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Omni-Channel Retailing: The Future Trend in Fashion and Luxury Industry - Part 2/2

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This publication offers you insights into: …

This publication offers you insights into:

-The most important findings from various surveys that were recently conducted on the changing behauviors of consumer
-Best Omni-Channel marketing practices of more than 60 famous brands and retailers.
-More than 25 successful future retail trends and opportunities in Fashion

Published in: Marketing, Business, Lifestyle

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  • 1. Omni-Channel Retailing: The Future Trend in Fashion and Luxury Industry Part 2/2 Publication May, 2014 The sequel to Fashionbi’s extensive research on Omni-Channel Retailing Focus on Merchandising, Events and Offline Advertisements/ Promotions.
  • 2. Omni-Channel Retailing - Part 2 May 2014 2/46 © Fashionbi - All rights Reserved Index Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 1. Omni-Experience With The Merchandising. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 1.1. Omni-Touchpoint: Merchandising and Social Media . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 1.2. Omni-Touchpoint: Merchandising and Brand’s Website. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 1.3. Omni-Touchpoint: Merchandising and Brand’s E-Commerce/M-Commerce. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 1.4. Omni-Touchpoint: Merchandising and Brand’s App . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 2. Omni-Experience At Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 2.1. Omni-Touchpoint: Events and Social Media . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 2.2. Omni-Touchpoint: Events and Brand’s Website . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 2.3. Omni-Touchpoint: Events and Brand’s E-Commerce/M-Commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 2.4. Omni-Touchpoint: Events and Brand’s App . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 3. Omni-Experience With The Offline Advertisements/Promotions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 3.1. Omni-Touchpoint: Offline Advertisements/Promotions and Social Media . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 3.2. Omni-Touchpoint: Offline Advertisements/Promotions and Brand’s Website . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 3.3. Omni-Touchpoint: Offline Advertisements/Promotions and Brand’s E-Commerce/M-Commerce . . . . . . . . . . . . . . . . . . . . . . . . 97 3.4. Omni-Touchpoint: Offline Advertisements/Promotions and Brand’s App . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
  • 3. Omni-Channel Retailing - Part 2 May 2014 3/46 © Fashionbi - All rights Reserved In the publication you can find case-studies about the following brands Adidas page 27, 84 Aldo page 82 Alexander McQueen page 20 Bata page 81 Belstaff page 60 Bottega Veneta page 54 Bouthentique page 81 Burberry page 26, 59, 64 C&A page 18 Cartier page 29 Coach page91 Diane von Furstenberg page 53 Diesel page 83 DoDo page 93 Estee Lauder page 80 Etro page 97 Fendi page 58 Freya page 106 Gap page 53 Geox page 25 Giorgio Armani page 90 Gucci page 41, 58 Hermès page 79, 89 Hugo Boss page 52 Izzue page 23 Jaeger-LeCoultre page 89 John Lewis page 25
  • 4. Omni-Channel Retailing - Part 2 May 2014 4/46 © Fashionbi - All rights Reserved Metersbonwe page 33 Moschino page 66 Moynat page 29 New Balance page 36 Nike page 19,28,82 Nordstorm page 17 Oscar de la Renta page 79 Pepe Jeans page 101 Primark page 28 Sephora page 35, 59 Swatch page 100 Tiffany and Co. page 40 Tissot page 70 Rolex page 30 Rebecca Minkoff pag 51 Massimo Dutti page 24 Me&City page 33 Levi’s page 92 Liu Jo pag 97 Louis Vuitton page 54, 107 Macy’s page 24, 57, 70 Mango page 97 Marc Jacobs page 85 Marks & Spencer page 101 Mary Katrantzou page 67 Kiton page 93 Lancome page 54
  • 5. Omni-Channel Retailing - Part 2 May 2014 5/46 © Fashionbi - All rights Reserved Urban Outfitters page 33 Valentino page 52 Van Cleef & Arpels page 71 Versace page 92 Volga Verdi page 20 Wonderbra page106 Zara page 14 Tommy Hilfiger page 50 Topshop page 49, 65, 69 Uniqlo page 19 TRESemmé page 99
  • 6. Omni-Channel Retailing - Part 2 May 2014 6/46 © Fashionbi - All rights Reserved Description of points Besides this icon, you would find examples of the latest and most innovative trends in the market. These are examples of some digitally advanced fashion and luxury brands or from other sectors of retail. Trends and Opportunities of what can be This icon includes some of the best omni-channel strategies that fashion and luxury brands have implemented in the recent past with their detailed description and pictures for your better understanding. Case-Study Clicking on this link would lead you to the video that describes either the case-studies or the trends and opportunities in detail. These short videos would help you understand the examples quickly and easily. Video This symbol could be used to identify the most interesting and thought provoking statistics and facts related to Omni-Marketing topic. This includes number and charts which would help you understand the market better. Interesting to know
  • 7. Omni-Channel Retailing - Part 2 May 2014 7/46 © Fashionbi - All rights Reserved We are all shoppers. We are all consumers. The incredible thing is - we all have our unique and personal view on the shopping experience. Retail industry is undergoing a complete makeover. Historic shifts have taken place in the fields of economics, demographics, consumerism and technology. All that was known about retail till now has suddenly become a thing of the past. No more ‘typical’ consumer, no more ‘geography’, and no ‘one size fits all’ solutions anymore. We are living in a world where ‘total information available’ and ‘ways to access this information’ follow Moore’s law or probably outrun it. This instantaneous availability of information at our fingertips is constantly changing everything about us. How we communicate; how we seek, receive and process information and how we entertain ourselves has changed dramatically over the years. The newest addition is - how we shop. Shopping experience in no longer confined to the physical walls of the store. There are more ways to instantly connect to the information, people, brands and the companies, than ever before. Consumers, empowered with technology and information, actually can know more about the product than the salespeople at the store. All this helps consumers make better and informed decisions. These ‘smart consumers’ are constantly rewriting the sense of the retail industry. They control - When, Where and How to shop. They don’t think in terms of channels but in terms of getting things done easily, quickly, cheaply and even in funny ways. And they want it... Anytime... Anywhere. Welcome to the world of omni-present Shopping! Yana Bushmeleva COO of Fashionbi
