VIBRANT INDIA - Technopak - India TLF 2014.pdf · vibrant india e x p l o i t i n g ... retailers...
Transcript of VIBRANT INDIA - Technopak - India TLF 2014.pdf · vibrant india e x p l o i t i n g ... retailers...
VIBRANT INDIAE X P L O I T I N G T H E R E T A I L R E V O L U T I O N
Daniel Cotton
EVP, WGSN Asia-Pacific
30 October 2014
• We are WGSN Group
• The New Indian Retail Landscape
• Expectations of the 2015 Consumer
• Building Technology Solutions Around aTech Consumer
• Building Insight Around Your Buying & Merchandising Teams
A G E N D A
PA R T O F T H E T O P R I G H T G R O U P
£300M REVENUES50% EX-UK
12% HEADLINE GROWTH
1,800 EMPLOYEES
ACQUIRING AND
LAUNCHING
FIVE OPERATING COMPANIES
DOUBLE DIGIT GROWTH
LAUNCHING MORE PRODUCTS YEAR ON YEAR
AN INTERNATIONAL B2B, MULTI-PLATFORM MEDIA GROUP
W G S N – 1 6 Y E A R S O F D I G I TA L S E R V I C E S
Apparel and fashion
Soft and hard goods
4,000 clients
Every Fortune 500 apparel brand
Daily data
100 retailers
10,000 brands
11m SKUs
Own and competitor range analysis
FMCG, Analysts and retailers
Sale and retail analytics data
Strategic analysis of retail value chain
>70% growth yoy
Clients on 5 continents
Product, planning, strategy and training
TRENDSPLANNING &
BUYINGRETAIL
STRATEGYCONSULTING
T H E R E TA I L R E V O L U T I O N H A P P E N I N G I N I N D I A
Source data:
Planet Retail ShopologyThe science of modern shopping
WHERE ARE YOU ON YOUR
CONVERGENCE JOURNEY?
ONLINE
COMPETE ON NEWNESS
FASTFASHION
WHO ARE YOU TARGETING?
MILLENNIALS
COMPETE ON NEW
TECHNOLOGY &
INNOVATION
FASHTECH
SMART PHONE
Access to internet that
wouldn’t otherwise have
a connection to this
channel
M U K E S H B A N S A L , C E O M Y N T R A & H E A D O F F A S H I O N AT F L I P K A R T
“"I'm open to the idea of a strategic (investor) if
the DNA is similar, and the investor has a deep
technology know-how with a vision to grow
Myntra over the next 5-10 years,“
“Building a winning business required the
focus to resist doing too many things at once,
while finding the right blend of fashion and
technology.
S T E V E S U N N U C K S ,
G L O B A L P R E S I D E N T O F
G A P
“India is an emerging, vibrant market and an
important next step in our global expansion strategy.
In india we will integrate our physical and online
offerings”
“Gap is loved around the world for our American
casual style and enduring value and quality”
We are so pleased to bring our brand and
products to life for customers in India”
K A R L - J O H A N P E R S S O ,
C E O O F
H & M
FA S H I O N P L AY E R S A R E S P R E A D I N G T H E I R W I N G S
R E TA I L E R S A R E C H A N G I N G C O M P E T I T I V E D Y N A M I C S
L O C A L R E TA I L E R S – G E T T I N G I T R I G H T
International brands are looking to exploit the opportunities provided by India’s blossoming e-
commerce market
I N T E R N AT I O N A L R E TA I L E R S L O O K I N G AT M A R K E T E N T R Y
M E E T T H E C O N S U M E R O F 2 0 1 5
ALWAYS
CONNECTED
TRUST IS
CONVENIENCE
IGNORE ADS
SEEKS
AUTHENTICITY
OPINIONATED &
SHARES IT
VALUE CONSCIOUSREQUIRES
IMMEDIACY
FOLLOWS RITUALS
Source data: infographic by Reuven Gorsht
1 . P R O V I D E S E A M L E S S O N L I N E E X P E R I E N C E S
The share of online spending via mobile devices is growing, so retailers need to adopt a
“device agnostic” strategy.
