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Last Mile for Fashion - What Consumers Want

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We recently surveyed more than 4,000 consumers in the United States and big cities globally for the answer on what consumers want when they shop online.

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Last Mile for Fashion - What Consumers Want

  1. 1. Michael Hu Andrea Szasz Consumer Survey Results Winning the Last Mile Challenge with “Fashion” Consumers
  2. 2. 2 We surveyed consumers in the US and in Big Cities globally to understand their Last Mile requirements for Beauty & Apparel Respondents: • 4,000+ Period: • Q2 2017-Q1 2018 Geographies: • USA and Canada • Global Big Cities Categories: • Cosmetics • Skincare • Haircare • Apparel and Shoes Age Groups: • Gen Z • Millennials • Gen X • Baby Boomers Income: • Census distribution Urbanicity: • Population distribution (+ global Big Cities)
  3. 3. 3 What we found… Another key driver of rising requirements is urbanicity – while Last Mile expectations in *Big Cities* are heightened vs. rural, the flavor of what Big City consumers want in each geography differs Fundamental observations Rising requirements of *Gen Z* Consumers are shaping where the future expectations for Last Mile in *fashion* are headed Future demand will be shaped by *supply* side disruptions – Amazon is setting the bar for delivery expectations globally, with notable exceptions like Alibaba in China Consumer expectations for delivery and omnichannel options are undifferentiated across *fashion* product categories, with the exception of returns being top of mind for apparel only Source: A.T. Kearney Consumer Survey results
  4. 4. 4 What really matters to “Fashion” Consumers for Last Mile? Source: A.T. Kearney Consumer Survey results Convenient Free, Seamless Fast, Faster, Fastest Consumer Surveys 4,000+ responses
  5. 5. 5 “Convenience” is redefined to “wherever I want it”. However, the level of omnichannel shopping maturity varies for global Big Cities Where do you typically shop for "fashion" products?1 (% of respondents) 1. Consumers picked a preference between: “I shop only online”, “I shop only in store”, “I shop both online and in store” Source: A.T. Kearney Consumer Survey results, 4,000+ Respondents. Note: “Fashion” includes “Beauty” Categories and “Apparel & Shoes” Categories 68% of "fashion" consumers shop both online and in stores Consumers shop Omnichannel 1.3X of omnichannel shopping by Gen Z consumers vs. average Gen Z shop more Omnichannel Big Cities in Eastern Europe (i.e. Moscow) and LATAM (i.e. Mexico City) still focus largely on shopping only in stores Omnichannel shopping has different levels of maturity globally North American Big Cities (i.e. NYC, San Francisco, Los Angeles) are most mature – European Big Cities follow i.e. London, Milano 33%78% 67%17% NYC Moscow In stores and online In stores only Convenient Consumer Surveys 4,000+ responses
  6. 6. 6 Free delivery is table stakes across category and seamless returns are key for apparel; speed is increasingly important 1. Consumers ranked the service offerings on a scale of 1-4. Slide represents percentage of respondents who ranked the offering as first Source: A.T. Kearney Consumer Survey results, 4,000+ Respondents. Note: “Fashion” includes “Beauty” Categories and “Apparel & Shoes” Categories >40% of our respondents identified free shipping as most important. For beauty even more important (65%) Free shipping is king How important are the following when you shop for "fashion" products? (% of respondents, rank 1)1 21% identified delivery speed as most important Speed matters 3-4X of our respondents find delivery speed more relevant vs. convenience (i.e. store pick up) Speed wins over convenience Free, Seamless 29% of our respondents selected free and convenient returns as most important for apparel. Only 5% for beauty Seamless returns crucial for Apparel 3X Speed is 3X more important for Gen Z vs. older consumers. Gen Z choose “fast” over “free” delivery For Gen Z speed is #1! Consumer Surveys 4,000+ responses
  7. 7. 7 Gen Z and in Big Cities have significantly heightened requirements for speed, especially Same Day delivery Source: A.T. Kearney Consumer Survey results, 4,000+ Respondents. Note: “Fashion” includes “Beauty” Categories and “Apparel & Shoes” Categories 62% of our respondents stated “I don’t mind waiting 3-5 days for my product” 3-5 day delivery acceptable >25% of our NY respondents stated “2 days is the longest I’ll wait for delivery” NY consumers are impatient 3X Same day delivery 3X more important for Big Cities vs. rural Big Cities want same day! Please describe your preferences for "fashion" products delivery times (% of respondents) Fast, Faster, Fastest 1.5-2X Fast delivery is 1.5X more important in European Big Cities, and 2X in APAC vs. US. (US consumers choose free over fast) Europe – APAC cities want faster 5X Same day delivery 5X more important for Gen Z vs. older consumers Gen Z care for same day! Consumer Surveys 4,000+ responses
  8. 8. 8 Amazon sets the standard for consumers’ Last Mile expectations – predicting Amazon’s next move is crucial ~80% …if we include Zappos 75% of consumers globally say Amazon sets the standard when they think of their preferred delivery time Source: A.T. Kearney Consumer Survey results, 4,000+ Respondents. A.T. Kearney projections for Amazon Prime Now markets Fast, Faster, Fastest Consumer Surveys 4,000+ responses
  9. 9. 9 Michael Hu – Partner michael.hu@atkearney.com www.linkedin.com/in/mhuspace @mhu_snowcrash Andrea Szasz – Principal andrea.szasz@atkearney.com Please reach out to continue the dialog
  10. 10. Thank you

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