Digital Marketing in the Fashion Retail Sector

This document discusses the use of digital marketing in the fashion retail sector, including the opportunities and challenges faced in the current economic environment. It also explores the strategic approach and best practices for online fashion retailers.

Digital Marketing
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Contents
INTRODUCTION...........................................................................................................................3
Introduce the online fashion retail sector.....................................................................................3
Identify the opportunities and challenges faced in the current economic environment..............3
Explain how digital marketing is used in the fashion retail sector..............................................3
SECTOR REVIEW.........................................................................................................................4
Strategic Approach..........................................................................................................................5
CONCLUSION..............................................................................................................................11
RECOMMENDATIONS...............................................................................................................12
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INTRODUCTION
Introduce the online fashion retail sector
ASOS plc is based on the British online fashion and cosmetic retailer. The organization
was founded in 2000 London. It is primarily aimed at young adults. It is a type online retailer and
their website sell over 850 brands as well as its own range of clothing, accessories. Within 12
years, it grows from 2-people enterprise to firm with 1000 employees (Bacile, Muñoz and
Laverie, 2019). This organization was listed as an alternative investment market of London
stock.
ASOS has tried to adapt the latest fashion trends change every season. ASOS fashion is an
economic scope which mainly covered all kind of product of women, men’s wear. Similarly,
various fashion brands may target for different age group and price range (Laverie, Humphrey
and Freberg, 2020). ASOS and other large online fashion which may have some negotiation
power. It is to be consider as source of clothing supplier in global marketplace. ASOS can be
negotiate the best contract with email or another delivery service.
Identify the opportunities and challenges faced in the current economic environment
In recently, it is driving the growth opportunity of fashion retailer which is rapidly
increasing the demand in the economic environment. It may have experience with both online
platform and brand for increasing the capabilities. In 2013, it has identified that increased the
trend of electronic transaction which forms 56% of banking transaction as compare with 43% of
paper (Guoan and Xue, 2019). With emerging the secure transaction so that many customers use
online method to purchase items. Online retail enterprise enhance the security and easiness in
doing the transaction.
Another way, it can be identified the challenge related the logistics which play an
important role in determining operational process. But it has increased the delivery and priority
service, consider as a biggest challenge for online fashion retailer (Laverie, Humphrey and
Freberg, 2020). The price of logistics is high because of inadequate infrastructure. Furthermore,
Poor internet connectivity is a biggest problem that can affects on the prospects of online fashion
retailer
Explain how digital marketing is used in the fashion retail sector
Digital marketing is term that can be defined as process for established the connection with
buyers, seller electronically through website, social networks and email. ASOS online fashion
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retailer is also used the digital technology for increasing their brand awareness among existing
consumers.
Digital technology provide facilities many to many communication. Especially when it use
to promote the product as well as service in timely (Heinze, Fletcher and Cruz, 2020). The online
fashion has emerged due to digital marketing with focused on the branding, innovative usage that
embedded with fashion trends. Nowadays, digital media always support for sharing the
information related product to customer by using website, email. In this way, it can understand
that digital technology has evaluated for turning point in fashion industry whereas in current
enterprise world. In order to change the consumer behaviour towards the online fashion sector.
SECTOR REVIEW
Analysis of the best practice in the online fashion retail sector
As digital transformation takes over, various physical stores are particularly susceptible
to the retail enterprise. A fashion retailer might have goals in regards of increasing revenue or
sales by accepting order through online medium. In this way, it is getting more consumers to
come into traditional bricks and mortar store for reducing the cost of customer service. It allows
for client to view order tracking detailed through website (Kingsnorth, 2019). As per survey, it
has found that online sales reach to $20.3 billion in 2015. However, for just over 7% of total
apparel sales. Furthermore, there are different type of best practices to give right direction of
online fashion retailer. In order to help reach towards growth and development.
Omni-channel retailing: it is consider the best practice for online fashion retailer. It can be
simple as user-friendly store locator or sophisticated as click and reserve process. This channel is
providing the better opportunities for retailer in term of sales and marketing (Laverie, Humphrey
and Freberg, 2020). Therefore, it is directly integrated with the customer to identify their full-
integrated shopping experience.
Store/virtual appearance: It is the best practice in-store appearance which require to stand
out from its surroundings, catches existing consumer eyes and also attracts them to cross streets.
Nowadays, online fashion retailer choose the best logos, interactive design layout, and pattern,
structure that always attracts more and more customers (Laverie, Humphrey and Freberg, 2020).
In this way, it will require to regular change the style of website so that they can attracts and also
check the availability of product as well as services.
