1. Customer Journey Fashion
Laurent de Groof
Managing consultant Media at GfK

2. Bankruptcy in the fahion market: jun ‘11-okt ‘13: a difficult period.
Bron: ConsumerJury

3. Online fashion is growing rapidly, clothing, shoes and
accessory!
Development in fashion clothing and shoes & accessoires: online/offline (* Billion €)
9.2
9.2
9.2
9.1
8.5
Fashion kleding Totaal
-13%
billions
8.1
Fashion schoenen &
accessoires Totaal
-7%
3.0
3.1
2.9
2.9
3.0
0.8
0.9
Fashion kleding Online
2.8
+83%
0.7
0.6
0.5
0.5
Fashion schoenen &
accessoires Online
0.1
0.1
0.2
0.2
0.3
0.4
MAT aug08
MAT aug09
MAT aug10
MAT aug11
MAT aug12
MAT aug13
+243%

4. Development of the fashion market shows strong correlation
with the consumer confidence index
30
115
20
110
105
10
100
0
95
-10
90
-20
85
-30
80
-40
75
-50
70
Consumer Confidence
Index Fashionmarkt in bestedingen
Consumer Key Indicators Jan 2000 – Aug 2013
en index Fashionmarkt t.o.v. jan07-Jun07
Bron: CBS en GfK Consumer Jury

5. The biggest loss for men’s fashion
Bovenmode
dames 12+
Spendings
Bovenmode
heren 12+
Bovenmode
kind en
babymode
Bodyfashion 2+
Reis- en
lederwaren
Schoenen 2+
Jeans
95
92
97
96
101
97
101
And in online?
Ontwikkeling per markt – totaal
Index t.o.v. MAT augustus 2012
Bron: GfK Consumer Jury

6. Growth in online spendings for segments in the market.
Bovenmode
dames 12+
Spendings
online
Bovenmode
heren 12+
Bovenmode
kind en
babymode
Bodyfashion 2+
Reis- en
lederwaren
Schoenen 2+
Jeans*
118
111
126
116
159
125
127
Ontwikkeling per markt – totaal
Index t.o.v. MAT augustus 2012
Bron: GfK Consumer Jury

7. Top 5 retailers: clothing
Totaal
Online
MAT aug 2008
MAT aug 2013
MAT aug 2008
MAT aug 2013
Top 5: 19,1%
Top 5: 21,9%
Top 5: 59,4%
Top 5: 40,3%
Bron: GfK Consumer Jury

8. Number of clients trippled, but also loyalty at Zalando increased in the
last three years
Loyaliteit Zalando
Loyaliteit Zalando
Loyaliteit Zalando
MAT aug 2011
MAT aug 2012
MAT aug 2013
€ 173,8%
€ 177,10%
€ 179,11%
€ 1024,-
€ 974,-
€ 942,-
Aantal Zalando kopers:
209.000
Aantal Zalando kopers:
413.000
Aantal Zalando kopers:
606.000
Bron: GfK Consumer Jury

9. Customer Journey Women’s Fashion
Planned purchase for upper wear
Jun 2012 – Jan 2013

10. The role of digital for women’s fashion
Key stats
%
50
PLANNED PURCHASE
%
13
OF WOMEN’S PLANNED
FASHION PURCHASES ARE
MADE ONLINE
%
63
OF PLANNED PURCHASES
ARE PRECEDED BY ONLINE
RESEARCH

11. An Intro to Women’s Fashion Buyers and their Purchases
Women‘s Fashion Buyers and their Purchases
77.0
13%
The share of
purely offline
buyers is
decreasing
74.7
73.5
72.6
Pure offline
buyers
Online and
offline buyers
23.1
23.5
24.2
2.4
2.3
3.0
3.2
2009
Of women’s fashion purchases are
made online
20.7
2010
2011
2012
Pure online
buyers
Source: GfK E-fashion market information
63%
Of purchases are preceded by
online research
198
181
Online
revenues
are growing
quickly
146
100
104
98
Online
115
Offline
99
99
95
85
mar 08 mar09 mar10 mar11 mar12 mar13
Source: GfK E-fashion market information
11

