The IQONIC issue
Online fashion-zine fashion156.com launched The IQONIC Issue in collaboration with fashion e-platform IQONS.com. The issue is dedicated to young and upcoming fashion designers who are members of the IQONS.com community. Fashion156.com selected the most emerging new talent from all over the world and features their creations on its daily updated blog.
Global interaction is expanding and so its impact on the fashion industry. With The IQONIC Issue, fashion156.com wants to support the most innovative creatives of today and give them a chance to showcase their work to a worldwide audience.
Encouraging future designers, stylists, models, photographers, writers and illustrators, the Ones-To-Watch can use the e-zine to move up to the next level. With sites like IQONS and Fashion156 made by and for people working in fashion, the fashion world is catching up with sites with online communities.
www.fashion156.com
www.iqons.com
21 August 2007
Oh so you?
A soon to be launched website aims to integrate shopping with social networking. Think Facebook meets Net-a-porter. Internet entrepreneur Marc Worth, founder of the online fashion bible Worth Global Style Network (WGSN), is to be spearheading the board of www.osoyou.com , making it the first fashion click-and-buy networking website.
Osoyou.com aims to provide the social shopping experience to its customers online, whereby users can make price comparisons, select items for friends, discuss trends and create wishlists. Users can further make comments on what to wear and what to buy. Brands available will include popular high street stores such as TopShop and Figleaves, and many other well-known brands.
The site, which is funded by internet investment group Bright Station Ventures, is set to launch in August. Creator Shaa Wasmund stated: “you can shop online with your friends in the same way you shop with them offline, ask your friends to rate or hate you items and give advice on cheaper alternatives to expensive designer items.”
www.osoyou.com
18 July 2007
Emap profits on target with online expansion
Emap, the publishing house responsible for magazines such as Pop and Grazia, last week stated it will deliver earnings in line with forecast for the current year despite weak sales for its UK consumer titles. The company said revenue for its consumer magazines fell 8% for the quarter to end of June with advertising down 13% due to a fall in advertising deals and the short-term effect of restructuring its sales teams for the decline.
Group revenue for the past three months was down 2% compared to the same period last year, boosted by Emap's business-to-business division, which increased revenue by 6%. "At this early stage, we remain on track to deliver against expectations for the full year," said the company ahead of its annual general meeting. The outlook for earnings is helped by the fact that the company's cost-cutting initiatives remain on track to deliver £20m of savings by 2009, analysts observed.
Emap also said it was "actively progressing" in its search to find a new chief executive following the departure of Tom Moloney in May. Mobile and online content will be one of the key areas of focus in the future for the company, which also owns the Magic FM and Kiss radio stations, as it battles a tough magazine market. Emap plans to make a further 10 of its magazine titles available on the internet in the second half of the year.
The fast-growing media market in India will also be pursued through Emap's recent purchase of a 40.1% stake in Mumbai-based Next Gen Publishing. Emap is part of the 4 Digital Group consortium, which includes Channel 4, Sky News and Virgin Radio. The group has been awarded the second UK national digital radio licence which will see Emap launching a radio station based on the content of its Closer brand.
www.emap.co.uk
16 July 2007
Brits shop online during stormy June
June may have been a slower month for retailers due to the appalling weather, but Brits continued shopping from the comfort of their own home. June is traditionally a quiet period for online retailers, with shoppers conscious of the sales season but the freak weather, claimed to be the result of global warming, has led to a 33% increase in sales on Play.com compared to the same time last year.
Over 72% of consumers claim to find shopping on the high street a stressful experience with crowds and queuing cited as the main reasons. When raining, this figure increases to 89% with most complaining that getting soaked whilst walking between shops leaves them aching and grumpy. This past month has been no exception and as torrential rain floods much of the country consumers are choosing to stay in the warmth and complete their shopping online. Stuart Rowe, spokesperson for Play.com said "every year we see a decrease in sales during the summer months as consumers spend their time in their garden, the parks or high street but this year has been a monumental exception.”
4 July 2007
Online retailers short on service
A study has revealed that UK online retailers have a long way to go to improve customer service if they are to reap the rewards of the burgeoning ecommerce market, estimated to reach £60 billion in 2012.
