Continuing to expand

" New technology will expand the opportunities for online retail in 2010, but e-tailers mustn’t forget the basics "

" Online retailers had a busy year in 2009, with a number of major sites launched or relaunched throughout the year, including those from the likes of premium womenswear chain Whistles, Tesco’s clothing site and designer Alexander McQueen. Etail has also got much more sophisticated, with etailers and retailers such as My-Wardrobe and Oasis introducing innovations such as catwalk videos and the first fashion retail iPhone app. So what’s in store for 2010?

The majority of commentators agree that 2010 will be tough in general for the fashion sector. But for online, many see the year as more positive. 

Continued growth Rosie Atallah, marketing manager at ecommerce solutions provider Docdata points out that with some of the major fashion retailers such as H&M and Zara finally announcing plans to launch transactional sites in the UK, “the feeling is that next year will continue to see online fashion sales growth recover quicker than their bricks-and-mortar counterparts due to etailer’s ability to adapt effectively to changing consumer demands, along with restored shopper confidence”.

The impact of using social media in marketing strategies was a big talking point in 2009, and looks set to develop further in 2010. Nadia Castellani, ecommerce manager at value retailer Select, says: “Social networking will be an important marketing tool for us in 2010 to engage and connect with our customers.”

Both Facebook and Twitter are now regularly used by fashion retailers and are a great way to interact with customers, but traditional marketing tools can still be beneficial.

2010 also looks set to be the year when imagery and rich content make an even greater impact across the etail arena. Fashion retailers are looking to stand out in what has fast become an extremely busy and competitive market. Sarah Curran, founder of pure-play etailer My-Wardrobe, agrees: “Video content and live streaming are likely to have an even bigger focus in 2010. Last season, Burberry and Twenty8Twelve streamed their catwalk shows live online and provided bloggers with their own dedicated areas to file their reports.”

Basic instinct

However, Kristine Kirby, home shopping director at lifestyle chain Fat Face, points out that it’s still about getting the basics right. She says UK customers are becoming more demanding where service is concerned, and advises retailers to keep this as their priority and work to enhance their customer service. “Improved or enhanced shipping offerings, tracking of parcels, more free returns, call centre support, customer reviews - anything that improves the information available to the customer and makes it easier for them to receive product and return it.”

So whether it’s style, service or innovation, 2010 looks certain to be another exciting and innovative year for etail. "

Stocker, 2010.

Stocker, K (2010) Drapers (Online) 'Web will extend its reach', 9 January 2010 available at http://www.drapersonline.com/ecommerce/webwatch/web-will-extend-its-reach/5009377.article

Pull and Bear - Definitely getting it right.

You may not have heard of the Inditex brand, Pull and Bear. Inditex's most famous and popular brand, Zara, has found great success in the UK with their fast fashion offerings and gorgeous womens wear. Recently, Inditex decided to open another of their acclaimed stores, Pull and Bear in the centre of London on Oxford Street ( opposite House of Fraser and John Lewis in case you were wondering). It is one of four UK stores, and by the looks of things, is setting its mark on the English high street. I visit Pull and Bear every time I nip to London, and it never fails to satisfy; I always leave holding one of their cute little bags. Hopefully Inditex will open a Pull and Bear in Manchester centre very soon, but until that time, we have their fantastic web site to lust over, and it really is something to shout about.

Web 2.0, eat your heart out...

The Pull and Bear website...

Feast your eyes on this piece of beautiful design. Navigation buttons run along the top of the page, (Collections, Events, Blogs, Follow Us, Stores, Customer Service, Company) large image links run along the bottom of the site, all in black and white until a mouse is ran over the image, and the image becomes colour. And along the centre is a banner of photography, beautifully styled, and basking in the christmas aesthetic. When one clicks on any of the images, it is automatically zoomed, in order for the user to view further close up details... the only downside, this does not allow purchase. The site is not yet transactional, but a brand building, brand awarness portal. The site instructs the user that the clothes are 'distributed exclusively' through their stores and that online sales are not available.


Blogs to blog about...

Then we have the extra features - Blogs, the Pull and Bear Diary, and below, 'Pull the Metal' a collaboration blog between Metal Magazine and Pull and Bear. It really looks like they have gone beyond their means to create something truly unique and original for their loyal consumers. I LOVE IT. 

Although the site cannot be used to purchase, they still go out of their way to show you as many products as possible with a little bit of info on their pricing. The pictures are beautiful and have obviously taken tender loving care and time to edit. You can filter between countries, gender, and then product category. For a different twist, instead of laying out all of the clothes one by one, only one image is shown, large, and after 2 seconds, fades into another new product. This may be a problem for some websites, yet as this site is non-transactional, the user is not in the same rush as the purchasing consumer. They want to wait and bask in the calming movements and beautiful products. This site almost insists that you sit, wait, discover and enjoy.

If that wasnt enough, and if I wasnt already super excited for christmas, the home page of the website runs a brand video, where Pull and Bear brand ambassadors aka, beautiful people, set up a Pull and Bear store in what looks like a Canadian paradise somewhere out in the open. They are all dressed in the best of the best from the Pull and Bear Winter seasons collection and really make the user excited about the clothes. Its inspirational, aspirational and I want to run to the store with my credit card straight away. But dont take my word for it, visit the site yourself and watch the video, its really fantastic.

http://www.pullbear.com/#/cozyshop/

The events section of the site, listed next to collections and blogs, shows the user past events for the brand. But they are so beautifully presented, with videos, images and text, I feel like I have missed out on the event of the year. The attention to detail and consumer experience on this site is really extraordinary. I do not expect an event video, photos or extra information layed out in a blog style, but my oh my do I love how they have taken the time to show me everything about the event right down to the DJ's.

