From stationary retailer towards a multi channel organization How to succeed the balancing act between stationary and online retail

Transcription

1 From stationary retailer towards a multi channel organization How to succeed the balancing act between stationary and online retail , Omnichannel Retailing Forum 2015, Warszawa Matthias Klein, CEO ORSAY International

2 ORSAY a vertical fashion retailer with 40 years of experience Foundation: 1975 in Willstätt-Sand/Germany Industry sector: Fast Fashion Organization: Internat. vertical organization Headquarters: Willstätt/Germany Wrocław/Poland # of employees: employees # of shops: 633 in 26 countries, Germany: 209 (mainly shop center or high street top locations) Optimal shop size: sqm Turnover: 450 EUR m (International) Turnover growth: 6% LfL Orsay International (5% LfL Germany) 2

3 ORSAY has the right business model and positioning to be successful in the markets Mark et Development (forec as t) Verticals (40,7%) Apparel Specialists (26,8%) Catalogue (13,9%) Department Stores (7,2%) Discounter/Supermarket (6,9%) Verticals (40,7%) Ap parel S pecialists (26 Catalogue (13,9%) Department Stores (7,2 Discounter/Supermarke E - Commerce (1,8%) E - Commerce (1,8%) Verticals (40,7%) F Other Specialist (1,8%) Other (0,9%) Other Specialist (1,8%) Apparel Specialists (26,8%) Catalogue Other (13,9%) (0,9%) Department Stores (7,2%) A B C D E G H A Verticals (40,7%) E Discounter/Supermarket (6,9%) B Apparel S pecialists (26,8%) F E - Commerce (1,8%) C Catalogue (13,9%) G Other Specialist (1,8%) D De partment S tores (7,2%) H Other (0,9%) 3

4 Market background < ORSAY Next to the dominating long tail online retailers (Amazon and Zalando) vertical brands and multi channel players will succeed online). Others will struggle. 4

5 ORSAY Brand Identity ORSAY ORSAY The favorite international retail brand The favorite international retail brand for Julia, making her desire for feminin for JULIA, making her desire for fashion affordable. ORSAY The favorite international retail brand for Julia, making her desire for feminine fashion affordable. feminine fashion affordable. 5

6 ORSAY target customer Our target customer JULIA Aged 34, but feels 28 Size 38, but wants to be 36 Married or living with partner, 1 child Lives in a rural average size city Limited shopping budget Looking for orientation Strives for self-confidence JULIA is ORSAY s core target group. 6

7 ORSAY value chain Planning Production Distribution Multichanne lsales Happy Julia Trend Scouting various metropolises on the globe Smart Data club data of 2.7 mio active customers Adaptation of trends toward Orsay customers Sourcing in 40 different countries 50/50 Asia / Europe production 50% reactive products with a lead time 2-8 weeks Central warehouse in Bielany Poland Own Retail in 11 countries Germany, Poland, Austria, Czech Republic, Switzerland, Romania, Hungary, Slovakia, Croatia Franchise in 15 countries Albania, Armenia, Belarus, Bosnia-Herzegovina, Bulgaria, Estonia, Finland, Georgia, Kosovo, Latvia, Malta, Moldavia, Montenegro, Ukraine, Russia Bi-weekly new product intakes 50% long-term lead times with good buycoefficient E-Commerce in 3 countries Germany, Austria & Poland Operative Controlling 7

8 Along our value chain our projects are organized through our JULIA HOUSE PRODUCT VERTICAL EXCELLENCE BRAND Ecommerce Sales MULTI CHANNEL Marketing VM Construction The projects support ORSAY s transformation to the favored fast fashion multi channel retail brand, by focusing on a qualitative development of our key competences DIGITAL / INFORMATION TECHNOLOGY FINANCE HUMAN RESOURCES BUSINESS DEVELOPMENT 8

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10 ORSAY Brand Experience Product DNA + Styling Competence Emotionalisation Consistant Brand Presence in all Stores Digital ORSAY s brand evolution to create a consistent brand experience for JULIA every day and every place 10

11 Customer journey Brick & mortar retailing has lost control of the overall purchasing process. Inspira(on Research/ Compare Fi3ng + Advise Decision Transac(on Delivery A?er Sales Repeat Stores Online Print Traditional customer journey : Process of the past! Mobile Phone Social 11

12 Customer journey Nearly half of customers use the internet to search and compare products before visiting the store with a precise purchase intention. Inspira(on Research/ Compare Fi3ng + Advise Decision Transac(on Delivery A?er Sales Repeat Stores Online Print Mobile Phone ROPO Research online offline Social 12

13 Customer journey Online customers use multi channel services for convenient pick-up or return delivery in stores. Inspira(on Research/ Compare Fi3ng + Advise Decision Transac(on Delivery A?er Sales Repeat Stores Online Print Mobile Phone Multi channel features like click & collect or returns to stores offer convenient service and increase store traffic. Social 13

14 Customer journey Customers get inspired by catalogues and check online for retail availability to reserve and purchase in the store. Inspira(on Research/ Compare Fi3ng + Advise Decision Transac(on Delivery A?er Sales Repeat Stores Online Print Mobile Phone Online stock transparency strengthens purchase intention and increases traffic in stores. Social 14

15 Customer journey Customers use their smart phones to search for products or stores, to compare prices, to look for recommendations before visiting stores. Inspira(on Research/ Compare Fi3ng + Advise Decision Transac(on Delivery A?er Sales Repeat Stores Online Print Mobile Phone Mobile optimization and services like Store finder or Club App with added values drive customers into stores. Social 15

16 ORSAY multi channel strategy ORSAY opted for a Multichannel business model where online facilitates brick & mortar sales. Multi channel business model needs multi channel Management, which means moving away from a channel towards a customer group perspective (supporting different types of customer journeys). All channels are creating brand awareness, generating sales and traffic, supporting cross channel convergence and convenience for the customers. 16

17 ORSAY multi-channel strategy structured along 8 key elements Orsay multi channel strategy Wheel ROI culture State of the art web shop i-orsay Digital transformation Cross channel / selling Big data & Customer analysis (integration of) Product Technology Digital service 24/7 17

18 AGILE MINDSHIFT AND MINDSET are fundamental for digital transformation ORSAY 2010 ü Identity Target Customer JULIA Assortment Structure Project Management Quality One team one vision Julia Project Road show Transformation into a Vertical Fast Fashion Retailer ü DNA & Orsay handwriting Reactivity Anticipation Micro-Macro Processes Team & Management Performance Culture IT Backbone Mind shift Same wording Transformation into the Favored Multi-Channel Retail Brand for JULIA Customer Centric Lifestyle assortment through product excellence Mega-fast & reactive Orsay Brand Experience every day Digital transformation: front end & back end (workplace, work flow) Corporate Spirit : Glow KISS (focus on efficiency) Leadership Performance Culture ROI mind shift 18

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