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Shanghai Luxury Brands Summit - Marcus Evans

A new approach for a fashion e-commerce start-up: insourcing model vs. full service outsourcing
by

Marcus Evans

on 10 April 2013

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Transcript of Shanghai Luxury Brands Summit - Marcus Evans

concept &
graphic Liu Jo: company overview

E-commerce: it is not a matter of "IF" anymore, it is just "HOW"
Fashion e-commerce - introduction
Key factors for a succesfull fashion e-commerce solution
Fashion e-commerce: operating models

Liu Jo e-commerce project
Liu Jo operative model - insourcing
Liu Jo Project overview: timeline, figures, key success factor

Fashion e-commerce: benchmark figures Deck Agenda Template E-commerce: global penetration on retail sales * Report January 2013 - Morgan Stanley Fashion e-commerce It's now effectively a sale channel... ....an extremely complex channel. CROSS- FUNCTIONS VERTICAL - SKILLS DIFFERENT ACTORS TECHNOLOGY Key factors for a succesfull fashion e-commerce solution ACCESSIBILITY SPEED
&
PERFORMANCE USABILITY
&
SIMPLICITY MULTI-CHANNEL SECURITY
&
TRUST PRODUCTS PRODUCT
PRESENTATION PRODUCT INFO PRICE & COSTS
TRANSPARENCY SERVICES INFO (returns, reimbursement) CUSTOMER
SERVICE WEB
MARKETING SOCIAL
NETWORK
INTEGRATION EDITORIAL
CONTENT DEM (newsletters) DELIVERY
TIME BESPOKE
ELEMENTS CROSS-
CHANNEL BRAND
IMAGE
COMMUNICATION ALLURE E-fashion projections - USA US Retail Sales
(billion $) +45% in 3 years " DON'T LET ME THINK !! " Steve Krug e-fashion impulse buy LIVE CHAT EMAIL PHONE MULTI-LINGUAL
MULTI-CHANNEL
24/7 Not only integrate your website with: ..but also... ....connect and log-in with: Buy in-store Ship it home Buy Online Pick up in-store Buy Online Return in-store OFFLINE ONLINE Fashion e-commerce: operating models INSOURCING FULL SERVICE
OUTSOURCING CONCEPT 1 2 NAVIGATION FLOW WIREFRAME 3 4 PSD 280 functional
requirements 280 functional
requirements 70 technical
requirements FRONT-END INTEGRATION BACK-END CRM deskop
mobile
tablet CMS
ERP
WHS
PAYMENTS CMS
ERP
WHS
PAYMENTS store management tool
merchindising tool
administration tool
payments and reimbursement
shipping tool data
profiling
analytics Liu Jo Hybrid insourcing - reasons CHANNEL DATA KNOWLEDGE SPEED Online channel
is a strategic asset Indipendent
internal team The future will
be a completely
seamless
online/offline
experience Big Consumers don’t
think in channels.
They think
in brands Tracking
customer
data Profiling Leverage
internal
skills Drive
the
strategy Time-
to-
market Tactical
actions A/B testing
Multivariate test Liu Jo e-commerce project: figures Business Plan
3YRS roadmap RFPs
provider tenders Functional analysis
Technical analysis Development e-Business division
start up Fashion e-commerce (*): figures CONVERSION
RATE TURNOVER BREAKEVEN EBITDA SET-UP
COSTS (*): mono-brand inseason, contemporary fashion segment,
company global turnover > 100 Mln €, insourcing model Start-up

Warm-up

Ramp-up 0,25 - 0,5 %

1,00 - 1,25 %

1,25 - 1,5 % 2 - 5 % global company turnover main company flagship store turnover 12 - 20 Months 20 - 40 %
of the online turnover Cost for personel
Platform
Web-marketing
Shipment
Fulfilment
Digital production
Others 25 %
20 %
10 %
10 %
8 %
8 %
19 % THANK YOU andrea.cappi @cappiandrea it.linkedin.com/in/andreacappi Testing GO LIVE 7 March Streaming
media
solutions Content
Delivery
Network (CDN)
Cloud Application
performance
solutions Enterprise
Search
Engine Liu Jo * Report: Forrester Research April 2012 67% 40% SPEED (*) source: Akamai, Gomez of consumers cite slow sites as cause of basket abandonment abandon a website than takes more than seconds to load 3 F
I
L
O


B
L
U TWITTER FACEBOOK Branded packaging Personalisation Photo-shooting guidelines BACKSTAGE still life
dressed
5 details
360°
video-catwalk loyalty program TECHNOLOGY FULFILMENT DIGITAL PRODUCTION PAYMENTS DOs DON'Ts 1. Set-up a "stand-alone" e-business unit with P&L and direct budget responsability 2. Have a clear picture on strategy and roadmap define a business plan, an e-business strategy integrated with the global company one 3. Be quick (and then change and improve) time-to-market is THE key factor, start quickly and then have an iterative PDAC approach (plan-do-act-check) 4. Focus on the design phase (70% of the job is done) bring an UX expert on board, spend time on design 5. Get the right CRM solution on: anlytics and (big) data "data scientist" is the future career in online retail 2. Don't think e-commerce is just about IT platform is fundamental but it is a "commodity" 1. Don't make your e-commerce channel a SILO make online/offline a seamless experience 3. Don't understimate the importance of digital production firstly you sell "pictures" online 4. Don't think SEO and SEM are only "techy" acronyms they still represent a huge part of a company's acquisition strategy personal suggestions personal suggestions STARTING UP A FASHION e-COMMERCE Care Instructions Size Guide Zoom Full Screen 360 ° Video Mini-catwalk Fit suggestion Liu Jo Company overview Established in 1995 Founders: Marco and Vannis Marchi Headquarters: Carpi (Modena) Contemporary fashion 9 Collections Total look Liu Jo
Jeans Woman
Jeans Man
Accessories
Shoes
Baby&Junior
Underwear
Les Plumes
Ajay Liu Jo in the world Liu Jo figures e-commerce
platform system
integrator hosting logistic
warehouse shipment packaging fraud
screening payment
gateway photo
shooting photo
retouching web
marketing localization system
integrator hosting logistic
warehouse shipment packaging payment
gateway photo
shooting photo
retouching fraud
screening localization 20
providers e-commerce
platform concept &
graphic customer
care web
marketing BRAND BRAND PROVIDER Liu Jo - insourcing operating model All
vertical
skills 3 system
integrator hosting logistic
warehouse shipment packaging payment
gateway photo
shooting photo
retouching fraud
screening localization e-commerce
platform customer
care web
marketing BRAND
Full transcript