Velocity of Fashion – Redefined

Via

Rapid: Intelligent Fast Fashion

Priyanka Bhargav

Juhi Singh

A quick intro to Myntra &

integration of insights!

Link:

https://youtu.be/PXskBStfY3Y

1

Context Setting

Using AI to find method in madness

Need for research

Sizing INDIA’s digital consumers from fashion lens

Understanding INDIA’s digital consumer fashion DNA

We found our TG!

Recommendation, Impact & Learning

Flow of presentation

2

Context Setting

1.2Bn

310Mn

450Mn

200Mn 300+

50%

Landscape in India

4

Current State of Fashion:

Long lead times, uncertain customer trends

5

Using AI to find method in madness

6

Meet Artie: The Hero of Rapid Technology

• Launched fully-automated (computer generated)

design collection & fast fashion with zero human

intervention – “Moda Rapido” and “Here &

Now”

• Birth of the Idea – Sneaker store & Other such

fashion forward trends

• Improvised consumer shopping experience

• Personalised Offering: Curated collection, price

points, trends

Sources

Magazines, blogs,

social media, sales data

Image analysis

Text analysis

Trend ranking

Taxonomy

Fashion glossary

Trends Now

Skinny Jeans

Off-the-shoulder top

Bohemian Dresses

Myntra AI

Platform

Design

Iterations

Top-seller

probability~70%

Machine Generated Design

Machine

Curation

Need for research?

Segmentation with a twist!

What did we do?

Key business questions

Who could be our

consumer?

Need

states? Purchase journey?

Attitude towards

fashion? Brands?

Communication & strategy?

What is segmentation with a twist?

#1. Syndicated research– TGI

(~40k sample) #3. Social media

listening #5. Social persona

enrichment

#2. Customer attributes based

(internal) segmentation #4. Passive TV

viewing

#6. Fashion market

segmentation

#7. Series of qualitative

exercises

• ~20 Focus groups

• Follow up in person & digital

Ethnographic activities

• Wardrobe audits

• Influencers & Experts DIs

• Diaries & Slambooks

• Lookbook activities

• Outfit of the day selfie

Sizing INDIA’s digital consumers from fashion

lens

Myntra customer growth rate<<Than other cohorts, industry at large

Myntra

consumer

Online fashion

shopper

Offline fashion

shopper Cohort Growth rates

7% 28% 53% Y-O-Y Growth rates

Active Internet

Users

47%

Source: iCube, Redseer and other secondary sources 14

Developments happening in the Fashion-etailing space at large

IN A STATE OF

FAST-FLUX

In turn affects how the

audience interacts with

the space

• Impacts and Influences

• What they shop

• Where they shop

• How they shop

15 15

#1: EXPLOSION OF CHOICE Not just in terms of the number of ecommerce options But also many bringing in new styles and philosophies

4 key call outs in the emerging options & choices

1. Global:

#world-at-your-doorstep

#Indian e-tailers are also stepping up

2. Glocal fashion:

# Tradition 2.0

3. Limited & Fast fashion:

#My – snowflake – self 4. Ethnic fashion:

#The-story-my-apparel-tells

16 16

Democratization of access and information: Not knowing is not done

Role of in-site content increasing: Mentoring - a big deal for many

No singular go-to website: Affinity to a process of shopping vs. an entity

Increasing need to point out the best-of-the-pick

#2: PACE OF EXPLORATION & ACQUISITION New benchmarks & moving targets on what is trending

17 17

#3: NATURE OF INFLUENCES & NEW EXPECTATIONS New benchmarks &

moving targets on what is

trending

18

Rising space of online inspirations

Increasing discernment and iterative experiences making the audience more demanding

