Marcus Leroux
Grab an Italian masterpiece for less
Sir Philip Green is famously reluctant to follow slavishly the latest fashionable idea unless it makes good business sense.
When Terry Green, Tesco's fashion supremo, was dismissing an online start-up idea named Mint recently, he joked, "Philip Green would've called it Skint". Sir Philip's name has become short-hand for a no-nonsense approach that leaves little room for modish frivolity.
So when Arcadia — the group, owned by Sir Philip, that includes Topshop, Miss Selfridge and Burtons — invited fashion bloggers to its headquarters for a preview of its autumn/winter lines and a photoshoot two weeks ago, the rag trade took note.
The charm offensive signalled to the industry that Arcadia, considered by some a laggard in the online stakes, had decided to sharpen how it competed on the internet. The move was seen as all the more significant in the light of Sir Philip’s ambitions to partner Simon Cowell, the television and music impresario, in a multichannel fashion and entertainment project.
Arcadia’s marketing drive is part of a broader pattern in which retailers have been forced to find new ways of influencing key opinion-formers on the internet, which is the sector’s fastest-growing sales channel.
Leon Bailey-Green, the founder of The Online Fashion Agency, said: “This is part of Arcadia opening itself up to new forms of media. Look at Sir Philip’s media entertainment ambitions,” “Arcadia knows media consumption is fragmented, and right now bloggers are ruling the online fashion space.”
The move is significant because Arcadia’s brands have been thought to be punching below their weight online. Asos, the fashion retailer that trades entirely online, receives more visitors than any of Sir Philip’s brands.
River Island recently overtook Topshop, Arcadia’s biggest business online, in traffic volumes. The two are similarly sized businesses overall. Meanwhile, New Look is within touching distance of Topshop despite having launched online only in December, according to data from IMRG, the trade body for internet retailers.
As frivolous as the bloggers’ fashion preview sounds, fashion experts are unanimous on their increased importance. Recognition of the bloggers began at the high end of the market.
Two years ago Chanel invited 12 bloggers to Paris for a VIP tour of Coco Chanel’s apartment. It is now commonplace for bedroom bloggers to have their own section at fashion shows, elbow-to-elbow with the conventional fashion media.
The Arcadia event seems to have been a success. One blogger, Magazine Machine, wrote: “It was the first time a retailer had put on an event like this specifically for bloggers ... it has taken a while for PRs to adjust to the various forms of online fashion sites.”
About 15 per cent of fashion sales are online, a figure that is rising quickly. Perhaps more important, IMRG estimates that more than 40 per cent of fashion sales are in some way influenced by the internet, so retailers increasingly see the need to win hearts and minds online.
This is problematic because consumers are notoriously fickle and disloyal on the internet. About 63 per cent of customers have increased their use of price comparison websites in the past year, and 45 per cent said that they would leave a website immediately if it failed to show them what they wanted on the first page, according to Avail Intelligence’s Trust Index.
The vexed question of trust and brand-building on the internet means that a company that has organically developed an affinity with a loyal base of customers can be an attractive acquisition target. Amazon, the world’s biggest online retailer, announced that it was to buy Zappos, a quirky, niche footwear and clothes online retailer, for nearly $847 million (£517 million), the biggest acquisition in its history.
Mr Bailey-Green said that Zappos had built up an appeal to customers that would prove difficult or impossible to replicate. It has been known to send flowers to customers on special occasions and its telephone sales representatives are told to direct customers to rivals if necessary.
“Retailers who fail to take fashion bloggers seriously now will find it difficult to get their attention when they become mainstream”, Mr Bailey-Green said. “It will affect sales.”
Industry sectors news at a glance. Interactive heatmap, video and podcast
Everything the Business Traveller needs to know to make a better trip
Get ready for the winter sports season, with our resort guides and snow reports
We are backing British business, what is the confidence of the nation and what businesses are succeeding?
Growing demand for energy, oil that is harder to reach and the rise of carbon dioxide emissions. We examine the energy challenge
With rail travel in Europe on the rise, we review the benefits of travelling by train
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
1998
£47,955
12 months for the price of 11 and a 5% discount.
Offer ends 31/11/09
Check your free Experian credit report before applying
Car Insurance
to £60K + bonus (OTE £90k)
Lord Search & Selection
Location Flexible
PwC’s Consulting practice helps businesses of all shapes
and sizes work smarter and grow faster.
£85k
CPA
Highly Competitve
Specsavers
Whiteley, near Southampton
Moments from Battersea Park.
For sale with Winkworth
Find out about shared ownership.
See your free Experian credit report beforehand
Book now & save over £100pp.
11 cool resorts, lowest prices... Early Booking offers 15 Nov.
20% off selected Azores holidays taken in October with Sunvil Discovery
Get covered on your travels with a superb range of policies at great prices. Visit InsureandGo.com
World Class Golf, Spa and preferential Beach Club. Private estate overlooking West Coast
Villas from £275 per night inclusive of Golf
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
Your Comments
Order By: