Omnichannel fashion
strategy: marketplace
role
To become a leading
Fashion e-commerce
protecting brand.
Milan, 26 June 2013
Copyright © 2013 Accenture All rights reserved. 2
Something about Accenture …
Copyright © 2013 Accenture All rights reserved. 3
An end-to-end service unique offering
Strategy
Consulting
Process
Consul...
Copyright © 2013 Accenture All rights reserved. 4
Introducing Accenture Interactive the e-commerce CoE
India Delivery
Cent...
Copyright © 2013 Accenture All rights reserved. 5
Fashion market is changing is
changing quickly, unexpectedly,
digitally
Copyright © 2013 Accenture All rights reserved. 6
Market picture
Copyright © 2012 Accenture. All rights reserved. 7
Clothing & footwear market trend in Europe
Source: Euro monitor, Forres...
Copyright © 2013 Accenture All rights reserved. 8
E-Commerce ecosystem assessment by fashion districts
• Internet adoption...
Copyright © 2013 Accenture All rights reserved. 9
Luxury and fashion market are evolving even in Italy
Sources: MF Fashion...
Copyright © 2013 Accenture All rights reserved. 10
E-Commerce evolution
Functionality/CustomerValue
1st Generation
Experie...
Copyright © 2013 Accenture All rights reserved. 11
Market trends
Copyright © 2013 Accenture All rights reserved. 12
Source: Euro monitor, Accenture Analysis ,
> “Give me control and choic...
Copyright © 2012 Accenture. All rights reserved. 13
Most influencing strategies for Fashion e-Commerce
> Predictions are t...
Copyright © 2013 Accenture All rights reserved. 14
Luxury and fashion market are evolving
>The customer gives
less importa...
Copyright © 2013 Accenture All rights reserved. 15
The most interesting business-case
of the evolving fashion and luxury
p...
Copyright © 2013 Accenture All rights reserved. 16
Business case
Copyright © 2012 Accenture. All rights reserved. 17
Business-Case: Tiffany e-commerce & social integration
Copyright © 2012 Accenture. All rights reserved. 18
Business-Case: Amazon Fashion
Copyright © 2012 Accenture. All rights reserved. 19
Business-Case: Amazon Fashion
Copyright © 2012 Accenture. All rights reserved. 20
Business-Case: Dunhill in-store experience
Copyright © 2012 Accenture. All rights reserved. 21
Business-Case: Bureberry digitalizing store
Copyright © 2012 Accenture. All rights reserved. 22
Business-Case: Farfetch new fashion marketplace
Copyright © 2012 Accenture. All rights reserved. 23
Business-Case: Farfetch new fashion marketplace
Copyright © 2012 Accenture. All rights reserved. 24
Business-Case: Superdry on e-bay
Copyright © 2012 Accenture. All rights reserved. 25
Business-Case: Uniqlo go to China using TaoBao/T-Mall
Copyright © 2012 Accenture. All rights reserved. 26
Business-Case: Hointer fully automated store
Copyright © 2012 Accenture. All rights reserved. 27
Business-Case: Celio* showrooming
Copyright © 2012 Accenture. All rights reserved. 28
Business-Case: Nike-Fuel purchasing everywhere
Copyright © 2012 Accenture. All rights reserved. 29
Business-Case: Nike-Fuel purchasing everywhere
Copyright © 2012 Accenture. All rights reserved. 30
Business-Case: House of Fraser omni-fashion
Copyright © 2012 Accenture. All rights reserved. 31
Business-Case: Nasty Gal a merchandise-experience
Copyright © 2012 Accenture. All rights reserved. 32
Business-Case: Nasty Gal a merchandise-experience
Copyright © 2012 Accenture. All rights reserved. 33
Business-Case: Stories.com e-commerce curation
Copyright © 2013 Accenture All rights reserved. 34
Emerging trends
Copyright © 2012 Accenture. All rights reserved. 35
Business-Case: Google Maps Indoor
Copyright © 2012 Accenture. All rights reserved. 36
Business-Case: In-store Augmented Reality fashion
Copyright © 2012 Accenture. All rights reserved. 37
Business-Case: Google Glasses
Copyright © 2013 Accenture All rights reserved. 38
Common issues
Copyright © 2012 Accenture. All rights reserved. 39
Business-Case: have we controll ?