Emerging shift from clothes-shopping to shopping for ‘looks’ – Ensemble approach

18

#4: NORMALISATION OF BEING BOLD AND STANDING OUT

19

Bold is getting

normalized

• Make up for women

• Well groomed facial hair

for men

• Glamorous outfits

• Quirky ensembles

• Eccentric vibes

• Vibrant colours

• Big bold designs

New age, global

trendsetters are

pushing this ‘unique

spin’ angle

Context is in the center

of fashion choices

• Statement versus

staple

For the fashion

conscious

audience, fashion

is getting

dimensionalized –

more ways to

stand out

Include the new and the latest

Discerning about quality and aesthetic

Individualization and self expression

Inclusive

fashion

Discerning

fashion

Individual

fashion

20

Understanding INDIA’s digital

consumers’ fashion DNA

21

Price & Practicality

Brand seeker

Trend forward

Brand forward / exclusives

Need states vs sizes

22

• Urban trailblazer gentlemen (Y+O)

• Urban trailblazer ladies (Y+O)

• Wake up Sid

• Trendy Sunshine Girl

• Fashionable (ethnic)

homemaker

• Service professional

• Urban value seeker men

• Urban value seeker women

• Urban Value seeker Boys

• Urban Value seeker Girls

C1+C2+OFS

UTL

UTG

TSG

WUS

FHM

SP

UVSW

UVSB

UVSM

UVSG

Aff

luen

ce

qu

oti

en

t

FQ UTL UTG WUS TSG SP FHM UVSW UVSM UVSB UVSG

A sneak – peek into 10 segments which exist in India’s fashion market!

L

H

L Men Women

Urban Trail

blazers

Ladies

(Y+O)

Urban

Trail

blazers

Gentle

men

(Y+O)

Urban value seeker men

Urban

Value

seeker

Boys

Urban

Value

seeker

Girls

Trendy

Sunshine Girl

H

Service

Professionals

Urban Value seeker

women

Fashion quotient

23

Wake Up Sid

Fashionable

Homemaker

We found our TG!

Wake Up Sid & Trendy Sunshine Girl

24

Stalking and not

sharing

1/3rd of the top 100

recalled brands belong

to AFA

33% of their spends on

AFA followed by food.

Raised on 5 screens:

Digital Enthusiasts

Communicate through

images

>65% on gaming

Trend seeker/ fast

fashion/ athliesure

Proudly

awkward,

#Flawsome

Realist

Concerned

about privacy

Shorter

attention

spans

Entrepreneurial – 72%

want to start business

Severe FOMO

95% own or

access

smartphones

India has World’s largest GenZ population: 361 Mn

Wake Up Sid and Trendy Sunshine Girl

Moderately affluent

Trend seeker

‘Happy go lucky’ style & fast fashion

Quirky Casual & Athleisure style

College Goer/ Early Jobber

Seeks sharp trends

Multidimensional

Digital Enthusiast

Digital enthusiast –

Facebook, Twitter,

Instagram, Snapchat are

regulars; exploring new

upcoming apps: Vine,

Wattpad, Oovoo, Whisper,

Yellow, Omegle, etc.

Small towner celeb struck,

Metro rational

26

• Surge in social occasions with each occasion warranting a different look – need for a diverse wardrobe. Accessories (bags, belts, watches, jewelry, wrist bands etc.)

form an important part of their wardrobe. Helps improve their style quotient, especially among the boys.

• Lead highly social lives with social media providing instant feedback on looks. Hence, necessitates getting the head to toe look right. Enjoy putting together/styling their

own looks. Try and style the same outfit differently for different occasions. While also follow celebs, are only inspired by their street styles/red carpet looks.

A glimpse into their very different digital world!: Shift from Multi –

Tasker to Multi – Dimensional; Hardworking to Smart – Thinking

Open

Minded

Creative Confident

Happy

Ambitious Thoughtful

Words that describe me

Multi-

Dimensional

Smart-

Thinking

Multi –Tasker

Hardworking

27

28

29

• Very important

• Their primary source of standing out

comes from here – showcasing their

knowledge, sensibilities and sense of style

Fashion philosophies and their role in Wake up Sid & Trendy Sunshine Girls World

30 30

• Keep track of what is happening in the

fashion world and include the sub-

categories that are trending – jump

suits, body hugging skirts, white

sneakers, etc.

