1. E-COMMERCE TENDENCIES IN
THE FASHION INDUSTRY
Kassimates Apparel and Fashion Industry / e-Commerce Analysis, Apr. 2012 1
2. Contents of Operational Plan
A: e-Business intelligence and Steps to Success
B: e-Commerce startups principles
C: e-Business Strategies
D: e-Commerce today based on Affiliate Strategies
E: e-Commerce and Apparel/Fashion Industry on the
web
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3. ~ Steps to Success in e-Commerce ~
Set Strategy (keep it simply for customers)
Focus on the final Customer
Redesign Business Process
Wire Company for profit and success
Build on customer Loyalty
- Prioritize objectives
- Decide the way of control of KPIs (key product
indicators
- Measure profitability
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4. A: e-Business intelligence
*According to successful startups in e-commerce the first requirement for a successful e-business is:
e-business intelligence.
E-Business Intelligence tasks, can be underlined as the following:
1. Collect Data :
There are two classifications of data that a firm should acquire
- Primary data & Secondary data. Primary data is gathered by the firm and sponsored entirely by the
firm. There are representatives of the firm who gather the primary data, ex. customer
surveys.
- Secondary data is gathered by some one who is not directly connected to the firm.
2. Evaluate Data :
- All the categories of data are evaluated for accuracy and authenticity.
3. Analyze Data :
The data is to analyzed for completeness. The method commonly known as
lateral thinking is applied during analysis of data, where the data is examined from various angles.
4. e-Store Intelligence /
Information should be stored in a magnetic medium and be kept in readable easy management form.
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5. A: e-Business intelligence
Data
E-Store
Collect Evaluate Analyze Intelligence
Data
Intelligence
Data
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6. B: e-Commerce startups principles
As the over all e-commerce market has
expanded in value, e-commerce startups
(e.g., niche retailers, service providers) have
started to command large enough
addressable markets to become sustainable
businesses
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7. B: e-Commerce startups principles
New business models are still being born,
personalization companies continue to bring
offline models into existence online
There is also room for companies to clone or
apply existing business models to new
product categories (e.g., low-end vs high-end,
male vs female)
Startups often take existing business models
and apply a marketing pivot or alternate
strategy
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8. B: e-Commerce startups principles
Two newer business models that are less reliant on
impulse purchases are online brands and crowd sourced
demand
Online brands are simply new brands that have chosen
online as the marketing channel of choice over offline,
barriers to entry in online brands includes the expertise
required to build a vertically integrated supply chain
Crowd sourced demand start-ups also rely less on
impulse purchases, as do social book marking start-ups
like Pinterest, where users create product wish lists for
“buy-later”.
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9. B: e-Commerce startups principles
Most of the social commerce activity
occurring today are Pinterest, Facebook pop-
up stores and Twitter/Facebook buttons
embedded on e-commerce product pages.
Some companies also use the social graph to
make referral programs easier. However, no
clear class of scalable, defensible startups has
come out of social commerce yet
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10. C: e-Business Strategies
The Strategies are :
- The elements are linked with transmission of
electronics data. The name given to this is
Inter-organizational System (IOS).
- EDI ( Electronic Data Interchange ) is the
means for achieving IOS.
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11. C: e-Business Strategies
IOS benefits
Comparative Efficiency : By joining an IOS, the
trading partners can provide their goods and
services at lower costs than their competitors. The
comparative efficiency consist of two groups:
Internal efficiency and Inter-Organizational
efficiency.
a) Internal efficiency consists of improvement in the
firm’s operations, thus enabling the firm to gather data
faster, analyze it faster and make decisions faster.
b) Inter-organizational efficiency includes
improvements that are gained by working with other
firms.
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12. C: e-Business Strategies
EDI Benefits
Direct Benefits
Reduced errors : As the data coming from the network is accepted
directly by the computer systems hence the errors related to
manual entry are reduced greatly. A study by the EDI Group Ltd.
has proved that the error rate is reduced to 4.4% ( with out EDI
its 10.1%).
Reduced costs : Cost reductions are realized by eliminating the
redundant steps, eliminating paper documents and eliminating
manual labor for routing the documents.
Increased Operational efficiency : As the paper documents are
replaced by electronic information hence the error rates have
declined and routing is perfect and in time, causing the response
and processing faster, with less errors.
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13. D: e-Commerce today based on
Affiliate Strategies
Implementation of affiliates
Segmentation of potential customers
Integrate Social Media
Promote Best-Sellers
Create Shopping guides
Video support
Create online surveys
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14. D: e-Commerce today based on
Affiliate Strategies
Create demand
Invest in Acquisitions
Reward on Conversion
Ability to market directly
Ability to remarket with Low Risk
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15. D: e-Commerce today based on
Affiliate Strategies
Personalization of needs
e-mail Alerts
Mobile Apps
Online registrations and accounts creation
Go global
Cross Selling
Build up loyalty
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16. E: e-Commerce and Apparel/Fashion
Industry on the web
~ e-Fashion Benefits ~
e-Commerce in Fashion Industry = Affiliate Advantage
The store is always open
Global exposure and reach
Establish relationships with loyal customers via databases
Low Cost Information Distribution
Apparel Categories of Selling on the web:
Dresses
Coats and Sweaters
Warm - ups
Tops
Managing by
Jeans
Category
Lingeries and Accessories
Pajamas
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17. E: e-Commerce and Apparel/Fashion
Industry on the web (*all profits in one property)
Informing Selling
Branding
TV Ads Print editorial Store
Magazines Sales People
Cycle of e-Commerce
Production/ Quality of
Marketing Sales Billing services
Logistics
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18. E: e-Commerce and Apparel/Fashion
Industry on the web
Top e-Commerce trends:
Incline
Apparel and Accessories
Mass Merchant
Decline
Toys
Food
Flowers
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19. E: e-Commerce and Apparel/Fashion
Industry on the web
Top e-Commerce trends:
Mobile e-Commerce
Personalization
Behavioral Profiles
Building Loyalty with Products
Video
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20. E: e-Commerce and Apparel/Fashion
Industry on the web
Fashion Sharing is in:
- Emails
- Social media - Pinterest and Facebook
- Social Opportunities and Conversions
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