KEEP UP WITH TODAY'S CONSUMER: THE BELGIAN FASHION RESEARCH INSIGHTS - URBAN CITY JUNE 1, 2016..
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KEEP UP WITH TODAY’S CONSUMER: THE BELGIAN FASHION RESEARCH INSIGHTS URBANCITY URBAN CITY°/ JUNE JUNE 1, 1, 2016.. 2016
Claudine Knop, CEO DBM FROM Bart Muskala, CEO True North 10 SHOPPER Peter Grypdonck, CEO Vente-Exclusive.com CASE STUDY: RECORDS BEHAVIOUR CONSUMER TO HUMANS INSIGHTS DATA IMPACT When data strategies Including Data-driven impact meet humanity personalised report at Vente-Exclusive.com
We Weorganize organizedata dataininaa‘privacy ‘privacyby bydesign’ design’solution, solution, allowing allowingbrands brandstotoobtain obtainoptimal optimalcustomer customer insights insights and andturn turnthis thisknowl…..edge knowledge intointo living living customer customerstories stories andexperiences and experiences ….because because ourour purpose purpose isis human human first. first.
IN BETHE CONNECTED MOMENT &&- BE BECONNECTED CONNECTED&& CONTROL, CONTROL,RESPECT RESPECT&& INSTANT INSTANTSOLUTIONS. SOLUTIONS.- PERSONAL PERSONALRELEVANCE. RELEVANCE. PRIVACY. PRIVACY.
STEP STEPBY BYSTEP. STEP. GENUINE GENUINEINTEREST. INTEREST. BE BERELEVANT. RELENVAN NEVER NEVERGOSSIP! GOSSIP!
BRAND BRANDCONNECTIONS CONNECTIONS VIA VIARELEVANT RELEVANTINTERACTIONS. INTERACTIONS 2 4 CONSUMER CONSUMER INTERACTIONS INSIGHTS CONSUMER CONSUMER TOUCHPOINTS DATA 1 3
TO TOPERSONALISED PERSONALISED CONSUMER CONSUMERINSIGHTS INSIGHTS PREFERS SHOPPING MALL & ONLINE BUYING, HAS A CLASSIC STYLE, BUYS ACCESSORIES FROM VERITAS, BASICS FROM VERO MODA, SHE LOVES COS, SHE IDENTIFIES HERSELF WITH &OTHER STORIES, PREFERS KIDS FROM FROMGENERIC GENERIC CLOTHES FROM CKS & JBC, DATA DATAINSIGHTS INSIGHTS SHOPS 19 TIMES A YEAR OF WHICH 38% ONLINE, SHE FEMALE, 25 YEARS OLD, LIKES TO BE INSPIRED, ... LIVES IN BRUSSELS, SASKIA. SOMETHING@GMAIL.COM, ID 13-291726-2918-22, 28 SHOP VISITS, ITEM A-E08EA, RETURNED A-E87EF, ...
CONSUMER CONSUMER INTERACTIONS INSIGHTS CONSUMER CONSUMER TOUCHPOINTS DATA SUCCESS SUCCESSIN INCONSUMER CONSUMER UNDERSTANDING UNDERSTANDINGREQUIRES REQUIRES ECOSYSTEM ECOSYSTEMTHINKING. THINKING.
HIGHLIGHTS HIGHLIGHTS. FROM THE THE. BELGIAN FASHION FASHION. RESEA..RCH. RESEARCH.
We We Wehelp help helpretail retail retailbrands brands brands understand understand understand&&&act act acton on on ever-changing ever-changing ever-changing consumer consumer consumerbehaviour. behaviour. behaviour.
RETAILIS RETAIL ISIN INCONSTANT CONSTANT CHANGE&&THE CHANGE THEMAIN MAIN REASONFOR REASON FORPREDICTIONS PREDICTIONS LIKETHESE. LIKE THESE. 30.000 stores will disappear the coming years.