Copyright © 2012 Accenture. All rights reserved. 40
Business-Case: have we controll ?
Copyright © 2012 Accenture. All rights reserved. 41
Business-Case: have we controll ?
Copyright © 2012 Accenture. All rights reserved. 42
Business-Case: have we controll ?
Copyright © 2012 Accenture. All rights reserved. 43
Business-Case: have we controll ?
Copyright © 2012 Accenture. All rights reserved. 44
Business-Case: have we controll ?
Copyright © 2013 Accenture All rights reserved. 45
So what?
Copyright © 2012 Accenture. All rights reserved. 46
So what? Go to market strategies
1
Owned site
2
Full-outsouring
3
Conr...
Copyright © 2013 Accenture All rights reserved. 47
So what I need to do to became a
leading player in the evolving
omnicha...
Copyright © 2012 Accenture. All rights reserved. 48
2
Forecast potential
New cross-channel market research methodologies
3...
Copyright © 2012 Accenture. All rights reserved. 49
SEARCH
Natural Search,
SEO
Paid Search,
SEM
Search
Capability
Landing ...
Copyright © 2012 Accenture. All rights reserved. 50
1) Define strategy: digital positioning
2
3
4
1
exclusive
accessible
S...
Copyright © 2012 Accenture. All rights reserved. 51
2) Forecast the unexpressed global potential
A B
C D
Exausted Potentia...
Copyright © 2012 Accenture. All rights reserved. 52
2) Forecast the unexpressed global potential
A B
C D
Exausted Potentia...
Copyright © 2012 Accenture. All rights reserved. 53
3) Maximize sales
> We can influence the visitor
volume by activating ...
Copyright © 2012 Accenture. All rights reserved. 54
> We can influence the visitor
volume by activating different
acquisit...
Copyright © 2012 Accenture. All rights reserved. 55
Post-order
Pre-order
Supply chain
Fullfilment Inventory
Finance & Bill...
Copyright © 2012 Accenture. All rights reserved. 56
Post-order
Pre-order
Supply chain
Fullfilment Inventory
Finance & Bill...
Copyright © 2013 Accenture All rights reserved. 57
So what?
Copyright © 2012 Accenture. All rights reserved. 58
So what? … the final takes
> 4th e-Commerce Gen that starts
from the c...
Copyright © 2013 Accenture All rights reserved. 59
Thank you !
Federico Gasparotto
Digital Marketing Offering Lead
Accentu...
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Accenture Omni-Channel Fashion Strategy 2013

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Transcript of "Accenture Omni-Channel Fashion Strategy 2013"

  1. 1. Omnichannel fashion strategy: marketplace role To become a leading Fashion e-commerce protecting brand. Milan, 26 June 2013
  2. 2. Copyright © 2013 Accenture All rights reserved. 2 Something about Accenture …
  3. 3. Copyright © 2013 Accenture All rights reserved. 3 An end-to-end service unique offering Strategy Consulting Process Consulting Technology Consulting Process & System Implementation Infrastructure Operations Application Operations Business Process Operations Accenture As Business Innovation Partner Strategy Consulting Management Consulting IT-Consulting Strategy Process Information Technology Management of Business Processes Comprehensive Know-how through experts and projects across the e2e value chain High implementation complexity through IT and project management Know-How Change Management
  4. 4. Copyright © 2013 Accenture All rights reserved. 4 Introducing Accenture Interactive the e-commerce CoE India Delivery Centers Consumer Goods (Hyderabad) Technology Labs Bangalore, India Operations (Madrid ISC) CRM, S&M, BI, Planning (Milan ISC) ACIN Chicago ACIN Sao Paulo Accenture Interactive e-Commerce Centre of Excellence Milan Philippine Delivery Center (Manila) Supply Chain (Barcelona ISC) Technology Labs San Josè, California Technology Labs Chicago, Illinois High Performance Business Showcase Murray Hill, New Jersey London, UK Technology Labs Sophia Antipolis SAP Retail (Bilbao) Delivery Center (Napoli) Value Led ERP (Bangalore) Oracle Retail (Lodz) Accenture Customer Innovation Network Accenture’s global network of CG&S Industry Solution Centers Global Delivery Network Accenture Tecnology Labs Technology Labs Beijing, China BI, ERP, Agri (Chicago, ISC)