• A hygiene for them in their social

circle

• A way to keep up rather than

stand out.

• Hence, while they do this, it is not

their primary manner of standing

out or how they define or evaluate

fashion

• Beyond hygiene: including new trends, by

putting together a differentiated look,

through accessories

• Knowing colors, patterns, designs that are

trending becomes eg. shimmer, lace, body

fitting dresses, etc.

• Very important: Including trending

patterns & pairing them well

showcases them as fashionable &

young person

• Stand out among their social circle –

“if everyone wears jumpsuits and high

waist shorts, I need to find something

truly unique to stand out”

• Most important: Experimentation

• Gathering unique, quirky and creative outfits -

to make a statement

• More than brands or price points, hunting for

truly unique designs gives them a high

Fashion Serves to increase popularity, expression of personality and

indicates their social group standing

“My clothes should be attractive and I should be in a state where even people from a distance should feel that a smart person is passing

by. If people complement me that I am looking smart, I would say those are the clothes which I like to wear” (Male, O, Delhi)

Fashion Is about getting the entire look right – from head to toe. Instant feedback

on your style through social media; which means you need to look your best 24*7

31

Recommendation, Impact & Learning

In app:

• Product reviews, ratings

• 3D trials

• Tech enabled size

assistance

Delivery:

• 24 hours delivery

• Schedule deliveries

• Try and buy

Return/ Refund:

• 24 hour pick up

• Hassle free, no question

asked refunds/ returns

• Real time tracking /updates

Customer care

• Real time chat option

• Callbacks for issues/

complaint resolution

Myntra Fashion Brands (MFB)

Category Special store

Tech/ Product features

Service

Marketing & Revenue

Action Points from research across functions

• Pocket friendly but latest style

options for all categories –

athleisure is big, sometimes ethnic

with a twist, casual/ western wear

• MFB portfolio had

2 brands (Moda

Rapido and Here

& Now) which

perfectly fit this

audience needs

• Youth store – with a very young & vibrant

feel – which provides latest fashion trends

tips

• AI will play a big role – they are tech savvy &

experimentative – talking tees will be a big

hit, other trending styles too

• Content – quirky facts about trending styles

& option to buy such pocket friendly styles,

celeb looks, head to toe looks/ option to

ensemble looks, etc.

• Gamification to engage them, option to

create a leaderboard with friends, crossing

levels, etc.

• Digitally identifying potential & current base

of Wake up Sid & Trendy Sunshine girls –

exposing them to edgy styles, latest trending

styles (not overtly massy – popular styles),

etc. (experiments will have to be conducted)

• Shout out loud – ‘lowest possible price for

latest trending styles’ (more than discount –

which gives them a perception of old styles)

Rapid Impact

<30 days Concept to go-live

(1/5th of industry avg.)

3x Sell Through

(vs. Myntra avg.)

2x Gross Margins

(vs. Myntra avg.)

$10M in revenue | 200% Growth YoY I EBITDA positive

Potential for much more…….

High potential segment can be acquired

• With usage of insights from this research, following metrics have shown

positive improvement in 6 months for Moda Rapido & Here & Now:

• 22% consumer base improvement for Teens (13 – 19) on Myntra’s

platform

Metrics Moda Rapido Here & Now

Customer base for brand 80% 188%

Orders 87% 204%

Revenue for the brand 77% 236% Above mentioned metrics are a growth rate from Oct – Dec’17 over Jul – Sept’17

More initiatives underway, impact to be measured in Jan – Mar’18

Research learning

#1 No compromise between Quick TAT & Quality, On the go insights

#2 Leveraged technology to save time & approach – passive

techniques explored & utilized

#3 Leverage existing data before scurrying out for primary data – internal

attributes & enriched data

#4 Marketing learning: Engagement will lead to increased

revenue

#5 Experiments show: Relevant brand exposure to TGs show 80 – 100%

conversion/ funnel improvement, thus better consumer experience &

retention scores

Reach out to Myntra Research team:

Priyanka Bhargav

Juhi Singh