Tweets on the Rise

According to Hitwise (June 2011) Twitter (along with Youtube) was the fastest growing social network in May. Indeed, the article states that Twitter had its biggest ever month of UK internet visits, peaking on 21 May when the website accounted for 1 in every 184 internet visits. Facebook, on the other hand, which is currently the market leader for social networks, has suffered a decline in their market share of visits for the third consecutive month in May.

This information indicates a turn in the tide for social networks. Since its launch Facebook as grown and grown to unprecedented market success for social networks, but 2011 appears to be the year in which this will end. Clearly, the figures indicate the rising importance of Twitter- and thus one that fashion retailers need to be aware of. I think Twitter is so appealing because it provides people with instant information and instant news that is easy to digest at a glance. This is key for retailers- any news about trends, new products or the company should be posted to their loyal group of followers, who can keep up to the minute with the retailer. Facebook is a great place for catching up with friends, keeping in touch, but it does not provide the same news updates that Twitter does, and should not be viewed as a comparison in this way.

Over the past year, retailers have scrambled to get on Facebook and Twitter, just to increase the interactivity of the company with the consumers, or, more likely, because everyone else was. Now, I think the time has come, where retailers need to operate two different strategies for their Twitter and their Facebook, because it is becoming increasingly apparent that they are two very different social networks. Twitter offers retailers a platform for short, snappy soundbites of news to keep consumers up to date. Facebook, on the other hand, should be used as a more interactive forum for retailers to display products and allow consumers to comment and communicate with each other- I think product reviews would be a welcome addition to this page, and help to keep it fresh.

Fashion on-the-go

Smartphones were first introduced in the late 1990s but were originally regarded as business tools, mainly because of their high cost prices (Mintel, July 2010). However, contracts have made Smartphones cheaper, and therefore more accessible to the mass market, which explains the “growth in internet access via mobiles between 2007 and 2009, almost quadrupling to 7.5% of adults” (Mintel, July 2010). 2010 has seen a rise in the number of specialised branded shopping applications which will enable consumers to have access on the go (Mintel, July 2010). “This will enable retailers to take advantage of ‘dead time’ encouraging mobile internet users to shop while waiting for a bus, for example” (Mintel, July 2010).

Apple is clearly the market leader, as the store accounts for 25% of the smart phone market in the U.S., and globally in 2009 the iPhone had a 14.4% market share (Ali, 2010). This is reflected in that fact that most mobile apps produced by UK retailers are specific to the iphone. For example, shoe retailer Barratts has an iphone app:

“Featuring all our latest footwear collections and must haves for Spring 2010. We have also created a dedicated website so that you can give us your feedback on what you want to see and how we can tailor it your needs”.

This is fantastic way to encourage more interaction between the consumer and the retailer. The app allows users to take a picture of the outfit that they want to match their shoes, use a fast search engine to find the right pair, with a wide range of brands, styles and colours. There is also a feature that enables users to find a personalised pair of shoes based on their birth month. The app displays the store’s latest collections, new styles, and fashion trends (featuring 5 of the latest trends with ideas on how to wear them). This is a particularly interesting mobile app and its wide range of features makes it very attractive to users, who can be up to date with style trends on-the-move (i.e. on a shopping trip!).

However, not everyone can afford the iphone, but most still want a smartphone, and so they miss out on many fashion apps. This is an opportunity missed for retailers. “Apps may be flashier and more fashionable, but retailers should consider a mobile website as a starting point for their mobile commerce strategy” (econsultancy). Thus if retailers produced mobile sites as opposed to just iphone apps, then they could reach a much wider audience.

US vs UK

Furthermore, a recent multichannel retailing survey conducted by BT Expedite found that while 23% of US retailers have mobile commerce presence, and 47% plan to, only 5% of UK retailers have m-commerce apps, while just 24% are planning to (econsultancy 2010). This shows that America is way ahead of the UK in embracing the new technological platform that consumers are now showing an interest.

The CEO of ‘Mobile Flow’, Ade Bamigboye, commented on the reasons why m-commerce has not been as widely used in the UK as the US:

“One of the reasons why mobile commerce has been slow to take off in the UK is that the early and still widely promoted mobile payment schemes revolve around Premium SMS and PayforIt. Both of these schemes and other well known alternatives are known for their high transaction costs and limits on the “basket size” which make it totally unattractive for most retailers.

