Omni-Channel Retailing: The Future Trend in Fashion and Luxury Industry - Part 2/2

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This publication offers you insights into: -The most important findings from various surveys that were recently conducted on the changing behauviors of consumer -Best Omni-Channel marketing practices of more than 60 famous brands and retailers. -More than 25 successful future retail trends and opportunities in Fashion

Transcript of Omni-Channel Retailing: The Future Trend in Fashion and Luxury Industry - Part 2/2

Page 1: Omni-Channel Retailing: The Future Trend in Fashion and Luxury Industry - Part 2/2

Omni-Channel Retailing:The Future Trend in Fashion and Luxury Industry Part 2/2

PublicationMay, 2014

The sequel to Fashionbi’s extensive research on Omni-Channel RetailingFocus on Merchandising, Events and Offline Advertisements/ Promotions.

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Index

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

1. Omni-Experience With The Merchandising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131.1. Omni-Touchpoint: Merchandising and Social Media . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

1.2. Omni-Touchpoint: Merchandising and Brand’s Website . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

1.3. Omni-Touchpoint: Merchandising and Brand’s E-Commerce/M-Commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

1.4. Omni-Touchpoint: Merchandising and Brand’s App . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

2. Omni-Experience At Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 452.1. Omni-Touchpoint: Events and Social Media . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

2.2. Omni-Touchpoint: Events and Brand’s Website . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

2.3. Omni-Touchpoint: Events and Brand’s E-Commerce/M-Commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

2.4. Omni-Touchpoint: Events and Brand’s App . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

3. Omni-Experience With The Offline Advertisements/Promotions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 753.1. Omni-Touchpoint: Offline Advertisements/Promotions and Social Media . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

3.2. Omni-Touchpoint: Offline Advertisements/Promotions and Brand’s Website . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

3.3. Omni-Touchpoint: Offline Advertisements/Promotions and Brand’s E-Commerce/M-Commerce . . . . . . . . . . . . . . . . . . . . . . . . 97

3.4. Omni-Touchpoint: Offline Advertisements/Promotions and Brand’s App . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

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In the publication you can find case-studies about the following brands

Adidaspage 27, 84

Aldopage 82

Alexander McQueenpage 20

Batapage 81

Belstaffpage 60

Bottega Venetapage 54

Bouthentiquepage 81

Burberrypage 26, 59, 64

C&Apage 18

Cartierpage 29

Coachpage91

Diane von Furstenbergpage 53

Dieselpage 83

DoDopage 93

Estee Lauderpage 80

Etropage 97

Fendipage 58

Freyapage 106

Gappage 53

Geoxpage 25

Giorgio Armanipage 90

Guccipage 41, 58

Hermèspage 79, 89

Hugo Bosspage 52

Izzuepage 23

Jaeger-LeCoultrepage 89

John Lewispage 25

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Metersbonwepage 33

Moschinopage 66

Moynatpage 29

New Balancepage 36

Nikepage 19,28,82

Nordstormpage 17

Oscar de la Rentapage 79

Pepe Jeanspage 101

Primarkpage 28

Sephorapage 35, 59

Swatchpage 100

Tiffany and Co.page 40

Tissotpage 70

Rolexpage 30

Rebecca Minkoffpag 51

Massimo Duttipage 24

Me&Citypage 33

Levi’spage 92

Liu Jopag 97

Louis Vuittonpage 54, 107

Macy’spage 24, 57, 70

Mangopage 97

Marc Jacobspage 85

Marks & Spencerpage 101

Mary Katrantzoupage 67

Kitonpage 93

Lancomepage 54

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Urban Outfitterspage 33

Valentinopage 52

Van Cleef & Arpelspage 71

Versacepage 92

Volga Verdipage 20

Wonderbrapage106

Zarapage 14

Tommy Hilfigerpage 50

Topshoppage 49, 65, 69

Uniqlopage 19

TRESemmépage 99

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Description of points

Besides this icon, you would

find examples of the latest and

most innovative trends in the

market. These are examples

of some digitally advanced

fashion and luxury brands or

from other sectors of retail.

Trends and Opportunities

of what can be

This icon includes some of the

best omni-channel strategies

that fashion and luxury brands

have implemented in the

recent past with their detailed

description and pictures for

your better understanding.

Case-Study

Clicking on this link would lead

you to the video that describes

either the case-studies or

the trends and opportunities

in detail. These short videos

would help you understand the

examples quickly and easily.

Video

This symbol could be used to

identify the most interesting

and thought provoking

statistics and facts related

to Omni-Marketing topic.

This includes number and

charts which would help you

understand the market better.

Interesting

to know

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We are all shoppers. We are all consumers. The incredible thing is - we all have our unique and personal view on the shopping experience. Retail industry is undergoing a complete makeover. Historic shifts have taken place in the fields of

economics, demographics, consumerism and technology. All that was known about retail till now has suddenly become a thing of the past. No more ‘typical’ consumer, no more ‘geography’, and no ‘one size fits all’ solutions anymore.