According to the Retail Bulletin, in a mystery shopper exercise, as many as 45% of retailers failed to reply to customer emails, with only 47% of those who did providing accurate and complete information in their response. The findings of the audit are highlighted in a report published on Thursday by customer service specialist Talisma.
Talisma contacted 62 leading UK online retailers to ask the following questions: what are your shipment charges and what credit / debit cards can I use to make a payment? The experience was assessed based on a range of customer service criteria, and each retailer awarded a score out of 100. Health and Beauty retailers provided the best customer experience, with an average score of 65.
In contrast, Clothing and Accessories retailers provided a pitiful level of service, with an average score of 45. Only 23% of emails were responded to and 31% of phone calls were unanswered. Shockingly, just 31% of retailers in this category provided accurate information via email.
“The online retail market is growing rapidly but its highly competitive nature means that customer satisfaction and loyalty will be key for retailers to generate repeat business and growth from the 25 million UK people that now shop online. Dissatisfied customers not only defect, but on average tell ten people about their bad experience,” said Jon McNerney Vice President and General Manager, International Operations, Talisma.
“Today's increasingly sophisticated, internet-savvy shoppers expect speed and efficiency. Therefore, the most successful online retailers will be the ones that respond to enquiries immediately with accurate information, treat every potential customer as an individual and interact with them through the channel of their choice,” added McNerney.
21 June 2007
Online retailers hit by cyber crime
The convenience of shopping from your own home is now under target in a growing wave of cyber crime. New figures released by 3V, in conjunction with online retail industry body IMRG, shows cyber crime is hitting the income of Britain's e-commerce sector by an estimated £580m a year, according to new report.
In a worst case scenario, the report stated almost two thirds (64%) of internet retailers have fallen victim to fraudsters, and it's costing some of them as much as 5% of their annual turnover. The '3V e-Fraud Barometer' shows that over a third (36%) of retailers have experienced a marked increase in fraudulent activity online since the introduction of 'chip and pin' on the high street.
Recent IMRG figures suggest annual online sales could surge to £78bn over the next three years, meaning by 2010 cyber fraud could cost retailers a massive £1.5bn per annum. And with both sales figures and CNP fraud cases on the rise, more than two in five (43%) retailers said the threat of being hit by fraud is becoming a bigger concern by the day.
Andrew McClelland, director of projects and marketing at IMRG, said: “The research from 3V highlights just how serious the problem of internet fraud has become for the online retail industry. While the industry is rapidly expanding it obviously provides a tempting target for fraudsters. “Retailers have told us that a range of tools and techniques provide the best defence against fraudulent activity but these should not increase costs significantly, or provide a barrier to legitimate customers.”
16 May 2007
Internet retail shopping soars
Shoppers will spend £78 billion a year online by 2010 - doubling the web's share of retail sales to 20%. This year internet shopping is expected to reach £42 billion - equivalent to the turnover of supermarket giant Tesco , Britain 's biggest retailer.
Internet sales have exploded over the past six years, growing by 3,553% between April 2000 and December 2006. During that period the monthly value of UK e-retail sales rose from £87m to £3.6 billion. Internet sales were only £800m in 2000, the year of the dotcom boom. The first-ever online transaction was a CD sale in America in August 1994. According to IMRG, the internet research group, the amount spent online by UK shoppers this year will be equivalent to the sales of nine London West Ends, Britain's biggest shopping destination. An estimated 860m parcels will be shipped to Britain's 26m internet customers this year. They will receive an average of 33 each during the year.
On average, online shoppers will splash out £1,600 each in 2007. Online sales were worth £30.2 billion in 2006, up from £19.2 billion in 2005. Sales surpassed expectations in the run-up to Christmas last year when they soared to almost £1 billion during each of the first three weeks of December. IMRG estimates that the global internet shopping marketplace will be worth £250 billion this year.
30 April 2007
TX Maxx battling online card fraud
Discount retailer TK Maxx is battling against card fraud with consumer credit card numbers obtained from its online sales. Rob Cotton, chief executive of NCC Group, an information-security specialist, said: “A lot of TK Maxx card records have been sold on these sites.” He named four sites that act as “an eBay for hackers”, allowing criminals to buy and sell stolen card details.
