Multi-channel Retail Report 2015 Luxury Edition

amp.co Multi-channel Retail Report 2015 Luxury Edition Report analysing multi-channel Luxury retailers in the UK, based on the core tenets of multi-c...
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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

Click here >

Click here >

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.