  • 8. Omni-Channel Retailing - Part 2 May 2014 8/46 © Fashionbi - All rights Reserved Introduction In the previous publication of Fashionbi that was published in January 2014, we had introduced the concept of Omni-Channel Retailing which is the future trend in the luxury and fashion industry. As the name suggests, this publication is a sequel to the previous one. Before we go into the topics of this publication, let us have a quick recap into what was dealt with earlier as this would help understand the new topics better. Over the recent years, there has been a change in the approach to marketing. What was initially just a single channel for marketing, slowly evolved to multiple channels. But with the recent boom in technology, growth of social media and easy access to the internet at all times, marketers are slowly embracing the concept of Omni-Channel Marketing. This change is mostly due to the behavior of the present day shopper who is empowered with information thanks to the technology. They research the product on various channels before they make the final decision to purchase it. In short, Omni-Channel retailing is offering a seamless integration of all the various channels of the brand. This way customers have access to all information irrespective of time or location. We , at Fashionbi have developed a methodology to help marketers implement this concept for their brands and create a consistent omni-channel experience for their customers across their different channels. The first step involves identifying the different situations at which a customer would come into contact and experience the brand. This involves both online and offline experiences. Online experiences could be through a search engine, social media, the brand’s official website and so on. While the offline experiences could include anything starting from the store window to the fitting rooms to the various events organized by the brand. Once these situations are identified, the second step involves mapping what we call the ‘Omni-touchpoint’. An omni-touchpoint is a situation where an offline experience could combined with an online experience with the help of some kind of technology. After mapping this omni-touchpoint, marketers would have to think of everything a potential customer could do at this touchpoint and describe this situation. Doing this would shed light on what the brand is already doing at these Omni-Touchpoints to provide their customers with a seamless integration of their channels and would indicate the situations where there is room for further improvement. Previously, we had dealt in detail with the omni-experience at the store window, inside the store and at the fitting room. These Omni-Touchpoints were explained in detail with the help of examples of the best practices by brands today. Further, the trends and opportunities in each touchpoint were also identified. In this publication, which is a continuation of the previous one, we will explain about the omni-experience with the merchandising in the store, events organized by the brands and offline advertising and promotions. In the three months since our first publication in which we called Omni-Channel as the future trend for retail, several other publications and surveys by the world’s leading consulting and advisory firms have agreed with us and established this as a fact.
  • 9. Omni-Channel Retailing - Part 2 May 2014 9/46 © Fashionbi - All rights Reserved A recent survey by PricewaterhouseCoopers that was published in February 2014 revealed that today’s customers consider brands to offer cross-channel shopping as a norm and they also expect brands to have convenient physical stores, websites capable of handling purchases and a mobile site or app as a given. Customers empowered with technology have raised the bar high up for every brand and retailer. Here are some of the most important findings from the survey by PwC: 1. A compelling brand story that promises a distinctive experience Certainly product price and availability are time tested reasons for choosing one brand over another, but a closer look reveals that ‘brand trust’ is the number one factor that customers give for shopping at their favorite retailer. Changing how the brand is communicated helps strengthen the brand’s image. 2. Customized offers based on personal preferences and information which are totally protected Even while cyber-security is a major concern for online shoppers, they increasingly want personalized offers based on their previous purchase history. The percentage of shoppers who visited the social media pages of brands for offers after receiving a personal message or mail has increased over the past year. 3. An enhanced and consistent experience across all devices It is increasingly important for brands to stay technically agile across all devices as more and more customers are embracing a range of devices to shop. Customers should be able to access as much information on all channels. Top regions for mobile phone shopping Do you buy products using a mobile phone/smartphone? China 23% 77% Middle East 48% 58% India 31% 69% Global average 57% 43% Yes No Base: 15’080 (Global), 900 (China), 1’006 (India), 1’000 (MIddle East) Source: PwC Global Total Survey 2013
  • 10. Omni-Channel Retailing - Part 2 May 2014 10/46 © Fashionbi - All rights Reserved 4. Transparency and real time information into a retailer’s inventory While customers cannot get enough of in-store technology like virtual try-on mirrors and so on, more than 20% of the shoppers would like to be left alone while they shop. Of those 20% of the shoppers, almost 50% of them wished to check out other stores and the stocks in-stores to aid their purchase. To implement this, most brands would need to upgrade their back office, warehouse and distribution channels. Consumers value inventory transparency over other types of in-store technology Which of the following in-store technologies would make your shopping experience better? Base: 15’080 Source: PwC Global Total Retail Survey 2013 Ability to check other store or online stock quickly In-store WIFI with fast, siple, login Sales associates who can take payment without going to the cash register Sales associates with tablets to show you alternative products Using your mobile phone to pay for your shopping Pay for an item through the store’s app None of the above 46% 31% 27% 23% 21% 20% 20% 20% 30% 40% 50%10%0%
