e-Business Rationalism

E-COMMERCE TENDENCIES IN
THE FASHION INDUSTRY

Kassimates Apparel and Fashion Industry / e-Commerce Analysis, Apr. 2012 1

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


~ 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


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.


A: e-Business intelligence

Data

E-Store
Collect Evaluate Analyze Intelligence
Data

Intelligence
Data



 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



 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

 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”.


 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



 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.


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.


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.


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


 Create demand
 Invest in Acquisitions
 Reward on Conversion
 Ability to market directly
 Ability to remarket with Low Risk


 Personalization of needs
 e-mail Alerts
 Mobile Apps
 Online registrations and accounts creation
 Go global
 Cross Selling
 Build up loyalty


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


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


Industry on the web
Top e-Commerce trends:

 Incline
Apparel and Accessories
Mass Merchant

 Decline
Toys
Food
Flowers


Industry on the web

Top e-Commerce trends:

 Mobile e-Commerce
 Personalization
 Behavioral Profiles
 Building Loyalty with Products
 Video


Industry on the web
 Fashion Sharing is in:

- Emails

- Social media - Pinterest and Facebook

- Social Opportunities and Conversions


Thank you


e-Business Rationalism

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