Successful businesses need creative strategies. EVOLUTION & UPCOMING TRENDS OF FASHION E-COMMERCE IN CHINA MagentoCom event, November 2013
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1 Successful businesses need creative strategies EVOLUTION & UPCOMING TRENDS OF FASHION E-COMMERCE IN CHINA MagentoCom event, November 2013
2 VELVET IS A DIGITAL CONSULTING AGENCY SERVING FASHION, LUXURY AND BEAUTY BRANDS. WE ARE BORN LUXURY, DIGITAL, CHINESE... AND GLOBAL 2
3 DIGITAL STRATEGY CONSULTING & EXECUTION Social Search POS Brand content Mobile Official site DELIVER EXCEPTIONNAL CUSTOMER EXPERIENCE ACROSS BRAND & RETAIL TOUCHPOINTS Brand awareness, personal connection,! emotion and engagement! ecrm e-commerce 3
4 AVENE YVES SAINT LAURENT KERING GROUP GALERIES LAFAYETTE CLARINS BOUCHERON PARIS L OREAL GROUP CHRISTIAN LOUBOUTIN NOELI GALLERY
5 E-COMMERCE CONSULTING Market Research & Business Opportunities Deliverable Industry Product Business Proposition Understand Target Audience Competition Analysis Research Findings Project Design & Planning Deliverable Consumer Journey Business Scenarios Business Model Project Roadmap Business Requirements Selection of service providers & solutions IT Warehouse Payment CRM Delivery Call center Operations Marketing Deliverable Service Providers Selection V E L V E T Group (HK) Ltd Confidential
6 E-COMMERCE CONSULTING TYPICAL PROJECTS BUSINESS SCENARIOS TO START E-COMMERCE IN CHINA DESIGN ENTIRE E-COMMERCE PROJECT DEFINE THE PATH TO PROFITABILITY & P&L ESTIMATIONS OMNI-CHANNEL STRATEGY AUDIT OF EXISTING E-COMMERCE PLATFORMS V E L V E T Group (HK) Ltd Confidential
7 FULL E-COMMERCE SETUP - KEY PERFORMANCE DRIVERS E- mail marke9ng Display Search u Merchandizing Front- end u Services Omni- channel Social Media Traffic drivers u Loyalty program u MarkeEng PRODUCT (fashion & lifestyle) u Inventory management u Logis9cs Mobile store u Finance Back- end u Call center u IT solu9ons Online wholesale Partners JD, Suning, Amazon etc Strategic Online partners Tmall, Bank e- malls and flashsale sites Stores China & France
8 CHINA BECAME IN 2013 THE WORLD BIGGEST E-COMMERCE MARKET V E L V E T Group (HK) Ltd Confidential 2013
9 242 million (2012) China has the highest number of Online consumers in the world 75 M More than USA 2 x Double size of Japan 6 x Sixth times the size of UK 7.5 x more than 7 times the size of France V E L V E T Group (HK) Ltd Confidential
10 And it will continue to grow steadily 2012 è M Every year X million V E L V E T Group (HK) Ltd Confidential
11 Market size 2012 è billion 319 billion EURO X2 B2C = 45% 95.8 billion 93.5 billion 159 billion EURO B2C = 30% 45 billion V E L V E T Group (HK) Ltd Confidential
12 CHINA HAS PLENTY OF ROOM FOR GROWTH Internet users as a % of the total population Korea US Europe China Asia India 12
13 FASHION IS THE N 1 CATEGORY 27% 18% 5% 4% 3% Apparel, footwear, bags and suitcases Consumer Electronic, Home appliances Cosmetics Mother & Baby care Music, Video & books 13
14 APPAREL & ACCESSORIES SALES DURING 11/11 14
15 DOUBLE 11 TOP 10 BEST SELLERS Apparel takes up 5 positions among top 10 best sellers. JACK JONES Apparel CAMEL (menswear) UNIQLO YINMAN ARTKA Apparel 15