  • 11. Omni-Channel Retailing - Part 2 May 2014 11/46 © Fashionbi - All rights Reserved 5. To maximize the value of mobile shopping, both store apps and mobile sites must improve With the global penetration of mobile internet services expected to reach 54% by 2017 compared to fixed broadband which would reach 51% of the population, it is important for brands to concentrate more on both mobile websites and apps. While apps can be used to improve the experience, it is equally important for brands websites to be optimized for mobile viewing. 6. Two-way social media engagement Brands are discovering that just opening a Facebook page or Twitter account is not enough to meet the customer’s expectations. Really using the power of social media involves listening to what customers have to say and to engage with them. The modern consumer doesn’t just want to shop, they also want to be heard and responded to. This recent survey of more than 15000 shoppers in 15 different countries only emphasis and reconfirms what we have earlier mentioned as the important points that a brand must keep in mind while they are in the process of creating an omni-channel experience. Online shoppers are evenly split in their preference for mobile browsers versus apps How often do you use either app or mobile browser on your mobile/ smartphone for shopping? Digitally empowered consumers embracing social media to connect with brands Which of the following have you done using social media? Base: 6’506 Source: PwC Global Total Retail Survey 2013 Base: 15’080 Source: PwC Global Total Retail Survey 2013 10% 15% 20% 25% 30%5%0% Daily 16% 17% Weekly 21% 22% Monthly 23% 24% A few times a year 21% 21% Once a year 7% 7% Never 12% 8% App YesMobile browser No Followed favorite brands or reteilers 41% 59% Interacted with favorite brands 48% 52% Provided positive or negative comments about experience 45% 55% Discovered brands 42% 58% Researched a brand 41% 59% Bought products 52% 48%
  • 12. Omni-Channel Retailing - Part 2 May 2014 13/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising 1. Omni-Experience With The Merchandising Customer look for great experiences to connect with brands at many different points. But at the end of the day, everything boils down to the ‘product’. We live in a world where the number of products available at our disposal is more than ever before. In this extremely crowded market place it is difficult for a single product to stand out. Even a great product cannot sell itself if none knows about it. A customer might be impressed with the window display or the in-store experience but if they do not get the right information about the product, they might not make the purchase. It is key to get all the information about the product across to the customer for them to understand the product better and for them to trust the brand more. This is specially important for premium luxury brands as knowing the story behind a product make the customer feel more secure about his choice. Digital technology has forever revolutionized the way customers purchase and it has also made it easier for brands to get product information across. In a recent survey by Capgemini, it was found of 56% of respondents said they were likely to spend more money at a physical store if they had used digital channels to research the merchandise prior to purchase. And 55% said they were more likely to spend more money with a particular retailer if the merchandise were available anytime via any channel. Digital shoppers are focussed on core information about the product like it’s price, functionality and delivery information and these digital savvy shoppers expect it as a mandatory norm for brands to get these information right across all the channels. It is only after these needs are met by the the brand are the customers open to engage with the brand. The brand’s online channels drives commerce to the offline channels and vice versa as customers sometime research the product on either one of the channels and purchase in another depending on their convenience. It is therefore important for brands to provide all necessary information about the products across all its channels and stay coherent. These are some of the Omni-Touchpoints where this is possible.
  • 13. Omni-Channel Retailing - Part 2 May 2014 14/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising Nordstrom C&A Nike Uniqlo Volga Verdi Alexander McQueen Izzue Zara Massimo Dutti Geox Bloomingdales Tiffany & Co John Lewis Burberry Adidas Nike Primark Moynat Cartier Rolex Macy’s Metersbonwe Me & City Urban Outfitters New Balance/Foot Locker Gucci Argos Sephora John Lewis Sport Chek
  • 14. Omni-Channel Retailing - Part 2 May 2014 15/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising 1.1. Omni-Touchpoint: Merchandising and Social Media Description of the situation: What the potential customer can do at this Omni-Touchpoint: • Follow for updates of the latest product launches • Check for special discount codes for social media followers/fans • Check reviews of other customers about specific products • Check opinions and popularity of specific products among social media influencers/bloggers • Share your personal experience after trying on specific products at the store • Create a wish list of the products you like and share on your social media page Recent studies show beyond doubt the positive influence that social media has on the sales of products. As you can see from the graphs, Pinterest is the social network that’s most likely to drive spontaneous purchasing whereas Twitter and Facebook users are likely to make social media-related purchases of products they were already considering. Also, 2 out of 5 social media users purchased an item after sharing or favoriting it on Twitter, Facebook or Pinterest. Out of these users who purchased, almost 90% of them purchased the products in-store. These statistics by itself prove why it is important for brands to promote their merchandise on social media and connect it to their brick and mortar store. Purchase Intent When you shared or favorite this item, were you already thinking or purchasing it? Social Purchasing By Network Have you ever purchased an item - either in-store or online - after you shared or favorited it? Period: April - June 2013 Source: from Social to Sale, VIsion Critical, 2013 Period: April - June 2013 Source: from Social to Sale, VIsion Critical, 2013 Pinterest Purchasers Facebook Purchasers Twitter Purchasers YES, I thought about purchasing this product and was researching the purchase YES, I was vaguily thinking about purchasing this product NO, I had not thought about purchasing this product 22% 22% 21% 49% 60% 70% 9% 29% 16% On each platform, some purchasers have made both online and offline purchases Total 29% Pinterest 22% Online 21% In-Store Total 22% Twitter 18% Online 17% In-Store Total 38% Facebook 29% Online 30% In-Store