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Taking feedback from client side: It is the most common practices that help for encouraging
more customer whereas they can share their own experience. There are many customer purchase
product before checking the response of other client. Afterwards, they can move forwards. In this
way, it is important for evolving business success through experience of customers (Saura-Palos,
Sanchez and Correia, 2019). Sometimes, online fashion industry use feedback as strategy that
help for identifying the need and requirement of customer. It is great way to gain insight into
better ways. It could be make change for purpose of improvement.
Use social to sell: it is another best practice that consider social media which become an
integral part of customer lives. If they do not have the presence of fashion retailer on channel so
that business will not achieve success (Zhu and Gao, 2019). Especially, when fashion retailer
that need to require for used social media channel which providing facilities to visualize thing in
beautiful manner. In order to represent the image on website so that it can easily build a
repository of products. On the other hand, it also added more description to different photos,
along with appropriate link. There are various social media channel that have launched in
marketplace. They have an ability for user to sell product directly through online platform. It is
mainly include twitter, Instagram and Pinterest.
Accept payment methods: Nowadays, it have come and gone the cash on delivery service.
Online fashion retailer has adopted the mobile payment transaction which are affordable for
increasing great opportunities (Laverie, Humphrey and Freberg, 2020). In order to make sale
revenue generation. Many potential customer will be used the online transaction because
sometimes, it is not possible to visit the location and then purchase item. In this way, fashion
retailer use safe and secure payment method which provided the better facilities. Therefore, it
can be maintained the good relationship between customer and management.
Strategic Approach
Strategic approach means a clear and concise plan which includes answers for questions
like why, what, when, how and where. Strategic approach towards any action the firm took they
include why they are doing this and answer for this is the objectives, what is the plan exactly
what firm will do to achieve its objectives (Kingsnorth, 2019). When, how and where includes
the elements of plan while its implementation.
Here digital marketing strategy for Asos is being discussed. The aim of digital marketing
strategy is to improve acquisition and retention of the donor in a cost effective manner. This
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includes Asos want to increase its customers and donors and also want to improve their retention.
This requires them to take action and develop strategies for digital marketing. Some of the
actions which can be taken by Asos to do so are;
Donor acquisition is one of the most important in the business functions as this allows business
to survive and grow and retention ensures sustainability of the business. The stages of acquisition
and retention this starts from awareness of the customers, consideration of the customers and
later purchasing by the customers. Experience while purchasing decides and affect whether the
customer remain loyal to the company or not.
Digital marketing can help Asos in all these three steps. Asos can create awareness through
digital marketing. Digital marketing involves promotion through social media marketing and
digital platforms like internet and mobile (Vieira and et.al., 2019). Consideration requires some
extra efforts Asos has to design and develop its content in such manner that it can attract
attention of the customers. Later these promotional advertisements on social media and digital
media also come with link that will take the visitor to the site of Asos where they can look for the
more options. As they look for more options this increases the probability of the purchasing by
the visitor. This will turn the visitor of the advertisement and promotion into customer of the
Asos. The experience that Asos gives to the customers while their purchasing in terms of cost,
utility of the website and application, variety and options in products will determine whether the
customer will purchase again from Asos or not. In case of online firms it is very important that
they are able to favorable experience in terms of utility of the site and application and also
products and prices which are available through the website.
This way Asos will be able to create its customers and remain them loyal towards the Asos.
Digital marketing strategy for Asos is
Collection of Data- This is important as Asos already employing digital marketing this will
require Asos to collect data and information regarding where they are right now (Mandal and
Joshi, N., 2017). This is important to know before they decide where they want to be.
Where Asos want to be- They want to improve their customer acquisition and retention regarding
this they also want to keep their price low.
Later Asos will require to identify digital marketing strategy and what strategy they should adopt
so that they can improve their customer acquisition and retention.
Strategies which can be applied by Asos are
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 Retargeting visitors on social media to increase conversion rate. Conversion rate means
those who watch the ad and later purchased from Asos.
 Run a promotion advertisement during vacation an when people can give their due
attention for the advertisement and when buyers are more aware.
 Work with influencers and influencer marketing.
 Ensuring that email receiver follow Asos on their Instagram.
 Launching a blog and keeping up with it. For Asos the blog can be fashion blog in which
it can include details and information about latest fashion and various other details which
attract attention of different segments of customers.
Among all these strategies which has been discussed earlier one of the best strategy which can be
applied by Asos is influencer marketing (Ozuem and Azemi, 2017). This is one of the most
effective form through which Asos can attract customers to buy the products of the Asos.
Influencer Marketing
Influencer marketing is a based on the influencers. Influencers are those people who can
influence thoughts and perceptions of other people. They can influence and encourage their
followers to act the way they are doing. These are celebrities and other influencing figures of the
society.
