FeaturingHot Topics: Click & collect; personalisation. 4

No room for complacency. 8

Black Friday here to stay. 12

Safety and security in focus as sector comes of age

THEBUSINESSDESK.COM SUPPLEMENT | NORTH WEST | APRIL 2015

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North West SupplementApril 2015

E-commerce at 21 – shopping habits transformed

2EDiToR FoREWoRD

ContentsSponsor forewords: Samantha Livesey, partner, Pinsent Masons; Rob Cotton, chief executive, NCC Group. 3 ➔

How the personal touch means big business. “Personalisation” and “click-and-collect” are currently defining the evolution of the online retail sector. 4 ➔

Digital firms ‘turning work away’ due to skills shortage. Concern over digital skills shortage. 6 ➔

No room for complacency. Report highlights growing risk of online security attacks. 8 ➔

New rules bring risk of much higher fines. Law firm Pinsent Masons is warning retailers need to be mindful of tough new EU regulations regarding use of shoppers’ personal data. 10 ➔

Round table discussion: Leaders share their insights into staying ahead of a fast-moving market. online retailing is growing at a phenomenal rate - and

companies based here in the North West are at the forefront of this evolution in myriad different ways. 12 ➔

IT’S remarkable to think that little more than 20 years ago there was

no e-commerce, no Amazon or ASoS.This fascinating sector has arisen on the back of the technology boom as internet use has transformed forever the way consumers shop.

Growth is such that online retail is expected to be worth $2.5 trillion of sales in the next three years, with m-commerce (shopping via

smartphone or tablet) seen as a particular driver of growth.

of course while this subject is of universal interest it would be remiss not to mention some of the North West leaders in e-commerce which are setting the standard for others to follow.

Having transformed itself operationally and financially over the last few years Liverpool-based Shop Direct is a leading innovator in e-commerce with its own in-house user experience lab to bring customers into its business to see how they shop and navigate its websites.

Just last month the Speke-based company picked up a hat-trick of awards at the oracle Retail Week Awards, including the coveted title of ‘pureplay etailer’ of the year.

Another private company, The Hut Group continues to grow apace and has just been cited as the UK’s most profitable private business for a second year according to the Sunday Times Profit Track 100.

A milestone 12 months for the Northwich company has also seen it receive investment from US investor KKR and commit to a giant new distribution centre near Warrington, creating hundreds of jobs.

it’s not just the big names – Missguided – a young fashion website based in Manchester has enjoyed dramatic success thanks to a tie-up with A-list singer and celebrity Nicole Scherzinger and is hoping to double its sales to £150m by March 2016.

it’s a game of high expectations and high returns, reflected in the somewhat rocky time Ao World and Boohoo have had on the public markets since their promising 2014 iPoS on the full list and AiM respectively.

For both Boohoo and Ao it’s now a question of focus, on restoring investor confidence and delivering on the international growth potential both have pledged.

While this supplement looks at future trends in e-commerce, we have analysed the risks too – with security fears an obvious barrier for many consumers and new EU regulations governing the use of personal data around the corner.

it has been fantastic to work on this project with law firm Pinsent Masons and NCC Group and tap into both organisation’s deep knowledge and insight of this subject.

Chris Barryeditor, TheBusinessDesk.com

Portland Tower, 53 Portland Street, Manchester M1 3LF.Tel: 0161 238 4922

Editor: Chris Barry chris.barry@thebusinessdesk.com

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oNLiNE retail has established itself as a colossal industry in just 20 years.

But at the same time, we’ve seen an industry grow in tandem. Cyber crime. This is big business too. it’s difficult to

put a definitive price on it but some estimates put the cost to the global economy at $445bn (£290.3bn). And retail businesses have found themselves frequently in the firing line.

Security breaches affect a retailer’s relationship with its most important stakeholders – the customers.

We carried out a survey of 10,000 consumers last year, and 64% are concerned that their credit card/financial information will be

compromised within the next year. on top of this only 21% felt very safe when on retail sites. online security is clearly a concern.

Against this backdrop of the growing cyber threat, we find ourselves in the midst of the biggest change to the internet since it was first created. We used to have just 22 gTLDs to choose from, but iCANN – the body responsible for managing the domain system – is rolling out thousands more. These include everything from .london to .shop and even .bank.

The new gTLDs have created a wealth of opportunities for retailers with a whole range of new branding options available. But they have also established new avenues for cyber criminals and have the potential to cause confusion for both consumers and organisations alike. Protecting your brand online has become much more complex.

online retailers must have a strategy to navigate this ‘new internet’. At NCC Group, we can guide you through this journey with our full suite of Domain Services.

on top of this, we have developed a unique gTLD ourselves called .trust that aims to create a safe community of websites on the internet – ideal for retailers that want to clearly show their customers that they take security seriously.

We are the retail industry’s trusted advisor for the new internet – and we’d be delighted to talk directly with retailers in the region.

PiNSENT Masons was delighted to host the latest Business Desk roundtable event on future trends in e-commerce. The lively debate that took place on topics such as the impact of Black Friday,

retailer engagement with consumers via technology and online international expansion shows the huge passion and enthusiasm of North West retailers to succeed in this highly competitive market.

Without doubt, many retailers are now turning to new technologies to engage with consumers and drive brand loyalty. The prolific use of smart phones, tablets, apps and social media enables

retailers literally to place their brands in front of consumers every day and for consumers to benefit from a quicker more targeted shopping experience without leaving the luxury of their armchair.

The huge benefit for retailers is the ability to collect significant amounts of valuable personal data and then analyse it to tailor advertising to their customers, predict future trends, improve store layouts and create efficiencies in their business.

The collection and exploitation of personal data is regulated in the UK and across the EU by data protection legislation. This legislation must be adhered to by any entity collecting and using individuals’ personal data, whatever the sector or context. For retailers it is particularly pertinent as they must let customers know

what information is being collected about them, how it will be used, and if it is being passed onto third parties. From a practical perspective, the implementation of robust security practices is also vital to protect personal data from unauthorised access and use.

As mentioned later in the publication, there is a new EU Data Protection Regulation on its way into force which will increase obligations and the ability of the regulators to take actions against non-compliance. With this in mind, now is the ideal time to take action to secure compliance.

Land of opportunity3 Sponsor forewords

Threat of cyber crime more prevalent

Now’s the time to think about new data rules

Rob CottonCEO, NCC Group

Samantha LiveseyPinsent Masons

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Online “personalisation”The aim is to place the right product in front of the right person at the right time.

Personalisation increasingly works by utilising both the existing shopper’s behaviour – as well as that of other online customers - to make “dynamic product suggestions.”

THEY are two of the major developments within online retail – and they have the potential to generate billions for the sector.

The technology now exists to ensure that when people go shopping online, the websites they look at “personalise” that experience for them by remembering their preferences.

And equally important is the increasing availability of “click-and-collect” as a way for people to swiftly buy products online before collecting them from a store of their choice at a designated time.

Adam Hindle, director of web design and digital marketing agency Fluid Digital, sums up their importance thus: “Personalisation and click-and-collect

are key to the future growth of retail.

“With shoppers being more and more time poor it’s vital that retailers make it as easy as possible for them to quickly find the right product.

“Click-and-collect takes this further by giving shoppers the flexibility to collect their purchase at a time when it’s most convenient to them - taking the frustration of waiting in the house for an online delivery out of the customer journey.”

Damian Hanson, chief executive of multi-channel technology developer, one iota - which is headquartered in Manchester’s Sharp Project - observed: “Retailers are starting to see the benefits of connecting with their shoppers in new ways as they adopt new technologies that bridge the gap between the online and offline worlds.

“As retailers work to better understand the customer and their shopping habits, we’re likely to see a huge increase in personalisation – both in-store and online.

“And not least those intuitive features which point shoppers in the direction of similar products they might like.”

4➔

“Personalisation” and “click-and-collect” are currently defining the evolution of the online retail sector. Ben Rooth discovers how pioneering North West companies are creating the future.