  • 15. Omni-Channel Retailing - Part 2 May 2014 16/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising Customers are also increasingly impatient to wait for 6 months to see the new merchandise in the store. What was earlier just two collections a year, has increased over the past few years to four collections with the addition of Prefall and Resort collections and something a couture collection as well. On the other hand, fast fashion brands like Zara and Topshop add new items to their store almost every week. It is nearly impossible for brands to have elaborate marketing campaigns and photoshoots when new products are released at such a rapid pace. As a solution for this problem, most brands have resorted to social media marketing to announce arrivals of new products and drive traffic to their brick and mortar stores. Shoppers are now willing to interact with retailers on a number of different social networks in order to find information on deals, products and contests. Pinterest API for brands The fastest growing kid on the social media block is Pinterest. The launch of the Pinterest API in November 2013 shows their intention to help brands perform better. This application lets third-party sites embed Pinterest pins, and make it easier to post content into Pinterest itself. It also helps brands by generating information about most pinned, most clicked, recently pinned items. Sales on E-Commerce websites which originally generated from search on the virtual scrapbooking site, Pinterest have doubled after its launch and brands like Target and Topshop have quickly taken advantage of this with various campaigns connected with Pinterest. Interesting to know
  • 16. Omni-Channel Retailing - Part 2 May 2014 17/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising Nordstrom Not only is Nordstrom leveraging this new feature with a separate section on their website for the the top pinned items in the different categories (Accessories, Clothing etc.) but they have also taken this a step further and incorporated them in their physical stores. The American upscale fashion retailer created a display of their most pinned products in the store. The pilot program which was initially launched in 13 Nordstrom stores initially had Pinterest displays in the shoes, handbags and dress departments.
  • 17. Omni-Channel Retailing - Part 2 May 2014 18/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising C&A The Brazilian branch of C&A did something similar by integrating Facebook likes into their brick and mortar stores. Every time someone clicked the thumbs up like button on a particular merchandise on C&A’s Brazilian website, the number would increase on the hanger embedded with a screen in the physical rack of the store. The campaign which they called FashionLike was a marketing push by the retailer to bring together online group thinking with real world decision making. Most shoppers these days are unsure of their choices and always wish to have a second opinion. They tend to send pictures to their friends and family to be absolutely certain that they made the right decision. Campaigns like these help customers make purchasing decisions based on the social popularity of the product. http://fsh.by/CTh3JQ
  • 18. Omni-Channel Retailing - Part 2 May 2014 19/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising WeChat, Chinese Internet Giant Tencent’s social mobile app is one of the fastest growing in the world. What started of as instant messaging app similar to WhatsApp has today become a tool used by brands for communication because of its various other features that are similar to social media platforms like Facebook (Newsfeed), Twitter (Small content), Skype (Video calling) and Foursquare (Location based content). As with other social media platforms, most brands in the Chinese market have used WeChat to create a branded space for them and share information. Some of them are even using this platform to provide personalized customer service and support. Nike The Nike + Run Club account on WeChat primarily aims at giving running tips and running plans to its followers. But it also an option to help users pick her running shoes. The account has information about all the running shoes that Nike sells. By filling in a Questionnaire, users who are not sure about which pair of shoes to buy can get product recommendations. Uniqlo Uniqlo has a special WeChat account just for its jeans which is called U Jeans. This account helps customer find the perfect pair of jean. By inputing various details like age, height and weight, fabric and fit of their choice, customers get a range of color options available. They can then choose the store where they wish to pick up and pay for the jean.
  • 19. Omni-Channel Retailing - Part 2 May 2014 20/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising Volga Verdi Understanding how influential people can be on social media, California based fashion brand Volga Verdi launched a program called ‘The Exchange’ that gave one’s social media influence a dollar value. Every customer was offered a discount in exchange for them promoting the brand and it’s products on their social media pages. By posting a certain message on your status or liking the page, you could get upto 50% off on each Volga Verdi T-Shirt. The more connections (followers or friends) you have, the bigger the exposure for the company and the bigger discount you will get. Alexander McQueen At the Alexander McQueen flagship store in London, gesture-controlled mirrors on the first and lower ground floors allows customers to browse the collection and photograph themselves in looks which they can then share with friends via social media channels or email. Trends and opportunities of what can be Zappos Online retailer Zappos decided to leverage on the the popularity of #ootd posts on Instagram and came up with a strategy to make customers purchase products on their website. The company’s pilot project which is called “NEXT OOTD” gives their Instagram followers personalised shopping recommendation every time someone posts a photo and tags it #nextootd. This recommendation is based on the follower’s Instagram posts. Fashion brands could also use this strategy of personal shopping via Social Media. Every time a customer tags the brand and any of its products on a social media platform, a team of personalized stylists could analyze the style of the customer from his other posts and recommend similar products offered by the brand.
