e-fashion summit gfk

Customer Journey Fashion

Laurent de Groof

Managing consultant Media at GfK

Bankruptcy in the fahion market: jun ‘11-okt ‘13: a difficult period.

Bron: ConsumerJury

Online fashion is growing rapidly, clothing, shoes and accessory!

MAT aug08 MAT aug09 MAT aug10 MAT aug11 MAT aug12 MAT aug13

9.2 9.1 9.2 9.2

8.58.1

3.0 2.9 2.9 3.1 3.0 2.8

0.5 0.5 0.6 0.7 0.8 0.9

0.1 0.1 0.2 0.2 0.3 0.4

Fashion kleding Totaal

Fashion schoenen & accessoires To-taal

Fashion kleding Online

Fashion schoenen & accessoires On-line

-13%

+83%

-7%

+243%

Development in fashion clothing and shoes & accessoires: online/offline (* Billion €)

billi

ons

Development of the fashion market shows strong correlation with the consumer confidence index

Jan 2007

Apr 2007

Jul 2007

Okt 2007

Jan 2008

Apr 2008

Aug 2008

Feb 2009

Aug 2009

Feb 2010

Aug 2010

Feb 2011

Aug 2011

Feb 2012

Aug 2012

Feb 2013

Aug 2013

Nov 2013

Feb 2014

Mei 2014

Aug 2014

Nov 2014

-50

-40

-30

-20

-10

0

10

20

30

70

75

80

85

90

95

100

105

110

115

Consumer Confidence

Index Fashionmarkt in bestedingen

Bron: CBS en GfK Consumer Jury

Consumer Key Indicators Jan 2000 – Aug 2013en index Fashionmarkt t.o.v. jan07-Jun07

95Spendings

Bovenmode dames 12+

92 97

Bovenmode kind en

babymode

96

Body-fashion 2+

101

Reis- en lederwaren

97

Schoenen 2+

And in online?

The biggest loss for men’s fashion

Bron: GfK Consumer Jury

Bovenmode heren 12+

Ontwikkeling per markt – totaalIndex t.o.v. MAT augustus 2012

101

Jeans

118Spendingsonline

Bovenmode dames 12+

111 126

Bovenmode kind en

babymode

116

Body-fashion 2+

159

Reis- en lederwaren

125

Schoenen 2+

Growth in online spendings for segments in the market.


Bovenmode heren 12+

Ontwikkeling per markt – totaalIndex t.o.v. MAT augustus 2012

127

Jeans*

Top 5 retailers: clothing

MAT aug 2013MAT aug 2008

Top 5: 21,9%Top 5: 19,1%


Totaal

MAT aug 2013MAT aug 2008

Top 5: 40,3%Top 5: 59,4%

Online

Number of clients trippled, but also loyalty at Zalando increased in the last three years

10%

Loyaliteit ZalandoMAT aug 2012


8%


11%


€ 179,- € 177,- € 173,-

€ 942,- € 974,- € 1024,-

Aantal Zalando kopers:209.000



Customer Journey Women’s FashionPlanned purchase for upper wearJun 2012 – Jan 2013

OF WOMEN’S PLANNED FASHION PURCHASES

ARE MADE ONLINE

OF PLANNED PURCHASES ARE PRECEDED BY ONLINE RESEARCH

PLANNED PURCHASE

Key stats

The role of digital for women’s fashion

13% 63%50%

11

Women‘s Fashion Buyers and their Purchases

An Intro to Women’s Fashion Buyers and their Purchases

13%Of women’s fashion purchases are

made online

The share of purely offline

buyers is decreasing

63%Of purchases are preceded by

online research

2009 2010 2011 2012

77.0 74.7 73.5 72.6

20.7 23.1 23.5 24.2

2.4 2.3 3.0 3.2

Pure offline buyers

Online and off-line buyers

Pure online buyers

Source: GfK E-fashion market information

Onlinerevenues

are growing quickly

mar 08

mar09 mar10 mar11 mar12 mar13

100 104115

146

181198

98 99

99

95 85

Online

Offline

Source: GfK E-fashion market information

Research design of the purchase journey

12

Method: Media Efficiency Panel

Psychographic Demo-

graphic

Websites visited (URL’s)

Google search queries

Fashion purchase specs

Offline research

&Consideration

set

Questionnaire:Claimed behavior

Personal Information(registered panel

information)

Plug-in: real online search

behavior(passively measured)

Purchase and media behavior of the same individuals (single source)

Method: Sampling panel

Total GFK panel Purchased fashion item(s)With plug in

Active use

Recruiting sample from a subset of the total panel

14

Actual and claimed behavior

Method: Data collection

Purchase & Offline ResearchQuestionnaireA C

Purchase• Brand • Type of clothing• Purchase channel • Eventual consideration set

Offline research• How? • When?• How long?

Step 1: Software installed on panelists PC’s/ Notebooks

Continuous registration of• Websites (url’s) visited• Time spend on websites• Google search queries• Much more

Step 2: Relevant1 websites and search queries are extracted from their continues registration.

Step 3: All online research (relevant website visits/ search queries) 3 months before purchase constitute the database of the study.

1Relevant websites and ‘search queries’ are those that are related to the researching for clothing. A listing and categorization of these are in included in the appendix.