How the personal touch means big business

➔

Adam Hindledirector, Fluid Digital

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“We’re making it easier for them to shop by tailoring our websites for them. This is the digital equivalent of Selfridges laying out their oxford Street store for each shopper.”

Shop Direct’s personalisation initiative is expected to add more than £20m in sales in the current financial year alone.

But the main challenge for online retailers looking to place “personalisation” at the heart of their operations remains privacy legislation.

Hindle added: “Processes need to be in place to ensure the privacy of the data the customer is expected to input and how this is used.

“Consumers are increasingly conscious of how retailers are using their data.

“So it’s key for the retailer or the brand to communicate to their audience how the data they share is used to ultimately improve the shopping experience and help inform the customer of relevant offers and insights based on their purchase journey.”

Click-and-collectClick and collect can bring people back to the high street as it provides opportunity for retailers to exploit the time spent in store on collection.

Hindle explained: “There has also been an increase in ‘webrooming’, where shoppers browse online and come in to store to try and purchase the product.

But – largely due to budgetary constraints - it has historically been limited to the major retailers.

Nevertheless, an increasing number of smaller retailers are now starting to realise its benefit while technological developments are simultaneously making personalisation more affordable.

Hindle added that the most effective sites also personalise the “specific shopper experience” depending on whether that

customer is a new or repeat visitor, where they’re based and even the time of day.

He explained: “The majority of ecommerce websites already have an element of personalisation but we’re starting to see clients wanting to

develop this and make their sites even more intelligent.

“For example, making product suggestions based on browsing and purchase history in the same way that Amazon does.

“There is now software available with a low set-up cost which we are currently testing with some of our clients to see how this affects their conversion rates on site.”

Earlier this month, [April 2015] Liverpool-headquartered digital retail group Shop Direct announced that it had become the first online retailer to give its customers a “fully personalised” homepage at its flagship brand Very.co.uk .

The breakthrough was hailed as a major step towards Shop Direct’s stated goal of building the world’s most personalised digital stores, which will give customers an easier, more intuitive shopping experience.

Visitors to the website are now greeted with homepages designed specifically for them.

‘We know that relevance wins in retail and right now customers are drowning in a sea of

irrelevant choices.’

This means that the 20-something who shops with Very.co.uk for the “perfect party frock” can find her favourite fashion brands “front of shop”, whilst the homemaker looking to furnish their property can instantly view electrical and homeware offers.

Shop Direct can currently serves 1.2m versions of the website to its customers and it expects this to have reached 3.5m by the end of the year.

The company has achieved this level of personalisation by harnessing its wealth of customer data.

its team of data scientists have developed a suite of complex algorithms to predict customer behaviour and therefore optimise the homepage with targeted products and offers.

Shop Direct group chief executive Alex Baldock said: “We’ve set ourselves an ambitious target to build the world’s best personalised shopping experience – this is a major step towards that goal.

“We know that relevance wins in retail and right now customers are drowning in a sea of irrelevant choices. ➔

Alex Baldockchief executive, Shop Direct

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DiGiTAL skills shortages remains a major concern to businesses in the North West....

THE shortage of digital skills is one of the major issues on which Manchester Digital campaigns.

The organisation represents the interest of the North West’s fast-growing digital sector and runs a number of events, initiatives and projects designed to connect, enhance and retain talent in this region.

Managing director Katy Gallagher said that the shortage of digital skills remains a “major concern” for companies operating in the sector.

She explained: “of the digital companies based in this region, 80% grew last year - but some of the smaller businesses ended up turning some work away.

“The reason for that is because they simply can’t cope with the volume of work available because they don’t have the personnel to take care of it.”

Manchester Digital is working closely with companies in the sector - as well as universities and schools - to help resolve this issue.

Gallagher added: “We’re in the process of drawing up strategies to deal with this.

“Long term, we intend to lobby at the highest levels to ensure that the importance of the sector is known about and also to change the way that digital education is taught in schools.

“At the moment, all the political parties are committed to apprenticeships - but it’s not always viable for some smaller digital companies to take these on.

