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E-commerce in fashion
industry
E-commerce in fashion industry
Just 10 years ago many in the
retail industry did not believe that
consumers would ever take to
buying fashion online.
How wrong they turned out to be.
Not only have retailers sprung up
offering fashion items at all price
points online, but high street
retailers are finding that the
percentage of their sales going
through their website is increasing
year on year.
Source: http://mediazone.brighttalk.com/comm/sitedata/c52f1bd66cc19d05628bd8bf27af3ad6/download/9174_Etail%20Report%202011-lores.pdf

2
Example: Apparel & accessories sales in US
Online apparel sales continue to
capture a greater share of US retail
ecommerce sales, as the category.
A mix of larger and smaller online
product categories will post the
highest CAGRs from 2012 to 2017.

Best-performing online category apparel and accessories - will
register high CAGR (Compound
Annual Growth Rate) of 17.2%,
according to eMarketer estimates.

Source: http://www.emarketer.com/Article/Retail-Ecommerce-Set-Keep-Strong-Pace-Through-2017/1009836

3
Example: Apparel & accessories sales in US
"Retailers continue to increase the
scale of their ecommerce
operations, particularly by investing
in online sales platforms that
display products and convert
shoppers more effectively; apparel
sales have benefitted more than
any other category. Apparel has
become an online success due
largely to easy and free returns,
innovative visualization tools and
the presence of customer reviews.”
- Jeffrey Grau, eMarketer principal
analyst.

Source: http://www.emarketer.com/newsroom/index.php/apparel-drives-retail-ecommerce-sales-growth/

4
Example: Fashion emerges as best-performing
segment of ecommerce in UK
The UK online fashion sector has grown 258%
in five years, making it the best-performing
segment across ecommerce, according to
research from IMRG.

The fashion category of the IMRG Capgemini
e-Retail Sales Index outperformed other
categories for four of the five years between
January 2009 and December 2013, with sales
growing nearly 17% year on year, totalling
£91bn in 2013 and accounting for 21% of all
online retail.
Source: http://www.marketingmagazine.co.uk/article/1231014/fashion-emerges-bestperforming-segment-ecommerce-claims-report

5
Example: Southeast Asia startup investments 2013:
It’s all about e-commerce, fashion and women

Mobile commerce, in particular, has been a major theme in the tech scene in
2013, and given its initial successes, looks set to dominate headlines again in
2014. But visualizing the data gives a better sense of the scale: Out of the $645
million plowed into internet companies, a massive $593 million, or 92 percent,
has something to do with e-commerce.
We’ve segmented e-commerce into several categories, including online retail,
payments, C2C marketplaces, and flash sales. The majority of e-commerce
investments, it would seem, have gone into men’s and women’s fashion, with
the latter dominating sales of course.
Source: http://www.techinasia.com/southeast-asia-startup-investments-2013-ecommerce-fashion-women/

6
eCommerce Benchmark for the Fashion Industry
The eCommerce
Benchmark for the
fashion industry is a
study, conducted by
the eCommerce
Foundation.
The eCommerce
Foundation is a nonprofit organisation
whose goal is to help
companies improve
their e-commerce
activities.

As more than 70 fashion companies have participated in the eCommerce
Benchmark, the Foundation decided to publish a detailed report on how they are
performing.
Both online fashion pure players and fashion retailers participated in the study.
Within the retail fashion industry, participants are either Generalist (18%) or
operate in specific segments, such as Women (34%) / Men (13%), Shoes (4%),
Body (12%) and finally Jeans (3%).
Source: http://magazin.unic.com/en/2012/07/26/ecommerce-benchmark-for-the-fashion-industry/

7
Where does the traffic come from in fashion?
As expected, the majority of traffic
comes from search engines
(53%). Direct traffic is relatively
low (15%); in fact, the average
direct traffic for other retail
industries is significantly higher
(22.3%).
It is interesting to note that social
and viral media play a much bigger role in fashion (8%) than retail in general
(4%).
Still, social media delivers less traffic than, for example, ‘old-fashioned’ email
marketing as a traffic source (10%). The email open and click through ratios are high
in the fashion industry compared with retail in general, and it is not surprising to see
that women’s fashion is the segment with the highest open ratio at almost 35%.
Source: http://magazin.unic.com/en/2012/07/26/ecommerce-benchmark-for-the-fashion-industry/

8
Conversion ratios in fashion retail

Women’s fashion has by far the lowest conversion ratio (1.85%),
while body fashion, as a niche player, has the highest conversion
ratio (2.40%).
Source: http://magazin.unic.com/en/2012/07/26/ecommerce-benchmark-for-the-fashion-industry/

9
Platform for your e-store – why Magento?
Platforms like Shopify, SquareSpace and
Tictail offer off-the-shelf, plug-and-play options
for companies new to e-commerce.
These services require few technical skills to
set up and are extremely simple to use,
though they are heavily templated, with little
scope for customisation. As for cost,
however, most offer simple revenue sharing
schemes or low monthly fees.
Open source e-commerce platform Magento
is another, more flexible option.
Many brands have chosen Magento, amongst
them Bonobos, Nike and Christian Louboutin.
Source: http://www.businessoffashion.com/2013/11/the-basics-part-9-e-commerce.html

mytheresa.com – e-store built on
Magento
10
High performance and visual inspiration
Features of the new site include:








