UK Market

Tactics to Grow Online Buyers

Digital Fashion Masterclass

DIGITAL FASHION MASTERCLASS

We ended the year in a very different situation

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Source: Life-for-Like Sales and Non-Food Online Sales provided by BRC. ** Online Visits provided by Hitwise.

+0.6%Like-for-like sales

In Dec 2017:

-0.7%Like-for-like sales

In Dec 2018:

+7.6%Non-food online sales

+5.8%Non-food online sales

+7.3%Online visits

-0.7%Online visits

DIGITAL FASHION MASTERCLASS

Online visits have slowed over the last 9 months

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0%

5%

10%

15%

20%

25%

07/18 08/18 09/18 10/18 11/18 12/18 01/19 02/19 03/19

Source: Hitwise, UK. Top 150 Fashion domains.

Hitwise Fashion 150 Online Visits YoY % Change

Visits in Q1 2019 have risen +4% YoY vs.

+18% YoY in 2018.

DIGITAL FASHION MASTERCLASS

Only the Premium Tier has trended upward

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-5%

0%

5%

10%

15%

20%

25%

30%

35%

07/18 08/18 09/18 10/18 11/18 12/18 01/19 02/19 03/19

Fast Fashion 50 Mid 50 Premium 50

Source: Hitwise, UK. Top 150 Fashion domains, split by top 50 budget, mid and premium tiers.

Hitwise Fashion Tiers Online Visits YoY % Change

Fast Fashion 50 and Mid 50 slowed, with Mid 50 dipping -1% YoY in November.

DIGITAL FASHION MASTERCLASS 5

Online Visits YoY Q1 2019But there are fast risers in each tier

Source: Hitwise, UK. Total visits in Q1 2019 YoY.

+104%

+78%

+23%

+78%

+53%

+31%

+34%

+27%

+21%

DIGITAL FASHION MASTERCLASS

What do these brands have in common?

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New Audiences Unique users all rose 20%+

Mobile Optimised Mobile rate rose 10%+

Search Increased generic searches

DIGITAL FASHION MASTERCLASS

Understanding the digital consumer for over 20 years| About Us

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Benchmark your performance against the competition by

audience, visits, and conversions.

MeasureUnderstand the

online behaviours of your consumers, and

pinpoint new segments to acquire.

DiscoverGet the best return on investment for paid and organic search, content,

media, and affiliates.

OptimiseTrack and improve

your campaign performance through daily, audience-first

analytics.

Lift

DIGITAL FASHION MASTERCLASS

Audience, Search and Product Analytics Tactics to Grow Online Buyers

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1. Closer monitor search – what’s the big trend for 2019?

2. Addition to search, track trending products within retailers

3. Map out your direct vs. indirect buyers

4. Understand what makes your buyers unique

DIGITAL FASHION MASTERCLASS

05-05 19-05 02-06 16-06 30-06 14-07 28-07 11-08 25-08

2017 Search 2018 Search

1. Closely monitor fast-moving & downstream searches The Cycling Shorts Phenomena

*Source: Hitwise, UK. Product page views on Feel Unique. July 2018 YoY.

Searches were up 23% YoY

13%

12%

7%

6%

5%

Wiggle

Amazon

eBay

Evans Cycles

Road

2017

13%

9%

7%

3%

3%

Amazon

PrettyLittleThing

Wiggle

Boohoo

H&M

2018

Fast Fashion has overtaken search

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DIGITAL FASHION MASTERCLASS 10

Feel Unique – Top Rising Product Pages 2. Identify product trends within retailers

Source: Hitwise, UK. Product page views on Feel Unique. July 2018 YoY.

+1937%Full Throttle Lipstick 2.4g

+789%Butter Lipstick 4.5g

+658%Matte Lipstick 4.5g

+751%Blemish Remedy Prep Gel 30ml

+528%Smoothing Face Brush

+386%basreSkinPerfecting Vel 9g

+1919%Pop Lacquer Lip Colour & Primer 6ml

+930%Pop Matte Lip Colour & Primer 3.9g

+619%Super balanced Makeup 30ml

DIGITAL FASHION MASTERCLASS

3. Map out your direct vs. indirect buyers Visitors vs. Adidas Buyers - Direct (on Adidas) and Indirect (on Foot Locker & Nordstrom)

Source: Hitwise, US. Online purchase on Adidas or inferred purchase of Adidas on Foot Locker and Nordstrom. Q4 2018.

Track the overlap of indirect buyers visiting your site – are you cannibalizing your direct sales?

59% of Foot Locker Adidas buyers also

visited Adidas

36% of Nordstrom Adidas buyers also

visited Adidas

Adidas Visitor

5.1M

Adidas Direct Buyer

592K(12%)

Foot Locker Visitor

3.2M

Foot Locker Adidas Buyer

45K(1.4%)

Nordstrom Visitor

12.2M

Nordstrom Adidas Buyer

43K(0.4%)

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DIGITAL FASHION MASTERCLASS

Zara’s Visitor Zara’s Buyer

“Zara Bags” (2.8X *) “Zara Dresses” (1.9X)“Zara Baby” (1.9X) “Zara Winter Coats” (1.8X)

“Velvet Purse” (5.8X)“Leather Boots” (5.7X)“Black Fur Coat” (5.7X) “Zara Denim Jacket” (4.4X)

Superdry (2.2X)Coast (2.0X)

& Other Stories (2.0X)Matches Fashion (1.9X)

Boohoo (1.2X) Argos (1.1X)

H&M (2.4X) ASOS (1.9X)

4. Understand what makes your buyers unique

What were they looking for?

Where else are they browsing?

Where else do they buy?

Source: Hitwise, UK. Online purchase and visits on Zara. Q4 2018.

Compare digital behaviours of your buyers vs. visitors. What are they searching for, where are they also buying.

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DIGITAL FASHION MASTERCLASS

Key Takeaways

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1. Online activity is slowing down – only the premium tier is growing since January

2. Pure players are leading growth – Boohoo Group, Silkfred and FarFetch are gaining new audiences, driven by mobile content & search

3. Fast-moving search is your staple – be as close to the trend as it happens, track fast moving terms and downstream sites

4. Understand what is happening WITHIN retailers – this will help you identify trending brands and products

5. Identify what makes your buyers unique – map out your direct vs. indirect buyers, analyse the digital behaviours of your buyers.

Digital Fashion in 2019: Online Trends & Tactics

Thank You

contact-uk@hitwise.comwww.hitwise.com