MANYINITIATIVES MANY INITIATIVES SUPPORTTHE SUPPORT THE ATTRACTIVITY&&IMPACT ATTRACTIVITY IMPACT OFRETAIL. OF RETAIL.
THEMOST THE MOSTIMPORTANT IMPORTANT SOURCEOF SOURCE OFINSPIRATION INSPIRATION ISYOUR IS YOUROWN OWN CONSUMERBASE, CONSUMER BASE, BOTHCLIENTS... BOTH CLIENTS...
…AND … ANDNON-CLIENTS. NON-CLIENTS.
HOW HOWBETTER BETTERSERVE SERVE HOW HOWTOTOATTRACT ATTRACT HOW HOWTO TODIFFERENTIATE DIFFERENTIATE OUR OURDIFFERENT DIFFERENT THE THEYOUNGER YOUNGER IN INAAPROMOTIONAL PROMOTIONAL AUDIENCES? GENERATION? GENERATION? WORLD? WORLD?
IN A BET
3.600+ 3.600+CONSUMERS CONSUMERS OVER OVER40 40BRANDS BRANDS 11.000 11.000EVALUATIONS EVALUATIONS 500.000+ 500.000+DATA DATAPOINTS POINTS
#0 BECOME BECOMEAA SEGMENT SEGMENT LEADER LEADER
BELGIANS BELGIANSARE AREMOSTLY MOSTLYCLASSIC CLASSICTYPES. TYPES. Sobre, contemporary, never too present with sobre accessories 38% classic types Of all Belgian female customers, 38% considers themself mostly to be classic.
BUT BUTTHE THEOTHER OTHEREND END--THE THECOLORFUL COLORFULMIX MIXTYPE TYPE--RANKS RANKS2ND 2ND 20% is the counterpart that mixes colors, patterns & trendy items together to a unique style
NOT NOTTHE THE“FAMOUS” “FAMOUS”BRANDS BRANDSHAVE HAVEHIGHEST HIGHESTATTRACTION ATTRACTIONFOR FOR SPECIFIC SPECIFICFASHION FASHIONTYPES, TYPES,NICHE NICHEPLAYERS PLAYERSDO... DO... 1 in 2 clients of Terre Bleue consider themselves “classic” types.
#1 ANSWER ANSWER THE THE OUT OUTFIT F IT NEE NEEDD
OUTFITS OUTFITSARE AREALREADY ALREADYBOUGHT BOUGHTAT ATONE ONESTORE, STORE, INDICATING INDICATINGINTEREST INTERESTFOR FOR“ONE “ONESTOP STOPSHOP” SHOP”SOLUTIONS. SOLUTIONS. make-up lingerie accessories 1 in 2 clothes already buys full outfits at one and the same retailer. shoes
SOME SOMEBRANDS BRANDSARE ARE“CREATING” “CREATING”THE THEMARKET. MARKET, 1 in 5 ... but 1 in 4 Even 40% of fashion Primark Primark shoppers customers customers bought shoes from a bought shoes from a bought shoes from fashion retailer before fashion retailer before PRIMARK is “creating” the market
OTHERS OTHERSHAVE HAVEAN AN“UNTAPPED “UNTAPPEDPOTENTIAL” POTENTIAL”WITHIN WITHINTHEIR THEIRCUSTOMER CUSTOMERBASE. BASE. 1 in 5 LolaLiza … but customers only 4% bought shoes from a bought shoes from fashion retailer before LOLA LIZA is “creating” the market has an untapped potential
#2 BEE PRESENT PRESENT (WHERE (WHERE THEY THEYAARE) RE)
SHOPPING SHOPPINGMALLS MALLSREMAIN REMAINAAPREFERED PREFEREDLOCATION LOCATION SHOPPING SHOPPINGSTREETS STREETS&&BOUTIQUES BOUTIQUESAT ATTHE THESAME SAMELEVEL. LEVEL. 60% prefer malls & retail parcs 40% prefer boutiques for their fashion needs 10% prefer out of town locations MALLS & MAIN OTHER LOCAL BOUTIQUES PERIPHERIC RETAIL SHOPPING SHOPPING SHOPS LOCATIONS / PARCS STREETS STREETS OUT OF TOWN