Given the predictions in growth for mobile commerce all retailers will have more than a passing interest in mobile commerce. For retailers to adopt mobile commerce more readily and more broadly, secure, cost effective transactional capability must be readily available.”

Not everyone is convinced

Undoubtedly the biggest drawback to shopping on a mobile phone is the inability to view items as clearly as you could on a website, and especially not being able to touch the item or try it on like in-store. Some retailers are attempting to combat this with zoom features, but it is still a far cry from website viewing.

Moreover, Stephen Thair, Director at Seriti Consulting, does not believe m-commerce is worth the hassle:

“Developing a slick mobile experience takes a substantial amount of time and effort... and for many of the clients I have talked to with the traffic and the sales revenue generated is so trivial that the ROI is highly negative.”

However, mobile commerce is still a new feature and dimension to fashion retailing, and so sales and traffic may increase considerably in the future.  As with all multi-channel platforms for retailers, when developing the mobile applications, they must ensure that they are consistent with the brand image. Net-a-porter is a good example of a retailer ensuring that this is the case, as the app is classy and chic:

“We are delighted to bring you the NET-A-PORTER WHAT'S NEW APP, a fashion shopping application for the iPhone and iPod touch”

They do iphone, ipod touch and ipad apps, and so clearly think m-commerce is a platform worth investing in. Net-a-porter advocate that with their app, consumers will “never miss the latest arrivals and fashion news with the ‘WHAT’S NEW’ feature. Users can scroll through a list of designers as well as:

·         Buy wherever you are

·         Create wish lists on the move

·         Read the weekly fashion news

·         Shop new arrivals twice a week

·         Share everything you see with your friends and family

“It's fabulous fashion in the palm of your hand.”

Net-a-porter’s app is sophisticated to look at and navigate, and well-developed in comparison to many fashion retailer’s apps. However, it does have a limited amount of stock displayed, which is letting this otherwise advanced app down.  

Mobile summary

So, m-commerce is still an up-and-coming feature for the UK fashion market. Success in the US is considerably higher and only tells of things to come in the UK. Currently, fashion retailers have mainly launched specific iphone apps, limiting their audience, and so an expansion to all smart-phones would be an effective way forward. Features on apps include the ability to browse products on the move, view trends or latest collections, see videos, locate the nearest store, and receive news/ updates. However, the apps are generally still in the launching phase, and so if they are to be a huge success, they need to be developed further. In order for this to be so, they should look to include at least all of the following, and more unique, individual features on top:

·         Ability to view all products in-store/ on website

·         Ability to purchase all products

·         Catwalk and video features will items modelled, as well as fashion shows

·         News updates and discount vouchers

·         Latest collection

·         Store locater

·         Interaction with the retailer via text format

These are a few ideas that could see the mobile application be the “next big thing”- if social media was the noughties, then m-commerce could be the ‘10s. The platform to succeed is in place now, it just needs tweaking and widespread acceptance by retailers, then consumer interest is bound to follow... watch this space..

The Future's Bright; The Future's Foreign?

Levy and Weitz (2004) define a multichannel retailer as: retailers that “sell merchandise or services through more than one channel” and in today’s society, where technology is constantly evolving, and online shopping is becoming increasingly popular and exciting, retailers have no choice but to embrace this strategy. The main reason for this is: profit. Put simply; the more channels a retailer has, the more consumers that retailer can target and the higher volume of sales it can achieve. While stores have restricted opening hours and may not be easily accessible for all consumers, the online site is a 24/7 shop. This must therefore be updated very regularly and must now start to provide the social elements that physical stores possess, such as sales assistants. Competition is also intensifying as consumers expect almost instant results and updates online. Retailers need to keep innovating and thinking of new ideas/ new applications in order to be seen as the best and most fashionable brand on the market. Consumers will constantly compare brands, meaning retailer’s need to have the most creative and engaging website, as well as the most unique ideas to promote and improve the customer’s experience. Furthermore, retailer’s social media activities must respond to consumer needs and queries in order to retain loyalty and provide an innovative platform in which consumers are able to express their views.