We are living in a world where ‘total information available’ and ‘ways to access this information’ follow Moore’s law or probably outrun it. This instantaneous availability of information at our fingertips is constantly changing everything about us. How we communicate; how we seek, receive and process information and how we entertain ourselves has changed

dramatically over the years. The newest addition is - how we shop.

Shopping experience in no longer confined to the physical walls of the store. There are more ways to instantly connect to the information, people, brands and the companies, than ever before. Consumers, empowered with technology and

information, actually can know more about the product than the salespeople at the store. All this helps consumers make better and informed decisions.

These ‘smart consumers’ are constantly rewriting the sense of the retail industry. They control - When, Where and How to shop. They don’t think in terms of channels but in terms of getting things done easily, quickly, cheaply and even in funny

ways. And they want it... Anytime... Anywhere.

Welcome to the world of omni-present Shopping!

Yana BushmelevaCOO of Fashionbi

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IntroductionIn the previous publication of Fashionbi that was published in January 2014, we

had introduced the concept of Omni-Channel Retailing which is the future trend

in the luxury and fashion industry. As the name suggests, this publication is a

sequel to the previous one. Before we go into the topics of this publication, let us

have a quick recap into what was dealt with earlier as this would help understand

the new topics better.

Over the recent years, there has been a change in the approach to marketing.

What was initially just a single channel for marketing, slowly evolved to multiple

channels. But with the recent boom in technology, growth of social media and

easy access to the internet at all times, marketers are slowly embracing the

concept of Omni-Channel Marketing. This change is mostly due to the behavior

of the present day shopper who is empowered with information thanks to the

technology. They research the product on various channels before they make the

final decision to purchase it.

In short, Omni-Channel retailing is offering a seamless integration of all the

various channels of the brand. This way customers have access to all information

irrespective of time or location. We , at Fashionbi have developed a methodology

to help marketers implement this concept for their brands and create a consistent

omni-channel experience for their customers across their different channels.

The first step involves identifying the different situations at which a customer

would come into contact and experience the brand. This involves both online and

offline experiences. Online experiences could be through a search engine, social

media, the brand’s official website and so on. While the offline experiences could

include anything starting from the store window to the fitting rooms to the various

events organized by the brand.

Once these situations are identified, the second step involves mapping what we

call the ‘Omni-touchpoint’. An omni-touchpoint is a situation where an offline

experience could combined with an online experience with the help of some kind

of technology. After mapping this omni-touchpoint, marketers would have to

think of everything a potential customer could do at this touchpoint and describe

this situation. Doing this would shed light on what the brand is already doing at

these Omni-Touchpoints to provide their customers with a seamless integration

of their channels and would indicate the situations where there is room for further

improvement.

Previously, we had dealt in detail with the omni-experience at the store window,

inside the store and at the fitting room. These Omni-Touchpoints were explained

in detail with the help of examples of the best practices by brands today. Further,

the trends and opportunities in each touchpoint were also identified. In this

publication, which is a continuation of the previous one, we will explain about the

omni-experience with the merchandising in the store, events organized by the

brands and offline advertising and promotions.

In the three months since our first publication in which we called Omni-Channel

as the future trend for retail, several other publications and surveys by the world’s

leading consulting and advisory firms have agreed with us and established this as

a fact.

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A recent survey by PricewaterhouseCoopers that was published in February 2014 revealed that today’s customers consider brands to offer cross-channel shopping

as a norm and they also expect brands to have convenient physical stores, websites capable of handling purchases and a mobile site or app as a given. Customers

empowered with technology have raised the bar high up for every brand and retailer. Here are some of the most important findings from the survey by PwC:

1. A compelling brand story that promises a distinctive experience

Certainly product price and availability are time tested reasons for choosing one brand over another, but a closer look reveals that ‘brand trust’ is the number one factor

that customers give for shopping at their favorite retailer. Changing how the brand is communicated helps strengthen the brand’s image.

2. Customized offers based on personal preferences and information which are totally protected

Even while cyber-security is a major concern for online shoppers, they increasingly want personalized offers based on their previous purchase history. The percentage of

shoppers who visited the social media pages of brands for offers after receiving a personal message or mail has increased over the past year.

3. An enhanced and consistent experience across all devices

It is increasingly important for brands to stay technically agile across all devices as more and more customers are embracing a range of devices to shop. Customers

should be able to access as much information on all channels.

Top regions for mobile phone shoppingDo you buy products using a mobile phone/smartphone?

ɦǍᓬǍǓChina

23%

77% ȮǍऽǍǓMiddle East

48%

58% ɘǍ႑ǍǓIndia

31%

69% ȠǍփǍǓGlobalaverage

57%

43%

Yes

No

Base: 15’080 (Global), 900 (China), 1’006 (India), 1’000 (MIddle East)Source: PwC Global Total Survey 2013

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4. Transparency and real time information into a retailer’s inventory

While customers cannot get enough of in-store technology like virtual try-on mirrors and so on, more than 20% of the shoppers would like to be left alone while they

shop. Of those 20% of the shoppers, almost 50% of them wished to check out other stores and the stocks in-stores to aid their purchase. To implement this, most

brands would need to upgrade their back office, warehouse and distribution channels.

