Squared Online 2013 - Module 2 – Claire Nash - Stylr

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Squared Online 2013 - Module 2 – Claire Nash - Stylr

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Squared Online 2013 - Module 2 – Claire Nash - Stylr

  1. 1. Updated with all of the latest fashion trends YOUR celebrity icons are wearing, Stlyr gives you a completely personalised and taylored experience when shopping for clothes online whislt at home and on the move. “Dress like an icon” Stylr provides a hassle free shopping experience by bringing items of clothing, from all fashion retails suited to your celebrity icons styles, so that you don’t have to shop around for the ideal piece or right price. Claire Nash Module 2 - Google squared November 2013
  2. 2. The Business Idea A portal updated with all of the latest fashion trends of your favourite style icons Push notifications when in close proximity of a shop that has stock of your ‘favourite’ item Coupons that help you save when buying all of the latest fashion trends A completely tailored website experience based on the individuals style preferences Relevant items of clothing pulled in from all fashion retailers so there is no need to shop around The ability to find the ideal item of clothing with search functionality Providing the ability to find an item of clothing when out and about
  3. 3. Overview of the fashion industry Global apparel retail industry value forecast (2014-2017) $1,800 Spending on fashion items 1999-2009 Breakdown of UK fashion industry GVA by type of product 6% $1,600 5% $1,400 $1,200 4% $1,000 3% $800 $600 2% $400 1% $200 $0 0% 2014 2015 $ Billion 2016 2017 % Growth In 2017 the global apparel retail industry is forecast to have a value of $1,562.6 billion. The compound growth rate from 2012-17 is predicted at 4.6% Sources: British Fashion Council, MarketLine The UK fashion industry is estimated to have directly contributed £20.9 billion to the UK economy in 2009 making it the 4th largest sector behind Travel and Tourism, Telecommunications, and Real Estate. Women's and menswear make up the largest proportion of GVA within the fashion industry
  4. 4. Overview of the fashion industry online Online retail sales category breakdown Consumer electronics and appliances Apparel Media, toys and games Food and drink Furniture and homeware Beauty and personal care Home improvement and home care Other* World 25% 19% 12% 5% 4% 3% 2% 30% United Kingdom 10% 18% 20% 14% 4% 2% 2% Apparel is the second largest online retail sales category in the world behind consumer electronics. 30% Second largest category in the UK behind media, toys and games. *’Other’ includes consumer healthcare, tobacco, pet food and pet care, tissue and hygiene products, prescription drugs, sports equipment, watches, sunglasses, handbags, jewellery, antiques, souvenirs, collectibles, bicycles, candles, vases, pictures frames, and pictures. Sales of services, subscriptions, travel and tourism, and tickets are excluded Worldwide search terms for ‘Beauty and Fitness’ (2009-2014) 40% 35% 30% 25% 20% 15% 10% 5% 0% 2013 2012 2011 2010 2009 -5% Sources: Euromonitor, Google Trends, Opera Capital Partners Search interest for ‘Beauty and Fitness’ rose from a yearly average of 2.62% in 2009 to 31.96% in 2013. Purchased goods or services on the Internet via smartphones (2012) Clothing and accessories 15% 35% 25% Books (including ebooks) Consumer electronics 26% Other 35% YoY growth of clothes purchases via Smartphone in Europe from May 2011 to May 2012
  5. 5. The appropriate time for Stlyr... High street love affair: celebrities are working with high street brands New Look become no 1 in volume for women’s footwear (New Look Annual Report) We’re obsessed with showing off how we look 35 million selfies taken in Britain each month (HTC) Sales increased to £802m (Telegraph) Sales lift by 10% (Mail Online) Apparel shoppers need direction More than 1 in 3 consumers are unsure of what brand and where to buy (Google, Moving Apparel Shoppers from Undecided to Decided in the Path to Purchase, 2012) Consumers what a persoanlised shopping experience delievered by mobile 39% want to receive peronsalied promotions (Marketing Week) Mobiles are becoming important shopping tools 95% of consumers have researched a product or service on their phone (Google 2012) Online retail industry will be worth £50 billion by 2018 Online shopping accounts for £1 in every £7 spent (Verdict 2013)
