The boss at one of France’s biggest internet retailers has called an end to the first phase of global e-commerce growth and said pureplay retailers must now prepare to embrace the multichannel world.
Jacques-Antoine Granjon, founder and CEO at Paris-based fashion etailer Vente-Privee.com said that pure internet retailers, including Asos, need to focus on the best ways to connect with shoppers and not cling to the past.
‘Now is the end of the first part of this revolution. In the first place it was a tool but now it is back to what you sell. For me it is the end of pureplayers. They are finished.
'The future is multichannel and cross-channel. E-commerce is just a new distribution channel,' he said, Speaking at the World Retail Congress in Paris this week.
He explained that he believed Asos would 'go into stores on Regent Street, the Champs Elysees, New York and Tokyo eventually. One day they will have a board meeting and say they want to be there.'
He put the success of his own online business down to understanding the fundamentals of the business. 'Great deals will drive traffic. You feed your traffic with the offers and the traffic feeds your website. Our DNA is inventory and the internet drives this model. The internet is a mail order company, only faster,' he said.
'You need to answer your customer, not with a stupid mail that you send to everyone but with a voice that makes them know you are behind the screen and taking care of them,' he said.
Granjon also stressed the importance of brands: 'Brands are the future. The Chinese have been making brands for the whole world, and now they are buying them. In the future they will want to sell brands to the world. We need to look at the way things are changing. In the future people will give phones to their children almost when they are born, because they will want to track them. At Vente-Privee we do 40 per cent of our sales through smart phone.'
'Amazon is a brand that creates trust and then it created a marketplace, for smaller retailers to use, and now it makes products. Amazon is now a brand,' he said.
Friday, 11 October 2013
Amazon Remains World's Most Trusted Retailer - But Crown Slips
Amazon remains the world's most trusted retailer despite widespread criticism of its tax affairs in the UK and labour disputes in Germany.
The internet giant topped a poll of 30,000 shoppers across nine countries according to the research by OC&C, unveiled at the World Retail Congress in Paris this week. But OC&C said that its crown has 'very much slipped'.
Consumers were asked to rank nearly 600 retailers on a range of factors such as trust, value for money, service, product, and multichannel capability.
Amazon retained the top spot despite losing trust in both Germany, where it has faced a series of strikes, and the UK, where it has faced pressure over its tax affairs. Its overall score dropped 4.3 per cent to 88.6 per cent.
Amazon is not the only retailer to face trust challenges in 2013 according to the report. It found Tesco’s reputation had suffered from the horsemeat scandal, and in the US Zappos, which was hit by a scandal after it lost customer data, and Neiman Marcus, who was embroiled in criticism over its use of real fur in artificial fur products, were big casualties.
'Trust has historically proven to be the most important factor in driving overall consumer perception of a retailer and has long been a core strength of Amazon’s across multiple markets,' said OC&C.
'Amazon’s recent experience in Germany shows how fragile trust can be and the impact it can have across consumer perceptions of a whole proposition,' said OC&C, who carried out the survey for the fourth time. Amazon won for the second time.
Amazon was still ranked top for its wide choice of products and value for money. Primark was ranked highest for low prices and John Lewis for customer service.
The internet giant topped a poll of 30,000 shoppers across nine countries according to the research by OC&C, unveiled at the World Retail Congress in Paris this week. But OC&C said that its crown has 'very much slipped'.
Consumers were asked to rank nearly 600 retailers on a range of factors such as trust, value for money, service, product, and multichannel capability.
Amazon retained the top spot despite losing trust in both Germany, where it has faced a series of strikes, and the UK, where it has faced pressure over its tax affairs. Its overall score dropped 4.3 per cent to 88.6 per cent.
Amazon is not the only retailer to face trust challenges in 2013 according to the report. It found Tesco’s reputation had suffered from the horsemeat scandal, and in the US Zappos, which was hit by a scandal after it lost customer data, and Neiman Marcus, who was embroiled in criticism over its use of real fur in artificial fur products, were big casualties.
