Category Archives: E-commerce

The importance of Mobile Apps for fashion retailers

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It is no surprise that in the fast developing digital environment there is a great demand for fashion at our fingertips. Mobile apps are a highly significant development in mobile communications, indeed all digital communications, as they highlight a change in the method of delivering interactive services and content via mobile phones (Chaffey and Ellis-Chadwick, 2012). In our digital environment more and more people spend infinite amounts of time on their mobile devices enabling them to browse for share and buy products.

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According to Ratcliff @ Econsultancy (2015), there are 7 reasons why retailers should have an app:

  • The competition has one
  • Some people just love using apps
  • Increased conversion – According to an ABI Research survey 40% of US respondents who had downloaded a retailer app said they bought more of that brand’s products.
  • You can communicate with your customers instantly – you can use push notifications to immediately inform users of information updates or relevant news
  • Ease of payment – Smartphones in built technology can allow users to pay in-store instantly (Apple are currently doing this)
  • Improving in-store experiences
  • Extra value

The goal of apps for most organisations will be to increase awareness and sales, although the latter will generally be limited to publishers or specialist software developers (Chaffey and Ellis-Chadwick, 2012). Specifically for fashion retailers with fast turn around, apps enable them to communicate new products and offers directly to their customers. Furthermore this selling channel is convenient, user friendly and more personal for the customer.

 

H&M launched their first transactional app in 2013. As a user I find the app to have good usability and interaction and often use it instead of the website to purchase clothes. The scan feature of the app is particularly interesting (See the print screen images below). It allows users to scan the barcode of an item in-store in order to view, buy and share the product online. For retailers, these smartphone-enabled mobile apps represent a growing opportunity in the omni-channel (Taylor and Levin, 2014). This is important as fashion savvy consumers will want to take advantage of all channels when buying their products.

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Images from H&M app (2015)

New image recognition apps are being noticed by fashion retailers (Hickey, 2014). Apps such as SnapFashion and Style-eyes allow users to upload images of items they like and the app then searches for the item letting you know where to buy the item or similar alternatives. Although these types of apps are not always 100% effective, they do present an opportunity for fashion brands to adopt a similar feature linking to items in their catalogue.

 

However there are drawbacks of launching a mobile campaign. Apps need regular maintenance and updating in order to ensure they remain interesting, attractive and relevant. Additionally, Moth @ Econsultancy (2013) states Data from our new Mobile Commerce Compendium shows that, more than anything else, consumers want to be rewarded with exclusive offers if they download a retail app, with 38% of respondents selecting this as an important feature for smartphone apps.

 

Mobile Apps have quickly become an essential part of all major fashion retailers customer offering and look to be a permanent fixture in the future ecommerce relationship between seller and buyer. The App design must reflect the image of the fashion retailer if it is to remain an attractive and fun shopping experience.

 

REFERENCES

 

Can click and collect save the high street?

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The working assumption of many commentators has been that the growth in on-line retail, together with the economic downturn, would lead to a widely predicted demise of many high street stores. In 2013 the BBC reported analysis from PwC and The Data Company that retail chains in Britain shut an average of 20 shops a day last year (BBC, 2013).

 

Click and collect delivery allows online shoppers to browse for and purchase products on-line but pick them up in a physical store. This delivery option has become a growing trend due to its convenience and cost effectiveness and is ideal for customers that work during the week so that they don’t miss the delivery man at home. Moth @ Econsultancy (2013) states that 80% of UK consumers have reserved a product online for in-store collection, while 20% do this at least once a month.

 

There are numerous advantages for the retailer and the customer. For the retailer the problem of delivering to the customers home has always been finding an acceptable and profitable balance between customer convenience, distribution cost and security (Fernie and Sparks, 2009). Click and collect therefore reduces the problems of trying to deliver when no one is home, decreases lost or stolen parcels and is more cost effective than making peak time deliveries direct to the customer. Importantly, for the retailer, the click and collect service brings customers in to their stores and this therefore presents the opportunity for impulse buying. Shoppers are able to see what’s on offer and potentially notice and take advantage of in-store only deals.

 

For the customer there is less wasted time waiting at home for a delivery and it is easier to return goods in the store without having to repackage and arrange collection.

 

The popularity of click and collect has recently been seen by John Lewis. Customers are able to pick up their items from John Lewis stores as well as around 100 Waitrose stores. Simon Russell, director of retail operations development is stated as saying click and collect has overtaken home delivery at “just over 50 per cent over the last few months” and this grew to 56 per cent over the busy Christmas period (Telegraph, 2015). Although John Lewis’s counter sales are falling they have argued that their physical stores are an important part of their multi-channel shopping strategy.

 

 

On its own, Click and collect, will not save the high street, it is clearly best suited to those retailers who have both an online presence and a substantial high street geographic footprint. Independent shops unable to invest in an equivalent strategy will be further disadvantaged but any strategy that keeps the big name retailers in bricks and mortar and encourages customer footfall must be good for our High Streets.

 

REFERENCES

  • BBC. (2013) High street chain closures soar, says research. BBC Business. [Online]. 18th Feb 2015. Available at: http://www.bbc.co.uk/news/business-21611772
  • Moth, D. (2013) 14 reasons behind John Lewis’ 44% increase in online sales. Econsultancy. [Online]. 18th Feb 2015. Available at: https://econsultancy.com/blog/11417-14-reasons-behind-john-lewis-44-increase-in-online-sales/
  • Fern, J., Sparks, L. (2009) Logistics and retail management: emerging issues and new challenges in the retail supply chain. London: Kogan Page
  • Gosden, E., Ruddick, G. (2015) Click and collect overtakes home delivery at John Lewis. The Telegraph. [Online]. 18th Feb 2015. Available at: http://www.telegraph.co.uk/news/shopping-and-consumer-news/11324611/Click-and-collect-overtakes-home-delivery-at-John-Lewis.html