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Multi-channel Retail Report 2015 Luxury Edition Report analysing multi-channel Luxury retailers in the UK, based on the core tenets of multi-channel retailing.
Foreword Multi-channel Retail Report: 2015 Luxury Edition
The ecommerce market for Luxury is expected to increase by 15%
sub-standard service to online shoppers. Multi-channel Luxury
by 2018. In addition, digital presence now influences over 40%*
retailers have an advantage over pure plays because they can
of all Luxury purchases. For these reasons, Ampersand is on a
marry online and in store experiences in a way that’s not possible
mission to eliminate poor online shopping experiences caused by
in the digital space alone.
archaic, siloed processes and poorly implemented technology. While some may find it unfair to hold a niche market such as
Our message is simple: Selling online doesn’t denigrate a Luxury brand. Selling online poorly does.
Luxury to the same standard as mass retail, this report’s aim is to provide insight and a quantitative framework for measurement and comparison. We wish to aid in giving Luxury retailers actionable items to focus on.
Darryl Adie Our message is simple: Selling online doesn’t denigrate a Luxury
Managing Director, Ampersand
brand. Selling online poorly does. It is no longer acceptable for the Luxury sector to dismiss the online experience, nor provide a
* source: Luxury Society ‘Understanding the Digital Luxury Consumer’ Dec 2014
THE criteria We have defined a multi-channel Luxury retailer as those that sell online and in more than one physical store. Retail Week defines a Luxury retailer as “one that aims to create a sense of exclusivity through the use of limited availability products and store environments that foster a sense of the top end in terms both of the materials palette used and the experience that is offered.” Because this is a report about multi-channel retailers, the retailers chosen for this report must have more than one physical branded store presence, not including concessions. Several high-end Luxury brands, such as YSL, Alexander McQueen and Karl Lagerfeld have only one flagship store in the UK, therefore they have not been included. The Ampersand Retail Matrix score for each retailer is based on the overall multi-channel customer experience. We have considered a wide range of factors, all applicable to specialist multi-channel retailers. The Matrix identifies the best-performing multi-channel Luxury retailers in the UK.
Multi-channel Retail Report: 2015 Luxury Edition | amp.co
Luxury RETAILERS Anne Fontaine
Cartier
Harvey Nichols
Liberty
Paule Ka
Anya Hindmarch
Coach
Hermes (GB)
Links of London
Selfridges
Aquascutum
D&G
Hobbs
LK Bennett
Smythson
Armani
Diane von Furstenberg
Hugo Boss
Louis Vuitton
Space NK
Barbour
Diesel
Jaeger
Marc Jacobs
The Kooples
Bonpoint
Dior
Jigsaw
Michael Kors
Thomas Pink
Boodles
Farfetch
Jimmy Choo
Miu Miu
Tiffany & Co
Bottega Veneta
Flannels
Joseph
Molton Brown
Tods
Bulgari
Gucci
Karen Millen
Mulberry
Whistles
Burberry
Harrods
La Perla
Paul Smith
Zadig & Voltaire
Results / Top 79/100
72/100
69/100
66/100
Lost points for lack of geolocation
Lost points for not offering click
Lost points for lead time for click
Lost points for navigation issues
delivery options.
delivery.
top-scoring retailer not offering
Excelled at desktop speed and UX
Excelled at having a mobile
services.
Excelled at fulfilment options
including same day and Sunday and click and collect offering and
and collect or weekend express
scores, offers same day delivery.
and collect and not offering next day
optimised website, stock
management, checkout and
lead times.
and limited payment options. Only faceted navigation. Excelled at fulfilment options and lead times.
navigation.
66/100
62/100
62/100
62/100
Lost points for stock management,
Lost points for not displaying and
Lost points for not offering click
navigation issues and not displaying
limited payment options, lead time
Lost points for not offering
payment options.
for click and collect.
and desktop speed scores, not
payment options.
Excelled at click and collect
Excelled at site navigation,
offering and lead times.
checkout and displaying stock levels online and by store.
click and collect, poor mobile displaying stock levels. Excelled at site navigation,
checkout and payment options.
and collect and not displaying
Excelled at site navigation, having a mobile optimised website and offering same day delivery.
54% of Luxury retailers don’t offer click and collect
61% of Luxury retailers that offer collection take 2+ days to fulfil
46% of Luxury retailers offer next day delivery
Results / bottom 34/100
34/100
31/100
31/100
Lost points for lack of persistant
Lost points for not having a
Lost points for lack of persistant
Lost points for lack of persistant
optimised website.
poor delivery lead times.
Excelled at click and collect
Excelled at click and collect
cart and not offering click and collect. Excelled at site navigation,
checkout and payment options.
mobile optimised website.
Excelled at desktop speed and UX scores, site navigation, checkout and payment options.
cart and not having a mobile
offering, checkout and payment
cart, limited delivery options and
offering and desktop speed score.
options.
