brands post product images online7. Bring your online customers closer to the in-store experience with interactive and intuitive interfaces on your website. Using videos and intuitive images, featuring multiple high definition shots, 360 degree views and zoomable content enables your customers to get closer to your products. For years ASOS have provided an exemplary lesson in how you can give your customers a feel for your products without a brick-and-mortar store.
Ă€ LA MODE: FASHION ECOMMERCE IN 2015
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BRINGING THE IN-STORE ONLINE
À LA MODE: FASHION ECOMMERCE IN 2015
CLICK AND COLLECT YOUR ONLINE BOUTIQUE YOUR ONLINE BOUTIQUE SHOPPING BAG size
Pumps
colour
£96
ADD TO BAG
Skinny Jeans £50
CHECK OUT
Millennials switch between media platforms an average of 27 times per hour... customers will not wait around if retailers don’t provide a seamless service.8
YOUR ONLINE BOUTIQUE
SHIPPING
YOUR ITEM IS ON HIS WAY!
Cross-channel services, such as click and collect are vital if you want to offer your customers the shopping experience they’ve come to expect. Click and collect blurs the line between the high street and online, making it faster, more convenient and cheaper for customers to purchase their products. The service has proved popular and gained real traction in the UK, with 63% of Brits opting to click and collect in the past year. 9
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BRINGING THE IN-STORE ONLINE
À LA MODE: FASHION ECOMMERCE IN 2015
SIMPLIFY YOUR RETURNS Although we’ve talked about ways you can reduce returns, in fashion eCommerce they are inevitable - last year 39% of consumers who bought online returned items.10 Click and collect is thriving due to its convenience and returns are all about making it as simple for your customers as possible. Recent developments in more accurate online fittings point towards less returns in the future. However, for now, a clear, simple and preferably free returns policy is another way to bring the high-street practicality to online fashion. Bare in mind that 74% of shoppers wouldn’t purchase from a site if they had to pay for returns.11
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À LA MODE: FASHION ECOMMERCE IN 2015
AVOIDING THE DISCOUNT TRAP Consumers are starting to see heavy discounting as the norm.
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AVOIDING THE DISCOUNT TRAP
À LA MODE: FASHION ECOMMERCE IN 2015
The seemingly endless stream of major discount events,
‘Demand is now almost solely driven by discounts,
from Cyber Monday to the more traditional Boxing
with shoppers very reluctant to buy goods at full price
Day and January sales in the UK, means customer
in the hope that yet another sale could be just around
behaviours are evolving.
the corner’.13
If your business is scrambling to adapt to these rapid
Brands are already preparing for the next Black Friday
changes, you’re not alone. Indeed Retail Week recently
as huge discount events have seemingly permanently
reported that the enormity of Black Friday in the UK
etched themselves into the retail calendar.
last year ‘blew some retailers off course.’12 To avoid falling into a low-margined discount abyss, Unfortunately for fashion retailers this means today’s
your business must convince customers to break the
switched on customers are just waiting for the next
cycle of sales-led purchases.
round of discounts before buying. So how can you encourage online conversion without discounts?
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AVOIDING THE DISCOUNT TRAP
À LA MODE: FASHION ECOMMERCE IN 2015
SHAPE YOUR TRAFFIC Take control and shape the traffic that visits your site to suit your goals. Don’t feel pressurised into discounting products earlier than initially intended. Instead make it easier for your customers to find existing deals on your site. Segment your traffic and use on-site targeting techniques such as in-page recommendations to direct your customers towards relevant existing discounts and offers. Whether it’s free shipping and returns or products that are already on sale - nudging customers in the direction you want them to go enables you to avoid a cycle of overly-regular discounting.
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AVOIDING THE DISCOUNT TRAP
À LA MODE: FASHION ECOMMERCE IN 2015
STOCK INDICATORS
Nobody likes to miss out.
Your customers will also appreciate the clarity, by providing fair warning you reduce the likelihood they’ll
The principle of scarcity means we’re inclined to
suffer last minute disappointments.
place a higher value on items that are running out. If your stock does run out, leaving your prospect Stock indicators do this job for your website, proving
forlorn, why not get their email and contact them
the popularity of your product while also inspiring
when the item is restocked? This personalized service
urgency in your customers.
will keep customers happy and enable you to make the sale in the future.
