etail report 2013 - emap

Etail Report2013

IN ASSOCIATION WITH

CONTENTS

Even though we have titled this report the Etail Report, Drapers is aware that ecommerce goes beyond solely generating revenue from a transactional website. At the accompanying round table for this report, attendees were unable to discuss ecommerce in isolation without considering its effect on complementary channels, such as bricks-and-mortar stores and print catalogues.

The survey highlights how shoppers are switching between channels, as different demographics take diverse paths to the final purchase, while tablets and mobile continue to shape shoppers’ journeys from browsing to buying. While some consumers prefer the online experience to the store, many use the web to check what’s new and use their mobile while in stores too.

Your business may already be tracking customers’ journeys and you may have segmented profiles of how individuals shop. But then there are also potential new consumers to consider. Drapers has commissioned this report into shoppers’ attitudes to buying fashion online for the third year running, to offer some further insight to help direct ecommerce strategies.

There are still barriers that retailers need to overcome to allow consumers to shop more online. Many shoppers still have reservations about buying online without trying items on and the resulting aggravation of the return if the fit or look is not right, while customer expectations greatly differ when it comes to fulfilment depending on the consumer’s age.

We hope the report assists you in overcoming these challenges and helps present your offer in the most consumer friendly way while factoring in the evolving role etail plays in consumers’ shopping journeys today.Drapers deputy projects editor / [email protected]

Drapers / eTAil RePORT _ 2

‘The survey highlights how different demographics take diverse paths to the final purchase'

Welcome

David Brooks03 Sponsor foreword Comment from Summit chief executive Hedley Aylott04 Executive summary The impact of ecommerce on shoppers' journeys06 Consumer research Results from our survey of 2,000 UK adults, segmented by gender, age and income

Sponsor

A sk today’s customer what multichannel retail is and they’d probably look at you quizzically and say they just shop. The last decade’s shopping revolution is now the norm for us all. Shopping online no longer exists. it is just shopping. Offline,

online, desktop or mobile, the customer journey is rapidly changing, and providing retailers with unprecedented opportunities to serve shoppers. Yet, never has it been so important to meet customer expectations.

Summit is passionate about empowering retailers to do this and this year’s Drapers Etail Report is packed full of useful insights. We believe it is essential you understand your customers and how they are responding to the ever-changing multichannel environment.

This report demonstrates the swift uptake of browsing and researching via mobile devices and provides a snapshot

of a marketplace where consumers integrate shopping into their lifestyle. Be it lengthy browsing sessions from a desktop, or quick product searches from their mobiles – customers are finding it increasingly easier to browse and shop online than in store.

And as many trends and gut instincts this report confirms, it throws up just as many questions for retailers. How should you distribute your budget across the channels and how do you attribute sales to those channels?

At Summit, we’ve been working alongside retailers for more than 13 years helping them transform their businesses. We’re never standing still, we’re helping our clients learn as fast as the retail world is changing and sharing our discoveries with clients to ensure they sell more than their competitors. Chief executive, Summit

ForeWord

Hedley Aylott


Sponsor

drapers’ third Etail Report reveals how ecommerce has evolved to become truly embedded in the shopping journey, from browsing to buying, no matter where the final transaction takes place.

Retailers’ websites are vital in the buying journey whether shoppers purchase clothes and accessories online or in store. Most consumers begin their shopping research by visiting their favourite retailers’ websites (43%), compared with 24% who start in their favourite retailers’ store, proving that loyalty is still a deciding factor no matter the channel. Only 16% go to their local shopping centre or high street to begin their search.

RETailERS aRE gaiNiNg mORE TRaCTiON ONliNE compared with individual brands. For example, shoppers who search for items on search engines such as Google more commonly look for retailer names (41%) than brand names (23%).

Once shoppers arrive at retailers’ websites, it is important for the site to offer a streamlined experience, as consumers mostly use fashion websites to check prices (47%) and search for specific clothes and accessories (39%). The website also plays a key role even if shoppers are looking to buy in store, as 27% use websites to see what is new in stores.

Retailers curating engaging content on their sites, such as Net-a-Porter, are especially applicable for women, who are twice as likely to go to the retailer’s website to see what’s new in, read reviews of clothes and look for trend ideas and inspiration. Social media and email also have a part to play in the shopping journey, as 16% of consumers have bought online from the retailer who ran the activity.

mOST CONSumERS buy faShiON ONliNE at least once a month (35%) and this figure should rise as tech savvy teenagers become adult shoppers. This point is reaffirmed by the adult consumers surveyed – our report shows the younger the shopper is, the more likely they are to purchase items online, with 31% of over 55-year-olds not buying online, compared with 9% of 18 to 24-year-olds.

