sap - hizli deĞİŞen uluslararasi moda perakendesİ ve baŞari krİterlerİ - sap forum 2013
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Fashion Merchandising & Strategy alanlarında çalışmalarıyla tanınan, akademisyen, yazar, konuşmacı David Shaw, hızlı değişen uluslararası Fashion Retail pazarında şirketleri başarıya götürecek faktörleri, rekabet avantajı yaratacak yöntemleri paylaşacak.TRANSCRIPT
SAP FORUM İSTANBUL Gelecek Bugün
Stephen Henly
Industry Director
EMEA Consumer Industries
Fast Changing International Fashion Retailing - the key
forces and factors for success
My Apologies – sorry to not being there: I
was really looking forward to meeting you all
- Hopefully another day?
© 2013 SAP AG. All rights reserved. 3
My and others interest in the Turkish Fashion Retail
Market – Why?
•Already an important textile and garment manufacturing centre in “The
European Arena” – (I wish it were bigger!)
•Large, young and growing fashion population – with increasing
understanding and demand for fashion brands – esp. “The International
Turkish Girl” – international brand awareness
•An increasingly sophisticated and fast growing retail infrastructure
which is rapidly developing – mainly as result of internal national retailer
activity – Istanbul is 11th most internationalised retail city in the world
•Wide numerical opportunity for available for immediate and future
expansion
•Current relatively low penetration of foreign fashion retailers outside of
key Turkish cities – although this is growing exponentially
•Rising levels of urbanisation
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Turkish consumers are becoming increasingly fashion
conscious – esp.”The New International Girl” – which girl
is from what country?!
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The Facts about Turkish Retailing
- Istanbul is the eleventh most attractive
location for international retailers in Europe.
- Turkey is the seventh largest organised retail
market in Europe, with a total leasable area of
8.3 million sq m across 332 shopping Centres
- Approximately 2.6 million sq m of leasable
space is currently under construction, with
Istanbul accounting for almost half of this total.
© 2013 SAP AG. All rights reserved. 6
Some Key Facts about Turkish Retailing
- The importance of shopping centres in the market
is growing, with the likes of Forum Istanbul and
Istinye Park trading particularly well. This will be
further fuelled by the huge development pipeline,
and in particular the imminent opening of several
landmark schemes, including the Zorlu Center and
Emaar’s Boulevardi.
- Istanbul’s retail culture is still mostly dominated by
the high street, however, with Istiklal Street the
dominant mass market location on the European
side, along with Nişantaşi district, which caters for
luxury brands.
© 2013 SAP AG. All rights reserved. 7
Some Key Facts about Turkish Retailing
The huge market of approximately 13.3
million consumers in Istanbul is viewed by
many retailers as the perfect gateway to
the Middle East and Caucasus region.
Istanbul’s retail market is revolutionising
itself at great speed, with significant
quantities of modern shopping centre
stock coming online.
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Fashion Retailers planning to open in
Turkey? Many more rumoured?!
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Top clothing retailers in Europe - 2012
Top fashion & clothing retailers in Europe turnover in Europe 2012 in Billion E
Rank Retailer Turnover Headquarter
1 H&M 12.8 Sweden
2 M&S 11.5 UK
3 Inditex 11.2 Spain
4 C&A 6.8 Belgium/Germany
5 Next 4.3 UK
6 Primark 4.3 UK
7 Arcadia 3.3 UK
8 Debenhams 3.3 UK
9 Esprit 2.4 Germany
10 Benetton 1.6 Italy
© 2013 SAP AG. All rights reserved. 11
Lets now examine the
key drivers of
International Fashion
(+other) Retail change
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The Forces and Changes that are Impacting on
International Consumers
•This talk looks at some of the key macro and micro trends that
international retailers are currently starting to face
•Many of changes which will result in a sea change in the way
in which retail systems and technologies will need to be
developed, used and applied
•Some will have variable impacts in different countries and on
different types of retailer
THE ONLY THING THAT IS GUARANTEED; IS THAT THE OLD RETAIL ORDER
WILL BE FORCED INTO ADAPTION TO THE NEW GLOBAL PARADIGM
© 2013 SAP AG. All rights reserved. 13
Today’s Consumers Demand More
Modern consumers expect
everything; they want it now,
they want it cheap and want
the newest. They want a
service level that suits them -
delivered at place and in a
manner that suits them.
© 2013 SAP AG. All rights reserved. 14
1 Hyper-change in international consumer spending
patterns as the “old economic order” changes
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1 Hyper-change in international consumer spending
patterns as the “old economic order” changes
THE “SHIFTING” MIDDLE CLASS
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1 Hyper-change in international consumer spending
patterns as the “old economic order” changes
The Potential International Retail Impact?