SOME SOMEBRANDS BRANDSATTRACT ATTRACTAUDIENCES AUDIENCESTHAT THATOVER- OVER-OR OR UNDERPERFORM UNDERPERFORMININONE ONEOR ORMORE MORELOCATION LOCATIONTYPES. TYPES. ZARA overperforms for main shopping streets with +34% where they = + + - = - prefer to shop = ZARA’s presence in malls & shopping where they - is a good streets - fit - CAN shop with its audience. MALLS & MAIN OTHER LOCAL BOUTIQUES PERIPHERIC RETAIL SHOPPING SHOPPING SHOPS LOCATIONS / PARCS STREETS STREETS OUT OF TOWN
NOT NOTALL ALLBRANDS BRANDSARE AREPRESENT PRESENTWHERE WHERETHEIR THEIRCUSTOMERS CUSTOMERSARE, ARE. OVERPERFORMANCE OVERPERFORMANCEOF OFFOOTFALL FOOTFALLSHOWS SHOWSAAPOTENTIAL POTENTIALMATCH. MATCH. e5 overperforms for boutiques with +76% where they - - - + + + prefer to shop e5 has a potential ≠ = market for offering its where they brands at - boutiques - - - CAN shop MALLS & MAIN OTHER LOCAL BOUTIQUES PERIPHERIC RETAIL SHOPPING SHOPPING SHOPS LOCATIONS / PARCS STREETS STREETS OUT OF TOWN
#3 CUSTOMER C USTOMER EEXPERIENCE? X PERIENCE, UUSE S EIT ITWELL WELL
THE THEAVERAGE AVERAGEFASHION FASHIONCLIENT CLIENTIS ISCONVERTED CONVERTED BECAUSE BECAUSEOF OFTHE THEFOLLOWING FOLLOWINGCRITERIA: CRITERIA: What clients expect most? #1 #2 #3 Offering articles Inspiration Only third that match is key to comes ‘a shopper’s taste convince good shop is crucial shoppers experience’
THE THEAVERAGE AVERAGEFASHION FASHIONCLIENT CLIENTIS ISCONVERTED CONVERTED BECAUSE BECAUSEOF OFTHE THEFOLLOWING FOLLOWINGCRITERIA: CRITERIA: Many other parameters in the top 10 are related to “what you sell”
THE THEAVERAGE AVERAGEFASHION FASHIONCLIENT CLIENTIS ISCONVERTED CONVERTED BECAUSE BECAUSEOF OFTHE THEFOLLOWING FOLLOWINGCRITERIA: CRITERIA: #3 ‘a good shop experience’ should support OFFERING & INSPIRATION
CUSTOMER CUSTOMEREXPERIENCE EXPERIENCESHOULD SHOULDSUPPORT SUPPORT THE THE“INSPIRE “INSPIREME” ME”EXPECTATION. EXPECTATION.
MANY MANYBRANDS BRANDSCOULD COULDCONVERT CONVERT“GOOD” “GOOD”CUSTOMER CUSTOMEREXPERIENCE EXPERIENCE SCORES SCORESTO TOLIFT LIFTTHE THEINSPIRATION INSPIRATIONEXPECTATION. EXPECTATION. COMMUNICATE OVER KEEP DELIVERED Massimo Dutti overdelivers on the EXPECTED LESS EXPECTED MORE “high” expectations of its clients Primark, with a price- driven promise underdelivers but given its clients have “lower” expectations UNDER FOLLOW UP DELIVERED IMPROVE it is not a problem
#4 ALWAYS ALWAYS BBEE INSPIRING. INSPIR ING.