31/100
21/100
21/100
17/100
Lost points for lack of persistant
Lost points for lack of persistant
Lost points for lack of persistant
Lost points for lack of persistant
optimised website.
options and stock management.
payment options and not offering
click and collect, limited payment
Excelled at desktop speed and
Excelled at click and collect
click and collect.
options, stock management,
offering.
website.
Excelled at having a mobile
Excelled at geolocation and having
cart and not having a mobile
UX scores and click and collect
cart, navigation issues, payment
offering having a mobile optimised
cart, navigation issues, limited
optimised website.
cart, navigation issues, not offering
a mobile optimised website.
1. TECHNOLOGY Mobile commerce is no longer just a ‘nice to have’. It is essential for retail competitiveness. Mobile presents an opportunity to provide a simplified, content-led experience, yet 14% of Luxury retailers don’t sell online through a mobile optimised website. We used Google Developers PageSpeed Tool for scoring speed on desktop and mobile. For desktop just 20% of Luxury retailers scored 75 or above out of 100. The average was 48, 18 points below the general UK multi-channel retail average of 66. Marc Jacobs and Barbour were the worst performing for both mobile
Mobile presents an opportunity to provide a simplified, content-led experience. The most common ecommerce platform amongst the Luxury retailers surveyed is Magento (27%) followed by Demandware (22%), Oracle ATG (4%) and BT Fresca and Microsoft (3%).
and desktop speeds. Mobile speed continues to be a key area for improvement for most retailers. Over half (56%) of Luxury retailers achieved scores below 50. The highest score for mobile speed was 75, achieved by Ann Fontaine, followed by 71 -- Boodles.
See how you compare. Download the Luxury Retail Matrix (Excel file). Click here
Multi-channel Retail Report: 2015 Luxury Edition | amp.co
desktop Speed Number of Luxury retailers, separated by desktop speed score. We used Google Developers PageSpeed Tool for scoring speed.
50
40
70% 30
20
10 0
20% 10%
0 - 50 score
51 - 75 score
76 - 100 score
Mobile speed Number of Luxury retailers, separated by mobile speed score. Mobile speed continues to be a key area for improvement for most Luxury retailers. Over half surveyed achieved scores below 50.
50
40
30
56% 44%
20
10
0%
0
0 - 50 score
51 - 75 score
76 - 100 score
Multi-channel Retail Report: 2015 Luxury Edition | amp.co
2. Customer journey Just over a quarter (28%) of Luxury retailers do not offer a persistent cart across devices, a function that we believe is fundamental to multi-channel shopping, especially for highly considered purchases. The retailers that do offer this are most likely to be on Magento, an ecommerce platform that includes this feature as standard.
category structure. Just over one in three Luxury retailers does not accept alternative payment methods such as PayPal. This limits the options available to customers to complete a transaction. However, it’s not suprising as some Luxury retailers would not consider PayPal to be an ‘on brand’ payment method.
Only 28% of Luxury retailers offer real-time stock availability information on a product level. Offering this shows systems maturity and the retailers that offer it are more likely to score highly in other critial areas such as mobile optimisation.
A good number (70%) of Luxury retailers offer a guest checkout, however, we’re inclined to assume that this is base ecommerce platform functionality rather than a deliberate strategy. Requiring registration would be a good marketing strategy for Luxury retailers
While 56% of Luxury retailers do offer faceted navigation, 17%
wishing to grow CRM data and provide past customers with
of those scored poorly on site navigation by not displaying clear
relevant, personalised recommendations.
category breadcrumbs to remind a user where they are within the
Multi-channel Retail Report: 2015 Luxury Edition | amp.co
Browsing Luxury retailers offering faceted navigation. (i.e. ability to filter products by multiple selections)
50
40
30
56% 44%
20
10
0 Yes
No
Multi-channel Retail Report: 2015 Luxury Edition | amp.co
PersistEnt Cart Luxury retailers offering a persistent cart. (i.e. ability for a logged in customer to start a purchase on one device and finish on another)
40
30
64%
20
28%
10
0
Yes
No
Multi-channel Retail Report: 2015 Luxury Edition | amp.co
3. Delivery + RETURNS The ‘final mile’ is crucial to customer experience yet it is the part of
its ‘Anywhere, Anyhow, Anytime’ service and Harvey Nichols’
the online shopping experience that retailers have the least control
Click & Try enables customers to buy online and try on items in
over. This is certainly one of the factors that can be attributed to
store with a Style Advisor.
the slow uptake of selling online in the Luxury sector.
It is not surprising that 0% of Luxury retailers offer collection
Click and collect is fast-becoming the delivery option of choice
services at a non-store location, such as a locker or convenience
for UK consumers and it provides differentiation opportunities for
store. Even though it might be convenient for a customer pick up
Luxury retailers in store, yet only 40% of Luxury retailers offer it.
items at that type of location, it can be far from ‘luxurious’.
Luxury retailers with more than 5 stores in the UK are most likely to offer click and collect.