12. Research design of the purchase journey
12

13. Method: Media Efficiency Panel
Purchase and media behavior of the same individuals (single source)
Fashion purchase
specs
Google
search
queries
Questionnaire:
Claimed
behavior
Plug-in: real
online search
behavior
(passively measured)
Offline
research
&
Consideration
set
Websites
visited
(URL’s)
Psycho
graphic
Personal
Information
(registered panel
information)
Demographic

14. Method: Sampling panel
Recruiting sample from a subset of the total panel
Total GFK panel
With plug in
Purchased fashion item(s)
Active use
14

15. Method: Data collection
Actual and claimed behavior
A
Screening (intention to buy?)
Questionnaire
Intention
• To buy clothes
• Purchase channel
• Initial consideration set
B
Purchase & Offline Research
Questionnaire
Purchase
• Brand
• Type of clothing
• Purchase channel
• Eventual consideration set
Offline research
• How?
• When?
• How long?
Shopper segmentation
• calculative
• informed
• Passive
• passionate
C
Online Research
Plug-in
Step 1: Software installed on
panelists PC’s/ Notebooks
Continuous registration of
• Websites (url’s) visited
• Time spend on websites
• Google search queries
• Much more
Step 2: Relevant1 websites and
search queries are extracted from
their continues registration.
Step 3: All online research (relevant
website visits/ search queries) 3
months before purchase constitute
the database of the study.
1Relevant
websites and ‘search queries’ are those
that are related to the researching for clothing. A
listing and categorization of these are in included
in the appendix.

16. Offline orientation categories
Offline actions
Offline acties
Visit stores
Window shopping
Read folders
Discuss with family and friends
Read magazines/Watch TV
* A complete list of websites is attached in the appendix

17. Website categories
Online actions
Website category
Example
Retailer
Missetam.nl
Brand
Desigual.com, Esprit.nl
Department store
VD.nl, Wehkamp.nl
Blog/fashionrelated
Fashionchick.nl
Comparison site
Vergelijk.nl
Discount site
Folders.nl
Social Media
Facebook
* A complete list of websites is attached in the appendix

18. The purchase journey of a planned
women’s fashion purchase
18

19. Research for online and offline purchases differs strongly
Comparing online and offline purchases
Total (n= 480)
6
Online purchase (n= 68)
15
13
Ø number actions Timespan in days
Ø number actions Timespan in days
70%
32%
63%
95%
Offline research
Offline research
Online Research
Online Research
%
#
6
8
15
10
Ø number actions Timespan in days
Ø number actions Timespan in days
32%
32%
94%
95%
Offline research
Offline research
Online Research
Online Research
%
#
Offline purchase (n= 412)
6
15
14
Ø number actions Timespan in days
Ø number actions Timespan in days
76%
32%
58%
95%
Offline research
Online Research
%
#
24%
41%
3.0
1.7
36%
41%
2.3
1.7
Used Search
Ø search actions*
22%
41%
1.7
3.2
Used Search
Ø search actions*
Used Search
Ø search actions*
62%
94%
75 minutes
94%
Used Websites
98 minutes
56%
94%
Total time spent
Used Websites
73 minutes
Total time spent
Used Websites
Total time spent
#
2.1
0.9
0.5
Ø store visits**(*) Ø offlinecirculars**
Ø read actions***
#
1.5
1.2
0.5
Ø store visits**(*) Ø offlinecirculars**
Ø read actions***
#
2.1
0.9
0.5
Ø read actions***
Ø store visits**(*) Ø offlinecirculars**
Base: Purchases preceded by online or offline research / Purchases where search was used / Purchases where websites were used / Purchases where offline was used
19