Yet the two biggest issues that retailers must tackle, and tackle well, in order to succeed, are:  

1.    Technology

Retailers need to keep up-to-date with the rapidly innovating technology of today. Smart phones are the latest “big thing” and boy have they taken off! Some fashion retailers have been quick to recognise this. For example, Topshop have created their own mobile App for iphones, in order to enable consumers to get their “fashion fix on the go”.

They update it five days a week, with over 300 new products- this is a phenomenal amount! Their main selling point is that consumers will always know what’s “new in” and can “save, send and share all their favourite looks”. Moreover, the app allows people to find their nearest Topshop store, wherever they are, which is a brilliant idea for when people are visiting new cities. This is a fantastic concept, and one that all fashion retailers should take heed of in order to engage further with their customers. However, the app must be consistent with the brand image to work as a marketing tool.

2.    Globalisation.

With the rise of the global economy, retailers are now under increasing pressure to expand into global markets. However, they need to have a researched strategy to do this. For instance, Marks and Spencers attempted to expand internationally in 1990, but by 2001 they had closed or sold all their 38 stores across France, Germany, Spain, Belgium, Luxembourg, the Netherlands and Portugal (The Guardian, October 2010). The Guardian reported on M&S’s failure:

“The shops traded well during the first two decades, but by 2000 the European division was making losses and the struggling retailer took an abrupt decision to close it down to focus on restoring its fortunes in the UK. It caused outrage in France and other countries as 3,350 M&S workers lost their jobs. The strength of the pound at the time, coupled with fierce competition from "upstart" clothing chains like H&M, contributed to the end of M&S's European dream”. (The Guardian, October 2010).

Similarly, the Telegraph commented on M&S’s failure to break into the Spanish market: “It failed largely because middle-class Spaniards did not warm to the brand, and because it was competing directly with El Corte Ingles, the country’s largest retailer, which had considerable brand loyalty and also targeted the expatriate market” (The Telegraph, November 2010).

It is clear from these reports that M&S did not do its research on the countries it expanded to and just presumed that its success in the UK would translate to success overseas. Clearly it is not that simple. However, after nearly ten years of closing all its international stores, Marks and Spencers is once more attempting to breech this international market. Have they learnt their lesson? It appears so. The retailer is approaching markets cautiously and, instead of targeting major cities like last time, it has concentrated on more low key locations, such as Marbella, which has a high proportion of Britons living there (The Telegraph, November 2010).   

The same can be said when looking to create international websites. Each country is different and so retailers that want success in international markets should cater for these countries on the web. Asos have done this successfully, as they gave free delivery in France on Bastille Day, which is a national holiday, therefore not only encouraging sales but also building trust in the brand by showing that they have done their research (Drapers, November 2010).

Delivery is still an issue when targeting overseas customers, as the costs are often high. For example, New Look deliver to over 120 countries. For the UK it is £3.95 for standard 2-3 days delivery, or next day delivery is £4.95-£6.95, Europe is £5.50 and Africa is £10. Considering New Look’s items are relatively cheap- the average price is probably about £15- then these delivery charges work out to be quite a high percentage of the overall cost. This therefore defeats the point of New Look’s appeal- people want nice fashionable items for less, but aren’t really paying less when the delivery charge is added. Thus, retailers will have to tackle this issue in the future. They are already combating it in ways such as “Free delivery” periods, for example, this week Amazon are delivering free to Spain if you spend over £25 (delivery is normally around £8). However, a more long-term strategy is needed, for instance, retailers could give consumers the choice: they could have their item the next day for £6, have standard 2-3 day delivery for £3-4, or wait a week or longer for free delivery. That way consumers will be able to pick their preference- if they need the outfit for a party the next day then they will pay for that, but if they have just bought something they like for everyday use they may not mind waiting in order to pay less.

Ultimately, consistency is the key to success for multi-channel retailers. Consistency in brand image is essential for identifying with their target market in order to create brand loyalty and therefore increase sales. Consistency in pricing across all channels is also important, as consumers will become confused as to whether they are getting the best deal when shopping, and annoyed if they buy something in-store and come home to see it cheaper online. The retailer has to be consistent to build trust with the customer, therefore channels need to compliment each other; retailers are facing enough competition without having to compete internally.

