Presented by Samantha Deese, Product Marketing Manager, Shopgate

Tailored For Mobile: Why Apps Are The New Black

Featuring Brian Hill of Phoenix Fashion Week and Jessica Couch of Luxor + Finch

The Current State of Mobile for Fashion

2

Mobile Devices Are Preferred For Retail Shoppers

3Source: comScore Media Metrix Multi-Platform & Mobile Metrix, U.S., Total Audience

Growth in Digital Media Time Spent

1,600,000

1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0

476,553

409,847

77,081

480,967

621,410

97,440

550,522

778,984

118,229

Jun, 2013 Jun, 2014 Jun, 2015

+53% vs 2013

+90% vs 2013

+16% vs 2013

Desktop Mobile App Mobile Browser

90% Of Time On Mobile Is Spent In Apps

4

10% Browser

90% Apps

The average user spends 3 hours and 40 minutes per day on their mobile device.

Source: Flurry Mobile, eMarketer, GP Shopper

Mobile users are spending most of their mobile time in apps.

The average consumer for top retail apps spent 201.8 minutes a month in the app vs. 10.9 minutes on the mobile

site.

5Source: Business Intelligence Report

$100

$300

$500

$700Billions

US Mobile Commerce Forecast 2015–2020

2015

81%62% 60%

2016 2017 2018 2019 2020

35%38% 42%

45%47%

49%

eCommerce Mobile commerce

mCommerce Will Be Nearly 50% Of All eCommerce By 2020

$200

$400

$600

Mobile Is Dominating Both Traffic And Search

6

2011 2012 2013 2014 2015

20

40

60

80

100 89

%

11%

23%

32%

51%56%

77%

68%

49% 44%

Desktop Mobile

In 2015, 56% of all retail traffic came from mobile devices and over 50% of search queries took place on mobile. These numbers are continuing to grow.

Mobile-friendly websites are already favored in mobile search and now search engines are making it easier to find app results with app indexing and deep linking. This means:

As mobile search experience improves, the shift to mobile search will continue to grow

App results will begin to compete with other results in mobile search

Desktop sites will continue to drop in rank against mobile sites and apps

Source: Internet Retailer, Google

Fashion Shoppers Prefer An Omnichannel ExperienceNot only does mobile increase your online sales, mobile impacts in-store sales as well! More than 90% of shoppers use their mobile device in-store. Your customers are constantly using their phones to make purchase decisions, so making an informative, user-friendly mobile site and app is important for brick & mortar stores too. Here’s the breakout of what your shoppers are doing:

7

54%Compare Prices 28%Scan

Barcodes & QR Codes 23%Buy Products

Through An App

22%Buy Products Through A Mobile Site48%Search For Product

Information 29%Take Pictures Of An Ad

Source: SessionM, GFK

8

Mobile Trends for Fashion Retailers

What’s Next For Fashion Retailers

9

● Increasing Payment Options - Lessen the guilt of purchase by integrating more payment options, such as:

■ Credit card scanners with payment info saving options■ One-touch payment options like Apple Pay and Android Pay■ Common alternative likes Paypal and Amazon Payments

● Improving The Customer Experience - Cart abandonment is a huge issue for all retailers. Of the estimated $4 trillion missed revenue in 2016 due to cart abandonment, 63%* could be recoverable by a savvy retailer.

● Increased Effort In Customer Engagement Over Acquisition - An engaged, loyal customer costs a third to an eighth as much per purchase as a new acquisition. Due to this, brands are going to spend more time investing in customer engagement to grow their sales.

Source: BI Intelligence Report

What’s Next For Fashion Retailers - Continued

10

● Evolving Data Collection To Analyze The Full Path to Purchase - The key for the future is omnichannel. Retailers will begin to update their data collection to track the full path to purchase and update both physical and digital stores for the omnishopper.

● Social Selling - Options for selling on social media are continuing to increase as retailers adopt solutions like Soldsie and Like2Buy. Social platforms are making updates to make it easier for retailers to sell on their platforms, with Instagram, Facebook, Twitter, and Pinterest all using Buy buttons.

● Customized And Simplified Product Offerings - While a large inventory of options can be beneficial for certain industries, shoppers are getting overwhelmed with options. Simplified and customized options & offers are becoming more popular and retailers are looking for ways to capitalize on this trend.

11

Mobile Strategies for Fashion Retailers

Apps: An Exceptional Mobile Shopping Experience

12

Apps provide an entirely new sales channel for retailers. And since the consumer path-to-purchase has become an omni-channel experience, a strong app presence can help improve your sales across multiple touchpoints.

Apps also increase loyalty by providing a better overall mobile experience. A small increase in your customer retention has an exponentially larger impact on profits. And unlike desktop or mobile websites, apps reach customers directly by utilizing device capabilities like push notifications, creating sustained engagement and a streamlined conversion pathway.

Acquisition

Cross-Promotion - Promote your app across all your channels: desktop, mobile website, email, social, etc. Tools like Smart Banners on your mobile website can help redirect consumers to your app - either encouraging them to download or redirecting them to browse on the installed app.

ASO - App Store Optimization. Targeted keywords, accurate descriptions, beautiful screenshots, and positive customer reviews are all important factors in having a top-ranking app.

Paid Installs - Paid social advertising can be an effective tool to garner additional app downloads. And with deep linking, you can use tools like Facebook Engagement Ads to send customers directly to a page on your app.

First-Time Discounting - Provide an extra incentive to download. Offering first-time discounts or Coupons for customers that install the app can be the extra push your fans need to get on board. 13

Encourage both new customers and loyal fans to download your app.

Engagement

Push notifications - Push Notifications allow you to go direct to the consumer. On average, 68% of consumers will enable push notifications & push notifications have a 50% higher open rate than email.

14

After the initial install, keep your customers attention.

278% Higher Engagement with Push Enabled

As Measured by App Launches

eCommerce

Music Travel Food & Drink

Photography

Games Social Networking

Education Sports Health & Fitness

278%

177%

109% 109%81%

62% 60% 50% 36% 34%

Retention

15

Provide an exceptional mobile experience that will keep customers coming back.

Beautiful UI/UX - Keep the Design simple and make your app tap and swipe friendly.

Expedited Checkout - To reduce cart abandonment and remind your customers why the app shopping experience is the best one, provide options to get them through the checkout as quickly as possible. Make the account setup process more simple with options like guest checkout or Facebook Login.

Increased Payment Options - Remove the manual entry of credit card information with tools like Credit Card Scanner or Apple Pay. Users can utilize their mobile device’s camera to scan credit card information or can set-up fingerprint-based one-touch payments.

16

The Shopgate Opportunity

Custom In-House App Development Is Expensive & Slow

17

7 monthsAverage app development

timeline

Source: Kinvey

$270kAverage initial

development cost

$5,000 - $11,000Average maintenance

cost per month

The Complete Shopping Apps Solution

18

Shopgate converts online shops into beautiful iOS & Android smartphone and tablet apps, an Apple TV app, and a mobile website—all hosted and maintained on a single, all-inclusive platform.

Your online shop

Android appsiOS Apps Apple TV apps

App-y Fashion Retailers

19

“Shopgate has more than tripled our mobile sales and with more

than 50% of our visitors coming

from mobile devices, we trust them with more

than half our online business.”

- Teresa and Christina Le,

Founders of JLUX

“The Shopgate checkout process

is next to impeccable. Our conversions rose

to 4%+ after going mobile,

which is when we realized ease of checkout is a big

factor.”

- Tim Jensen, COO of Grunt Style

344% Lift in Mobile Sales

112kApp Downloads