Friday, October 10, 2008

Synergy in Fashion - eMarketing Trade Show

It is the world of internet generation. Almost all companies have company websites to be on the trend. But many fail to maintain or update their websites thus defeat the purpose of it. To analyze how companies synchronize online and offline business, we selected fashion industry which changes constantly and should be the on top of trend.


The industry is categorized into three segments. For the high end, using Gucci as an example, the internet is to promoting brand awareness and product searching. Product availability in store can be searched on website is one of the example to drive the traffic to offline stores. Most of the high end brands do not offer online shopping but Gucci does offer some limited selection online in US and UK. People can watch the fashion cat walk show online which used to be exclusive to VIPs only.

For the basic segment, we have Land’s End which was originally a catalogue business then move to internet business. Internet helps them to expend the market further. Since it concentrated mainly on its online business therefore there is more features developed for the website.

Then we take a look at the Armani Exchange (AX) for the example of the middle segment. This is the good example we find the better synchronize their online and offline business. For their online business, there is shipping discount and online sales. Customer could sign up to be on their mailing list. To promote their offline store business, occasionally offering online coupon to be printed for offline store discount. This would be a good tool to track the number of customer visited their website and shop in the store to know how effective the online promotion is. Merchandise bought online can be returned in stores in Canada too. Most of the consumer dislike shopping online beside high shipping cost is the return or exchange issue. By provide option to return offline, consumer may be more willing to take the risk to shop clothes online. If they do need to return in store, traffic to store will be created as customer walked in stores and may shop for more.
The synergy is the consistancy between the online and offline promotion event were in place at the same time. AX collectes customer’s contact information to send them text message the latest event and promotion. AX used the e-technology to connect their customer to drive in store traffic. We believe this is a good promotion tool and will talk more about it later.




Here we evaluate the websites base on the “7Cs of Customer Interface”.


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Then we compare Armani Exchange with Lands’ End. From the chart we can tell there are still some areas they can learn from each other to improve their website. But by looking at it, we can easily tell the different characteristics and target customer of each brand. For example the target customer for AX are younger therefore the website is more creative and interactive. There are more audio and visual content. Because Lands’ End focuses more on their online business they provide more features to improve online shopping experience like online live customer services and customized model in your size.




Then, we would like to talk about using text message as a tool to synchronies online and offline business.





Using wireless technology (text message) to promote offline business is used widely in Asia. Many stores will send promotion message to their loyal customers who have provided their numbers voluntarily.




Text message promotion can work for small or large companies. In compare to traditional printing advertisement this method is cheaper and environmental friendly. It can also reach its target customers more efficiently because those are the one sign up for the notification. Text message can be easily forwarded and it can be another way of “word of mouth”. If the message can be designed to have customer show the message to receive a surprise gift or discount, it can be utilized to trace the effectiveness of the method. It is always very important to trace the effectiveness of the marketing strategy or plan to know whether the investments were well spent or where need to improve.







Then we would like to take a look at a good example of online shopping websites




Because customers can not try on clothes when shopping at Lands’ End, it provides a virtual model that can be customized in size and specific measure. Customers can virtually try on the outfit using the model in their sizes. Then turn the view to see how it would look like.


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Generally, to offer customer a good shopping experience, it should be user friendly. Often customer could get lost or stuck. Exclusive offer and more interactive function would definitely help. Since consumer can’t see the actual product, more detail description is necessary to help with customer’s shopping. And a good shopping website would have “recommendation” section that is easy for customer to find similar item they may like for saving time.


A good website would promote better brand image. If companies fail to update their website or synchronize their online and offline business, it may create mix message and confuse customers therefore would create a negative impression toward the company.




Our study found many companies’ website was identical or structured like a catalogue. Many companies still concentrate on their offline business and using traditional advertisement. Most of the company websites still served as information database but fail to spot the great marketing opportunity if they can better design and maintain the website. We believe there is still a big “market” for website improvement on online offline synergy.


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TeAM mates:

Terence Wang (http://bdcinternational.blogspot.com/)

Mitch Lyons (http://mitchellclyons.blogspot.com/)


Annie Yu (http://newvalleygirl.blogspot.com/)



For handout of our project, please visit Mitch's blog
For Trade Show board detail and other thought, please visit
Terence's blog

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