Retailers must offer a wide choice in their future campaigns, catering for the individual will become more and more important as shopping online becomes more interactive and more experienced-based. After all, consumers are not all the same. How do people want to shop? Retailers must offer a wider selection of options in order to cater for everyone, such as music, videos and different product viewing options- all of which can be selected to preference.

Hence, multi-channel retailers will succeed in this current demanding market, but only if all the channels are integrated well, offering a consistent, pleasurable and engaging experience for consumers.

The Social Media Bug

Social Media is the revolution of the “noughties”. This video captures how vast and influential this phenomena has been:

http://www.youtube.com/watch?v=z6ef8Cter1E

Social networks have grown in popularity because they are compelling places to connect and socialise online (Mintel July 2010). However, for some, social networks are also research tools - with 15% of respondents saying they use them to ask for information and advice (Mintel July 2010). These 15% are prime targets for retailers; people who want to gather style information will follow fashion retailer’s social media activities. Social media platforms enable retailers to interact more with consumers. Jayawardhena and Wright (2009) advocate that Web 2.0 technology should be used by e-tailers to encourage and stimulate involvement for consumers.

What do people want on retailer’s social media?

Boyd Thomas et al. (2007) found that the most common topic of discussion within the Fashion subgroup of myspace.com was personal style and fashion. This implies that consumers will follow fashion retailer’s social media in order to discuss and learn about style. Kim and Jin (2006) argue that in the current marketplace consumers may have higher tendencies to seek the advice of experts. Jepsen (2006) found that when researching products consumers prefer gathering information from virtual communities rather than commercial sources, and so these traditional sources of information are being “replaced” by virtual communities. This infers that consumers like to use social media for information because it is more personal and perceived as more truthful than advertising.

Fashion retailer’s social media activities

The main social network sites that fashion retailers are using are Twitter and Facebook. However, ASOS and Topshop, both in the top three popular fashion retailers with the largest social media following of any brands in the UK (Mintel June 2010), are also using Youtube. An investigation into their social networking has been undertaken....

ASOS Facebook

·         Does not distinguish between men and women- only one page

·         ‘Deal of the Day’ for women/ men. Pick one item in their current collection to advertise to consumers . e.g.

ASOS Women's Deal of the Day is this tailored empire seam shift dress available in red, yellow and blue for only £25 / €29 / $40 with FREE shipping worldwide. Get a further 20% off ASOS own brand with discount code: ASOS20 http://asos.to/tailoredempire

ASOS Deal of the Day for Women

COMMENTS:

Amy Green shame it's only in a size 10 :-(

Mandy Appleton its lovely, what a shame these deals always seem to be available in only 1 or 2 sizes

Ricarda Goltermann it's available in all sizes for me... but I don't have 25 quid

Lucy Ellan Higgins its available in all sizes, ive just bought one! use the code ASOS20 and its £20! xxx

·         Post promotional codes

·         Post company news and new stock/ brands that have come in

·         Consumers use ASOS’s Facebook to ask each other for advice, e.g.

Chun Lei Wu Are there anyone can recommend some party dress which fit ASIAN girls who have small breast?

Iulia Hărşan Any dress is not strapless will fit u( and try Bombshell bra from VS). I have a small'' body'' too :-)

Mimi Leung small breasts....opt for the one shoulder numbers or shift shaped ones with round neck lines

Topshop Facebook

·         Has separate men’s and women’s pages (Topman and Topshop)

·         Lots of questions asked by consumers- e.g. on delivery, on returns etc but the administrator never replies.

·         Topshop posts about new stock and store news e.g. student nights.

·         A lot of people seem to just comment on their opinion of the brand i.e. “I love Topshop”, or in some cases “Topshop is too expensive.

·         Promote new designers that they are stocking.

·         Consumers express their desire for stores in their country or city, e.g. Australia, Shanghai, L.A.

·         Topshop ‘Daily Fix’, e.g.

Topshop Today's Daily Fix - Premium Paperbag Waistband Leather Skirt

This leather skirt is set to become a wardrobe staple. It looks great dressed up or down.

Premium Black Paperbag Waistband Belted Leather Skirt - Topshop

www.topshop.com

Premium black paperbag style waistband leather skirt with tie waist belt, front zip fastening and two popper detail and black cotton lining. 100% Leather. Specialist dry clean only.