'Trust has historically proven to be the most important factor in driving overall consumer perception of a retailer and has long been a core strength of Amazon’s across multiple markets,' said OC&C.
'Amazon’s recent experience in Germany shows how fragile trust can be and the impact it can have across consumer perceptions of a whole proposition,' said OC&C, who carried out the survey for the fourth time. Amazon won for the second time.
Amazon was still ranked top for its wide choice of products and value for money. Primark was ranked highest for low prices and John Lewis for customer service.
Thursday, 10 October 2013
Ocado Plans Global Network With Dozens Of Distribution Hubs
The chief executive of online grocery firm Ocado said he wants a global network with dozens of distribution centres by the end of the next decade.
Tim Steiner, whose firm has two main distribution hubs - or fulfilment centres, was responding to a brokers report from Goldman Sachs that it would have 24 by 2030.
Steiner told The Daily Telegraph he envisaged having ‘a lot more than that' buoyed by partnerships with retailers across the globe similar to the one he signed with Morrisons in May.
Earlier this week, speaking at the sidelines of the World Retail Congress in Paris, Steiner told news service Reuters that he had been bombarded with calls from overseas retailers from Europe, the Americas and Australasia.
He told them: 'We do expect to do more Morrison-esque transactions to monetize our technology. We need to develop software which you can plug and play. We could do one, then three, then nine,' Steiner said, referring to how Amazon had quickly signed up an army of suppliers to its marketplace once it had mastered the technology.
He said he plans to increase the number of technology-focused staff from 350 now to 450 in a year's time.
Amazon is also understood to be looking at developing a food delivery offer that could soon be heading for Europe.
Meanwhile, the Goldman Sachs report said Ocado will be able to continue its expansion from cashflow and without raising more debt or finance. It said that by 2030 the network of distribution centres could generate £15 billion in revenue. Goldmans also said it expected Ocado to open another distribution centre as soon as next year.
Ocado also operates a number of smaller distribution hubs or 'spokes' from the central warehouse in Hatfield. The second warehouse in Dordon, Warwickshire, which it has leased to Morrisons, will begin delivering by January.
Tim Steiner, whose firm has two main distribution hubs - or fulfilment centres, was responding to a brokers report from Goldman Sachs that it would have 24 by 2030.
Steiner told The Daily Telegraph he envisaged having ‘a lot more than that' buoyed by partnerships with retailers across the globe similar to the one he signed with Morrisons in May.
Earlier this week, speaking at the sidelines of the World Retail Congress in Paris, Steiner told news service Reuters that he had been bombarded with calls from overseas retailers from Europe, the Americas and Australasia.
He told them: 'We do expect to do more Morrison-esque transactions to monetize our technology. We need to develop software which you can plug and play. We could do one, then three, then nine,' Steiner said, referring to how Amazon had quickly signed up an army of suppliers to its marketplace once it had mastered the technology.
He said he plans to increase the number of technology-focused staff from 350 now to 450 in a year's time.
Amazon is also understood to be looking at developing a food delivery offer that could soon be heading for Europe.
Meanwhile, the Goldman Sachs report said Ocado will be able to continue its expansion from cashflow and without raising more debt or finance. It said that by 2030 the network of distribution centres could generate £15 billion in revenue. Goldmans also said it expected Ocado to open another distribution centre as soon as next year.
Ocado also operates a number of smaller distribution hubs or 'spokes' from the central warehouse in Hatfield. The second warehouse in Dordon, Warwickshire, which it has leased to Morrisons, will begin delivering by January.
Online Sales Rise 13.4% In September, Says BRC
E-commerce sales remained solid in September despite the month being the weakest so far this year for the retail sector as a whole.
Online sales, excluding food, rose 13.4 per cent compared to the same month last year and contributed a third of the sector's overall growth in the past quarter. Total retail sales increased 2.4 per cent in the month.
The rise in internet shopping was ahead of the 11 per cent increase in online sales seen over the past 12 months. Sales over the internet now represent 17.5 per cent of total non-food sales. said the BRC, which mainly measures sales at larger retailers.
