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Illustration: Claudia Meitert Caroline Seidler. Ultimately, buyers need to select what their customers want. These customers tend to turn to the supposed security of a larger brand when a certain price level is breached. Luxury is defined, on the one hand, by high and highest quality. On the other hand, it is also defined by the story of a brand. Parallel to real luxury manufacturers such as Giuseppe Zanotti, Louboutin, and Jimmy Choo, we have witnessed the creation of a market dominated by designer names and marketing. In my eyes, examples include Prada, Ferragamo, and Gucci.
This applies even more for what we call luxury sneakers. The latter are offered at a price that merely mirrors the image, certainly not the quality. However, they are highly relevant to the market due to social media campaigns. The limited Yeezy Sneakers, a collaboration between Kanye West and Adidas, sold for Euros and were sold out almost immediately. Pressure on Luxury Market. The retail industry also feels the increasing pressure.
On the one hand, they blame factors. While the product range changes from season to season, the constant remains the focus on quality. The main reason why the Louboutin hype is still holding up is the selective distribution. Naturally, the collections are also always fantastic. That is indisputable. Everybody agrees that the quality has to be paramount.
He managed to thrill editors and buyers alike right from the start. The brand of his father, Sergio Rossi, had been sold to Gucci Group years earlier.
We were enthusiastic about it straight away and have been loyal customers ever since. Much emphasis is placed on the tradition of craftsmanship and the know-how of the strong workforce, which is capable of fulfilling individual wishes. The entrance price is important, as it is what gets you into the business. However, it is even more important to have a special element in your design, which makes your product recognisable and nobody else has. The big brands are everywhere, but I do have the impression that the stores are still open to new ideas.
Our distribution agency Rainbowwave Ltd did an awesome job for us. Yet it also requires openness on the part of the buyers. We need experiments. We need bold decisions. And we need events that showcase footwear in all its glory. The shoe retailers need to become more open to new products. In our industry, marketing activities can often be decisive. When a brand is promoted by an excellent advertising campaign, it makes the product more attractive.
The main selection criteria were creative potential and product quality. The project will initially run for two seasons. Kirstin Deutelmoser believes that the industry needs to support its creative talents. Jeans are basically seen as the model pupil of globalisation. They were the first clothing item to globalise an image. They have always been the key look of counterculture, an icon of youth, and a symbol of freedom. This clear positioning was distinct and extremely successful over decades.
It was a real no-brainer! However, when the globalisation and media digitalisation turned jeans into a borderless mass product, they were transformed into a stereotype. Several people have since tried unsuccessfully to find a new, credible positioning in our consumer world. The same applies to the digitalised communication and consumer behaviour of the image-relevant, young target group and the surge of vertically integrated companies. The latter was only made possible by globalisation. In the current situation, quite a few of us might remember it.
The radical change that we are experiencing on all levels of society - and therefore also within our own personal, individual sphere - has really taken on a new dimension. What takes our breath away is not change itself. The breathtaking element is the speed in which this change is taking place. Every current debate, every challenge, and every change - be it large or small - can be traced back to these two key factors. Rapid scientific progress, the VW scandal, Netflix, TTIP, the financial crisis, Snowden, the German export successes, changing consumer behaviour, and even the extremely stupid discussion why war refugees own - and use - smart phones are but a few examples.
All of it can be traced back to globalisation and digitalisation. The fashion world is particularly affected by these acceleration forces. This is challenging and potentially scary, but always highly exciting. The direct mirror function of social, sociological, and cultural trends and changes was - and still is - what I perceive to be the most fascinating aspect of this industry. For a very long time, one of most important cultural roles of fashion retailers was to make the scent of fashionable sophistication and flair of international metropolises perceptible.
They communicated the images, stories, and know-how. After all, this glittering world was not only far away in a physical sense back then. Today, we carry this world around with us in our pockets and no longer merely travel to all these mythical - or possibly slightly demystified - locations of yearning by placing a finger on a map. Our industry is currently experiencing an epochal period of change. This process of change will continue, mainly driven by - yes, I know I am repeating myself - digitalisation and globalisation.