  5. 5. Copyright © 2013 Accenture All rights reserved. 5 Fashion market is changing is changing quickly, unexpectedly, digitally
  6. 6. Copyright © 2013 Accenture All rights reserved. 6 Market picture
  7. 7. Copyright © 2012 Accenture. All rights reserved. 7 Clothing & footwear market trend in Europe Source: Euro monitor, Forrester Research, Fact Finder, Kelkoo, Accenture Analysis , Forbes, Business of Fashion, Accenture Estimation >Global eCommerce market is poised for a double digit growth in the years to come, with the majority coming from the EU and the USA >Fashion and luxury is the second market segment in European Market >The clothing & footwear European Compound Annual Growth Rate of 11,5%
  8. 8. Copyright © 2013 Accenture All rights reserved. 8 E-Commerce ecosystem assessment by fashion districts • Internet adoption: • eComm. adoption: • Evolution index: • Internal / SAS: • Promotion: • Potential: Early adoption Average Late adoption Exhausted Exploitable Exploitable DM + Led + BA Led + BA (mostly) BA 3,6 3,2 2,7 Multiple Mixed Single Quick Quick Quick Source: Forrester Research, Gartner, Forbes, Ovum, Accenture Analysis ,
  9. 9. Copyright © 2013 Accenture All rights reserved. 9 Luxury and fashion market are evolving even in Italy Sources: MF Fashion, Italia oggi, Messaggero
  10. 10. Copyright © 2013 Accenture All rights reserved. 10 E-Commerce evolution Functionality/CustomerValue 1st Generation Experience by Default [Ad hoc] 5% 2nd Generation Experience by Intent [Prioritize & Improve] 35% 3rd Generation Experience by Design [Design & Push] 50% 4th Generation Experience on Demand [Engage & Co-innovate] < 10% Fragmented & inconsistent • Catalog • Shopping cart • Payments Home-grown Manual updating Scaling issues Survey experience Marketing only Basic • Search • Promotions • Merchandising • Order status • Cross sells • Product-centric Single-channel Limited features Measure experience Measure benefits Added features •Searchandising •Customer data profiles for personalized experience • Targeted e-marketing •Guided store navigation for in store search •Social media •User generated content •Web analytics Customer-centric Micro-merchandising Cross-channel Real time testing Continuous experience improvements Optimized for business outcomes Best-in-class
  11. 11. Copyright © 2013 Accenture All rights reserved. 11 Market trends
  12. 12. Copyright © 2013 Accenture All rights reserved. 12 Source: Euro monitor, Accenture Analysis , > “Give me control and choice”: the customers love a brand consistent omni-channel experience The most wanted functionality in a fashion brand site > “Help me, help myself”: customer support is one of the most important elements to decide customer journey in site and stores > “Know me everywhere”: the 21% of customer tent to purchase recommended additional products to complete outfits
  13. 13. Copyright © 2012 Accenture. All rights reserved. 13 Most influencing strategies for Fashion e-Commerce > Predictions are the more players come into the market, the more price competition will become heavier and discount erosion will follow > The M-Commerce growth will continue a rapid growth including couponing, voucher and shopping comparison >Most profitable (increase 65- 70% margin) on-line strategy is the customer reactivation through direct marketing & social-crmSource: Forrester research, Forbes
  14. 14. Copyright © 2013 Accenture All rights reserved. 14 Luxury and fashion market are evolving >The customer gives less importance to the idea of Brand, if he would buy clothes, shoes and accessories. >The asimetric value perception is leveraged by the new business model. >The international crisis is the first reason of this trend.
