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In this day and age, a mobile phone can do more than making a phone call; it records the time, takes pictures, orders meals and even measures your heart rate. Who needs a watch these days?

You may be surprised to learn that even though 81.4% of Thais own a mobile phone, many still wear wrist watches.

Mobile phone user penetration in Thailand; eMarketer.com

What do Thais Look for when Buying a Wrist Watch?

Out of the 877 Thai respondents, 94.9% wore a watch and more than half (56.0%) owned three watches or more. Data from the ecommerceIQ Wrist Watch Survey Thailand 2018 indicated that watches remain a necessary accessory among Thai consumers with demand still high despite a large number of smartphone users. Statista reported a total of 25.75 million smartphone users in Thailand but the days of the wristwatch are not yet over.

Apart from the obvious reasons to tell the time (62.5%), 13.5% also wore a wristwatch as an accessory. Male respondents especially mentioned that wearing watches was the easiest and classiest way to look good. Around 8.6% cited that wearing a watch reflected their status and style and helped to boost their confidence.

For this reason, design was naturally the most important factor that Thais considered when buying a wristwatch, followed by price and brand name. Brand name also reflected status and personal style. For example, Rolex is still highly regarded as a prestigious timepiece brand in Thailand. Wearing a Rolex advertises high income and social status.

Price, naturally, is another high-ranking factor. Watches are deemed as expensive accessories and not something to be bought on an impulse. Thais only buy new watches every few years (58.7%). Most respondents indicated that they were comfortable to spend around 1,000-30,000 baht on a wristwatch.

Factors that Thai respondents look for when buying a watch; ecommerceIQ Wrist Watch Survey Thailand 2018

The top three watch brands preferred by Thai respondents were Seiko (25.6%), Casio (21.6%), and Omega and Rolex (10.9%).  What do we learn from this ranking?

  • Seiko is a Japanese company that revolutionized the industry and is known for its long history of watchmaking. Prices range from 5,000 to 30,000 baht and the brand is popular among 20K-50K baht income earners.
  • Casio offers a diverse product assortment and brands including G-SHOCK and Baby G. Casio are known for their affordable but attractive designs.
  • Rolex and Omega are popular among consumers aged 40 and above. These two brands are preferred by the older generation, while youngsters opt for IWC or Tag Heuer as luxury timepieces.
  • Daniel Wellington, is a hipster brand that rose to popularity fast and won the hearts of the younger generation. Up to 75% of respondents aged 18-25 wore this brand. Tag Heuer is also popular amongst the 31-40 age group.

When asked about the media channels they used for news and information about timepieces, 48% of the respondents stated that they received news from social media with 33.7% using brand websites.

In Thailand, 74% of the population are active social media users, as reported by ETDA 2017. Thus, it does not come as a surprise that social media was the main channel respondents used for news concerning watches. Brand websites offer more genuine and trustworthy news about the brand itself.

Media channels that Thais use for news about wrist watches; ecommerceIQ Wrist Watch Survey Thailand 2018

Where do Thais Buy Wrist Watches?

Despite the heavy usage of the Internet to consume news, 76.7% of Thais still buy wrist watches from offline stores. The most popular offline channel used by 55.5% of the Thai respondents was Central Department Store because of the store’s credibility.

Like most department stores in Thailand, Central Department has a dedicated section for wristwatch sales. Apart from their reliable reputation, buying a wrist watch from Central Department Store is very easy and convenient. Up to 19% of the respondents looked for convenience and a holistic service, especially regarding after-sales service when buying a watch. Every Central Department Store has a ‘Watch & Clock Clinic’ that offers after-sales service for watches bought from the store.

Watch & Clock Clinic at Central Department Store, Pinklao Branch

Only 23.3% of the respondents bought wrist watches online. Lazada received the highest scores in terms of an online sales channel where Thais buy watches. The second preferred option would be the brand website, due to its credibility.

The online channels Thai respondents choose to buy watches from; ecommerceIQ Wrist Watch Survey Thailand 2018.

 

Similar to other product categories, the top reason cited for opting for online channels was because of convenience; ecommerce saves time and is hassle-free. On the other hand, some Thai respondents refrained from buying wrist watches online due to a perceived lack of credibility in the sellers and/or marketplaces. Offering a warranty and after-sales service are also factors that some online sellers fail to provide.