Cotton said the US Federal Bureau of Investigation, and other authorities, were constantly trying to shut down such sites, which are often hosted in legally “difficult” countries such as Russia, China or Indonesia. TJX, the American owner of TK Maxx, announced on Thursday that an extended security breach over many months had allowed hackers to steal 45.7m credit-card numbers at the UK clothing stores in 2003 and 2004. It is believed to be the largest theft of its kind. Cotton said that similar thefts often went undisclosed. “Security is regularly breached,” he said, “and organised crime is behind it.”
Internet advertising surges
Spending on UK internet advertising surged in 2006, overtaking newspaper ads for the first time, a report says. Online advertising expenditure jumped 41.2% to £2.01bn during the year, the report by the Internet Advertising Bureau and PricewaterhouseCoopers said. In contrast, spending on national newspaper ads grew just 0.2% to £1.9bn, taking a 10.7% share of the market. But despite online ads taking an 11.4% market shares, internet ad spending was just over half that for TV adverts.
TV advertising itself experienced a 4.7% fall in spending to £3.9bn. "With almost all expenditure on traditional media in decline, the upward momentum of the internet reflects a new era ... which is driven by high-speed broadband take-up and user-generated content," the report said. The report added that online advertising actually grabbed a record market share of 12.4% in the second half of 2006, as expenditure topped £1.098bn. As a result of such heavy spending on online adverts, the UK's online ad market share is almost double the global average of 5.8%, the report added.
"The internet is a hugely popular mass medium now, and advertisers are continuing to switch more of their budgets online to build their brands and interact with their customers," said IAB chief executive Guy Phillipson. "2006 was a tough 12 months for the advertising market as a whole, but once again the internet bucked the trend, recording a 41% increase in ad revenues. "With consumers now enjoying even faster broadband and installing wireless routers in their homes, the growth of online advertising in the UK is set to continue unabated," he added.
Iqons launched online
Forget myspace, youtube and msn, a new online fashion community called Iqons is about to take over the fashion world. Iqons is a free online community focusing on all things fashion and style, where users can showcase their work and network with designers, photographers, stylists, pr's, retailers, models and like-minded individuals. The site's content is created by its members and has a structure committed to providing support to new talent around the globe in partnership with established fashion leaders – icons.
Sunday Times Style fashion editor and author Col in McDowell announced forthcoming Iqons, who include Maria Luisa Poumaillou, Vivienne Westwood, Alber Elbaz and John Galliano. The Iqons will help spot emerging talent and be able to leave constructive remarks on users' profiles.
Co-founder Rafael Jimenez said: “I am delighted that fashin industry pioneers like Maria Luisa – who gave the first breaks to John Galliano and Alexander McQueen – can now spot design stars on Iqons. To have the legendary designers Westwood, Galliano and Elbaz is the best start we could have dreamed of.” The site currently has 80,000 members and is receiving 600 monthly new members, however these figures are related only to a soft launch and are expected to at least double following the official launch on Tuesday.
Two Iqons members, Romina Karamanea, a new fashion designer and Susie Bubble, an influential fashion blogger, spoke at the conference yesterday, held the private members and media club, The Hospital in London. Romina says: As I am starting out, I don't have the money to employ dedicated PR and marketing people and from Iqons I have got a stockist in Hong Kong, press reviews in several influential fashin magazines, and lots of requests from stylist who want to work with me.”
www.iqons.com
14 February 2007
Holiday online shopping boom
British consumers spent £7.66 billion online in the ten-week run-up to Christmas 2006 - between 16 October and 24 December - approximately 54% more than the £5 billion spent online during the same period in 2005, and more than double the £3.33 billion recorded in the approach to Christmas 2004, the IMRG Index reveals. Online Christmas shopping exceeded all expectations, with sales soaring close to a billion pounds a week during each of the first three weeks in December. Online sales had exceeded £3 billion in a month for the first time in November, as Britain's 25 million online shoppers reaffirmed their affinity with online Christmas shopping.
E-retail sales worth £3.6 billion were recorded for December, half a billion pounds more than IMRG's forecast of £3.1 billion. These strong online sales at the end of the year made up for a slightly soft Autumn, resulting in the sales value recorded for the whole of 2006 coming in at £30.2 billion, slightly higher than IMRG's forecast of £30 billion.
