omnichannel lessons from value to luxury

Linking Omnichannel Lessons!

From Value to Luxury

Agenda

!  13:00 : Introduction!Darryl Adie, Ampersand !Roland Breadner, Rackspace

!  13:30 : How to bring a value retailer online!Sophie Albizua, eNova Partnership

!  13:45 : Meeting the demands of the luxury consumer!Darryl Adie, Ampersand

!  14:00 : Coffee Break

Agenda CONT.

!  14:15 : Retailer-to-retailer session!With synopsis of key discussions from each group

!  15:00 : Panel and Q&A: !Evolving with the connected consumer!Darryl Adie, Ampersand!Roland Breadner, Rackspace !Sophie Albizua, eNova Partnership!Tom Lodge, Magento (& previously Kurt Geiger)

!  16:00 Close

Introduction Darryl Adie, Ampersand!Roland Breadner, Rackspace

WELCOME

Roland Breadner, Head of eCommerce Practice

Darryl Adie, Managing Director

ABOUT RACKSPACE

9 Worldwide Data Centers

5,000+ Rackers

Global Footprint Customers in 120+ Countries

Annualized Revenue Over $1B

60% 100 OF THE

We Serve FORTUNE®

OV

ER

200,000+ 90,000+ Servers 26,000+ VM ≅70 PB Stored

Customers

Portfolio of

Hosted Solutions Dedicated - Cloud - Hybrid

ABOUT AMPERSAND

!  A technical agency focused on retail

!  Experts in multichannel integration

Working in Partnership

!  Fanatical Support©®@℗ for all customers 24/7/365. Available on the phone, in person and through the help desk

!  Dedicated Magento support team !  Named support and tech teams for Intensive

accounts !  Defined processes and responsibilities

Performance and Hybrid Hosting

!  Best of both worlds !  Performance of physical hardware (with PCI)

!  Flexibility of cloud (pay-as-you-go and quick to deploy)

!  Repeatable processes !  Standardised image-based provisioning

!  Puppet-based configuration

!  Repeatable deployment process

!  Immediate availability. Profit.

Hybrid Hosting Explained

Hybrid Hosting Explained

Reliable, secure, performance

Flexible, scalable

THE CHALLENGES OF VALUE RETAIL Online Sophie Albizua, eNova Partnership!

Value retailers and online

Sep 2014

The maths... !  Revenues: Basket size + delivery revenues

!  Costs: Logis>cs and supply chain costs (warehousing, PPD, packaging,

delivery / courier costs), product and head office costs: (Photography,

Marke>ng, head office, IT)

High value item Low value item

AOV £100 £10

Gross margin 50% 50%

GM £ £50 £5

PPD & delivery costs £5 £5

Photography and other fixed costs £4 £4

Net margin per order £41 (£4)

The maths...

(10)

0

10

20

30

40

50

60

70

80

£5 £10 £20 £30 £40 £50 £60 £70 £80 £90 £100

Profit per order at various AOVs

Gross Margin of 20%

Gross margin of 40%

Gross margin of 60%

Gross margin of 80%

The HURDLES... !  Low average order value

!  Low margins

!  Fast rotating lines

!  Batch / end of lines

!  Supply chain not set up for single picking

The SOLUTIONS... !  Minimum order value

!  Delivery charges

!  Click and Collect

!  Different product range

!  Different supply chain model

!  OR…..

OR...

cost revenue revenue cost

Thank You

[email protected]

Meeting The Demands Of The Luxury Consumer Darryl Adie, Ampersand

Luxury Conundrum

!  Customer expectations in luxury are often diametrically opposed to the traditional technological, physical and financial requirements of multichannel retailers

Luxury Conundrum

!  As a luxury multi-brand retailer, service may be your only differentiator!

Consumers Want...

!  An exceptional experience! !  Immediate availability

!  Fast delivery

!  Personal service

Luxury Decisions

Time

Experience Cost

Luxury

What That Requires...

!  Accurate stock availability, everywhere !  Harder when customer can pull items off shelves

!  Silos for stock !  High inventory risk for fashion

!  Contiguous service, all of the time !  Hard to achieve without personal relationships or a

significant loyalty-driven initiative

Combating Those Problems

!  Single view of stock !  Requires intimate integration with EPOS and online

!  But, what contingencies exist for failures?

!  Physical speed (time elapsed) !  Fraud-screening SLA

!  Batch or single-item picks? Store processes?

Draw Boundaries

!  Define parameters for cost, time & experience !  If an order can be fulfilled but only from three locations,

should it be?

Luxury Experience

!  Luxury retailers need to focus on time and experience !  Next and same day delivery

!  Beautiful packaging

!  Returns (easy and free)

!  Many delivery and returns services cater for the lowest common denominator

How Different Are Luxury And Value Retail?

Not a Luxury Experience

Creating Luxury Experiences

!  Click & Collect is not always a luxury experience

!  Don’t just ‘keep up’

!  Make customer experience your own!

Video case study

WATCH http://amp.co/hnrax

Click & Try

How Different Are Luxury And Value Retail?

Balancing Priorities

Time

Experience Cost

Luxury Value Retailer

Value & Luxury

!  Product not always differentiated

!  Experience is important for both !  Value builds for scale

!  Luxury builds for personalised experiences

!  Efficient processes key to meeting primary objective !  Luxury designs for exceptional service

!  Value designs for low cost

Remarks Leading Into R2R Session

!  What are the differences?

!  What are the same?

!  What can we learn from each other?

!  Where does your business fit now?

!  Where would you like it to be?

Coffee Break

Back to in 15 mins.

‘Retailer to Retailer’

‘Retailer to Retailer’ Session

•  If you could deploy one thing tomorrow, what would it be?

•  What keeps you awake at night?

(Be prepared to feed back key discussion points)

DISCUSS UNTIL 14:45

Panel + Q & A EVOLVING WITH THE CONNECTED CONSUMER Darryl Adie, Ampersand!Roland Breadner, Rackspace !Tom Lodge, Magento!Sophie Albizua, eNova Partnership!

THANK YOU Darryl Adie [email protected]!!Roland Breadner [email protected]