'Online sales were again the stand out performer, growing by double digits, and contributed strongly to non-food sales such as electricals and leisure items,' said Helen Dickinson, director general of the BRC launching the Online Retail Sales Monitor - a more in depth analysis of the online sector than it has previously done - as part of its sales report for the first time.
Dickinson said that, without the contribution of online sales growth, clothing and footwear would have declined in September.
David McCorquodale, head of retail at KPMG, said of the weak overall picture for the retail sector: 'These figures are a reality check and will make retailers nervous as we enter the run up to Christmas. Unseasonably warm weather stifled sales of autumn and winter collections in September and the recovery in home related items flattened.'
Online sales, excluding food, rose 13.4 per cent compared to the same month last year and contributed a third of the sector's overall growth in the past quarter. Total retail sales increased 2.4 per cent in the month.
The rise in internet shopping was ahead of the 11 per cent increase in online sales seen over the past 12 months. Sales over the internet now represent 17.5 per cent of total non-food sales. said the BRC, which mainly measures sales at larger retailers.
'Online sales were again the stand out performer, growing by double digits, and contributed strongly to non-food sales such as electricals and leisure items,' said Helen Dickinson, director general of the BRC launching the Online Retail Sales Monitor - a more in depth analysis of the online sector than it has previously done - as part of its sales report for the first time.
Dickinson said that, without the contribution of online sales growth, clothing and footwear would have declined in September.
David McCorquodale, head of retail at KPMG, said of the weak overall picture for the retail sector: 'These figures are a reality check and will make retailers nervous as we enter the run up to Christmas. Unseasonably warm weather stifled sales of autumn and winter collections in September and the recovery in home related items flattened.'
AO.com Launches Same Day Delivery
Appliances Online - now trading as ao.com - plans to launch a same day delivery service for its white goods products.
The retailer, which is understood to be preparing plans to float its business, has created a network of 10 ‘outbases’ across the UK supplied by its main warehouse in Crewe to facilitate the plan.
If customers order by midday they will, from this week, have the option of receiving their product between 4:30pm and 10pm that evening for a charge of £29.99.
The company is also adding an option for next day delivery nationwide for orders placed before midnight, seven days a week, for £9.99.
Chief executive John Roberts boasted it as 'a revolution in customer service for white goods'.
The company said in a statement: 'This addresses the inconvenience suffered by customers who either have to take time off work or be without essential appliances for a number of days. ao.com’s new delivery service recognises this and is reflective of the company’s relentless obsession, and absolute focus upon, providing industry-leading levels of customer service.'
The new service will be launched with a 'heavyweight' TV campaign commencing tomorrow.
Last month it emerged that ao.com had appointed investment banks JP Morgan and Jefferies as it prepares for a £300 million flotation on the London Stock Exchange as soon as the end of this year.
The retailer, which is understood to be preparing plans to float its business, has created a network of 10 ‘outbases’ across the UK supplied by its main warehouse in Crewe to facilitate the plan.
If customers order by midday they will, from this week, have the option of receiving their product between 4:30pm and 10pm that evening for a charge of £29.99.
The company is also adding an option for next day delivery nationwide for orders placed before midnight, seven days a week, for £9.99.
Chief executive John Roberts boasted it as 'a revolution in customer service for white goods'.
The company said in a statement: 'This addresses the inconvenience suffered by customers who either have to take time off work or be without essential appliances for a number of days. ao.com’s new delivery service recognises this and is reflective of the company’s relentless obsession, and absolute focus upon, providing industry-leading levels of customer service.'
The new service will be launched with a 'heavyweight' TV campaign commencing tomorrow.
Last month it emerged that ao.com had appointed investment banks JP Morgan and Jefferies as it prepares for a £300 million flotation on the London Stock Exchange as soon as the end of this year.
Wednesday, 9 October 2013
Online Giant N Brown Reports 8% Rise In Sales
Sales at online and catalogue giant N Brown rose 8 per cent in the past six months after the company attracted younger shoppers.
The company reported sales of £409.6 million this morning and said profit increased 7.1 per cent to £45 million in the first half ending August 31.
