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12.07.2022

Study on Click & Collect in the Fashion Industry

Study reveals need for action

How well are online and in-store businesses linked in the German fashion industry? How smoothly do omnichannel models like click & collect work? And how satisfactory is this for consumers? These questions were addressed by the Cologne-based company fulfillmenttools as part of its study "Click & Collect in the German Fashion Industry".

Study reveals need for action

How well are online and in-store businesses linked in the German fashion industry? How smoothly do omnichannel models like click & collect work? And how satisfactory is this for consumers? These questions were addressed by the Cologne-based company fulfillmenttools as part of its study "Click & Collect in the German Fashion Industry".

For the study, around 80 of the largest fashion retailers in Germany were examined in the first and second quarters of 2022. Of these, 22 companies in the sample offered Click & Collect as part of their service portfolio and could be analyzed in detail as part of test purchases. The mystery shoppers focused on how Click & Collect orders are processed via the retailers' online stores, the shopping experience when picking up the merchandise at the stores, and the handling of the returns process. The result: there is a clear need for optimization in all steps. According to the study, none of the retailers analyzed is currently in a position to offer its customers a consistent and convenient omnichannel experience.

In the fashion industry in particular, Click & Collect allows customers to benefit from on-site service and the convenience of online shopping. Immediate fitting, simple returns and no shipping costs are just a selection of the many advantages. Last but not least, the restrictions imposed in the wake of the Corona pandemic have accelerated the spread of Click & Collect in the retail sector. But how well does it work and how is it perceived by customers? "There is currently still a lack of data in operational practice that illustrates how well Click & Collect is implemented in reality from the customer's point of view. That's why we took a closer look at the status quo of Click & Collect models in the German fashion industry," says project manager Marleen Ratert.

In the study of around 80 of the largest fashion retailers in Germany, it was initially surprising that only 22 of the 80 (27%) retailers surveyed offer Click & Collect as an option for their customers in their service portfolio.

In analyzing and evaluating the companies that offer Click & Collect, the focus was on the entire journey of a customer order: ordering process, communication, pickup, returns processing and refunding.

According to the study's authors, a positive aspect is that the ordering process in the online store runs smoothly at most fashion retailers. However, customer communication before, during and after the click & collect order process was generally deficient. Missing order confirmations and non-existent information about delivery time and pick-up time were particularly negative.

he German fashion retailers performed worst in the area of the collection process. In particular, long delivery times, a lack of service points at the point of sale, and forms that have to be filled out by hand are the main reasons for dissatisfaction with the pickup process. In the area of returns processing, it was primarily the lack of digitization of the process that stood out: A large proportion still work with manual forms. However, the majority of fashion retailers in Germany have no problems processing the payment afterwards.

Monolithic IT structures, different solutions for many operational areas, traditional processes, missing interfaces - the reasons for the problems with the quick and easy introduction of omnichannel processes are numerous on the part of the companies. The demands of customers, on the other hand, have risen rapidly in recent years.

The checklist for successful omnichannel retailers provides tips and tricks for optimizing online and offline business in a process- and customer-oriented manner:

SIMPLIFY ONLINE ORDERS

  • Prominently feature Click & Collect as a service in the online store in order to draw customers' attention to it more quickly and fully exploit sales potentials
  • Improve availability of Click & Collect products

CREATE SEAMLESS IN-STORE EXPERIENCES

  • Install service points for picking up orders and clearly mark them as such to avoid waiting times at the checkout and provide customers with better orientation
  • Make store staff aware of upselling and cross-selling opportunities to encourage additional purchases

OPTIMIZE PROCESSES

  • Pick online orders in the store to significantly speed up delivery times and easily meet delivery promises
  • Digitize handover and return processes to make store operations more efficient and reduce the workload on staff
  • Regularly test omnichannel processes to identify gaps in communication and potential for optimization

IMPROVE SERVICE QUALITY

  • Implement end-to-end communication throughout the process to keep customers informed about the status of their order at all times
  • Offer various return options to best meet customer expectations

Modular software-as-a-service solutions for fulfillment processes are available to simplify complex processes for retailers, reduce the workload of employees and prevent errors in order picking. The entire study (in German) is available for download here.