"Consumers just couldn't get enough of internet shopping at Christmas - it seems to match their mood and aspirations," commented Jo Tucker, IMRG's MD, who directs the IMRG Index programme. "Websites struggled to cope with the soaring traffic levels, stocks sold out early, and delivery companies were at full stretch dispatching the 200 million parcels ordered. Sales demand outstripped supply capacity by a significant margin, otherwise sales would have been higher still."
After a slow November, due to the unseasonably warm weather, the IMRG Clothing / Footwear / Accessories Index recorded December sales 64% higher than in 2005.
www.imrg.com
17 January 2007
Online holiday shopping up 50%
Christmas shoppers spent 50 per cent more online than last year according to the internet retailers' industry body IMRG. Hard data won't be available until mid-January, but it is believed growth will be 45 or even 50 per cent for December.
This means total spending over the 10-week run-up to Christmas would amount to £7.5bn, £500m more than IMRG was expecting. Evidence of the online shopping bonanza emerged as the high street shops slashed prices to tempt sales shoppers over the new year long weekend.
John Chapman launches collections online
British accessory designer John Chapman is to launch a new bag collection available on the company's website. The company is best known for its traditional handcrafted travel, leisure and sport bags, all manufactured and handmade in Cumbria.
Today, John Chapman continues to use the same natural materials and techniques they have employed for over 20 years, and the latest designs have been given a more contemporary look to keep up with the pace of luxury fashion accessory design and versatility of the sector.
The new collection features city and travel ranges in addition to classic country bags and accessories designed for walking, hunting and fishing. Chapman bags can be recognised for their double stitched zips, fleece padding, cotton webbing, and solid brass hardware. New colours include coral rose, pink, and green in addition to chocolate brown, grey, stone and olive – the more traditional colours. Prices start at £89 for a small handbag up to £299 for a travel size holdall.
John Chapman further offers a bespoke service to its customers. The material for each bag is reputed to be hand cut as part of the company's heritage for quality and durability.
www.chapmanbags.com
19 December 2006
La Redoute most successful European etailer
With internet sales soaring as never before, La Redoute has come out on top as the leading European online clothing website considering their September traffic. Amongst the many etailers, those most popular were the clothing sites with the most hits in Europe in September, according to data from comScore Networks Inc. Traffic to clothing and accessories websites was up 3% for the month. The category winner was La Redoute, which logged a record 7.5 million visitors, unchanged from the previous month; followed by Neckermann.de, up 13% with 6.2 million visitors; Quelle.de, up 19% with 6 million visitors and 3 Suisses, up 44% with 2.9 million visitors for September.
Last month, Google, Microsoft and Yahoo sites overall retained their ranking from the previous month as the most-visited properties among European Internet users. Google Sites had 160.8 million visitors, Microsoft had 146.1 million and Yahoo 11 million visitors in September. EBay ranked number four among the most-visited sites for the month with 90.1 million visitors, with Amazon trailing with 42.7 million visitors for the month ranked seventh, trailing Time Warner Network and Wikipedia sites.
www.laredoute.com
3 November 20006
Hattyandmoo.com online store launch
Online store hattyandmoo.com recently launched selling a fashionable mix of footwear, handbags and accessories from designers such as Beatrix Ong and Johnny Loves Rosie. In association with the worlds leading fashion houses and designers, hattyandmoo.com hand selected all the footwear and accessories regardless of influence from style, price, design or label. Of course, all these factors have been taken into consideration but the integrity of the site is about beautiful things, not because a footballers wife is wearing them or the next fresh faced popstar or actress, and about what the company's clients can indulge, wear, enjoy and feel sexy in.
Hattyandmoo.com's aim is to create a luxurious shopping experience to immerse the shopper into. All of their products are hand packaged with the finest quality wrapping styled by the UK 's leading designers. In association with the worlds leading fashion houses and designers, the company hand selects all their footwear and accessories regardless of influence from style, price, design or label.
www.hattyandmoo.com
1 November 2006
Victoria 's fashion to launch online
Victoria Beckham is going global with her latest fashion range by launching her own website. The former Spice Girl singer has also recently completed her book, “That Extra Half An Inch”, which promises to divulge tips for successful styling and is due for release on October 30. The website will go live on the same day, and promises to reveal a series of ‘webisodes' marking the brand's fashion developments.
