Geoffrey HOSKING-Trust and Distrust-A Suitable Theme for Historians
Martin Hosking - Redbubble
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Transcript of Martin Hosking - Redbubble
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AFR: Retail SummitMartin Hosking: Co-founder and CEO Redbubble
Disrupting Traditional Customer Relations
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Redbubble: in a nutshell
CONTENTCUSTOMERS
2.2M 10.2M
438K
12 FULFILlERS (18 locations), 57 PRODUCTS,
3RD PARTY FULFILlERS
ARTISTS
3
A record of growth
$1.2 $3.6 $4.2 $6.0
$15.7
$33.7
$59.3
$88.4
$142.9
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
GrossTransactionValue:$Millions
Gross Transaction Value: $Millions
A RECORD OF GROWTH
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The background
Online Marketplace
Fast Fashion
Traditional Retail
Publicly Traded Apparel Co’s - Share Price Change (2011-2016)
Amazon
ASOS.com
Inditex
Fast Retailing CO
H & M
Macys
Ralph Lauren
Specialty Fashion Group
Hugo Boss
Myer
Oroton
Billabong
–100 % -50% 0% 50% 100% 150% 200% 250% 300%
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AGENDA
Sell what you have > Sell what they want
PERSONAL STYLE
Micro Targeting
Custom Manufacture
Marketplace
Branding
Mass Marketing
Mass Production
Gatekeeping
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> PERSONAL STYLE
Millennials are not as interested in logos as previous generations who gravitated toward things like the enormous Gucci Gs. Those garish logos would scare today’s consumer away.
Source: https://www.fastcompany.com/3062474/, The Decline of Premium American Fashion
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Personal style trumps brand
Market Share of Brand Logos (%)
Sources: Piper Jaffray, “Taking Stock with Teens”, Pew Research, Pew Research Centre, Marketing Profs
Reflected in Attitudes
• Individuality, creatively expressed, is the new cool
• Tribalism is the new conformity
& Lifestyle choices
• Clothing (de-branded, retro, edgy)
• Body art (tattoos, piercings)
• Consumables (craft beers, new labels, slow food, Etsy)
• Media (social, user generated, shared)
• Travel (AirBnB, Uber, Lyft)Spring-01 Fall-14
* Source: RB May 2014 Consumer Study, ** On trend for 36 month cohort, LTCV = transaction value of sales
“I’VE BEEN USING REDBUbbLE FOR ALl MY GIFTS (BIRTHDAY
AND CHRISTMAS)! I LOVE FINDING INCREDIBLY EXCLUSIVE AND UNIQUE ITEMS THAT YOU
NORMALlY WOULDN’T FIND IN A TRADITIONAL STORE!”
“It was just an awesome expEriencE. The products are
beyond unique, you can’t find certain t-shirts, throw pillow caseS, or iPad caseS anywherE elsE... Very much
worth the money.”
StandiNg out not fitTing in
Customers
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67%
57%*
62%
Of sales from works that sold 50 times or less
Female
Under 35
* Source: Data as per the May 2016 Prospectus
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> Micro Targeting
62% of Millenials are more likely to be a loyal customer if a brand engages them on social media.
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Micro targeting: search vs social
Search SocialWho Google & daylight Facebook, Pinterest,
Twitter, Instagram
Usage Intent driven Discovery
Types Organic search Product listing
Organic socialPaid socialUser generated social
Success Factors Relevance Engagement Relevance
Capabilities Data science Pricing & bidding
Data scienceContent integration
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Search an Example
Nicola Sturgeon, leader of the Scottish National Party, became a trending celebrity in 2015
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Social Example:
Urban Outfitters content and product integrated
Source: Instagram; Curalate
CONTENT STRATEGY BUILDS TRUST & COMMUNITY
Rather than just pushing product, UO will intersperse images of nature, healthy food and other lifestyle themes on its InstagramE.g. #UOGoals encourages sharing health & fitness goals
TECHNOLOGY MAKES IT SHOPPABLE
UO lets its Instagram community then shop its feed with “UO Community,” a dedicated webpage that features items from its Instagram feed with a direct link to buy them
Collected 13,000 images
from customers sharing their Urban Outfitters style in just two months.
Click throughs on items increased 15% versus online store.
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Micro-targetTing
Organic growth fuels sales... ….with all channels profitable on first purchase
Sales by Source (FY16)
% of GTV
68.5%FREE
Organic Search1
(39.0%)
Direct2
(14.0%)
Email (6.3%)
Other Free (9.2%)
Paid3 (31.5%)31.5% PAID
$26.7M
$12.3M(before paid acquisition cost of $7.3M)
Gross Profit (FY16)
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> Custom production
Today, many people see high-end products as one-of-a-kind items—the antithesis of mass-produced commodities whose attention-grabbing logos turn consumers into advertisements.
Source: https://www.fastcompany.com/3062474 The Decline of the American Brand
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DifFerEnt products require difFerEnt printIng technologies
Dye Sublimation Printer for Textile Printing
Digital To Garment (DTG) Inkjet PrinterUtilized on Tees/Hoodies/Kid’s Clothes
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DifFerEnt products require difFerEnt printIng technologies
HP indigo for Greeting cards and Photo Prints
UV Roll Printer for Wall Art
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DifFerEnt products require difFerEnt printIng technologies
Printing Oven For Mugs
Dye Sublimation Printer for Phone Case Printing
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3D PrintIng is coming: a sea-change of posSibIlitIes
COST EFFICIENCY AND PRODUCT SCALE ON THE HORIZON
• 3D printing will become 50% cheaper and up to 400% faster in by 2020 (Siemens)
• Accessories - jewelry, footwear, eyewear - will be the early adopters of 3D printing as they can overcome the
limitations of printing with textiles
(Joris Debo, Creative Director, Materialise)
Source: Gartner Predicts 2016: 3D Printing and Manufacturing, Forbes, Bloomberg,
3D PRINTING WILL BE A $20BN INDUSTRY BY 2020
2013 2014 2015 2016 2017 2018 2019 2020
Global 3D Printing Market
Wohler’s Report Forecast ($BN)
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18
12
6
0
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> Democratization
Under 1% of Millennials say they influenced by advertising, trusting rather content generated by friends of communities
53% of American consumers would rather buy from an individual producer than a major brand (Etsy Prospectus)
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Brands losing power to people
Social media has transformed how culture works, in a way that weakens certain branding techniques. It has united once-isolated communities into influential crowdcultures...Their members produce their own content - so well that companies simply can’t compete.
#1: 48M subscribers 13B views
#223: .4M subscribers, 1.5B views Source: HBR: Branding in the Age of Social Media
PewDiePie
Red Bull
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DrivIng the rise of marketplaces
eBay and Amazon market share:• 2012 24.9%• 2015 29.1%
Q: In the last year have your purchased from any of the following marketplaces?
Q: On a marketplace would you buy from brands or sellers that you’ve never heard of?
91.8%
64.6% 17.5% 17.9%
Amazon.com
Yes No Don’t Know
72.4%
eBay.com
43.9%
Etsy.com
7.8%Jet.com
3.5%Rakuten.com
Source: Internet Retailer Online Marketplaces Report
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> Including Redbubble artisTS
438,000Total Selling Artists
30 June 2016
40% Artists who sold in FY2007 are still selling in FY2016
36% of creatives exclusive
to Redbubble1
20,000 Q1 FY2013
98,000 Q4 FY2016
ARTIS
TS SE
LlING
BY QU
ARTER
1. Redbubble Artist Survey 2016
“One of the nicest things I’ve found about Redbubble is the fact that you actually seem to care about artists and the people behind the work” Michaela, Canada