This week we are excited to be looking at the next part of recent research, in collaboration with retail trend experts, Conlumino.
Did you know that the cost of returning unwanted clothing to UK fashion retailers reached ?90.76 million last year? The research, from retail analysts Conlumino, and supported by us Webloyalty, found that the majority of this cost - ?61.52 million is being borne by retailers. This actually represents some 47.4 million purchases returned over the cost of the year. The cost of a further 13.6 million returns, some ?29.24 million - was taken on by British consumers.
Neil Saunders, who speaks on behalf of Conlumino explains the situation that our UK fashion retailers now face: "An increase in the number of fashion orders placed remotely has led to a corresponding increase in the number of returns made locally, with the largest share of this cost falling on retailer's shoulders.
"Returns are a particular problem in fashion where consumers are now used to ordering multiple items in a range of sizes, colours or cuts in the knowledge that they can easily send back items that they don't want. In many ways, the home rather than the store has become the fitting room, often at retailer's expense."
While many retailers do build in some cost of returns, there is the danger that as remote channels continue to grow, the cost of servicing the consumer also grows. This situation would inevitably erode profitability. The ideal situation for retailers is to minimise the volumes of returns while growing sales. To do this, they may need to revisit how the returns process fits into their multichannel strategy.
Our very own Webloyalty Managing Director, Guy Chiswick, explains how fashion retailers could make the most of the multichannel environment to minimise returns: "The emerging trend of the bedroom replacing the traditional fitting room should be seen as an opportunity for retailers rather than a barrier to growing digital sales channels.
"Traditional stores have long recognised that giving styling advice in the fitting room can contribute to both customer loyalty and sales growth. The multichannel retail environment is well positioned to bring this styling advice into the consumer's home. Mobile and tablet channels are the perfect format for providing customers with styling advice and enabling them to share 'looks' via social media. In this way, retailers can seek to minimise returns while at the same time increasing engagement and loyalty with consumers. " About the Author
Sarah joined Webloyalty in 2008 as the Corporate Marketing Manager with a major focus on setting up the digital marketing strategy.
I think the best way to do shopping is to shop online. Designers and stores must establish a website and promote it buy offering promotional coupon codes and discounts. This way people will only order what they consider fit for them by checking a products specification on website. It can minimize bulk ordering without purpose. In addition to it a return policy has to made which indicate terms and conditions on which a customer can return a product.
ReplyDelete