The website, www.dvbstyle.com, is expected to be very successful amongst Victoria Beckham's followers. Beckham is a fashion icon with both celebrities and young woman imitating her style, much to the dismay of many a fashion editor. Currently Beckham's products are not widely available, her bag range can only be bought in Japan . But now her new collection, including jeans, sunglasses and shoes will be just a click away for her fashion followers.
The 32-year-old is taking a leading role in designing the website which is expected to launch in January. It is intended to tie in with her first DVB denim collection since she split from the Rock and Republic label. A source told The Mirror: " Victoria is the mastermind behind this and is calling all the shots. She's working closely with the design team on setting it all up and is relishing getting her teeth into it."
www.dvbstyle.com
25 October 2006
Internet marketing gains momentum
Internet marketing spend is reaching record highs, while traditional advertising and sales promotion budgets are being slashed across the board.Growth of Internet marketing continues, with 30% of companies reporting an increase to budgets against a 6% of those reporting a decrease for the second quarter of this year. The report from the of Practitioners in Advertising found that the proportion of companies allocating more than 10% of spend to Internet marketing rose to a record high of over 17%, while the proportion of companies allocating no spend to Internet budgets fell to a record low of 11%.
According to the survey the channel only accounts for 4% of marketers' total spend, but a minimum of 26% of consumers' media time is now spent in front of a computer screen, indicating massive potential for more growth.
The report also shows strong signs that budget cuts for traditional advertising and sales promotions are beginning to ease, as downward revisions are the smallest since the spiral began in Q2 of 2005, and are considerably below reductions highlighted in the previous two quarters. Wayne Arnold, Chairman of IPA Digital said: "The latest Bellwether survey continues to confirm that Internet advertising is rapidly becoming an integral part of any marketer's communication mix."
Online sales to surpass EUR100 billion
New research has found that 100 million European online shoppers will spend an average of €1000 each, and drive online retail past the €100 billion mark. Online retail sales in Europe will more than double in the next five years, to €263 billion in 2011, as the number of online shoppers grow to 174 million. Fueled by improved supply and aided by comparison shopping sites, a more confident online shopper will increase his average yearly Net retail spending to €1,500.
In the UK, Net consumers will outspend even their US counterparts online. The winning Net purchase categories are travel, clothes, groceries, and consumer electronics, all above the €10 billion per year mark. Online Europeans learned to shop online at sites like Amazon.com and Expedia.com for CDs, books, and airline tickets – products that don’t necessarily offer the great high-street shopping experience that shoes do. But the more experienced online shoppers keep expanding their Net purchase categories.
As per the findings, the UK continues to head up the European league of online spenders, as forecast by Forrester, followed by Germany. The average UK online shopper will spend €1,744 online in 2006 and €2,410 in 2011, driving UK eCommerce from €43 billion in 2006 to €76 billion in 2011, 29 percent of total European Net retail.
The average German online consumer will almost double his online purchases, from €786 in 2006 to €1,441 in 2011 – almost half of what UK Net consumers spend online. The sheer scale of shoppers – 43 million in 2011, a quarter of all online European shoppers – ensures Germany’s strong second place on Europe's eCommerce map.
13 July 2006
e-Marketing will stagnate without education
Online marketing is being let down by a lack of education, with e-marketers not being given the backup they need to take advantage of digital technologies, according to research from Coremetrics. 71 per cent of marketers feel that traditional education methods did not prepare them for today’s information led organisations, said the survey from the web analytics specialist.
The study pinpointed certain areas where marketers felt they lacked information. In particular, over half wanted to improve their analysis and measurement skills, while 42 per cent wanted to strengthen their search engine marketing techniques. Elsewhere, they raised concerns about skills, with a quarter feeling they need to improve their information architecture and 42 per cent yearning for a greater understanding of user behaviour and habits.
