Product management (strategy and planning) example for luxury commerce

1. © - Shikhin (Sean) Agarwal | linkd.in/shikhin
Product Vision & Execution
Luxury Goods - Ecommerce

2. 1. Business Strategy

3. 1 - http://bit.ly/2bag94E | 2 - Bain & Co: Luxury Goods Worldwide Market Study
In order to win -- <Company> needs to strengthen its presence
within the industry, understand competition...
• <Company> owns a market share in the luxury goods industry with 4 major
categories: Clothing, Shoes, Bags and Accessories
• McKinsey predicts1 that online sales of luxury goods can triple over next 10
years where as the overall industry may grow modestly (2-5%)2
• Competition must be defined as options available to consumers to buy the
same goods:
– Stores: Branded and Department
– Brand websites: LV, Gucci, etc.
– Specialized etailers: Net a porter, Gilt, Mr Porter, Barneys, etc.
• Over the last 5 years, brands and department stores have built more
ecommerce capabilities1
– Consumers have increasingly more options to plan, explore, buy and experience the
products

4. • <Company> owns a market share in the luxury goods industry with 4 major
categories: Clothing, Shoes, Bags and Accessories
• McKinsey predicts1 that online sales of luxury goods can triple over next 10
years where as the overall industry may grow modestly (2-5%)2
• Competition must be defined as options available to consumers to buy the
same goods:
– Stores: Branded and Department
– Brand websites: LV, Gucci, etc.
– Specialized etailers: Net a porter, Gilt, Mr Porter, Barneys, etc.
• Over the last 5 years, brands and department stores have built more
ecommerce capabilities1
– Consumers have increasingly more options to plan, explore, buy and experience the
products
• Key questions
– Would <Company> enter new categories?
– How do we see the competition – independent vs.
branded retailers?
– What is <Company> differentiators and brand equity?
In order to win -- <Company> needs to strengthen its presence
within the industry, understand competition...

5. …and most importantly develop deeper understanding of the
target consumer including their “path to purchase”
• 100% of target
consumers own
smartphones, up
to 3.5 handheld
devices per person
• Consumers spend
~15 hours on
mobile devices;
over 85% use
social media
almost daily

6. • 100% of target
consumers own
smartphones, up
to 3.5 handheld
devices per person
• Consumers spend
~15 hours on
mobile devices;
over 85% use
social media
almost daily
• Key questions
– How much consumer insights we have in-house?
– What is higher priority: acquiring new consumers or
increasing share of wallet of existing consumers?
…and most importantly develop deeper understanding of the
target consumer including their “path to purchase”

7. Source:
Boston
Consulting
Group
(Study of
consumer
behavior in
CPG
industry)
Typical “path to purchase” is empowering and complex
presenting an opportunity to win

8. Source:
Boston
Consulting
Group
(Study of
consumer
behavior in
CPG
industry)
• Key questions
– Do we understand “path to purchase” well and have we
built an fully aligned experience?
– How confident we are on target consumer LTV?
Typical “path to purchase” is empowering and complex
presenting an opportunity to win

9. 2. Product Strategy & Roadmap

10. Consumers use “trusted sources” that they are “aware” of
during discovery phase
• Discovery
– “I want to buy a nice pair of shoes”
– “What are the current smart designs for shoes”
– “I prefer a silicon valley executive look”
– “Let me browse shoes at this store in the mall”
Awareness
products
Relevant
content
discovery
Discovery
from social –
Pinterest,
Facebook
Key Products

11. After discovery, consumer deals with complexity of
merchandise/items search process
• Search
– “I think I need a pair of lace ups brown shoes”
– “Who is Thom Browne?”
– “I like Thom Browne shoes, let me search similar shoes”
– “I should also check offers on shoes from Gilt”
Item
features
(dynamic
marketing)
Similar
search
suggestions
Search
aggregation
&
persistence
Key Products

12. Locating the right merchandise/item is a crucial step to
convert a prospect into sale
• Locate
– “I have a shortlist of shoes I like”
– “I need to find these shoes in size 11”
– “Let me speak with this store employee for details”
– “I have to try these shoes on to ensure comfort”
Item
availability
(Location
based
marketing)
Comparison
tools
Item
experience /
trials
Key Products

13. Checkout process can truly delight a customer
• Buy
– “I added a couple of items in the cart”
– “Should I register myself or checkout as a guest?”
– “I need to ensure I understand return/exchange policy”
– “I need the item delivery before this weekend”
Checkout
products
Customer
Profile
Billing and
Financial
products
Key Products

14. Postpurchase ensures low return rate, up / cross sell
opportunities to maximize LTV
• Postpurchase
– “I think I need the size 11.5 instead 11”
– “I really like the shoes, let me check on matching belts”
– “I like <Company>, let me come back next month to find shirts”
– “I told my friends about my great experience at <Company>”
Customer
Service /
CRM
Social
Activity
Retargeting
products
Key Products

15. Measurements and analytics products are key to ensure
success of product-business strategy
Discovery
Search
Locate
Buy
Post
Purchase
Awareness
Prospecting
Sales / Post
sale
Market Share
Inbound traffic
Conversion rate
Re-targeting
Item searches
Target market
(TAM)

16. Conclusion: <Company>’s Product Vision is…
Provide an exclusive and delightful experience
throughout the self-expression journey of our
consumers

17. Product Management Execution
Methodology
• Refer to this link >>
• Contact us: sean@agexin.com