WITH WITHINSPIRATION INSPIRATIONAS ASAAKEY KEYDRIVER DRIVERFOR FORPURCHASE, PURCHASE, TOUCHPOINTS TOUCHPOINTSTHAT THATDELIVER DELIVERON INSPIRATION THIS EXPECTATION ARE MOREARE CONVINCING. MORE CONVINCING. #1 #3 Word of Retail mouth window #2 Lookbook & folders
MORE MOREDIGITAL DIGITALCHANNELS CHANNELSRANK RANKAT ATTHE THEBOTTOM BOTTOM AS ASLEAST LEASTPERSUASIVE, PERSUASIVE.ON ONAVERAGE AVERAGE,THAT THATISIS! ! #10 #8 E-mail Blogs #9 Social media
SOME SOMEBRANDS BRANDSOVERPERFORM, OVERPERFORM, DIFFERENT DIFFERENTFROM FROMTHE THEAVERAGE. AVERAGE. The TOP 3 MOST PERSUASIVE channels for Vente- Exclusive.com are up 2,8x to 3,2x 3 times more 2,4x persuasive
#5 WELCOME WELCOMETHTHEE OMNI-CHA OMNI-CHANNEL N EL SHOPP SHOPPER. ER.
THE THESTATE STATEOF OFE-COMMERCE... E-COMMERCE... 33% NEVER SHOPS ONLINE 67% DOES...
FIRST, FIRST,THE THEGOOD GOODNEWS... NEWS... OFFLINE OFFLINESHOPPERS... SHOPPERS OMNI CHANNEL OMNI CHANNEL SHOPPERS SHOPPERS . SPEND LESS SPEND 13% MORE IN TOTAL SIMILAR # OF BRANDS SIMILAR # OF BRANDS GO ‘SHOPPING’ 13# / YEAR GO ‘SHOPPING’ TWICE AS MUCH
ZALANDO ZALANDOMORE MOREATTRACTIVE ATTRACTIVEFOR FOREXPERIENCED EXPERIENCEDOMNI-CHANNEL OMNI-CHANNEL SHOPPERS... SHOPPERS... Brands are still Zalando prefered enters top 3
THE THEFUTURE FUTUREOF OFSHOPPING SHOPPINGIS IS INCREASINGLY INCREASINGLYONLINE. ONLINE. Brands are still Zalando CURRENT prefered enters top 3 SITUATION of the split for the Belgian market FUTURE ESTIMATION based on neighbouring countries
THE THETRUE TRUECHALLENGE CHALLENGEOF OFOMNI-CHANNEL? OMNI-CHANNEL? Brands are still Zalando prefered enters top 3 WHAT IS YOUR MARKET SHARE in a borderless omni- channel world?
HOW HOWTO TODEFEND DEFENDMARKET MARKETSHARE SHARE?? Brands are still Zalando prefered enters top 3 TRIAL & EXCLUSIVITIES & PREFERENCE PARTNERSHIPS
#6 RESP RESPECT ECT CUSTO CUSTOMER MER NEED NEEDSS
DIFFERENT DIFFERENTNEED NEEDSTATES STATESEXIST EXISTIN INTHE THEMARKET, MARKET. SOME SOMENEEDS NEEDSARE AREMORE MOREPRESENT PRESENTTHAN THANOTHERS. OTHERS. 1 in 4 1 in 7 considers herself to is a FUNCTIONAL be a SHOPAHOLIC, type: preferably for whom shopping is 1 store, IN & OUT to more like a HOBBY buy all that is needed
THE THEREASON REASONSOME SOMEBRANDS BRANDSOVERDELIVER OVERDELIVERTO TOSPECIFIC SPECIFICNEEDS, NEEDS, IS ISBECAUSE BECAUSETHEY THEYOVERDELIVER OVERDELIVERON ONSOME SOMEEXPECTATIONS EXPECTATIONSMORE. MORE. FUNCTIONAL SOCIAL SHOPPER/…. SHOPPER SHOPAHOLIC SHOPAHOLICSHOPPER SHOPPER OLDER YOUNGER LOWER FREQUENCY HIGHER FREQUENCY PREFER OFFLINE PREFER ONLINE LESS TRENDFOLLOWING EXPECTS SHOP EXPERIENCE LESS NEED FOR INSPIRATION NEEDS TO BE INSPIRED
NOT NOTALL ALLBRANDS BRANDSFULFIL FULFILTHE THESAME SAMENEEDS NEEDSEQUALLY EQUALLYGOOD. GOOD.