“in addition, there remains an issue surrounding work-readiness of some graduates emerging from university.

“But - nonetheless - good graduates will continue to be snapped up for the foreseeable future.

“We’re in the process of examining what digital talent looks like at every point of its life-cycle.

“i think that once we’ve accomplished this then we’ll be able to make even greater progress when it comes to working with digital businesses and advising schools and universities about what’s best for the sector’s future.”

Digital firms ‘turning work away’ due to skills shortage

“This is obviously great for retailers and emphasises the importance of a seamless multi-channel experience.”

Many industry experts believe that collect+ will revolutionise the ability of retailers of all sizes to tap into the potential of click-and-collect.

More than 5,800 stores nationwide are already signed up to the service which allows parcels to be sent and collected at a convenient time.

Hindle added: “Clients are also realising that services such as collect+ can really help their business and allows them to offer a nationwide click-and-collect service.

“one of the main considerations for retailers is making sure that they have robust multi-channel systems in place to seamlessly manage the process paying - particular attention to stock.

“Click-and-collect is a win-win scenario for both retailers and consumers.

“The benefits to retailers include an increase in conversions online, whilst giving them the opportunity to boost sales in-store through impulse buys on collection. it can also help reduce costs

on processing and delivery.

“Ultimately, click-and-collect improves the online shopping experience for consumers, which ultimately leads them to spend more money.”

Our connections, your successPinsent Masons, proud to serve North West businesses locally, within the UK and across the globe.

To find out more about global law firm Pinsent Masons in the North West region please contact Samantha Livesey at samantha.livesey@pinsentmasons.com

© Pinsent Masons LLP 2015

www.Out-Law.comwww.pinsentmasons.com

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before about protecting their personal and financial information online, with the same number expecting security breaches to get worse over the next year.

“Whether it is born out of media hype, or first-hand experience, it’s a clear message to online businesses. Security is moving up the consumer agenda.”

About 85% of respondents in the both the UK and US fear their credit card/financial information will be compromised at some point.

“Many argue that businesses have an ‘it won’t happen to me’ attitude when it comes to data breaches,” the report says. “But consumers are growing more concerned about the safety of their information.

SiNCE the Sting album Ten Summoner’s Tales became the first online transaction 20 years ago, internet retailing has changed

shopping habits forever.

Amazon, which has not a single ‘bricks and mortar’ store has become a global phenomenon, while closer to home online pureplays including The Hut Group, Bolton-based Ao World and fashion brand Boohoo have become leading players in their respective market sectors.

But a new “Trust in the internet Survey” from NCC Group, the Manchester-based global information assurance specialist shows companies which do the bulk of their business online cannot afford to be complacent.

The study, for which 10,000 consumers were questioned, underlines a contrast between UK and US customers. on the other side of “the Pond”, respondents to the survey are more likely than those in the UK to express discomfort over buying online. Why? Because of concerns over possible breaches of security.

Key findings were: 77% said they no longer feel very safe when buying

goods on the web; 62% said they are more concerned about online security now than ever before;

84% of people bank and shop online, however, just 21% feel “very safe” when doing this. Just eight per cent of people feel “very safe” on social media websites.

Up to 56% of those surveyed said that they often have to share information that they would not normally feel comfortable sharing in order to complete online transactions

A total of 64% of think they will be a victim of a breach within the next 12 months.

Potentially, such fears are a major barrier to the continued expansion of internet trading.

“The worry about online transacting has reached a peak,” the report says. “Roughly, two thirds of respondents are more worried now than ever

8➔

The ‘bad guys’ are very fleet of foot, very motivated because there is a lot money that can be made.

No room for complacency

➔

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“Currently, the responsibility for a safe online experience hasn’t been grasped by anyone in particular. There are parts that customers can handle – such as strong passwords – while certain elements can only be addressed by businesses, such as their internal security processes.”

The study revealed that 88% of respondents believe companies should be legally obliged to disclose security breaches.

A similar number also said firms which use personal and financial information online should compensate consumers financially if they lose that information because of data breaches.

