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Italian Fashion Brands Bank on Digital Growth Global digital sales are expected to reach the two billion people milestone in 2018, according to Netcomm. MILAN — Omnichannel is still a thing, as Italian fashion brands continue to bank on online and brick-and-mortar retail strategies to pursue a balanced growth trajectory.This was the main takeaway from the latest study issued by Netcomm, the Italian digital trade consortium, which was unveiled Tuesday, here during the annual Netcomm Focus Fashion & Lifestyle conference organized in partnership with Fashion magazine.According to the agency, the number of global e-shoppers will reach the milestone of two billion people this year, up 11 percent compared to 2017. In terms of fashion and lifestyle product purchases, the study estimated online sales to reach 435 million euros in 2018, up 15 percent compared to the previous year.“The market is expecting a shift in the business models due to the online [revolution],” said Roberto Liscia, Netcomm president and executive board member of Ecommerce Europe. Presenting the study, Lisca highlighted that China and the U.S. represent the main drivers, accounting for 54 percent and 28 percent of total online sales, respectively.Home delivery, loyalty programs and customization are pivotal to engage these new digital-savvy customers, according to the study, which highlighted that customer relationship management, an omnichannel integration and investment in the IT sector are key assets to drive the digital growth.“Each company’s marketing strategy should take into account the brand’s positioning and its best fitting blueprints,” insisted Lisca citing click and collect, self-selection and social engagement, as among the most required tools. Google Italia’s industry head of retail and fashion Alessandra Domizi agreed, noting that “we are living in the age of assistance, [a concept] that should be implemented into retail,” she said. Along with Google’s own voice assistant Google Home, the executive pointed to a number of projects backed by the company including Zalando’s Gift Finder Assistance service, Gap in-store augmented reality experience and Ralph Lauren’s digital dressing room.Fashion companies are finding their way to propel their digital penetration with the aim to increase the turnover from online sales. Roberto Serafini, general director of L'Oréal Luxe Italia, said the company is “investing a lot to target our goal of reaching 20 percent of global online sales by 2020, with 50 percent of our customers online and 100 percent of our brands’ portfolio available,” adding that according to internal data women who normally use makeup related mobile apps are inclined to make beauty purchases online 2.7 times more compared to those who don’t.According to Serafini banking on digital growth requires investment in different fields including h.r., with L’Oréal “bridging the traditional marketing towards the 3.0 phase, implementing more than ten digital-related job titles.” L’Autre Chose recently appointed chief executive officer Alice Carli agreed, noting that “business and innovation are made by the people working within the company and the goal today is to be able to set the internal communication as well as the employees training programs as fast as a WhatsApp [message].”“The real challenge is to find a balance between keeping the historical value of Made in Italy but in a contemporary landscape,” Carli added. Production-wise, many executives at the conference saw the digital revolution as an opportunity. To wit Roberta Benaglia, Style Capital founding partner and ceo, contended “the Italian fashion pipeline can be an advantage from an operational point of view, allowing you to produce let’s say only 100 pieces of a custom-made product, with which you normally reach a 90 to 95 percent sell-out rate before the sales period start.”As reported, during the conference Benaglia said Style Capital has acquired a 30 percent stake in California-based denim brand Re/Done. The value of the operation was not disclosed.Although online sales are a growing channel, 63 percent of purchases are still made at brick-and-mortar stores, according to the Newcomm study.
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