Technology and its impact in the on line fashion industry
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Technology and its impact in the on-line fashion industry. Group 3 Katie Reimer Linda Jacobsen Bill Messick Jimmy Asip. Branding a Lifestyle and an Image.

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Technology and its impact in the on line fashion industry l.jpg

Technology and its impact in the on-line fashion industry

Group 3

Katie Reimer

Linda Jacobsen

Bill Messick

Jimmy Asip


Branding a lifestyle and an image l.jpg
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.


Causing this trend in high end retailers l.jpg
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



Big picture snapshot l.jpg
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




Electronic brochure site model l.jpg

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

Electronic Brochure Site Model


E commerce site model l.jpg

Main purpose was to sell merchandise

Product catalogue and pricing information

More complex than brochure site. Addition of:

Style sheets

Forms

Shopping cart functions

E-Commerce Site Model


Business application site model l.jpg

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.

Business Application Site Model


Technologies that support the business application site model l.jpg
Technologies that Support the Business Application Site Model

  • Broadband

  • Flash-ware

  • Secure transactions

    • Authentication (name and password)

    • Digital signatures

    • Encryption

    • Secure servers


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Website Evolution Example Model

  • Brochure Site Model

    • Reebok 1996

  • E-Commerce Site Model

    • Reebok Store 2002

  • Business Application Model

    • Reebok 2006


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Website Evolution Model

  • http://shop.org/video/mov-sm.asp


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History of Shopping Model

  • 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


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History of Shopping Model

  • Catalogs introduced in 1872 by Montgomery Ward

    • Sears introduced their catalog in 1888

  • Department Stores – Bloomingdale’s 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


Catalogs today l.jpg
Catalogs Today Model

  • 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.


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Applying Technology to branded lifestyles Model

  • In the beginning, consumers didn’t have a choice between many products and therefore companies didn’t focus on their target market.

  • On-line Technology matches “lifestyle” image to corporate values

    • Flash

    • Graphic/video selection

    • Proprietary Technologies


Survey components l.jpg
Survey Components Model

  • Used the 2 types of fashion web sites:

    • Solely for Brand Marketing:

      • Diesel

      • Prada

    • Markets Brand but is Sales Oriented:

      • Puma

      • Old Navy


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Survey Questions Model

  • 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?


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Diesel Model


Diesel l.jpg
Diesel Model

  • 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


Diesel22 l.jpg
Diesel Model

  • 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%


Slide23 l.jpg

Prada Model


Slide24 l.jpg

  • 46.7% Model  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


Prada l.jpg
Prada Model

  • “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%


Slide26 l.jpg

Puma Model


Slide27 l.jpg

  • 68.8% Model 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


Slide28 l.jpg
Puma Model

  • “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 PUMA’s 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, PUMA’s 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%


Slide29 l.jpg

Old Navy Model


Slide30 l.jpg

  • 87.4% Model 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


Old navy l.jpg
Old Navy Model

  • “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%


Lifestyle conclusions l.jpg
“Lifestyle” Conclusions Model

  • 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.


Survey conclusions l.jpg
Survey Conclusions Model

  • 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


Survey conclusions34 l.jpg
Survey Conclusions Model

  • 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


Conclusion l.jpg
Conclusion Model

  • 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


Future trends l.jpg
Future Trends Model

  • 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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