Presentation at inaugural DHL Fashion Success event in Auckland 5-Dec-2012

1. By Justus Wilde
05 Dec 2012
© 2012. All rights reserved.

2. Amblique Intro
• Full service eCommerce consultancy
strategy, build, retail practice, marketing
• Demandware reseller for AU/NZ
• Fashion focused – 35 brands in AU/NZ
• Est 1999 – 65+ consultants
• Joined STW Group in 2012
2 © 2012. All rights reserved.

3. Agenda
• The opportunity
• Who is making it big in Australia?
• Consumer similarities & differences
• Traffic drivers for fashion
• Optimising the cart
• Next steps
3 © 2012. All rights reserved.

4. The Opportunity
© 2012. All rights reserved.

5. The Opportunity
• Australia
• 22 million people
• 67.5% of the population aged 15-64
• Online orders reached A$188.7bn in 2010-11
• Up A$46bn year on year
• UK and US players with 20% AU visit market share
• New Zealand
• 4.3 million people
• 66.2% of the population aged 15-64
Source: eConsultancy
5 © 2012. All rights reserved.

6. The Opportunity
• Australia
• 22 million people
• 67.5% of the population aged 15-64
• Online orders reached A$188.7bn in 2010-11
• Up A$46bn year on year
• UK and US players with 20% AU visit market share
• New Zealand
• 4.3 million people
• 66.2% of the population aged 15-64
Source: eConsultancy
6 © 2012. All rights reserved.

7. The Opportunity
• Australia
• 22 million people
• 67.5% of the population aged 15-64
• Online orders reached A$188.7bn in 2010-11
• Up A$46bn year on year
• UK and US players with 20% AU visit market share
• New Zealand
• 4.3 million people
• 66.2% of the population aged 15-64
34% of these shop apparel
Source: eConsultancy
7 © 2012. All rights reserved.

8. The Opportunity
• Australia
• 22 million people
• 67.5% of the population aged 15-64
• Online orders reached A$188.7bn in 2010-11
• Up A$46bn year on year
• UK and US players with 20% AU visit market share
• New Zealand
• 4.3 million people
• 66.2% of the population aged 15-64
Source: eConsultancy
8 © 2012. All rights reserved.

9. The Opportunity
• Australia
• 22 million people
• 67.5% of the population aged 15-64
• Online orders reached A$188.7bn in 2010-11
• Up A$46bn year on year
• UK and US players with 20% AU visit market share
• New Zealand
• 4.3 million people
• 66.2% of the population aged 15-64
Source: eConsultancy
9 © 2012. All rights reserved.

10. Search Volumes of the Top Fashion Keywords
• 11 million searches per month of top 25 keywords
• 22m vs. 4.3m people (5x audience)
• 6x search volume of NZ
Source: Google
10 © 2012. All rights reserved.

11. Who is Making it
BIG in Australia?
© 2012. All rights reserved.

12. International Retail
 Of the top 100 Apparel Sites
• 27% of Australians
browsing internationally
• 4% shopped with NZ
companies:
Source: Hitwise
12 © 2012. All rights reserved.

13. Big NZ Brands Searched on Google Australia
Source: Google
13 © 2012. All rights reserved.

14. EziBuy.com.au
• Localised site (.com.au)
• AUD & no GST
• Local phone numbers
• Local returns
 For Australians visiting EziBuy.com.au:
• Great engagement – 9m 50s time on site
• Strong retention – 75% of visits are returning
Source: Hitwise
14 © 2012. All rights reserved.

15. EziBuy.com.au (cont.)
How does EziBuy’s traffic differ between AU and NZ?
Source: Hitwise
15 © 2012. All rights reserved.

16. Consumer Similarities
& Differences
© 2012. All rights reserved.

17. Where are Australians Shopping?
Source: Hitwise
17 © 2012. All rights reserved.

18. Where are New Zealanders Shopping?
Source: Hitwise
18 © 2012. All rights reserved.

19. Mobile Adoption
Madoption has been much more prevalent in AU than NZ
(limited dataset)
Source: Google Analytics
20 © 2012. All rights reserved.

20. Purchasing Behaviour
• Averaged / ranged data set across some of our clients
• AU has a much higher AOV once you factor in exchange rates
Metric .co.nz .com.au
AOV Averaged NZ$82 A$89
Items per cart 1.4 1.4
Conversion 0.4-1.1% 0.5-2.2%
Source: Google Analytics
21 © 2012. All rights reserved.

21. Traffic Drivers
for Fashion
© 2012. All rights reserved.

22. Traffic sources
• Sample 40+ major fashion brands
• On average up to 87-89% traffic & revenue is brand aware
• Organic unbranded best case ~20% traffic driver = ~15-20% revenue
• Stocked brand keyword convert better E.g. “Lee Jeans” vs. “jeans”
Source Traffic Revenue
Direct 36% 33%
Referral 5% 8%
Organic branded 23% 29%
Organic unbranded 3% 2%
Paid branded 3% 7%
Paid unbranded 1% 1%
EDM 27% 18%
Social 2% 2%
Source: Google Analytics
23 © 2012. All rights reserved.