Consumers value inventory transparency over other types of in-store technologyWhich of the following in-store technologies would make your shopping experience better?

Base: 15’080Source: PwC Global Total Retail Survey 2013

Ability to check other store or online stock quickly

In-store WIFI with fast, siple, login

Sales associates who can take paymentwithout going to the cash register

Sales associates with tabletsto show you alternative products

Using your mobile phone topay for your shopping

Pay for an item through the store’s app

None of the above

46%

31%

27%

23%

21%

20%

20%

20% 30% 40% 50%10% 0%

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5. To maximize the value of mobile shopping, both store apps and mobile

sites must improve

With the global penetration of mobile internet services expected to reach 54% by

2017 compared to fixed broadband which would reach 51% of the population, it

is important for brands to concentrate more on both mobile websites and apps.

While apps can be used to improve the experience, it is equally important for

brands websites to be optimized for mobile viewing.

6. Two-way social media engagement

Brands are discovering that just opening a Facebook page or Twitter account is

not enough to meet the customer’s expectations. Really using the power of social

media involves listening to what customers have to say and to engage with them.

The modern consumer doesn’t just want to shop, they also want to be heard and

responded to.

This recent survey of more than 15000 shoppers in 15 different countries only emphasis and reconfirms what we have earlier mentioned as the important points that a

brand must keep in mind while they are in the process of creating an omni-channel experience.

Online shoppers are evenly split in their preference for mobile browsers versus appsHow often do you use either app or mobile browser on your mobile/smartphone for shopping?

Digitally empowered consumers embracing social media to connect with brandsWhich of the following have you done using social media?

Base: 6’506Source: PwC Global Total Retail Survey 2013

Base: 15’080Source: PwC Global Total Retail Survey 2013

10% 15% 20% 25% 30%5% 0%

Daily16%

17%

Weekly 21%22%

Monthly23%

24%

A few times a year 21%21%

Once a year 7%7%

Never 12%8%

App Yes Mobile browser No

ȪǍࡡǍǓFollowed favorite brands

or reteilers

41%

59% ȦǍމǍǓInteracted with favorite brands

48%

52% ȧǍǍǓProvided positive or negative

comments about

experience

45%

55%

țǍҤǍǓDiscovered brands

42%

58% ȪǍࡡǍǓResearcheda brand

41%

59% ȣǍ؈ǍǓBought products

52%

48%

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1. Omni-Experience With The MerchandisingCustomer look for great experiences to connect with brands at many different

points. But at the end of the day, everything boils down to the ‘product’. We live in

a world where the number of products available at our disposal is more than ever

before. In this extremely crowded market place it is difficult for a single product to

stand out. Even a great product cannot sell itself if none knows about it.

A customer might be impressed with the window display or the in-store experience

but if they do not get the right information about the product, they might not make

the purchase. It is key to get all the information about the product across to the

customer for them to understand the product better and for them to trust the brand

more. This is specially important for premium luxury brands as knowing the story

behind a product make the customer feel more secure about his choice. Digital

technology has forever revolutionized the way customers purchase and it has also

made it easier for brands to get product information across.

In a recent survey by Capgemini, it was found of 56% of respondents said they

were likely to spend more money at a physical store if they had used digital

channels to research the merchandise prior to purchase. And 55% said they were

more likely to spend more money with a particular retailer if the merchandise

were available anytime via any channel. Digital shoppers are focussed on core

information about the product like it’s price, functionality and delivery information

and these digital savvy shoppers expect it as a mandatory norm for brands to get

these information right across all the channels. It is only after these needs are met

by the the brand are the customers open to engage with the brand.

The brand’s online channels drives commerce to the offline channels and vice

versa as customers sometime research the product on either one of the channels

and purchase in another depending on their convenience. It is therefore important

for brands to provide all necessary information about the products across all its

channels and stay coherent. These are some of the Omni-Touchpoints where this is

possible.

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1.1. Omni-Touchpoint: Merchandising and Social Media

Description of the situation: What the potential customer can do at this

Omni-Touchpoint:

• Follow for updates of the latest product launches

• Check for special discount codes for social media followers/fans

• Check reviews of other customers about specific products

• Check opinions and popularity of specific products among social media

influencers/bloggers

• Share your personal experience after trying on specific products at the

store

• Create a wish list of the products you like and share on your social

media page

Recent studies show beyond doubt the positive influence that social media has

on the sales of products.

As you can see from the graphs, Pinterest is the social network that’s most

likely to drive spontaneous purchasing whereas Twitter and Facebook users are

likely to make social media-related purchases of products they were already

considering.

Also, 2 out of 5 social media users purchased an item after sharing or favoriting

it on Twitter, Facebook or Pinterest. Out of these users who purchased, almost

90% of them purchased the products in-store. These statistics by itself prove

why it is important for brands to promote their merchandise on social media and

connect it to their brick and mortar store.

Purchase IntentWhen you shared or favorite this item, were you already thinking or purchasing it?

