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  1. Appendices

APPENDIX A: Online Retail Expenditure v/s total online retail growth (2012-2017) Forecasts

Figure 10.1: Online Retail Expenditure v/s total online retail growth (2012-2017) Forecasts
Source: Verdict (UK Annual Forecasts 2012-17: Online Report), 2012

Overall online retail growth peaked back in 2008. The growth rates of over 30% achieved back then are unlikely ever to return as the market has matured, and most retailers now have an online transactional presence. However, online still represents a major opportunity for most retailers. Online growth is still rapid pace and some sectors such as Clothing & Footwear – will gain by double- digit percentage rates for the next few years.

 

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APPENDIX B: Retailer’s views on growing online retail

Below can be seen the thoughts on the consumer attitudes towards fashion etail by many known retailers at the Draper’s breakfast round table at London’s Soho House in mid March. The views further show that shoppers from young to old are increasingly embracing the internet to both research and purchase fashion.

Name Brand/Position help

 

View

 

Simon Forster Debenhams (Director)

 

Fashion etail is becoming more mainstream. But it is still too early to say that everyone who shops in store is equally comfortable shopping online, although those customers who use both channels tend to be better customers. If every store has access and can order online, the store should be able to use the website as a back-up selling tool.

 

Richard Hatfield Sarah Coggles (Chief operating Officer) From an indie perspective our business is split 50/50. And we use the web to drive the brand – it’s a real marketing tool. Although growth is coming through the web at the moment, I would not rule out the option of opening more physical stores.
 

Warren Bennett

A Suit That Fits (co- founder) The web and stores are entirely complementary. For us, customers’ journey often begins in one of the etailer’s bricks-and- mortar showrooms: They are looking to meet us then go online and use the site. For us website is designed to encourage consumers to visit a showroom if it is their first point of contact with the company.

 

Alison Lancaster White Stuff (Home shopping director) The men certainly shop differently, and tend to be more interested in a very direct customer journey to get to the checkout page. The perceived best-of-breed standards for fashion websites mean many are starting to look very similar. There will be a new era of brand differentiation, and we want

to replicate the quirkiness of what’s in store.

Phil Raynor Austin Reed (Head of e-commerce) Technology is an enabler, but the customer will always be ahead of us. And a seamless experience between mobile and PC is what consumers will be looking for. If they are browsing a [mobile] site on the train and put an item in their basket, they should be able to go home and still see it in their basket [on the full website].
Tom Williams

 

Aurora Fashions Group (Head of ecommerce) The big challenge when introducing multichannel services – such as click-and- collect – is creating a seamless customer experience. He said etail innovation must be founded around what the customer wants.
Rob Worthington

 

Office (Ecommerce director) 12% to 13% of our site’s traffic comes from mobile phones, and already 5% to
6% of transactions are completed on handheld devices.

 

Harriet Williams Debenhams (Strategy and online marketing controller)

 

The pace of change for mobile adoption is important to note. Around a quarter of web usage is already on mobile phones, which could be much higher by the end of the year.

 

Henry Firth Arcadia Group (Customer Experience manager)

 

The growth of both mobile and iPads is exciting, and getting these experiences right is crucial. However, the big growth opportunity from online lies in expanding internationally.

 

Table 02: Retailer’s view on growing online retail Source: Drapers, 2011

The one area where there was much agreement from all the retailers at the table – as well as PayPal and 10CMS – was that customers increasingly expect a seamless experience across multiple channels, and retailers need to achieve it quickly. They also agreed on the fact that, technology only gives a transient advantage. The long- term advantages come from the brand experience. Also consumers are broadly very supportive of the investment retailers are making in selling and showcasing their products online. And the general agreement at the debate was that the constant change and customer demands in etail make it a particularly exciting time to be in the fashion retail industry.

APPENDIX C: M-Commerce Forecasts

 

Figure 10.2: M Commerce Forecasts Source: Verdict, 2012

M-commerce has become increasingly important and the explosion in tablet usage will ensure that this growth continues in the coming years. While m- commerce will grow to 22.4% of the online market in 2017, the impact of mobile devices on retail will be even greater, given their increased role in the decision process when buying goods through other channels and paying through mobile apps instore.

