Discusses emerging business models in retail e-commerce: mass customization and subscription commerce. Presents case study of Shoes of Prey. Outlines new directions for e-tail technology.

1. The Future of Online Retail
Leighton Peter Prabhu
Partner, Russia & CIS
Interstice Consulting LLP
www.intersticeconsulting.com
October 2011

2. Co-creation / mass customization

6. Other co-creation projects

7. Subscription commerce
simplified choices
negative-option billing
packaging
style types
curation
celebrity sampling
experts
customer service
?

9. Other subscription commerce projects

10. Case study - Shoes of Prey

11. What we do
We make women happy. We bring out their creativity and allow them to wear something
they've created for themselves.

14. A shoe for every mood
Energetic
Fresh Bust a Move
Classic
Fanciful
Dreamy
Edgy
Elegant Trendy
Corporate

16. Building the Shoes of Prey brand
Creating awareness
and excitement
- Creating demand through PR,
events, social media
- Engaging opinion leaders
Generating positive Delivering an outstanding
word of mouth brand experience
- Encouraging sharing on social media - Online
- Offering incentives for referrals - Offline
- Localized
- Personalized

17. Creating awareness and excitement
• “Create” demand
• Primacy of Internet –
“zero moment of truth”
• Broadcast media, events,
social media
• Engage opinion leaders
• Special channels

18. Media mentions (Russia)

19. Delivering an outstanding experience
Localized and personalized, both online and offline

20. Generating positive word of mouth
• Encourage sharing on social
media
• Power of stories
• Incentives for referrals
– Social
– Financial
• Blogs (internal and external)
• Newsletter – easy to
forward

21. Results - customer survey
(Net Promoter Score: 0 = neutral, 15+ above average, 50+ excellent)*
How satisfied were you with the level of customer service?
84.7
How likely are you to recommend Shoes of Prey to a friend or colleague?
67.7
Prior to purchasing from Shoes of Prey, did you know someone who had made a purchase from Shoes
of Prey before?
11.3% of our customers knew someone who had purchased from us prior to ordering their shoes
will no doubt grow as our customer base grows.
*some NPS comparisons: BMW (59) Apple (79) FedEx (56) Google (73) Amazon (73)

22. Recognition
• Best New Online Retailer
• Best Online Retail
Marketing Initiative
• Most Innovative Online
Retailer

23. What’s next?

24. “Bricks and Clicks”
TESCO / Homeplus, Korea

25. Augmented reality
we’ve already come so far

26. Online fitting using webcam

27. Augmented reality - technology
SRI International / Microsoft Kinect

28. AR - implementations
TOPSHOP / AR Door, Evropeisky

29. 3-D virtual fitting room
Fits.me

30. Some resources
i-accelerator.ru
startupwomen.ru
springwise.com

31. Спасибо!
L.S. Peter Prabhu Interstice Consulting LLP
BCom MPhil CA CPA Tverskaya 9
Partner Moscow 125009
Email: lsp.prabhu@intersticeconsulting.com
Mob: +7 916 404 97 52
Blog: russkiebiz.wordpress.com