  6. 6. Customer Segmentation (Female) Group Overview Key demographics Shopping behaviour Internet usage Source: Experian Individual Urban Trend High Fashion for Less Image as Identity Best Dresses Fashionista (1.25% of total adults) (4.18% of total adults) (3.31% of total adults) (2.45% of total adults) Young, urban women with confident style and mid-range spending habits Young women who are keen fashion followers and who skilfully craft their wardrobes from within their budgets Young women who achieve peer approval through clothing on a very limited budget Young women with a high spending capacity who dress in the best labels Age: 18 – 35 Sharers and cohabitees Urban flats Upmarket areas Age: 18 – 25 Living at home with parents Low income High disposable income Age: 18 – 25 Living with parents Low income Low-value housing Age: 18 – 25 Often living with partners Wealthy homes High disposable income Buy for self only Pay full price Buy using debit card Buy to express personality Buy latest trends Below average overall spend Spends on carefully selected higher price items Buys full price Lowest spend Spend a lot of time shopping Fashion very important Brand and style are key issues Very high spend per purchase Designer labels Focus on quality and style Use sales to buy even more expensive items
  7. 7. Customer Segmentation (Female) Group Functional Fashion Seekers Budget Image Distinguished Classics Brand Boy (3.13% of total adults) (3.14% of total adults) (1.86% of total adults) (3.44% of total adults) Overview Fashion-conscious young men who search out style at a reasonable price Young men with a low budget but a high sense of image Men who buy high-quality items in a classic but considered style Young men for whom brand and image is everything Age: 18– 25 Living with parents or sharing Low-value flats or houses Age: 26– 45 Singles and sharers Urban flats High movement Age: 46– 55 Families with older children High income Age: 18– 25 Living with parents Moderate housing Fashion-conscious Time spent on clothing Below average spend Limited budget Low spend Seeks new trends Like to make a statement with clothes Doesn’t buy in sales High spend Likes sales Buys good quality Prefers classic look Brand and styling important Above average spend Buys just for themselves Enjoy shopping Key demographics Shopping behaviour Internet usage Source: Experian
  8. 8. Value proposition Single point for finding the latest fashion items you’ll want to wear, at a price you’ll want to pay, whilst shopping at home and on the move.
  9. 9. Technology platforms… responsive website and app
  10. 10. DESKTOP AND TABLET PLATFORM – KEY FEATURES Features Reasoning Select celebrities fashion style to dictate what clothes are shown Less than 1% of retailers offer a truly personalised experience (Retail Week) Filter item searches by size, colour and price Hover box to show detail on clothes 60% of consumers what to filter search results for items by size colour and price when shopping for clothes online 55% want a hover box (Econsultancy) Multiple purchase and delivery options (including collecting from store) 31% of consumers want a fixed delivery date 24% want to collect from store 24% want next day delivery (Econsultancy) ‘My Purse’ gives customer coupons/deals tailored to their fashion references and shopping habits 39% of consumers have redeemed a mobile coupon in-store (Nielsen) ‘Favourite’ items can be added to a wish list or used with the app push notifications 71% of 18-24 year olds use their smartphone on-the-go 63% of 25-34 year old use theirs on-the-go (Google Our Mobile Planet 2013)
  11. 11. 62% of UK population own a smartphone, of which, • 91% (approx. 5.7 million) are 18-24 years old • 85% (approx. 7.3 million) are 25-34 years old Activities on Smartphone (Used last 7 days) 80 Used an app 70 Browsed the Internet 60 24% of consumers have Used a search engine for product search 50 17% of consumers have 16% of consumers have 31% 56% of which of consumers have Purchased a product or service 40 Used a search engine for a general search 30 Accessed a social network 20 Reviewed websites, blogs or message boards 10 Looked up directions or used a map Used online/mobile coupons for shopping 0 18-24 25-34 Sources: Google 2012, Wikipedia intentionally used their smartphone to compare prices and inform themselves about products changed their mind about purchasing a product/service in store as a result of information gathered from their smartphone changed their mind about purchasing a product/service online as a result of information gathered from their smartphone purchased a product/service on their smartphone have made a purchase in the past month