PC/Laptop73.3%
Mobile13.7%
Tablet13%
2012
Global Spend Online:
Proportion by Device, 2012 vs. 2013 (%)
Source data:
Planet Retail ShopologyThe science of modern shopping
Spend via MOBILE Up
$342mn in a YEAR.
A growth of 116%PCLaptop43.5%
Mobile28.4%
Tablet28.1%
2013
2 . A P PA R E L S H A R E O F O N L I N E S P E N D I S G R O W I N G
Apparel share of online spend growing as consumers gain confidence in retailers
improving propositions.
Apparel as a proportion of online spending:
2012 vs. 2013 (%)
Source data:
2012 2013
12.3%
$263mn
13.9%
$310mn
Planet Retail ShopologyThe science of modern shopping
2 . A P PA R E L S P E N D V I A M O B I L E I S O N T H E R I S E
The share of online spending on apparel via smartphones is growing.
2012 2013
10.2% 23.8%
Apparel as a proportion of online spending via smartphones:
2012 vs. 2013 (%)
$27mn $74mnSource data:
Planet Retail ShopologyThe science of modern shopping
2 . R O L E O F P C / L A P T O P R E M A I N S I M P O R TA N T
Despite the rise in smartphone shopping, when it comes to buying apparel online in the future, our
research shows that the PC or laptop remains important
Likelihood of shopping online for apparel by each device in the future:
Very Likely and Extremely Likely taken
Source data:
49% 46%52%
Planet Retail ShopologyThe science of modern shopping
32% 33% 30%
BASE Size: 1,597
2 . S E A M L E S S O N L I N E E X P E R I E N C E
Our shopper research revealed the need to cater for the device agnostic consumer
Source data:
57%
56%
55%
54%
Good product information
Ease of use
Good quality images
Clear product reviews
Regardless of device, website features deemed
important...
Choice of online retailer influenced by...
62%a quick & easy to
use website and
checkout process
58%a website with lots
of features and
functionality
Planet Retail ShopologyThe science of modern shopping
BASE Size: 1,597
3 . E M P O W E R S M A RT P H O N E U S E R S
Mobile provides shoppers with a powerful tool giving complete transparency of a retailer’s
proposition.
Shoppers currently use their mobile to…
47%check prices when
instore
44%compare products and
read reviews when out
shopping
Source data:
Planet Retail ShopologyThe science of modern shopping
BASE Size: 1,597
3 . E M P O W E R S M A RT P H O N E U S E R S
With shoppers wanting to use their mobile to guide purchasing, the device is becoming the
ultimate shopper companion in a price conscious country
Our research in India shows us that Shoppers
WANT to use their mobile to…
55%quickly and easily
compare prices
Source data:
49%receive real time offer,
promotions, discounts
might be eligible for
45%Gather loyalty points or
savings as you shop
44%Pay using your mobile
at the checkout
Planet Retail ShopologyThe science of modern shopping
BASE Size: 1,597
4 . U S I N G O N L I N E F O R FA S H I O N S H O P P I N G I N I N D I A
Our shopper research shows us that apparel shoppers are turning to digital channels for
inspiration as well as to make purchases
Likelihood of using internet when shopping for fashion
Very Likely & Extremely Likely
55% Buy core essential items
47% Buy high-street fashion
54% Get inspiration on the latest fashion trends that would suit me
Watch videos to get style ideas or tutorials for fashion advice48%
Source data:
Planet Retail ShopologyThe science of modern shopping
BASE Size: 1,597
4 . B A R R I E R S T O O N L I N E A P PA R E L
Our shopper research shows us that similar to other markets, and indicative of the tangible
nature of apparel, the biggest concerns for shoppers in India are around fit and quality
Shopper view of buying clothing online
Agree with statement
68% I am concerned about the quality of clothing online
54% I like to try on the clothes instore, and then buy them online
61% I'm worried what I buy online will not fit me properly
Concerned over what is on website is not a true reflection of product
59%
Source data:
Planet Retail ShopologyThe science of modern shopping
4 . B A R R I E R S T O O N L I N E A P PA R E L
From the results of our research in India, the factors of importance to online apparel
shoppers are centred around alleviating fears over size and fit, while linking the digital to
the physical worlds
Important features when buying fashion
Overall importance
62% A zoom function that clearly displays the small details of a product
54% See if product was available instore and online from a retailer
59% View a comprehensive size and fit guide
Quickly and easily filter products online by size, colour, style59%
Source data:
Planet Retail ShopologyThe science of modern shopping
BASE Size: 1,597
5 . C R E AT E A C O M P E L L I N G I N S T O R E E N V I R O N M E N T
Instore technology must not be used for technology’s sake - solutions that are
implemented must solve a problem or meet a need.