  15. 15. Copyright © 2013 Accenture All rights reserved. 15 The most interesting business-case of the evolving fashion and luxury players … and some common issue
  16. 16. Copyright © 2013 Accenture All rights reserved. 16 Business case
  17. 17. Copyright © 2012 Accenture. All rights reserved. 17 Business-Case: Tiffany e-commerce & social integration
  18. 18. Copyright © 2012 Accenture. All rights reserved. 18 Business-Case: Amazon Fashion
  19. 19. Copyright © 2012 Accenture. All rights reserved. 19 Business-Case: Amazon Fashion
  20. 20. Copyright © 2012 Accenture. All rights reserved. 20 Business-Case: Dunhill in-store experience
  21. 21. Copyright © 2012 Accenture. All rights reserved. 21 Business-Case: Bureberry digitalizing store
  22. 22. Copyright © 2012 Accenture. All rights reserved. 22 Business-Case: Farfetch new fashion marketplace
  23. 23. Copyright © 2012 Accenture. All rights reserved. 23 Business-Case: Farfetch new fashion marketplace
  24. 24. Copyright © 2012 Accenture. All rights reserved. 24 Business-Case: Superdry on e-bay
  25. 25. Copyright © 2012 Accenture. All rights reserved. 25 Business-Case: Uniqlo go to China using TaoBao/T-Mall
  26. 26. Copyright © 2012 Accenture. All rights reserved. 26 Business-Case: Hointer fully automated store
  27. 27. Copyright © 2012 Accenture. All rights reserved. 27 Business-Case: Celio* showrooming
  28. 28. Copyright © 2012 Accenture. All rights reserved. 28 Business-Case: Nike-Fuel purchasing everywhere
  29. 29. Copyright © 2012 Accenture. All rights reserved. 29 Business-Case: Nike-Fuel purchasing everywhere
  30. 30. Copyright © 2012 Accenture. All rights reserved. 30 Business-Case: House of Fraser omni-fashion
  31. 31. Copyright © 2012 Accenture. All rights reserved. 31 Business-Case: Nasty Gal a merchandise-experience
  32. 32. Copyright © 2012 Accenture. All rights reserved. 32 Business-Case: Nasty Gal a merchandise-experience
  33. 33. Copyright © 2012 Accenture. All rights reserved. 33 Business-Case: Stories.com e-commerce curation
  34. 34. Copyright © 2013 Accenture All rights reserved. 34 Emerging trends
  35. 35. Copyright © 2012 Accenture. All rights reserved. 35 Business-Case: Google Maps Indoor
  36. 36. Copyright © 2012 Accenture. All rights reserved. 36 Business-Case: In-store Augmented Reality fashion
  37. 37. Copyright © 2012 Accenture. All rights reserved. 37 Business-Case: Google Glasses
  38. 38. Copyright © 2013 Accenture All rights reserved. 38 Common issues
  39. 39. Copyright © 2012 Accenture. All rights reserved. 39 Business-Case: have we controll ?
  40. 40. Copyright © 2012 Accenture. All rights reserved. 40 Business-Case: have we controll ?
  41. 41. Copyright © 2012 Accenture. All rights reserved. 41 Business-Case: have we controll ?
  42. 42. Copyright © 2012 Accenture. All rights reserved. 42 Business-Case: have we controll ?
  43. 43. Copyright © 2012 Accenture. All rights reserved. 43 Business-Case: have we controll ?
  44. 44. Copyright © 2012 Accenture. All rights reserved. 44 Business-Case: have we controll ?
  45. 45. Copyright © 2013 Accenture All rights reserved. 45 So what?
  46. 46. Copyright © 2012 Accenture. All rights reserved. 46 So what? Go to market strategies 1 Owned site 2 Full-outsouring 3 Conrolled market-place 4 Demanded (marketplace, flash sales) Profitability Brand protection Speed to market Omni- channaling Catalogue digitalization Management effort Overall impact on P&L: it’ negative it depend it’s positive
  47. 47. Copyright © 2013 Accenture All rights reserved. 47 So what I need to do to became a leading player in the evolving omnichannel fashion market?
