Canvas8 Member : [email protected]
REPORT 06 Sep 19 HOW ARE HIGH STREET FASHION BRANDS CATERING TO BRITONS?
High street fashion brands are struggling to keep up with the changing times, and the popularity and convenience of online shopping. However, since consumers still love to shop in-store, the end is not necessarily nigh. What can fast fashion brands do to reach shoppers on the high street?
Location United Kingdom
Featured Experts Souad Katan Souad Katan is a London-based merchandising and retail consultant. She has worked with Hobbs, Laura Ashley, Superdry, and Molton Brown.
Iain Kimmins Iain Kimmins, a visual merchandising professional, is the founder of Creative Download. He has worked with Harrods and Selfridges in London and Tangs in Singapore. Iain is also the chairman of the British Display Society.
Author Stevie Mackenzie-Smith
Highlights & Data
The British high street is suffering as Despite the ease and appeal of online shoppers increasingly go online to get shopping, 85% of Britons prefer to shop in what they want and need physical stores (Marketingsignals.com, 2019) But stores are innovating to offer Britons the experiential shopping moments they 73% of people consider the shopping crave – from brow bars to cafes experience as an influential factor in their purchasing decision (PWC, 2018) There is a tension between Britons’ desire to support brands with eco-savvy 53% of Gen Yers feel store associates values and their love of fast fashion don’t have the right tools to offer great customer service, such as tablets for suggesting products (Salesforce, 2017)
Scope
Page 1 [ Canvas8 - How are high street fashion brands catering to Britons? ] Canvas8 Member : [email protected] The high street is Britain’s most notorious survivor, having outlived its own death knell more times than anyone can count. Yet high street fashion brands continue to struggle – in spite of data which
reveals that 85% of Britons prefer shopping in-store rather than online. [1] It seems that digitally- minded shoppers are being actively pushed away by high street fashion brands who are failing to keep them interested. The research found that although consumers would rather see and touch a product before buying it, time constraints, stock issues, and convenience mean they’re making purchases online instead.
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The findings reflect an ongoing trend on the British high street. Since 2013, English and Welsh
town centres have lost 8% of their shops on average. [2] Major fashion brands – once high street stalwarts – have been rocked by an inability to stay relevant. In the past year, Debenhams, LK Bennett, and M&S all announced store closures, while House of Fraser, Karen Millen, and Jack
Wills went into administration. [3] Topshop survived by the skin of its teeth after a last-minute rescue
plan. [4] While many fashion chains are failing on the high street, online fast fashion is booming. Online retailer Boohoo – which also owns PrettyLittleThing and Nasty Gal – saw sales surge in the
final four months of 2018, with revenues jumping 44% to £328.2 million. [5] But other online giants are opening physical spaces, too. In 2015 Amazon launched its first physical Amazon Books store,
and in 2019 it launched Amazon Go, a checkout-less convenience store. [6]
“Very few people exclusively shop online or only in-store. They marry the best of both worlds,” says Natalie Berg, retail analyst and author. Amazon, says Berg, is simply “connecting the
dots.” [7] It is acutely aware of the services it cannot offer as an online platform – when it comes to
its fashion offering, it has turned to pop-up stores to try to crack the market. [8] The rise of e- commerce and a culture of high return rates has put continued pressure on international shipping, as the real cost of delivery continues to rise for businesses. Could combining its digital expertise with a frictionless in-store experience be the solution not only for Amazon, but for ailing high street brands? With challenging trading conditions and a UK fashion industry worth £32 billion, there is
much at stake. [9] When it comes to shopping high street brands, what are people looking for, and how can these brands gain back their audiences?