Much of this process is indeed uncharted territory! This forces us to check positions and to, ultimately, question absolutely everything. As I said, this is challenging and potentially scary, but always highly exciting. To quote Angela Merkel, there is, above all, no alternative. Maybe this is where we should remember the whole chorus of the aforementioned R.
Stagnation means regression. The fashion industry is changing, profoundly and structurally. Online retailing is booming, vertically integrated businesses are expanding their sales areas aggressively, and brands are pushing their own retail concepts. Text: Kay Alexander Plonka. Illustration: Claudia Meitert Caroline Seidler style in progress. The initial idea was to prove to myself that I can do it. However, it turned out quite differently.
And yes, I persevered by the way. I spent a lot of time looking into how the clothes I buy are produced. At first, I was overwhelmed by all the information. The list goes on and on. I was asked again and again what my plans for after the shopping diet are. What happens next? I realised that, in my capacity as consumer, my money is my power. Everybody wants my money and I can decide who gets my money.
Why not buy a new top for an evening party? After all, it only costs five Euros. In truth, the top comes at a much higher price. The price is paid by the environment and workers alike. I no longer go shopping; I buy clothing when I need to - modest, ecological, and fair.
The period during which a collection can be sold at regular prices is getting shorter. I have started to purchase irrespective of the season. The customers are flexible, but we are trying to return the seasons into the correct order. A practical example proves that it is impossible for customers to buy a good bathing suit at the end of July. We strive to change that. We quite deliberately avoid some cruise and in-season collections. Our mix of street wear and luxury brands is steadily enjoying more success. This development has been apparent ever since we opened the store five years ago.
We are also pleased that the presentation of items from the introductory price segment next to high-end products is so well received by our customers. In times of demographic change, the topic of personnel development is at the top of our agenda. Well-trained, committed, and motivated international junior employees constitute an important part of our team.
Their global experience and focus ensures that we are always on the cutting edge; we utilise their influence to create an ideal trade channel for the German, Austrian, and Swiss markets. To this end, we have adapted the brand portfolio to the industry changes and the associated online trend. Our portfolio offers our customers a clear - yet still diverse and international - product selection in both the premium and street wear segments.
We serve different tastes, age groups, and sales concepts. Openness, reliability, and flexibility are qualities that have accompanied us on our path to our goals for many years and they enable us to do our job with passion and a high degree of quality. Personal contact always comes first. The permanent maintenance of contacts and excellent service - the physical act of trading - remains irreplaceable for us. Thus we see the combination of all the aforementioned factors as an ideal way to conduct business successfully in times of structural change within the fashion industry.
The customer group that represents the largest part of revenue is mainly defined by clothing and utilises fashion as a distinguishing feature. These customers want to be surprised, animated, and inspired. We need clear, comprehensible topics with face and heart, as well as authentic, fascinating product presentations. In my opinion this means the following for if customers whip out their smart phone, take a photo, leave a positive report on a social media platform, and leave the store with a bursting shopping bag, they have clearly been successfully seduced!
Sustainable shopping can also trigger a good feeling. Mid-September , we significantly expanded our sales areas for sustainable products, redecorated them completely, and further developed the original concept, which was focused on green plants, cartons, wheat, and jute. The new concept should visualise as many aspects of sustainability as possible; the entire sales area is decorated with up-cycled materials. It boasts recycled designer furniture, a carpet made of recycled plastics, and tables made of metal from a scrap yard.
We also make sure that regionally sourced materials are used. However, the most important thing is that it stands for fashion! I do understand the background of this desire. We can actually solve the problem ourselves by delivering goods corresponding to the seasons. I think we can all agree on when the cold winter months are and when it is most likely to be warm in summer.
So why are winter goods delivered in June and summer goods delivered as early as December? This puts the retailers under unnecessary pressure and shifts the core period of the seasons into the wrong months. We all know the consequences for consumers, retailers, and manufacturers. The great thing is that the absolute majority of our retail partners share our views. This way of joint thinking can be applied to so many other areas.
The basic attitude is the most important factor. We enjoy this deliberation process and the dialogue with our partners and it certainly has a positive effect. In addition to many factors, the fact that the industry has changed dramatically over the last few years was certainly one reason for this rather big step. The pressure, which has come to the forefront at both small, innovative and global companies, is especially noticeable in the highly specialised retail sector. In view of the globalisation of the retail industry along with the accompanying communication means social media , this development is quite understandable.
