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Technology and its impact in the online fashion industry

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Old Navy. Survey Questions. How appealing is the web site? How user friendly is the web site? ... Old Navy has the most sales but less annual growth. ... – PowerPoint PPT presentation

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Title: Technology and its impact in the online fashion industry


1
Technology and its impact in the on-line fashion
industry
  • Group 3
  • Katie Reimer
  • Linda Jacobsen
  • Bill Messick
  • Jimmy Asip

2
Branding a Lifestyle and an Image
  • Internet advertising is impacting the way
    fashion retailers market and differentiate their
    brands by further developing their corporate
    images and accompanying messaging in accordance
    with their business strategies.

3
Causing this trend in high-end retailers
  • Retailers must align e-market place with their
    business strategies
  • Business Strategies may prohibit online sales,
    promote online-catalogs or encourage lifestyle
    marketing
  • Retailers with durable brands and corporate
    images find customers find them regardless
  • Many of these products not sold online
  • Need to feel, wear, see product before purchase

4
Advertising focusing on an image

5
Big Picture Snapshot
  • Department of Commerce eCommerce sales 86.3
    billion for 2005. Forrester Research reports
    12.5b spent on apparel.
  • Latent Buying, shop and buy later.
  • Browsing, compare, buying phase.
  • 4th quarter most important draws population to
    eCommerce more than any other
  • Jupiter Research more than 80 of shoppers
    browse online before in-store
  • comScore 63 of online browsers purchases off

6
US Advertising Spending
7
Website Evolution
8
Electronic Brochure Site Model
  • Created a visual internet presence for a company
  • Described its goods, services and sometimes
    corporate philosophy
  • Labor-intensive and time-consuming to modify
  • Minimal cohesive visual consistency and user
    interface design.
  • No site differentiation or personalized content

9
E-Commerce Site Model
  • Main purpose was to sell merchandise
  • Product catalogue and pricing information
  • More complex than brochure site. Addition of
  • Style sheets
  • Forms
  • Shopping cart functions

10
Business Application Site Model
  • Site differentiation is achieved by providing
  • Value-added information (reviews, suggestions,
    advice etc. )
  • Interactivity
  • Frequent, useful content updates
  • Information personalized for specific users or
    user groups
  • Converts users from passive viewers into active
    participants.

11
Technologies that Support the Business
Application Site Model
  • Broadband
  • Flash-ware
  • Secure transactions
  • Authentication (name and password)
  • Digital signatures
  • Encryption
  • Secure servers

12
Website Evolution Example
  • Brochure Site Model
  • Reebok 1996
  • E-Commerce Site Model
  • Reebok Store 2002
  • Business Application Model
  • Reebok 2006

13
Website Evolution
  • http//shop.org/video/mov-sm.asp

14
History of Shopping
  • Local seamstresses and tailors made clothing to
    order
  • Mostly domestic, usually not much stock on hand
  • Sometimes sold at town shops
  • Exporting - 1831, George Opdyke, later Mayor of
    New York, began the manufacture of clothing on
    Hudson Street, which he sold largely through a
    store in New Orleans.
  • Increased Southern Trade Market
  • Mass Production 1851 Singer sewing machine
    was invented
  • Strong enough to sew leather shoemakers used
    quickly
  • Larger scale production of clothing products was
    made possible
  • Cheaper labor costs because machine saved time
  • More Choices
  • 1856 first synthetic dye invented more color
    options

15
History of Shopping
  • Catalogs introduced in 1872 by Montgomery Ward
  • Sears introduced their catalog in 1888
  • Department Stores Bloomingdales was founded in
    1872
  • Choices led to the growth of specialized clothing
    stores more chain/department stores
  • Malls the first mall was built in 1922 in
    Edina, Minnesota
  • Another outlet for purchasing the latest fashions
  • Internet stores began around 1995
  • Sales from Brick and Mortars impacted greatly

16
Catalogs Today
  • Sales over the internet have increased
    three-and-a-half times in the past four years,
    while turnover from catalogues has declined
  • What such surveys do not fully take into account
    is the impact that catalogues have on online
    sales.
  • Retailers that still carry and distribute
    catalogs are making them thinner and are still
    investing in them to spark customer interest and
    direct them to purchasing and browsing online.
  • Limited size and color selections in stores force
    people to order online or use catalogs,
    especially for plus sizes and petites.

17
Applying Technology to branded lifestyles
  • In the beginning, consumers didnt have a choice
    between many products and therefore companies
    didnt focus on their target market.
  • On-line Technology matches lifestyle image to
    corporate values
  • Flash
  • Graphic/video selection
  • Proprietary Technologies

18
Survey Components
  • Used the 2 types of fashion web sites
  • Solely for Brand Marketing
  • Diesel
  • Prada
  • Markets Brand but is Sales Oriented
  • Puma
  • Old Navy

19
Survey Questions
  • How appealing is the web site?
  • How user friendly is the web site?
  • How strong is your initial reaction to the web
    site?
  • How effective was the web site in marketing the
    brand?
  • Did your perception of the brand change after
    viewing their web site?