Page 2 [ Canvas8 - How are high street fashion brands catering to Britons? ] Canvas8 Member : [email protected]
David Anderson (2019)
©
All in the experience Across all customers, 73% of respondents in a PWC survey point to the shopping experience as an
influential factor in their decision to purchase products. [10] Yet while online shopping is upping its game, brands are failing to meet customer expectations in the store.“My daughter is in her 20s and somebody asked me if she goes shopping on a Saturday with her friends. I said, ‘No, that's what we used to do!’,” says merchandising and retail consultant Souad Katan. “Her age group doesn’t do that – she's forever coming home with parcels from online purchases delivered to work.” Katan’s daughter is emblematic of a younger generation of shoppers who spurn in-store
purchasing in favour of speedy online buys. [11]
One in-store tension point, explains Katan, is that few fashion brands offer something truly different. “They’re all just trying to be Zara,” she says, citing a lack of a clear brand story and a vision
regarding quality customer service as common downfalls. [11] The power of the store, adds Iain Kimmins, founder of Creative Download, a visual merchandising agency, is its ability to “create and influence the customer.” Such experience starts on the street, as the shopper is looking in. “A potential customer only has a few seconds to stop, look, and enter the store. In New York, Lord & Taylor estimates that a whopping 500,000 people walk past its windows each day, while Macy’s
clocks in 10,000 people per hour.” [12]
High street brands have made moves to create a better experience for shoppers. Birmingham’s five-storey Primark addresses these gaps. The 160,000 square foot shop – Primark’s largest in the world – aims to attract Birmingham’s young demographic (40% of the city’s population is under 25 years old) with a barber shop, and a blow dry and beauty bar. A Disney-licensed cafe and ‘Pri-
Market’ cafe are destinations for families and young shoppers to socialise, relax, and refuel. [13] It’s about “standing out from its competitors,” says Primark’s director of store design. With so many compelling services under one roof, Birmingham’s Primark is already converting casual
browsers into shoppers. [14]
Page 3 [ Canvas8 - How are high street fashion brands catering to Britons? ] Canvas8 Member : [email protected] Birmingham’s Primark is a five-floor megastore
Krisztina Papp (2019) ©
Remember customer care? Beyond the lack of in-store curation, another failing of high street fashion brands is that they haven’t properly evolved their customer care offer. This comes as 53% of Gen Yers say that store associates don’t have the tools they need to offer great customer service, such as mobile devices for looking up customer profiles and recommending products. And 35% want the ability to search for merchandise in a physical store using an image, and then receive on-the-spot product
recommendations. [15] Tech enables optimised customer care, yet, “lots of retailers treat their online store and their brick-and-mortar stores differently, and that’s so old-fashioned,” says
Katan. [11] Being able to check stock levels in-store, order out-of-stock items from the shop floor, arrange home delivery, and use your phone to pay for items makes the shopping experience seamless and pain-free.
Katan explains that customer care is key to attracting footfall. “The internet can’t offer that service
– so if you can ace in-store customer service, you’ll win more and more customers.” [11] While tech may be lacking, brands are pivoting to create personal services with more of a human touch. John Lewis’s personal shopping service offers five different consultation services aimed at occasions like building a holiday wardrobe, finding the perfect pair of jeans, and more. Customers can take advantage of up to 9 hours of free-of-charge personal shopping. “Lower customer expectation will reduce the perceived value of the merchandise,” says Iain Kimmins, while conversely, adds Katan, better customer experience is “going to convert more shoppers because
they’re building that element of trust.” [12] [11]
[Shops] create and influence the customer. A potential customer only has a few seconds to stop, look, and enter the store
Iain Kimmins, founder of Creative Download