  12. 12. Location of Usage (Used last 7 days) Actions taken after Local Search 100 50 90 45 80 40 70 35 60 Home 50 On-the-go 40 In a store Called the business or service Made a purchase from a business in-store 30 25 Made a purchase from a business online 20 Visited a business 30 15 20 10 10 5 0 Visited the website of a business or service Looked up business or service on a map or got directions 0 18-24 25-34 This information should: • Dictate the day parts to run mobile advertising (morning, lunch, evening) • Help develop a sophisticated retargeting campaign between desktop and mobile platforms Source: Google Our Mobile Planet 2013 18-24 25-34 This information should: • Dictate the importance of giving the mobile user the easy of calling a store, and locating & directing them to a store on both the app and mobile desktop
  13. 13. MOBILE PLATFORM AND APP – KEY FEATURES Features Reasoning Select celebrities fashion style to dictate what clothes are shown Filter item searches by size, colour and price Hover box to show detail on clothes As detailed on previous slide Multiple purchase and delivery options (including collecting from store) ‘Favourite’ items can be added to a wish list or used with the app push notifications ‘Get me there’ map 28% of 18-24 yo & 32% of 25-34 yo looked up business map/directions after a local search on their smartphone (Google Our Mobile Planet 2013) Push notification (when is close proximity of a ‘favourite’ item) 38% of consumers are unsure of what brand to buy and where (Google, 2012) ‘My Purse’ used to collect loyalty points Probability of selling to an existing customer is 60-70% (Econsultancy)
  14. 14. Competition • • • • • Directs visitors through to fashion retailers websites Not easy to search for celebrities No option to select your favourite celebrity styles and show trends on future visits Inconsistency between UK and US product pricing Home page ranking 3 • • • • • Website centralises fashion labels Does not focus on celebrity style, but about making those who are interested in fashion famous 67m website visits Mobile accounts for over 30% of traffic Home page ranking 7 • • • • • Advises items of clothing matching, or similar to, a celebrities look Directs visitors through to the fashion retailers website Limited number of celebrities listed Not easy to find an inspirational outfit and where to find the items of clothing Home page ranking 3
  15. 15. SWOT analysis Strengths • • • • • • • Personal experience Number of fashion partners provides variety and competitive pricing Ease of locating store that stocks ‘favourite’ fashion items Updated with latest looks of your favourite fashion icons Multi-platform experience Accessibility – store coverage across the UK Affordable – regularity of deals Opportunities • • • Rise of new mass markets abroad such as Brazil, Russia and China provides intentional expansion possibilities Online sales with the fashion industry are predicted to continue to grow Brand expansion into make-up and hair products Threats • • • • • Competitors adopting the business idea New entrants Ageing population may have impact on the size of the 18-24 market Popularity of independent fashion outlets increasing Competitors showcasing items of clothing more rapidly Weaknesses • • • Competing against brands with established brand images Difficult to manage with numerous product lines Customer service difficult to maintain
  16. 16. Key factors driving the marketing strategy Consumers take a multi-device path to purchase Apparel shoppers are unsure what brand to buy and where Consumers want a personal shopping experience (especially on mobile) Smartphones are becoming important shopping tools (product research location and purchase)
