A new enemy has risen: E-commrce

ERROR 404. WOOPS. Looks like this page doesn´t exist! It´s being difficult to adapt to the new era, but can this harm brands? Definitely, YES!

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A new wave of online fashion retailers has arisen taking the throne which one day belonged to fast fashion brands such as Zara or H&M. According to the Euromonitor, Zara online sales account to 5%, H&M to 4% and ASOS… well ASOS reached $1.87 billion last year. It seems surprisingly how slow fast fashion brands have been catching up the e-commerce, specially, when their main target market is youngness, and even more astonishing that they have let brands such as Asos to leave them in their wake.

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However, it gets more understandable, when realizing that the fear they had was that online store could go broke the physical shops, in which undoubtedly, they have invested a lot. Not only that, but launching an existence brand online, is different from launching a new one. Human Capital could be highly affected if e-commerce eats their shops, and so does the brand image.

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In addition, the online fashion players have a great advantage, the prices of their products vary depending on the demand. Therefore, they can adjust to the needs or willingness of their consumers, which lead into high quality of products with affordable prices. However, physical shops are not able to do that, not only they should maintain prices, but they should add the costs of delivery, a price that some target do not want to pay. Additionally, a retailer shop cycle takes up to five weeks to nine months, whereas this new online brands produce merchandise in to two to four weeks.   

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So, we are in a situation in which young target market wants:

• Competitive prices

• A feel of buying a great deal

• Variety

• An opportunity to compare

So, are traditional shops able to fit into their requisites without going nuts?