Recently recruited chief executive Angela Spindler said: 'I have spent my first three months looking at the business in detail and I am extremely excited by what I have seen. As these results demonstrate, the business is performing well, with significant opportunity for growth in the future based around our products, delivery channels and international development.'
The company trades from web sites including VivaLaDiva.com and Figleaves.com. It has also been opening stores for its young fashion brand SimplyBe.com, targeting ages 30 to 45, and men's brand Jacamo.
The company reported sales of £409.6 million this morning and said profit increased 7.1 per cent to £45 million in the first half ending August 31.
Recently recruited chief executive Angela Spindler said: 'I have spent my first three months looking at the business in detail and I am extremely excited by what I have seen. As these results demonstrate, the business is performing well, with significant opportunity for growth in the future based around our products, delivery channels and international development.'
The company trades from web sites including VivaLaDiva.com and Figleaves.com. It has also been opening stores for its young fashion brand SimplyBe.com, targeting ages 30 to 45, and men's brand Jacamo.
Tuesday, 8 October 2013
SecretSales.com Launches New Customer Loyalty Scheme
SecretSales.com has launched a new customer loyalty scheme which allows shoppers to collect points and get money off purchases.
Customers taking part will collect five points for every pound spent and receive a £5 voucher each time they reach 500 points.
Robert Moss, chief marketing officer, said the scheme was launched following 'extensive marketing research and customer feedback'.
'We are constantly striving to differentiate ourselves from our competitors and are certain that this unique offering in our market will help us stand out from the crowd, enabling us to retain our position as the number one choice for discerning shoppers looking for excellent value,' he said.
The company is poised to release 'significant growth' for its full financial year in the coming weeks. It revealed revenue growth of 80 per cent in the first half.
Customers taking part will collect five points for every pound spent and receive a £5 voucher each time they reach 500 points.
Robert Moss, chief marketing officer, said the scheme was launched following 'extensive marketing research and customer feedback'.
'We are constantly striving to differentiate ourselves from our competitors and are certain that this unique offering in our market will help us stand out from the crowd, enabling us to retain our position as the number one choice for discerning shoppers looking for excellent value,' he said.
The company is poised to release 'significant growth' for its full financial year in the coming weeks. It revealed revenue growth of 80 per cent in the first half.
Asos Wins Legal Dispute Over Brand Name in Europe
Online fashion store Asos has won a legal dispute over the use of its brand and domain name.
The case was brought by Swiss cycling brand Assos which has been operating since the mid 1970s and which sells technical clothing and all-weather gear in 37 countries including the UK on sites like Wiggle.
Assos, which means the best in Greek, also operates from its own site Assos.com. The case rose concerns over the similarity of the names and whether confusion may arise between the two brands.
Drapers magazine said Assos lost the case and now must restrict its trademark to cycling clothing and pay legal fees of £500,000.
Simon Bennett at infringement law firm Fox Williams told the magazine: 'Assos had a good case but the fact they had co-existed without confusion for eight years counted against it.'
The case was brought by Swiss cycling brand Assos which has been operating since the mid 1970s and which sells technical clothing and all-weather gear in 37 countries including the UK on sites like Wiggle.
Assos, which means the best in Greek, also operates from its own site Assos.com. The case rose concerns over the similarity of the names and whether confusion may arise between the two brands.
Drapers magazine said Assos lost the case and now must restrict its trademark to cycling clothing and pay legal fees of £500,000.
Simon Bennett at infringement law firm Fox Williams told the magazine: 'Assos had a good case but the fact they had co-existed without confusion for eight years counted against it.'
Monday, 7 October 2013
Perfume Shop Drafts In Raynor To Drive Ecommerce
High Street chain The Perfume Shop has drafted in former Austin Reed Group e-commerce chief Phil Raynor as part of an online overhaul.
Raynor, owner of Econsult, was formerly head of ecommerce at Austin Reed and, prior to that, in the same role at Maplin Electronics. For that past 18 months he has worked with Richemont advising on aspects of the luxury goods group's internet strategy.