Influencer marketing is based on old and new approach of marketing. This involves old approach
of celebrity endorsement and new approach of social and digital media marketing and in content
driven marketing. This is based on collaboration in brand and influencers and they develop and
rum marketing campaign for the businesses. But this is not only about celebrities they can be but
there are various people who are not celebrity offline. This significantly employs those who are
celebrities and are recognised on their online existence and can influence their followers through
their act. Influencer in this case is someone who can affect purchasing decision of their followers
based on their authority, knowledge, position and relationship with audience. In this context it
can be considered that a fashion blogger can affect decision of their followers to buy from Asos.
The reason behind this is that fashion blogger do possess better knowledge of the fashion than
any other individual (Woods, 2016). Asos can also employ this digital marketing strategy.
Asos is a multinational brand and this is why it can employ multinational celebrity and bloggers
who can influence decision of many people and whose followings are large in number.
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This strategy can be adopted by Asos but will require efforts in form of selection of those people
who can influence people in their country and region. Asos focuses on young adults in its
products and this is why it can select as new age celebrities for its digital marketing as
influencers. Presently young age people are significantly affected by celebrities and in terms of
fashion young adults can be effectively influenced. This requires Asos to identify those people in
their country and region who has large followings and other than celebrities those people who
can influence the fashion perception of the people in a country.
This should be individualised as there are possibilities that celebrity and influencer who can
affect and influence people and potential customers cannot affect customers at other country.
This is because of different taste and cultural difference in the people.
This is also cost effective as this is effective in influencing and attracting people to buy from
Asos and at the same time cost in this is also limited to which is required to pay the influencers.
This is capability of the Asos to negotiate to their best which can add effectiveness in terms of
cost. So this strategy is both effective to attract and retain the customers.
Continuing with the influencer marketing can also improve retention of the customers with Asos.
This also gives a feeling and creates a sense of reality than celebrity endorsement (Abratt, 2019).
This creates sense that this brand is actually used by particular celebrity and then their followers
also buy products from the brand. This works as a social proof. Some of the benefits associated
with this are;
This is not pushy advertisements- This is not paid commercial advertisement and this is its
biggest benefit. In this material of the marketing is very generic which is does not seem like
promotional content yet it is promotional content.
Saves time- Influencer marketing involves that influencers come up with their content and
prepare everything by themselves as they can influence their followers. They can come up with a
picture as they usually post on social media but this time it features clothes of Asos.
Does not need big Budget- This does not requires big budget for marketing and running
marketing campaign (Lagrée and et.al., 2018). Paying the influencer is the limit of the budget
and negotiation skills in this can improve the overall budget and allow cost advantage to the
Asos.
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These are the benefits of influential marketing strategy which Asos can apply in their digital
marketing to improve their acquisition and retention of customers. But while doing so there are
some considerations which are;
 Takes time to set up and does not give quick results, this means that Asos should give this
time and monitor timely.
 Careful consideration to the approach of influential marketing and this includes
 Being organized and putting the overall strategy for marketing together.
 Careful selection of influencers, influencers should not only be selected on the basis of
their followers and popularity. They can be having large followers but necessarily do not
influence perception and decision of the people and their followers.
 Approach while selection of influencer should not be generalized and should also not use
different influencers. In this Asos need to select one influencer wisely and follow up with
that for a reasonable time so that it can show results (Olsen and Sandholmen, 2019). The
influencer marketing does not provide quick results and this is why frequently changing
influencer might negatively affect the image and purpose for marketing.
There are different marketing technology can be used by the organization to improve their
business processes to generate higher benefits from market place. Some or the common
processes that can be used by the organization are related to the donor acquisition and retention.
Most common strategies that can be used by the organization. Some of the most common
approaches that can be used by the organization are-
Understand Donors
This is important for the organization to develop more knowledge about the donors of
organization to meet their needs in order to improve their relationship with donors. Organization
can understand the donors in demographic way as per their demographic location. Donor
preferences can be analyzed to meet their demands in order to keep them loyal to the
organization. There are different factors can be analyzed by the organization to known the
customer interest and behavior to maintain their motivation level high to get better result with
organization and donor relationship.
Donor Segmentation
Donor segmentation is one of the most effective process that can be used by the organization
to reduce the donor turnover and meet the requirements of the donor to run organization
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successfully. There are different processes can be used by the organization to learn more about
the donors. There are different processes can be used by the organization to effective perform
segmentation for organization. For example organization can consider various aspects like
acquirement process, gift size, and engagement level, frequency of giving, preferred ways to give
and specific communication process to effectively perform segmentation.
Build Better Relationship Donors
There are different processes and methods can be used by the organization to develop
effective relationship with donors to maintain them with organization for long term.
Set Goals
Organization can use various processes to improve the donor acquisition and retention.
By setting goals organization can develop effective relationship with employees to get better
result with donors of company. Setting goals can help the organization to follow specific process
to meet requirements of organization related to donors of company.
