SAp - HIZLI DEĞİŞEN ULUSLARARASI MODA PERAKENDESİ VE BAŞARI KRİTERLERİ - SAP Forum 2013

SAP FORUM İSTANBUL Gelecek Bugün

Stephen Henly

Industry Director

EMEA Consumer Industries

Fast Changing International Fashion Retailing - the key

forces and factors for success

My Apologies – sorry to not being there: I

was really looking forward to meeting you all

- Hopefully another day?

© 2013 SAP AG. All rights reserved. 3

My and others interest in the Turkish Fashion Retail

Market – Why?

•Already an important textile and garment manufacturing centre in “The

European Arena” – (I wish it were bigger!)

•Large, young and growing fashion population – with increasing

understanding and demand for fashion brands – esp. “The International

Turkish Girl” – international brand awareness

•An increasingly sophisticated and fast growing retail infrastructure

which is rapidly developing – mainly as result of internal national retailer

activity – Istanbul is 11th most internationalised retail city in the world

•Wide numerical opportunity for available for immediate and future

expansion

•Current relatively low penetration of foreign fashion retailers outside of

key Turkish cities – although this is growing exponentially

•Rising levels of urbanisation


Turkish consumers are becoming increasingly fashion

conscious – esp.”The New International Girl” – which girl

is from what country?!


The Facts about Turkish Retailing

- Istanbul is the eleventh most attractive

location for international retailers in Europe.

- Turkey is the seventh largest organised retail

market in Europe, with a total leasable area of

8.3 million sq m across 332 shopping Centres

- Approximately 2.6 million sq m of leasable

space is currently under construction, with

Istanbul accounting for almost half of this total.


Some Key Facts about Turkish Retailing

- The importance of shopping centres in the market

is growing, with the likes of Forum Istanbul and

Istinye Park trading particularly well. This will be

further fuelled by the huge development pipeline,

and in particular the imminent opening of several

landmark schemes, including the Zorlu Center and

Emaar’s Boulevardi.

- Istanbul’s retail culture is still mostly dominated by

the high street, however, with Istiklal Street the

dominant mass market location on the European

side, along with Nişantaşi district, which caters for

luxury brands.


Some Key Facts about Turkish Retailing

The huge market of approximately 13.3

million consumers in Istanbul is viewed by

many retailers as the perfect gateway to

the Middle East and Caucasus region.

Istanbul’s retail market is revolutionising

itself at great speed, with significant

quantities of modern shopping centre

stock coming online.


Fashion Retailers planning to open in

Turkey? Many more rumoured?!


Top clothing retailers in Europe - 2012

Top fashion & clothing retailers in Europe turnover in Europe 2012 in Billion E

Rank Retailer Turnover Headquarter

1 H&M 12.8 Sweden

2 M&S 11.5 UK

3 Inditex 11.2 Spain

4 C&A 6.8 Belgium/Germany

5 Next 4.3 UK

6 Primark 4.3 UK

7 Arcadia 3.3 UK

8 Debenhams 3.3 UK

9 Esprit 2.4 Germany

10 Benetton 1.6 Italy


Lets now examine the

key drivers of

International Fashion

(+other) Retail change


The Forces and Changes that are Impacting on

International Consumers

•This talk looks at some of the key macro and micro trends that

international retailers are currently starting to face

•Many of changes which will result in a sea change in the way

in which retail systems and technologies will need to be

developed, used and applied

•Some will have variable impacts in different countries and on

different types of retailer

THE ONLY THING THAT IS GUARANTEED; IS THAT THE OLD RETAIL ORDER

WILL BE FORCED INTO ADAPTION TO THE NEW GLOBAL PARADIGM


Today’s Consumers Demand More

Modern consumers expect

everything; they want it now,

they want it cheap and want

the newest. They want a

service level that suits them -

delivered at place and in a

manner that suits them.


1 Hyper-change in international consumer spending

patterns as the “old economic order” changes




THE “SHIFTING” MIDDLE CLASS




The Potential International Retail Impact?

The mass middle classes will HAVE to seek value across the entire range of

their normal purchasing. The once affluent Middle Class will undoubtedly

1.Down shop to cheaper retail formats

2.Increasingly undertake price comparison

3.Avoid shopping in poor value high cost retail formats

4.Become increasingly self-educated about which retailers deliver value

5.N.B. Governments may well become involved with national

pricing/monopolies/price cartels/price fixing


THE EVIDENCE – Value Seeking


THE EVIDENCE – Value Seeking - PRIMARK


THE EVIDENCE – Value Seeking – Selfridges London, Au

Printemps - Paris




The Potential International Retail Impact?

