Cowen 5th Annual Future Of The Consumer Conference€¦ · Cowen 5th Annual Future Of The Consumer...
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John Veichmanis Chief Marketing Officer Cowen 5th Annual Future Of The Consumer Conference 2 nd April 2019
Transcript of Cowen 5th Annual Future Of The Consumer Conference€¦ · Cowen 5th Annual Future Of The Consumer...
John VeichmanisChief Marketing Officer
Cowen 5th Annual Future Of The Consumer Conference2nd April 2019
$1.4bn 2018 GMV $619 2018 AOV
1.4m Active Consumers
1,000+ Supply Partners
1 Consumer is deemed to be active if they made a purchase on the Farfetch Marketplace within the last 12-month period.Information on this slide as of 31 December 2018
1
Source: Company Data > Brand Tracker, July 2017. Base: All participants (n=2029)
L U X U R Y C O N S U M E R S
Female : Male
70 : 30
Annual Household Income
$105,000
Most expensive recent purchase
$1,500
F A R F E T C H C U S T O M E R S
Female : Male
64 : 36
Annual Household Income
$138,000
Most expensive recent purchase
$2,100
5 t h A n n u a l F u t u r e O f T h e C o n s u m e r C o n f e r e n c e
Average age
39
Average age
36
4
Luxury has been an online laggard but a customer revolution is driving rapid change
5 t h A n n u a l F u t u r e O f T h e C o n s u m e r C o n f e r e n c e
The shift from offline to online …and the customer revolution that’s driving it
From To
Informed and inspired
Individual and confident
Discovering the world
EDIT DISCOVERY
Internet enabled transformation
Growth
Time
We arehere
Infancy Expansion Maturity
Online
50%
31%
27%
27%
26%
24%
23%
18%
17%
16%
15%
14%
7%
Browsing online store
Collections on brands websites
Photos fromfashion week
Browsing in store
Celebrities’ styles
Printed magazines
Articles and postsby bloggers
Shop-the-look/ curated content
Emails from online retailers
Friends and family
Digital magazines
Editorial content
Videos bybloggers
Source: Bain & co Luxury Study 2017 Elaboration on Experts interviews; Lit. Research Consumers Survey (2016) n=1856
Sources of Style Inspiration
Luxury consumers
estimate they spend between
1 and 4 hoursresearching fashion every day
70%of luxury purchases are
influenced by online
Browsing online store
Collections on brands websites Photos
from fashion week
Browsing in store
Celebrities’ style
Printed magazines
Article and posts by bloggers
Shop-the-look/ curated content
Emails from online retailers
Friends and family
Digital magazines
Editorial content
Videos by bloggers
5 t h A n n u a l F u t u r e O f T h e C o n s u m e r C o n f e r e n c e
Source: Company Data > Brand Tracker, July 2017. Base: All participants (n=2029)
Important Factors when shopping for Luxury Fashion online (Global)
13%
14%
16%
18%
19%
Cost of delivery
Ease of returns/ exchanges
Website look andfeel
Ease of navigation
SizingInformation
Informative contenton fashion/luxury
Information on products(materials, care, craftsmanship)
Competitivepricing
Range of brands
5 t h A n n u a l F u t u r e O f T h e C o n s u m e r C o n f e r e n c e
29%
32%
43%
57%
Source: Company Data > Brand Tracker, July 2017. Base: All participants (n=2029)
5 t h A n n u a l F u t u r e O f T h e C o n s u m e r C o n f e r e n c e
Changing Media Consumption
Content & Ad Personalization
Drive awareness of our key differentiators
Tell our brand story through content and inspirational experiences
Always be there at the time of purchase
Provide our existing customers with enhanced digital services and rewards
See Think CareDo
Brand Performance
Audience Targeting
5 t h A n n u a l F u t u r e O f T h e C o n s u m e r C o n f e r e n c e
Changing Media Consumption
Content & Ad Personalization
Drive awareness of our key differentiators
Tell our brand story through content and inspirational experiences
Always be there at the time of purchase
Provide our existing customers with enhanced digital services and rewards
See Think CareDo
Brand Performance
Audience Targeting
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People | Places | Product
Boutiques
Brands
Influencers
Customers
Advocates
Content creatorsselected for minimum follower overlap and hence maximum
organic reach
Content published on our own social handles
Leverage our Audience Management capabilities
Bring our proposition to life though people
Create a broad range of entry points into our product
catalogue so visitors experience our proposition.