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APPENDIX D: Retailers’ view on Showrooming

Name Brand/ Position held  

Views

 

Sean McKee Schuh (Head of e-commerce) The short answer is we have had limited visibility of what our customers are doing on mobile in store. However, this is something we want to change and are currently rolling out free wi-fi across all of our UK stores. Currently the level of interaction with customers is low but the act of scanning for information and getting enhanced content is definitely a goer. If we can develop a technology that allows customers to key a product code onto a mobile site, and we can then tell them if a product is in stock in that store today, it will make the customer more comfortable to come into store and make the trip a happy one. Our customers are telling us they want it, so we have to do it.

 

Dan Parker Sponge (Chief Executive) Wi-fi in store creates rich marketing opportunities but hardly any retailers are offering wi-fi and even fewer are telling customers and benefiting from its full potential. Encouraging people to register when they’re in store opens up a huge opportunity to offer something of value, increase shopper loyalty and encourage repeat custom.

 

Sean O’ Connor John Lewis (Head of online delivery and customer service)  

Mobile has grown massively for us over the past few years. It’s a part of our customers’ everyday lives and it has to be part of our response to the changing retail landscape. The main driver has been through the increase in tablets and mobiles, which contributed to 28% of traffic to our website last year, up from 10% in 2011. Mobile has been an important part of our strategy for physical shops. Our app was specifically designed to give access to ratings and reviews from customers and staff. We introduced wi-fi in all our stores to make it easier for customers to browse the web when physically in our shops, and we are trialling in-store navigational maps in some shops too. We have also used QR codes and near field communication (NFC), mainly as a marketing tool in advertising, although QR codes in window displays were also a sales driver.

Kevin Edwards Affiliate Window Consultancy (Strategy Director)  

NFC has yet to reach critical mass due to handset and card limitations. I think it will come and this incentive will help drive consumers to engage with it. At present we’ve yet to see any innovative publisher models emerge to take advantage of NFC, but it will come when the opportunity is better understood.

Dan Hartveld Red Ant (a digital strategy agency) Director Geo-fencing can be used effectively. Retailers have the data so they need to decide what the message is going to be and use purchase history to drive a personalized offer and incentive, connecting the journey from mobile to in store.

 

 

Sainsbury’s technology allowing consumers to buy as they shop rather than having to go to a till, show how shopping behaviour is changing and retailers are adapting themselves.

 

Edwards Meat Pack (a footwear store) Marketing Strategy Analyst A discount was pushed to consumers [via their mobiles] who were within a short distance of the Meat Pack store and counted down from 100% to 0% [discount] based on how quickly the customer could get to the shop. Clearly designed to achieve wider media coverage, it succeeded, but it serves to show how interruptive and powerful this small device all of us now carry around can be. Simplicity can be appealing.
Jim Davidson Bronto Software (Manager of marketing research).  

With so many opportunities available, retailers need to focus on which ones will work for them. A 2012 study by Google/Ipsos found that 85% of consumers will start shopping on one device and finish on another. You can’t ignore that. You must make the shopping experience seamless and convenient, while keeping their interest and attention.

 

Table 03: Retailers’ views on Showrooming Source: Drapers, 2011

The greatest advantage of having mobile, as an integral part of retailers’ multichannel strategies is that customers have their devices on them at all times. But is this mobile dependency – and retailers’ eagerness to tap into it – fostering promiscuity among shoppers? Even worse, is it actually leading them away from stores? The above table shows the various ways in which the retailers are trying to escape the practice of Showrooming by offering its customers better options. The initial reaction from many retailers was to try and curb this behaviour, but that risked damaging the relationship between the customer and the brand. Many retailers have concluded that they need to embrace the trend towards by looking at ways of improving interaction with shoppers in store.