NCC Group technical director Paul Vlissidis

likened current complacency to the debate about surveillance.

“it was argued a few years ago that we were sleepwalking into a surveillance society, and now it appears we could be sleepwalking into a world of internet fraud,” he said.

“As people are using the internet more and more we are seeing more stories of major breaches and data loss. it doesn’t seem as though the situation is getting any better.”

Vlissidis said the fight against online fraudsters was “a hill of sand”.

“The bad guys are very fleet of foot, very motivated because there is a lot money that can be made out of this kind of stuff.

“We can keep designing better systems and they will keep finding ways round them.”

But he said many companies are not even doing the most basic things to deter online crime.

“There are measures companies can take that will dramatically improve their security which cost very little.”

And he pointed to Cyber Essentials, a Government scheme aimed at smaller businesses to help them improve their security.

“The problem for a lot of SMEs is that they will use a third party to deliver online payment services,” he said. “At the

‘In Europe we take a slightly differently point of view and are more circumspect about privacy and that personal information belongs to the person.’

moment there is no pressure for those organisations to do it securely.

“Unfortunately we are in a re-active environment, not a pro-active one. Whenever there is a breach everyone runs around wanting to know what the issue was, then it all dies down again and they forget about it until it happens again, which is not a good thing.”

Retail analyst at Manchester Business School Tarlok Teji said issues of trust and transparency in the online sector were still ongoing.

“A lot of this relates to demographics,” he said. “When you look at the 14 to 24 age group, they have grown up in the digital age and operate in a world where they say they don’t care who knows their personal information.

“Then there are the older age group who do care about safeguarding their personal information. So the challenge of personalisation versus privacy is one that is yet to be played out.

“i do agree with NCC Group that there is a brake on e-commerce which could be lifted if we could tackle this whole issue of people feeling safe on the internet.

“i know that in the US organisations like Facebook are pushing this issue, saying that data doesn’t belong to anyone – that anyone should be allowed to use it.

“in Europe we take a slightly differently point of view and are more circumspect about privacy and that personal information belongs to the person.”

Teji said that the massive expansion in payment platforms and methods presented a challenge to credit card companies. “Some of the payment processes aren’t that secure,” he said.

Executive director at EY in Manchester, Victoria Spencer, said cyber security is now a board level issue for many large firms.

“Companies are starting to make it a strategic, long-term priority to protect themselves against threats,” she said.

“However, many other firms remain vulnerable, viewing cyber ➔

Paul Vlissidis technical director, NCC Group

Tarlok Tejiretail analyst, Manchester Business School

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resilience as a technology rather than a business issue – failing to see the economic and reputational implications of cybercrime.

“As a result, security offers in some organisations cannot

secure the right level of funding to adequately protect them in the short term, meaning they’re unable to keep up to date with constantly evolving threats.”

She said that brand loyalty and trust is particularly important in online retail.

“Companies in the sector will continue to invest in cyber security and this will remain an important theme in the industry, as new threats continuously emerge.

“What might happen is that companies could start accounting for the cost of

breaches in their P&L, which might lead to an investment in insurance – alongside cyber security assurance services – to cope with the increased direct and indirect losses.”

However, according to Simon Lord, managing director of Manchester-based corporate financiers Altium, it will take an awful lot to stop the online retail juggernaut.

“E-commerce has grown inexorably over the last 10 years and there are some fantastic North West-based businesses in the sector. There will always be certain sections of the population who are uneasy about handing over data, but there is an overwhelming move towards e-commerce businesses.

“interestingly, there is a move of traffic away from PC to mobiles and tablets. There have been security breaches, but it has not stopped that movement.”

Head of consumer business and partner of Deloitte in the North West

Rachel Argyle said that it was unlikely consumer habits, which have changed enormously during the last few years would be reversed.

“For a lot of people buying online is an easier and preferable way of shopping,” she said. “Yes, there is a risk if people are putting their bank details online, but i agree also that it is a generational thing.

“Many young people have a very different attitude to older people as consumers. They don’t mind being contacted by mobile phone about various offers, unlike the older generation.