  • 20. Omni-Channel Retailing - Part 2 May 2014 21/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising LoveList A lot has been said about how brands are leveraging on Pinterest to drive online sales. Pinterest lets you ‘pin’ your favorite brands and their products when you find them online so they are easily accessible and organized whenever you want them. But how do brands connect their offline physical stores to this social media network ? This has always been a limitation and this hurdle has been crossed with the launch of an app called, LoveList. This app gives you the ability to scan real-life products directly to your Pinterest boards using the item’s barcode. If you are in a store of a brand and like their product, there are various options and brand apps which could help you save the products on their specific wishlist. But customers tend to forget what product they saw in which store. LoveList gives you the option to simply scan the product and pin it to the board of your choice on Pinterest. This app is currently connected to all barcodes on Amazon’s database but with the inclusion of a particular brand’s database, the pins would lead to products on the brand’s webpage from which customers could buy online. Brands could further improvise this with an option to save and share the products on the social media accounts of the customer like Facebook and Instagram, not just Pinterest. http://fsh.by/W2-7Mw
  • 21. Omni-Channel Retailing - Part 2 May 2014 22/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising 1.2. Omni-Touchpoint: Merchandising and Brand’s Website Description of the situation: What the potential customer can do at this Omni-Touchpoint: • Find more information (material, country of manufacture etc.,) about each specific product. • Get to know the story behind each specific product • Get information about the other variations of a specific product. • Check for product availability in other stores to purchase later According to a recent survey on ForSee 2013, out of the 70 percent of shoppers who used a mobile phone while in a retail store during the holidays, 62 percent accessed that store’s website or app. The brand’s website is expected to be the universe of information about the brand, its history, its products and campaigns - basically everything related to the brand. Therefore it is only obvious that shoppers tend to go to the brand’s website while in the store to get any sort of additional information and there is a need for the store to offer an effortless connection to its website.
  • 22. Omni-Channel Retailing - Part 2 May 2014 23/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising Izzue Hong Kong based brand Izzue which is immensely popular amongst the youth in China included the address of their website in most parts of their merchandise. This brand which belongs to the I.T fashion conglomerate has included their website URL in their brand label, price tags, care labels and even the shopping bags. Although the brand still does not sell online, the website contains all other information regarding its products and store locations. This way even after a customer makes the purchase and leaves the store with the merchandise, they can still easily find the web address from the merchandise itself.
  • 23. Omni-Channel Retailing - Part 2 May 2014 24/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising Zara, Massimo Dutti Zara offers the same Omni-Experience to all its customer irrespective of the country as the tags on the products in China and Italy have both the website url and the QR code. Scanning the QR code in Shanghai leads you to the Chinese version of the website whereas in Milan, it leads you to the landing page of the International site from which you can select the country and language of your choice. Massimo Dutti which belongs to the same group Inditex also has the website link on all its tags except the ones for accessories. Massimo Dutti also has a mobile version of the website which is very necessary these days as most customers access the brands websites on their smartphones.
  • 24. Omni-Channel Retailing - Part 2 May 2014 25/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising Geox Geox, manufacturer of breathable shoes and fabrics has not just the URL to their website but also icons of all the social media networks they are active on. They also have a QR code on the booklet tag with details about the special ‘respira’ fabric. Scanning this QR code leads you to the home page of the website. While promoting newly launched products, it would be smarter for brands to link their QR code with the exact page of newly launched products as customers might lose time navigating through the website to reach the specific page and might sometimes not find what they are looking for. John Lewis Most retailers offer free wifi in their stores but it is not always easy to access the website easily as in the case of the examples in the previous publication (Eg: Sephora Store in Shanghai offers free wifi but it is difficult to navigate through the website as it is not mobile compatible). As soon a person connects to the free wifi at the store, brands can make sure that their webpage opens immediately with options that offers assistance during their time at the store. Retailers like John Lewis have embraced online technology in-store by providing website access points throughout the store and therefore welcoming omni- channel commerce.