Yet consumers of all ages are shopping online because they prefer the channel to stores. The majority of consumers purchase fashion online as it is more convenient (52%) and easier to browse (48%) than in store, though price continues to be a factor (47%), especially for those earning less than £10,000 and even for those earning between £70,000 and £99,000.

Most consumers buy as much fashion online as they can (37%), but the most cited reason for not buying more was the need to try on purchases to see how they look (29%), followed by the difficulty in finding the right size and fit online (27%). For the over-55s, both factors were less of a concern, as 20% like to order clothes and try them on at home.

Products where sizing is less vital were more likely to be bought online – casualwear was the most popular category bought online at 68%, compared with formalwear and partywear at about 20% each. As sizing of footwear is more consistent, it is also a popular choice of product to buy online at 46%.

ThE gROwTh Of SmaRTphONES haS pushed mobile optimisation up the agenda for fashion retailers. No surprise then that 39% of consumers buy and research fashion online via a mobile, while 22% use their phone to make purchases, with men more likely than women to use their phone to buy fashion online. Yet, mobile remains an acquisition tool for many retailers, as 40% of consumers carry out research on their device, but make the final purchase elsewhere.

Regardless of the smartphone’s exact role in the shopping journey, it is more important for retailers with younger consumers to offer mobile options, compared with those targeting an older consumer. The majority of 18 to 34-year-olds look at fashion on their mobile phone, yet in other age groups it is a minority.

Younger consumers are also embracing viewing fashion on tablets more, as 25 to 34-year-olds are twice as likely to use the device to look at fashion retailers’ websites as the 45 to 54 age group (34% compared with 17%). Following the device becoming the gift du jour last Christmas, the survey found that 62% of shoppers have access to the device and


executive summAry

u

Sponsor

that 23% of overall consumers now look at fashion retailers’ websites using a tablet.

Despite the incredible uptake of tablets, 77% of consumers prefer shopping online with a laptop or PC, versus the 11% and 7% respectively who prefer tablets and mobiles. However, a preference for using tablets is highest (20%) for those that earn between £55,000 and £69,000.

whEThER fREE dElivERy dRivES SalES or whether it is now just what many customers expect, 70% of consumers would buy more fashion online if there was free delivery, while 58% of consumers indicated free returns as an incentive.

10% of shoppers do not view 90-minute delivery as an incentive. While the figure is up on last year, shoppers value price over speed and convenience. However, the service held more attraction to younger consumers – 19% of 18 to 24-year-olds were interested, compared with 8% of 45 to 54-year-olds.

in contrast, the success of multichannel retailers Next and John lewis fulfilling a physical destination appears to be of greater interest to consumers, as 75% of shoppers have used click-and-collect. As a result, pure-play retailers are offering fulfilment services that provide a physical location, such as Collect +, especially since 15% of consumers prefer to return to a local collection point/convenience store and 30% to a store.

There is plenty of incentive for retailers to offer consumers store stock information online, despite the difficulty of achieving this, as the majority of consumers are interested in the service (61%). Yet, 43% are only interested if the information is up to date, with this figure rising the more consumers earn, peaking at 58%for those earning between £100,000 and £149,000.

executive summAry (continued) & methodology


mEThOdOlOgyDrapers has created a research report to inform readers what consumers think about browsing and buying fashion online. We asked a selection of the same questions as last year for comparative purposes, as well as some new ones to reflect the proliferation of tablet computers and the ongoing challenge of basket abandonment.

ThE RESEaRCh ShOuld bE aS appliCablE to independent retailers looking to improve their ecommerce operation, who can’t afford to run consumer research themselves, as multiples with established ecommerce and multichannel operations. The questions have been created to complement the analytics that retailers run on their own sites, in a bid to explain some of the consumer behaviour trends.

Drapers commissioned OnePoll Research to carry out the survey, which took place in February 2013. The 2,000 respondents provide a representative split of UK adults and the results have also been segmented by gender, age and income.

Sponsor


FreQuency

u

KEy● Once a week or more● Once every two weeks● Once a month● Once every three months● Once every six months● Once a year● Less than once a year● I don't buy fashion online

Broken down by household income

Broken down by gender Broken down by age range

Overview

F M F M F M F M F M F M F M F M

5

10

15

20

25

£100,000-£149,999£70,000-£99,999£55,000-£69,999£35,000-£54,999£17,000-£34,999£10,000-£16,999£0-£9,999 £150,000+

10

20

30

40

18-24 25-34 35-44 45-54 55+

5

10

15

20

25

30

35

How often do you buy fashion online?

