India Fashion Forum 2016.pptx 1Draft—for discussion only
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Predictions about the future are dangerous..especially in the short run
Global financial crisis Elections 2009/2014.. Weather
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India's consumption to increase 3x this decade
INR '000 Cr
2010 2020
2,181
392
1,237
326
1,117
472
858
6,590
5,952
1,496
5,001
1,217
4,416
1,968
3,791
23,8343.6x
4.4x
4.2x
3.9x
3.8x
4.0x
3.8x
2.7xFood1
Clothes and footwear
Housing and Consumer
durable2
Health
Transport and
Communication
Education and Leisure3
Others4
TOTAL
1.Includes spend on Alcoholic beverages and tobacco (excludes food sold by catering services such as restaurants, hotels, kiosks, etc) 2.Includes spend on Utilities, homecare products, servant salaries, consumer durables, home renovation, rent3.Includes spend on Internet, entertainment (picnic, eating out, etc), children education 4.Include: Personal care, baby care, EMI, loan payment, Holidays, social gatheringsSource: Euromonitor, NSSO, India Retail Report; BCG Indian Consumer Survey, N=6278, BCG analysis
India Fashion Forum 2016.pptx 3Draft—for discussion only
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Three big questions
Formats
Categories
Capabilities
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The ABCDE of what consumers want
E
Experience
A B
AvailabilityBreadth of
assortment
C D
Deals &
discountsConvenience
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The new consumer wants to break the compromise
Spend AND save
Traditional AND modern
Blend in AND be distinctive
Comfort AND style
Convenience AND experential
Touch and feel AND digital
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The rise of new categories will happen at the intersection
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There is no separate online or offline world
Procurement journey – e.g. buying a pair of jeans
Physical In StoreStores
PhysicalOut of store
Digital
In
Store
Digital
Out of
Store
• Product information kiosks
After leaving the store, goes on a social media website to give
feedback, care instructions, etc.
Customer notices an ad for seasonal offers and goes online to
find a pair that they need
Customer aware of products by advertising, or through word of
mouth
Customer checks social media product reviews on their iPad on
the way to the storeCustomer uses an branded digital
App on mobile device to locate various jeans options in-store
Back at home, they check loyalty points balance on their device and see offers for them at local store
Buyer uses cart-based self-checkout to purchase
Customer notices in-aisle promotions
Sales made in stores, but influenced by online channels
Research Locate Shop Post-
purchaseDelivery
Customer tries on the jeans in store
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10 years
0
200
400
600
800
1,000
1,200
1,400
20102007 2009 201520142011 2012 201320082006
Indexed stock price
Walmart Macys NordstormAMAZON BEST BUY
Note: Base = 100Source: BCG ValueScience
Long term view : Clear winner
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0
50
100
150
200
250
300
350
400
450
20152014201320122011
Indexed stock price
AMAZON BEST BUYNordstormWalmart Macys
5 years
Medium term view : The answers change
Note: Base = 100Source: BCG ValueScience
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Retailers are going omni-channel
US : 8/10 of top e-comm players are
retailers
UK : 7/10 of top e-comm players are
retailers
1
2
3
4
5
6
7
8
9
10
1
2
3
4
5
6
7
8
9
10
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Winning in multi channel...
Zara's
new "green store"
• Store features the latest
advances in sustainability:
– Motion detectors to dim
lights when needed
– Thermostats to regulate
heating and cooling
– Air curtains at entrance
door to prevent hot or cold
air from entering
• Wood materials used inside
were sustainably harvested
New Balance's "experience
store"
• Store designed to reflect the
heritage and spirit of the
century-old brand
• Shoemakers assemble
sneakers in real time in the
upfront space of the store
• Each pair sold in special
“Assembled in NYC” bag
stamped with the edition
number and date made
Apartment 32's
"chic apartment store"
• Store resembles a chic city
apartment, featuring a couch
and kitchen counter
• Customers are referred to as
“house guests” and can relax
on a couch and sip espresso
while shopping
• Store has “no-talking on
smartphones rule"
Source: News searches, sprignwise.com
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...as well as use different types of "Retailtainment" to engage
customers during the purchase process
Climbing and hiking
at Globetrotter
Fashion advice
at Topshop
Trial gear and showers at
Adidas
• Adidas' runbase store in Tokyo
uses "tryvertising":
– customers can borrow
shoes and clothing to try
then on a running track
• Store is also a running club
that Includes shower cubicles
and lockers for rent
• Expert staff on hand offers tips
and recommendations
Source: News searches, sprignwise.com
• Topshop's Oxford Circus
flagship had famous fashion
designers, stylists and
models give fashion advice
to Topshoppers
• Advice was offered through a
unique, interactive mirror
installed on the ground floor
• Globetrotter stores feature
experiential elements:
– Rock climbing wall
– Different floor surfaces
– Pool for kayaks & canoes
• Enthusiastic staff with
expertise in specific sports
offers advice and passes on
interest for other activities
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RTRWarby Parker Bonobos Birch Box
Move from the other side as well
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Lululemon
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