Social Purchasing By NetworkHave you ever purchased an item - either in-store or online - after you shared or favorited it?

Period: April - June 2013Source: from Social to Sale, VIsion Critical, 2013

Period: April - June 2013Source: from Social to Sale, VIsion Critical, 2013

PinterestPurchasers

FacebookPurchasers

TwitterPurchasers

YES,I thought about

purchasing this product and was researching

the purchase

YES,I was vaguily thinking about purchasing this

product

NO,I had not thought about purchasing this product

22% 22% 21%

49%60% 70%

9%

29%16%

On each platform, some purchasers have made both online and offline purchases

ȋǍʰǍᏫǍTotal29%

Pinterest

22%Online

21%In-Store

ȈǍٳǍˉǍᔶTotal22%

Twitter

18%Online

17%In-Store

ȋǍʕǍᐼǍྑTotal38%

Facebook

29%Online

30%In-Store

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Customers are also increasingly impatient to wait for 6 months to see the new merchandise in the store. What was earlier just two collections a year, has increased

over the past few years to four collections with the addition of Prefall and Resort collections and something a couture collection as well. On the other hand, fast

fashion brands like Zara and Topshop add new items to their store almost every week.

It is nearly impossible for brands to have elaborate marketing campaigns and photoshoots when new products are released at such a rapid pace. As a solution for

this problem, most brands have resorted to social media marketing to announce arrivals of new products and drive traffic to their brick and mortar stores. Shoppers

are now willing to interact with retailers on a number of different social networks in order to find information on deals, products and contests.

Pinterest API for brands

The fastest growing kid on the social media block is

Pinterest. The launch of the Pinterest API in November

2013 shows their intention to help brands perform

better. This application lets third-party sites embed

Pinterest pins, and make it easier to post content

into Pinterest itself. It also helps brands by generating

information about most pinned, most clicked, recently

pinned items. Sales on E-Commerce websites

which originally generated from search on the virtual

scrapbooking site, Pinterest have doubled after its

launch and brands like Target and Topshop have

quickly taken advantage of this with various campaigns

connected with Pinterest.

Interesting to know

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Nordstrom

Not only is Nordstrom leveraging this new feature with a separate section on their website for the the top pinned items in the different categories (Accessories, Clothing

etc.) but they have also taken this a step further and incorporated them in their physical stores. The American upscale fashion retailer created a display of their most

pinned products in the store. The pilot program which was initially launched in 13 Nordstrom stores initially had Pinterest displays in the shoes, handbags and dress

departments.

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C&A

The Brazilian branch of C&A did something similar by integrating Facebook likes into their brick and mortar stores. Every time someone clicked the thumbs up like

button on a particular merchandise on C&A’s Brazilian website, the number would increase on the hanger embedded with a screen in the physical rack of the store. The

campaign which they called FashionLike was a marketing push by the retailer to bring together online group thinking with real world decision making.

Most shoppers these days are unsure of their choices and always wish to have a second opinion. They tend to send pictures to their friends and family to be absolutely

certain that they made the right decision. Campaigns like these help customers make purchasing decisions based on the social popularity of the product.

http://fsh.by/CTh3JQ

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WeChat, Chinese Internet Giant Tencent’s social mobile app is one of the fastest growing in the world. What started of as instant messaging app similar to

WhatsApp has today become a tool used by brands for communication because of its various other features that are similar to social media platforms like Facebook

(Newsfeed), Twitter (Small content), Skype (Video calling) and Foursquare (Location based content). As with other social media platforms, most brands in the

Chinese market have used WeChat to create a branded space for them and share information. Some of them are even using this platform to provide personalized

customer service and support.

Nike

The Nike + Run Club account on WeChat primarily aims at giving running tips

and running plans to its followers. But it also an option to help users pick her

running shoes. The account has information about all the running shoes that Nike

sells. By filling in a Questionnaire, users who are not sure about which pair of

shoes to buy can get product recommendations.

Uniqlo

Uniqlo has a special WeChat account just for its jeans which is called U Jeans.

This account helps customer find the perfect pair of jean. By inputing various

details like age, height and weight, fabric and fit of their choice, customers get a

range of color options available. They can then choose the store where they wish

to pick up and pay for the jean.

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Volga Verdi

Understanding how influential people can be on social media, California based

fashion brand Volga Verdi launched a program called ‘The Exchange’ that gave

one’s social media influence a dollar value. Every customer was offered a discount

in exchange for them promoting the brand and it’s products on their social media

pages. By posting a certain message on your status or liking the page, you could

get upto 50% off on each Volga Verdi T-Shirt. The more connections (followers

or friends) you have, the bigger the exposure for the company and the bigger

discount you will get.

Alexander McQueen

At the Alexander McQueen flagship store in London, gesture-controlled mirrors on

the first and lower ground floors allows customers to browse the collection and

photograph themselves in looks which they can then share with friends via social

media channels or email.