3.8%6.9%

24.1%22.6%

12.5%4.7%5.8%

19.6%


type

u

KEy● Value/budget● Fast fashion● Workwear● Casualwear● Partywear● Formalwear● Sportswear● Footwear● Lingerie/underwear● Kidswear● Other



Overview

F M F M F M F M F M F M F M F M F M F M F M

10

20

30

40

50

60

70

20

40

60

80

£100,000-£149,999£70,000-£99,999£55,000-£69,999£35,000-£54,999£17,000-£34,999£10,000-£16,999£0-£9,999 £150,000+

18-24 25-34 35-44 45-54 55+

10

20

30

40

50

60

70

What type of fashion do you buy online?

22.3%12.9%

23.9%68%

19.7%

29.3%20.9%

46.5%26.4%

19.6%3.1%


reAson

u

KEy● Better choice than in store● More convenient than in store● Easier to browse online than in store● Price● I like to research products online● I like to try on purchases at home● Other



Overview


10

20

30

40

50

10

20

30

40

50

60

£100,000-£149,999£70,000-£99,999£55,000-£69,999£35,000-£54,999£17,000-£34,999£10,000-£16,999£0-£9,999 £150,000+

18-24 25-34 35-44 45-54 55+

10

20

30

40

50

Why do you buy fashion online?

35.4%

51.9%48%47.4%

24.4%14%

5%


chAllenges

u

KEy● Nothing, I do as much as I can online● I need to try on purchases to see how they look● Getting the right size and fit online is too difficult● The delivery process is too slow or expensive when

making last-minute purchases● The returns process is inconvenient● I prefer to browse and shop in store● Other



Overview

F MF MF MF MF MF MF M

5

10

15

20

25

30

35

10

20

30

40

50

60

£100,000-£149,999£70,000-£99,999£55,000-£69,999£35,000-£54,999£17,000-£34,999£10,000-£16,999£0-£9,999 £150,000+

18-24 25-34 35-44 45-54 55+

10

20

30

40

What prevents you from buying more fashion online?

37%

29%

27.4%15.5%

19.6%

12.5%4.4%


chAllenges

u

KEy● I fill multiple baskets to compare price● The payment method is too cumbersome● There aren't enough delivery methods● There isn't free delivery● I don't do this● Other



Overview

F MF MF MF MF MF M

10

20

30

40

10

20

30

40

50

60

£100,000-£149,999£70,000-£99,999£55,000-£69,999£35,000-£54,999£17,000-£34,999£10,000-£16,999£0-£9,999 £150,000+

18-24 25-34 35-44 45-54 55+

10

20

30

40

What are your reasons for abandoning a basket of items at the online checkout?

9.5%

20.6%

16%

41.9%

32.9%

3.5%


usAge

u

KEy● For trend ideas and inspiration● To search for specific clothes/accessories● To check what stock is in my local store● To read clothes reviews● To watch catwalk videos● To see what's new in● To check prices● To find store locations and opening times● Other● I do not use them



Overview

F MF MF MF MF MF MF MF MF MF M

10

20

30

40

50

10

20

30

40

£100,000-£149,999£70,000-£99,999£55,000-£69,999£35,000-£54,999£17,000-£34,999£10,000-£16,999£0-£9,999 £150,000+

18-24 25-34 35-44 45-54 55+

10

20

30

40

What do you use fashion retailers' websites for whether you make a purchase or not?

19.8%39.2%

23.4%17.7%

4.6%27.2%

47%

2.1%21.1%

18.1%


reseArch

u

KEy● On Google or another search engine● On favourite retailers' websites● In favourite retailers' stores● My local shopping centre or high street where I visit lots of shops● On social media sites such as Facebook and Pinterest● Fashion magazines' websites● Other● I do not conduct research beforehand



Overview


10

20

30

40

50

10

20

30

40

50

£100,000-£149,999£70,000-£99,999£55,000-£69,999£35,000-£54,999£17,000-£34,999£10,000-£16,999£0-£9,999 £150,000+

18-24 25-34 35-44 45-54 55+

10

20

30

40

Where does your research begin when buying fashion online and in stores?