The mass middle classes will HAVE to seek value across the entire range of
their normal purchasing. The once affluent Middle Class will undoubtedly
1.Down shop to cheaper retail formats
2.Increasingly undertake price comparison
3.Avoid shopping in poor value high cost retail formats
4.Become increasingly self-educated about which retailers deliver value
5.N.B. Governments may well become involved with national
pricing/monopolies/price cartels/price fixing
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THE EVIDENCE – Value Seeking
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THE EVIDENCE – Value Seeking - PRIMARK
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THE EVIDENCE – Value Seeking – Selfridges London, Au
Printemps - Paris
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1 Hyper-change in international consumer spending
patterns as the “old economic order” changes
The Potential International Retail Impact?
However, the WEALTHIER CUSTOMERS will still be there, but in fewer
numbers with more retailers seeking their custom – THEY WILL
INCREASINGLY SEEK
1.The New in terms of retail format
2.The Unusual and different
3.Brands with a difference
4.Better total service
5.Convenience and time saving
6.Reasons to stay loyal
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THE EVIDENCE - The Unusual - Anthropologie
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THE EVIDENCE – The New – Superdry
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THE EVIDENCE – Demand for “Hyper-service”
e.g. Savile Row - LONDON
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2 Changing shopping habits – move towards more
convenient shopping – both on-line and in store
As many Western and some Asian countries get older and less mobile –
convenience shopping will by necessity become more popular -
CUSTOMERS WILL INCREASINGLY SEEK
1.Shops that are closer to home with less or ideally no drive time
2.More home deliveries – of a wide range of goods
3.More will be purchased on-line
4.Click and collect at local pick-up points may replace conventional post
offices
5.More and simpler help from shops/staff and the associated
technologies
6.In countries that are geographically large with dispersed communities –
The Internet will make shopping available everywhere – even in rural
areas
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THE EVIDENCE – The local growth of convenience shop
chains + renaissance of local food shops
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THE EVIDENCE – The local delivery booth common in
Germany & Australia + UK demand for home delivery
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THE EVIDENCE – More older customers are now ordering
on-line + Retailers having to improve calibre of call
centres
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THE EVIDENCE – Retailers will have to invest more on in-
store consumer assistance technologies
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3 Changing shopping priority & focus – Gradual
education and change of consumers towards Healthy,
Green and Ethical Consumption
As consumers become more knowledgeable and educated
about Green & Ethical issues – due to more transparent
supply chains. IT will undoubtedly increasingly need to help
the control measure and audit of these.
More transparent labelling could reveal and declare
1.Real info about country of origin
2.Details of carbon footprint involved
3.Pollution levels involved in manufacture and after care
4.Health level and purity of food products
5.Level of Fair Trading involved
© 2013 SAP AG. All rights reserved. 30
3 Changing shopping priority & focus – gradual
education of consumers towards Healthy, Green & Ethical
Consumption
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3 Changing shopping priority & focus – gradual
education of consumers towards Healthy, Green & Ethical
Consumption
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3 Changing shopping priority & focus – gradual
education of consumers towards Healthy, Green & Ethical
Consumption CARBON FOOTPRINT LABELLING?
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3 Changing shopping priority & focus – gradual
education of consumers towards Healthy, Green & Ethical
Consumption FAIR TRADE
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3 Changing shopping priority & focus – gradual
education of consumers towards Green & Ethical
Consumption DYE POLUTION IN CHINA
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3 Changing shopping priority & focus – gradual
education of consumers towards Green & Ethical
Consumption HEALTHY FOOD LABELS
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3 Changing shopping priority & focus – gradual
education of consumers towards Green & Ethical
Consumption ENVIRONMETAL CARE
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THE EVIDENCE – Ethical issues now become major
international news issues within seconds
By Jessica Wohl and Nivedita Bhattacharjee
Thu May 16, 2013 5:35am IST
REUTERS - A trans-Atlantic divide between
European and U.S. retailers over how best to
respond to fatal disasters in Bangladesh textile
factories split wide open on Wednesday, with U.S.
retailers claiming their European counterparts are
giving labor unions too much control over ensuring
workplace safety.
Retailers will need to use technology more
effectively to audit/monitor production
sourcing
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THE EVIDENCE – Totally transparent trade transparent
brands already on the move HONEST by
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4 Need for shoppers to be more excited and
stimulated by the shopping experience
As the international shopping environment becomes increasingly hyper-
competitive – both conventional and online retailers will need to use
technology more effectively to differentiate themselves
1.Websites will need to be “sexier”, more intuitive, give better service and be
more navigable
2.The in-store shopping experience will need to be more efficient and help the
consumer arrive faster at a state of readiness to purchase
3.Technology will need to excite customers more by providing greater
sensory stimulation – both in-store and on-line
© 2013 SAP AG. All rights reserved. 40
THE EVIDENCE – “SEXIER” WEBSITES many with UGC &
Mass Customisation
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THE EVIDENCE – “SEXIER” WEBSITES many with UGC &
Mass Customisation
The Burberry Bespoke Trench – 2m options - $1500 - $8000. Gives customers
a unique product + detailed demand research for Burberry
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THE EVIDENCE – “SEXIER” WEBSITES many with UGC &
Mass Customisation
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THE EVIDENCE – Extreme retail experience + technology
Burberry Regent Street
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THE EVIDENCE – Extreme retail experience + technology
INTERACTIVE HANGERS – by TeamLab of JAPAN -
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THE EVIDENCE – Technology advances retail on-line
ETSY – The US website of the “Unique”
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THE EVIDENCE – Technology advances retail on-line
Farfetch.com – UK website dedicated to finding and bringing customers the
unusual
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THE EVIDENCE – Technology not helping much at POS?