Source:

fulfillmenttools.com / REWE digital

Photo: pixabay
25.01.2022

momox fashion presents Second Hand Fashion Report 2022

  • Representative study with almost 8,000 participants regarding the second hand fashion market in Germany
  • Second hand replaces new: 84 percent have bought less new goods due to second hand shopping
  • 71 percent have spent less money on new goods because they have bought second-hand clothing
  • For just under one in two (45 percent), buying second-hand clothing has become a matter of course
  • When buying second-hand fashion, sustainable production is more important (60 percent) than the brand name (48 percent)

Second hand replaces new - that's what 84 percent of second hand shoppers in Germany say, stating that buying second hand items has replaced buying a new clothing item for them.

  • Representative study with almost 8,000 participants regarding the second hand fashion market in Germany
  • Second hand replaces new: 84 percent have bought less new goods due to second hand shopping
  • 71 percent have spent less money on new goods because they have bought second-hand clothing
  • For just under one in two (45 percent), buying second-hand clothing has become a matter of course
  • When buying second-hand fashion, sustainable production is more important (60 percent) than the brand name (48 percent)

Second hand replaces new - that's what 84 percent of second hand shoppers in Germany say, stating that buying second hand items has replaced buying a new clothing item for them. Another 71 percent state that they have spent less money on clothing because they have bought used items.** These are the results of the current Second Hand Fashion Report 2022, for which the second hand online store momox fashion has conducted two studies for the third time in a row: A representative survey in cooperation with the market research institute Kantar as well as a customer survey among momox fashion customers to get detailed insights into the second hand clothing market. A total of 7,826 people took part in the surveys.

Buying second hand clothes has become a matter of course for every second person
The representative Kantar survey shows that buying second-hand clothing has become routine: 67 percent of Germans have already bought second-hand clothing at some point - an increase of eleven percent on the previous year. More than one in two (56 percent) do so regularly - at least once a year. For 45 percent, buying second-hand clothing has become a matter of course or very much a matter of course. In addition, more than half of Germans (53 percent) estimate that their closet consists of up to 20 percent second-hand clothing.*

Second hand clothing is not only shopped online, but also sold
The most popular way to buy used clothing is online shopping: 44 percent of respondents buy their second-hand fashion pieces online. Around one in three (28 percent) go to second-hand stores in search of their next favorite second-hand item, followed by flea markets with 14 percent. Surprisingly, the 50+ generation in particular likes to buy online (44 percent). Generation Z (under 25s), however, prefers second-hand stores (30 percent).*

But it is not only second-hand online shopping that is popular. Almost one in two (45 percent) resells used clothing, preferably online (76 percent). Only 11 percent sell at flea markets and 8 percent at second-hand stores.*

Sustainability remains main motivation for buying used clothing
To find out more about the reasons for buying second-hand clothing, momox fashion conducted a customer survey among almost 7,000 participants. The main motivation for buying second-hand clothing continues to be the sustainability aspect with 87 percent. 83 percent buy second-hand clothing because of the price savings compared to new goods. Around one in two (49 percent) goes in search of clothing in second-hand stores because the desired items are no longer available in regular stores.**

Almost all respondents (91 percent) generally consider sustainability and environmental protection to be important or very important when buying clothing. This is also reflected in consumer behavior: Around three quarters (85 percent) try to buy second-hand whenever possible. 58 percent make sure to purchase sustainable clothing. And 31 percent use environmentally friendly products for the care and cleaning of clothing.**

Sustainable production or brand name - which is more important?
For more than half (51 percent) of the respondents, the brand name is less important or unimportant when buying used clothing. Whether the clothing was produced sustainably, on the other hand, is considered by 60 percent to be very important or important. Especially for the 60+ generation (75 percent), sustainable production of second-hand clothing is very important or important.**

Second hand clothing is especially popular among parents
However, second-hand clothing is not only bought for oneself, almost every fifth person (18 percent) also buys it for his/her children.* Among the parents of the second-hand shoppers, 85 percent buy second-hand clothing for their children. Online stores (58 percent) and online marketplaces and second-hand online stores (51 percent) are the most popular. 43 percent buy used children's clothing from friends. 33 percent like to go shopping in second-hand stores and another 23 percent in stationary children's clothing stores. At the same time, 63 percent of respondents say they buy more second-hand clothing since becoming parents.**