Raynor will take the nominal role of consultant head of programme management at The Perfume Shop.
The Perfume Shop is owned by international retail group and Superdrug-parent AS Watson and has 256 shops.
Raynor, owner of Econsult, was formerly head of ecommerce at Austin Reed and, prior to that, in the same role at Maplin Electronics. For that past 18 months he has worked with Richemont advising on aspects of the luxury goods group's internet strategy.
Raynor will take the nominal role of consultant head of programme management at The Perfume Shop.
The Perfume Shop is owned by international retail group and Superdrug-parent AS Watson and has 256 shops.
Austin Reed Group And Crew Sign Up To Virtual Fitting Room Fits.me
A raft of new clothing retailers including Austin Reed Group's brands and Crew Clothing have signed up to virtual fitting room Fits.me.
Austin Reed and the group's other labels Viyella and CC Fashion are among a number of UK brands that have signed up recently such as Musto, M&Co, Baukjen and QVC as well as overseas labels such as Denmark's Bilka, Holland's Top Vintage and Wahcoma from the US.
They join brands such as Superdry, Hugo Boss, Thomas Pink and LK Bennett on the roster which now totals 23 labels in nine countries. The latest signings come on the heels of a £5 million investment in April for the service from investors including SmartCap, Conor Venture Partners, Fostergate Holdings and The Entrepreneur's Fund.
Fits.me, based in London, argues that it can significantly reduce returns to online retailers - one of the biggest issues facing online fashion retailers at the moment. It works by taking a series of photographs of each item on a robotic mannequin that changes shape to represent different body types. These are then compared to measurements provided by shoppers.
Fits.me co-founder and chief executive Heikki Haldre said demand for services that help reduce returns have increased sharply this year and virtual fitting rooms have become a 'vital weapon' for retailers.
'As the proportion of onine sales increases, so do retailer's overall garment returns rate. That attracts attention - and pressure to deal with it - from across the business,' he said.
He said it could also help encourage those reluctant to take the plunge into online fashion shopping and 'improve stubbornly high conversion rates.'
Fits.me vice-president of sales Peter Rankin said: 'Our analytics results show that, across the board, shoppers who use the virtual fitting room are twice as likely to convert into a sale as those that don’t. Concluding a sale, in the size that the shopper wants, there and then, reduces the likelihood of the shopper looking and purchasing elsewhere, and ecommerce directors in competitive clothing sectors are very aware of that.'
Austin Reed and the group's other labels Viyella and CC Fashion are among a number of UK brands that have signed up recently such as Musto, M&Co, Baukjen and QVC as well as overseas labels such as Denmark's Bilka, Holland's Top Vintage and Wahcoma from the US.
They join brands such as Superdry, Hugo Boss, Thomas Pink and LK Bennett on the roster which now totals 23 labels in nine countries. The latest signings come on the heels of a £5 million investment in April for the service from investors including SmartCap, Conor Venture Partners, Fostergate Holdings and The Entrepreneur's Fund.
Fits.me, based in London, argues that it can significantly reduce returns to online retailers - one of the biggest issues facing online fashion retailers at the moment. It works by taking a series of photographs of each item on a robotic mannequin that changes shape to represent different body types. These are then compared to measurements provided by shoppers.
Fits.me co-founder and chief executive Heikki Haldre said demand for services that help reduce returns have increased sharply this year and virtual fitting rooms have become a 'vital weapon' for retailers.
'As the proportion of onine sales increases, so do retailer's overall garment returns rate. That attracts attention - and pressure to deal with it - from across the business,' he said.
He said it could also help encourage those reluctant to take the plunge into online fashion shopping and 'improve stubbornly high conversion rates.'
Fits.me vice-president of sales Peter Rankin said: 'Our analytics results show that, across the board, shoppers who use the virtual fitting room are twice as likely to convert into a sale as those that don’t. Concluding a sale, in the size that the shopper wants, there and then, reduces the likelihood of the shopper looking and purchasing elsewhere, and ecommerce directors in competitive clothing sectors are very aware of that.'
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