Full screen experience
Custom campaign modules
Look book
Customized checkout
Flexible landing and content pages
Integration with multiple warehouse and ERP systems
Access rights management across multiple
sites/stores
 Localized payment and shipping methods
Source: http://info.magento.com/rs/magentocommerce/images/Gant1.pdf

11
Online orders increased by 340% three months
after launch

GANT continues this success by spanning across
multiple markets, from the US and Canada to France,
the Netherlands, Norway and Germany;
including a phased rollout to more than fifteen
additional countries.
Other notable highlights since the new implementation
include:

Source:
http://info.magento.com/rs/magentoco
mmerce/images/Gant1.pdf






290% increase in conversion rate
13% increase in traffic
35% reduction in page load time
50% decrease in hosting costs
12
Why choose Responsive Web Design?
More Internet users are now shopping
using mobile devices.

To
accommodate
these
users,
responsive web design become a
standard
for
the
eCommerce
websites,
particularly
Magento
stores.

First of all, you save an immense
amount of time and money in the
long run, as only one set of code
needs to be maintained and updated,
where with a dedicated mobile site at
least 2 platforms needs to be updated
and maintained regularly.

Source:
http://www.artversion.com/w
eb-design/magentocommerce/responsive-webdesign-for-magento-stores//

13
Second, a responsive
site will increase the
conversions
and
profitability of your
website. By providing
the
best
user
experience
for
all
platforms and devices,
visitors will be able to
find
what
they’re
looking
for,
view
website with ease, and
use website without
any problems and have
consistent
user
experience
across
multiple devices.
Source: http://www.artversion.com/web-design/magento-commerce/responsive-web-design-formagento-stores//, http://www.businessinsider.com/mobile-retail-and-commerce-trends-2014-1

14
Divante for fashion

•
•
•
•
•
•

SOLAR Company is a
Polish clothing brand.
It has 80 chain boutiques,13
franchise boutiques (e.g. in
Lubeck, Gent, Lviv), 7 outlet
stores, 120 members of
external chain and 25
partners in the neighboring
countries.

Complex e-commerce implementation
Microsoft Navision integration
Opening conversion rate 2,21%
High average order value
68% purchases made during the first visit
15,9% purchases via SEO after a month from the opening

Read more about this implementation on our blog:
http://divanteltd.com/blog/complex-e-commerce-implementation-fashion-brand/
15
Divante
Full service e-Commerce Agency
Magento / UX / eMarketing
http://divanteltd.com

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E-commerce trends driving fashion industry online sales