28.7%42.7%

24.3%16.1%

4.1%5.1%

2.4%19.4%


seArching

u

KEy● I don't search for fashion on internet search engines● Retailer names eg, Next, Topshop, Debenhams● Brand names eg, Levi's, Calvin Klein, Diesel, Bench, Fred Perry● Basic product type eg, trousers, skirts, knee-high boots● Detailed product type eg, black skinny jeans, red pencil skirts,

men's cashmere jumpers● Celebrity trends eg, Kate Middleton's dress, Rihanna Boy London skirt● Other



Overview

F MF MF MF MF MF MF M

10

20

30

40

50

10

20

30

40

£100,000-£149,999£70,000-£99,999£55,000-£69,999£35,000-£54,999£17,000-£34,999£10,000-£16,999£0-£9,999 £150,000+

18-24 25-34 35-44 45-54 55+

10

20

30

40

50

What search terms do you use when looking for fashion items on Google or other search engines?

31%41.1%

23.2%20%

12.6%2.8%

5.5%


opinion

u

KEy● Yes, on Facebook● Yes, on Twitter● Yes, on Pinterest● No● No, I am not on social media● Other



Overview

F MF MF MF MF MF M

10

20

30

40

50

60

70

20

40

60

80

£100,000-£149,999£70,000-£99,999£55,000-£69,999£35,000-£54,999£17,000-£34,999£10,000-£16,999£0-£9,999 £150,000+

18-24 25-34 35-44 45-54 55+

10

20

30

40

50

60

70

Do you seek advice from friends through social media before making fashion purchases online or offline?

8.8%

5.5%

4.2%

65.5%

21%

0.2%


mArketing

u

KEy● Buy online from the retailer that sent the email or posted on the social

media site● Buy in store from the retailer that sent the email or posted on the social

media site● Buy online or elsewhere a similar style at another fashion retailer● Research elsewhere a similar style● Neither cause me to take any action● I have not received this type of information



Overview

F MF MF MF MF MF M

10

20

30

40

10

20

30

40

50

£100,000-£149,999£70,000-£99,999£55,000-£69,999£35,000-£54,999£17,000-£34,999£10,000-£16,999£0-£9,999 £150,000+

18-24 25-34 35-44 45-54 55+

10

20

30

40

Have emails and social media posts from fashion retailers ever driven you to do the following?

16%

11.1%

9.2%

8.8%

43.7%

22.7%


delivery

u

KEy● Free delivery● Next-day delivery● Two-hour delivery time slot● Weekend delivery● Same-day delivery● Delivery to a local store for collection● Delivery to a safe, local collection point/collection locker● Delivery within 90 minutes of ordering● Yearly membership fee in return for unlimited free delivery all year● Free returns● Other● None – better delivery options would not make me shop more online



Overview

F MF MF MF MF MF MF MF MF MF MF MF M

10

20

30

40

50

60

70

20

40

60

80

£100,000-£149,999£70,000-£99,999£55,000-£69,999£35,000-£54,999£17,000-£34,999£10,000-£16,999£0-£9,999 £150,000+

18-24 25-34 35-44 45-54 55+

10

20

30

40

50

60

70

What delivery options would encourage you to buy more fashion online?

70.1%29.2%

21.3%21.3%

18.5%22.3%

13.6%10.1%

5.7%58.4%

0.7%6.6%


returns

u

KEy● Via Royal Mail● Via a courier● Return to a store● Return to a local collection point/convenience store ie, Collect+ service



Overview

F MF MF MF M

5

10

15

20

25

30

10

20

30

40

£100,000-£149,999£70,000-£99,999£55,000-£69,999£35,000-£54,999£17,000-£34,999£10,000-£16,999£0-£9,999 £150,000+

18-24 25-34 35-44 45-54 55+

10

20

30

40

Which is your preferred method of returning fashion items purchased online?

30.1%

24.7%

30.4%

14.8%


returns

u

KEy● Increased ability to preview the quality of clothes● Increased ability to preview clothes on me● More accurate previewing of sizing and fit● Other● Nothing – I like to try on clothes at home and then return



Overview

F MF MF MF MF M

10

20

30

40

50

10

20

30

40

50

60

70

£100,000-£149,999£70,000-£99,999£55,000-£69,999£35,000-£54,999£17,000-£34,999£10,000-£16,999£0-£9,999 £150,000+

18-24 25-34 35-44 45-54 55+

10

20

30

40

50

60

70

What would help you avoid the returns process?

29.3%

26.7%

56.7%

5.3%

15%


multichAnnel

u

KEy● How quickly it can be delivered● How conveniently it is delivered● Whether there is a store nearby● Whether I need to try the item on in store/how familiar I am with the

brand's sizing● How easy it is to return items bought online● If it is cheaper online● If I think it will only be in stock online● I do not conduct research beforehand



Overview

What is the most important factor when deciding whether to buy fashion items online or in store?