#7 KNOW KNOWYOUR YOUR RELEV RELEVANT ANT MARK MARKET ET
OVERALL OVERALLBRAND BRANDKPIS KPISFOR FORBRANDS BRANDSSHOW SHOWAAVERY VERYSATURATED SATURAREDMARKET, MARKET, WITHOUT WITHOUT11BRAND BRANDTHAT THATRULES RULESTHEM THEMALL ALL--CFR. CFR.END ENDOF OFCATEGORY CATEGORY LEADERSHIP. LEADERSHIP. 25 The average shopper knows on average 25 8% NO CLEAR brands. LEADERSHIP, THE HIGHEST 7 SCORING BRAND IS We buy at “only” 7 NAMED BY A brands or 28% of the MERE 8% OF THE brands we know. MARKET
C&A, C&A,TOGETHER TOGETHERWITH WITHH&M H&MDOMINATE DOMINATETHE THETOP TOP33FOR FOREVERY EVERYBRAND BRANDKPI KPI
MORE MOREIMPORTANT IMPORTANTISISTO TOHAVE HAVEAALOOK LOOKAT ATTHE THE “RELATIVE” “RELATIVE”SCORES SCORESOF OFYOUR YOURBRAND BRANDKPIS KPIS Only the relative % of fans is ON PAR C&A consequently OVERPERFORMS compared to the average FOCUS ON BUILDING ONCE YOU HAVE TOP OF MIND & SOLVED POTENTIAL AWARENESS KPIS UNDERPERFORMANCE
RELATIVE RELATIVESCORES SCORESARE AREBEST BESTPLOT PLOTAGAINST AGAINST YOUR YOURRELEVANT RELEVANTSET SETOF OF“COMBINED “COMBINEDBRANDS”. BRANDS”. shoppers have a higher tendency of shopping at...
#8 BUILD BUILDYOUR YOUR BRAND BRAND EQUITY EQUITY
GOOD GOODSCORES SCORESON ONBOTH BOTHMETRICS, METRICS, INCREASES INCREASESYOUR YOURBRAND BRANDEQUITY EQUITYSCORE. SCORE. Brand equity = (% of lovers) x (1 - % of ‘nevers’) guarantee for high retention leaves potential for acquisition
44IN IN10 10BUYERS BUYERSOF OFYOUR YOURBRAND BRANDARE AREFANS, FANS, ON ONAVERAGE AVERAGE27% 27%OF OFNON NONBUYERS BUYERSIS ISAA“HATER”. “HATER”. HIGH % OF LOVERS 43% of Belgian shoppers are “fan” of the brands they shop at, but... brands LOW % OF HATERS HIGH % OF HATERS aren’t average LOW % OF LOVERS
BRANDS BRANDSDO DOGOOD GOODTO TOSTAY STAYOUT OUTOFOFTHE THEAPATHETIC APATHETICZONE, ZONE, WORKING WORKINGTHEIR THEIRWAY WAYTO TOMORE MOREFANS FANS&&LESS LESSHATERS. HATERS. HIGH % OF LOVERS COS has the highest brand equity score of Niche players with a 59% very specific promise & target audience, show a mix of both many lovers & haters. LOW % OF HATERS HIGH % OF HATERS Low scores for both lovers & haters puts LOW % OF LOVERS brands in an ‘apathetic’ zone which lacks ambassador strategies
BUT BUTAABRAND BRANDCAN’T CAN’TBE BEAALOVE LOVEBRAND BRANDFOR FOREVERYONE... EVERYONE... #7 THE THE THE THE THE CLASSIC BIG BIG ONLINE FIRST PRICE SENSITIVE TYPE SPENDER. SPENDER. BUYER BUYER #6 #3 #11 #32
#9 IM IMPACT PACT SHAR SHAREE OF OF WAL WALLET LET
AN ANAVERAGE AVERAGEBRAND BRANDHAS HASAASIMILAR SIMILARSPLIT SPLITOF OFITS ITSCUSTOMER CUSTOMERBASE BASE 70% of clients are low or medium spenders, visiting your stores a limited # of times a year, often just once
WE WEALL ALLKNOW KNOWWHERE WHERETHE THEMONEY MONEYCOMES COMESFROM... FROM... 10% of an average brand’s client base accounts for 45% of its revenues
BRANDS WE ALL KNOW WITH HIGHER WHERE BRAND THE MONEY EQUITY COMES SCORES FROM... ATTRACT ON AVERAGE A HIGHER NUMBER OF HIGH & BIG SPENDERS.