Ethical awareness Fashion brands, finding themselves compromised by the conversation around eco-consciousness, are relying on sustainability initiatives to remain relevant. Zara says its ‘sustainable’ Join Life range will make up 20% of the brand’s offering by the end of 2019, and announced the use of 100% sustainable cellulosic fibers for responsible viscose, the discontinuation of single-use
plastics, and the adoption of green-only packaging by 2023. [16] Adidas promises to use only recycled plastics by 2024, while Monki, part of the H&M Group, pledged a completely sustainable
supply chain by 2030. [17][18]
When surveyed, consumers say they’re committed to shopping ethically – more than half of
under-24s say they want to buy from brands that engage in eco-friendly practices. [14] But sustainability isn’t necessarily the end of fast fashion – when Missguided launched its infamous £1 bikini, critics decried it as the epitome of fashion’s throwaway culture. But the bikini continued to
sell out. Within 45 minutes of each restock, it was selling out in every size – from 4 to 24. [19] Across the board, Britons are still buying cheap clothes – and lots of them. The average Brit buys
enough clothes each year to fill a large suitcase. [20] That said, while those eco-conscious consumers wait a few years for retailer sustainability schemes to come to fruition, charity shops are
Page 4 [ Canvas8 - How are high street fashion brands catering to Britons? ] Canvas8 Member : [email protected] upping their game. NewLife, a charity that sells surplus stock from the high street at a significant
discount, will open a 4,620 square foot store in September 2019 in Birmingham. [21] Meanwhile, Oxfam is also opening its first charity superstore, turning the idea of a charity shop into a
destination experience. [22]
“We in charity retail need to make sure we are still relevant,” says Allison Swaine-Hughes, retail
director of the British Heart Foundation. [23] Retail Gazette reported that the charity’s online eBay operation accounted for £3 million of the British Heart Foundation’s revenue in 2017. The same year, Save the Children, which runs the curated Mary’s Living & Giving shops, reported an income
of £3.5 million – a growth of 7%. [24] Kate Avenell, head of visual merchandising at Save the Children believes in-store customer service as part of the success. "Shop managers are very much empowered to think outside the box, add their own personalities to the shops. We’re the antidote to that soulless, corporate, cookie-cutter approach to retailing that has worked for so many years,
but is not doing so well right now." [24]
Shops are closing across the English and Welsh high streets
Petros Agoston (2019) ©
Insights and opportunities High street brands must focus on getting shoppers through the door. It’s estimated that 80% of
purchases are still expected to happen in stores in 2020. [25] And with 61% of shoppers fearful that their high street will disappear by 2029, it’s clear high street fashion brands need to update their offer. [26] So how can brands rethink the execution of their in-store experience for consumers? They could look to cosmetics brand Lush – shoppers can use apps to scan the packaging-free products for information, which is a smart way to allow customers to shop in an ethical, informed
way. [27] Lush’s Liverpool store has a hair salon, spa, florist, and elegant dark wood shelving reminiscent of an old-fashioned apothecary, packed with brightly-coloured products, making shopping a relaxing and indulgent experience.
Brands should reward loyalty – and that doesn’t just mean through loyalty schemes. By inviting regular customers to in-store events that are both exclusive and genuinely fun, shoppers can appreciate the benefits of a high-quality and personalised service. “Invite your best customers to a Page 5 [ Canvas8 - How are high street fashion brands catering to Britons? ] Canvas8 Member : [email protected] closed-store event, introduce them to the new collections, and put out wine and nibbles,” Katan advises. “Other shoppers will pass the windows and think ‘Why aren’t I in there? How did they
get in there?!’” [11] She says it’s something fashion brands can do well – and, indeed, used to do well – but it doesn’t happen enough. Toast does it expertly, with repair classes, pop-ups, and new collection launches with complimentary blackberry and lemon vodka cocktails for shoppers.
