TECHNOLOGY’SIMPACT ON SHOPPING

TODAYMalinda Knowles—Ekaterina Kan—Yu Kuo—Josephina Gigliotti

FM 268 Online 2Team Development Workshop

Professor VassalottiJuly 20, 2014

Team Mission:We are a research and analysis team who studies the

latest developments and trends in the fashion industry.Our motto is “Stay Hungry, Stay Foolish” which

means, always push yourself and be eager to try newideas.

TECHNOLOGY HAS ENABLED CONSUMERS TOREADILY AND EFFICIENTLY SHOP – ANYTIME,

ANYWHERE.

TOPIC STATEMENT

Technological Advances Include:

E-commerceSocial MediaMobile Applications

E-Commerce

Without online presence, retailers face a risk of loss of potential customers

Consumers turn to e-commerce rather than Brick and Mortar stores;never having to leave the convenience of their home

Free Shipping and Returns allows customers to ‘barrow’ items untilthey finalize their purchase decision after viewing the item in person

When having shipping fees, cart ‘abandonment’ is a risk. 2004 surveyfound shipping and handling costs triggered 52% abandonment ofonline shopping carts

SHIPPING AND HANDLING

E-CommerceAccording to eMarketer, apparel and accessories leads retail e-commerce sales, with a 17.2% share ofmarket, to fuel overall marketgrowth

“Retailers continue to increasethe scale of their e-commerceoperations, particularly byinvesting in online sales platforms that display product andconvert shoppers moreeffectively; apparel sales havebenefitted more than any othercategory” - Apparel Drives US RetailEcommerce Sales Growth. Emarketer. www.emarketer.com/newsroom/index.php/apparel-drives-retail-ecommerce-sales-growth/#QlqjfeDM7cjSsoCA.99

Retailers gain greater information more efficiently and quickly fromcustomers online as apposed to customers in-store.

E-commerce sites log your IP address, remembering your last visits anditems left in your cart

An increase in email checking, as the average smart phone user checksemail 34 times a day, causes retailers to take advantage and reach out toconsumers daily.

E-CommerceGAINING CUSTOMER INFORMATION AND TARGETING

E-Commerce

• Virtual Fitting Rooms offer the simplicity and easiness of trying onclothing

• Stores like Bloomingdales worked with FaceCake to build a libraryof outfits by Rachel Zoe and many other designers to demonstrateits technology during its Fall Fashion Week 2012

• Saks Fifth Avenue features an entire runway for you to see howgarments move

• Amazon’s MYHABIT site provides 360-degree views of garmentsin a simulation videos

BEATING CUSTOMERS GARMENT FIT FEAR WHENORDERING ONLINE

t

E-CommerceVIRTUAL FITTING

ROOMS

E-Commerce

• Excitement of competing with other shoppers for limited numberof items

• Concept took sample sales and transplanted them to the internetso ladies and men wouldn’t need to leave their offices to shop

• Members feel a sense of speciality as flash sale websites holdmembers only, VIP private events

FLASH SALES

Social Media• Pinterest allows companies and brands to

display images of products on boards, linkingthem back to websites

• Facebook serves you ads while also allowingretailer to hold stores

• “There was a lot of anticipation that Facebookwould turn into a new designation store, a placewhere people would shop.” -Sucharita Mulpuru

• Social media offers a personal approach forretailers to target consumers by developingcommunities, creating content to be shared andtalking/listening directly to consumers

TOOLS

Social Media

• In the past 4 years, the number of smartphone sin the United rates hasgrown from 62.6M to an astonishing 144.5M with more than 75% ofhouseholds having at least one smartphone. As a result, consumersshopping habits have changed drastically in recent years and newtechnology will continue to fuel this evolution

Mobile Application• Brick and mortar retailer experience

significantly less foot traffic in recent years dueto online shopping popularity and growth

• Research has shown that “the use of mobileapplication for in-store shopping purposesnearly doubled in the past year while data fromPoint Inside shows that shoppers who use appsfeaturing its in-store mode display a four to fivetimes increase in interactions compared to usersof apps without indoor location.”- Tode,Chantel. Retail apps with the sotre mode driveup to 5x more interactions www.mobilecommerce daily.com/retail-apps-with-store-mode-drive-up-to-5x-more-interactions

Mobile Application• Retailers have started to re-vamp

their stores. Walmart has relaunchedtheir entire website and mobile appsto the customer can have a seamlessmulti-channel experience - their appwill recognize when a customer is inthe store and provide details to thecustomer such as locations of items,map of store, price check scanning,and creating/viewing their shoppinglist to make the store experiencemuch smoother and efficient

ConclusionTraditional stores may soon become a

thing of the past

From smartphones to mobile apps,social media to e-commerce, shopping

has found its way into almost everyaspect of our technological lives. The

digital age is here to stay. Are you readyto advance?