ASOS Twitter

·         More personal and interactive with consumers than their Facebook.

·         Respond to problems with orders e.g.

“I love @ASOS but I am generally REALLY unimpressed with their level of customer service.”

REPLY: “@MelleRobot Sorry to hear that. Can @ASOS_HereToHelp give you a hand at all?”

·         Advertise their new marketplace.

·         Promote new products.

Topshop Twitter

·         State latest Topshop news. e.g.

“Our lipsticks were a finalist in the @Grazia_Live beauty awards! Glad they love them as much as we do. You?”

·         Post promotions/ deals:

“Good news - there's now free delivery on all UK orders over £75!”

·         Do respond to people, but not frequently. e.g.

@Topshop_tweets I'm wearing TopShop gloss in 'Statement' today. A bit dry but fine with Clinique superbalm - v pretty

REPLY: @Disneyrollrgirl We love that one too!

·         Mainly the Topshop administrator posting about stock and store news- limited interaction with consumers (more than their Facebook page, but not as much as ASOS’s Twitter).

ASOS Youtube

·         Celebrity focus to their videos. e.g. Mike Posner tours the UK promoting new single, and briefly visits ASOS HQ:

“Straight out of Michigan and onto the airwaves, Mike Posner has made quite the internet stir with his debut single Cooler Than Me. Looking like Justin Timberlake's younger cousin, the fresh out of college 22-year-old popped into ASOS Towers to talk retro threads, X-rated fans and the coolest woman he knows”

http://www.youtube.com/asosfashion

This is about the image and celebrity endorsement- just meets the ASOS team

·         Although they do have other videos related to fashion e.g. Paris Fashion week:

http://www.youtube.com/asosfashion#p/u/2/W57FPS3gzHw

Shows the latest trends as they visit fashion shows all around the world.

Topshop Youtube

·         Videos are generally ‘Behind the scenes’. E.G. ‘Behind the scenes at the Christmas Shoot’:

http://www.youtube.com/user/TopshopPodcasts

·         All about brand image: cool, party-animal, very fashionable young women.

·         Added extra for lifestyle image of key target market to aspire to be like.

In sum, Facebook is being used to generally promote store/website events, new products and discounts. ASOS could improve this by separating men and women, and both retailers could interact more with consumers by answering direct questions. Topshop are using Twitter in a similar way to their Facebook site, with slightly more consumer interaction, but they definitely need to do more in this area. ASOS are using Twitter to interact with consumers and are doing this well; they have a quick response team and consumers are happier when getting answers. Youtube are being used by both retailers to promote their brand image. So, overall, Facebook can be successful in achieving commercial results through promotions, Twitter through interaction with customers, and Youtube by promoting brand image.

Truth is stranger than fiction...

E-marketing is an essential activity for fashion companies these days. Internet advertising is increasingly rapidly, so much so that it could soon overtake direct mail, and even TV advertising (Chaffey, 2008). There are six elements, deemed the ‘promotional mix’, in marketing:

• Advertising (pay per click advertising/ banner ads)
• Selling (avatars and chat)
• Sales Promotion (Incentives and rewards)
• Direct Mail (Opt in email newsletters)
• Word of Mouth (Viral, email a friend and links)
• PR (Social Media, blogs and feeds)

(Solomon et al., 2008)

This blog will be focusing on how current fashion retailers are conducting Word-of-Mouth marketing online. Word-of-mouth is a powerful and influential form of communication, because of the perceived objectivity and credibility associated with the parties involved (Cruz & Fill, 2008). Viral marketing has emerged as the electronic form of Word-of-Mouth and involves the principle of passing on, or referring, news, information or entertainment to another person (Cruz & Fill, 2008).

The advantages of viral marketing are the ability to spread the word about new products fast and to generate a buzz (Ferguson, 2008), coupled with low costs, and the ability to reach a large number of people, relatively quickly (Cruz & Fill, 2008). There are three popular ways that viral marketing is being conducted at present....