  • 2. E-commerce in fashion industry Just 10 years ago many in the retail industry did not believe that consumers would ever take to buying fashion online. How wrong they turned out to be. Not only have retailers sprung up offering fashion items at all price points online, but high street retailers are finding that the percentage of their sales going through their website is increasing year on year. Source: http://mediazone.brighttalk.com/comm/sitedata/c52f1bd66cc19d05628bd8bf27af3ad6/download/9174_Etail%20Report%202011-lores.pdf 2
  • 3. Example: Apparel & accessories sales in US Online apparel sales continue to capture a greater share of US retail ecommerce sales, as the category. A mix of larger and smaller online product categories will post the highest CAGRs from 2012 to 2017. Best-performing online category apparel and accessories - will register high CAGR (Compound Annual Growth Rate) of 17.2%, according to eMarketer estimates. Source: http://www.emarketer.com/Article/Retail-Ecommerce-Set-Keep-Strong-Pace-Through-2017/1009836 3
  • 4. Example: Apparel & accessories sales in US "Retailers continue to increase the scale of their ecommerce operations, particularly by investing in online sales platforms that display products and convert shoppers more effectively; apparel sales have benefitted more than any other category. Apparel has become an online success due largely to easy and free returns, innovative visualization tools and the presence of customer reviews.” - Jeffrey Grau, eMarketer principal analyst. Source: http://www.emarketer.com/newsroom/index.php/apparel-drives-retail-ecommerce-sales-growth/ 4
  • 5. Example: Fashion emerges as best-performing segment of ecommerce in UK The UK online fashion sector has grown 258% in five years, making it the best-performing segment across ecommerce, according to research from IMRG. The fashion category of the IMRG Capgemini e-Retail Sales Index outperformed other categories for four of the five years between January 2009 and December 2013, with sales growing nearly 17% year on year, totalling £91bn in 2013 and accounting for 21% of all online retail. Source: http://www.marketingmagazine.co.uk/article/1231014/fashion-emerges-bestperforming-segment-ecommerce-claims-report 5
  • 6. Example: Southeast Asia startup investments 2013: It’s all about e-commerce, fashion and women Mobile commerce, in particular, has been a major theme in the tech scene in 2013, and given its initial successes, looks set to dominate headlines again in 2014. But visualizing the data gives a better sense of the scale: Out of the $645 million plowed into internet companies, a massive $593 million, or 92 percent, has something to do with e-commerce. We’ve segmented e-commerce into several categories, including online retail, payments, C2C marketplaces, and flash sales. The majority of e-commerce investments, it would seem, have gone into men’s and women’s fashion, with the latter dominating sales of course. Source: http://www.techinasia.com/southeast-asia-startup-investments-2013-ecommerce-fashion-women/ 6
  • 7. eCommerce Benchmark for the Fashion Industry The eCommerce Benchmark for the fashion industry is a study, conducted by the eCommerce Foundation. The eCommerce Foundation is a nonprofit organisation whose goal is to help companies improve their e-commerce activities. As more than 70 fashion companies have participated in the eCommerce Benchmark, the Foundation decided to publish a detailed report on how they are performing. Both online fashion pure players and fashion retailers participated in the study. Within the retail fashion industry, participants are either Generalist (18%) or operate in specific segments, such as Women (34%) / Men (13%), Shoes (4%), Body (12%) and finally Jeans (3%). Source: http://magazin.unic.com/en/2012/07/26/ecommerce-benchmark-for-the-fashion-industry/ 7
  • 8. Where does the traffic come from in fashion? As expected, the majority of traffic comes from search engines (53%). Direct traffic is relatively low (15%); in fact, the average direct traffic for other retail industries is significantly higher (22.3%). It is interesting to note that social and viral media play a much bigger role in fashion (8%) than retail in general (4%). Still, social media delivers less traffic than, for example, ‘old-fashioned’ email marketing as a traffic source (10%). The email open and click through ratios are high in the fashion industry compared with retail in general, and it is not surprising to see that women’s fashion is the segment with the highest open ratio at almost 35%. Source: http://magazin.unic.com/en/2012/07/26/ecommerce-benchmark-for-the-fashion-industry/ 8
  • 9. Conversion ratios in fashion retail Women’s fashion has by far the lowest conversion ratio (1.85%), while body fashion, as a niche player, has the highest conversion ratio (2.40%). Source: http://magazin.unic.com/en/2012/07/26/ecommerce-benchmark-for-the-fashion-industry/ 9
  • 10. Platform for your e-store – why Magento? Platforms like Shopify, SquareSpace and Tictail offer off-the-shelf, plug-and-play options for companies new to e-commerce. These services require few technical skills to set up and are extremely simple to use, though they are heavily templated, with little scope for customisation. As for cost, however, most offer simple revenue sharing schemes or low monthly fees. Open source e-commerce platform Magento is another, more flexible option. Many brands have chosen Magento, amongst them Bonobos, Nike and Christian Louboutin. Source: http://www.businessoffashion.com/2013/11/the-basics-part-9-e-commerce.html mytheresa.com – e-store built on Magento 10
  • 11. High performance and visual inspiration Features of the new site include:        Full screen experience Custom campaign modules Look book Customized checkout Flexible landing and content pages Integration with multiple warehouse and ERP systems Access rights management across multiple sites/stores  Localized payment and shipping methods Source: http://info.magento.com/rs/magentocommerce/images/Gant1.pdf 11
  • 12. Online orders increased by 340% three months after launch GANT continues this success by spanning across multiple markets, from the US and Canada to France, the Netherlands, Norway and Germany; including a phased rollout to more than fifteen additional countries. Other notable highlights since the new implementation include: Source: http://info.magento.com/rs/magentoco mmerce/images/Gant1.pdf     290% increase in conversion rate 13% increase in traffic 35% reduction in page load time 50% decrease in hosting costs 12
  • 13. Why choose Responsive Web Design? More Internet users are now shopping using mobile devices. To accommodate these users, responsive web design become a standard for the eCommerce websites, particularly Magento stores. First of all, you save an immense amount of time and money in the long run, as only one set of code needs to be maintained and updated, where with a dedicated mobile site at least 2 platforms needs to be updated and maintained regularly. Source: http://www.artversion.com/w eb-design/magentocommerce/responsive-webdesign-for-magento-stores// 13
  • 14. Second, a responsive site will increase the conversions and profitability of your website. By providing the best user experience for all platforms and devices, visitors will be able to find what they’re looking for, view website with ease, and use website without any problems and have consistent user experience across multiple devices. Source: http://www.artversion.com/web-design/magento-commerce/responsive-web-design-formagento-stores//, http://www.businessinsider.com/mobile-retail-and-commerce-trends-2014-1 14
  • 15. Divante for fashion • • • • • • SOLAR Company is a Polish clothing brand. It has 80 chain boutiques,13 franchise boutiques (e.g. in Lubeck, Gent, Lviv), 7 outlet stores, 120 members of external chain and 25 partners in the neighboring countries. Complex e-commerce implementation Microsoft Navision integration Opening conversion rate 2,21% High average order value 68% purchases made during the first visit 15,9% purchases via SEO after a month from the opening Read more about this implementation on our blog: http://divanteltd.com/blog/complex-e-commerce-implementation-fashion-brand/ 15
  • 16. Divante Full service e-Commerce Agency Magento / UX / eMarketing http://divanteltd.com