  • 25. Omni-Channel Retailing - Part 2 May 2014 26/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising Burberry Burberry has always stayed ahead of the pack by being the most digitally innovative fashion brand. After 2 years of renovations, Burberry unveiled its digitally integrated 27000 square foot flagship store in Regent Street, London. The main aim at creating this store was to bring the digital experience of the website burberry.com into a physical space. The store is wrapped in full-length screens which changes between displaying content displays to live streaming fashion shows and sometimes into mirrors. Burberry has also integrated this technology into their merchandise. Some of them come attached with a chip similar to an RFID which displays video content related to the product when it come close to the mirrors in the dressing room. Customers can also view this content by scanning the tag on their phone while outside the store. In Burberry’s first stand-alone beauty store in Covent Garden, traditional tills have been swapped with iPads and iPhones for payments. In another attempt to merge digital experiences with the physical world, the digital runway nail bar allows customers to virtually try-on nail colors. The website offers an option for customers to pre-book styling and manicure appointments at the burberry beauty box store. http://fsh.by/IjML3A http://fsh.by/h8m7FQ
  • 26. Omni-Channel Retailing - Part 2 May 2014 27/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising Another reason for brand’s to connect their website with the store is the size of their product range. With new collections in-store so often, most brands have product ranges so large that sometimes even the flagship store is not big enough to accommodate it all. It therefore becomes very necessary for brands to keep their customers aware of their complete product range even if not in the store and the brand’s website is the perfect channel to let this happen. Adidas This problem of not having enough space to exhibit their entire product range was sensed by Adidas, which lead to them partner with Intel to create a virtual footwear wall, Adiverse. Adidas has been using digital signage in its stores for years to promote products and show product videos but this 3D interactive wall virtual wall is a step ahead. It is a natural extension of their physical product range as it showcases the virtual product range, it allows customers to interact with the entire footwear line available on their website, not just what was on the shelves. By sensing the gender of the customer, the virtual wall makes product recommendations and provides all information about the product. Products chosen on the virtual wall can be purchased from the store just like the products in their physical product range. This way, an adidas store in a small town can seem like a flagship store as it would have all merchandise under their roof. http://fsh.by/97FJFQ
  • 27. Omni-Channel Retailing - Part 2 May 2014 28/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising Nike Adidas bigger competitor Nike did something similar in their new concept store called Fuel Station. In this digitally enabled retail space, Nike uses technology to allow customers to interact with the space in multiple ways. In between all these interactive spaces, you would see just a handful of shoes in the shelves but to counteract this, the walls come fitted with a half a dozen iPads which can be used as an interactive catalogue connected to the website with access to the entire range of products and place orders. http://fsh.by/3-X3Nw Primark Irish retailer Primark who does not sell online (Used to sell on asos.com earlier but not anymore ) uses its website to display its product catalogue with “Find my nearest Primark” tab. Brands like these which do not have an E-Commerce platform yet can leverage on the website by displaying product inventory and availability in the store closest to the browser.
  • 28. Omni-Channel Retailing - Part 2 May 2014 29/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising While fast fashion and sports brands are more experimental to implement extremely innovative ideas and make drastic changes into their stores, this is not the same in the case of Luxury Brands. Some luxury brands have a belief that being extremely open could make their brand lose their sense of exclusivity and hence do not foray too deep into this field. They do however use their website as a means to direct traffic into their real world stores with the use of the use of the ‘store-locator’ function on the website. Moynat One of France’s oldest trunk makers, Moynat displays on their webpage its products with a descriptive information and material and size details. There is no option to purchase them directly from the website whereas clicking on the ‘boutique’ tab leads to a page with detailed address of each of its stores. Cartier Jeweler Cartier has been exploiting this feature by going as far putting the “find a Cartier Boutique” tab on its product pages and putting the user on a path to purchase the product in the brick and mortar store.
  • 29. Omni-Channel Retailing - Part 2 May 2014 30/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising Rolex Swiss Watchmaker Rolex’s website offers to help customers select the perfect Rolex for them amongst their large selection of watches. After the selection process, the watch is added to the wish list. The website then offers to help you find the closest Rolex retailer. Trends and opportunities of what can be Perch Interactive Perch Interactive is a company that offers turnkey solutions to retailers to integrate digital into their store. With it’s wall-mounted projection unit, Perch lights up a table which acts as a display unit. Information regarding the products are displayed on this table and by moving the product around, users can interact with the table to receive more information about the product. Perch provides a dynamic and hands-on interactive display that creates a playful and engaging way for shoppers to pick up and discover each product before they make the decision to buy it. An opportunity that lies for brands here is to connect their official website to the interactive table top display. Customers could be allowed to place products on these tables that would recognise them and connect them to the exact page of the product on the website. They would then be able to get all information regarding the product directly from the website. This could be a future trend for the omni-touchpoint of brand’s website and merchandise. http://fsh.by/4VTShA
  • 30. Omni-Channel Retailing - Part 2 May 2014 31/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising 1.3. Omni-Touchpoint: Merchandising and Brand’s E-Commerce/M-Commerce Description of the situation: What the potential customer can do at this Omni-Touchpoint: • Products can be customized online and collected at the store • Items in the E-Commerce wish list can be selected and picked up at the physical store • Products in the store can be scanned and added to the e-commerce basket to be purchased later • Access online shopping website from the store and purchase products that are not in the store at the moment Physical retailing is pricey for companies. Sky-rocketing real-estate prices eat up a big chunk of operating costs. This made brands focus on channels where they could sell their products online. But after years of boosting up their e-commerce engines, brands and retailers are now waking up to omni-channel retailing, recognizing that the core of their business is still their existing fleet of physical stores. The vision of a brand being digital cannot be realised unless there are changes offline and now brands are refocussing their strategies to merge their physical stores with their e-commerce stores and therefore drive sales to both the channels.
  • 31. Omni-Channel Retailing - Part 2 May 2014 32/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising Macy’s More than 50% of the brands that sell online are trying to bridge the gap between their virtual and physical store by having the option for customers to return or exchange their products at the brick and mortar store. But some brands out there have more advance options. American departmental store Macy’s has been a forerunner in this case. Customers have the option to check the availability of the products in the store through their website. They also offer cash on delivery and in-store pick up options for products ordered online. They have also invested heavily in the option for them to ship online orders directly from their physical stores and not their centralized warehouses. This is possible with a strong inventory control program.
  • 32. Omni-Channel Retailing - Part 2 May 2014 33/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising Metersbonwe, Me & City Local fast fashion brands like Meteresbonwe and Me & City that have been developing rapidly in China over the recent years. The websites of these brands contain general product information but do not support e-commerce. They however sell online through the common e-commerce channel banggo. com. The shopping bags & tags of these brands have both the URL of the brand’s own website as well as the URL of Banggo along with a QR code. Urban Outfitters Urban Outfitters apart from enabling shoppers to see if a specific item is in stock at a retail location from their websites’ product pages also tries to connect mobile shoppers to its brick and mortar stores with the “now playing in-store” feature on its mobile store locator page.