Measure and Evaluate
For the donors acquisition and Retention Company can be improved by the organization
to effectively manage the relationship with donors. Benchmarking and standardization can be
used by the organization to develop effective relationship with donors. Organization can use
various key performance indicators in order to improve the standards of e marketing processes of
Asos.
Continuous Improvement Process
Continuous improvement processes can be used by the organization to manage the
performance in market place. This is one of the best approach that can be used by the
organization to improve the performance of organization in E marketing process. Retail
organization can continuously improve basic standard of the organization to get better responses
with organizational donors.
Leading Social Media Marketing Process
Organization can use various process to improve their performance in market place. Asos
organization can use various approaches can be used by the organization to develop effective
social media marketing processes to lead the social marketing process. By this process
organization can develop effective relationship with donors (Mooney and Slobodian, 2016). This
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is how organization can retain their existing donors and acquisition of new donors for
organization.
Master the E-mail
This is one of the best effective process to maintain effective communication process to
develop relationship with donors. Mastering in the e mailing process can be learned by the
organization to develop effective relationship with donor with communication process.
Developing Brand
There are different processes can be used by the organization to gain effective result with
marketing process of organization. There are different processes can be used by the organization
to develop effective brand image in market place. Developing brand can help the organization to
make high positive impact on donors. This processes can be used by the organization to make
donors loyal to organization. This is how organization can use brand development process to
maintain effective relationship with customers. This is important for the organization make
proper market image in market place to develop better impact on donors to retain them for longer
time. This process also can help the organization to develop positive impact on target donors to
develop relationship with them. In this process organization can use e marketing process to
develop image of the organization in market place.
Fundraising Process
There are different processes can be used by the organization to develop effective relation
with peers for the fundraising process. This is considered as one of the best fundraising process
for organization. On the general process there is a specified process can be used by the
organization to ask for fund from various peers that are related to the organization in different
manner. This process can allow the organization to access to the pool of peers to raise fund for
the business operations of the organization and develop effective relationship with donors and
make relationship with new donors.
CONCLUSION
From above discussion, it concluded that fashion industry is an emerging sector which has
identified the short life cycle. It always changing their style, trends according to the requirement
of potential consumer. In today’s world, digital culture, online presence becomes the trends for
society and attracts more people towards product as well as services. Furthermore, it can be used
the digital marketing concept for purpose of promotions (Laverie, Humphrey and Freberg, 2020).
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Identifying the customer need and requirements where they can satisfy with the extensive offers,
discounts. In present digital era, Fashion industry is focused towards the process of creating,
delivering the client value in personalised manner. It also increased the internet penetration,
status concernity and access for global brands, trends through online medium. It became
worthless of staying until consumers are coming for visit the site and purchase items. These are
different medium which help for developing the connection between customer and manager. It
mainly involves website, mobile application and many more.
With transformation of transactional marketing that has to be established relationship with
digital technology (Kannan, 2017). In this way, it has gained more profit through marketplace.
Digital technology always support for fashion retailer to identify the appropriate set of skills,
behaviour and attitude towards digital environment.
The documentation has summarised about the online fashion retailer such as ASOS that
mainly used digital marketing concept for increasing the productivity and profitability in global
marketplace. In competitive environment, online fashion retailer is not just concern about the
best price but also consider credits card, PayPal facilities through online medium (Laverie,
Humphrey and Freberg, 2020). The online fashion retailer can be used the pricing strategy that
could provide advantage, benefits to reduce the price of online shop. Therefore, it has been
increasing the overall revenue and earnings as per share which kept growing in quickly. The
fashion retailer is never declining and always emerging. There is no single dominating player in
global marketplace.
Moreover, it has identified that online Fashion retailer ASOS is the fastest growing
organization in global marketplace. It has witnessed steady growth of 40% to 60% over the
years. In context of growth prospects, online enterprise that have identified opportunities and
challenges in the current economic environment (Laverie, Humphrey and Freberg, 2020). At last,
it has been discussed about the best practices in the online fashion retail while implementing the
digital marketing strategy to improve donor acquisition and retention cost effectively.
RECOMMENDATIONS
Digital marketing is one of the most common trend of business organization to perform various
marketing functions in market place. Organization like Asos can use various process to generate
higher profit from market place. some common processes that can be used by the business
organizations are- developing better information system infrastructure can hep the organization
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to improve their marketing operations and other operations that can help them to make proper
utilisation of digital technology. Digital marketing process also can be improved by organization
by utilising various platforms that are available on internet to get better response from market
place. Some technologies also can be used by the organization to develop positive impact on
target people. For example organization can use technologies like Search Engine Optimization
can be used by the company to improve the visibility of organization in market place. there are
different channels can be used social channels can be evaluated by organization to generate
better result with marketing operations (Chaffey and Ellis-Chadwick, 2019). Organization can
improve the content reach in order to generate effective result with effective digital marketing
process.
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