1. Successful businesses
need creative strategies
EVOLUTION & UPCOMING TRENDS
OF FASHION E-COMMERCE IN CHINA
MagentoCom event, November 2013
VELVET GROUP, 2013 ©

2. VELVET IS A DIGITAL CONSULTING AGENCY
SERVING FASHION, LUXURY AND BEAUTY BRANDS.
WE ARE BORN LUXURY, DIGITAL, CHINESE... AND GLOBAL
2

3. DIGITAL STRATEGY CONSULTING & EXECUTION
Social
Search
POS
Mobile
Brand
content
Official
site
DELIVER EXCEPTIONNAL CUSTOMER EXPERIENCE
ACROSS BRAND RETAIL TOUCHPOINTS
Brand awareness, personal connection,!
emotion and engagement !
eCRM
VELVET GROUP, 2013 ©
e-Commerce
3

4. AVENE
YVES SAINT LAURENT
KERING GROUP
GALERIES LAFAYETTE
CLARINS
BOUCHERON PARIS
L’OREAL GROUP
CHRISTIAN LOUBOUTIN
NOELI GALLERY

5. E-COMMERCE CONSULTING
Market Research Business Opportunities
Deliverable
Industry
Product
Understand
Target
Audience
Business Proposition
Competition
Analysis
Research
Findings
Project Design Planning
Deliverable
Consumer
Journey
Business
Scenarios
Business
Model
Project
Roadmap
Business
Requirements
Selection of service providers solutions
Deliverable
IT
Warehouse
Payment
Operations
CRM
Delivery
Call center
Marketing
V E L V E T Group (HK) Ltd – Confidential 2013
Service
Providers
Selection
5

6. E-COMMERCE CONSULTING
TYPICAL PROJECTS
BUSINESS SCENARIOS TO START E-COMMERCE IN CHINA
DESIGN ENTIRE E-COMMERCE PROJECT
DEFINE THE PATH TO PROFITABILITY PL ESTIMATIONS
OMNI-CHANNEL STRATEGY
AUDIT OF EXISTING E-COMMERCE PLATFORMS
V E L V E T Group (HK) Ltd – Confidential 2013
6

7. FULL E-COMMERCE SETUP - KEY PERFORMANCE DRIVERS
Display
E-­‐mail
marke9ng
Front-­‐end
Search
u Merchandizing
Omn
i-­‐cha
nnel
u Services
u Loyalty
program
Social
Media
Traffi
c
dri
vers
u MarkeEng
u Inventory
management
PRODUCT
(fashion
lifestyle)
u Logis9cs
u Finance
Back-­‐end
u Call
center
u IT
solu9ons
Online
wholesale
Partners
JD,
Suning,
Amazon
etc
VELVET GROUP, 2013 ©
Mobile
store
Strategic
Online
partners
Tmall,
Bank
e-­‐malls
and
flashsale
sites
Stores
China
France

8. CHINA BECAME IN 2013
THE WORLD BIGGEST
E-COMMERCE MARKET
V E L V E T Group (HK) Ltd – Confidential 2013

9. 242 million
(2012)
China has the highest number of
Online consumers in the world
75 M
More than USA
2x
Double size
of Japan
6x
Sixth times
the size of UK
7.5 x
more than 7 times
the size of France
V E L V E T Group (HK) Ltd – Confidential 2013
9

10. And it will continue to grow steadily
2012 è 2016
+50 M
Every year
X1.75
423.4
million
242
2012
V E L V E T Group (HK) Ltd – Confidential 2013
2016
10

11. Market size
2012 è 2015
169 billion
319
billion
EURO
B2C
= 45%
95.8 billion
X2
93.5 billion
159
billion
B2C
= 30%
45 billion
EURO
V E L V E T Group (HK) Ltd – Confidential 2013
11

12. CHINA HAS PLENTY OF ROOM FOR GROWTH
Internet users as a % of the total population
Korea
VELVET GROUP, 2013 ©
US
Europe
China
Asia
India
12

13. FASHION IS THE N°1 CATEGORY
27%
18%
5%
Apparel,
footwear,
bags and
suitcases
VELVET GROUP, 2013 ©
Consumer
Electronic,
Home
appliances
Cosmetics
4%
Mother
Baby care
3%
Music,
Video
books
13

14. APPAREL ACCESSORIES SALES DURING 11/11
VELVET GROUP, 2013 ©
14

15. DOUBLE 11 TOP 10 BEST SELLERS
Apparel takes up 5 positions among top 10 best sellers.
JACK JONES
Apparel
CAMEL (menswear)
UNIQLO
YINMAN
ARTKA
VELVET GROUP, 2013 ©
Apparel
15

16. DOUBLE 11 TOP 10 WOMEN’S APPAREL
RMB 140,000,000
120,000,000
100,000,000
80,000,000
60,000,000
40,000,000
20,000,000
RMB 780,593,247
≈ EUR 100 million
0
VELVET GROUP, 2013 ©
16

