Top 10 Lessons
from 10 Years of experience
as European e-Commerce Pioneer
Carine Moitier, COO & Co-Founder
Expert Consultant in e-Commerce
eTail Europe 2009 - 09.06.09

Leapfrog is a joint research & innovation initiative of the
European Textile & Clothing industry,
led by Euratex,
aiming at a technology breakthrough in the clothing
industry & retail

Leapfrog 2005-2009
drives down EU manufacturing costs,
increases speed,
launches new product-services like
Mass Customization.

35 partners
11 countries
http://www.leapfrog-eu.org/ 3 years worktime

Development of an Innovative Customised Product
Configuration ( CPC ) Framework enabling multiple interactions by
internal organization actors, and business partners aiming to the collaboration
in the development of new products and the configuration of personalized
garments by the consumers. Partners from retail & industry involved.

Custom Clothing = The Long Tail of Fashion
Filters & recommandation technology will guide the customer
from “one-size-fits-all bestsellers clothing” upto the high variety
choice in custom clothing.
Source : Chris Anderson – The Long Tail - July 07

Source: Picture of the Author from Sueddeutsche Zeitung

Source : Online Survey on Internet Shopping Habits – Nielsen Jan 08
85% of the world population is
online
More than 50% have bought online last month
Fashion is the second
most popular product segment representing 36%
Fashion has the top increase,
From 20% to 36%

Custom clothing: some US market figures
 Lands' End's commitment to customers has always been an industry
benchmark and the resulting customer response has been phenomenal. In
2003, custom clothing sales grew 72 % over 2002. About 40 % of all
jeans and chinos sold online are custom made. On average, custom
clothing buyers increase their annual spending on both custom and
regular clothing by 39 percent. And they're a loyal bunch: The retention
rate is 34 percent higher than for other online shoppers.
 A Jupiter Research study conducted last November revealed that 51%
of people surveyed said they would pay an extra $10 to have a pair of
pants custom fitted; 28 percent said they would pay $20; and 18 percent
said they would pay $30.
 25 % of USA online webshops offer Custom Clothing
Ralph Lauren, Tommy Hilfiger, Timberland, Nike, Adidas, Landsend, Jc
Penney, Jos a Bank, Rochester Big & Tall, QVC,...

Mass Customization
\"Producing goods and services to
meet individual customer's needs
with near mass production
efficiency.\" (Tseng/Jiao 2001)

http://www.polo.com

05/24/09 confidential nv Douëlou copyright 08 13

ESPRIT

tp://www.marksandspencer-madetomeasure.com

The Mass Customization Benefits
For the consumer
• product satisfaction : fit & uniqueness
• hedonistic process satisfaction :
- pride of authorship
- peer recognition & emotional factors
• new shopping experience
• new differention possibilities

Who are the customized minded men ?
je trouve facilement
4
customisation pour être mon
propre styliste
H satisfait Cible en mineure
301M€ 3
H mode
373€ /pers
778M€
540€ /pers
2
H équipé
470M€
351€ /pers 1
ne pas me faire oser
remarquer idées créatives
0
customisation sur customisation
-2 -1 0 1 2
des classiques sur de la mode
Cible n°1
-1 Cœur de
cible
H oublié H frustré
309M€ 413M€
Jeje trouvedifficilement
trouve difficilement
299€ /pers -2 467€ /pers
Customisation parpar
customisation défaut
La Customisation : un nouveau
défaut
Source : Institut Français de la Mode (IFM) - 2007

Who are the customized minded women ?
je trouve facilement
customisation pour être mon
4
propre styliste
F mode F accro mode
3
F satisfaite 596M€ 765M€
543€ /pers
531M€ 730€ /pers
417€ /pers
2
Cible n°2
F équipée 1
460M€ F contrainte
351€ /pers 727M€
ne pas me faire 572€ /pers oser
remarquer 0 idées créatives
customisation sur
-2 -1 0 1 2 3customisation
des classiques sur de la mode
Cible -1
n°1
F frustrée
-2 841M€
F oubliée 592€ /pers
484M€
je trouve difficilement
334€ /pers Je customisation par
trouve difficilement
Customisation par défaut
défaut
-3
Source : Institut Français de la Mode (IFM) - 2007