  48. 48. Copyright © 2012 Accenture. All rights reserved. 48 2 Forecast potential New cross-channel market research methodologies 3 Maximize sales Econometric model for new channel activation 4 Optimize investments Integration of services, providers, technology 2 3 4Became a leading e-commerce in future market 1 Define strategy Brand positioning and customer experience by channel 1
  49. 49. Copyright © 2012 Accenture. All rights reserved. 49 SEARCH Natural Search, SEO Paid Search, SEM Search Capability Landing Page Optimisation iMEDIA Standard Display Ads Rich Media Ads Broadband Video Web TV WEB SITE Branded Sites Affiliate Site Promotional Site Usability & Accessibility Analytics, Web Site Optimisation PARTNERSHIPS Content Syndication Comparison Sites, Shopping Directories Sponsorships, Co-branding Philanthropic Cause Marketing E-COMMERCE Direct to Consumer Where to Buy Functionality Branded Storefront Sell Direct on Third-Party Site Technical Platform MOBILE Mobile Browser Mobile Aps QR Codes, GPS RFID POS Text Messaging CRM Loyalty Platform Behavioral Targeting & Acquisition Cross-sell Engine Retention & WinBack Campaigns, Email, Reporting SOCIAL Online Video Communities, Answer Forums Word-of-mouth, Buzz, Referrals Wikis, blogs, Crowd Sourcing Product Innovation Multichannel Customer Journey DIGITAL CAPABILITIES TO LEVERAGE OFFLINE FOUNDATION AWARENESS ADVOCACY PURCHASE CONSIDERATION LOYALTY ONLINE Identification of Need Search for Solution Evaluate Alternatives Product Details Visit to the store Purchase Decision Visit to the brand website Compare Offers Online Purchase Social Interaction Online Registration Mobile App Offline Purchase 19% 81%Time Spent 1) Define strategy: omnichannel 2 3 4 1 2 3 4 1
  50. 50. Copyright © 2012 Accenture. All rights reserved. 50 1) Define strategy: digital positioning 2 3 4 1 exclusive accessible Source: Marci Ikeler – digital strategy for luxury brand DigitalTV Print In-Sotre Events VIP Events 1 “Because the internet is founded on principles of accessibility and democracy, luxury brands generally use digital as a way to spread the brand's dream and mythology. Digital communications can play a valuable and critical role in spreading information about the brand.” exclusive accessible TV Print In-Sotre Events VIP Events 2 Digital The role of «digital» approached with a standard stragy The new role of «digital» approached with a seamless luxury stragy 2 3 4 1
  51. 51. Copyright © 2012 Accenture. All rights reserved. 51 2) Forecast the unexpressed global potential A B C D Exausted Potential Brand Popularity eCommerceTraditional Businessbychannel >The first step to define the commercialization spread roadmap is the estimation of the multichannel potential by country >To define multichannel potential in all the countries where brand is currently operating we need to consider, normalize and aggregate inhomogeneous business lever as: > Visitor Factor: Visits, time spent > Trend Factor: brand trend, SERP, bidding values > Population Factor: population by country > Penetration Factor: internet & eCommerce penetration by country > Diffusion Factor: direct and wholesale store number > Commercial Factor: direct and wholesale sales volume > Activation Factor: business start-up readiness > Security & Issue Factors: unpredictable factors 2 3 4 1
  52. 52. Copyright © 2012 Accenture. All rights reserved. 52 2) Forecast the unexpressed global potential A B C D Exausted Potential Brand Popularity eCommerceTraditional Businessbychannel >The first step to define the commercialization spread roadmap is the estimation of the multichannel potential by country >To define multichannel potential in all the countries where brand is currently operating we need to consider, normalize and aggregate inhomogeneous business lever as: > Visitor Factor: Visits, time spent > Trend Factor: brand trend, SERP, bidding values > Population Factor: population by country > Penetration Factor: internet & eCommerce penetration by country > Diffusion Factor: direct and wholesale store number > Commercial Factor: direct and wholesale sales volume > Activation Factor: business start-up readiness > Security & Issue Factors: unpredictable factors Trend factor 2 3 4 1
  53. 53. Copyright © 2012 Accenture. All rights reserved. 53 3) Maximize sales > We can influence the visitor volume by activating different acquisition channels focused on re-activation tactics and performance strategies >The most relevant lever to consider is the conversion rate that is influenced by a mix of commercial and UX elements >The average ticket is also influenced by the capability of a brand to enhance the shop-the- look and outfit experience Client Acquisition Real time Bid Re target Display Affiliation CRM loyalty E-mail Market palce Re market Key word CRM loyalty 2 3 4 1