APPENDIX E: Mintel’s forecast on consumer spending (Clothing & Accessories)

 

FIGURE 10.3: CONSUMER SPENDING ON CLOTHING AND ACCESSORIES (INCL. VAT), 2008-18
Source: Mintel, 2013

APPENDIX F: Focus Group Transcript 1

Moderator : Riyaa Kalaani

 

Number of Participants : 08
Time Taken For interview : 60 Mins
Location : Bristol
MODERATOR Hello guys, let us start of by telling me the frequency of your shopping?
PARTICIPANT-1 “Oh! I just love wearing stylish and trendy clothes so I shop once in a week”
PARTICIPANT-2 “I don’t get much time from my studies so I shop once a month only”
PARTICIPANT-3 “I usually go for shopping almost once in 15 days to buy some accessories”

 

PARTICIPANT-4 “Haha…I don’t want to answer this because if my father comes to know that I am spending this much he is going to scold me. But let’s say that I shop twice a week”
PARTICIPANT-5 “I find shopping my stres buster so I go for shopping whenever I am upset”

 

MODERATOR “Hmm… it looks like father needs to know how his money is being sent… haha”. All the participants start teasing participant 4.
PARTICIPANT-6 “I get very limited pocket money so I shop only once a month”

 

PARTICIPANT-7 “Hey, I also prefer hanging out with my wife and friends so I guess I also shop frequently”

 

PARTICIPANT-8 “I have a big group of friends from office and I love to hang out with my colleagues and all of us are earning so I go to shopping for at least twice or thrice a month”
MODERATOR Ok.. So now tell me which medium do you all prefer for shopping- online or offline? Which if these two is more convenient to you?
PARTICIPANT-1

 

“I just love browsing and surfing net on my iPhone so I prefer online shopping”
PARTICIPANT-2

 

“Shopping is a waste of time, money and energy. I prefer wearing simple clothes so I don’t give much time to

 

shopping rather I would utilise that time to study so I save my time and energy by shopping online”

 

PARTICIPANT-3 “Hmmm…It depends on my mood. If I have to go out with friends then I prefer moving out or else if I am alone I shop online itself”
PARTICIPANT-4 “Out of my busy schedule of office I don’t get much time to go for offline shopping so I conveniently buy things online “
PARTICIPANT-5 “I prefer online shopping”

 

PARTICIPANT-6 “I would rather go for offline shopping to try the clothes and footwear to be sure about the size and fitting”

 

PARTICIPANT-7 “When I go with my wife then I go for offline shopping because she takes much time in selecting the items from different shops but for my personal shopping I prefer online”
Everyone starts laughing…. Moderator here funnily suggests participant 7 not be so sarcastic about his wife and give the lady some extra time to move around into different shops
PARTICIPANT-8 ‘I like going out with my friends and colleagues so I end up shopping offline”

 

MODERATOR So now here comes my third questions about the products which you people usually shop for?
PARTICIPANT-1 It’ s a tough question as I buy so many things but mostly I end up buying latest and trendy clothes and shoes”
PARTICIPANT-2 “ I don’t like shopping much so I buy only the necessary clothes and few accessories with a good combination”
PARTICIPANT-3 “I like shopping with friends so most of the time I end up buying shoes, belts, clothes and accessories.

 

PARTICIPANT-4 “Oh! It is really a tough one as I buy things according to my need. Let’s say that I buy more of clothes and accessories “
PARTICIPANT-5 “I like to wear matching footwear with my clothes so I buy shoes and sandals very frequently”

 

PARTICIPANT-6 “I don’t go shopping with something in my mind. I like instantly what I like”
PARTICIPANT-7 “I go with my wife most of the time so she ends buying something rather than me”
MODERATOR

 

Looks like someone here loves his wife…. Hmmm…All the participants gives a smile to participant 7
PARTICIPANT-8

 

Hey, this is a very good questions as I just love shopping so I buy all kind of products which ranges from clothes, heels, jewellery – accessories etc.
MODERATOR I guess people here love to spend their money to look good. Is that right? All participants give their nod in yes.
MODERATOR

 

Ok, so now tell me which kind of shopping do you
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I'm an eCommerce Project Director at an agency in London and a consultant for a number of eCommerce start-ups. I founded Think etc 9 years ago which now lets me share my research and experience with all the interesting brands, people, places and projects that I have been privileged to work with. My work on crowdsourcing was published by Oxford as part of a journal article and I have been obsessing over eCommerce and Magento over the past several years.

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