“With an internet presence taken for granted nowadays, online tools, such as search engine optimisation and visitor online behaviour, are a critical business function,” said Joe Davis, CEO, Coremetrics. “In order to retain their competitive edge, companies must make the most of online strategies, concentrating on precision marketing and making the most of targeted messages.” “Unless we bridge these critical skills gaps, corporate marketing techniques will remain fundamentally flawed,”
27 June 2006
Béubé opens online store
Fashion label Bérube has launched its brand new online boutique this month. Having gone live a mere three weeks ago, the site has already enjoyed enthusiastic reactions from both press and consumers. The boutique currently offers every piece from the Spring/Summer 06 collection, some of which have featured in magazines like Elle and Harpers Bazaar and papers like The Times. The online store even offers a made-to-order service. Bestsellers from the 1920s leisurewear-inspired collection include the Carnation jacket, the Orchid bag in cream leather and the Gloriosa jersey top. Canadian creator Julie Bérubé focuses sheer fabrics, soft hues and subtle detailing. Having already participated in London Fashion Week for the third time, the now London-based designer has a reputation for innovative, elegant designs that merge French grace with North American street styling and English eccentricity.
www.berubeboutique.com
27 June 2006
Marni launches online store
Marni is set to open its first online store this autumn. It is collaborating with e-tailer Yoox to realize this goal. The two companies have been working together for a number of years, as Yoox sells Marni on its site. According to terms of the new agreement, Marni will have its own website, marni.com.
“We feel it is time to reach new customers,” Marni chief executive Gianni Castiglioni told WWD. “This is the future, to me.” His decision was inspired by his daughter Carolina, who shops online regularly. Keeping the business in the family (Castiglioni is married to Marni designer Consuelo Castiglioni), Carolina will be in charge of the web store. It will be created by Yoox to resemble Marni stores in look and feel, with the clothing hanging from architectural sculptures in the middle of brick-and-mortar stores. The online store will debut in August or September with items from the fall 2006 collection. Yoox will ship purchases to Europe and the US, and might eventually add an online store for Japan.
Castiglioni hopes the online store will eventually do as much business as Marni’s bigger stores in Paris and Milan, as much as $10 million a year. “But we have to test it first,” he said. Meanwhile, Yoox and Marni have entered into the agreement as partners, sharing the costs and the profits. It is Yoox’s first such deal to operate a freestanding site for a fashion label, although the high-fashion concept store – which has call centres in Tokyo and Canada and distribution centres in Europe, the US and Japan – plans to announce a similar agreement by year’s end.
www.marni.com
www.yoox.com
22 June 2006
Internet buyers not getting the best deal
Many internet firms in Europe are not treating customers fairly, according to a report from EU consumer bodies including the UK's Citizens Advice. Late or non-delivery of items and defective goods were the most common complaints against internet traders. Europe-wide consumer group European Consumer Centres (ECC) received 3,775 complaints about internet sales in 2005, a 74% rise on the previous year. One of the biggest problems was the poor handling of complaints.
The report said that when customers had a problem with a delivery or a defective item bought online they often found it hard to contact the seller and get redress. Problems were most acute when consumers bought items from internet auction sites or from retailers based abroad.
The ECC was set up to resolve problems related to goods and services bought cross-border. Citizens Advice operates the UK office of the ECC. Ruth Bamford, the Citizens Advice ECC director, called for tougher consumer laws to enable consumers to obtain redress.
20 June 2006
Asos.com to launch online catwalks
Online fashion and celebrity retailer asos.com is pioneering its fashion offer by launching a catwalk on its website. The fashion and beauty site is the first UK online retailer to feature online fashion catwalks of models wearing Asos products. The clips run on a loop and include a pause function that lets customers view garments from different angles. They also zoom in on product to show details and texture.
Some 100 womenswear garments and accessories will feature in the clips by the end of the week and the full Asos fashion range will be added by the end of July. The catwalk clips will require a downloadable Flash plug-in and will sit alongside the traditional still model shots already available for each product on the website. A teaser email will be sent to Asos' 800,000-strong mailing list this week and a step-by-step guide will also feature on the website. Asos.com further offers world cup merchandise – aptly titled World Cup fever – as well as beauty, fashion and accessories for men and women.
Spending shifts from High Street to internet
It is estimated that by 2010, UK consumers will be spending £18.5 billion a year on the internet that otherwise would have been spent on the high street, according to research by leading global payments system PayPal and Datamonitor.
This is the first time that the shift from high street to internet has been calculated and will make shocking reading for UK retailers. By 2010, the internet will account for 6% of all consumer spending on goods and services. PayPal also predicts there will be nearly 25 million online shoppers in the UK by this stage: a rise of 10 million in the next five years. It expects that each shopper will spend an average of £48 per online transaction.