Paid media budget used to reach audiences we can’t reach
organically
Farfetch
1
2
3
4
5
6
5 t h A n n u a l F u t u r e O f T h e C o n s u m e r C o n f e r e n c e
Content Creation Organic Distribution Paid Distribution
Content Creators
Push FF Paid Social FF Organic Social FF Stories Email (CRM) Homepage Edit/Set/PLP/PDP Tier 1 Profile
App
Influencers Own Social Influencers Own Stories
5 t h A n n u a l F u t u r e O f T h e C o n s u m e r C o n f e r e n c e
5 t h A n n u a l F u t u r e O f T h e C o n s u m e r C o n f e r e n c e
5 t h A n n u a l F u t u r e O f T h e C o n s u m e r C o n f e r e n c e
Data DrivenPredictions
5bn+interactions
10x moreproducts*
Brand Engagement Data Insights Consumer Acquisition
Product Breadth
(See & Think) (Do & Care)
Content & Ad Engagement
* As of May 31, 2018 Farfetch marketplace had 10x more SKUs than the closest competitor
See Think CareDo
LTV / CAC after 6
months
LTV / CAC after 12
months
LTV / CAC after 24
months
2015 Cohort
2016 Cohort
2017 Cohort
20
30
40
50
60
70
80
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
2015 2016 2017 2018
Source: Farfetch internal dataNote: Consumer Acquisition Cost (CAC)
New Consumers and CAC ($) (2015-18)Lifetime value of a consumer to consumer acquisition cost ratios
1.42 x
1.81 x
2.71 x
2.04 x
1.53 x
1.77 x
New Consumers CAC
5 t h A n n u a l F u t u r e O f T h e C o n s u m e r C o n f e r e n c e
Direct Email Organic Search Referral
Paid Search Affiliates Display
Despite a significant increase in traffic, we've maintained a well balanced media mix
49%Low cost channels
51%Paid channels
2015 2016 2017 2018
Cost of Repeat Order – Media
The cost of generating orders fromexisting customers continues to decline
5 t h A n n u a l F u t u r e O f T h e C o n s u m e r C o n f e r e n c e
Source: Farfetch internal data > Jan – Dec 2018
See Think CareDo
Brand Performance
5 t h A n n u a l F u t u r e O f T h e C o n s u m e r C o n f e r e n c e
Drive awareness Brand Story Telling Increase sales Increase frequency
Media Solutions Product Suite
Native Display Bespoke on-site destinations
Rich media experiences
Sponsored product network
Social re-targeting
Dedicated email
Push notifications
Audience Targeting
MEDIA SOLUTIONS
The world of luxury is changing quickly, driven by changing media consumption and a desire to discover
5 t h A n n u a l F u t u r e O f T h e C o n s u m e r C o n f e r e n c e
We have a unique proposition that’s
hugely compelling with the new luxury
audience
We are approaching a new marketing frontier by combining art and science to build a global luxury brand
We have a unique data advantage that
enables us to deliver consistent and
predictable results
Platinum
Gold
Silver
Bronze
Offer
• Dedicated App
• Increased media
investment to enhance
share of voice
• First look New In
• First look Sale
• Fashion Concierge
• Influencer
recommendations
• Early access to New In
• Early access to Sale
• App Distribution
• Expanded channel mix-
WeChat, Line, SMS,
Push, WhatsApp,
Direct Mail
• Farfetch Access Points
• Loyalty partner benefit
swaps
• Express delivery
• Personal stylist
• Dedicated customer
service line
• Extended returns
• Free shipping
• Accelerated tier
migration for HVPs
• Customer service line
Channel Product Range Price and Benefits Service
Operationalise and scale capability to identify High Value Prospects
Databasematching with3rd partydatasets
BIN (Bank ID Number)
identificationat checkout
Databaseenrichment
Identify
Prot
ect
and
Reta
inD
rive
Fre
que
ncy
2 3 4 51
Private
Client
5 t h A n n u a l F u t u r e O f T h e C o n s u m e r C o n f e r e n c e
