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Re-Inventing Goodwill Final Report

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Re-Inventing Goodwill Final Report Re-Inventing Goodwill CURATED by Goodwill NYNJ Fashion Institute of Technology Alexis Helbert, Fashion Business Management Alin Intravisit, Fashion Business Management Brianna Destratis, Fashion Business Management Lara Voronkov, Fashion Business Management DECEMBER 2017 Table of Contents 1 Table of Contents Table of Contents ........................................................................................................................................... 1 Overview ........................................................................................................................................................ 2 Part 1: Research ............................................................................................................................................. 2 Market Analysis ......................................................................................................................................... 2 Consumer Analysis .................................................................................................................................... 5 Competitive Landscape and Best Practices ............................................................................................... 6 Customer Survey Results ......................................................................................................................... 11 Research Conclusions .............................................................................................................................. 11 Part 2: Recommendations ............................................................................................................................ 12 “Curated” by Goodwill ........................................................................................................................... 12 Website Pages & Features ....................................................................................................................... 12 Mobile Application .................................................................................................................................. 14 Technology Overview ............................................................................................................................. 15 The User Experience ................................................................................................................................ 15 Advertising .............................................................................................................................................. 17 Part 3: Management ..................................................................................................................................... 18 Merchandise Selection ............................................................................................................................. 18 Pricing Strategy ....................................................................................................................................... 18 Staffing Requirements ............................................................................................................................. 19 Third-Party Service Providers ................................................................................................................. 19 Part 4: Budgeting ......................................................................................................................................... 19 References .................................................................................................................................................... 20 Appendix A: Brand List............................................................................................................................... 23 Appendix B: Web-Development Proposal .................................................................................................. 25 Appendix C: Budget Calculation ................................................................................................................. 26 Appendix D: Implementation Calendar ....................................................................................................... 27 Appendix E: Survey Results ........................................................................................................................ 28 Endnotes ...................................................................................................................................................... 34 Re-Inventing Goodwill Curated Overview 2 Overview The goal of the “Curated” project is to expand the Goodwill customer base and increase net profit. The project will transform Goodwill from a traditional brick-and-mortar store to an omnichannel retailer, innovating and offering unique merchandise from its NYC thrift-stores. The project also aims to increase donation volume by offering a new method for collecting donations. Part 1: Research The research for the project helped us understand the current fashion business environment and where Curated will fit in it. This report evaluates current market trends for e-commerce, m- commerce, omnichannel and current practices. Finally, an evaluation of current competitors was conducted as well as a customer-survey. MARKET ANALYSIS Using market analysis, we aim to understand the conditions and potential of the current market. E-COMMERCE Today, e-commerce is the center of business strategy. The e-commerce retail market today is growing at a 10% annual growth rate1. Researchers predict e-commerce will be 17% of U.S. retail sales by 2022. This year, the U.S. will spend over $400 billion online2. While consumers primarily use their mobile to access the internet, PC users are more intense digital consumers and spend 17% more on e-commerce rather than mobile-only customers3. Among generations, millennials are the highest e-commerce consumers with 65% quick purchases4. With e-commerce at such a high, challenges arise. One bad interaction can cost a brand a lot of Re-Inventing Goodwill Curated Part 1: Research 3 negative backlash, especially with younger consumer who have access to spread word of mouth through social platforms. Every interaction counts and must create an overall easy experience for the customer. 60% of consumers are less loyal to brands after just one poor experience with their website or app, meaning you’re only as good as your last interaction5. Research shows countries with the highest percentage of mobile-friendly sites see the greatest share of mobile transactions. To get ahead, a retailer must commit to improving site navigation and usability for the mobile consumer. 46% of mobile transactions occur on mobile-friendly e- commerce sites6. M-COMMERCE Although e-commerce brings in much more sales than m-commerce, shopping via mobile apps currently delivers up to 54% of all mobile transactions, a 7% increase from 20157. The largest issue retailers face with mobile apps is not getting customers to download an app, but retaining app users. Within the first 90-days of downloading an app, only 22% of customers keep the app on their device8. As a response, m-commerce is attempting to evolve to better fit a consumers’ needs. One popular trend in mobile apps is one-click purchasing. This allows customers to purchase an item with the single click of a button. In second-hand consumer-to-consumer apps, such as Poshmark, users are able to follow brands and receive notifications for new search results. This gives the consumer awareness whenever a potentially desired item arrives, creating an advantage to having a mobile app: they have a chance to purchase an item before others see it. There is a bigger advantage to loyal mobile-app customers: mobile app customers are twice as likely to shop again from the retailer compared to mobile e-commerce users. These users also have a higher average price of shopping cart. Retailers leading in mobile apps drive 90% more Re-Inventing Goodwill Curated Part 1: Research 4 conversions. Those retailers anticipate consumer needs, highlight relevant items and reward customers for frequent visits9. Mobile apps must provide an advantage to mobile e-commerce, or they will become irrelevant. OMNICHANNEL Omnichannel is a sales approach that provides customers with an integrated shopping experience across a multitude of online and offline sales channels. In 2017, 79% of customers shop omnichannel. These customers are more loyal than those of a single channel10. Omnichannel retailing is a user-centric approach, where brands must utilize information from social media, geo-location and shopping experience; all to create a frictionless and personalized experience across all touch points. To achieve this, retailers must arm themselves with a strategy. On the front end, social media is one key touchpoint. Social media has long been a tool in retaining a customer base. Now, with options like “Shop” on Instagram and Facebook, social media is able to lead customer from a content platform to a transaction platform. Another key trend is personalization. 70% of US customers expects a personalized experience from online businesses11. 53% of customers think it is important for a business to recognize them as the same person across all platforms12. The goal is to understand customer habits – where, when and how they shop13. For back-end strategies, the most important aspect is data. Data allows for accurate targeting, leading to optimal profit. Data allows personalization.
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