This is where my consulting agency comes into play. A manufacturer distributes products into different regions, but the new media channels cross boundaries. My work has become globalised too. An interesting field of activity appears to be developing in the Far East. Systems, processes, and strategies that have established themselves in Europe, or in western-oriented economies, can sometimes be adapted for these relatively new markets.
I am excited about the developments expected to happen within the next one to two years, especially because the developments over the last three to five years within my current field of activity seem to be happening almost twice as fast in Asia. If designs are - as is often the case - merely copied, it leads to monotony, which is what we are currently experiencing in the fashion industry far too often.
A little bit of this and a little bit of that - we try too hard to keep everyone happy. And suddenly consumers are ahead of the industry and on the lookout for something completely different. I want to achieve my goals with as little compromise as possible. In this respect, our Wunderwerk label follows a very simple principle. Quality, fit, and timeliness are prerequisites to play a role on the market, not merely in a niche.
Sustainability, respect for humans, nature, and animals, and mainly European production sites, as well as the use of natural resources like organic cotton and wool from controlled biological livestock, are self evident for us and deeply enshrined in our corporate DNA. This includes buttons, yarns, and even pocket linings. And we want to exemplify that philosophy. The positive feedback from customers and growth beyond expectations proves that we have the right approach.
Fashion is about enjoying new things, innovations, and leaving the comfort zone. And it should be clear that one has to think about tomorrow, right? It seems as if the myth of online retailers being the huge enemies is relativising itself. One can feel a certain togetherness. The trench warfare between online and offline seems decided.
At the end of the day, a few online platforms, that conquered the market early with a highly professional approach, will survive and the number of stationary retailers remains relatively stable. Every trend has its counter-trend and, therefore, the stationary retail industry will experience a renaissance when the opportunities of our information society are evaluated correctly and exploited professionally.
The lack of emotion in the fashion industry does, however, give me a headache. This is a result of the flood of information. The leitmotifs of purchasing departments are no longer emotion, taste, or style, but lists, figures, and sales results. The stationary retailers must have learned this from the online retailers.
In turn, online retailers react to the lack of emotion within the online business by introducing virtual shopping consultants. To me, the trend of the counter-trend is pre-programmed. We simply need more emotion in the fashion industry. Our transparent society leads to a de-emotionalised society and the life within the digital swarm leads to the desolation and loneliness of the individual. A transparent society is a society defined by mistrust and suspicion; it focuses on control due to declining trust. Thus, the moral foundation of society is fragile and values such as honesty and sincerity become less important.
So I am hoping for the trend of the counter-trend: more emotion, more honesty, and more sincerity. We need to return to old, true values. Based on this fact, only concepts with a clear message and target group can be successful in the upscale retailing segment. A buying process that is split up into summer and winter seasons is technically a thing of the past. The retail industry needs at least 80 to 90 percent all-year goods, which are renewed by utilising different delivery rhythms.
To date, the very narrow seasonal differentiations and wrong delivery rhythms result in permanent discount sales in stores. Retailers need to push their performance and DNA to the fore again, instead of focusing on price promotions. The focus on the essentials applies to both my retail operations and my agency. In my agency, I have always focused on a limited number of products and have always valued the service concept very highly.
This has proven to be very successful over more than 30 years. What does this mean for us? We want to continue to establish ourselves as a brand and strengthen our own profile. It is not only necessary to put together a fine, meaningful selection, but also to ensure that the customers feel pleasure when buying from us. With Uzwei, our new store concept, we follow that philosophy in a very determined and consistent manner.
The editorial approach is to compile different themes, provide different stage designs over a season, and to attempt to create a lifestyle that appeals to young and fashion-oriented consumers. Fashion-oriented women sometimes purchase a bag by Loewe, Proenza, or Stella McCartney because they trust the style and selection of our editorial team. The more defined the Uzwei profile is, the easier it is for us to bring more clarity into the product range of Unger.