  54. 54. Copyright © 2012 Accenture. All rights reserved. 54 > We can influence the visitor volume by activating different acquisition channels focused on re-activation tactics and performance strategies >The most relevant lever to consider is the conversion rate that is influenced by a mix of commercial and UX elements >The average ticket is also influenced by the capability of a brand to enhance the shop-the- look and outfit experience Click Through Channeling Traffic Turnover Commercial Levers Transactions Organic Lead Awareness Information Acquisition Customer Thrust User Experience Reactivation Conversion Phisical (store) Digital / Mobile 3) Maximize sales 2 3 4 1
  55. 55. Copyright © 2012 Accenture. All rights reserved. 55 Post-order Pre-order Supply chain Fullfilment Inventory Finance & Billing PaymentFinancial Analytics & Reporting ReportingAnalytics Web Platform CRM Customer Shopping Marketing & Sales Paid Media Owned Media ContentCommercial Assortment management Product content Editorial content Social content Product Data Mgmt Pricing Mgmt. Assortment Planning Benchmark Collaboratio n Photo Mgmt. Image Mgmt. Description Mgmt. Graphic Designer Naming & Labelling Mgmt Store info mgmt. Copywriting Blogs Mgmt. Community Mgmt. Ratings & Reviews Social Media Administration Translation Service Promotion Mgmt. SEOSEM Affiliation Mgmt. Retargeting Remarketing Commission Deduplicatio n email Marketing Comparison Shopping Gift /Voucher Mgmt Loyalty Mgmt Cross/Up Sell Mgmt. Clustering Mgmt. Segmentatio n Mgmt. Funnel Optimization Invoice Mgmt Reconciliatio n Mgmt. Tax Mgmt. Payment & Process Mgmt. Fraud Mgmt Stock Mgmt. 3PL contract Mgmt Warehousin g Mgmt. Transportati on Mgmt. Auditing Service Sales Tracking Alert Monthly Reporting Service Web Analytics Marketing Analytics Shopping Analytics Fulfilment Analytics Returns Mgmt Replenishme nt Mgmt 3PL / Carrier selection Collaboratio n Store integration Customer Care Support service Online Service Product Returns Mgmt Orders Mgmt Administrati ve Service Facility mgmt Application mgmt Licencing mgmt Reservation / Pick 2 3 4 1 4) Optimize investiment
  56. 56. Copyright © 2012 Accenture. All rights reserved. 56 Post-order Pre-order Supply chain Fullfilment Inventory Finance & Billing PaymentFinancial Analytics & Reporting ReportingAnalytics Web Platform CRM Customer Shopping Marketing & Sales Paid Media Owned Media ContentCommercial Assortment management Product content Editorial content Social content Product Data Mgmt Pricing Mgmt. Assortment Planning Benchmark Collaboratio n Photo Mgmt. Image Mgmt. Description Mgmt. Graphic Designer Naming & Labelling Mgmt Store info mgmt. Copywriting Blogs Mgmt. Community Mgmt. Ratings & Reviews Social Media Administration Translation Service Promotion Mgmt. SEOSEM Affiliation Mgmt. Retargeting Remarketing Commission Deduplicatio n email Marketing Comparison Shopping Gift /Voucher Mgmt Loyalty Mgmt Cross/Up Sell Mgmt. Clustering Mgmt. Segmentatio n Mgmt. Funnel Optimization Invoice Mgmt Reconciliatio n Mgmt. Tax Mgmt. Payment & Process Mgmt. Fraud Mgmt Stock Mgmt. 3PL contract Mgmt Warehousin g Mgmt. Transportati on Mgmt. Auditing Service Sales Tracking Alert Monthly Reporting Service Web Analytics Marketing Analytics Shopping Analytics Fulfilment Analytics Returns Mgmt Replenishme nt Mgmt 3PL / Carrier selection Collaboratio n Store integration Customer Care Support service Online Service Product Returns Mgmt Orders Mgmt Administrati ve Service Facility mgmt Application mgmt Licencing mgmt Reservation / Pick 2 3 4 1 4) Optimize investiment
  57. 57. Copyright © 2013 Accenture All rights reserved. 57 So what?
  58. 58. Copyright © 2012 Accenture. All rights reserved. 58 So what? … the final takes > 4th e-Commerce Gen that starts from the customer experience is seamless and omni-channel >E-Commerce is strategic for fashion brand to rethink your model and win in a changing market > Exhaust the brand potential by activating and leveraging the acquisition channel thrusts >E-Commerce is not rocket science >Preserve your brand during full customer journey
  59. 59. Copyright © 2013 Accenture All rights reserved. 59 Thank you ! Federico Gasparotto Digital Marketing Offering Lead Accenture Interactive Tel: +39-331-7550490 @: federico.gasparotto@accenture.com Blog: www.gasparotto.biz Linkedin: it.linkedin.com/in/federicogasparotto

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