“But in general i think people are prepared to take the risk and there is an acceptance that life is getting faster all the time, although that is not to say that online retailers should not ensure their security is not top notch.”

Victoria Spencerexecutive director, EY

LAW firm Pinsent Masons is warning retailers need to be mindful of tough new EU regulations regarding use of shoppers’ personal data.

Due to be enacted in the next 18 months the rules will apply to both e-commerce businesses and traditional retailers gathering data from websites or mobile phones used by visitors to their stores.

Companies found to be in breach will face much more punitive fines too.

Manchester-based partner Samantha Livesey explains “The new EU regulations will directly apply in the

UK and across Europe. on the plus side they will bring consistency so retailers are going to know exactly what their compliance requirements are if they are selling into the UK and Europe.

“They include though a much more stringent obligation in respect of obtaining consent from their customers and what retailers then do with that personal data in order to exploit it.”

on the critical question of fines, she says: “For a serious breach under the UK Data Protection Act companies can be fined up to £500,000, though we have rarely seen anything near that. But when the new regime comes in the regulator will have the ability to fine up to 5% of worldwide turnover, which is a huge jump and brings it on a par with competition law.

“All of a sudden it’s going to be something that all of the board is going to be much more interested in.”

With the explosion of ‘big data’ many retailers already use technology in

store to identify the areas shopper visit.

Livesey says: “Profiling, under the current data protection laws, when it’s using identifiers rather than personal data is fine, you can do that without having to obtain consent, but once the new regulation comes into force, it’s likely that this is something retailers need to get consent for.”

Pinsent Masons is already working with a number of major retailers to inform and educate them about the new rules.

Livesey says: “With behavioural advertising and personalisation on the increase, retailers absolutely need to be thinking out this.

“We are working with a number of large retailers in respect of their activities around data collection and data exploitation to make sure they are operating within the current legal regime, but also forward-looking to make sure they are compliant well in advance of the regulations being implemented.”

Rachel Argylepartner, Deloitte

New rules bring risk of much higher fines

E-commerce your customers can .trust

www.nccgroup.trust

Get in touch to find out more about how we can protect your brand in the changing Internet landscape with our new .trust domain.

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There was general consensus among delegates that Black Friday is here to stay.

Robert Brigham added that Ellis Brigham – one of the country’s largest vendors of outdoor clothing and ski-wear - placed just eight lines on sale on Black Friday.

it stocks more than 2,000 different products.

He added: “i don’t think that consumers necessarily went bargain shopping

ONLiNE retail has established itself as a colossal industry within a comparatively short space of time.

it’s a little over 20 years since the first online transaction was made, but many industry analysts are already predicting that the sector will be worth $2.5tn globally by 2018.

Here in Britain, shoppers spent £21.6bn online last Christmas – representing 13% growth on the previous year.

The success and sustainability of online retail - regionally, nationally and internationally - came under the spotlight at a recent round table discussion organised by TheBusinessDesk.com in partnership with law firm Pinsent Masons and online security specialists NCC Group.

The topics discussed included: whether Black Friday is good for the sector; harnessing the power of social media; achieving international growth; and ensuring legal compliance with data protection.

one of the first topics under the spotlight was the “Black Friday effect” and

whether the phenomena, an import from the US, is here to say.

Carol Kane of Boohoo.com, said: “Last year, we completed around two and a half times the volume of sales that we would normally complete on that day alone.

“Consequently, it was a really good test of our stress levels – and most importantly we managed to deliver.

“We sold 73% of our goods at full price on the day... so it seems to have been a case of people getting caught up in the momentum of shopping.

“Not everyone was bargain shopping.

“But is it good for the sector? i believe that it delayed the sales and pulled forward the December sales – and as a consequence, we saw a slight drop off in mid-December...

“And i think that the omni-channels and bricks and mortar picked up some of these sales.” ➔

12RoUND TABLE

Leaders’ tips and insights to stay ahead of the game

Online retailing is growing at a phenomenal rate - and companies based here in the North West are at the forefront of this evolution in myriad different ways. Ben Rooth reports...