As we fight for fashion-oriented, curious, confident, and enthusiastic consumers in the high-end segment, we can also broadly cover the luxury segment at Unger, which often leads to winning back eager customers who are struggling to navigate through the world of mono-brand stores. I have been monitoring the changes within our industry for many years and time will tell whether our strategy, ideas, and approaches are the right ones. However, I strongly believe that luxury retailers are no longer system compatible without a clear handwriting and profile. However, that hampers the creativity of fashion designers, who have less and less time to work on innovations and often have to be content with re-combinations that are, from a creative point of view, mere finger exercises.
Luckily it is becoming increasingly clear that creativity is not the only resource that falls by the wayside. Raw materials such as cotton have become so scarce that the whole industry needs to reconsider its approach. In this sphere of the industry, change is not fuelled by pure reason, but by constraints.
A shortage of raw materials is such a constraint, as is the rising energy cost. In this context, ecological change is initiated and new methods are tested. Jeans made of recycled cotton, jackets made of recycled PVC, and the concept of the closed cycle in which old resources are recycled are but a few examples. Social change in terms of the working conditions at producers - from the designer to the textile workers - is also only fuelled by constraints. Bad publicity, such as in the aftermath of the Rana Plaza catastrophe, is such a constraint. The change that the fashion industry needs happened in the food industry a long time ago.
Consumers can research which chicken has laid their eggs. Fashion, however, remains a largely anonymous product; fashion seems to fall into the store shelves from the sky. I want to change this fact. In my capacity as a fashion journalist, and especially via my start-up named Fair-a-porter, I strive to initiate change on two levels.
I try to inform consumers about sustainable fashion and offer them a platform to consume fashion consciously by curating a range of transparently produced fashion items. I also offer brands that produce sustainably a platform to present their product range. Pseudo-innovative products with a short half-life should no longer be desirable, but carefully and transparently produced fashion that benefits everyone: the customers, the many producers, and the environment.
The product needs to be positioned accordingly. The best case scenario is when you can adapt your production to the realities of the market in a manner that allows you to always react to market developments in time. For example, just think about how short-lived trends have become. As retailers, we need to tread new paths to ensure that we remain successful in our fast moving market environment. We believe that this also requires changing certain elements of our corporate culture. In some areas, it seemingly makes sense to loosen control mechanisms in favour of allowing more autonomous decision-making at the operational level.
Communication is one example that comes to mind. We are pursuing a new approach in this area, especially in terms of social media activities and co-operations with bloggers. Instead of specifying content in detail, we relinquish control quite deliberately. We are very curious about the mid-term results. However, I am already convinced that the faster and more competitive environment will cause other trend-sensitive companies to require more freedom for autonomous action. The buying department is a good example. Our customers expect us to offer cutting-edge products.
It is vital to avoid losing both competitiveness and identity in an increasingly fast market. That is the challenge caused by change today. Markus Dielmann, managing director at Dielmann Group. The world has changed over the last decade and our behaviour as consumers even more. The fashion industry has fallen behind and is struggling to catch up.
Nothing has really changed, except for the online business. The stationary retail industry is still the same. We attend a trade show, then place a pre-order, and half a year later everything is different to what we expected and, once again, we are all speechless and stunned!
We are like politicians; we can discuss issues for hours at trade shows. We moan and groan, but at the end of the day we are surprised that nothing has changed and that the inevitable has happened. Then there are the top-sellers and the customers who are willing to buy those top-sellers.
Why do customers not behave the way we want them to? The answer is because we have all changed our behaviour in terms of spending money! And what does the retail industry do? Retailers are merely monitoring the situation, visiting the same trade shows as always, and utilising the same order system. There is hardly any replacement stock in the warehouses and a distinct lack of flexibility.
The question is when one should change and should it be noticeable for customers or only for oneself? When do we manage to buy enough top-sellers to give customers what they are looking for? Should we open the shops? Lo and behold! August was saved by record sales generated by shopping guests from Asia, Dubai, and forward transactions with VIP regulars! Locals, Chinese, and sheiks bought the top-sellers of the autumn season in temperatures of 30 degrees!
This is how it works in Innsbruck. We have to know that what we do creates trends, because it has also changed the way people dress and feel in terms of fashion. Today, the fashion and the markets are changing and moving very quickly. Right now, high fashion is leading the way, but it can suddenly turn to technical outerwear. To respond to the changes, we need to be fast and intuitive, with the aim of covering markets with smaller collections, rich in detail and with a well-defined DNA that suits all markets.