Trends and opportunities of what can be

Zappos

Online retailer Zappos decided to leverage on the the popularity of #ootd posts on

Instagram and came up with a strategy to make customers purchase products on

their website. The company’s pilot project which is called “NEXT OOTD” gives their

Instagram followers personalised shopping recommendation every time someone

posts a photo and tags it #nextootd. This recommendation is based on the follower’s

Instagram posts.

Fashion brands could also use this strategy of personal shopping via Social Media.

Every time a customer tags the brand and any of its products on a social media

platform, a team of personalized stylists could analyze the style of the customer from

his other posts and recommend similar products offered by the brand.

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LoveList

A lot has been said about how brands are leveraging on Pinterest to drive online sales. Pinterest lets you ‘pin’ your favorite brands and their products when you

find them online so they are easily accessible and organized whenever you want them. But how do brands connect their offline physical stores to this social

media network ? This has always been a limitation and this hurdle has been crossed with the launch of an app called, LoveList. This app gives you the ability to

scan real-life products directly to your Pinterest

boards using the item’s barcode.

If you are in a store of a brand and like their

product, there are various options and brand

apps which could help you save the products

on their specific wishlist. But customers tend

to forget what product they saw in which store.

LoveList gives you the option to simply scan the

product and pin it to the board of your choice

on Pinterest. This app is currently connected

to all barcodes on Amazon’s database but with

the inclusion of a particular brand’s database,

the pins would lead to products on the brand’s

webpage from which customers could buy

online.

Brands could further improvise this with an

option to save and share the products on the

social media accounts of the customer like Facebook and Instagram, not just Pinterest.

http://fsh.by/W2-7Mw

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1.2. Omni-Touchpoint: Merchandising and Brand’s Website

Description of the situation: What the potential customer can do at this

Omni-Touchpoint:

• Find more information (material, country of manufacture etc.,) about

each specific product.

• Get to know the story behind each specific product

• Get information about the other variations of a specific product.

• Check for product availability in other stores to purchase later

According to a recent survey on ForSee 2013, out of the 70 percent of shoppers

who used a mobile phone while in a retail store during the holidays, 62 percent

accessed that store’s website or app. The brand’s website is expected to be the

universe of information about the brand, its history, its products and campaigns

- basically everything related to the brand. Therefore it is only obvious that

shoppers tend to go to the brand’s website while in the store to get any sort

of additional information and there is a need for the store to offer an effortless

connection to its website.

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Izzue

Hong Kong based brand Izzue which is immensely popular amongst the youth in China included the address of their website in most parts of their merchandise.

This brand which belongs to the I.T fashion conglomerate has included their website URL in their brand label, price tags, care labels and even the shopping bags.

Although the brand still does not sell online, the website contains all other information regarding its products and store locations. This way even after a customer

makes the purchase and leaves the store with the merchandise, they can still easily find the web address from the merchandise itself.

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Zara, Massimo Dutti

Zara offers the same Omni-Experience to all its customer irrespective of the country as the tags on the products in China and Italy have both the website url

and the QR code. Scanning the QR code in Shanghai leads you to the Chinese version of the website whereas in Milan, it leads you to the landing page of the

International site from which you can select the country and language of your choice. Massimo Dutti which belongs to the same group Inditex also has the website

link on all its tags except the ones for accessories. Massimo Dutti also has a mobile version of the website which is very necessary these days as most customers

access the brands websites on their smartphones.

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Geox

Geox, manufacturer of breathable shoes and fabrics has not just the URL to

their website but also icons of all the social media networks they are active on.

They also have a QR code on the booklet tag with details about the special

‘respira’ fabric. Scanning this QR code leads you to the home page of the

website. While promoting newly launched products, it would be smarter for

brands to link their QR code with the exact page of newly launched products

as customers might lose time navigating through the website to reach the

specific page and might sometimes not find what they are looking for.

John Lewis

Most retailers offer free wifi in their stores but it is not always easy to

access the website easily as in the case of the examples in the previous

publication (Eg: Sephora Store in Shanghai offers free wifi but it is difficult

to navigate through the website as it is not mobile compatible). As soon a

person connects to the free wifi at the store, brands can make sure that

their webpage opens immediately with options that offers assistance during

their time at the store.

Retailers like John

Lewis have embraced

online technology

in-store by providing

website access

points throughout the

store and therefore

welcoming omni-

channel commerce.

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Burberry

Burberry has always stayed ahead of the pack by being the most

digitally innovative fashion brand. After 2 years of renovations,

Burberry unveiled its digitally integrated 27000 square foot flagship

store in Regent Street, London. The main aim at creating this store

was to bring the digital experience of the website burberry.com into

a physical space. The store is wrapped in full-length screens which

changes between displaying content displays to live streaming

fashion shows and sometimes into mirrors. Burberry has also

integrated this technology into their merchandise. Some of them

come attached with a chip similar to an RFID which displays video

content related to the product when it come close to the mirrors

in the dressing room. Customers can also view this content by

scanning the tag on their phone while outside the store.