22%have used an interactive
display instore to search
more product ideas and
suggestions
20%of shoppers have interacted
with staff equipped with
tablets
35%of shoppers have
accessed a retailer’s free
instore Wi-Fi using a
mobile
Source data:
Planet Retail ShopologyThe science of modern shopping
6 . F U L F I L M E N T - A C O M P E T I T I V E D I F F E R E N T I AT O R
Payment and fulfilment in India is a huge competitive differentiator
61%Offered more flexible delivery
times and options
61%Offered same or next day delivery
From our shopper research, we know that the choice of retailer is influenced by...
Source data:
51%Accepted alternative online
payments (such as cash on
delivery, cash on instore collection)
Planet Retail ShopologyThe science of modern shopping
• Over 1,000,000 products
• Over 10,000 brands & retailers
• Over 150 product sub categories
• Over 11 million data points (SKUs)
• UK, North America or Australia view
• Filter by retailer, brand,
price band, style, colour and pattern
• Track markdowns
• Track stock levels
SHORTER PRODUCT LIFE CYCLE
SHORTER PLANNING CYCLE
SEASONAL BLURRING
FASTER FASHION
U S I N G D ATA TO I D E N T I F Y E M E R G I N G T R E N D S
ANALYSIS ASOS: We identified a trend of some SKU’S out of stock for tapered
trousers 69% v’s leggings 67%
VERDICT: More potential to optimise tapered trousers as this will carry through
to winter, and ensure correct pricing and colour
SPOTTED: Tapered trousers moving fast
ANALYSIS KOOVS INDIA: We identified a trend of tapered trousers 33%
(12% ASOS) and leggings 27% (66% ASOS)
WGSN INstock Retail Analytics™
U S I N G D ATA T O I D E N T I F Y M O D E R N E M B E L L I S H E D
ANALYSIS RIVER ISLAND: We identified a trend of flat embellished sandals
with moving into chunky sole, already showing some SKU’s out of stock
VERDICT: More potential to optimise in high spec embellished sandals with a
western twist
SPOTTED: Contemporary Embellished sandals
ANALYSIS M&S: We identified a trend of up spec leather and comfort
WGSN INstock Retail Analytics™
U S I N G D ATA TO I D E N T I F Y M E N S P R O D U C T M I X
ANALYSIS ZARA: We identified a trend with plain t-shirts second highest mix
at 46% (46% 7 mid market retailers) with printed t-shirts at 53% (53%.
