VIBRANT INDIA - Technopak - India TLF 2014.pdf · vibrant india e x p l o i t i n g ... retailers are changing competitive dynamics l o c a l r e ta i l e r s –g e t t i n g i t

VIBRANT INDIAE X P L O I T I N G T H E R E T A I L R E V O L U T I O N

Daniel Cotton

EVP, WGSN Asia-Pacific

30 October 2014

• We are WGSN Group

• The New Indian Retail Landscape

• Expectations of the 2015 Consumer

• Building Technology Solutions Around aTech Consumer

• Building Insight Around Your Buying & Merchandising Teams

A G E N D A

PA R T O F T H E T O P R I G H T G R O U P

£300M REVENUES50% EX-UK

12% HEADLINE GROWTH

1,800 EMPLOYEES

ACQUIRING AND

LAUNCHING

FIVE OPERATING COMPANIES

DOUBLE DIGIT GROWTH

LAUNCHING MORE PRODUCTS YEAR ON YEAR

AN INTERNATIONAL B2B, MULTI-PLATFORM MEDIA GROUP

W G S N – 1 6 Y E A R S O F D I G I TA L S E R V I C E S

Apparel and fashion

Soft and hard goods

4,000 clients

Every Fortune 500 apparel brand

Daily data

100 retailers

10,000 brands

11m SKUs

Own and competitor range analysis

FMCG, Analysts and retailers

Sale and retail analytics data

Strategic analysis of retail value chain

>70% growth yoy

Clients on 5 continents

Product, planning, strategy and training

TRENDSPLANNING &

BUYINGRETAIL

STRATEGYCONSULTING

T H E R E TA I L R E V O L U T I O N H A P P E N I N G I N I N D I A

Source data:

Planet Retail ShopologyThe science of modern shopping

WHERE ARE YOU ON YOUR

CONVERGENCE JOURNEY?

ONLINE

COMPETE ON NEWNESS

FASTFASHION

WHO ARE YOU TARGETING?

MILLENNIALS

COMPETE ON NEW

TECHNOLOGY &

INNOVATION

FASHTECH

SMART PHONE

Access to internet that

wouldn’t otherwise have

a connection to this

channel

M U K E S H B A N S A L , C E O M Y N T R A & H E A D O F F A S H I O N AT F L I P K A R T

“"I'm open to the idea of a strategic (investor) if

the DNA is similar, and the investor has a deep

technology know-how with a vision to grow

Myntra over the next 5-10 years,“

“Building a winning business required the

focus to resist doing too many things at once,

while finding the right blend of fashion and

technology.

S T E V E S U N N U C K S ,

G L O B A L P R E S I D E N T O F

G A P

“India is an emerging, vibrant market and an

important next step in our global expansion strategy.

In india we will integrate our physical and online

offerings”

“Gap is loved around the world for our American

casual style and enduring value and quality”

We are so pleased to bring our brand and

products to life for customers in India”

K A R L - J O H A N P E R S S O ,

C E O O F

H & M

FA S H I O N P L AY E R S A R E S P R E A D I N G T H E I R W I N G S

R E TA I L E R S A R E C H A N G I N G C O M P E T I T I V E D Y N A M I C S

L O C A L R E TA I L E R S – G E T T I N G I T R I G H T

International brands are looking to exploit the opportunities provided by India’s blossoming e-

commerce market

I N T E R N AT I O N A L R E TA I L E R S L O O K I N G AT M A R K E T E N T R Y

M E E T T H E C O N S U M E R O F 2 0 1 5

ALWAYS

CONNECTED

TRUST IS

CONVENIENCE

IGNORE ADS

SEEKS

AUTHENTICITY

OPINIONATED &

SHARES IT

VALUE CONSCIOUSREQUIRES

IMMEDIACY

FOLLOWS RITUALS

Source data: infographic by Reuven Gorsht

http://rgorsht.wordpress.com/tag/millenials/

1 . P R O V I D E S E A M L E S S O N L I N E E X P E R I E N C E S

The share of online spending via mobile devices is growing, so retailers need to adopt a

“device agnostic” strategy.

PC/Laptop73.3%

Mobile13.7%

Tablet13%

2012

Global Spend Online:

Proportion by Device, 2012 vs. 2013 (%)

Source data:


Spend via MOBILE Up

$342mn in a YEAR.

A growth of 116%PCLaptop43.5%

Mobile28.4%

Tablet28.1%

2013

2 . A P PA R E L S H A R E O F O N L I N E S P E N D I S G R O W I N G

Apparel share of online spend growing as consumers gain confidence in retailers

improving propositions.

Apparel as a proportion of online spending:

2012 vs. 2013 (%)

Source data:

2012 2013

12.3%

$263mn

13.9%

$310mn


2 . A P PA R E L S P E N D V I A M O B I L E I S O N T H E R I S E

The share of online spending on apparel via smartphones is growing.

