REMARKETING

THE LITTLE BLACKBOOK OF FASHION

TAB

LE O

F C

ON

TEN

TS Introduction

Global E-Commerce Overview

Global Remarketing Trends

Industry Insights: Fashion E-Commerce

5 Strategies Driving Fashion Remarketing

Closing Remarks

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4

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13

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PART ONEINTRODUCTION

In our Little Black Book of Fashion Remarketing, we’ll explore the latest insights and trends in global e-commerce, the impact it’s having on the

fashion industry and how some of the world’s top brands are successfully utilizing remarketing tactics to engage their digital consumers.

With store closings and bankruptcy plaguing some traditional brick-and-mortar retail chains, consumers across the globe are moving online in staggering numbers to shop, providing innovative fashion retailers with the opportunity to capitalize on growing e-commerce sales.

FASHION EDITION

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DID YOU KNOW?

1.15 billion people will make an online purchase in 2014.- eMarketer

Highlights in this Little Black Book edition include:

• Global e-commerce trends and predictions for 2014

• How major retailers are employing remarketing strategies across the globe

• A look at the trends of online fashion shoppers

• Our 5 favorite examples of remarketing campaigns in the fashion industry

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PART TWOGLOBAL E-COMMERCE OVERVIEW

HOLD ONTO YOUR SEAT!

2014 is shaping up to be a pivotal year for global e-commerce, with an estimated 1.15 billion digital consumers expected to make at least one online purchase this year. And that’s just the tip of the iceberg! With an expected 20% growth rate over last year, online sales are set to grow at over 10% for the next 3 years. (eMarketer)

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$1.058$1.248

$1.500

$1.763

$2.043

$2.345

22.2% 18.0% 20.1% 17.6% 15.9% 14.8%

2012 2013 2014 2015 2016 2017

B2C E-Commerce Sales Worldwide 2012-2017(trillions)

Source: eMarketer % ChangeB2C Ecommerce Sales

Leading the charge in online sales, the U.S., Asia and Western Europe account for nearly 90% of the global total! And while the U.S. has long dominated the number one spot, it looks as though Asia will soon steal the crown. With approximately 75% of consumers shopping online weekly, China alone is looking at an estimated $316 billion in online sales this year (compared

to $300 billion in the U.S.). (eMarketer)

But it’s not only Asia that’s showing remarkable success. Other markets are emerging as hot spots in the global e-commerce landscape, including Brazil, Canada, Italy and Russia (PwC). And why is this you ask? For the most part, these countries are seeing large

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Source: PricewaterhouseCoopers

Shop online weekly

Brazil

Canada

China

France

Germany

India

Italy

Russia

UK

US

19%

16%

75%

16%

35%

38%

25%

21%

39%

26%

61%

44%

63%

47%

31%

88%

60%

71%

29%

22%

40%

29%

77%

26%

39%

69%

41%

41%

39%

29%

40%

26%

66%

25%

33%

59%

41%

44%

37%

28%

Shop on mobile phones

Made 1st online purchase <4

years ago

Shop on tablets

Country

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DID YOU KNOW?

Asia, Western Europe and the U.S. account for nearly 90% of all online sales.- eMarketer

numbers of their populations finally gaining access to the internet, giving them the opportunity to shop online for the first time. For example, 71% of online shoppers in Russia and 61% in Brazil made their first online purchase less than 4 years ago, compared to 22% in the U.S. and 29% in the U.K.

So what does this all mean for e-commerce marketers? With billions of people racing online across the globe, it’s going to be chaotic and it’s going to be competitive. But for those companies that can embrace new technologies, master the international landscape and find a method to the online madness… there’s a lot of money to be made!

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PART THREEGLOBAL REMARKETING TRENDS

The reasons for abandonment are endless, ranging from shipping costs, complicated checkout processes, lack of payment options and product price. And while e-commerce marketers are striving to enhance online shopping experiences to eliminate some of these barriers, the

abandonment rate across all five of the top performing online retail sectors continues to increase, with the top two performing retail sectors (consumer electronics and fashion) seeing abandonment rates of 76% and 73% respectively this past quarter.

ABANDONMENT ISSUES?

With consumers coming online to shop in mass numbers across the globe, the number of people abandoning a purchase online is rising in kind.

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Source: WorldPay

currency

DeliveryDelivery

price

security crashedcrashed

SECURITY

COSTS

costs

Delivery bett

er p

rice

securitybetter price

just browsing PRICE

unexpected costs

SECURITY

costs

too expensive

DELIVERY

delivery

SECURITY

EXPENSIVE

too long

currencynexpecnexpec

CURR

ENCY

unexpected costsrityy

OO

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NG

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JUST BROWSING

too long

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DELIVERY

WEBSITE TIME OUTcostscosts

TOO EXPENSIVE

just browsing

DID YOU KNOW?

73% of online fashion purchases are abandoned.

As online abandonment rates increase, so does the opportunity for retailers to regain millions in lost sales through remarketing tactics. After all the time, effort and budget spent getting consumers on your site, these hottest of hot prospects are prime for the picking! While many remarketing methods are now available to e-commerce marketers, email remains one of the most popular, and most profitable, among top global brands.