#10 DARE DARE TTOOBE BE DIFFER DIFFERENT ENT
ARE AREYOU YOUTHE THEMERCEDES MERCEDESORORTHE THETESLA TESLAOF OFYOUR YOURMARKET? MARKET? OR ORSATISFIED SATISFIEDWITH WITHAAMAINSTREAM MAINSTREAMPOSITIONING? POSITIONING? HIGH DIFFERENTIATION ASPIRATIONAL BRANDS often have the UNCONVENTIONAL possibility to get a BRANDS price premium for are focused or niche their products brands that will NEVER convince all, but are very distinctive compared to others LOW CENTRALITY HIGH CENTRALITY LOW DIFFERENTIATION
FOR FORTHE THEAVERAGE AVERAGESHOPPER SHOPPER(BOTH (BOTHCUSTOMERS CUSTOMERS&&NON NONCUSTOMERS), CUSTOMERS), BRANDS BRANDSARE AREPOSITIONED POSITIONEDBASED BASEDON ONCENTRALITY CENTRALITY&&DIFFERENTIATION. DIFFERENTIATION. Graph for the average market UNCONVENTIONAL ASPIRATIONAL HIGH DIFFERENTIATION Many famous brands, Zalando, still a like JBC have high “niche” player is centrality (TOM) and mainly considered are able to be “different” by its non- evaluated to be customers “different” LOW CENTRALITY HIGH CENTRALITY LOW DIFFERENTIATION PRIMARK, coming from nothing is already part of the mainstream brands PERIPHERIC MAINSTREAM
DEPENDING DEPENDINGON ONTHE THESUBSET SUBSETYOU YOUFOCUS FOCUSON, ON, BRANDS BRANDSMOVE MOVEBETWEEN BETWEENQUADRANTS. QUADRANTS. Graph for the 25-35 years old category HIGH DIFFERENTIATION For a “younger” audience, Zalando & Primark are more aspirational than for the average market LOW CENTRALITY HIGH CENTRALITY LOW DIFFERENTIATION
WHAT THIS MEANS MEAN?S AS AN OVERALL OVERALL? CONCLUSION?? CONCLUSION?
Become a LOVE BRAND, DISTINCTIVE from your competitors. Find your FOCUS & OVERDELIVER on expectations. Let your CONSUMERS guide you.
CONSUMER CONSUMER. DATA IMPACT IMPACT. AT VENTE-EXCLUSIVE.COM VENTE-EXCLUSIVE.COM.
WHAT’S WHAT’S- NEXT?- NEXT?
QUESTIONS? QUESTIONS? FOOD FOOD&&DRINKS DRINKS SHARE SHARETHOUGHTS THOUGHTS DRIVE DRIVESAFE! SAFE!
URBAN THANKSCITY FOR° BEING JUNE 1,HERE. 2016..
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