Lots of retailers treat their online store and their brick-and-mortar stores differently, and that’s so old-fashioned
Souad Katan, merchandising and retail consultant
Moral purpose is everything. High street brands should demonstrate some kind of moral value if they want to stay relevant. ASOS was lauded for its un-photoshopped images of models with visible
cellulite and back rolls, and its diverse campaign films. [28] Monki’s Periods are cool campaign offered shoppers the chance to buy an exclusive menstrual cup made in collaboration with Lunette, a Finnish, female-run company. Such collaborations, when executed authentically, meet consumers’ desires for progressive brands that stand for something. When Topshop dismantled
an in-store feminist pop-up run with Penguin Random House, the decision was met with outcry. [29] It was one in a series of missteps – along with Beyoncé ending her partnership following allegations of bullying and sexual harassment by Topshop boss Sir Philip Green – that’s marked
the brand’s fall from grace. [30]
High street brands are not only grappling with competition online, but also facing competition from independent boutiques that are able to offer a more nimble, attentive, and human customer experience. “It is the independent retailers and the artisans that will fill the gap by offering a more personalised experience,” says Martin Newman, retail expert and founder of the Customer First Group. “We already see this in the more successful town centres that are mainly populated by
independent businesses.” [26] Perhaps coffee chains such as Starbucks have set an interesting
precedent in this regard, adapting their offer to the local environment. [31] Could a local-first Topshop or Zara ensure more success against shoppers who cherish the presence of independent
clothing stores on their high street? [32]
Sources
1. ’85% of customers prefer shopping in store’ , Drapers (April 2018)
2. ’High street crisis deepens: 1 in 12 shops closed in five years’ , The Guardian (January 2019)
3. ‘Shoppers fear end of ‘quality fashion’ as online retailer Boohoo makes offer for Karen Millen and coast – in another
blow to high street with 1,100 jobs at risk’ , This is Money (August 2019)
4. ‘Green secures rescue deal for Topshop empire’ , BBC News (June 2019)
5. ’Boohoo remains in fashion as sales surge’ , BBC News (January 2019)
6. ‘Amazon opens its first cashier-less Go store outside of Seattle’ , The Verge (September 2018)
7. ‘Five reasons why Amazon is moving into bricks-and-mortar retail’ , Forbes (December 2018)
8. ’Amazon's fashion pop-up taps tactile shoppers’ , Canvas8 (October 2018)
9. ’The UK fashion industry is worth £32 billion to the UK economy, says British Fashion Council CEO’ , The Evening
Standard (September 2018)
10. ‘Experience is everything: Here’s how to get it right’ , PWC (March 2018)
11. Interview with Souad Katan conducted by the author
12. Interview with Iain Kimmins conducted by the author
Page 6 [ Canvas8 - How are high street fashion brands catering to Britons? ] Canvas8 Member : [email protected] 13. ’Spotlight: Primark’s new Birmingham megastore’ , Retail Gazette (April 2019)
14. ’Cheap and cheerful: why there’s more to Primark’s success than you thought’ , The Guardian (May 2019)
15. ’Salesforce Connected Shopper report 2017’ , Salesforce (September 2017)
16. ’As Zara Announces Its Latest Sustainability Goals, Three of Its Design Team Weigh In on Going Slower and
Creating Responsibly’ , Vogue (July 2019)
17. ’Adidas vows to use only recycled plastics by 2024’ , The Financial Times (July 2018)
18. ’Swedish fast fashion brand promises to go sustainable’ , EuroNews (July 2019)
19. ’How a £1 bikini revealed the changing shape of fast fashion’ , The Guardian (June 2019)
20. ’Britons buy a suitcase full of new clothes every year’ , The Times (October 2018)
21. ’This is when Newlife is opening its Birmingham store selling bargain high street clothes’ , Birmingham Live (July
2019)
22. ‘Oxfam targets ‘wow factor’ with its first charity superstore’ , The Guardian (September 2019)
23. ’Big Interview: Allison Swaine-Hughes, Retail Director, British Heart Foundation’ , Retail Gazette (October 2018)
24. ’Charity shops: Alive and thriving on the high street’ , Third Sector (September 2018)
25. ’UK Retail Apocalypse Deepens’ , Business of Fashion (November 2018)
26. ‘The high street isn’t dying, it’s going independent’ , Raconteur (March 2019)
27. ’Lush: Speaking to fans away from social’ , Canvas 8 (June 2019)
28. ’ASOS "Go play" by Somesuch’ , Campaign Live (September 2017)
29. ’Topshop's Philip Green under fire over axing of feminist book display’ , The Guardian (October 2018)
30. ‘Beyoncé cuts ties with Sir Philip Green and buys out Ivy Park share’ , The Guardian (November 2018)
31. 'Why Starbucks succeeded in China: a lesson for all retailers', Forbes (August 2017)
32. ‘Which shops the UK wants on the high street’ , Independent (July 2019)
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