Average email marketing campaigns throughout the retail industry see an open

rate of about 21% (Silverpop). However the average open rate for remarketing emails across the top five performing retail sectors was a staggering 56.6% in Q1. And if we take that one step further, conversions averaged 30% across the board, making remarketing emails some of the most effective marketing messages a company can send!REMARKETING

The act of marketing to a consumer following an abandonment.

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- SaleCycle

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$63.8$55.9

$48.6$56.6

$23.8$27.3 $19.7

$21.1$18.8

$21.3

CONSUMERELECTRONICS

FASHION BOOKS / MEDIA

AUTO HOME

Source: eMarketer

U.S. E-Commerce Sales by Industry(in billions)

74.07%76.03%

CONSUMERELECTRONICS

FASHION BOOKS / MEDIA

AUTO HOME

71.8%73.34%

55.22%57.38%

71.0%72.84% 68.3%

70.96%

Global Abandonment Rates by Industry

Source: SaleCycle Q4 2013/Q1 2014 Client Data

20142013

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Global Remarketing Engagement Stats(Email Open Rate)

Source: SaleCycle Q1 2014 Client Data

Global Remarketing Conversion Stats(Email Conversion/Click)

Source: SaleCycle Q1 2014 Client Data

CONSUMER ELECTRONICS

FASHION BOOKS /MEDIA

AUTO HOME

CONSUMER ELECTRONICS

FASHION BOOKS /MEDIA

AUTO HOME

PART FOURINDUSTRY INSIGHTS: FASHION E-COMMERCE

FROM BRICK TO CLICK, THE FASTEST GROWING SECTOR

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$34.2

$41.0

$48.6

$56.6

$73.0

$64.8

2011 2012 2013 2014 2015 2016

U.S. Online Apparel Sales Forecast 2011-2016(billions)

Second only to consumer electronics, this year the fashion industry continues to dominate the e-commerce world! Once considered an industry that could and would only be purchased after being seen, touched and tried on, apparel is now the fastest growing e-commerce sector, with an estimated $73 billion in sales by 2016 in the U.S. alone. (eMarketer)

Source: eMarketer

IT’S A TECH WORLD, AND WE’RE JUST LIVING IN IT

As technology continues to grow at exponential rates, so does its influence over online shopping behavior. E-commerce marketers have effectively taken the guessing game and risk out of online shopping, as they continue to blur the line between fashion and technology.

DID YOU KNOW?Apparel sales are expected to grow 16.4% through 2016 vs. 13.3% for e-retail as a whole.

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- eMarketer

So how is an industry, which was once so rooted in traditional brick-and-mortar point of sales, now outpacing the rest of e-commerce retail growth?

Well, as countless brands faced less than stellar Q4 holiday sales, hundreds of store closings, and the rise of the price-conscious, omni-channel consumer; innovative retail marketers have looked online to regain lost earnings. With consumers calling for highly personalized and engaging shopping experiences,

online competition continues to be fierce, but technological leaps in visualization, logistics and remarketing have been the keys to success!

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This year, online retailers aiming to connect and engage with their customers, have no choice but to think outside of their traditional four walls and adopt the latest and greatest methods as a way to enhance shopping experiences.

Today’s mobile, tech-savvy consumers want to research, browse, try-on, and purchase wherever and whenever they please. As a result, we’ve seen the rise of virtual fitting rooms, ease of shipping and returns,

on-site messaging, geo-targeted promotions and email remarketing campaigns.

Perhaps one of the most notable technological trends in online shopping is the use of embedded social activities to bridge the online/in-person gap. Retailers sharing real-life product posts, pictures, reviews and recommendations, on-site and in the checkout process are serving as key conversion factors in online purchases.

THE RISE OF THE MILLENNIALS

Gen Y… widely described as the lost generation. Think what you may, but as the Millennials continue to enter into adulthood, they are making waves in retail e-commerce and shaping the way brands must market online.

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MILLENNIALS

The generation of people born between the early 1980s and the early 2000s.

1. Millennial females buy a third more apparel per year and males twice as much per year than their non-millennial counterparts. (Baynote)

2. 47% of millennial females and 38% of millennial males shop for clothing more than 2x a month compared to 36% of non-millennial females and 10% of non-millennial males. (Baynote)

3. 45% of millennials spend more than an hour a day looking at retail-oriented websites. (Urban Land Institute)

4. 24% of millennial females and 27% of millennial males use retail store apps on a regular basis. (eMarketer)

5. Gen Y influences about 90% of the apparel purchases in their home. (Kissmetrics)

Roughly 150 million strong, Millennials spend an estimated $20 billion in online purchases each year and account for 21% of all online clothing sales! (Kissmetrics)

A force definitely not to be overlooked by today’s e-commerce marketers, consider these five stats…

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PART FIVE5 STRATEGIES DRIVING FASHION REMARKETING

We’ll do the math for you… that equates to 1.4 billion people around the world shopping on their phones and over 400 million on a tablet!

For online retailers, this cosmic shift from desktop to mobile spells out a significant opportunity and challenge. Not only must websites be “mobile friendly” but emails and on-site messaging must also fall in line with responsive design as they serve as key touch points and conversion factors in the buying cycle for todays digital consumers.

