Fashion Marketing news: A slew of studies, data, and articles appear to point out the growing success associated with niche sites, especially in the fashion industry. Hype or Fact? How can big online retailers and local fashion stores take advantage of internet niches?
I like reading regarding pragmatic ideas to boost online product sales of fashion goods, from attire to accessories. I think that too much time is wasted in theorizing about internet marketing, and not acting about it.
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Yet, I am going to talk about hard-core statisical research and hype. Why?
Because I discovered in this month’s INC. magazine an article about niche marketing that made me connect together a lot of issues dealing with local apparel stores as well as huge online fashion retailers.
Make money online by not carrying best-sellers
First, the article titled “A world without bestsellers” dabbles with buying patterns particular to internet consumers.
These styles make up the Long Tail. You may or you may not know about it. For a concise explanation, go the Long End page on Wikipedia. Let’s just say that consumers can find and buy on the internet products that a regular store could hardly carry. For instance, 40% of Amazon . com. com’s book sales reportedly consist in unknown titles that your normal Barnes and Noble cannot afford to carry in the bookstore next door.
Exactly the same seem to apply to fashion goods. For example, in the INC. article, Zappos’ Tony Hsieh says that:
“Today the business sells more than three million products across 1, 000 brands. The very best 20 percent of products are the cause of half of revenue, the bottom 80 percent, the other half. ”
So , with Zappos, the 20 best-selling products represent only 50% of the income. This is a far-cry from the usual 80/20 rule that usually applies offline, when the top 20 best-sellers make up 80 percent of the revenues. The 80/20 guideline is drawn from the works associated with economist Pareto.
Online sales associated with fashion goods make Pareto Rule redundant
This is the gist of a Feb 2007 study called “Goodbye Pareto Principle, Hello Long Tail: The Effect of Search Costs on the Concentration of Product Sales. ” It was written by researchers at the Sloan School associated with Management at the MIT. Better, this particular study is based on “several years of sales data at a private-label women’s clothing company that offered the same merchandise through its catalog and its Web store. ”
Fashion goods are really at the forefront of this trend. Consider all the sites of the specialty sites that have sprung up, from sites selling discontinued lines of products to sites selling only to a sub-demographic. Buyers will turn to the internet for hard-to-find glasses or to get styles that regular retailers would certainly deem too original to carry.
A company called Niche Retail is specialized in doing just that. The company says which they actually avoid carrying best-sellers, since big retailers can usually have the ability to kill the business by discounting probably the most sought-after items. By the way, Niche Retail’s logo reprents the Long End graph.
Style is a personal matter. Fashion professionals did not wait for the Long Tail theory to release niche product lines. But the internet does offer interesting further niche opportunities:
: established brands and big online stores can find relevant niche sites for some of their product lines
– local fashion stores are indeed niches themselves; they can use the internet to get more exposure
Big manufacturers and retailers going after niche consumers
This very site spends time presenting you new fashion weblogs, new fashion sites, and brand new fashion communities (see Fashion second . 0). Because fashion can get really personal, it has always been a good conversation topic. Now, the internet allows you to turn into a fashion critique in a snap. Big fashion actors can go after these types of niche sites to get their attention.