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AttendeesThe

Samantha Livesey, partner, Pinsent Masons

Paul Vlissidis, technical director, NCC Group

Steve Whitehead, commercial director, The Hut Group

Chris Howard, head of digital, Shop Direct

Carol Kane, joint chief executive Boohoo.com

Tarlok Teji, retail analyst, Manchester Business School

John Williams, director, EY

Adam Hindle, director, Fluid Digital

Matt Ryan, relationship director, Barclays

Robert Brigham, managing director, Ellis Brigham

Craig Forster, director, Designer Habitat

on Black Friday – they simply went shopping.

“And i don’t think that it necessarily created new customers for us...

“But Black Friday certainly did us no harm – but it’s difficult to put a figure on the good that it did.

“it brought forward the sales and gave a completely different picture in December when we don’t heavily discount.

“What would be interesting is to know whether the same amount of money would have been spent if Black Friday had not been there.

“it’s been well documented that the stress caused by increased sales caused things to go wrong for some retailers.

“And as far as some consumers were concerned, this led to a degree of insecurity – they weren’t sure whether their Christmas presents were going to arrive and this led to a move to bricks and mortar rather than buying online in that run up to Christmas.”

Matt Ryan, of Barclays, added that research undertaken by his bank suggests that “savvy consumers” had researched the lines they intended to buy in advance of Black Friday.

He explained: “They’ve already made the choice about that they want and then they wait until the day...

“if it’s discounted great - they’ll save on it - and if it isn’t then they’ll just buy it anyway.

“i think that this is indicative of a trend we’re increasingly seeing for consumers to take a smarter approach to online retail.”

Use of mobile technology – challenges and opportunitiesWith more smart phones than there are people in the world, harnessing the “true power of mobile devices” has never been more important for online retailers.

Chris Howard, head of digital at Shop Direct – which includes brands like very.co.uk and littlewoods.com - added: “Mobile as a whole for us is 56% of total sales – it’s grown at 45% year-on-year.

“We don’t see too many challenges surrounding customer acquisition on mobile – it’s not quite the same as it is on desktop but it’s growing significantly.

“The interesting thing for us that historically we’ve traded via web and mobile – and we’re recently launched a transactional app for our Very brand at the end of last year.

“So far we’re seeing an improved conversion rate on that versus mobile web – but it’s all relatively early days for us.”

There was consensus among most retailers that it’s very important to “move with the trends” within emerging technology – like apps.

But it’s also important to appreciate that retailers frequently don’t suddenly discover new customers - but simply provide existing customers with a new way to purchase.

Carol Kane added that for “young brands” embracing new technology is as much about engaging with their customers as it is about selling.

She added: “What an app on a mobile gives us is a high level of engagement.

“Because you’re a little symbol on their mobile, you’re always with them – it’s like Facebook or Linkedin in that respect.

“if you’ve got that little symbol on there, then you’re in their mind – and, in that respect, it’s as much a marketing tool as it is a selling mechanism.

“And then they’re engaging with you because they’re putting items that you’re selling in baskets with a view to looking at them at a later date.

“in our experience, it’s all part of the customer journey.”

But Steve Whitehead, commercial director at online retail giant The Hut, agreed that teenage customers - in ➔

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particular - are far more “engaged” when it comes to mobile technology.

He explained: “i very much think that we’re witnessing a link between social media and the use of mobile technology in retailing – the two are merging far more closely than ever before.”

Carol Kane added: “it’s all about integrating social media into the whole shopping journey – you have to be able to display your products and ensure that your customers feel a sense of ownership of your brand.

“in terms of research, we get pretty much everything through the social media channels.

“The youth of today shares every aspect of their daily existence – and that’s the best kind of research you can do.

“i don’t believe in pushing advertising saying that this is what you should buy – it’s almost like the consumers telling us through the social channels how they want us to

Whitehead added that “brand ambassadors” can be very worthwhile - depending on the nature of your business.