20. Online purchases usually starts with a website visit,
whereas offline purchases start with an offline store visit
First action in research process
%
44
35
31
18
17
17
10
4
Visit stores + window
shopping
4
Department store
website
Retail website
Online purchases (n=68)
Read circulars
5
Google search
Offline purchases (n= 412)
Base: Online and offline purchases
20

21. For online purchases, relatively more time is spent on online
research, while for offline purchases more time is spent on offline
activities.
Average time spent on research process: online vs. offline purchases
Online
98 minutes
• During the research
process, more time is spent on
online research for online
purchases, while the opposite is
the case for offline purchases:
relatively more time is spent on
offline research.
n = 68
• The research process of online
purchases takes approximately
1.5 hours, while the process takes
1.25 hours for offline purchases.
Offline
73 minutes
n = 412
Base: Purchases for which online or offline orientation is used (n=480)
21

22. 94% of online purchases is preceded by website
visits, 36% is preceded by Google search and 32% is
preceded by offline research
Usage of online and offline sources: online purchases
n = 68
Used Google Search
n = 68
Visited relevant websites
n = 68
Offline research
6%
Yes
No
36%
64%
94%
# websites visits
# search actions
6.2
Yes
No
32%
68%
2.3
Yes
No
# offline actions
3.1
Base: Online purchases preceded by online or offline research // Online purchases preceded by a specific source during the research process
22

23. For offline purchases less online research is
done, however when used, it’s similar to an online
purchase
Usage of online and offline sources: offline purchases
n = 412
# websites visits
4.9
n = 412
# search actions
n = 412
# offline actions
3.2
3.3
Base: Offline purchases preceded by online or offline research // Offline purchases preceded by a specific source during the research process
23

24. While most traffic is offline, there is a lot of traffic
between retailer and department store websites
Transition analysis all purchases (n= 480)
Retail
website
8%
4%
Search
(45%)
2%
Social media
3%
• In an average
purchase, most traffic
takes starts with an
offline action.
Comparison website
5%
(24%)
1%
3%
• There is also much traffic
(2%)
(2%)
2%
Finish
(100%)
5%
3%
Start
2%
(100%)
8%
2%
3%
between retail websites
and websites of
department stores.
2%
7%
2%
Blog/Fashionrelated
(1%)
2%
Offline
(70%)
19%
2%
Discount
website
(0%)
10%
Department store
website
Brand
website
(8%)
(45%)
Base: All purchases for which online or offline orientation is used (n = 480)
The percentages shown at each source illustrates what % of all buyers who did research, used this source to do research, e.g. the reach.
The percentages next to the lines illustrate what % of all actions are between those two sources. The color of the line indicates the direction of the action (e.g. a visit to
website A followed by a visit to website B).
24

25. The average journey of a purchase consists of 3 website
visits, 1 search action and 1 offline action
Average purchase journey
Retailer
website
Brand
website
Department
store website
Search
Visiting
Reading
6 actions – 75min – 13 days
25

26. b.
Take aways
26

27. Key take-aways
The internet plays an important role for women‘s fashion
Online sales fashion market is growing with double digits
• Online fashion market more than doubled in the last three years. Decline especially in women’s
en men’s upper wear.
• Concentration in the online fashion market far bigger than in the bricks market. Top 5 retailers take
more than 40% of the market, in the bricks market this only 22%
The majority is purchased offline with lots of online research
• 13% of planned purchases for women’s upperwear are made online. Online revenues for fashion
have doubled since 2008
• 63% of all purchases are preceded by online research, for online purchases this is still 58%
Consumers’ journey is diverse and intense
• The average journey takes 13 days and involves 6 actions
• For online purchases the number of action is higher (8) but the length of the journey is shorter
(10 days).
• Search engines are used in 24% of the journeys, mainly with branded and hybrid search terms.
• Offline sources are used for 70% and mostly entails visiting stores and reading circulars
27

28. Laurent de Groof
Managing consultant
Tel: +31-(0)162-384 363
E-mail: laurent.de.groof@gfk.com