The Mass Customization Benefits
For the retailer
• value competition instead of price
• reduced planning risk, inscreased flexibility
• new cost strutures
• reduction of inventory, fashion risk
• real customer relationship management

The Mass Customization Benefits
For the retailer
• customer knowledge
• life panel without panel effects
• « lead customer » information
• higher market research efficiency
• using custom operations as learning / pilot
fields for upcoming mass products

The Bivolino.com ConceptStory
«If every man is an individual, then how can he be satisfied with
products that are not made uniquely for him ? »
Bivolino.com was born in 1998 from a desire to meet individual
fashion needs. Strong of our 50 years know how, our vision is to
answer all your personal needs and desires in terms of fashion.
Thanks to Internet and our revolutionary customizing patented
technology, we are able to give you the inspiration for creating
your own style.
Starter Award 2004 in The Netherlands
Promotional Product of the Year 2004
BeCommerce Silver Award 2006

Shirt second skin
Thanks to Linosoft ™ technology, worldwide
patented, each Bivolino shirt is cut according
to the exact body shape without using any
tape measurement.

Consumer driven integrated manufacturing
Pattern design
CAD
MTM license
Software Backoffice ADM
Made-to-measure software Shipment
Database sizes Remote manufactory
Measurements CAM
West-Europe

‘Fashion before fashion’
Bivolino.com offers the latest fashion within
14 days thanks to a full vertically integrated
e-business.
Each week a new collection is available.

http://bivolino.hyves.nl/

Carine Moitier 2008

Your business powered
by BivolinoServices

• Configure the product in the
Webshop with Bivosoft tm
2. eCAD/CAM processing of each
single customer order and 1/1
patterns with Linosoft tm patent
3. Tracking of all production and
delivery phase with Bivotrack tm
4. Manufacturing services
05/24/09

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SOME own experieces
www.wemadebyme.com

Some figures for conclusion
• 75% repeat customers
• 3.8% return of goods
• no discount sales
• + 100% growth for each of the last 3 years

++ TOP 10 Lessons…
out of 10 years experience

Lesson #1
THINK BIG,
STAR T SMALL &
STAY FOCUSED.

Lesson #2
e-COMMERCE SHOULD BE
IN THE HEARTH & SOUL
OF YOUR COMPANY’s
CULTURE & VISION.

Lesson #3
THE e-COMMERCE BUSINESS
IS NOT JUST
ANOTHER CHANNEL.

Lesson #4
THE e-COMMERCE BUSINESS
IS BUILT ON
REPEAT CUSTOMERS.

Customers come…
Customers come back…
• on any given day, 75% of purchases from returning customers
• repeat customers order> 2.5x in the next 12 months.
Customers come back, order more and more often…
• repeat customers have higher average order size
• 111,98€ - first time customer in Q108
• 143,22€ - returning customers in Q108

Lesson #5
WORD OF MOUTH
REALLY WORKS ONLINE.

Consumers are the New Authorities
Then Now
“Turns out the contaminated wheat gluten that has
sickened and killed so many cats and dogs recently
has ended up in quite a few brand names. I finally
found a complete list of the affected brands here. I
feed my cats --- dry food, and fortunately the dry
food was not on the list. The --- wet is, though. Don't
assume that your brand is safe. Check the list!”
- stynes.blogspot.com, 04/05/07

Lesson #6
CREATE REAL VALUE,
DO NOT COMPETE ON PRICE.

Lesson #7
MAKE SURE YOUR
INVENTORY WEB SITE
IS 100% ACCURATE.

Lesson #8
CENTRALLY LOCATE
YOUR DISTRIBUTION.

Lesson #9
CUSTOMER SERVICE
IS AN
INVESTMENT.
(NOT AN EXPENSE)

What customers first see
• 24/7 1-800 number on every page
• free fast shipping
• free return policy
What customers experience
• fast & accurate fulfillment
• friendly, helpful « above & beyond » customer service
• a personal handwritten complement card
What to do internally
• no call times
• no sales-based performance goal for reps
• 5-week customer service & culture training

Lesson #10
DON’T BE SECRETIVE.
DON’T WORRY ABOUT
COMPETITORS.
JUST DO IT!

Many Thanks!
info@cmoitier.com
Blog : www.cmoitier.com
www.twitter.com/cmoitier