Online ResearchPlug-in

Screening (intention to buy?)Questionnaire B

Intention• To buy clothes• Purchase channel• Initial consideration set

Shopper segmentation• calculative • informed• Passive• passionate

Offline orientation categories

Offline acties

Visit stores

Window shopping

Read folders

Discuss with family and friends

Read magazines/Watch TV

* A complete list of websites is attached in the appendix

Offline actions

Website categories

Website category Example

Retailer

Brand

Department store

Blog/fashionrelated

Comparison site

Discount site

Social Media

Missetam.nl

Desigual.com, Esprit.nl

VD.nl, Wehkamp.nl

Fashionchick.nl

Vergelijk.nl

Folders.nl

Facebook

* A complete list of websites is attached in the appendix

Online actions

The purchase journey of a planned women’s fashion purchase

18

19

Research for online and offline purchases differs strongly

15Timespan in days

41%Used Search

1.7 Ø search actions*

94%Used Websites

0.5Ø offline actions***

#%

6Ø number actions

32%Offline research

95%Online Research

Total (n= 480)

24%Used Search


#%

70%Offline research

63%Online Research

62%Used Websites

75 minutesTotal time spent

Comparing online and offline purchases

15Timespan in days

41%Used Search


94%Used Websites


#%

6Ø number actions

32%Offline research

95%Online Research

Offline purchase (n= 412)

22%Used Search

3.2Ø search actions*

#%

56%Used Websites


15Timespan in days

41%Used Search


94%Used Websites


#%

6Ø number actions

32%Offline research

95%Online Research

Online purchase (n= 68)

36%Used Search


#%

13Timespan in days

6Ø number actions

14Timespan in days

6Ø number actions

10Timespan in days

8Ø number actions

32%Offline research

94%Online Research

94%Used Websites


0.9Ø read circulars**

#

2.1Ø store visits**(*)


#



#


Base: Purchases preceded by online or offline research / Purchases where search was used / Purchases where websites were used / Purchases where offline was used

76%Offline research

58%Online Research

Online purchases usually starts with a website visit, whereas offline purchases start with an offline store visit

20

First action in research process

Visit stores + window shopping

Department store website

Retail website Read circulars Google search

4

44

31

10

4

35

17 18 17

5

Online purchases (n=68) Offline purchases (n= 412)

Base: Online and offline purchases

%

For online purchases, relatively more time is spent on online research, while for offline purchases more time is spent on offline activities.

21

Average time spent on research process: online vs. offline purchases

• During the research process,

more time is spent on online

research for online purchases,

while the opposite is the case for

offline purchases: relatively more

time is spent on offline research.

• The research process of online

purchases takes approximately

1.5 hours, while the process

takes 1.25 hours for offline

purchases.

98 minutes

73 minutes

n = 68

n = 412

Online

Offline

Base: Purchases for which online or offline orientation is used (n=480)

94% of online purchases is preceded by website visits, 36% is preceded by Google search and 32% is preceded by offline research

22Base: Online purchases preceded by online or offline research // Online purchases preceded by a specific source during the research process

Usage of online and offline sources: online purchases

94%

6%

Visited relevant websites

YesNo

n = 68

# websites visits

6.2

36%

64%

Used Google Search

YesNo

n = 68

# search actions

2.3

# offline actions

32%

68%

Offline research

YesNo

n = 68

3.1

For offline purchases less online research is done, however when used, it’s similar to an online purchase

23Base: Offline purchases preceded by online or offline research // Offline purchases preceded by a specific source during the research process

Usage of online and offline sources: offline purchases

# offline actions

n = 412

3.3

n = 412

# search actions

3.2

# websites visits

n = 412

4.9

While most traffic is offline, there is a lot of traffic between retailer and department store websites

24

Transition analysis all purchases (n= 480)

• In an average purchase,

most traffic takes starts

with an offline action.

• There is also much traffic

between retail websites

and websites of

department stores.

Base: All purchases for which online or offline orientation is used (n = 480)

Social media

Start

Search

FinishComparison website

OfflineDiscount website


Brand website

Blog/Fashionrelated

Retail website

(2%)

(70%)

(2%)

(24%)

(0%)

(1%)

(45%)

(8%)

(45%)

(100%)

(100%)

19%

8%

2%

2%

1%

8%

5%

3%

2%

2%

10%

5%3%

2%

2%

7%

4%

2%

2%

3%

3%

The percentages shown at each source illustrates what % of all buyers who did research, used this source to do research, e.g. the reach.The percentages next to the lines illustrate what % of all actions are between those two sources. The color of the line indicates the direction of the action (e.g. a visit to website A followed by a visit to website B).

25

The average journey of a purchase consists of 3 website visits, 1 search action and 1 offline action

Average purchase journey

6 actions – 75min – 13 days

Brand website

Visiting

Reading

Search


Retailer website

b. Take aways

26

Key take-aways

The internet plays an important role for women‘s fashion

Online sales fashion market is growing with double digits

• Online fashion market more than doubled in the last three years. Decline especially in women’s

en men’s upper wear.

• Concentration in the online fashion market far bigger than in the bricks market. Top 5 retailers take

more than 40% of the market, in the bricks market this only 22%

The majority is purchased offline with lots of online research

• 13% of planned purchases for women’s upperwear are made online. Online revenues for fashion

have doubled since 2008

• 63% of all purchases are preceded by online research, for online purchases this is still 58%

Consumers’ journey is diverse and intense

• The average journey takes 13 days and involves 6 actions

• For online purchases the number of action is higher (8) but the length of the journey is shorter

(10 days).

• Search engines are used in 24% of the journeys, mainly with branded and hybrid search terms.

• Offline sources are used for 70% and mostly entails visiting stores and reading circulars

27

Laurent de GroofManaging consultant

Tel: +31-(0)162-384 363 E-mail: [email protected]

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