Jackets and coats are second hand top sellers
Second-hand jackets and coats (70 percent) are the most popular items, followed by sweaters (60 percent), dresses and skirts (56 percent) and pants (49 percent). Pants and sweaters seem to have become more popular among second-hand shoppers compared to the previous year (previous year: 46 percent and 51 percent). Younger shoppers (18-29 year olds) prefer to buy their sweaters second hand even more than jackets and coats (80 percent).**

Sources:
* Kantar survey
** momox fashion survey
 
Method:
Kantar survey: number of cases (n=1,037), target group: 16-64 years; method: online survey in the survey period (13.-16.11.2021), conducted by Kantar Deutschland GmbH on behalf of momox AG.
 
momox fashion survey: number of cases (n=6,789), survey period (21.-26.10.2021), target group: momox fashion customers aged under 18 to over 60; method: online survey, conducted by momox AG

Download of study (in German)

Photo: Jakob Jost GmbH
25.08.2020

Steffen Jost: “We have to become faster, better in our Product Ranges and adopt a more strategic Approach.”

Interview with Steffen Jost, President of BTE e.V. and General Manager, Jakob Jost GmbH
 
On July 31 2020, the German Retail Association - HDE e.V. reported in addition to the current sales figures published by the Federal Statistical Office: “Many clothing retailers are still in danger of existence.” An HDE survey of 500 retailers showed that around two thirds of the non-grocers achieved at least 75 percent of sales in comparison to the same week last year. The main reason for this is the slowly increasing number of customers.

Interview with Steffen Jost, President of BTE e.V. and General Manager, Jakob Jost GmbH
 
On July 31 2020, the German Retail Association - HDE e.V. reported in addition to the current sales figures published by the Federal Statistical Office: “Many clothing retailers are still in danger of existence.” An HDE survey of 500 retailers showed that around two thirds of the non-grocers achieved at least 75 percent of sales in comparison to the same week last year. The main reason for this is the slowly increasing number of customers.

For 27 percent of retailers, however, the situation is still very serious: They realize their entrepreneurial existence threatened due to the corona crisis. Most retail companies will not be able to make up for lost sales that have occurred in recent months. Accordingly, two-thirds of non-grocery retailers calculated that sales would also decline in the second half of the year. Many clothing retailers continue to face difficult times.

Textination spoke about the situation with Steffen Jost, long-time president of the BTE Federal Association of German Textile Retailers, owner and managing director of Jakob Jost GmbH. The family company, founded in 1892, operates five clothing stores in Rhineland-Palatinate and Baden-Württemberg in the medium to upper price segment with more than 300 employees and a sales area of around 20,900 square meters.

How have you felt about the corona era to date - as a company and personally? What would you on no account want to go through again and what might you even consider maintaining on a daily basis?
The corona era was a challenging time for the company and its employees. You realize very clearly which employees are loyal and committed to the challenges and which are not. It is frightening to experience the appearance of mask refusers among the customers, who claim to go shopping without a mask and demand freedom for themselves and at the same time presuppose the employees' willingness to make sacrifices. The tone, the impertinences as well as the aggressiveness are alarming, it is often pure egoism. And in this context the meaning of freedom is limited to their own freedom.    

What does the pandemic mean economically for your own company so far, how do you estimate the consequences for the entire sector?
The economic impact, especially in terms of profitability, is immense. Since it affects the entire sector and thus also many companies that entered the crisis without a solid equity base, a major shakeout is to be feared. Especially because it is also not yet possible to predict how long the crisis will last.
 
What adjustments or innovations have you considered necessary for your product range?
As a result of the crisis, occasion related and elegant clothing is tending to decline, while sporty clothing is on average a bit more successful, so that more we emphasis on these aspects. The stationary trade as well as the industry have big problems, nevertheless there are acceptable solutions with many suppliers after intensive exchanges. A few suppliers try to enforce their own interests exclusively. Of course, this will result in corresponding consequences for the cooperation.