Returns is another area where Luxury retailers lag behind other sectors. 68% of Luxury retailers surveyed advertise free returns,
It is also surprising that only half of Luxury retailers offer next day
but the processes varies from simple to a logistical scavenger
delivery as part of their express delivery services.
hunt. One retailer doesn’t even feature a returns policy on its
Two brands doing collection well are Mulberry and Harvey Nichols.
website -- Tod’s.
Mulberry is the latest Luxury brand to launch click and collect with
Multi-channel Retail Report: 2015 Luxury Edition | amp.co
Click + Collect Collection fulfilment times offered by Luxury retailers.
30
54% 20
28% 10
14% 0%
0
No offering
>1 day to fulfil
Fulfilled next day
Fulfilled same day
Multi-channel Retail Report: 2015 Luxury Edition | amp.co
Express Delivery Number of Luxury retailers offering different types of express delivery. (...and those that don’t offer express delivery at all)
30
48%
46%
20
10
8%
8%
0
No offering
Same day
Next day
Sunday
Multi-channel Retail Report: 2015 Luxury Edition | amp.co
Results / benchmarking Comparing sectors by Ampersand Retail Matrix score.
52
48
55
Median score General
Median score Luxury only
Median score Fashion only
Download the Feb 2015
Download the Apr 2015
Multi-channel Retail Matrix
Luxury Retail Matrix
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Download the Mar 2015 Fashion Retail Matrix Click here >
When comparing the median score for these separate Ampersand Retail Matrix datasets, Luxury retailers are lagging behind general multi-channel retail in the UK when compared by multi-channel retail services. It’s also no surprise that Fashion retailers lead the way. Multi-channel Retail Report: 2015 Luxury Edition | amp.co
Looking ahead Luxury retailers must continue to keep pace but also push ahead
It’s essential that Luxury retailers take ownership of the roadmap
with building differentiating services. The Luxury retailers with
for their online stores right now. Do this not only to capitalise on
stores in the UK have a unique opportunity to use those stores
the growth, but also on the branding opportunities that bridging
to differentiate themselves from other retailers. Burberry is a
online and offline effectively can bring.
great example of a Luxury brand using technology to amplify the customer experience in-store. Established pure-play Luxury retailers such as Net-A-Porter and
Let’s talk.
even Very Exclusive are competing for every transaction. For
Darryl Adie
Luxury retailers, where experience is of the utmost importance,
Managing Director, Ampersand
it’s not only important to sell a product, it’s vital to make an
[email protected]
impression. The Farfetch acquisition of Browns is a coup and a sign that Luxury retail is changing. Consumers will shop with whomever makes buying easiest.
+ 44 161 236 5504
methodology To create the list of retailers in this report, we first aggregated various existing lists. We used IMRG financial rankings, web traffic data from Hitwise and Sitemorse’s usability list. This gave us over 2,000 companies to research. We eliminated retailers that had no ecommerce presence or no physical stores. The remaining retailers were split into their appropriate sectors. The Ampersand Retail Matrix criterion are our view of the core tenets of multi-channel retailing. These tenets cross the boundaries
and returns policies Website navigation and product information including clear signposting, images, faceted navigation, real-time stock and alternative payment methods GPS/location information – whether customers can find the nearest store by using geolocation Availability of guest checkout
of digital and physical customer experiences.
Persistent cart across different devices
The criteria includes: Homepage load speeds and performance on
Delivery options, Click & Collect, non-store pick up options and
desktop and mobile using Google Developers PageSpeed Tools
communication of free returns
Whether retailers provided clear information on payment options
Mobile – whether the retailer has a transactional mobile site
Retailers were then scored against the criteria and with a
We then calculated the final score to be out of 100:
weighted formula, ranked in the Retail Matrix.
=100/29*SCORE.
To calculate the base score marked out of 29 possible points from 25 criteria, a retailer was awarded 1 point if it scored positively for each of the criteria mentioned above, with these specifics:
All research was completed in Manchester, UK on a desktop Macbook (Chrome version 42.0.2311.90) in a private browsing window and an iPhone 6 Plus using iOS 8.1 operating system between 03/04/2015 and 19/05/2015.
•
Offering click and collect same day
All research copyright Ampersand Commerce Ltd. Data can
•
Desktop Speed >81
be quoted in any medium but requires credit either by name
•
Mobile Speed >71
or linkback to amp.co.
•
UX Score >99
We awarded 3 points for the following criteria: •
Transactional mobile website
•
Persistent cart
For press enquiries, please contact
[email protected].
See how you compare. Download the Luxury Retail Matrix (Excel file). Click here
amp.co | +44 161 236 5504
Ampersand is an award-winning commerce agency that delivers multi-channel solutions for retailers. Founded in 2009 and based in Manchester, Ampersand has helped international multi-channel retailers, such as Harvey Nichols, Poundland and Bensons for Beds, increase conversion and efficiency through the strategic use of open source technology.