The ability to shop around, compare prices, and ultimately order purchases from the comfort of our own homes will contribute to consumer spending online rising skywards. The most lucrative online shopping sectors in 2010 are set to be food and grocery which will account for almost 30% of the total online retail market, an estimated £6,248 million and a rise of 235% on 2005 figures. The clothing and footwear category will be worth £2,274 million, an increase of 160% on today. Online sales of electrical goods will grow substantially and this market will account for £4,602 million of spending (an increase of 136%). This market is one where substantial sums are likely to move away from the high street. Geoff Iddison, chief executive of PayPal Europe comments: “Over the past few years we’ve seen the internet gradually eating away at the high street. By 2010, however, we expect substantial sums that would have been spent on the high street to have moved online.
“Our predictions are that more and more consumers will turn their backs on the high street and shopping centres in favour of the convenience of buying from home. The safety and security of online commerce has been firmly established with large numbers of shoppers. In the next five years, price and convenience will convert ever-higher numbers of people to the internet for their shopping.”
The PayPal research found that nearly half of UK adults (43%) claim price is the overriding factor pushing them to shop online, something that is particularly true for electrical (49%) and music purchases (53%). With over two-thirds (66%) of us likely to have access to broadband at home, shopping online in 2010 will never have been quicker and easier.
15 May 2006
Asos appoints new board members
Online fashion retailer Asos has appointed Robert Bready to retail director and board member. In addition, Peter Williams, former chief executive of Selfridges, will become a non-executive director. “They have a different approach (to retail) – they are new, young, different and are pure internet operators,” said Williams, who left Selfridges in 2004. He told the FT that he could assist with “the corporate governance and the process of running a public company”.
Meanwhile, Bready joined Asos from Arcadia in July. At Arcadia he was head of merchandising for Miss Selfridge. “Rob has been instrumental in building our retail team and Peter is a highly respected retailer and financier,” said Asos chief executive, Nick Robertson. Asos sells low-priced, celebrity-inspired fashion.
www.asos.com
7 April 2006
Web loses millions in sales due to slow processing
UK retailers lost an estimated £84 million of online sales in the busiest quarter of 2005 due to unreliable websites, according to research conducted by leading retail analyst, Verdict Consulting. As was published by Retail Bulletin, the results are based on conservative growth estimates of the online sales channel, this figure looks set to rise to at least £226 million in lost sales during 2006. "A retailer is judged on all aspects of interaction – so a shoddy, slow or unavailable website is going to cut much deeper than just the lost sale, according to Mark Collyer - market development director at Xansa.
Xansa and Akamai commissioned the research which questioned 52 leading UK retailers to establish the cost of ineffective websites over Christmas 2005. The results showed that downtime and unavailable or slow websites lead to a loss of customer sales amounting to over £84 million. Commenting on these findings Mark Collyer, market development director at Xansa, said: “This research shows that, despite increasing numbers of shoppers using the online channel, retailers are failing to support and integrate this important part of the retail experience. Whilst some retailers have addressed outdated approaches to infrastructure, website development, service management and back-office integration, others continue to plaster over the cracks and hope that the problem will go away. As an increasing number of shoppers turn to the online channel, this situation will only get worse for retailers who fail to act now.”
Perhaps most likely to contribute to shopper frustration is the fact that 17 per cent of retailers faced some form of website downtime, with nearly 10 per cent of those experiencing several hours of outage. What's more, 15 per cent of those surveyed admitted to slow site performance over the festive season. Seven per cent of these faced issues for up to a week. Malcolm Rowe, retail sales director at Akamai Northern Europe, said: "The provisioning of bandwidth and support infrastructure is critical to ensuring that retail websites provide optimum performance at all times. The fact that so many of the retailers still face website performance and downtime issues is a real wake-up call that these issues must be addressed."
“If the thought of losing £226 million in sales isn't shocking enough, retailers must realise that lost sales can be just the tip of the iceberg,” added Collyer. “There are many factors that affect your perception of a brand and can influence buying decisions across channels. A retailer is judged on all aspects of interaction – so a shoddy, slow or unavailable website is going to cut much deeper than just the lost sale.”