  • 33. Omni-Channel Retailing - Part 2 May 2014 34/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising An interesting technique for brands to improve their QR code is to use ‘Visualead’. As we have seen from the previous examples, most brands include the QR code either in their shopping bag or their tags or labels but these QR codes are just a small black square which has no visual connection the the brand identity. Visualead is a company that helps incorporate images into the QR code. Brands can use this to combine their logo with the QR code to generate a QR code which almost looks like their brand logo. Interesting to know
  • 34. Omni-Channel Retailing - Part 2 May 2014 35/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising John Lewis, Argos Nowadays there is nothing as a fully online or a fully physical store as the lines between both are fast blurring. British retailer John Lewis who was one of the first to introduce the ‘click and collect’ service way back in 2008 also encourages online shopping in-stores. Another UK catalogue retailer Argos has launched a fast track service that allows customers who have ordered products online to collect them from the store within sixty seconds of arriving through its exclusive ‘pay and collect’ points in the store. Sephora Sephora has also begun displaying real-time brick and mortar inventory information on its e-commerce “pre shopping” product page. Customer can go online on Sephora’s e-commerce page and browse through products. They can then select their closest store and check the product availability in the store instantly. This service is specially useful in the case of a beauty and cosmetics brands as customers would wish to see how the product looks on their skin tone before they buy it but it saves them the time involved in browsing through the huge selection of products at the store and thus prepares them before their trip to the store. They can also book appointments for consultations with make up artists at the store prior to their visit.
  • 35. Omni-Channel Retailing - Part 2 May 2014 36/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising New Balance, Sport Chek New Balance has been manufacturing custom made shoes for some time now. Customers can design their own shoe from scratch on the new balance website and have it delivered in less than 10 days. They have now taken it a step further by joining forces with footwear retailer, Foot Locker. The customizable kiosks available in the foot locker store in Times Square New York gives the customer the opportunity to design their own shoe in the physical store and then deliver it to you within 10 days. Canadian sports retailer, Sport Chek has come up with something similar in their recently launched digital concept store. This 12000 square foot store is equipped with digital technology that enables more interaction between the store and its customers. The company partnered with Samsung to install around 140 digital screens throughout the store which includes small digital tiles built into display tables and many other digital displays to showcase videos and images. The store also has Adiverse, the virtual wall by Adidas which was discussed earlier and a ‘build your own sneaker’ kiosk by Reebok. One of the most important factors to keep in mind while creating an Omni-Channel experience between the online and offline sales channels of merchandise is uniformity. It is very important for prices to be the same in the e-commerce channels and the physical store. In order to do this, it is very important for brands to directly maintain their official online website as well as their physical stores.
  • 36. Omni-Channel Retailing - Part 2 May 2014 37/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising Trends and opportunities of what can be ASAP54 app A breakthrough in merging E-Commerce and Merchandising is a new app called ASAP54. This image recognition app that can match photos of clothing and accessories to identical or similar products stored in its database. So, the next time a customer spots someone on the street wearing something they like, they would just need to click a picture of the product. The app then allows shoppers to purchase products directly from the website of over 150 retailers in its database which includes Net-a-Porter, Barneys, J. Crew, Neiman Marcus, Topshop, and Forever 21. Brands can partner with this app to include their E-Commerce products into their database. This way consumers who are showrooming can be directed to their exact retailer without mixing up the different products they see. http://fsh.by/GtBypg Parco Another interesting innovation is by Japanese Retailer Parco. Every time a hanger is removed from the rack, the digital screen above the rack would project a video related to the product. This idea can be further improved and merged with the E-Commerce by implementing a way in which every time a hanger is removed from the rack, the screen would project similar products offered by the brand but not currently stocked in the store. Customers could then be allowed to access the products in the E-store throughout the digital touch screens. http://fsh.by/L3h4cw
  • 37. Omni-Channel Retailing - Part 2 May 2014 38/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising 1.4. Omni-Touchpoint: Merchandising and Brand’s App Description of the situation: What the potential customer can do at this Omni-Touchpoint: • Browse through product information easily with help of brand’s app • Book a sales assistance before arriving at the store • Get personalized recommendations based on your previous shopping history • Receive notification and information about the product when nearby Recent studies show that consumers spend a significantly high amount of time interacting with mobile apps than through other channels and less than fifty percent of shoppers say they are less likely to compare products on other channels when using a mobile app. This makes it increasingly important for brand marketers to focus on apps. The mobile app is becoming the new website and just as websites evolved from being a tool for digital marketing to becoming an interactive storefront, the second generation of mobile apps is doing much much more. This is mostly because brands have complete freedom as to what they wish to do with the app. Some brands use their app to share the brand history and campaigns with their customers while some use it as their online store front. Here are some interesting examples of how brands have used their app to give customers a whole new experience with their merchandise.
