e-Business Rationalism

E-COMMERCE TENDENCIES IN THE FASHION INDUSTRY

1 Kassimates Apparel and Fashion Industry / e-Commerce Analysis, Apr. 2012

Contents of Operational Plan

A: e-Business intelligence and Steps to Success B: e-Commerce startups principles C: e-Business Strategies D: e-Commerce today based on Affiliate Strategies E: e-Commerce and Apparel/Fashion Industry on the

web 2 Kassimates Apparel and Fashion Industry / e-Commerce Analysis, Apr. 2012

~ Steps to Success in e-Commerce ~

Set Strategy (keep it simply for customers) Focus on the final Customer Redesign Business Process Wire Company for profit and success Build on customer Loyalty - Prioritize objectives - Decide the way of control of KPIs (key product

indicators - Measure profitability


A: e-Business intelligence *According to successful startups in e-commerce the first requirement for a successful e-business is:

e-business intelligence.

E-Business Intelligence tasks, can be underlined as the following:

1. Collect Data :

There are two classifications of data that a firm should acquire

- Primary data & Secondary data. Primary data is gathered by the firm and sponsored entirely by the

firm. There are representatives of the firm who gather the primary data, ex. customer

surveys.

- Secondary data is gathered by some one who is not directly connected to the firm.

2. Evaluate Data :

- All the categories of data are evaluated for accuracy and authenticity.

3. Analyze Data :

The data is to analyzed for completeness. The method commonly known as

lateral thinking is applied during analysis of data, where the data is examined from various angles.

4. e-Store Intelligence /

Information should be stored in a magnetic medium and be kept in readable easy management form.


A: e-Business intelligence

Collect

Data

Analyze Evaluate Data

E-Store Intelligence

Intelligence

Data


B: e-Commerce startups principles

As the over all e-commerce market has expanded in value, e-commerce startups (e.g., niche retailers, service providers) have started to command large enough addressable markets to become sustainable businesses



New business models are still being born, personalization companies continue to bring offline models into existence online

There is also room for companies to clone or apply existing business models to new product categories (e.g., low-end vs high-end, male vs female)

Startups often take existing business models and apply a marketing pivot or alternate strategy



Two newer business models that are less reliant on

impulse purchases are online brands and crowd sourced demand

Online brands are simply new brands that have chosen online as the marketing channel of choice over offline, barriers to entry in online brands includes the expertise required to build a vertically integrated supply chain

Crowd sourced demand start-ups also rely less on impulse purchases, as do social book marking start-ups like Pinterest, where users create product wish lists for “buy-later”.



Most of the social commerce activity occurring today are Pinterest, Facebook pop-up stores and Twitter/Facebook buttons embedded on e-commerce product pages. Some companies also use the social graph to make referral programs easier. However, no clear class of scalable, defensible startups has come out of social commerce yet


C: e-Business Strategies

The Strategies are :

- The elements are linked with transmission of electronics data. The name given to this is Inter-organizational System (IOS).

- EDI ( Electronic Data Interchange ) is the means for achieving IOS.


C: e-Business Strategies IOS benefits

Comparative Efficiency : By joining an IOS, the trading partners can provide their goods and services at lower costs than their competitors. The comparative efficiency consist of two groups: Internal efficiency and Inter-Organizational efficiency.

a) Internal efficiency consists of improvement in the firm’s operations, thus enabling the firm to gather data faster, analyze it faster and make decisions faster. b) Inter-organizational efficiency includes

improvements that are gained by working with other firms.


C: e-Business Strategies EDI Benefits

Direct Benefits

Reduced errors : As the data coming from the network is accepted directly by the computer systems hence the errors related to manual entry are reduced greatly. A study by the EDI Group Ltd. has proved that the error rate is reduced to 4.4% ( with out EDI its 10.1%).

Reduced costs : Cost reductions are realized by eliminating the redundant steps, eliminating paper documents and eliminating manual labor for routing the documents.

Increased Operational efficiency : As the paper documents are replaced by electronic information hence the error rates have declined and routing is perfect and in time, causing the response and processing faster, with less errors.


D: e-Commerce today based on Affiliate Strategies Implementation of affiliates

Segmentation of potential customers

Integrate Social Media

Promote Best-Sellers

Create Shopping guides

Video support

Create online surveys


D: e-Commerce today based on Affiliate Strategies Create demand

Invest in Acquisitions

Reward on Conversion

Ability to market directly

Ability to remarket with Low Risk


D: e-Commerce today based on Affiliate Strategies Personalization of needs

e-mail Alerts

Mobile Apps

Online registrations and accounts creation

Go global

Cross Selling

Build up loyalty


E: e-Commerce and Apparel/Fashion Industry on the web

~ e-Fashion Benefits ~

e-Commerce in Fashion Industry = Affiliate Advantage

The store is always open

Global exposure and reach

Establish relationships with loyal customers via databases

Low Cost Information Distribution

Apparel Categories of Selling on the web:

Dresses

Coats and Sweaters

Warm - ups

Tops

Jeans

Lingeries and Accessories

Pajamas


Managing by Category

E: e-Commerce and Apparel/Fashion Industry on the web (*all profits in one property)

Branding Informing Selling

TV Ads Magazines

Print editorial Sales People

Store

Cycle of e-Commerce

Marketing Sales Production/

Logistics Billing

Quality of services



Top e-Commerce trends:

Incline Apparel and Accessories Mass Merchant Decline Toys Food Flowers



Top e-Commerce trends:

Mobile e-Commerce

Personalization

Behavioral Profiles

Building Loyalty with Products

Video



Fashion Sharing is in:

- Emails

- Social media - Pinterest and Facebook

- Social Opportunities and Conversions


Thank you


Internet

e-Business Rationalism