Sourcing & Buying in the Decade of Personalisation (Fashion Forward April 2014)

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Sourcing and Buying in the Decade of Personalisation Fashion Forward April 2014 Kiyan Foroughi – CEO & Co-Founder

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Here is a presentation I gave at the Fashion Forward conference in Dubai on April 11th 2014 on the topic of sourcing and buying in this decade - the decade of personalisation.

Transcript of Sourcing & Buying in the Decade of Personalisation (Fashion Forward April 2014)

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Sourcing and Buying in the Decade of PersonalisationFashion Forward

April 2014Kiyan Foroughi – CEO & Co-Founder

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BackgroundBoticca is the world’s online destination for jewellery, bags and fashion accessories made by carefully sourced independent designers and small & medium brands from across the world.

We currently work with 370 brands from 40+ different countries and offer over 11,000 different pieces for sale on the website on a curated marketplace business model to customers in 60 different countries on any given month.

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Last Decade: The Decade of Mass Production & Fast Fashion• In the 2000s, the world became a smaller place

and experienced unprecedented growth until the financial crisis.

• Brands like H&M, TopShop, Mango and Zara expanded aggressively and filled out the closets of consumers worldwide.

• Everyone was left buying the same products: – Mass produced – Low quality – Impersonal

• We were left with mass consumerism...and no differentiation.

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What Is Changing This Decade• Technology has made the consumer savvier and

smarter than ever.

• Smartphones, tablets, social networks, marketplaces and the development of global e-commerce has given users unprecedented amounts of tools to discover products and brands from all over the world.

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What Is Changing This Decade• Consumer fatigue is settling in:

– Same brands – Same products – Same boring marketing messages – Same formulas

• People are tired of wearing the same products that they’ll most likely see on their friends, colleagues and family.

• Customers are looking for: – Something different – Something unique – Something that reflects their personality and style – Something that allows them to stand out

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This Decade is the Decade of Personalisation

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The Consumer Is More Sophisticated In Its Choices• They are not only looking for differentiation, but they

are looking to build a relationship with the brand.

• They want to know: – Who is the maker? – How is it made? – Where is it made? – Where are the materials from? – What are the brands’ values and how does that reflect on them?

• Therefore, a more sophisticated customer in the pursuit of differentiation needs in evolution in how retailers and boutiques source their brands and products.

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How to Source: There Needs To Be A Story• This is where it all starts.

• Whether it is in: – the background of the brand or designer – the inspiration of the collection – the materials used – the techniques employed – where it is made

• There needs to be a story somewhere, and it needs to be communicated to the customer.

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How to Source: Know Your Market

Define your market and target audience

Who is your ideal customer?

What is their average spend?

What are their habits?

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How to Source: Geography• The world is already one big village, so make sure your

products reflect a global style and awareness.

• Be more creative with where you source your brands.

• Don’t just focus on sourcing from the traditional fashion capitals (Paris, London, New York and Milano) and explore places off the beaten path.

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New Fashion CapitalsSeoul, South Korea

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New Fashion CapitalsIstanbul, Turkey

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New Fashion CapitalsAmsterdam, The Netherlands

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New Fashion CapitalsBuenos Aires, Argentina

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New Fashion CapitalsTaipei, Taiwan

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New Fashion CapitalsTokyo, Japan

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How to Source: Quality & Production• Make sure you do a deep dive into the quality of

products and how they are made: – Materials: where are they from? – Techniques used – Workshop & production facilities – Quality control

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How to Source: Pricing & Data• One of the most overlooked components of the

sourcing and crucial to get right.

• Compare your mark-up and price to what else is available out there.

• Customers do price comparison shopping, you should too.

• Make sure your mark-ups are fair – customers are savvy and unless you’re a premium brand or offering a premium experience, they’ll figure it out and take their business elsewhere.

• Let the numbers be your guide: – Rates of sale – Sell through percentages – Returns vs. Sales

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Laying It All Out for the Customer• Online: detailed product descriptions, pictures and

details on where the materials are sourced from.

• Offline: information on tags, an in-store experience that reflects the brand and the story.

• Make sure shop staff are well-versed and can tell the stories.

• Transparency is key.

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Conclusion

Personalisation

Stories

Provenance

Global

Numbers

Transparency

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Thank you!

Any [email protected]