23. ShopStyle
• 38th most trafficked apparel site in AU
• Great for product discovery, not just brand driven
• Cost Per Click model
• 70% higher conv. rate
than site avg.
• But 4% lower AOV
Source: Hitwise & Google Analytics
24 © 2012. All rights reserved.

24. Affiliates
Publisher
drives traffic Lands on your
to their site site
Visitor clicks Purchases
on
ad/editorial
• Commission based – pay only when someone buys
• 70% higher conv. rate than site avg.
• Will only generate 5-10% (ASOS drove this to 25%)
Source: Google Analytics
25 © 2012. All rights reserved.

25. Click Frenzy
• Yearly event, big press coverage
• Four fashion clients took part
• Drove approx. 20k visits per client over 2 days
• 18% higher conv. rate than site avg.
• But avg. order value -10%
Source: Google Analytics
26 © 2012. All rights reserved.

26. Optimising the Cart
© 2012. All rights reserved.

27. Typical Path for Conversion
• What can we do to optimise each step?
Home Product Thank
page Page You Page
Category Cart
Page Page
28 © 2012. All rights reserved.

28. Home Page Best Practices
 Acquisition should be designed not to land on home page
• Ensure home page content is consistent with all comms
• Content from EDMs
• Collections you are pushing in PR and advertising
• Strong call to action
• Home page banners have a
81% higher conversion rate
than site avg.
Source: Google Analytics
29 © 2012. All rights reserved.

29. Category Pages
Use intelligent sort order based on sell-thru & other parameters to
maximise revenue per product pageview
Factors driving conversion
Impressions
• Range & relevance
• Stock (i.e. SKU coverage)
• Consistent photography
• Rich Media Clicks
• Interactivity
• Quick look
• In context purchasing for Sales
collections/looks
30 © 2012. All rights reserved.

30. Category Pages (cont.)
• Merchandised categories like “favourites” drive conversion
• 21% higher page value than categories such as dresses, tops, etc.
Source: Google Analytics
31 © 2012. All rights reserved.

31. Category Pages (cont.)
• Aim is to help users find product
as quickly as possible
• Guided navigation users are
62% more likely to convert –
make it relevant
• Sort order – consider different rules
for different categories
i.e. new arrivals vs. sale
Source: Google Analytics
32 © 2012. All rights reserved.

32. Product Pages
• Calculate your product sell-thru by style
• What is the conversion rate per unique pageview of a product?
• Are people not finding products or not buying them?
• ISNOS, weighted inventory, SKU coverage, content analysis
33 © 2012. All rights reserved.

33. Product Pages (cont.)
• Product videos drive conversion by 155%+ over site avg.
• Collection videos only generate minimal conversion increases
Source: Google Analytics
34 © 2012. All rights reserved.

34. Product Pages (cont.)
• Use automated tools to ups-sell
and cross sell such as
Barilliance or Certona
• >2x increase over site wide
conv. rate from visitors using
product recommendations
Source: Google Analytics
35 © 2012. All rights reserved.

35. Cart Page
• Make it mobile friendly
• Cart abandonment almost always higher on smartphones
• Have persistent and transportable carts, i.e.
• Cart is remembered on your laptop for X days
• If you login on your iPad, it merges your cart from other
devices
• 25-30% of visits are mobile on Australian fashion sites
• Implement cart abandonment remarketing
• Via EDM for contactable visitors such as See Why or
Barilliance
• Or display advertising for anonymous visitors such as Criteo
36 © 2012. All rights reserved.

36. Cart Page (cont.)
Email sent w/cart
VIP visits & logs in Adds items to cart Leaves the site User clicks & buys
items
• Cart abandonment emails minimise abandonment
• Emails average 48% open rate
• 14% conversion
• It’s a numbers game and only works with scale
Source: Barilliance & Google Analytics
37 © 2012. All rights reserved.

37. Cart Page (cont.)
• Upsell
• Using product recommendations engines which evaluate the
cart’s contents
• Triggered live chat such as Live Person for high value customers
• Customers dropping out during checkout
• High cart value visitors
• VIP customers
• Answer common questions
• Shipping costs, delivery times, return policies, etc.
38 © 2012. All rights reserved.

38. Next Steps:
Selling Across the Ditch
© 2012. All rights reserved.

39. Selling Across the Ditch
• Technology
• Use a multi-tenanted platform that can run your .co.nz and
.com.au
• Use Content Delivery Network (CDN) for images
• Be smartphone & tablet friendly
• Leverage existing market places whilst you build brand awareness
• eBay, Westfield, ShopStyle, SEO, AdWords, Comparison
Shopping Engines, etc.
• Leverage GST benefits
• Most fashion is under the $1k threshold to pay Australian GST
41 © 2012. All rights reserved.

40. Localisation
• Have local currency, phone numbers & return address
• Customer support hours should match purchasing times
42 © 2012. All rights reserved.

41. Summary
• AU Opportunity is big
• Mobile is very important in A
• Local currency & support
• Acquisition is costly – you need to build a brand
• Make every visit count – data is the key
43 © 2012. All rights reserved.

42. What have we been up to?
Amblique 2012 show reel
www.youtube.com/watch?v=0DjvfkUZsXk
44 © 2012. All rights reserved.

43. Thank you for
watching
Justus Wilde
Online Strategy Director
jw@amblique.com
45 © 2012. All rights reserved.