1.       Reviews

Many fashion retailers are encouraging their customers to write reviews about items they have purchased on their website. For example:

http://www.next.co.uk/shopping/women/smartcasual/41/1?extra=sch&n=women&pid=735-524&returnurl=%2fshop%2fgattgender%2dwomen%2dcat%2dtshirts%2d0%3fx%3d1%26nxti%3d0%26nxtv%3d0%23735%2d524&bct=%26quot%3bShop%20By%20Product%26quot%3b%26nbsp%3b%26gt%3b%26nbsp%3bWomen%26nbsp%3b%26gt%3b%26nbsp%3bT%2dShirts

By: Bacon roll

(read all my reviews)

During November

Location: Cambridgeshire

Gender: Female

Overall Rating: 

4 out of 5

Great Item

Good value for money, they wash and wear well and would recommend to a friend.

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By: JEMERLY

(read all my reviews)

During October

Location: telford

Gender: Female

My Style: Feminine

Overall Rating: 

5 out of 5

lovely items

these tops come in a pack of 3 i had the leopard skin, blue, & white.

the cut of the top is a lovely square neck type you can use these as causal or dressy i use them to go under my black trousers suit they are a good fit too and not short in the length

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By: Sam

(read all my reviews)

During October

Location: coventry

Gender: Female

My Style: Feminine

Overall Rating: 

4 out of 5

animal print looks lovely

Really nice tops, fit well, animal print looks lovely, white and navy are good too

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These reviews are seemingly reflecting the honest opinions of consumers. Some people seem to like telling others how they wear the items, emphasising their own personal style, whereas others offer helpful comments about the cut of the top and how it washes etc. People like to talk about their involvement with products and services because of the prestige & status acquired through ownership, or the need to share purchase experiences in order to help others (Cruz & Fill, 2008). Yet this gives consumers free reign with their opinions, and so if people have something negative to say about the product then they can, which could have potentially devastating effects for the sales of that item. Cruz and Fill (2008) found that companies recognised that they had a relative lack of control over the message and its distribution. Therefore companies seem to be taking that risk, and so must perceive the advantages of customer reviews as outweighing the disadvantages.

2.       Recommend to a Friend

Fashion retailers are now enabling consumers to send items they view on their website to a friend, via an email.  For example:

 

 

 

Lahana Jacket

£145.00

Charcoal

Wool/linen blend jacket with signature AllSaints branded horn buttons and crochet collar and front panel. The

·         Add to wishlist

·         Email a friend

·         Share/bookmark

http://www.allsaints.com/refer/?prod_desc_id=5051214792088

This option is a good way in which consumers can show their friends that they are thinking of them, and so recreates aspects of the shopping experience on a virtual level. This will, in turn, promote the brand. Over 40% of consumers are more likely to forward branded content (Ferguson, 2008). This comment applies to All Saints, as it is a fashionable brand but highly priced for the market it aims at (18- 30 year olds), and so is likely to be a ‘wish list’ item for special occasions.

3.       Fun Videos

Viral marketing can also be fun. Fashion retailers are using videos to promote their brand image, rather than individual items. For example:

http://www.youtube.com/watch?v=xGaZGm8e1D0&feature=channel

This video is funny, but also quite weird! It is not advertising individual French Connection clothes items, but more the brand image as a whole, which is shown to be fun. The impression given about French Connection consumers, is that they are women who always look good, but may not have much sense! These types of videos can be shared and sent to friends, which promotes brand awareness for French Connection, even if these people are not buying from the store. Interestingly however, the comments underneath this particular video highlight that it has not been well-received, and French Connection may have to rethink their image campaign, as people appear to think they are trying too hard.

Final word on the street...

Word-of-mouth is clearly an interesting and increasingly popular way of conducting e-marketing activities, but on its own cannot be the most important tool. Rather, word-of-mouth acts as an effective added-extra for the consumer. Reviews by real people about items can tip the sale, as peer-to-peer exchange is seen as trustworthy. However, this could just as easily work in reverse and put people off buying the item if others have been at all critical. This is highlighted by one of the comments underneath the French Connection video, which says: “Your clothes are beautiful, stop putting me off buying them”.

Other forms of advertising and marketing will have already sparked off the interest in the product beforehand. Viral marketing may therefore be an effective way to secure a sale and widen consumers’ experiences with the brand. This is summed up by Cruz & Fill (2008), who found that viral marketing was seen to be most effective when integrated with other marketing communication tools, best when reinforcing messages or providing the campaign with an element of shock value.