In Burberry’s first stand-alone beauty store in Covent Garden,

traditional tills have been swapped with iPads and iPhones for

payments. In another attempt to merge digital experiences with

the physical world, the digital runway nail bar allows customers

to virtually try-on nail colors. The website offers an option for

customers to pre-book styling and manicure appointments at the

burberry beauty box store.

http://fsh.by/IjML3A

http://fsh.by/h8m7FQ

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Another reason for brand’s to connect their website with the store is the size of their product range. With new collections in-store so often, most brands have

product ranges so large that sometimes even the flagship store is not big enough to accommodate it all. It therefore becomes very necessary for brands to

keep their customers aware of their complete product range even if not in the store and the brand’s website is the perfect channel to let this happen.

Adidas

This problem of not having enough space to exhibit their entire product range

was sensed by Adidas, which lead to them partner with Intel to create a virtual

footwear wall, Adiverse. Adidas has been using digital signage in its stores for

years to promote products and show product videos but this 3D interactive

wall virtual wall is a step ahead. It is a natural extension of their physical

product range as it showcases the virtual product range, it allows customers

to interact with the entire footwear line available on their website, not just

what was on the shelves. By sensing the gender of the customer, the virtual

wall makes product recommendations and provides all information about the

product. Products chosen on the virtual wall can be purchased from the store

just like the products in their physical product range. This way, an adidas store

in a small town can seem like a flagship store as it would have all merchandise

under their roof.

http://fsh.by/97FJFQ

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Nike

Adidas bigger competitor Nike did something similar in their new concept

store called Fuel Station. In this digitally enabled retail space, Nike uses

technology to allow customers to interact with the space in multiple ways.

In between all these interactive spaces, you would see just a handful of

shoes in the shelves but to counteract this, the walls come fitted with a half a

dozen iPads which can be used as an interactive catalogue connected to the

website with access to the entire range of products and place orders.

http://fsh.by/3-X3Nw

Primark

Irish retailer Primark who does not sell online (Used to sell on asos.com

earlier but not anymore ) uses its website to display its product catalogue

with “Find my nearest Primark” tab. Brands like these which do not have an

E-Commerce platform yet can leverage on the website by displaying product

inventory and availability in the store closest to the browser.

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While fast fashion and sports brands are more experimental to implement extremely innovative ideas and make drastic changes into their stores, this is not

the same in the case of Luxury Brands. Some luxury brands have a belief that being extremely open could make their brand lose their sense of exclusivity and

hence do not foray too deep into this field. They do however use their website as a means to direct traffic into their real world stores with the use of the use of

the ‘store-locator’ function on the website.

Moynat

One of France’s oldest trunk makers, Moynat displays on their webpage its

products with a descriptive information and material and size details. There is

no option to purchase them directly from the website whereas clicking on the

‘boutique’ tab leads to a page with detailed address of each of its stores.

Cartier

Jeweler Cartier has been exploiting this feature by going as far putting the

“find a Cartier Boutique” tab on its product pages and putting the user on a

path to purchase the product in the brick and mortar store.

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Rolex

Swiss Watchmaker Rolex’s website offers to help customers select the perfect

Rolex for them amongst their large selection of watches. After the selection

process, the watch is added to the wish list. The website then offers to help

you find the closest Rolex retailer.

Trends and opportunities of what can be

Perch Interactive

Perch Interactive is a company that offers turnkey solutions to retailers

to integrate digital into their store. With it’s wall-mounted projection unit,

Perch lights up a table which acts as a display unit. Information regarding

the products are displayed on this table and by moving the product

around, users can interact with the table to receive more information about

the product. Perch provides a dynamic and hands-on interactive display

that creates a playful and engaging way for shoppers to pick up and

discover each product before they make the decision to buy it.

An opportunity that lies for brands here is to connect their official website

to the interactive table top display. Customers could be allowed to place

products on these tables that would recognise them and connect them to the

exact page of the product on the website. They would then be able to get all

information regarding the product directly from the website. This could be a

future trend for the omni-touchpoint of brand’s website and merchandise.

http://fsh.by/4VTShA

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1.3. Omni-Touchpoint: Merchandising and Brand’s E-Commerce/M-Commerce

Description of the situation: What the potential customer can do at this

Omni-Touchpoint:

• Products can be customized online and collected at the store

• Items in the E-Commerce wish list can be selected and picked up at

the physical store

• Products in the store can be scanned and added to the e-commerce

basket to be purchased later

• Access online shopping website from the store and purchase products

that are not in the store at the moment

Physical retailing is pricey for companies. Sky-rocketing real-estate prices eat up

a big chunk of operating costs. This made brands focus on channels where they

could sell their products online. But after years of boosting up their e-commerce

engines, brands and retailers are now waking up to omni-channel retailing,

recognizing that the core of their business is still their existing fleet of physical

stores. The vision of a brand being digital cannot be realised unless there are

changes offline and now brands are refocussing their strategies to merge their

physical stores with their e-commerce stores and therefore drive sales to both

the channels.