However, the WEALTHIER CUSTOMERS will still be there, but in fewer

numbers with more retailers seeking their custom – THEY WILL

INCREASINGLY SEEK

1.The New in terms of retail format

2.The Unusual and different

3.Brands with a difference

4.Better total service

5.Convenience and time saving

6.Reasons to stay loyal


THE EVIDENCE - The Unusual - Anthropologie


THE EVIDENCE – The New – Superdry


THE EVIDENCE – Demand for “Hyper-service”

e.g. Savile Row - LONDON


2 Changing shopping habits – move towards more

convenient shopping – both on-line and in store

As many Western and some Asian countries get older and less mobile –

convenience shopping will by necessity become more popular -

CUSTOMERS WILL INCREASINGLY SEEK

1.Shops that are closer to home with less or ideally no drive time

2.More home deliveries – of a wide range of goods

3.More will be purchased on-line

4.Click and collect at local pick-up points may replace conventional post

offices

5.More and simpler help from shops/staff and the associated

technologies

6.In countries that are geographically large with dispersed communities –

The Internet will make shopping available everywhere – even in rural

areas


THE EVIDENCE – The local growth of convenience shop

chains + renaissance of local food shops


THE EVIDENCE – The local delivery booth common in

Germany & Australia + UK demand for home delivery


THE EVIDENCE – More older customers are now ordering

on-line + Retailers having to improve calibre of call

centres


THE EVIDENCE – Retailers will have to invest more on in-

store consumer assistance technologies


3 Changing shopping priority & focus – Gradual

education and change of consumers towards Healthy,

Green and Ethical Consumption

As consumers become more knowledgeable and educated

about Green & Ethical issues – due to more transparent

supply chains. IT will undoubtedly increasingly need to help

the control measure and audit of these.

More transparent labelling could reveal and declare

1.Real info about country of origin

2.Details of carbon footprint involved

3.Pollution levels involved in manufacture and after care

4.Health level and purity of food products

5.Level of Fair Trading involved


3 Changing shopping priority & focus – gradual

education of consumers towards Healthy, Green & Ethical

Consumption




Consumption




Consumption CARBON FOOTPRINT LABELLING?




Consumption FAIR TRADE



education of consumers towards Green & Ethical

Consumption DYE POLUTION IN CHINA




Consumption HEALTHY FOOD LABELS




Consumption ENVIRONMETAL CARE


THE EVIDENCE – Ethical issues now become major

international news issues within seconds

By Jessica Wohl and Nivedita Bhattacharjee

Thu May 16, 2013 5:35am IST

REUTERS - A trans-Atlantic divide between

European and U.S. retailers over how best to

respond to fatal disasters in Bangladesh textile

factories split wide open on Wednesday, with U.S.

retailers claiming their European counterparts are

giving labor unions too much control over ensuring

workplace safety.

Retailers will need to use technology more

effectively to audit/monitor production

sourcing


THE EVIDENCE – Totally transparent trade transparent

brands already on the move HONEST by


4 Need for shoppers to be more excited and

stimulated by the shopping experience

As the international shopping environment becomes increasingly hyper-

competitive – both conventional and online retailers will need to use

technology more effectively to differentiate themselves

1.Websites will need to be “sexier”, more intuitive, give better service and be

more navigable

2.The in-store shopping experience will need to be more efficient and help the

consumer arrive faster at a state of readiness to purchase

3.Technology will need to excite customers more by providing greater

sensory stimulation – both in-store and on-line


THE EVIDENCE – “SEXIER” WEBSITES many with UGC &

Mass Customisation



Mass Customisation

The Burberry Bespoke Trench – 2m options - $1500 - $8000. Gives customers

a unique product + detailed demand research for Burberry



Mass Customisation


THE EVIDENCE – Extreme retail experience + technology

Burberry Regent Street


THE EVIDENCE – Extreme retail experience + technology

INTERACTIVE HANGERS – by TeamLab of JAPAN -


THE EVIDENCE – Technology advances retail on-line

ETSY – The US website of the “Unique”


THE EVIDENCE – Technology advances retail on-line

Farfetch.com – UK website dedicated to finding and bringing customers the

unusual


THE EVIDENCE – Technology not helping much at POS?

POS Confusion still Rife – why?


THE EVIDENCE – Technology not helping much at POS?