16 DOUBLE 11 TOP 10 WOMEN S APPAREL RMB 140,000, ,000, ,000,000 80,000,000 60,000,000 40,000,000 20,000,000 RMB 780,593,247 EUR 100 million 0 16
17 COMPETITIVE ENVIRONMENT & CONDITIONS OF SUCCESS
18 TOP B2C WEBSITES BY MARKET SHARE 57% Tmall (Alibaba Group) 20% JD 4% Suning 4% QQ Mall 3% Amazon 1% Dang dang 2% Vancl 18
19 LAUNCHED EARLY NOVEMBER 19
20 LAUNCHED 1 WEEK AGO 20
21 fashion shopping UPCOMING TRENDS
22 OMNI-CHANNEL IS THE NEW NORMAL Today's customer experience spans across multiple touchpoints Challenge is to provide an integrated customer experience WEBSITE STORES 8% Shoppable of total retail or not sales is online Order online, collect & return offline 50% of retail sales Digital is online in-stores or web- influenced MOBILE (smartphones & tablets) 79% of US smartphone Shoppable owners use or their not phones to help with shopping Source: Forrester Research, Web Influenced Retail Sales Forecast, USA
23 E-SHOPPING IS A MULTI-SCREEN AND MULTI-DEVICE EXPERIENCE ATAWAD CONSUMERS 23
24 IT IS CRITICAL TO MAP THE CONSUMER JOURNEY RESEARCH SELECT PURCHASE RECEIVE / USE SERVICE WEB Comparison site Buy online CONTACT CENTER Chat Phone order Issue complaint IN-STORE CATALOG Browse catalog Visit retail store Kiosk Begin catalog order Pick up at local store Return instore E2 = EXPERIENCE + E-COMMERCE MOBILE Google search Product info Order confirm w/ Rec SOCIAL Facebook Fan club Read reviews Share experience on Twitter Complain on brand s Twitter 24
25 1. MOBILE COMMERCE IS TAKING OFF IN CHINA Single day transactions from Taobao APP exceeded RMB 5.35 billion o 5.6 times over last year s RMB 960 million o Number of active users: 127 million o Number of transactions: 35,900,000 Alipay mobile exceeded RMB 11.3 billion (10 times over 2012). o 45 million transactions* No. of Mobile transactions Percentage to total No. Transactions ,710,000 n/a Transaction amount ,000,000 8% RMB 1,200,000, ,180,000 24% RMB ,000,000 * 2013 Double 11 total number of transactions through Alipay: 188,000,000 25
26 1. MOBILE COMMERCE IS TAKING OFF IN CHINA Key functions: product browsing/ product review shopping cart order tracking order management user account coupon Available on iphone and Android 26
27 2. WECHAT COMMERCE DEBUTS SCAN-TO-PAY KILLS SHOPPING CART Scan with WeChat 27
28 2. WECHAT COMMERCE DEBUTS SCAN-TO-PAY KILLS POS Scan to place the item in Tmall shopping cart Over 200,000 items have been placed in the shopping cart prior to double
29 3. EVOLUTION OF CUSTOMER SERVICE CLICK-TO-CALL (BURBERRY) 1 Click-to-Call function on the header 2 Provide number to the customer service 3 Immediately connected with customer service Customers can indicate country, number and the time to call The service is available 24/7 4 Receive a phone call from the US within the next 5 seconds. The customer representative is bilingual in English and Chinese and answers customer inquiries with clear explanation 29
30 3. EVOLUTION OF CUSTOMER SERVICE SOCIAL MEDIA PLATFORMS FOR CUSTOMER SERVICE Burberry customer care Weibo account Message board dedicated to customer care 30
31 4. PRODUCT PRESENTATION VIDEO SHOPPING 31
32 CONTACT US Velvet Group Limited Greenland Plaza , Yuyuan Road Shanghai China Patrice NORDEY CEO pnordey@velvetgroup.com
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