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Macy’s

More than 50% of the brands that sell online are trying to bridge the gap

between their virtual and physical store by having the option for customers

to return or exchange their products at the brick and mortar store. But some

brands out there have more advance options. American departmental store

Macy’s has been a forerunner in this case. Customers have the option to

check the availability of the products in the store through their website. They

also offer cash on delivery and in-store pick up options for products ordered

online. They have also invested heavily in the option for them to ship online

orders directly from their physical stores and not their centralized warehouses.

This is possible with a strong inventory control program.

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Metersbonwe, Me & City

Local fast fashion brands like Meteresbonwe and Me & City that have been

developing rapidly in China over the recent years. The websites of these

brands contain general product information but do not support e-commerce.

They however sell online through the common e-commerce channel banggo.

com. The shopping bags & tags of these brands have both the URL of the

brand’s own website as well as the URL of Banggo along with a QR code.

Urban Outfitters

Urban Outfitters apart from enabling shoppers to see if a specific item is

in stock at a retail location from their websites’ product pages also tries to

connect mobile shoppers to its brick and mortar stores with the “now playing

in-store” feature on its mobile store locator page.

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An interesting technique for brands to improve their QR code is to use

‘Visualead’.

As we have seen from the previous examples, most brands include the QR

code either in their shopping bag or their tags or labels but these QR codes

are just a small black square which has no visual connection the the brand

identity. Visualead is a company that helps incorporate images into the

QR code. Brands can use this to combine their logo with the QR code to

generate a QR code which almost looks like their brand logo.

Interesting to know

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John Lewis, Argos

Nowadays there is nothing as a fully online or a fully physical

store as the lines between both are fast blurring. British

retailer John Lewis who was one of the first to introduce the

‘click and collect’ service way back in 2008 also encourages

online shopping in-stores. Another UK catalogue retailer

Argos has launched a fast track service that allows

customers who have ordered products online to collect

them from the store within sixty seconds of arriving through

its exclusive ‘pay and collect’ points in the store.

Sephora

Sephora has also begun displaying real-time brick and mortar

inventory information on its e-commerce “pre shopping”

product page. Customer can go online on Sephora’s

e-commerce page and browse through products. They

can then select their closest store and check the product

availability in the store instantly. This service is specially useful

in the case of a beauty and cosmetics brands as customers

would wish to see how the product looks on their skin tone

before they buy it but it saves them the time involved in

browsing through the huge selection of products at the store

and thus prepares them before their trip to the store. They can

also book appointments for consultations with make up artists

at the store prior to their visit.

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New Balance, Sport Chek

New Balance has been manufacturing custom made shoes for

some time now. Customers can design their own shoe from scratch

on the new balance website and have it delivered in less than 10

days. They have now taken it a step further by joining forces with

footwear retailer, Foot Locker. The customizable kiosks available in

the foot locker store in Times Square New York gives the customer

the opportunity to design their own shoe in the physical store and

then deliver it to you within 10 days.

Canadian sports retailer, Sport Chek has come up with something

similar in their recently launched digital concept store. This 12000

square foot store is equipped with digital technology that enables

more interaction between the store and its customers. The company

partnered with Samsung to install around 140 digital screens

throughout the store which includes small digital tiles built into display tables and

many other digital displays to showcase videos and images. The store also has

Adiverse, the virtual wall by Adidas which was discussed earlier and a ‘build your

own sneaker’ kiosk by Reebok.

One of the most important factors to keep in mind while creating an Omni-Channel experience between the online and offline sales channels of merchandise is

uniformity. It is very important for prices to be the same in the e-commerce channels and the physical store. In order to do this, it is very important for brands to

directly maintain their official online website as well as their physical stores.

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Trends and opportunities of what can be

ASAP54 app

A breakthrough in merging E-Commerce and Merchandising is a new app

called ASAP54. This image

recognition app that can

match photos of clothing and

accessories to identical or

similar products stored in its

database. So, the next time a

customer spots someone on

the street wearing something

they like, they would just

need to click a picture of

the product. The app then

allows shoppers to purchase

products directly from the

website of over 150 retailers

in its database which includes

Net-a-Porter, Barneys, J.

Crew, Neiman Marcus, Topshop, and Forever 21.

Brands can partner with this app to include their E-Commerce products

into their database. This way consumers who are showrooming can be

directed to their exact retailer without mixing up the different products they

see.

http://fsh.by/GtBypg

Parco

Another interesting innovation is by Japanese Retailer Parco. Every time a

hanger is removed from the rack, the digital screen above the rack would

project a video related to the product. This idea can be further improved

and merged with the E-Commerce by implementing a way in which every

time a hanger is removed from the rack, the screen would project similar

products offered by the brand but not currently stocked in the store.

Customers could then be allowed to access the products in the E-store

throughout the digital touch screens.

http://fsh.by/L3h4cw

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1.4. Omni-Touchpoint: Merchandising and Brand’s App

Description of the situation: What the potential customer can do at this

Omni-Touchpoint:

• Browse through product information easily with help of brand’s app

• Book a sales assistance before arriving at the store

• Get personalized recommendations based on your previous shopping

history

• Receive notification and information about the product when nearby

Recent studies show that consumers spend a significantly high amount of

time interacting with mobile apps than through other channels and less than

fifty percent of shoppers say they are less likely to compare products on other

channels when using a mobile app. This makes it increasingly important for brand

marketers to focus on apps. The mobile app is becoming the new website and

just as websites evolved from being a tool for digital marketing to becoming an

interactive storefront, the second generation of mobile apps is doing much much

more. This is mostly because brands have complete freedom as to what they

wish to do with the app.