To remain contemporary, we should propose more delivery dates throughout the year, to ensure that we can offer the consumers a wide range of products. Carsten Bange, a renowned market analyst, sat down with style in progress to discuss the big changes caused by digitalisation and what opportunities these changes offer. Text: Nicoletta Schaper. Photos: Peter Schaffrath. Mr Bange, you predict that digitalisation will lead to revolutionary changes within all industries.
We ar in the midst of the technological revolution, primarily in terms of data and its analysis. How can data improve processes? To what extent can data act as a basis for completely new business models? Another slogan is that software is becoming more important than hardware. Many manufacturers are in the process of changing their business models and provide their customers with machines in style in progress.
For example, the compressor manufacturer Kaeser does not only supply compressors, but it also offers a billing model for the amount of compressed air used. This business model has enormous potential, especially in Germany. Our hardware is, compared to international levels, usually high-priced.
So software is a competitive advantage of the future? So is the control of the machine that comes with it, which makes the profit controllable. Maintenance costs are crucial for machinery manufacturers. Regular measurements of sensor data allow a more precise prediction of when parts need to be replaced. This means that unplanned outages, which cause huge costs, are much rarer. Even robots are becoming more intelligent due to new software. Today, one no longer utilises fixed programming to ensure that a robot identifies parts; now the robot is, instead, capable of autonomous action by means of software.
The car itself is turning into a mere accessory. Do carmakers understand the seriousness of the situation?
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I think they have finally realised the urgency; there are many initiatives, even from German carmakers. However, the race is still wide open. IT companies,. I think the strategic importance of data has been recognised. The problem is implementation. Many companies hesitate due to a lack of know-how in terms of technology and application. Technology has already progressed much further than many imagine. As early as , Facebook processed terabytes of data every day!
To be able to utilise that data, Facebook further developed technologies in co-operation with suppliers and can now place targeted advertisements. This has transformed Facebook into a highly attractive space for advertising. What does digitalisation mean for the retail industry? Currently, e-commerce is the growth sector. It is still unclear what effects this will have on the stationary retail industry. In a subway station in Seoul, one can - for quite a few years now - view a supermarket shelf on a screen and scan the codes of the products on display.
The shelf and the milk carton are purely imaginary. Do I really need to touch a milk carton? After all, I only want information. When is the expiration date? How high is. Is the milk really organic? You can communicate much more information via a smart phone than you could ever print on a carton.
Why has this not asserted itself across the board yet? The food industry is exceptionally slow. The margins are extremely low and the investments are high. Amazon recently announced its intention to enter the food trade and this will, as always, speed up the development process. At present, retail groups such as Rewe and Edeka are investing heavily in data analysis.
Fresh goods that have not been sold by Saturday evening are thrown away. The more data is available, the easier it is to plan ahead. Internal data sources are not the only help in this respect, but the season and weather conditions have a major impact too. DHL, for instance, managed to optimise its driver management significantly on the basis of weather information.
People order more online if it rains on Sunday. This means that more parcels need to delivered on Tuesday. Furthermore, data about the competition can be equally helpful. Which measures have the competitors taken? In addition, there is demographic data. It is nothing new that the product range is defined by this aspect.
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However, the prediction - and therefore the control of goods flow and offers - is becoming much more accurate. The sticking point could still be the delivery aspect. The problem of fast delivery can be solved. Where retailers identify a lack of speed, they take action themselves.
The ultimate goal is same-day delivery. If the logistics companies cannot offer that, then Amazon will simply decide to build its own drones. Speed is absolutely critical. But there is also still sufficient room for data-driven disruption on the ground. For example, Uber is currently experimenting with a courier model in New York City.
The parcel is picked up and delivered very swiftly. And why should one not also take a passenger along too? Despite the online boom, you still believe that the stationary fashion retailers have enormous future potential. I strongly believe that the tactile experience remains important. As a consumer, I want to see the material and experience how it feels. I want to try on the clothes too. The big opportunity is to provide a shopping experience. This experience should not only be focused on the process of selling, but also on the fun element.