How do you consider suppliers in the future, what experiences have you made and will you draw consequences for your procurement policy?
A good cooperation between retail and industry is essential for economic success. If this basis does not exist (it has suffered considerably as a result of corona), it is also assumed that future economic success will be worse. A profit-oriented corporate management must take this into account in its procurement policy.
          
Which initiatives or instruments at politico-economic level did you welcome for the sector, of which have you been critical?
For many companies, including ours, both - the short-time working allowance and the KfW loans are essential components to secure the company's long-term future. For the first time the retail sector is applying for short-time work. We are critical of the lack of willingness on the political level to enforce the mask obligation and to punish violations of it accordingly. This has been passed on to the retailers and other sectors of the economy with corresponding problems in customer relations.
The interim aid was a great help for many small companies, but unfortunately medium-sized companies were not able to benefit from that. Corona has certainly massively accelerated the structural processes and developments in the retail sector, whereby the one-sided consideration of online sales, as currently can be seen, certainly falls short. It is also a question of the ability to generate profitable sales in normal times in order to build up business substance and also to finance necessary investments.

Did the corona era also have a positive effect, while the sector has brought forward innovations that would have been necessary anyway?
This might have happened in some cases. Especially companies that were not yet sufficiently digitally positioned may have taken action here very fast. In width, however, times of crisis seldom mean large investment periods.

What needs the stationary retail trade has to meet in future, what services must be offered in order to get a stable future?
The retail trade must be more than a place where goods are stocked in large quantities. The internet can do this on a much larger scale. Real customer service will play an increasingly important role, as will the length of stay and the design quality of the retail space. At the same time, it is important to make an optimum use of the digital possibilities. In addition, it is important to curate the product ranges in such a way, that the customers’ respective requirements are matched by an assortment that meets their expectations. Basically, this has been the original task of purchasing for decades. It is frightening to experience the appearance of mask refusers among the customers.
          
Which initiatives or approaches by or for your sector would you appreciate as support for such a future?
The cooperation between industry and multi-label retailers must definitely become more intensively and, above all, faster. Up to now, the possibilities of electronic data processing in a mutual flow of information, have been used by far too little and the corresponding consequences have not been drawn. In addition, the procurement times need to be reduced significantly.  The order and delivery dates must be set much later, and the possibility of using the digital world for ordering must also be implemented, in order to compensate at least the great systemic advantages of the vertical trade and thus also to reduce significantly the rates of write-offs and returns.

Until now the big issues have been globalisation, sustainability / climate change / environmental protection, digitisation, the labour market situation and so on. How must we rate them against the backdrop of the Covid-19 pandemic?
Covid 19 will not change the big issues seriously, they will remain with us. Possibly the negative labor market situation, which is to be feared, can push them into the background, because if existential needs have to be solved, experience shows, that there is much less attention for the other problems.
 
What are the lessons for the textile retail trade with regard to these goals for the post-corona era?
The long lead times between ordering and delivery must finally be shortened. We have to become faster, better in our product ranges and adopt a more strategic approach. We may not lose sight of our own interests and the overall strategy of a company through the specifications of individual suppliers.
The strategic goal can only be to strive for permanently profitable sales and to implement all necessary measures consistently.

The interview was conducted by Ines Chucholowius,
CEO Textination GmbH

German Shopping Miles attract Turkish Merchants Photo: Pixabay
10.04.2018

GERMAN SHOPPING MILES ATTRACT TURKISH MERCHANTS

  • Companies expand branch network

Bonn (GTAI) - Thanks to the constantly good economic situation, the Germans are in best consumer mood. Turkish retailers also want to benefit from this and are expanding their store network in Germany. However, in order to be successful in the country, they have to respect a lot. Turkish investments in production facilities are seldom in Germany. However -the location offers a decisive advantage to the companies.

  • Companies expand branch network

Bonn (GTAI) - Thanks to the constantly good economic situation, the Germans are in best consumer mood. Turkish retailers also want to benefit from this and are expanding their store network in Germany. However, in order to be successful in the country, they have to respect a lot. Turkish investments in production facilities are seldom in Germany. However -the location offers a decisive advantage to the companies.