  • 38. Omni-Channel Retailing - Part 2 May 2014 39/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising Bloomingdale Bloomingdale launched it’s official app called Bloomingdale’s @ 59th and Lex for it’s flagship store. The app included interactive floor maps, information about events and must have picks from the fashion office of Bloomingdale. Whereas Bloomingdale’s Big Brown Bag app apart from allowing customer to search, browse and buy products straight from your phone also comes with an in-store option. This option in-store scanner allows customers to scan products while in the store and check prices, additional product details (including color and sizes available in the store) and read customer reviews. This helps customers stay connected with the brand rather than fraying away to websites of other retailers while looking for additional details about the product.
  • 39. Omni-Channel Retailing - Part 2 May 2014 40/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising Tiffany and Co. The Tiffany and Co Engagement Ring Finder app brings the smooth and uncluttered shopping experience of the Jeweler’s website to smartphones. Users can browse rings by shape, setting, metal, design and six different carat sizes Rings are displayed true-to-size and from multiple angles with zoom functionality. Another interesting feature of this app is the ‘Ring Sizer’ which helps the customer find their exact ring size by placing one of their rings on the screen. Potential customers can also see how it looks on their hand by placing their hand over the screen and photos of this can be saved and shared to get others opinions before finalising on an engagement ring.
  • 40. Omni-Channel Retailing - Part 2 May 2014 41/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising Gucci Gucci’s recent app has various features which connects merchandise to the brand. It allows you to scan product images from a Gucci advertisement in a magazine and these items are directly added to the wishlist in the app. The app also has a store guide to all its stores worldwide. Similar to the Neiman Marcus app, sales associates are notified of customer’s arrival at the store. They receive all details about the customer from their past purchases to shopping preferences to how they look for them to be identified. The brand thereby aims to provide a high level of personalized service for its luxury consumers. By clicking on the touch videos in the store, items in the look of the video appear on the screen along with a QR code. By scanning the QR code, the video is linked with the customer’s iPhone. Now all the items that are selected in the video and dragged into the phone are added to the customer’s wish list on the app. http://fsh.by/LRsK6A When the ‘discover’ option on the app is turned on, customers would get alerts with information about nearby products. This is possible with the use of bluetooth technology. Coffee giant Starbucks generates 4 million a week by mobile payments through its app every week and this trend of payments through apps is fast penetrating into the fashion sector as well. With the growth of mobile POS expected to be more than 95% worldwide in 2014, another very important way in which brands can use apps is for mobile payments. Brands like burberry are opening stores with no cash counters and encouraging mobile payments. Payments through apps will be the next progressive step in this field. By inputting the credit card or bank details of the customer in his app, brands can make payments in-stores extremely easy and safe as well.
  • 41. Omni-Channel Retailing - Part 2 May 2014 42/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising Trends and opportunities of what can be Phillips Intelligent In-Store LED Lighting Ever walked into a departmental store and wasted time just trying to find the product you were looking for? Phillips is piloting a new intelligent lighting system that would make shopping much easier and save you a lot of time. This technology which has been pioneered for use in supermarkets uses a light based communication system to create a positioning grid for your smartphone, telling you which route you would have to take to get to your products. This will give customers a greater control of their shopping experience. Philips is already testing its smart illumination with a handful of supermarkets. In the fashion sector, the mega sized stores of mass market brands or sports brands could also make use of this innovative technology. It is known that most customers check out products on the brand’s website or on the e-commerce page before they enter the store. With the help of this app, brands can use LED lighting to show where the products that the customers browsed through on their website is and directly lead them to it in the physical store. Along the way to reach the product, the app can also show customers offers on nearby products and suggest products. Customers can therefore have a more enjoyable, extremely efficient and less tiresome shopping experience with the help of this technology.
  • 42. Omni-Channel Retailing - Part 2 May 2014 43/46 © Fashionbi - All rights Reserved 1 2 3 Omni-ExperienceWithThe Merchandising IBM Watson powered mobile apps With the growth of IBM’s Watson powered mobile apps, it is now easier than ever for brands to bring their online experiences into their brick and mortar store. This supercomputer enabled app has cognitive computing abilities that allows the app to respond to contact and learn and adapt responses as new information comes in. These apps also have a natural language processing and advanced data analysis that can assess a customer’s relationship with the brand and place personalized context around responses to questions they ask. Several apps powered by IBM’s Watson are already in use in the healthcare industry and many more under development. One such app was developed for Memorial Sloan Kettering Cancer Center in New York. The app which is still under limited use advises doctors on the expected outcomes of the various treatment plans and procedures taking into consideration the information about the patient.
  • 43. This is an excerpt from “Omni-Channel Retailing: The Future Trend in Fashion and Luxury Industry - Part 2/2” (http://fashionbi.com/publication/3) Find the full version of this Publication on the website
  • 44. Omni-Channel Retailing - Part 2 May 2014 / © Fashionbi - All rights Reserved Terms of use This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License This license lets others remix, tweak, and build upon your work non-commercially, and although their new works must also acknowledge you and be non- commercial, they don’t have to license their derivative works on the same terms. Disclaimer Brands’ logos inserted in this report belong to their respective owners and ADVB Strategic Minds doesn’t claim rights over them. Data and informations provided in this report belong to public sources of digital access. ADVB Strategic Minds has no responsability for the accuracy of these sources. The pictures that are on this magazine are copyrighted to their personal owners. The credit is to the owner and in no way we are claiming the right to these photos. The pictures are taken from URL’s on the web and believed to be public. If there is any photo that is needed to be taken down. Feel free to contact us: marketing@ fashionbi.com and we will remove them. We want to be fair and give credit to where it is needed.
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