17. COMPETITIVE ENVIRONMENT
CONDITIONS OF SUCCESS

18. TOP B2C WEBSITES BY MARKET SHARE
57%
Tmall
(Alibaba Group)
20%
JD
1%
Dang
dang
4%
QQ
Mall
4%
Suning
2%
Vancl
3%
Amazon
VELVET GROUP, 2013 ©
18

19. LAUNCHED EARLY NOVEMBER
19

20. LAUNCHED 1 WEEK AGO
20

21. fashion shopping
UPCOMING TRENDS

22. “OMNI-CHANNEL IS THE NEW NORMAL”
§ Today's customer experience spans across multiple touchpoints
§ Challenge is to provide an integrated customer experience
WEBSITE
STORES
8%
Shoppable
of
total
retail
or not
sales
is
online
50%
of
retail
sales
Digital
is
online
or
“web-­‐
in-stores
influenced”
Order online, collect
return offline
MOBILE
(smartphones tablets)
79%
oShoppable
f
US
smartphone
owners
use
tnot phones
to
or heir
help
with
shopping
Source: Forrester Research, Web Influenced Retail Sales Forecast, 2013 - USA
VELVET GROUP, 2013 ©

23. E-SHOPPING IS A MULTI-SCREEN AND MULTI-DEVICE EXPERIENCE
ATAWAD
CONSUMERS
VELVET GROUP, 2013 ©
23

24. IT IS CRITICAL TO MAP THE CONSUMER JOURNEY
RESEARCH
WEB
SELECT
Comparison site
PURCHASE
Chat
Pick up at local
store
Visit retail store
Kiosk
Browse
catalog
Return instore
E2 = EXPERIENCE + E-COMMERCE
MOBILE
Google
search
Begin
catalog
order
Product
info
Email Order
confirm w/ Rec
EMAIL
VELVET GROUP, 2013 ©
Issue complaint
Phone order
IN-STORE
SOCIAL
SERVICE
Buy online
CONTACT
CENTER
CATALOG
RECEIVE / USE
Facebook
Fan club
Read reviews
Share experience
on Twitter
Complain on
brand’s Twitter
24

25. 1. MOBILE COMMERCE IS TAKING OFF IN CHINA
• Single day transactions from Taobao APP
exceeded RMB 5.35 billion
o 5.6 times over last year’s RMB 960 million
o Number of active users: 127 million
o Number of transactions: 35,900,000
• Alipay mobile exceeded RMB 11.3 billion
(10 times over 2012).
o 45 million transactions*
No. of Mobile
transactions
Percentage to
total No.
Transactions
Transaction
amount
2011
1,710,000
n/a
2012
9,000,000
8%
RMB
1,200,000,000
2013
45,180,000
24%
RMB
11.300,000,000
* 2013 Double 11 total number of transactions through Alipay: 188,000,000
VELVET GROUP, 2013 ©
25

26. 1. MOBILE COMMERCE IS TAKING OFF IN CHINA
§
Key functions:
• product browsing/ product
review
• shopping cart
• order tracking
• order management
• user account
• coupon
Available on iPhone and Android
VELVET GROUP, 2013 ©
26

27. 2. WECHAT COMMERCE DEBUTS
SCAN-TO-PAY KILLS SHOPPING CART
Scan with WeChat
VELVET GROUP, 2013 ©
27

28. 2. WECHAT COMMERCE DEBUTS
SCAN-TO-PAY KILLS POS
•
•
Scan to place the item in Tmall shopping cart
Over 200,000 items have been placed in the shopping cart prior to double 11.
VELVET GROUP, 2013 ©
28

29. 3. EVOLUTION OF CUSTOMER SERVICE
CLICK-TO-CALL (BURBERRY)
1
“Click-to-Call” function on the header
2
Provide number to the customer service
3
Immediately connected with customer service
• Customers can indicate country, number
and the time to call
• The service is available 24/7
4
Receive a phone call from the US within the next 5 seconds. The customer representative is bilingual in English and Chinese and
answers customer inquiries with clear explanation
VELVET GROUP, 2013 ©
29

30. 3. EVOLUTION OF CUSTOMER SERVICE
SOCIAL MEDIA PLATFORMS FOR CUSTOMER SERVICE
Burberry customer care
Weibo account
Message board dedicated to
customer care
VELVET GROUP, 2013 ©
30

31. 4. PRODUCT PRESENTATION
VIDEO SHOPPING
VELVET GROUP, 2013 ©
31

32. CONTACT US
Velvet Group Limited
Greenland Plaza - 1258, Yuyuan Road - 20050 Shanghai – China
www.velvetgroup.com | +86 21 61 16 72 32
Patrice NORDEY
CEO
pnordey@velvetgroup.com
VELVET GROUP, 2013 ©