2012 2013

10.2% 23.8%

Apparel as a proportion of online spending via smartphones:

2012 vs. 2013 (%)

$27mn $74mnSource data:


2 . R O L E O F P C / L A P T O P R E M A I N S I M P O R TA N T

Despite the rise in smartphone shopping, when it comes to buying apparel online in the future, our

research shows that the PC or laptop remains important

Likelihood of shopping online for apparel by each device in the future:

Very Likely and Extremely Likely taken

Source data:

49% 46%52%


32% 33% 30%

BASE Size: 1,597

2 . S E A M L E S S O N L I N E E X P E R I E N C E

Our shopper research revealed the need to cater for the device agnostic consumer

Source data:

57%

56%

55%

54%

Good product information

Ease of use

Good quality images

Clear product reviews

Regardless of device, website features deemed

important...

Choice of online retailer influenced by...

62%a quick & easy to

use website and

checkout process

58%a website with lots

of features and

functionality


BASE Size: 1,597

3 . E M P O W E R S M A RT P H O N E U S E R S

Mobile provides shoppers with a powerful tool giving complete transparency of a retailer’s

proposition.

Shoppers currently use their mobile to…

47%check prices when

instore

44%compare products and

read reviews when out

shopping

Source data:


BASE Size: 1,597

3 . E M P O W E R S M A RT P H O N E U S E R S

With shoppers wanting to use their mobile to guide purchasing, the device is becoming the

ultimate shopper companion in a price conscious country

Our research in India shows us that Shoppers

WANT to use their mobile to…

55%quickly and easily

compare prices

Source data:

49%receive real time offer,

promotions, discounts

might be eligible for

45%Gather loyalty points or

savings as you shop

44%Pay using your mobile

at the checkout


BASE Size: 1,597

4 . U S I N G O N L I N E F O R FA S H I O N S H O P P I N G I N I N D I A

Our shopper research shows us that apparel shoppers are turning to digital channels for

inspiration as well as to make purchases

Likelihood of using internet when shopping for fashion

Very Likely & Extremely Likely

55% Buy core essential items

47% Buy high-street fashion

54% Get inspiration on the latest fashion trends that would suit me

Watch videos to get style ideas or tutorials for fashion advice48%

Source data:


BASE Size: 1,597

4 . B A R R I E R S T O O N L I N E A P PA R E L

Our shopper research shows us that similar to other markets, and indicative of the tangible

nature of apparel, the biggest concerns for shoppers in India are around fit and quality

Shopper view of buying clothing online

Agree with statement

68% I am concerned about the quality of clothing online

54% I like to try on the clothes instore, and then buy them online

61% I'm worried what I buy online will not fit me properly

Concerned over what is on website is not a true reflection of product

59%

Source data:


4 . B A R R I E R S T O O N L I N E A P PA R E L

From the results of our research in India, the factors of importance to online apparel

shoppers are centred around alleviating fears over size and fit, while linking the digital to

the physical worlds

Important features when buying fashion

Overall importance

62% A zoom function that clearly displays the small details of a product

54% See if product was available instore and online from a retailer

59% View a comprehensive size and fit guide

Quickly and easily filter products online by size, colour, style59%

Source data:


BASE Size: 1,597

5 . C R E AT E A C O M P E L L I N G I N S T O R E E N V I R O N M E N T

Instore technology must not be used for technology’s sake - solutions that are

implemented must solve a problem or meet a need.

22%have used an interactive

display instore to search

more product ideas and

suggestions

20%of shoppers have interacted

with staff equipped with

tablets

35%of shoppers have

accessed a retailer’s free

instore Wi-Fi using a

mobile

Source data:


6 . F U L F I L M E N T - A C O M P E T I T I V E D I F F E R E N T I AT O R

Payment and fulfilment in India is a huge competitive differentiator

61%Offered more flexible delivery

times and options

61%Offered same or next day delivery

From our shopper research, we know that the choice of retailer is influenced by...

Source data:

51%Accepted alternative online

payments (such as cash on

delivery, cash on instore collection)


• Over 1,000,000 products

• Over 10,000 brands & retailers

• Over 150 product sub categories

• Over 11 million data points (SKUs)

• UK, North America or Australia view

• Filter by retailer, brand,

price band, style, colour and pattern

• Track markdowns

• Track stock levels

SHORTER PRODUCT LIFE CYCLE

SHORTER PLANNING CYCLE

SEASONAL BLURRING

FASTER FASHION

U S I N G D ATA TO I D E N T I F Y E M E R G I N G T R E N D S

ANALYSIS ASOS: We identified a trend of some SKU’S out of stock for tapered

trousers 69% v’s leggings 67%

VERDICT: More potential to optimise tapered trousers as this will carry through

to winter, and ensure correct pricing and colour

SPOTTED: Tapered trousers moving fast

ANALYSIS KOOVS INDIA: We identified a trend of tapered trousers 33%

(12% ASOS) and leggings 27% (66% ASOS)

WGSN INstock Retail Analytics™

U S I N G D ATA T O I D E N T I F Y M O D E R N E M B E L L I S H E D

ANALYSIS RIVER ISLAND: We identified a trend of flat embellished sandals

with moving into chunky sole, already showing some SKU’s out of stock

VERDICT: More potential to optimise in high spec embellished sandals with a

western twist

SPOTTED: Contemporary Embellished sandals

ANALYSIS M&S: We identified a trend of up spec leather and comfort


U S I N G D ATA TO I D E N T I F Y M E N S P R O D U C T M I X

ANALYSIS ZARA: We identified a trend with plain t-shirts second highest mix

at 46% (46% 7 mid market retailers) with printed t-shirts at 53% (53%.