As a modern consumer, I want to combine the benefits of online purchases with the experience of shopping in a store. The Hudson Yards in Manhattan, which are currently still under development, provide a huge sales area without adjoining warehouses. Here, the fashion store transforms into a showroom. Every item is only available once, in each colour and size, which means that the selection on offer can be larger than ever. The purchase itself takes place in the store.
What does digitalisation mean in terms of service at the point of sale? After all, advice is one of the main strengths of the stationary retail industry. Even advice can be automated to a large extent. Data can be utilised to create a detailed profile and to determine which networks an individual customer frequents. I can filter out how fashion develops and I can identify data-driven trendsetters who will be followed by many other consumers. A salesperson has to be very good to achieve something comparable based on experience and intuition.
However, even stationary retailers can. The next step would be to adapt the shop window display to passing trade. In many cases, however, only large retailers can afford the necessary technological investments. Smaller retailers still have two options. Either they decide to serve a niche market, or they team up with others. The latter is similar to the classic concept of a co-operative. Specialisation can be particularly advantageous for smaller retailers. How critical do you see the digitalisation process?
First of all, everybody needs to be aware that digitalisation is happening. The opportunities for obtaining a vast amount of information about individuals already exist and they are being utilised to an increasing extent. It has already become apparent that the definition and understanding of privacy will change. It is important that we retain the power to choose what we want to reveal and what not. Digitalisation affords opportunities that need to be seized, especially for the industry as a whole and for retailers.
In Germany, we often lack the willingness to try something new and to take risks - our mentality hampers us in that respect. Therefore, I call upon companies to be more open for experiments; there are areas where you can achieve success with comparably small investments in data and technology. It all starts with the understanding that data is a highly valuable asset.
The speed in which I offer new, innovative services is becoming increasingly important. And the time I have to implement them is becoming shorter. So far, every technological revolution has created more jobs than were lost. However, some researchers question whether the same will happen this time. We can definitely expect to have more free time in the future. The latest developments in robotics have led to a massive relief in terms of physical work. Even our more demanding mental abilities can be reproduced by machines with artificial intelligence. This is no longer science fiction.
Our focus can be shifted to the cultural areas over the next 50 to years. If we have more time, we also have more time for shopping. This takes us right back to the aforementioned shopping experience. We can only create theme worlds in stationary retailers. Online cannot keep up in that respect. The institute specialises primarily in data management and data analysis. With 18 analysts on its books, it has the largest team in Europe in this niche market. It all started with the rise of e-commerce and social media.
It continues with adapted production processes and the transformation of the wholesale business. Interview: Quynh Tran. Digitalisation initially only stood for the transfer of content on analogue data media to digital systems, for instance from paper to CD-ROMs and disks.
With the irresistible rise of the Internet, the process has taken on a completely different dimension. Today, even objects, spaces, and processes are digital. Within the fashion industry, e-commerce has shown the full effect of digitalisation. While people still doubted online shops ten years ago, it has become clear that online retailing has already changed the market completely.
This concerns all factors connected with process and efficiency optimisation, as well as all customer interfaces. Digitalisation is not about merely setting up an online shop. New technologies make more and more steps in the manufacturing process increasingly efficient. Virtual 3D models of clothing items simplify the. Today, it takes up to a year until a collection makes it into the stores.
Reducing this timeframe is a blessing that the fashion industry expects the digitalisation to deliver. Even the inventory and delivery of clothing can be optimised by digital means. In the meantime, Zara, a subsidiary of Inditex, has also implemented the technology and aims to have RFID technology in all production sites and stores by It will monitor the inventory automatically and will save time and money.
The Challenges of the Retail Industry. Digitalisation had - and still has - the greatest impact on the retail industry. The rise of e-commerce - led by the likes of Asos and Zalando - has fundamentally changed the market, especially the retail sector. But instead of cannibalising each other, the stationary and digital worlds are merging rapidly. One-way strategies no longer work in times of highly demanding customers; multi-channel and omni-channel strategies are the order of the day.
