E-commerce in fashion

industry

2

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

E-commerce in fashion industry

3

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.

Example: Apparel & accessories sales in US

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

4

"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/

Example: Apparel & accessories sales in US

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-best-

performing-segment-ecommerce-claims-report

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/

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 non-

profit 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/

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/

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/

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.

mytheresa.com – e-store built on

Magento Source: http://www.businessoffashion.com/2013/11/the-basics-part-9-e-commerce.html

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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

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:

290% increase in conversion rate

13% increase in traffic

35% reduction in page load time

50% decrease in hosting costs

Source:

http://info.magento.com/rs/magentoco

mmerce/images/Gant1.pdf

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/magento-

commerce/responsive-web-

design-for-magento-stores//

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-for-

magento-stores//, http://www.businessinsider.com/mobile-retail-and-commerce-trends-2014-1

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.

Read more about this implementation on our blog: http://divanteltd.com/blog/complex-e-commerce-implementation-fashion-brand/

• 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

Divante

Full service e-Commerce Agency

Magento / UX / eMarketing

http://divanteltd.com