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AVOIDING THE DISCOUNT TRAP
SHOUT ABOUT YOUR NEW STOCK Despite buyer behaviour showing favouritism towards discounting, brand new products still hold an allure and higher status than sale products. Limited edition lines can create similar scenes to those that were so heavily publicised on Black Friday. Last year, H&M and Alexander Wang’s collaboration had customers camping outside their Oxford Street store and online shopping fashionistas bashing refresh. Whether it’s on the high street or online, put your new stock where your customers can see it. Make your new stock the main feature of your site. Draw attention to key pieces and complement them with fresh content to convince your customers.
À LA MODE: FASHION ECOMMERCE IN 2015
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AVOIDING THE DISCOUNT TRAP
REASSURE YOUR CUSTOMERS
À LA MODE: FASHION ECOMMERCE IN 2015
Make sure your website proves you’re the real deal. Customers are conditioned to expect to see certain things on your online store, if they don’t, they’re likely to leave fast. Demonstrate both your site and payment processes
are
secure
by
prominently
displaying
appropriate security credentials.
As well as asserting your security credentials, provide reassurance messaging to boost customer trust Examples
of
this
messaging
include
money-back
guarantees, a lengthy return period or free returns. With a minority of consumers still anxious about spending online, particularly expensive items, any additional peace of mind you can offer them increases the likelihood that they’ll convert.
YOUR 2015 FASHION ECOMMERCE CHEAT SHEET 21
À LA MODE: FASHION ECOMMERCE IN 2015
THINK GLOBAL. ACT LOCAL.
BRINGING IN-STORE ONLINE
AVOID THE DISCOUNT TRAP
• Grasp the scale of opportunity
• Give consumers the
• Convince customers to break
for fashion eCommerce globally.
omnichannel experience they
the cycle of sales led purchases.
crave by transporting elements of • Scale down from a global vision
the in-store experience online.
• Encourage online conversion without discounting by shaping
and take the needs of consumers in the local market you’re
• Use interactive and intuitive
traffic, using stock indicators,
targeting into account.
interfaces on your site to help
reassurance messaging and
customers get a better feel for
showcasing new stock.
• Use regional messaging and
your products.
facilitate payment internationally, not just domestically.
• Practicality is key. Offer easy returns and services such as
• Ensure campaigns running
click and collect to improve
across multiple countries adhere
convenience for your customers.
to cross-border rules and regulations.
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ABOUT YIELDIFY
Yieldify believes that marketers want to convert visitors, easily. We provide a full-service solution that lifts revenue for over 1000 global brands and we are vertical agnostic. We are specialists at creating more conversions in the lower funnel using our Exit-Intent Technology. Our advanced analytics tracks and reacts to on-site behaviour, providing marketers with predictive insights into their online customers. Yieldify’s technology simplifies the marketers’ ability to predict and adapt to visitor intent across all devices.
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APPENDIX http://www.mintel.com/press-centre/retail-press-centre/top-of-the-online-shops-online-fashion-clicks-with70-of-brits 1
2
Dyn via http://evigo.com/18781-survey-tips-succeed-global-ecommerce/
3
eMarketer http://www.emarketer.com/newsroom/index.php/apparel-drives-retail-ecommerce-sales-growth/
4
http://www.slideshare.net/gosquared/7-ecommerce-trends-in-2014
5
http://www.mycustomer.com/feature/technology/should-your-brand-capitalise-retail-potential-china/169221
6
https://www.olapic.com/stats/
7
Urban Land Institute via eMarketer http://www.emarketer.com/Article/How-Millennials-Shop-Online/1010031
http://www.theguardian.com/small-business-network/2015/feb/06/how-mobile-ecommerce-changingfashion-industry
8
9 10
Metapack via http://evigo.com/17388-metapack-report-big-demand-better-delivery-choices/ Collectplus via Retail Week 30/01/2014
11
ibid.
12
Nick Bubb, Retail-week.com
Head of retail at KPMG, David McCorquodale http://www.theguardian.com/business/2015/feb/10/ uk-retailers-sales-lift-new-year-resolutions 13