VERDICT: More potential to optimise up spec plain t-shirts, the conservative
style fits with a wider age demographic and reduces risk
SPOTTED: Men‘ s plain tee
ANALYSIS JABONG INDIA: We identified a trend of printed t-shirts, 70% of
the mix compared to just 30% plain
WGSN INstock Retail Analytics™
U S I N G D ATA TO I D E N T I F Y F I R S T TO M A R K E T
SPOTTED: New look fast selling tops – kimono full price
VERDICT: More potential to optimise kimono, the conservative style (light
weight cardigan) fits with a wider age demographic and reduce the risk
WGSN INstock Retail Analytics™
W G S N I N S TO C K – K E Y L E A R N I N G S
ADOPT THE NEWNESS & INCREASE DROP SPEED OF FAST RETAILERS. INCREASE
THE MIX OF CONSERVATIVE FEMININE SHAPES AND PLAY WITH COLOUR
KNOW YOUR CUSTOMER
USE COMPARATIVE SHOPPING TOOLS TO COMPILE ONLINE COMPETITIVE
CATALOGUES, AND MONITOR PATTERN AND COLOUR SUB TRENDS
MONITOR THE COMPETITION DAILY, WHAT’S YOUR NEXT PRINT VEHICLE?
WGSN INstock Retail Analytics™
BIGGER DATA + BETTER ODDS
O L I V E R S A M W E R , R O C K E T I N T E R N E T
“Software, infrastructure, logistics, payment systems are the critical enablers of eCommerce .
Last mile is the key to success. All needed for last mile delivery:
drivers with their own bikes. Give them t-shirts and GPS.”
Appendix
A Service
Online Apparel Retailers in India
October 2014
Marina PintoAssociate Analyst
Jabong.com
History • Jabong was co-founded in 2012 by Arun
Chandra Mohan, Praveen Sinha, and Lakshmi Potluri and Manu Kumar Jain.
• Jabong is owned by Gurgaon based Xerion Retail Pvt Ltd which is backed by German based Rocket Internet.
Strategy
• Jabong plans to introduce two-three private label brands in the next 4-5 months. The company has set up a full fledged design team in London that would be focusing only in creating the design.
• Jabong recently partnered with Swarovski Elements. With this unique association with Swarovski, Jabong will bring the Indian consumers closer to the global aspired fashion and luxury scene.
• By launching Next Door service which helps customers to pick their orders at the nearest coffee shops, petrol station or tour operators ; Jabong aims to target impatient customers awaiting faster delivery and attracting new customers from remote villages where courier companies cannot reach their doorstep.
Revenue
• For FY 2013 - 2014 , Jabong posted revenue of INR4.3billion (USD 73.6 million) and net loss of INR2.9 crore (USD49.2million)
Myntra.com
History• Myntra was eastablished in Febuary 2007 by
Mukesh Bansal, Vineet Saxena and Ashutosh Lavania.
• Myntra has been recently acquired by Flipkart for an estimated USD370 million, which is one of the biggest deal in the country’s e-commerce market.
Strategy
• Recently Myntra announced its plans to set up office in London in cooperation with European design studios. Myntra aims to frequently release new designs from the London studio to enhance its private brands.
• In 2013, Myntra acquired Fitiquette to be amongst the first retailer to introduce virtual fitting room in India . Myntra will also incorporate Fitiquette’s core product within its website.
• Myntra is tying up with international brands like Mango and Gap to increase its web traffic. Myntra has partnered with over 650 fashion and lifestyle brands. Myntra is driving its sales through myntra coupons.
Revenue
• In 2013-2014, Myntra posted revenues of INR8 billion (USD134.3 million)
Strategy
• Snapdeal partnered with Fashion Design Council of India to launch The Designer Studio. Snapdeal expects sales of INR60 billion from the fashion category by next fiscal. The e-tailer aim to provide access to exclusive and premium designer creations for customers, to meet their aspirations and help improve availability.
• Snapdeal is focusing on enhancing its technology and processes to improve seller experience on its online platform. It takes four hours for a seller to start selling products on Snapdeal.com.
History• Snapdeal.com was founded by Kunal Bahl
and Rohit Bansal which started in February 2010, as a daily deal platform but later moved into retailing across various categories.
• Snapdeal.com sells products across various categories like electronics , home kitchen , automotive etc.
Revenue
• In 2013-2014, Snapdeal posted revenue of INR1.68 billion ( USD28.2 million).
Snapdeal.com
Source: http://trak.in/tags/business/2014/06/04/top-10-indian-e-commerce-sites-comparison/