One of our personal favorites, DKNY, executes seamless responsive design across their email remarketing campaigns which has helped them achieve increased click rates, a far better consumer experience, and as you can see, much prettier looking emails!

1. GO MOBILE

We’ve all heard the predictions…

This year mobile is expected to officially overtake desktop Internet usage. Globally 1 in every 5 people owns a smart phone and 1 in 17 owns a tablet. And 87% of these mobile device owners use them to shop online (Nielsen).

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It comes as no shock then that e-commerce marketers in the fashion industry are also turning to product recommendations to increase conversion rates, average order values and user engagement. In fact, nearly 77% of leading U.S. retailers are currently utilizing some flavor of online product recommendations (InternetRetailer). “You might also like”, “Other customers viewed”, “Most popular items”, “Frequently bought together”… no matter the approach, by tracking online consumer shopping habits,

retailers are able to suggest your preferred brands, favorite styles, specific colors and even sizes…. now that’s a customized shopping experience we can all appreciate!

Check out how classic Americana brand, Levi Strauss, increaes average order values with customized product recommendations in their cart recovery email campaigns. A slick, clean design based on collective consumer data to boost your wardrobe by offering key pieces to complete the look!

2. PRODUCT RECOMMENDATIONS

If you like this, try that…

When most of us think “product recommendations”, we think e-commerce giant Amazon, whose homepage alone is made up of nearly 70% of personalized recommendations (Econsultancy).

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And while real challenges in this arena still exist, brands that are able to successfully connect with their customers on a personal level are benefiting from greater loyalty, increased conversion rates and ultimately sales. We all enjoy being treated as individuals, and when online retailers can show consumers that they understand who they are and what they enjoy, they’ve just created one happy customer. And happy customers buy more… more often!

Take a look at global fashion retailer, French Connections’

remarketing campaign. Not only are their abandoned cart emails personally addressed, but they also contain the specific contents of each customers abandoned cart. They even take it one step further and have personalized the design of the email template to gender fit their customers… talk about knowing your end consumer!

3. PERSONALIZATION

“You want to go where everyone knows your name”

The same mantra rings true when we’re shopping online. Personalization is the name of the game for online retailers this year. Approximately 49% of the top U.S. retailers already offer some level of personalization to their digital consumers (InternetRetailer).

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Tapping into our emotions and competitive nature, works to speed up our decision-making process and increase online conversion rates; as we are compelled to make the purchase simply because we know someone else might scoop up that last designer purse or little black dress!

And let’s not forget that feeling of satisfaction you get after successfully purchasing a product under a limited timeframe or quantity… a true win-win scenario for both consumer and retailer!

Fashion powerhouse Lacoste, has flawlessly used this sense of urgency technique in their on-site messaging to curb abandonment, alerting consumers not to miss out on limited stock items in their cart.

4. SENSE OF URGENCY

24 hour sale, Only 3 left in stock, Order in next 5 hours and have it tomorrow...

All of these tactics play on a consumer’s fear of “missing out”, making this created sense of urgency a popular technique utilized by e-commerce marketers, especially in the highly competitive fashion industry.

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Whether it’s searching for promo codes, comparing products on competitor sites, or looking up reviews, more than half of online consumers spend 75% or more of their total shopping time conducting research (MarketingCharts).

Innovative fashion retailers are turning to new technologies, like on-site messaging to keep that 75% chunk of time on their website and not their competitors, by engaging with their consumers the moment they go to leave. Whether triggered by a specific idle time or detection of “breaking the

pane”, e-commerce marketers can closely monitor online customer behavior and display a customized, relevant message to re-engage.

UK retail chain Matalan, uses this technique in their check out process to re-engage possible cart abandoners. Triggered by a 60-second idle time or detection of leaving the page, Matalan has chosen to display a playful, soft touch message to bring the customer back to the checkout process.

5. ENGAGING YOUR DIGITAL CONSUMER

We already know consumers are moving online in mass numbers...

But once they’re there, how can we engage them to ensure they complete their purchase?

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Our Little Black Book series strives to deliver easy-to-digest insights on both global and industry specific trends relating to e-commerce, remarketing and shopping cart abandonment. Our data and research is based on aggregated campaign data from SaleCycle’s global client base and from some of our favorite industry experts.

Visit www.SaleCycle.com/Resources for more great reading and to receive future editions of SaleCycle’s Little Black Books.

For questions about the data in this report or for more information please contact us at marketing@salecycle.com.

Written and created by Andrea Puhak. Images by Philip Docherty.

© 2014 SaleCycle, Inc.

ABOUT THE LITTLE BLACK BOOKS

ABOUT SALECYCLE

Founded in 2010, SaleCycle is committed to helping the

world’s top brands recover lost sales online.

SaleCycle’s signature On-Site Remarketing and Email Remarketing solutions enable clients to reconnect with consumers who abandon their shopping cart, booking or application form with dynamic, personalized messages in real-time.

SaleCycle serves over 500 clients globally and has offices in Washington DC, London, Paris, Singapore and Sydney.

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