This leads. Nevertheless, the majority of sales are still generated in stationary retailers. For customers, the direct contact and expert advice remains valuable and important. How can I give adequate purchase suggestions based on the buying history? In turn, this represents a learning opportunity for stationary retailers. We, in our capacity as a classic retailer, see this as a huge challenge, especially as we entered the online segment relatively late and had to transfer our stationary concept into the digital world with limited resources. That involves content that goes beyond the product itself and emotions.
In order to transfer the shopping experience into the virtual realm, one needs individual storytelling and an editorial mindset. There really is no alternative to an own web shop. Farfetch, a global online platform, currently showcases the product ranges style in progress Farfetch handles marketing, sales, and logistics while participating in the generated profits - a model that combines and shares resources.
When Wholesale Goes Digital. Tommy Hilfiger introduced an entirely different sphere of digitalisation when it launched its digital showroom. Instead of flipping through samples on a rack, the retailer now simply picks up an iPad. He can then view the items on a display dummy on a big screen, turn it degrees, zoom in, alter materials and colours, and retrieve all sorts of background information.
The whole idea of wholesale is completely outdated. This generation is used to doing everything online and those are the buyers of tomorrow. They want a digital showroom. They want to come to the market, but they want to buy on the screen. People have become accustomed to doing things on screens. You can view your orders and change colours or quantities, instead of grappling with countless paper punches. This concerns the retail trade, trade shows, and communication channels. Digital structures also create new floors and spaces. In both the retail world and at trade shows, one can create key product displays that are particularly special and brand-conscious.
The remainder is shifted from the racks into the digital space. The digitalisation of order processes is not our core mission. Tommy Hilfiger is equally innovative in its own retail department. In the Tommy Hilfiger stores, customers will be afforded access to a larger product range via iPads. The products can be purchased on location. This is a concept that Adidas has also already implemented with its adiVerse touch screen walls.
Topshop has even introduced a Tweet Mirror, which communicates real-time reactions to the outfit chosen by the customer. You have to convince the customers of your brand. Today, the customer is faster than the companies, which is rather dangerous. One needs to be willing to let changes flow into the company and have visions of how it will look tomorrow.
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For the first time, young men think about how they come across, utilise fashion consciously to express their identity, and absorb fashion. The awareness for fashion has been changed greatly by this selfie culture; it already has an effect on the fashion industry and will have an even greater effect in the future. When all these kids, who have grown up with social media channels, earn money, it will have a huge effect on fashion sales. The ultimate aim is to heighten the awareness and relevance of a brand among consumers, promote desires, and ultimately trigger a buying impulse.
This is going to be extremely important, in this context, to reinforce the image of a brand. Today, customers are not only well-informed and active in terms of fashion, but they also influence the production process. Opinions in social media have a significant influence on product ranges.
Corporations such as. Cosmetics manufacturers such as Bobbi Brown or Mac even go so far as to let the consumers choose the colours for the upcoming season via Facebook likes. Fashion companies also rely increasingly on the opinions of their customers and allow them to customise products. The choices are then transferred to the production site digitally and the customised product can be picked up at the store two weeks later. The production processes will be shortened extremely by digitalisation.
In order to make the process paperless, analytical, and efficient, she started Joor in Today, about 40 percent of the orders come from Europe, while European designers sold about 1. Text: Petrina Engelke. Photo: Joor. Showrooms certainly have their place, in fact most of our clients use the Joor platform in the showroom to place their orders. However, there was also a demand for a way to find items for your store without having to leave it. That has been a game-changer for small businesses and e-commerce start-ups. Resort collection, high summer collection, pre-fall: There are more and more attempts to sell new collections.
What direction do you think this is taking? I think newness is a trend that is not diminishing. Consumers want differentiation and it is important to inject that newness into collections throughout the year. There is no hard and fast rule. Successful brands. The most interesting and surprising trend to keep an eye on has been the lingering effect of fast fashion, where brands move their products from runway to stores very quickly in an attempt to remain in trend.
Fashion will always to a certain extent be related to the season because people will never want to wear fur in August regardless of what the trends dictate. Fashion and technology are becoming increasingly interconnected. Clothing is becoming increasingly concerned with functionality, and functional items are increasingly becoming concerned with being stylish.