The Current Inefficiency of Information and Transaction @ POS


THE EVIDENCE – Technology can and must help more at

POS

The Technology of “Ease” is already here?


5 Consumer Clustering – for finance strapped

consumers and market hungry retailers?

1.As retail markets generally tend to fragment more – a need to use IT more

effectively to “Cluster Consumers” more effectively will be vital – “BIG DATA USED

BETTER”?

2.Already consumer power is taking hold - e.g. GROUPON

3.Easier consumer price comparison is making deliberate “Confusion Marketing” a

thing of the past

4.Both consumers and retailers will move towards technology driven clustering to

improve price competitiveness and increase market share

5.The whole supply chain will need to be driven to deliver far greater efficiencies in

order to drive price savings all through the supply chain

6.The improved and more intelligent use of Big Data will need to become a key

priority – the big question however is who or what business function can drive this

best?


THE EVIDENCE – CONSUMERS LEARN ABOUT THEIR

BUYING POWER


THE EVIDENCE – PRICE CONFUSION MAY BE A THING OF

THE PAST?


THE EVIDENCE – CUSTOMERS & MARKETS ARE

FRAGMENTING FASTER – DO WE UNDERSTAND THEM?


THE EVIDENCE – CUSTOMERS & MARKETS ARE

FRAGMENTING FASTER – DO WE UNDERSTAND THEM?

AS MARKETS FRAGMENT = INDIVIDUALS DEMANDS BECOME MORE DOMINANT?


THE EVIDENCE – SUPPLY CHAIN EFFICIENCY NOW OF

THE UTMOST URGENCY

ROBOT PICKING


THE EVIDENCE – SUPPLY CHAIN EFFICIENCY NOW OF

THE UTMOST URGENCY

IMPROVING DELIVERY EFFICIENCY - A CONTINUOUS PROCESS


THE EVIDENCE – BIG DATA – IS GETTING BIGGER


THE EVIDENCE – BIG DATA – THE DATA DELUGE?


6 How will the Consumer use “The Internet of

Everything”?


“The Internet of Everything” MY BEST DEFINITION

“A totally connected Internet driven world; where a

majority of people, processes, data and things will be

seamlessly linked together by IT – in an endeavour to

enable humankind to succeed, survive, add value, and

deliver greater optimisation with efficiency. The key aim

will be to improve society’s well being and enable it to live

in a sustainable and equitable way, to the benefit of all the

world’s citizens without harming or exhausting our

environment”.


On the assumption it will arrive – most consumers/society

will clearly use it to

1.Take care of the their loved ones

2.Maximise/optimise their economic, natural and

personal resources

3.(Hopefully) consume more logically

4.Educate themselves, families and friends better

about all aspects of life

5.Seek pleasure and relaxation

6.Prolong and strengthen life and well being

7.Develop, sustain and cherish relationships


The implications for retailers & wholesalers?

Consumption patterns may therefore become more

•Logical

•Controlled

•Fulfilling

•Value adding

•Exciting

•Variable

•Less predictable

•Complex

Therefore more difficult to understand


The Potential Impact of all these factors on Turkish

Retailing

•Increasing foreign competition is now the way of the world – Turkish retailers

must use their local knowledge and strong existing infrastructure to maintain

their market share N.B. Both Benetton & Inditex have small market shares in

UK and C&A gave up and withdrew!

•Controlling and understanding fast changing fashion trends and demands at

both micro and macro level will the best weapon of defence against

competitors – Online shopping in geographically large countries has huge

potential – easy to be first N.b. Zara online shop in China – possibly H&M

soon?

•As the middle classes grow and spread across Turkey – this will the most

important phase for Turkish retailers to gain the “First Mover”

•All over the world – fashion retailers are all starting to look hard again at

home produced product – rather than depending on imports from abroad –

esp. China & India – This is where Turkey can score highly in the area of Fast

Fashion with its own textile and garment industries – speed is becoming more

important than price

THE LAST WORD

The key to surviving and thriving as the world comes into

recovery mode, will be to have clear understanding of

your markets and customers + sound IT& systems + the

application of the best available intelligence

FASTER CHANGE IS THE ONLY

GUARANTEE!

Teşekkürler!

SAp - HIZLI DEĞİŞEN ULUSLARARASI MODA PERAKENDESİ VE BAŞARI KRİTERLERİ - SAP Forum 2013

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Transcript of SAp - HIZLI DEĞİŞEN ULUSLARARASI MODA PERAKENDESİ VE BAŞARI KRİTERLERİ - SAP Forum 2013