He explained: “We’ve got a number of ambassadors for our protein and multi-vitamin ranges across rugby clubs, body building, football clubs as well as olympic athletes – and this seems

‘The youth of today shares every aspect of their daily existence – and that’s the best kind of

research you can do.’

to work well for us when tied in with social media.

“But we’re careful about brand ambassadors – particularly with the weight loss side of our business – as we don’t want a ‘superwoman ambassador’ who’s always fantastically slim.

“That’s not going to connect with the everyday users of our products.

“i think that it’s very important that you really connect – and the best ambassadors are those customers who use our products regularly, keep coming back to us and then talk about us on social media.”

From overseas deliveries... to click-and-collectSteve Whitehead explained that there are different “drivers” when it comes to delivering overseas growth.

He added: “if you’re an own brand and there’s only one place you can buy your product then you need to ensure that you’re constantly fully stocked overseas,

so you can always deliver within the lead time.

“We deliver to Western Europe within two days and also deliver in America.

“if you’re selling your own product, customers are often willing to wait for an extra day or two.

“But you can never underestimate the demand for immediacy within online retail”

Tarlok Teji, a retail analyst at Manchester Business School, agreed with this sentiment adding: “i think that we’re very much seeing the trend for immediacy coming through.

“Customers increasingly want to place an order by 10am and have it delivered the same day.”

John Williams, a director of business advisors EY, added that “click-and-collect” also remains an invaluable weapon in the online retailer’s arsenal.

He added: “Click-and-collect is great because it also brings the customer back into the physical store.

“i think that the challenge for click- ➔

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and-collect retailers over the next couple of years will be to optimise that experience.”

Paul Vlissidis, technical director at NCC Group, added: “My view is that click-and-collect is potentially quite good when it comes to stamping out fraud – someone has to physically go into a shop to collect what they’ve bought.

“if they know that they’ll be on CCTV then there’s a deterrent effect.”

Craig Forster, a director of kitchen to homewares retailer Designer Habitat, added: “We found click-and-collect a great solution – and it enabled us to utilise some of the large, well-known retailers as the place of delivery.

“internationally, we’re tailoring this according to what happens in those markets.

“For example, in some countries they’re accustomed to collecting parcels from lockers.

“it’s a case of finding your way around the challenges that exist in each country.”

Online retailing – the futureThere was broad agreement among delegates that an increasingly “personalised” or “tailored” shopping experience will define online shopping in the months to come.

Adam Hindle, a director of web designers and digital marketers Fluid Digital, said: “We’re actively talking to our clients about this at the minute.

“it’s about ensuring that the right products are placed in front of the right people at the right time.

“When someone comes onto your site and only buys a certain type of product then that’s what you need to ensure is consistently placed in front of them.”

John Williams, of EY, added that “big data” is fast becoming one of the defining topics within the sector.

He explained: “online retailers are constantly getting better at using the vast amount of data that’s at their fingertips to make data-driven decisions about running their business.

“And that – of course – makes total sense.”

Tarlok Teji added that those online retailers that place an emphasis on “security” will reap tangible benefits.

He explained: “i think that privacy and security concerns will increase.

these changes have the potential to be very important – and retailers need to be prepared.

“Every retailer operating online needs to be aware that profiling will be at the express consent of the individual who’s shopping with them.

“At the moment, you don’t need consent to track people anonymously – but that’s going to change if it can be shown that individual can be identified.

“The fines that are applicable to companies that breach the legislation are also changing – rising from £500,000 up to 5% of global turnover.

“in short, it’s an exciting time for the online retail sector – but companies need to stay ahead of legislative changes to achieve optimum growth.”

‘We found click-and-collect a great solution – and it enabled us to utilise some of the large, well-

known retailers as the place of delivery.’

“What the latest research from NCC Group shows is that there’s still a massive increase in the number of people using the internet for e-commerce – but it’s still being done reluctantly.

“There’s a definite trust issue surrounding the theft of both data and identity.

“Many companies will be able to increase sales if they actively show that security is at the heart of what they do.”

Samantha Livesey, a partner at Pinsent Masons, concluded that new data protection legislation will have a “profound” impact on the sector.

She explained: “From a legal perspective,