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The fuTure of fashion reTailing

ProgrammaTic commerce™ and The digiTal reTail revoluTion

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The future of fashion retailing – it’s not what you thinkThe fashion retail market is on the verge of its next big revolution claims Hugh Fletcher, Digital Business Consultant at global ecommerce consultancy Salmon. It’s a revolution that will see our every fashion need predicted for us, and will see our clothes and our beauty products automatically ordered, sent and delivered to our closets, without even the click of a mouse.

According to research of 2,000 UK consumers conducted by Salmon and Censuswide, we are an “automation nation” and a group of shoppers whose fear of machines is on the wane as we embrace digital and give the thumbs up to automated purchases within the next two years.

“This isn’t fantasy”, argues Fletcher. “With the emergence of connected devices, shoppers’ readiness to share their data, and their comfort with technology on the rise, the market conditions are perfect for what we are calling ‘Programmatic commerce’* – a movement that can be more simply described as automated shopping and machine re-ordering.”

doesn’t this feel a little orwellian?So let’s get this straight – rather than shoppers going to shops or online retailers to proactively choose their clothes, machines will use their data to make purchasing (and sartorial) decisions for them, and act as their digital stylist? It all seems a little Orwellian doesn’t it, and to be honest, also a little sad – after all, isn’t searching for that perfect dress part of the fun?

There are certainly times when only visiting a shop, and trying on a range of clothes will do. There are others when spending hours navigating around an online retailer to find the

perfect accessory is both fun and rewarding. But consumers – 53% according to the survey – are telling us that what’s driving the move to more automation is a desire to make the shopping experience easier and more convenient.

We’re not as spontaneous as we thinkThe power of data also shouldn’t be underestimated. We, as shoppers, believe ourselves to be spontaneous, creative, and maverick, but the reality may be slightly different. In fact, many of our shopping habits are just that – habits. Anything from sizing, to regularity of purchase, to seasonality can be predicted with some degree of accuracy. This data predictability is something that the supermarkets have mastered for their online shopping offering.

So imagine this. It’s November and the Christmas party season is on the horizon. You need to look your best but just don’t have the time to find that show-stopping outfit. But don’t worry. Your favourite online retailer knows all about you – your size, the items you order, the items you return and when you normally shop. Using this data, it’s predicted your annual need for a Christmas frock. It can select the perfect mix of style, price and fabric quickly from across its range. In fact, it can select a range of outfits for you. It can send these out to you, without you asking. And enable you to try on, and select the right dress for you. Those you don’t choose can be returned free of charge.

Isn’t this the type of treatment that A-list celebs have been getting for years? Only now it could be available to you.

*Programmatic Commerce is a trademark of Salmon Ltd.

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customer nervousnessBut would customers really be happy to have their data interrogated so deeply that retailers could predict what items they’d like and need before even the shopper does? The answer seems to be yes – with 60% saying that they would be interested in the idea of tech-led purchases.

“It is inevitable that some customers will approach this revolution with a degree of nervousness” concedes Fletcher. “Back in the nineties the emergence of ecommerce in retail was challenged by numerous sceptics who dismissed its potential due to issues such as the inability to try on and feel the physical garments, and by security fears about data. But look where we are now.”

Like most changes though, there is an adoption curve. And it would appear that some shoppers are ready for their automated digital stylist now – 45% of shoppers said that they would be ready for automated purchasing within 1-2 years – yet some (13%) are ready now to see how computers and data can revolutionise their look.

a new model for a new generationUnsurprisingly, the consumers most comfortable with such a game-changer are the younger generations – with 46% of 25-34 year olds ready for Programmatic Commerce today.

“Given the adoption of digital technology, and given how personal data exchange has become standard fare for younger consumers to access information and functionality, it’s not surprising that this is the group who feels most at home with this new way of shopping” comments Fletcher.

And that bodes well for the machines. The population of shoppers will continue to grow over time with the addition of younger, more tech-savvy

youngsters starting to enter the fashion market. Many of the challenges of the older generations will simply disappear with time as the shopping public moves from digital adoptive to digital native.

it’s not just about style, sometimes it’s about helpThis revolution may have other benefits too. One of those may be the ability to remind us shoppers if we’re running out of key wardrobe staples.

Again, unsurprisingly, it would also appear that the younger age groups are those that would benefit most from support from machines. 64% of 18-24 year olds often don’t realise that they have run out of products. In other words, the modern world has built a forgetful consumer who could really benefit from a machine doing his or her thinking for them.

“The key for fashion retailers is to choose items which have patterns of repeat purchase – underwear for instance” explains Fletcher. With this type of machine-led re-purchasing, we may never need to be caught short with a pair of holey, Bridget Jones style undies ever again!

So how could this play out in real life? Imagine this scenario: it’s first date night and you’ve forgotten to buy some new tights. All your existing ones have ladders in them, and there’s no way you’re going bare-legged. But have no fear. Based on your repurchasing patterns and an estimation of the average life cycle of your tights, your favourite online retailer has automatically re-ordered some new ones for you. In fact, they’re waiting in your post box right now. Your future happiness need not be derailed by a wardrobe malfunction.

To infinity and beyondAnd if all that wasn’t enough to revolutionise the way you’re styled, then what about the Internet of Things? We already have connected TVs and fridges. So how long until we have a connected wardrobe – its job being to keep tabs on your clothes, their whereabouts, their state of hygiene, and their need to be replaced? And based on this data, to suggest additions, replacements, and to automatically order for you. It’s less a wardrobe, and more an in-room style consultant.

conclusionSo be prepared for a time when retailers and wardrobes know the state of your undies better than you. Be prepared for data and machines to be defining your style and look. Be prepared for Programmatic Commerce.

Industry experts are citing it as the next big thing in digital, and tellingly, your customers will be ready to embrace it within 2 years.

Salmon’s new, major research into UK consumer attitudes to the coming programmatic age, highlighting the impacts for brands, retailers and smart device manufacturers, is now available. Download your complimentary report at Salmon.com.

Get in touch with Salmon at info@salmon.com.

©2016 Salmon Ltd. All rights reserved. All company and product names, brands and symbols mentioned herein are brand names and/or registered trademarks of their respective owners.

about the author

hugh fletcherDigital Business Consultant, Salmon Ltd.

Hugh helps organisations prepare themselves for, and implement, digital change. This strategic consultancy is based on innovations and developments within the digital commerce sector. With close to 12 years’ client-side experience – much of that with Audi – he brings a unique perspective forged by his client experience.

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