The online fashion sector is now worth 332 billion dollars, representing 28% of the total e-commerce market. And this value will continue to grow. For brands, it is time to rethink their online presence, building more attractive sites for users, capable of responding to their needs and entertaining them. And to regain control over sales, currently in the hands of platforms and marketplaces.
According to a Statista report, fashion e-commerce will grow by 13.8% per year until 2021. The success of this sector is due to various advantages and services that online offers , such as free shipping and returns, increasingly punctual and reliable deliveries, the possibility of personalising the shopping experience and receiving suggestions based on your preferences… And in the (not too distant) future, Virtual Fitting Rooms will also become a reality in which, through 3D avatars, it will be possible to “try on” clothing items before purchasing them.
But above all, growth is favored by the change in user habits , which are increasingly moving from offline to online, in the purchasing phase, but above all in the research phase.
The success of multi-brand sites
As in the offline world, online we also find different types of shops: brand-owned e-shops, brand marketplaces (Zalando, Asos), design e-shops (such as Yoox, Net a Porter or Mytheresa.com which sell luxury fashion brands), generalist e-shops (such as Amazon and Alibaba).
Among all these, multibrand shops
(marketplaces and design shops) are those that occupy the largest space in the fashion sector and those that have worked best so far .
Zalando and Asos, for example, have so much power that they have launched capsule collections in collaboration with important fashion brands. Furthermore, being able to count on a lot of data collected among their users, they are able to intercept the trends and desires of their users and also develop their own collections.
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In the luxury sector, e-shop designs
work on the model of American department stores like Saks Fifth Avenue. If the expansion of e-commerce in fast fashion has been rather fast, the world of luxury has taken longer to arrive on our desktops and smartphones. But today this sector is also growing. In 2016, only 8% of luxury fashion went online, while by 2025 it will reach 18%.
The success of multi-brand e-commerce is due to several factors
“infinite” choice;
customer services;
historicity: they appeared before brands;
only for luxury multibrands: immunity from Библиотека данных электронной почты Amazon and Alibaba (even though last year there were rumors of a possible partnership between the Yoox Net-a-Porter group and Alibaba);
greater digitalization of customers;
growth opportunities for the brands themselves.
But the success of marketplaces is mainly due to the browsing experience they offer: they are platforms built around the user, which offer content, interesting suggestions . People visit these platforms out of curiosity and not just to complete a purchase.
2018, the year of social commerce
But 2018 will also mark another bi lists turning point for web marketing in the fashion sector with the explosion of social commerce . There are several signs that demonstrate this: last October the app 21 buttons (Spanish, but also growing strongly in the Italian market) closed a financing round of 10 million dollars. Founded by two former McKinsey consultants, it allows you to create your own outfits (that you own or would like to own) that link to web pages where you can finalize a purchase. Users become influencers and clicks that generate sales are paid .
Not only that, Instagram will soon allow you to repost content on your story. This new feature will change influencer marketing, making it even stronger because it will increase the visibility, traffic and engagement of influencers and brands.
The consequences for brands
Ashley Friedlein , one of the most influential figures in digital marketing, spoke of a change in the way of doing marketing brought about by new technologies. “Modern marketing has introduced completely new variables – such as Big Data and measurement tools – that were not foreseen by the 4 Ps (Product, Place, Price, Promotion) and that instead have been provided by new technologies”.
Lexi Mills , Managing Partner of Shift6
explained how to introduce new technologies into everyday marketing strategies, making any tool accessible to both small and large companies. “Many business people, even if they are brilliant, get stuck in front of new things and put off changing”.
Russell McAthy , CEO of Cubed, showed how analytics multiplies the effectiveness of a marketing campaign, even helping to predict the future.
Teamwork and social media
While all this was happening, while multi-brand platforms were taking on a dominant role in the market, fashion brands stood still , wary of the lack of control they could have over the brand and online prices. In doing so, however, they lost ground and lost sight of sales , leaving them in the hands of third parties and truly giving up having control of what was happening.
Only recently have brands understood the importance of web marketing and the potential of e-commerce and are trying to catch up in order to compete with existing platforms . But to do so, they must become places where users can spend their time and not just buy a dress or a bag.
If until now brand e-shops have been simple product showcases aimed at purchasing, it is now essential for brands to rethink their sites, offering valuable editorial content for users. Only in this way will they be able to create new engagement and regain control over sales.