FAST FASHION RETAIL IN CHINA HOW FAST FASHION RETAIL STORES CAN ADAPT TO THE ONGOING CHANGES IN CHINA ?

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FAST FASHION DISRUPTION CONTEXT

GUEST SPEAKER INTERVENTION

BREAKFAST SOCIALIZATION

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1. RESHAPING OFFLINE NETWORK BUSINESS MODEL 2. INTEGRATING DIGITAL TO YOUR CONSUMER JOURNEY 3. USING DATA TO IMPROVE OFFLINE EXPERIENCE 4. LEVERAGING COMMUNITY

STEPHANE TORCK : THE FUTURE OF FAST FASHION BRANDS

CO-IDENTIFY THE KEY CHALLENGES PRIORITIZE SET OF SOLUTIONS

DISCUSSION

AGENDA

3

OUR OFFER

4

5

FAST FASHION DISRUPTION CONTEXT

SHOW ROOMING &

BUSINESS MODEL

DIGITAL INTEGRATION &

CONSUMER JOURNEY

DATA &

CONSUMER EXPERIENCE

COMMUNITIES &

UBERISATION

HOW CAN OFFLINE BUSINESS MODEL BE RESHAPED ?

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BETTER PRICE NO NEED TO TRY, TOUCH, FEEL

DELIVERY CONVENIENCE

CHALLENGES

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•  Which offline business model can be SUSTAINABLE in a near future ?

•  To which extent showroom can CREATE VALUE ?

•  What to propose to consumer in-store as an EXTENSION OF THE SERVICES ?

ANYWHERE ANYTIME

COMPARABILITY WOM

CHINA

86% 68%

GLOBAL

SHOWROOMING IS THE NEW NORM

CHINESE CONSUMER SEE MORE BENEFITS FROM ONLINE

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NEW TOUCHPOINTS ARE SEEING LIGHTS TO ADAPT OR GO OVER THE SHOWROOMING TREND

MAISON STANDARD & SEZANNE

GENERATING SALES THANKS TO POP-UP STORES OR UNEXPECTED LOCATIONS

LEROY MERLIN RETHINKING TRADITIONAL BUSINESS MODEL

MAISON STANDARD Having one showroom stores & pop-

up stores appearing randomly

SEZANNE Settling stores in unexpected

places to generate traffics

TechShop is the newly touch point of Leroy Merlin in which consumers can directly use the product sold by the retailer to craft their product along with experts

1.  Subscribe for one year to Leroy Merlin Tech Shop 2.  Craft your product using Leroy Merlin tools 3.  Benefit from experts’ advise 4.  Bring your crafted object back home 5.  Possibility to buy the tools used once you have tested and used them

HOW CAN OFFLINE BUSINESS MODEL BE RESHAPED ?

Villages were designed in which you can buy product from decathlon shops and partner shops but also experience the products and benefit from sport lessons given by professional decathlon coaches

DECATHLON VILLAGE CREATING A NEW TO CONSUME SPORT GOODS

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HOW ARE CHINESE USING DIGITAL IN-STORE ?

24%

11%

CHECK-IN AT THE STORE VIA SOCIAL

MEDIA

42%

25%

26%

12%

23%

13%

GLOBAL

HOW TO INTEGRATE DIGITAL SEAMLESSLY IN THE CONSUMER JOURNEY ?

CHALLENGES

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•  How digital can be integrated to ANSWER CONSUMER NEED ?

•  How to think CONSUMER CENTRIC & CONSUMER JOURNEY ?

•  How to catch up with consumer on CROSS CHANNEL?

CHINA

CHINA

GLOBAL USED A

COUPON

RECEIVED A PROXIMITY

OFFER

SCAN IN-STORE QR

CODE

CHINA

CHINA

GLOBAL

GLOBAL

RESEARCH / DECISION SHOWROOM, WOM, ONLINE AND MOBILE RESEARCH, SOCIAL MEDIA

BUYING ONLINE PURCHASE

E-COMMERCE, M-COMMERCE

ADVOCACY SOCIAL MEDIA, WOM, WEBSITES

AFTER PURCHASE SOCIAL MEDIA, CALL CENTER, SHOPS

DELIVERY CONVENIENT & FAST

HOW TO INTEGRATE DIGITAL SEAMLESSLY IN THE CONSUMER JOURNEY ?

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•  Request more items to try

•  Product availability in store

• Get mix and match suggestion

METERSBONWE

ZARA A CONNECTED FITTING ROOM

ADIDAS

BEING A 24h OPENED SHOP THANKS TO PHYGITAL

1.  iPad to show you unavailable items 2.  Scan the clothes QR code to get all the information 3.  Scan the clothes QR code to get mix and match suggestion 4.  Pay online and be delivered

A touchable screen on windows to shop any time 1.  Explore products 2.  Scan a QR code displayed on a

digital shopping bag 3.  Drag and drop the product you

want in it 4.  Buy them later on your phone or

share them

SWEDISH SUPERMARKET A SHOP WITHOUT HAVING A SINGLE EMPLOYEE

1. Download an app which allows you to unlock the supermarket door

2. Scan your product 3. Pay via your mobile

HOW TO INTEGRATE DIGITAL SEAMLESSLY IN THE CONSUMER JOURNEY ?

