Monday, 25 October 2010

Web 1 to the future...

Chaffey et al., (2009) Internet Marketing, Prentice Hall. (Page 14)

The Pure-Play Hub! Net-A-Porter's new head office.

ASOS at London Fashion Week

Sunday, 24 October 2010

Time to define

"   Online retailers can come from all the normally accepted retail categories used by the Office for National Statistics.

Pure play retailers – are those that only trade online.  Examples are Amazon, Ocado and They are classified under mail order by the ONS. ASOS and Net-A-Porter for us fashionistas!

Multi-channel retailers are those that trade both online and through stores and/or catalogues as well.
But the classification of multi-channel retailers is more complicated:
  • Catalogue retailers that take orders online continue to be classified under mail order. An example is AVON, primarily a door to door catalogue retailer that has moved to online sales recently.
  • Store based retailers that generate less than half of their sales online (and for most the proportion is under 5%) are classified in their usual sector along with all their online sales. So all Tesco’s sales, whether online or through stores, are classified under food retailers.
Offshore retailers. Online retailers who are based outside the UK, but who sell to customers in the UK, are not monitored by the ONS. Our analysis has to add these back. They include major businesses, such as Amazon eBay and   "

Source: Mintel, 2010 - E-Commerce - UK - February 2010

Online sales up 22% in May

Total online sales climbed 22% in May 2010 to £4.5 billion, or an average of £73 per person, according to the IMRG Capgemini e-Retail Sales Index.

Multichannel retailers saw online sales improve 30% .
  • Sales of clothes online surged 32% in May aided by a boost in sportswear attributed to the World Cup.
Source: Mintel, 2010

Friday, 15 October 2010

Mintel - "Store-based retailers need a multichannel presence"

Almost three quarters use at least one form of home shopping
The finding that three quarters of adults use at least one home shopping channel to select 
or order goods stresses the importance of understanding how shoppers use channels  in 
conjunction with each other. With such high usage penetration levels, no retailer can afford 
to ignore the home shopping option.

Use of catalogues features prominently
Eight in ten home shoppers make reference to a printed catalogue in the process of selecting 
and buying goods, making catalogues an essential component of the multichannel offer. Further
analysis of this finding breaks down the way in which shoppers use each channel and is shown
in the next section of the report.
Nearly six in ten home shoppers use online either to select or to order goods selected through 
another channelCatalogues continue to retain relevance but online is clearly gaining usage 
and attractiveness, largely due to increased access to faster connection speeds that make it 
easier to use online.

TV also gaining ground
Data also confirm the extent of reach of TV shopping among home shoppers. Although TV shopping has the lowest penetration of the three home shopping channels, more widespread access to 
digital TV through the Freeview terrestrial platform is significantly altering usage patterns.
Mintel (2007) 'Multi-channel Retailing - UK - October 2007', accessed 15/10/2010. 

Pop Up Store Phenomenon

App Era

ELLA ALEXANDER 16 September 2010 - Vogue Online

"VOGUE is launching an iPad app - the December issue will be available on iTunes from November. Vogue's editor Alexandra Shulman and creative director Robin Derrick are currently working with Spring Studios and Six Creative to re-imagine the fashion bible for a iPad format.
"To date, digital media consumption has been biased towards a 'lean forward', information-gathering experience," says Albert Read, general manager for Condé Nast. "The arrival of the iPad marks a significant shift for digital towards the 'lean back' environment - at home, on the sofa, and on the move. We have arrived at a point where magazine publishers have before them what they have long dreamt of - an opportunity to transfer the magazine qualities of deep immersion, high resolution images, long form journalism and storytelling to a digital format. Meanwhile, the distribution challenges evaporate and we can reach out to new audiences all over the world."
WIRED, another member of the Condé Nast stable, is also introducing an iPad app, while there are also plans to launch iPhone apps for Brides and GQ, due for release at the end of the year.

"The principal pillars to our strategy are integration, investment, innovation and insider intelligence, with editorial excellence as the foundation stone of our planning," says Nicholas Coleridge, managing director of Condé Nast. "We were at the vanguard of publishing online and have more than 15 years experience in the digital space - it's an area we have consistently invested in, in terms of technology and talent."  "

The Online Market Place

Multi Channel Retailing - A few ideas

'Consumers who make purchases using different distribution channels are referred to as multi-channel shoppers.' (Johnson et al., 2006) 

When a retailer uses multiple channels by which to distribute their products and services, they become a 'Multi-channel' retailer. 

Channels can include:
  • Physical Store - Topshop Store
  • Mobile  - e.g Topshop App

  • Internet - e.g Topshop Website
As Internet use has grown, making up 6 percent of retail purchasing in the USA (Amire, 2000), many retail businesses scrambled to have an online presence, with or without any guidance as to its effectiveness as a channel for their particular businesses.' (Schoenbachler and Gordon, 2002)
  • Catalogues - e.g The Next Directory - purchases can be made by phone or mail.
  • Pop Up Stores - e.g ebay popped up in New York in 2009 for a short time- bearing in mind they do not operate physical stores. It gives retailers the chance to gain public awareness and excitement due to the short time the store is available. It is a fantastic marketing technique that many retailers have used or will probably use in their future. 

Check out for more info. 

  • Door to door selling and home parties    - Avon, The Body Shop at Home, Ann Summers Party

With more channels of distribution, a retailer has more chance of reaching a wider audience, and ultimately selling more products.

Victoria Magrath, 15 October 2010