Modern furnished industrial lofts characterize the picture of the Düsseldorf Schwanenhöfe. Scenery restaurants, studios and companies have recently established themselves on the former chemical site in the district of Flingern. Since September 2017, the Turkish glass manufacturer Pasabahce became represented here with a showroom. On nearly 300 square meters expensive wine glasses, carafes and numerous other glass products are exhibited. After New York, Madrid, Milan, Shanghai and Moscow, it is the sixth outlet outside Turkey for the Istanbul company. Pasabahce is part of the Sisecam Group and one of the largest glass producers in the world.
 
Most Turkish investors come from the clothing industry
Turkish companies are currently focusing on the consumer goods market in Germany and are opening up business like Pasabahce. The investment focus is on the apparel market. Of the 211 projects by Turkish companies listed the Financial Times fDi-intelligence database between 2003 and 2017, every fifth is assigned to the textile and clothing industry. Another 11 percent comes from areas such as the furniture or cosmetics industry. For most traders, the local Turkish community does not play a major role as a target group. The Turkish companies are competing with other international brands in the German market for a broad western consumer group.

Turkish fashion houses are expanding
This includes the newcomer Yargici, which opened  four stores in top location throughout Germany in 2017. It was the first foreign engagement of the Istanbul clothing company. "In this and the coming years, more branches will be added, after all, we did not come to Germany to open just a few stores only", Germany boss Erik Schaap explains confidently.

The Turkish fashion company Sarar has been present here for over 17 years. In the year 2000 it opened its first branch on the Düsseldorf Königsallee. Since then, the company has invested about EUR 15 million in the country and opened eight boutiques. Sarar also wants to continue growing and is planning to reach 20 stores by 2020. However, Turkish retailers in Germany do not find it easy, as Sarar Europe GmbH marketing manager Salim Ünyeli admits: "The competition is very strong due to the ubiquity of Zara, H & M and Co. Most consumers do not know Turkish labels and prefer for the same price known Western brands."
"The tensions between Germany and Turkey have damaged our business, and potential customers are deterred from buying from a Turkish company." (Marketing Manager Salim Üniyeli of Sarar Europe GmbH.

Who thinks Turkish, fails
Turkey expert Suat Bakir knows the typical pitfalls for Turkish companies looking to start a business in Germany. Bakir is the capital representative of the German-Turkish Trade Association (DTW) and was previously managing director of the Turkish-German Chamber of Commerce and Industry for seven years. "Many fail because they do not spend money on professional advice and ask a Turkish acquaintance for advice instead," Bakir said. Gastronomy and clothing chain in particular have a high fluctuation rate, because it is particularly important in these segments to find and use the right location and a suitable marketing. "Anyone who thinks in Germany like a Turk and does not adapt its products to German consumer taste will not succeed on the long term," Bakir says. Because of the strained relations between the two countries, he advises against introducing a Turkish brand on the German market right now: "The German tourist, who is currently avoiding Turkey, will probably not buy from a Turkish company."
 
Deutsche Bogenn opens factory
Although only very few Turkish companies have invested in production facilities in Germany so far, Suat Bakir recognizes potential in this area. Turkish companies could adopt the positively occupied brand made in Germany, if they would manufacture in the country. The most recent example is the company Deutsche Bogenn, which opened a new plant for plastic pipes last year on Rügen. Behind the extra German sounding name the Turkish Dizayn Group is hided. From its new location, the company wants to produce pipes for various infrastructure projects with 100 employees and sell them worldwide.

Low investment volume
Turkey so far has played a minor role as an investor in Germany - despite the many bilateral relations. Turkish companies have invested just EUR 1.8 billion in the Federal Republic. According to Suat Bakir a key reason is the low level of internationalization of Turkish companies. Another obstacle are the visa restrictions for Turkish business people. The DTW estimates that so far 1,300 companies of Turkish origin have settled in Germany, one in three in North Rhine-Westphalia alone. That is a merit of a committed location marketing. Suat Bakir recommends that all federal states should exploit the interest of Turkish companies and promote their state more in Turkey. Mecklenburg-Vorpommern has already recorded a recent success with the establishment of Deutsche Bogenn on Rügen.

More information:
Retail Turkey
Source:

Sofia Hempel, Germany Trade & Invest www.gtai.de