POS Confusion still Rife – why?
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THE EVIDENCE – Technology not helping much at POS?
The Current Inefficiency of Information and Transaction @ POS
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THE EVIDENCE – Technology can and must help more at
POS
The Technology of “Ease” is already here?
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THE EVIDENCE – Technology can and must help more at
POS
The Technology of “Ease” is already here?
© 2013 SAP AG. All rights reserved. 51
5 Consumer Clustering – for finance strapped
consumers and market hungry retailers?
1.As retail markets generally tend to fragment more – a need to use IT more
effectively to “Cluster Consumers” more effectively will be vital – “BIG DATA USED
BETTER”?
2.Already consumer power is taking hold - e.g. GROUPON
3.Easier consumer price comparison is making deliberate “Confusion Marketing” a
thing of the past
4.Both consumers and retailers will move towards technology driven clustering to
improve price competitiveness and increase market share
5.The whole supply chain will need to be driven to deliver far greater efficiencies in
order to drive price savings all through the supply chain
6.The improved and more intelligent use of Big Data will need to become a key
priority – the big question however is who or what business function can drive this
best?
© 2013 SAP AG. All rights reserved. 52
THE EVIDENCE – CONSUMERS LEARN ABOUT THEIR
BUYING POWER
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THE EVIDENCE – PRICE CONFUSION MAY BE A THING OF
THE PAST?
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THE EVIDENCE – CUSTOMERS & MARKETS ARE
FRAGMENTING FASTER – DO WE UNDERSTAND THEM?
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THE EVIDENCE – CUSTOMERS & MARKETS ARE
FRAGMENTING FASTER – DO WE UNDERSTAND THEM?
AS MARKETS FRAGMENT = INDIVIDUALS DEMANDS BECOME MORE DOMINANT?
© 2013 SAP AG. All rights reserved. 56
THE EVIDENCE – SUPPLY CHAIN EFFICIENCY NOW OF
THE UTMOST URGENCY
ROBOT PICKING
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THE EVIDENCE – SUPPLY CHAIN EFFICIENCY NOW OF
THE UTMOST URGENCY
IMPROVING DELIVERY EFFICIENCY - A CONTINUOUS PROCESS
© 2013 SAP AG. All rights reserved. 58
THE EVIDENCE – BIG DATA – IS GETTING BIGGER
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THE EVIDENCE – BIG DATA – THE DATA DELUGE?
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6 How will the Consumer use “The Internet of
Everything”?
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“The Internet of Everything” MY BEST DEFINITION
“A totally connected Internet driven world; where a
majority of people, processes, data and things will be
seamlessly linked together by IT – in an endeavour to
enable humankind to succeed, survive, add value, and
deliver greater optimisation with efficiency. The key aim
will be to improve society’s well being and enable it to live
in a sustainable and equitable way, to the benefit of all the
world’s citizens without harming or exhausting our
environment”.
© 2013 SAP AG. All rights reserved. 62
On the assumption it will arrive – most consumers/society
will clearly use it to
1.Take care of the their loved ones
2.Maximise/optimise their economic, natural and
personal resources
3.(Hopefully) consume more logically
4.Educate themselves, families and friends better
about all aspects of life
5.Seek pleasure and relaxation
6.Prolong and strengthen life and well being
7.Develop, sustain and cherish relationships
© 2013 SAP AG. All rights reserved. 63
The implications for retailers & wholesalers?
Consumption patterns may therefore become more
•Logical
•Controlled
•Fulfilling
•Value adding
•Exciting
•Variable
•Less predictable
•Complex
Therefore more difficult to understand
© 2013 SAP AG. All rights reserved. 64
The Potential Impact of all these factors on Turkish
Retailing
•Increasing foreign competition is now the way of the world – Turkish retailers
must use their local knowledge and strong existing infrastructure to maintain
their market share N.B. Both Benetton & Inditex have small market shares in
UK and C&A gave up and withdrew!
•Controlling and understanding fast changing fashion trends and demands at
both micro and macro level will the best weapon of defence against
competitors – Online shopping in geographically large countries has huge
potential – easy to be first N.b. Zara online shop in China – possibly H&M
soon?
•As the middle classes grow and spread across Turkey – this will the most
important phase for Turkish retailers to gain the “First Mover”
•All over the world – fashion retailers are all starting to look hard again at
home produced product – rather than depending on imports from abroad –
esp. China & India – This is where Turkey can score highly in the area of Fast
Fashion with its own textile and garment industries – speed is becoming more
important than price
THE LAST WORD
The key to surviving and thriving as the world comes into
recovery mode, will be to have clear understanding of
your markets and customers + sound IT& systems + the
application of the best available intelligence
FASTER CHANGE IS THE ONLY
GUARANTEE!
Teşekkürler!