27 March 2006
Ebay the new charity shop
Charity begins at home, as they say, and nowadays is only a click away. Hundreds of charity shops are turning to internet auctuion sites, such as Ebay, to offset the reduction in sales and donations casued by people buying and selling online. Many good causes have experienced a drop in the quality and quantity of clothing and goods donated to their high street stroes as people switch to the web to dispose of unwated goods. Now to fight back the charities are launching “online shops” to win a slice of the booming internet market.
Lekha Klouda, the director of the Association of Charity shops, which represents more than 6,000 countrywide, recently stated: “There is no doubt that Ebay entering the mainstream is having an effect on charity shops but it is both a threat and an opportunity.The treat is obviously that people think they can sell things online and get the money fairly easily. The opportunity is that we can maximise our earnings by getting a worldwide market for our more valuable and unusual items.” Klouda further stated that this by no means meant the end of the charity shop as we know it, rather that is must adapt and become more specialised in niche markets and selling general items online.
19 March 2006
Online retail challenges traditional retailers
Online retailers are gaining ground and are catching up to department stores. Richard Hyman, chairman of Verdict Research, the leading retail consultancy, told Cantos, the online PR service, that figures show that online shopping is now almost equal in value to that of department store sales. He also said that traditional department stores will have to adapt to the new retail environment. Online retail grew approximately 30 percent last year, according to Verdict. The company believes that growth will slow but continue as more people acquire high-speed internet connections and make increasingly more internet purchases.
Hyman pointed out that online spending did not signify a new source of income for retailers. He said that the “key thing about online shopping is that the majority of sales made online are sales that would have been made in mainstream retailing. It's helping to make life far more competitive in the retail sector than it was before because most of the people in the retail sector are now having to add an additional channel…the internet.”
Hyman argues that “pure players”, whether they be department stores or etailers, have suffered. “I think the truth is that most pure players have not been successful,” he said. “Most of them have not made money and an awful lot of them have gone to the wall.” The message is clear. To be able to compete in today's market, one needs to offer both physical and online retail capabilities.
Internet a threat to luxury brands?
Some luxury brands are worried about the effect of the consumer's ability to acquire ‘vintage' finds on internet with the click of a button. With internet purchases often limited to affordable or discount finds, the idea that people can buy luxury items online without fear of being duped threatens luxury companies that have always differentiated themselves by offering guaranteed quality for more.
“They seem to have the idea that a luxury brand shouldn't be doing this,” Michael Sheldon, chairman of Potero, told the Financial Times. Portero is known as the “Ebay for the affluent”, which trades luxury brands through Ebay. The company was founded in 2004, “on the belief that buying luxury online should be effortless and without risk”. Consumers can purchase a Hermés Birkin bag or a Chanel purse online, with the guarantee that they are buying the authentic product. Some companies have expressed their disapproval of online trading of luxury brands. “We prefer our products to be sold in image-enhancing environments only,” Lew Frankfort, president of Coach, told the FT. “We don't consider these sites appropriate for the brand.”
However, the internet allows consumers to dispose of their purchases once they tire of them, which is happening increasingly frequently in the ever changing world of fashion. Affluent consumers are always looking for the newest and the best. The internet allows them to trade belongings on a secondary market and continually change their assets. According to Milton Pedraza, head of the Luxury Institute, wealthy baby boomers “want to forgo the burden of ownership”. “They would rather leave their heirs a portfolio of investments than a lot of possessions,” he told the FT.
Greg Furman of the Luxury Marketing Council does warn that trading on the secondary market needs to be “meticulously controlled”, because of the danger of counterfeits. There are, however, companies that applaud the existence of a secondary market. Last year, Potero signed a deal with watch retailer Tourneau to authenticate watches. “We believe (Potero) is legitimising the secondary market of online auctions for luxury goods,” Howard Levitt, president of Tourneau told the FT. “We recognize this is the future for buying and selling pre-owned luxury goods online and a way for us to extend our brand to the secondary marketplace.”
Luxury goods group PPR's chief executive Francois-Henri Pinault shares this opinion, believing that a secondary market can educate the consumer about the product, provided it is authentic. “It would be better to have used products at a good price than fakes,” he said. However, shops are not in danger of losing clientele as many consumers want what's new, and a secondary market usually offers predominantly old lines.
www.potero.com
8 February 2006