20
Diesel
21
Diesel
  • 70 ? 4 or 5
  • 45 ? 2
  • 55 ? 4
  • 40 ? 4
  • 70 ? No
  • Overall appeal of the site
  • User friendliness
  • Strength of initial reaction
  • Effectiveness in marketing the brand
  • Did your perception change

22
Diesel
  • Clothing company which produces premium apparel
    for men and women between 18 and 35 years old.
  • Privately Owned.
  • Sales 1,227.6 Million
  • 1 Year Sales Growth 61.5

23
Prada
24
  • 46.7 ? 2
  • 73.3 ? 1
  • 46.7 ? 2
  • 80 ? Tie between 1 and 3
  • 80 ? No
  • Overall appeal of the site
  • User friendliness
  • Strength of initial reaction
  • Effectiveness in marketing the brand
  • Did your perception change

25
Prada
  • Prada sells upscale apparel, shoes, fragrance,
    and accessories for men and women, as well as its
    less-pricey Miu Miu apparel line.
  • Privately owned
  • Sales 1,991.4 Million
  • 1 Year Sales Growth 16.7

26
Puma
27
  • 68.8 ? 4
  • 56.2 ? 4
  • 90.3 ? 3 or 4
  • 43.8 ? 4
  • 81.2 ? No
  • Overall appeal of the site
  • User friendliness
  • Strength of initial reaction
  • Effectiveness in marketing the brand
  • Did your perception change

28
Puma
  • PUMA has the long-term mission of becoming the
    most desirable Sportlifestyle company.
  • focusing on bringing distinctive designs and a
    global outlook to each product range by blending
    influences of sport, lifestyle and fashion. In
    order to achieve these goals, our brand template
    emphasises PUMAs distinctiveness, individualism,
    spontaneity, internationalism and sporting
    heritage. An important part of our brand strategy
    is maintaining vigilant watch over our
    distribution channels, ensuring that we maintain
    the high level of desirability necessary for
    sustainable growth.
  • PUMA focuses on creating a differentiating yet
    unmistakably clear brand message that resonates
    with our consumers
  • Above all, PUMAs marketing will always strive to
    surprise, stimulate, entertain and engage. By
    constantly delivering the unexpected and
    challenging perceptions, PUMA aims to continue to
    be a defining voice in the world of
    Sportlifestyle
  • Markets brand but is also sales oriented.
  • Sales 2105.1 Million
  • 1 Year Sales Growth 0.9

29
Old Navy
30
  • 87.4 ? 2, 3, or 4
  • 50 ? 5
  • 62.4 ? 3 or 4
  • 68.7 ? 4 or 5
  • 100 ? No
  • Overall appeal of the site
  • User friendliness
  • Strength of initial reaction
  • Effectiveness in marketing the brand
  • Did your perception change

31
Old Navy
  • Old Navy's mission is to offer affordable,
    fashionable clothing and accessories for the
    whole family.
  • Sales oriented Recently added features to make
    online shopping easier and faster
  • Pop ups to view clothing and add to cart and not
    leave the homepage so you can continue to browse.
  • Quick confirmations of added apparel
  • Sales 6,856 Million
  • 1 Year Sales Growth 1.6

32
Lifestyle Conclusions
  • Old Navy has the most sales but less annual
    growth.
  • Diesel had the highest annual growth which seems
    to suggest that their marketing efforts have
    begun to be accepted and will continue to be
    successful.
  • Prada has a high growth rate as well.
  • Puma needs to enhance their efforts to gain more
    market share.

33
Survey Conclusions
  • Technology does not always improve a web site
  • The user reaction to a site largely depends on
    the purpose of the web-site
  • The degree of a persons initial reaction in our 4
    surveys always represents how appealing and how
    effective they find the web site

34
Survey Conclusions
  • After analyzing the survey data, we determined
    that based on our criteria that our sample rated
    the sites as follows
  • Old Navy
  • Puma
  • Diesel
  • Prada

35
Conclusion
  • Technology has greatly impacted the way that
    companies advertise and market their brand online
  • As more people continue to use the internet, it
    will continue to grow in value as an advertising
    medium
  • Promoting lifestyles around a brand image is the
    current trend in many fashion companies and is
    likely to continue to grow as more companies work
    to expand their web presence

36
Future Trends
  • The applications and interfaces users navigate
    on-line will become more advanced as technology
    develops.
  • Number of users on-line shopping will continue to
    grow as well as on-line revenues.
  • 3D web technologies are being developed and more
    users will shop in the metaworld.
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