Some brands use their app to share the brand history and campaigns with their

customers while some use it as their online store front. Here are some interesting

examples of how brands have used their app to give customers a whole new

experience with their merchandise.

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Bloomingdale

Bloomingdale launched it’s official app called Bloomingdale’s @ 59th and Lex

for it’s flagship store. The app included interactive floor maps, information

about events and must have picks from the fashion office of Bloomingdale.

Whereas Bloomingdale’s Big Brown Bag app apart from allowing customer

to search, browse and buy products straight from your phone also comes

with an in-store option. This option in-store scanner allows customers to

scan products while in the store and check prices, additional product details

(including color and sizes available in the store) and read customer reviews.

This helps customers stay connected with the brand rather than fraying away

to websites of other retailers while looking for additional details about the

product.

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Tiffany and Co.

The Tiffany and Co Engagement Ring Finder app brings the smooth and uncluttered shopping experience of the Jeweler’s website to smartphones. Users can

browse rings by shape, setting, metal, design and six different carat sizes Rings are displayed true-to-size and from multiple angles with zoom functionality.

Another interesting feature of this app is the ‘Ring Sizer’ which helps the customer find their exact ring size by placing one of their rings on the screen. Potential

customers can also see how it looks on their hand by placing their hand over the screen and photos of this can be saved and shared to get others opinions before

finalising on an engagement ring.

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Gucci

Gucci’s recent app has various features which connects merchandise to the brand. It allows you to scan product images from a Gucci advertisement in a

magazine and these items are directly added to the wishlist in the app. The app also has a store guide to all its stores worldwide. Similar to the Neiman Marcus

app, sales associates are notified of customer’s arrival at the store.

They receive all details about the customer from their past purchases

to shopping preferences to how they look for them to be identified.

The brand thereby aims to provide a high level of personalized

service for its luxury consumers.

By clicking on the touch videos in the store, items in the look of the

video appear on the screen along with a QR code. By scanning the

QR code, the video is linked with the customer’s iPhone. Now all the

items that are selected in the video and dragged into the phone are

added to the customer’s wish list on the app.

http://fsh.by/LRsK6A

When the ‘discover’ option on the app is turned on, customers

would get alerts with information about nearby products. This is

possible with the use of bluetooth technology.

Coffee giant Starbucks generates 4 million a week by mobile payments through its app every week and this trend of payments through apps is fast

penetrating into the fashion sector as well. With the growth of mobile POS expected to be more than 95% worldwide in 2014, another very important way

in which brands can use apps is for mobile payments. Brands like burberry are opening stores with no cash counters and encouraging mobile payments.

Payments through apps will be the next progressive step in this field. By inputting the credit card or bank details of the customer in his app, brands can make

payments in-stores extremely easy and safe as well.

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Trends and opportunities of what can be

Phillips Intelligent In-Store LED Lighting

Ever walked into a departmental store and wasted time just trying to

find the product you were looking for? Phillips is piloting a new intelligent

lighting system that would make shopping much easier and save you a lot

of time. This technology which has been pioneered for use in supermarkets

uses a light based communication system to create a positioning grid for

your smartphone, telling you which route you would have to take to get to

your products.

This will give customers a greater control of their shopping experience.

Philips is already testing its smart illumination with a handful of

supermarkets. In the fashion sector, the mega sized stores of mass market

brands or sports brands could also make use of this innovative technology.

It is known that most customers check out products on the brand’s

website or on the e-commerce page before they enter the store. With the

help of this app, brands can use LED lighting to show where the products

that the customers browsed through on their website is and directly lead

them to it in the physical store. Along the way to reach the product, the

app can also show customers offers on nearby products and suggest

products.

Customers can therefore have a more enjoyable, extremely efficient and

less tiresome shopping experience with the help of this technology.

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IBM Watson powered mobile apps

With the growth of IBM’s Watson powered mobile apps, it is now easier than ever for brands to bring their online experiences into their brick and mortar store.

This supercomputer enabled app has cognitive computing abilities that allows the app to respond to contact and learn and adapt responses as new information

comes in. These apps also have a natural language processing and advanced data analysis that can assess a customer’s relationship with the brand and place

personalized context around responses to questions they ask.

Several apps powered by IBM’s Watson are already in use in the healthcare industry and many more under development. One such app was developed

for Memorial Sloan Kettering Cancer Center in New York. The app which is still under limited use advises doctors on the expected outcomes of the various

treatment plans and procedures taking into consideration the information about the patient.

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This is an excerpt from

“Omni-Channel Retailing:The Future Trend in Fashion

and Luxury Industry - Part 2/2”

(http://fashionbi.com/publication/3)

Find the full version of this Publication on the website

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