7.3%9.1%

11.1%15.7%

10.4%28.1%

8.6%9.7%


10

20

30

10

20

30

18-24 25-34 35-44 45-54 55+

10

20

30

£100,000-£149,999£70,000-£99,999£55,000-£69,999£35,000-£54,999£17,000-£34,999£10,000-£16,999£0-£9,999 £150,000+


multichAnnel

u

KEy● Buy online and collect in store● Reserve online and collect in store● No preference● I haven't used this service



Overview

F MF MF MF M

5

10

15

20

25

30

5

10

15

20

25

30

35

£100,000-£149,999£70,000-£99,999£55,000-£69,999£35,000-£54,999£17,000-£34,999£10,000-£16,999£0-£9,999 £150,000+

18-24 25-34 35-44 45-54 55+

5

10

15

20

25

30

Which option do you prefer when using click-and-collect services for fashion purchases?

23.1%

25.4%

26.3%

25.2%


AvAilAbility

u

KEy● Yes, but only if the information is up to date● Yes, it's helpful to know what will be available in my local store even if it's

not up to date● No, I tend to buy online when browsing fashion on retailers' sites so don't

need to know what's available in store● No, I don't browse fashion retailers' websites before going to their stores● Other



Overview

F MF MF MF MF M

10

20

30

40

10

20

30

40

50

£100,000-£149,999£70,000-£99,999£55,000-£69,999£35,000-£54,999£17,000-£34,999£10,000-£16,999£0-£9,999 £150,000+

18-24 25-34 35-44 45-54 55+

10

20

30

40

Would you like fashion retailers to tell you on their website whether they have certain items in your size available in particular stores?

43.3%

17.7%

13%

22.5%

3.5%


mobile

u

KEy● A mobile website optimised for my phone● A mobile app for my phone● I don't mind how retailer sites appear on my phone● None – I don't look at fashion retailers' websites on my mobile phone● I don't own a mobile phone



Overview

F MF MF MF MF M

10

20

30

40

50

60

10

20

30

40

50

60

£100,000-£149,999£70,000-£99,999£55,000-£69,999£35,000-£54,999£17,000-£34,999£10,000-£16,999£0-£9,999 £150,000+

18-24 25-34 35-44 45-54 55+

10

20

30

40

50

60

70

What do you prefer when looking at fashion on your mobile phone?

8.1%

12.2%

11.5%

61.3%

6.9%


mobile

u

KEy● Buying fashion online● Buying and researching fashion online● Researching fashion and then buying online

on another device or in store



Overview

F MF MF M

10

20

30

40

10

20

30

40

£100,000-£149,999£70,000-£99,999£55,000-£69,999£35,000-£54,999£17,000-£34,999£10,000-£16,999£0-£9,999 £150,000+

18-24 25-34 35-44 45-54 55+

10

20

30

40

What do you use your mobile phone for?

21.5%

38.8%

39.7%


tAblets

u

KEy● I don't use a tablet device or iPad● I look at fashion retailers' normal websites using

a tablet device● I look at fashion retailers' tablet apps/iPad apps● I don't look at fashion retailers' sites or apps on

the tablet or iPad I use



Overview

F MF MF MF M

10

20

30

40

10

20

30

40

£100,000-£149,999£70,000-£99,999£55,000-£69,999£35,000-£54,999£17,000-£34,999£10,000-£16,999£0-£9,999 £150,000+

18-24 25-34 35-44 45-54 55+

10

20

30

40

50

60

70

What do you use an iPad/tablet device for?

35.4%

23.1%

8.9%

37.9%


devices

u

KEy● Laptop/PC● Mobile phone● Tablet● No preference



Overview

F MF MF MF M

20

40

60

80

20

40

60

80

£100,000-£149,999£70,000-£99,999£55,000-£69,999£35,000-£54,999£17,000-£34,999£10,000-£16,999£0-£9,999 £150,000+

18-24 25-34 35-44 45-54 55+0

20

40

60

80

What is your preferred device to shop online with?

77.4%

7%

11.1%

4.5%


income

KEy● £0-£9,999● £10,000-£16,999● £17,000-£34,999● £35,000-£54,999● £55,000-£69,999● £70,000-£99,999● £100,000-£149,999● £150,000+


Overview


5

10

15

20

25

30

35

18-24 25-34 35-44 45-54 55+

10

20

30

40

What is your household income?

8.9%15.9%

35.8%24.3%

8.4%4.1%

1.5%1.1%

etail report 2013 - emap

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