This part of the website I absolutely adored. It is listed under 'collections' and the 'latest shopping.' Never have I seen so much detail placed into the product viewing. The long tabs labelled by numbers open out when clicked, and display 6 images, yet as in the example below, some of the images have been illustrated in a fun and abstract manner. When one clicks on any of the images, the image turns to colour and zooms towards the user in a slanted, awkward camera movement, that on my first viewing, made me gasp with utter delight. You need to check it out to understand what I mean. There are no boring straight angle zooms on this website. So much effort has been placed into this site, I am surprised they are not everyones favourite brand.

And finally, another section that I really loved: the weekly looks. Styled for the user, collections placed perfectly together, mixed between mens and womens, and with a scroll bar movement across the centre, again one cant help be inspired by the clothing.

Excellent website design: check. Fantastic inspirational imagery and videos: check. Superb consumer experience: check. Pull and Bear your new favourite store? : hell yes check!!

Victoria Magrath, 04 November 2010

Intergalactic Planetary, Planetary Intergalactic. Another dimension

" Want to play?

• Mintel’s iPhone Generation – UK, November 2009 report shows that over a third of consumers aged 16-24 are classified as Early Adopters of technology, compared to 12% of the total population, and a quarter of this age contingent can be categorised as Techno-Junkies (ie being fully engaged with, and enthusiastic about new technology). Consequently, the pattern of media consumption in consumers aged 16-24 is largely dictated by the pace of technological innovation itself, in addition to the falling costs of these advances.
• Digital technology in particular has played a pivotal role in revolutionising the way in which media are consumed, with dramatic changes to quality and delivery opening the way to a new generation of experiences, devices and applications designed to inform, but more importantly entertain.
• Unafraid of change and eager to push the boundaries, young consumers are more likely than any other age group to adopt and adapt to lifestyle changes that new media bring. With ‘play’ being a core demand in the leisure lifestyles of ‘screenagers’ and young adults, digital development has become the playground of the 16-24-year-old consumer. "

Mintel (2010) Mintel Reports (Online) Youth Media Consumption Habits - UK - October 2010, 'Want to play' accessed 04/11/2010.

available at http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/display/id=503586/display/id=551500?select_section=551501

Looks like John Lewis is following suit, but web apps before native apps seems to be the consensus

"John Lewis has announced it will launch a fully transactional mobile-optimised version of its web site next week. The department store retailer also plans to launch a mobile app early next year with the aim of integrating mobile into its online operations. The new mobile site will feature a store-locator and allow shoppers to buy from the full range of products on johnlewis.com from any internet-enabled mobile device.

Jonathon Brown, head of online selling at John Lewis said: “Our customers’ appetite for mobile commerce has grown enormously and our focus has been on developing a site with a seamless experience. Mobile is a vital part of our vision to become the leading multi-channel retailer in the UK, so watch this space for future developments.”

The mobile site was developed in house and in partnership with third party Usablenet. "

IMRG (2010) John Lewis moves into mobile commerce, 5 October 2010, Interactive Media In Retail Group (IMRG) London, available at https://www.imrg.org/8025741F0065E9B8/(httpNews)/F1DE670A3DD85B11802577B3003AE382?OpenDocument, accessed 04/11/2010


Check this out for more info :

http://econsultancy.com/uk/blog/6705-john-lewis-launches-mobile-commerce-site

Asos moves into m-commerce

"Asos has launched a mobile optimised web site allowing customers to browse and shop across categories including womenswear, menswear, lingerie and accessories. The site is accessible via all mobile devices including Android, Blackberry, Symbian and the iPhone.

The online retailer revealed that 24,000 orders have been placed through mobile phones on its main web site over the last six months. Asos attracts 175,000 visits via mobile devices every week.

Asos ecommerce director at James Hart said: “I’m delighted to bring a much-improved shopping experience to our customers coming to ASOS from their mobile phones. And this is just the start of a very exciting journey to offer them their ASOS, their way.”

The e-retailer also announced sales surged 47% in three months to 30 September. Total sales rose to £69.7 million with UK sales rising 21% to £43.6 million, while international sales soared 128% to £26 million. Asos said overseas sales are now highest within the EU, where shoppers spent 71% more, however, the fastest growth was seen in the United States, where sales rose 293%.

Nick Robertson, chief executive, said: “I am pleased to report continued strong sales growth, both in the UK and internationally. Our US web site launched in September and we expect to be live with both our French and German websites by the end of October 2010. With retail gross margin ahead of prior year and costs tightly managed, we expect our full year results to be in line with market expectations.” "
IMRG 2010, 15 October 2010  - available at : https://www.imrg.org/8025741F0065E9B8/(httpNews)/2F8EE94224FFB206802577BD003CDA02?OpenDocument

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

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 Play.com. 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 play.com   "


Source: Mintel, 2010 - E-Commerce - UK - February 2010
http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/display/id=479843/display/id=529566/display/id=479843&anchor=atom1/display/id=508747#hit1

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
http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/display/id=479843/display/id=529566

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 channel. Catalogues 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

http://www.vogue.co.uk/news/daily/100916-vogue-launches-ipad-app.aspx

"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   http://ny.racked.com/archives/2009/12/21/wwd_declares_popup_shops_so_2009.php 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