VERDICT: More potential to optimise up spec plain t-shirts, the conservative

style fits with a wider age demographic and reduces risk

SPOTTED: Men‘ s plain tee

ANALYSIS JABONG INDIA: We identified a trend of printed t-shirts, 70% of

the mix compared to just 30% plain


U S I N G D ATA TO I D E N T I F Y F I R S T TO M A R K E T

SPOTTED: New look fast selling tops – kimono full price

VERDICT: More potential to optimise kimono, the conservative style (light

weight cardigan) fits with a wider age demographic and reduce the risk


W G S N I N S TO C K – K E Y L E A R N I N G S

ADOPT THE NEWNESS & INCREASE DROP SPEED OF FAST RETAILERS. INCREASE

THE MIX OF CONSERVATIVE FEMININE SHAPES AND PLAY WITH COLOUR

KNOW YOUR CUSTOMER

USE COMPARATIVE SHOPPING TOOLS TO COMPILE ONLINE COMPETITIVE

CATALOGUES, AND MONITOR PATTERN AND COLOUR SUB TRENDS

MONITOR THE COMPETITION DAILY, WHAT’S YOUR NEXT PRINT VEHICLE?


BIGGER DATA + BETTER ODDS

O L I V E R S A M W E R , R O C K E T I N T E R N E T

“Software, infrastructure, logistics, payment systems are the critical enablers of eCommerce .

Last mile is the key to success. All needed for last mile delivery:

drivers with their own bikes. Give them t-shirts and GPS.”

Appendix

A Service

Online Apparel Retailers in India

October 2014

Marina PintoAssociate Analyst

Jabong.com

History • Jabong was co-founded in 2012 by Arun

Chandra Mohan, Praveen Sinha, and Lakshmi Potluri and Manu Kumar Jain.

• Jabong is owned by Gurgaon based Xerion Retail Pvt Ltd which is backed by German based Rocket Internet.

Strategy

• Jabong plans to introduce two-three private label brands in the next 4-5 months. The company has set up a full fledged design team in London that would be focusing only in creating the design.

• Jabong recently partnered with Swarovski Elements. With this unique association with Swarovski, Jabong will bring the Indian consumers closer to the global aspired fashion and luxury scene.

• By launching Next Door service which helps customers to pick their orders at the nearest coffee shops, petrol station or tour operators ; Jabong aims to target impatient customers awaiting faster delivery and attracting new customers from remote villages where courier companies cannot reach their doorstep.

Revenue

• For FY 2013 - 2014 , Jabong posted revenue of INR4.3billion (USD 73.6 million) and net loss of INR2.9 crore (USD49.2million)

Myntra.com

History• Myntra was eastablished in Febuary 2007 by

Mukesh Bansal, Vineet Saxena and Ashutosh Lavania.

• Myntra has been recently acquired by Flipkart for an estimated USD370 million, which is one of the biggest deal in the country’s e-commerce market.

Strategy

• Recently Myntra announced its plans to set up office in London in cooperation with European design studios. Myntra aims to frequently release new designs from the London studio to enhance its private brands.

• In 2013, Myntra acquired Fitiquette to be amongst the first retailer to introduce virtual fitting room in India . Myntra will also incorporate Fitiquette’s core product within its website.

• Myntra is tying up with international brands like Mango and Gap to increase its web traffic. Myntra has partnered with over 650 fashion and lifestyle brands. Myntra is driving its sales through myntra coupons.

Revenue

• In 2013-2014, Myntra posted revenues of INR8 billion (USD134.3 million)

Strategy

• Snapdeal partnered with Fashion Design Council of India to launch The Designer Studio. Snapdeal expects sales of INR60 billion from the fashion category by next fiscal. The e-tailer aim to provide access to exclusive and premium designer creations for customers, to meet their aspirations and help improve availability.

• Snapdeal is focusing on enhancing its technology and processes to improve seller experience on its online platform. It takes four hours for a seller to start selling products on Snapdeal.com.

History• Snapdeal.com was founded by Kunal Bahl

and Rohit Bansal which started in February 2010, as a daily deal platform but later moved into retailing across various categories.

• Snapdeal.com sells products across various categories like electronics , home kitchen , automotive etc.

Revenue

• In 2013-2014, Snapdeal posted revenue of INR1.68 billion ( USD28.2 million).

Snapdeal.com

Source: http://trak.in/tags/business/2014/06/04/top-10-indian-e-commerce-sites-comparison/

http://trak.in/tags/business/2014/06/04/top-10-indian-e-commerce-sites-comparison/















VIBRANT INDIA - Technopak - India TLF 2014.pdf · vibrant india e x p l o i t i n g ... retailers are changing competitive dynamics l o c a l r e ta i l e r s –g e t t i n g i t

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