Future of internet retailingMartyn PerksTwitter: martynperksmail@thinkingapart.comwww.thinkingapart.com
Everything appears to be moving at breakneck speed…
The slow march of technology     Apple Newton, 1987                       Microsoft Tablet, 2000                          ...
Technology has become incredibly cheap
New mums           Teenagers
Low-end     So whats going on in fashion right now?                                       High-end                        ...
Retailers with online/physical                                                          stores see sales rise 22% on 2009O...
In 2009, £5.4bn spent online in2009, 17% increase over 2008.Online-only retail declined infavour of stores who offermultic...
Mistakes continue   Global survey of more than 500 businesses found companies estimate they   are losing the equivalent of...
The future lies in getting four areas right              Discovery                                                  Produc...
Discovery: reaching out in the real world   Sources of Information Used to   Research Products Before Making a   Purchase ...
Tell-a-friend                                                    65.9% would often use tell-a-friend feature when offered ...
Shopping parties!
Mobile discovery
Product: deliver value around it        Feeling towards shopping for clothes by age group, April 2011   70   60   50   40 ...
Sizing: Not making it easy
Too complicated!
TopShop -- “European” Shopping &            Entertainment Center, MoscowVirtual shopping
TopShop -- “European” Shopping &            Entertainment Center, MoscowEven for men!
Virtual fitting rooms
Telling a friend
Brand: protect, grow, nurture                                                                                         Its ...
Value wins                         Preferred Product Attributes According to US                         Internet Users, by...
Brand authenticity          Presentation: The future of internet retailing, London College of Fashion, June 2011 thinking ...
Future of Internet RetailingNiche content back in vogue          Presentation: The future of internet retailing, London Co...
Designers want to connect with you          Presentation: The future of internet retailing, London College of Fashion, Jun...
Service: major area for improvement   23% of consumers reported hassle of returns puts them off shopping online.   22% of ...
Solving the collection nightmare
In-store pickup
Offer flexible delivery times          Presentation: The future of internet retailing, London College of Fashion, June 201...
Easier payments for vendors          Presentation: The future of internet retailing, London College of Fashion, June 2011 ...
The future?“The best way to predict the future is to invent it.”Alan Kay, computer scientistListen to your consumers but g...
References and websitesSlide 5: Technology has become incredibly cheap—Shopify www.shopify.comSlide 6: New mums & teenager...
The end.Future of internet retailingMartyn PerksTwitter: martynperksmail@thinkingapart.comwww.thinkingapart.com
Future of internet retail
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Future of internet retail

  1. 1. Future of internet retailingMartyn PerksTwitter: martynperksmail@thinkingapart.comwww.thinkingapart.com
  2. 2. Everything appears to be moving at breakneck speed…
  3. 3. The slow march of 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
  4. 4. Technology has become incredibly cheap
  5. 5. New mums Teenagers
  6. 6. Low-end So whats going on in fashion right now? High-end High-end
  7. 7. Retailers with online/physical stores see sales rise 22% on 2009Online/physical growth Part 4: Fashion retailing Sales increase by 6% for stores with physical locations only Capgemini index, June 2010)Future growth will be harderEasy successes have been wonExpect switching of customer loyalty than new customersRetailers should focus on maximising revenue online Internet retail trends 2010, Verdict
  8. 8. In 2009, £5.4bn spent online in2009, 17% increase over 2008.Online-only retail declined infavour of stores who offermultichannel shopping. Interactive Media in Retail Group 2010Multi-channel growth
  9. 9. 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
  10. 10. The future lies in 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
  11. 11. Discovery: reaching out in 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", Childs Play Communications, Dec 13, 2010 Presentation: The future of internet retailing, London College of Fashion, June 2011 thinking apart ltd www.thinkingapart.com
  12. 12. 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
  13. 13. Shopping parties!
  14. 14. Mobile discovery
  15. 15. Product: deliver value around 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
  16. 16. Sizing: Not making it easy
  17. 17. Too complicated!
  18. 18. TopShop -- “European” Shopping & Entertainment Center, MoscowVirtual shopping
  19. 19. TopShop -- “European” Shopping & Entertainment Center, MoscowEven for men!
  20. 20. Virtual fitting rooms
  21. 21. Telling a friend
  22. 22. Brand: protect, grow, nurture Its new slogan of modern, sexy, cool didnt 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
  23. 23. 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
  24. 24. Brand authenticity Presentation: The future of internet retailing, London College of Fashion, June 2011 thinking apart ltd www.thinkingapart.com
  25. 25. Future of Internet RetailingNiche content back in vogue Presentation: The future of internet retailing, London College of Fashion, June 2011 thinking apart ltd www.thinkingapart.com
  26. 26. Designers want to connect with you Presentation: The future of internet retailing, London College of Fashion, June 2011 thinking apart ltd www.thinkingapart.com
  27. 27. Service: major area for 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
  28. 28. Solving the collection nightmare
  29. 29. In-store pickup
  30. 30. Offer flexible delivery times Presentation: The future of internet retailing, London College of Fashion, June 2011 thinking apart ltd www.thinkingapart.com
  31. 31. Easier payments for vendors Presentation: The future of internet retailing, London College of Fashion, June 2011 thinking apart ltd www.thinkingapart.com
  32. 32. The future?“The best way to predict the future is to invent it.”Alan Kay, computer scientistListen to your consumers but go much further than they expect
  33. 33. References and websitesSlide 5: Technology has become incredibly cheap—Shopify www.shopify.comSlide 6: New mums & teenagers—On new mums, see their new found power—even rejecting Prime Ministerial candidate DavidCameron: http://www.timesonline.co.uk/tol/news/politics/article6924035.eceOn 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 loyaltyand developing systems to create repeat business are likely to be key features of successful online retailing in the yearsahead.” Internet retail trends 2010, VerdictSlide 9: Multi-channel growth—See Online retail the real 2009 winner, Michael Conway, On Internet Businesshttp://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-redesignSlide 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.comSlide 30: In-store pickup—See FT http://www.ft.com/cms/s/0/0811d9e8-7393-11df-bc73-00144feabdc0.htmlSlide 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
  34. 34. The end.Future of internet retailingMartyn PerksTwitter: martynperksmail@thinkingapart.comwww.thinkingapart.com

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