Last year Apple decided to become a watch-company and Fitbit became a fashion and fitness accessory. We know that the line will continue to blur. With Joor, Mona Bijoor digitalized wholesale for apparel and accessories — and made it easier. Ultimately, she wants to bring her service not only to the fashion industry, but also aims to help the furniture and toys sectors. The art is to cross borders and to transform divisive factors into unifying ones. Illustrations: Claudia Meitert Caroline Seidler. Photos: Interviewees. Those with a sufficient online presence can rely on stationary locations that only well-informed customers can find.
The product range does not only include fashion by designers such as Achtland, Stine Goya, Kaviar Gauche, Baum und Pferdgarten, Just Female, and Malaika Raiss, but also accessories, jewellery, stationery, and electronic gadgets, as well as beauty and interior articles. The products are showcased in the ambience of an airy loft atmosphere. Last year, Sue M. Lee, the fashion designer and founder of Stylealbum, opened a three-month pop-up store in Bilker Allee, which was her first foray into the world of stationary retailing.
She had launched her online shop eight years earlier. So why did she opt for a permanent stationary presence after all? The environment is important for the presentation of products and the personal approach to style in progress. The photos on the Internet sometimes fail to do the elaborate processing of the designer items justice. The pop-up store has proved that the customers enjoy being advised. They like having the products explained and being shown combination possibilities. The main focus is not on shopping itself, but on creating an experience. Nevertheless, the combination of the offline and online worlds is vital to ensure that we can offer the best service possible.
Concept stores such as Voo Store in Berlin or Merci in Paris prove that backyard locations can be quite successful. We plan regular events in the store, such as readings, movie nights, and product presentations. We strive to provide incentives to visit us on a regular basis. Sue M.
Lee is a fashion designer in her own right; for Stylealbum, her online store, she often selects collections that need explaining. The timing for her new, stationary store is perfect. Together with Andreas Haderlein, a business journalist and innovation consultant, she set out to introduce multi-channel retailing to the city. Many of the participating retailers are owner-managed stores from the fashion, jewellery, food, and furniture sectors. Therefore, we are thrilled to have found a partner in atalanda, an Austrian company that offers the platform for the marketplace itself and handles the logistics for same-day delivery.
That is an unbeatable competitive advantage. The delivery of ordered online products is organised by the delivery company MyCocktail Taxi, which utilises its fleet to capacity. If you order before 4. The concept is clearly convincing. The participating retailers report an increased customer frequency, on their respective sales floors mind you!
In some cases, retailers have experienced double-digit sales increases. The online presence specialist atalanda is currently in talks with no less than cities. In addition, the city will soon open a drive-in counter where customers can comfortably pick up and return parcels from their car. Christiane ten Eicken, the project manager, reports an increase of customer frequency and revenue.
Helga Kresnik, the managing director, is always accessible for her customers, either on-site, by telephone, and, since June , also online via the personal shopping platform mywomanstore. It all began seven years ago, when the friend of a customer asked about the source of a particularly fetching outfit. Kresnik simply sent her an outfit per post and has successfully repeated this service ever since.
Her website, which is basically a curated shopping platform, offers online what she already offers over-the-counter. Customers register on the website by supplying personal details and preferred tastes. They are then contacted by the styling team via telephone and e-mail to fine-tune the profile. In exchange for a guarantee, the customers are sent a personalised style in progress. How does Kresnik differ from other curated shopping platforms? We still have much to learn about the Internet, but we have a lot of experience in terms of advice and are much closer to the customer.
Besides Facebook likes and a steady flow of new registrations, the platform sent out no less than 10 surprise packages in its first month in operation. Ten packages in the first month are certainly an excellent start. The Dutch label Amsterdenim does not want to create competition for its retailers with its own web shop.
This is why the brand has decided to pass on the proceeds from online sales to its stationary retailers. Amsterdam is perceived as the unofficial denim capital of the world. Therefore it comes as no surprise that Ben Fokkema decided to proudly name his label Amsterdenim. The logo reflects what makes Amsterdam so special: the historic old town with its many bridges, picturesque canals, and intricate gables.
In the best tradition of Dutch merchants, Fokkema has also developed a truly likeable business model. Retailers that decide to list Amsterdenim items are afforded the opportunity to sign up for the Online Community Programme.