Spring 2019 - Inside Outdoor Magazine

Inside Outdoor | SPRING 2019 8 Numbers Worth Noting DATA POINTS 80-90% Percent of login attempts to retailer e-com- merce sites that are hackers using stolen data, according to cybersecurity firm Shape Security, the highest percentage of any sector. Mean- while, KPMG found that 19% of consumers would completely stop shopping at a retailer after a breach, and 33% would take a break from shopping there for an extended period. Outdoor Retail MarketingMix Outdoor retailers continue to use a diverse and fragmented mix of marketing tactics to attract consumers, shows a survey by Merit Mile, but a few notable shifts expected in 2019 include a sig- nificant decline in the utilization of mobile apps, a continued emphasis on email campaigns, the growing use of YouTube and a positive bump in the utilization of print advertising. Durability Equals Sustainability Just in case you needed a reminder of the negative global impacts of fast and cheap fashion, consider the precipitous decline in clothing utilization since 2000 as documented by Euromonitor International Apparel & Footwear Online Shoppers Expect Visuals Online shoppers have increasingly high expectations for retailers’ image and video content on online product pages, and a lack thereof can be a deal breaker. According to a January 2019 survey from prod- uct experience management platform Salsify, U.S. digital shoppers expect an average of about six images and three videos when looking at a product on Amazon or another retailer. Source: Kampgrounds of America; Cairn Consulting Group (Percent of respondents) Source: Coresight Research; Celect Types of Products to Buy Decisions on Product Replenishment Within Season Allocating Stock to Individual Stores/Distribution Centers/Channels Not Seeing Advanced Analytics as Helpful Deciding Where to Fulfill Online Orders From 34.0% 30.0% 21.0% 14.0% 12.5% Source: Merit Mile Print Advertising Br adcast Advertising Email Campaigns Social Media Advertising Direct Mail Mobile Apps Mobile SMS YouTube PR/Editorial 13.2% 10.5% 13.2% 15.8% 39.5% 26.3% 47.4% 47.4% 28.9% 28.9% 15.8% 23.7% 13.2% 13.2% 23.7% 18.4% 5.3% 5.3% 2018 2019 17% 18% 30% 19% 22% 26% 19% 21% 26% Overall Millennials Gen Xers B What percentage of your sour come fro nearshoring in 201 Likelihood that disruption will o (Percent of respondents) Source: McKinsey & Co; Sourcing Journal Source: McKinsey & Co. 0-5% 3 18 15 15 5 18 4 14 3 4 >5-10% >10-20% >20-30% >30-40% >40-50% >50% 2018 Winning in fashion will mean that a substan assortment will need to be a fast-track fashi possible only through nearshoring or air frei 1. Step-change in nearshoring for speed 2. Asia capacity shortage 3. Diminishing of Asian LCC status 4. Trade agreement impact 5. Emerging nearshore manufacturing clusters 6. Fabric production follows CMT re-location 7. Backward integration of brands Demand surge in Asia and resulting capacit fast-fashion companies to move substantial production to new regions Labor costs in Asia will continue to increase the world, Asia will no longer have the low-c compared to e.g. Eastern Europe or Central Political turmoil and resulting changes in tra change the economic equation off-shore an At-scale and highly capable apparel manufa emerge in nearshore markets to Europe and Fabric production will move nearshore, follo move to enable integrated regional supply c Apparel brands and retailers will backward i (or co-invest in) factories as a way to drive n and secure capacity Highly likely Somewhat likely Somewh Growth in Clothing Sales and Decline in Utilization Source: Euromonitor; World Bank 100 2000 2005 2010 2015 110 120 130 140 150 160 170 180 190 200 -50bn units (2000) >100bn units (2015) 2x World GDP INDEX 100 IN 2000 NUMBER OF TIMES ITEM IS WORN Clothing Sales Clothing Utilization Average Number of Product Images and Videos U.S. Digital Shoppers Expect to See on E-commerce Sites Source: Salsify 18-24 25-34 35-44 45-54 55-64 65+ 8 4 5 8 5 5 6 6 2 2 2 2 Images Videos 43.0% 36.0% 8.0% t Full Price, 15.0% 18.0% 16.5% 12.5% Source: Merit Mile Print Advertising Broadcast Advertising Email Campaigns Social Media Advertising Direct Mail Mobile Apps Mobile SMS YouTube PR/Editorial 13.2% 10.5% 13.2% 15.8% 39.5% 26.3% 47.4% 47.4% 28.9% 28.9% 15.8% 23.7% 13.2% 13.2% 23.7% 18.4% 5.3% 5.3% 2018 2019 Source: Euromonit r; Wo ld Bank 100 2000 2005 2010 110 120 130 140 150 160 170 180 190 200 -50bn units (2000) 2x World GDP Clothing Sales Clothing Utilization