USING DATA TO GIVE YOUR CONSUMERS PERSONALIZED EXPERIENCES

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58%

30%

28%

CHALLENGES

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•  How to aggregate DATA OFFLINE ?

•  How to develop the right ALGORITHMS ?

•  Get all the MAXIMAL POTENTIAL from the DATA

CHINESE CONSUMERS ARE MORE WILLING TO SHARE THEIR PRIVATE INFORMATION WHEN THEY COULD GET BENEFIT IN RETURN

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NORDSTROM

THIS RETAILER HAS SPENT MORE THAN 30% OF ITS BUDGET ON TECHNOLOGIES TO TRACK CONSUMERS ONLINE AND MOST OF ALL OFFLINE THANKS TO SENSOR, WIFI DEVICES

TRUE RELIGION ENHANCING RELATIONS BETWEEN CONSUMERS AND EMPLOYEES

Lately, True Religion equipped all its employees with an apple watch in Los Angeles & New York. This device allows employees to have information on consumers as soon as the latter walk into the store

USING DATA TO GIVE YOUR CONSUMERS PERSONALIZED EXPERIENCES

MOUMILK

AN ONLINE BRAND CREATED FOLLOWING ITS CONSUMER NEEDS

Mengniu used the big data from Alibaba e-commerce to design a brand new range of milk product based on its consumer needs :

•  Origin •  Fat •  Size •  Price •  Perception

COMMUNITIES, A GROWING OPPORTUNITY

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FOLLOW FAVORITE

BRANDS ONLINE

VIEW VIDEOS ABOUT THE

BRANDS

MOST OF CHINESE ARE WILLING TO INTERACT WITH A BRAND AND ITS CONSUMERS ON SOCIAL MEDIA

CHALLENGES

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•  How to better UNDERSTAND COMMUNITIES ?

•  How to CATCH /INTERACT with

communities ?

41%

21%

CHINA

USA

23% GLOBAL

23%

21%

CHINA

USA

21% GLOBAL

44%

34%

CHINA

USA

34% GLOBAL

COMMENTED ON PAST

EXPERIENCES

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NORTHFACE IN MILAN AN EXPLORER COMMUNITY HUB FOCUSED DIGITAL INTERACTIONS

LE PUR

A BRAND CO-CREATED BY ITS CUSTOMER

YOHO FROM A MAGAZINE TO A COMMUNITY HUB

1.  A video was launched on how they make yogurt to engage some customer and to invite them to a test session

2.  Tastes were chosen according to customers preferences

3.  Book your yogurt on wechat and pick it up at the store or be delivered

Magazine for young urban, this company launched a e-commerce website on which you can : •  Buy clothes •  Follow opinion leader •  Read articles related to

the community

Never Stop Exploring experience “Base camp” for weekend warriors and hard-core explorers to plan their next adventure by

•  Humanizing the hard-core athlete •  creating community boards •  integrating localized design and hero product

placement

COMMUNITIES, A GROWING OPPORTUNITY

DISCUSSION

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UBERISATION OF THE ECONOMY THROUGH COMMUNITIES & CONSUMERS

A DUAL FUTURE FOR FASHION RETAIL

•  PRODUCT INNOVATION •  PRODUCT TREND PREDICTABILITY •  NO BRAND INVESTMENT (MKT,CRM) •  VALUE PROPOSITION •  FLEXIBILITY •  CUSTOMISATION / PERSONALISATION

2. BRAND MINDED STRONG BRAND EQUITY AND ANSWERING CUSTOMER NEEDS

1. PRODUCT MINDED COMPANIES WITH A FOCUS ON PRODUCT

PREDICTABILITY FUNCTIONALITY ALL MOMENTS OF LIFE PRICES

BECOMING A PLATFORM FOR A COMMUNITY •  360C SERVICES UNDER THE SAME ROOF •  ANSWER THE FULL SCOPE OF NEEDS •  AGGREGATE BRANDS & OFFERS

FASHION MARKETPLACE MINIMALISM ATHLETES

FASHION PLAYERS

MORGAN BONNARD morgan@equancy.com.cn +86 186 1633 2703

Room 9208, Building 9 25 Jian Guo Zhong Road Shanghai 200025, China 建国中路25号9号楼9208室 +86 21 6137 9211

For more information, please contact:

THANK YOU

MORGAN BONNARD morgan@equancy.com.cn +86 186 1633 2703

Room 9208, Building 9 25 Jian Guo Zhong Road Shanghai 200025, China 建国中路25号9号楼9208室 +86 21 6137 9211

For more information, please contact:

THANK YOU

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