As we find ourselves navigating a transformed retail landscape, retailers have been forced to pay microscopic attention to their online capabilities and digital acceleration.
COVID-19, lockdown restrictions, store closures and new social distancing measures in-store have resulted in a much bigger sector of consumers who are more comfortable shopping online than they were before, borne out of necessity and convenience rather than preference. …
“We are coming back to a slightly different world. Sitting on stock, fewer customers, the need to convert our inventory more efficiently and improve bottom line margins.” Stuart Rose, Chairman, Dressipi
At Dressipi we are holding a new series of webinars looking at how data and technology can help to solve some of fashion retailers’ biggest problems. Our first webinar focused on the issue of overstocked products. Stuart highlighted just how different the world of retail is as we come out of lockdown and stressed that it is now essential for retailers to optimise processes.
Due to store closures as a result of COVID-19, the overstocked product issue is particularly pertinent. However, regardless of COVID, every season’s requirement to shift clearance stock eats into retailers’ cash/profit. We estimate that clearance stock typically costs the UK fashion retailers £2.2bn a year but likely to cost £4.5bn in 2020. This is a lot of cash for an industry to lose! …
A new type of pop-up shop opened its doors this November with innovation at its core. Reported in Vogue Business, the world’s first digital clothing store allowed “visitors to try on — but not purchase — digital garments in exchange for an unwanted item of clothing.”
Humans ‘digital tailors’ lead guests “into pods equipped with a camera, projector and a “magic mirror” to sample looks. While no physical versions are available for purchase, shoppers can take home the digital images and one photo print-out of them in the garment of their choice” (Vogue Business).
Karinna Nobbs, a University Lecturer & Futurist did not design Hot Second for a commercial endeavor but to “test how consumers react to digital clothes”. It is argued in Vogue Business that digital clothing is a powerful and more sustainable alternative to fast fashion as it offers newness and diversity for social media feeds without the need to create physical garments. Christopher Raeburn, Designer, Raeburn agrees saying, “For us, it’s not about commercial opportunities as such. Our interest lies more with disrupting and challenging the industry as we know it, and digital clothing certainly has promise for sustainability reasons. I’d like to think that digital fashion will help address production issues, but also aid in marketing a physical collection more effectively and responsibly.” …
Research published by The Ellen MacArthur Foundation, reported in Fashion United, stated that “it is estimated that more than $500bn of value is lost every year due to clothing not being utilised or recycled effectively, with some garments in the US discarded after just seven to 10 wears.” This is why the importance of resale is getting more and more apparent and there are many retailers this October who have endorsed the concept:
Reported in Fashion United, “Burberry is joining forces with The RealReal to promote a sustainable future for fashion”.
The RealReal is a luxury marketplace designed to encourage customers to extend the life cycle of luxury goods, through resale. They do this by offering customers an exclusive Burberry personal shopping experience if they consign Burberry pieces to them. …
The pace of transformation in the fashion industry has been accelerating over the last few decades. After the successes of Amazon selling books and electronics online, the first wave of change came in the form of a channel shift where retailers began to sell online as well as offline.
After years of fashion retailers selling successfully via their online stores, the second, current wave is to deliver hyper-curated, hyper-personalised services to customers.
Reported in Bazaar, “Apple and Burberry collaborate on a new messaging system for VIP clients”, which is “designed to connect the associates to the customers in a new and intimate way” (Forbes). David Phelan explained, “It’s an invite-only feature, likely to go to high-value customers, and it means associates can send bespoke item recommendations to the individual customers.”
Through R Message, VIP customers will be able to:
The staff will have access to:
Adidas turned 70 this August and has taken a look back on their very successful years to becoming one of the largest sports companies in the world.
Reported by Adidas Group, it first began when Adolf (“Adi”) Dassler started “experimenting with sports shoes in his mother’s laundry room at the beginning of the 1920s, before then founding the company “Gebrüder Dassler Schuhfabrik” together with his brother in 1924. In 1932 and 1933, he perfected his skills at the renowned technical shoemaking college in Pirmasens.” The company then split, with his brother founding Puma, another world-class sporting company today.
Seven decades since German cobbler Adi Dassler opened his first shoe factory, after gaining worldwide fame in the 1954 football world-cup and now with a turnover of almost €22 billion, Adidas still “aims to help athletes perform better with the aid of new and innovative products.” Retailers that focus on customer experience and not just revenue targets, will achieve better results in the future. …
Research released this July from data agency Pi Datametrics, showed the online fashion retail brands most in demand on Google in the UK. After analysing 972 retailers, the key findings over the last 3 ½ years were as follows:
ASOS is constantly rolling out new technology to help achieve better customer engagement. For their latest announcement, reported in Drapers, ASOS has “launched an augmented reality feature on its app, called Virtual Catwalk”. Partnering with the hologram and AR firm, HoloMe “will give [ASOS] customers a different way to view and experience products before making the decision to buy”.
So how does it work ? Customers can point their smartphone at a flat surface, click the AR button on the product page of 100 new-in ASOS Design products, and models will appear as though they were in front of them, wearing the product. …
Walking into Kensington Olympia faced with a myriad of stalls to explore can feel overwhelming, but dig down into the fantastic speaker line up and you’ll come away with some inspirational nuggets.
What really struck me this year was an entire floor dedicated to digital signage which wasn’t there last year. You could say that this supports the common thread in retail publications the world over that retailers are having to step up their in-store game. However, it’s important not to get lulled in by gadgets, implementing tech for tech’s sake. As Kate Hardcastle said in her talk about Millenials, “Make tech robust and easy to use — consider the benefits it presents to the customer”. …