Sourcing & Buying in the Decade of Personalisation (Fashion Forward April 2014)
Transcript of Sourcing & Buying in the Decade of Personalisation (Fashion Forward April 2014)
Sourcing and Buying in the Decade of PersonalisationFashion Forward
April 2014Kiyan Foroughi – CEO & Co-Founder
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.
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.
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.
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
This Decade is the Decade of Personalisation
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.
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.
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?
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.
New Fashion CapitalsSeoul, South Korea
New Fashion CapitalsIstanbul, Turkey
New Fashion CapitalsAmsterdam, The Netherlands
New Fashion CapitalsBuenos Aires, Argentina
New Fashion CapitalsTaipei, Taiwan
New Fashion CapitalsTokyo, Japan
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
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
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.