  17. 17. Marketing Objectives (overview of 3 years) Stlyr Desktop website Tablet website Mobile website App Transactions Transactions Transactions Downloads 3.15m transactions 689k transactions 462k transactions Conversion Rate Conversion Rate Conversion Rate 5.6% conversion rate 2.6% conversion rate (including redemption of coupon in store) 1.2% conversion rate (including redemption of coupon in store) App rank in the top 3 fashion brands on Google Play and iTunes = downloaded by 2.6% of the UK population who own a smartphone (1m downloads) Site Visits Site Visits 26m total website visits 38m total website visits 4 star rating on both Google Play and iTunes Repeat Purchasing Repeat Purchasing Transactions Repeat purchase every 60 days = 113k individual customers Repeat purchase every 90 days = 115k individual customers Reviews Site Visits 56.3m total website visits Repeat Purchasing Repeat purchase every 45 days = 388k individual customers Account for 30% of m-commerce sales Repurchasing 1.7% of app users repurchasing (including redemption of coupon in store) through app every 90 days = 66.7k purchases annually Page ranking Appear within the top 3 page results for 50 keywords Coupon Redemptions 10% of all coupons Transactions (including redemptions of in store) Account for 49% of all sales = 662k purchases Customer base and Transactions 4.5 millions transactions = £12m revenue 634,114 individual customers
  18. 18. Marketing Plan (year 1) Awareness Knowledge Consideration Selection Pre-purchase Display banners on 3rd party websites (across desktop and mobile device) Purchase Coupon Google Maps Satisfaction Loyalty Advocacy Post-purchase Email: review request and personalised deals Retargeting display banners on 3rd party websites (across desktop and mobile device) Company blog Press /newspaper ads Company blog Company website and app Retargeting: banner, social media and PPC advertising App push notification Retargeting: banner, social media and PPC advertising Email sign up Social media profiles and advertising Google Maps SMS confirmation PPC and SEO (desktop, tablet, mobile) PPC (desktop, tablet and mobile) Email confirmation Social media profiles and advertising Exclusive event
  19. 19. CUSTOMER JOURNEY Aspiration I love Rita Ora’s style and I’d love to find an outfit she would wear” “I need a new outfit for Beth’s birthday party” Customer mind-set Consideration Brand Advocate “I found the ideal outfit at a price I am willing to pay” “Stlyr updates me with all of the latest styles of my favourite celebs. I’ll purchase from them again/tell my friends about them” Using • • • • • • • • • • • • Blog (company and affiliates) • Content marketing • Reviews • Social Media • Website • Email (sign up) • PPC • SEO • Location/maps • Incentives • • • • • • • • • • • • Digital display Social media (profiles) Social media (advertising) Email (sign up) Press ad PPC SEO Press releases/newspaper Partners Celebrity endorsement Mobile ad App Website Social (sharing) PPC (local) Email (confirmation) SMS (confirmation) Location/maps Coupons/deals Loyalty Purchasing Moment of Sale Researching Explore & Consider Awareness Witnessing Content marketing Blog Exclusive events Celebrity endorsement Retargeting • • • • • • Digital display Email App (push notifications) PPC SEO Social media (advertising) Becoming inspired • Blog • Friends • WOM Sharing • Social media (profile) • WOM
  20. 20. Revenue Stream Revenue will be generated from: Commission from Partners 5% of each transaction will be paid on the app and mobile website 11% of each transaction will be paid on the tablet and desktop website Advertising Advertising will be available with the app and on the mobile, tablet and desktop website on a CPM basis Potential Partners
  21. 21. Costing, Profit & Growth Plan Profit (3 year projection): £10,601,531 Growth Plan Year 1 Targets • • Development of Google Play app released in the UK Partner with 30 of the UK’s biggest (300+ stores) fashion retailers Year 2 • • • • • Development of iTunes app released in the UK and US Google Play app released in the US Expand relationship with 5 UK fashion retailers to the US Extend product offering to makeup and hair products Develop the sophistication of the Google Play and iTunes app as well as the functionality of the website Year 3 • • • Develop markets in Brazil, Russia and China Acquire new partners in the US Continue to develop the sophistication of the Google Play and iTunes app as well as the functionality of the website

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