Reasons why Thai respondents bought wrist watches from online channels; ecommerceIQ Wrist Watch Survey Thailand 2018

It is also interesting to note how wrist watches are listed by Lazada and Shopee websites as each has a slight difference. From our observations, watches are only found in the ‘watch and glasses’ category on Shopee, while Lazada lists watches under: Electronic accessories, women’s fashion, and men’s fashion. This provides users with more exposure to the products and hence higher conversion to sales.

On the Lazada website, users are able to see watches listed on the e-marketplace more frequently and in more sections than at Shopee. Lazada, watches can be found under Electronics as wearables and accessories, which is also categorized into male, female and child timepieces.

Shopee, on the other hand, only offers watches under the watches and glasses category, and does not categorize watches for different demographics like Lazada.

How Can Watch Brands Take Advantage?

Watches are deemed as a luxury item by Thais. More often than not they are bought as an investment. Thais look for credibility and confidence from the seller, as well as a warranty proving that the timepiece bought is authentic.

It is not enough to list your products on a marketplace and engage in advertising campaigns. Rather, brands should focus on establishing confidence among consumers. One way to ensure this is to be listed as an official seller on LazMall or Shopee Mall, as well as including a clear statement about warranty and after-sales service conditions.

For luxury timepiece manufacturers, an e-marketplace may not be the ideal strategy as it may conflict with the brand’s positioning. Luxury brands should focus on providing beyond-expectation services and ascertaining that information is clearly visible on their websites.

As watches are still mainly sold offline, now is the right time for brands to give omnichannel a try. Take Burberry for example. They created the Burberry Retail Theatre that streams live runway shows into a number of their stores worldwide and through their other online channels. In the Retail Theatres, customers can browse live streaming collections on iPads and purchase items online immediately.

Burberry’s Runway to Reality campaign allowing consumers to order items from the runway in real-time

However, high-end or mid-range Thai timepiece brands should not ignore the power of social media. Daniel Wellington sets a great example through owning its own social media game. The company reduced spending on traditional advertising and turned instead to social media to reach potential consumers through use of the hashtag #DanielWellington. This also leverages user-generated content (UGC) to engage its customers and drive brand loyalty.

An Instagram post was created with #DanielWellington as #DWPickoftheDay and #DWPickoftheMonth

By taking your brand digital, you are embracing an endless supply of consumer data. As Shadi Halliwell, the creative and marketing director of Harvey Nichols stated,

“Data is a conversation; the more data you have on someone, the more conversation you can have.”  

You might recognize a signature Burberry trench coat because of its distinctive check pattern.

When Burberry first came to life in London in 1856, CEO & founder Thomas Burberry was, at the time, only 21 years of age. The brand focused solely on outdoor attire in its early days but quickly established a reputation for quality and longevity.

In 1879, Burberry received a patent for its ‘gabardine’ fabric – a water-resistant, breathable material that it would use for trench coats. The company went from strength to strength, opening a store in the upscale Haymarket area of London in 1891, designing its signature equestrian knight logo in 1901, and supplying outdoor attire to South Pole expeditioners in 1911.

Burberry’s popularity skyrocketed after its trench coats were used by British infantry forces during the First World War. An outpour of patriotism boosted its brand identity with members of the public clamoring to buy the products after the end of the war.

Further validation came in the form of high profile celebrity endorsements by movie stars such as Humphrey Bogart in Casablanca, Audrey Hepburn in Breakfast at Tiffany’s, and Peter Sellers in Pink Panther.

The UK luxury brand is best known for its sharp coats and jackets but has also ventured out in designing shoes, scarves, bags, & other accessories. By the mid-1980s as a result of spreading itself too thin and chasing short-term profitability goals, the brand started to stagnate. What happened?

The makings of a crisis

The 70s and 80s were rewarding for Burberry in terms of its bottom line. It signed licensing agreements with many global manufacturers to design suits, trousers, shirts, and accessories and distributed them via independent retailers as well as its own stores. The effect of this expansion i.e. higher operating profits was felt well into the 1990s.

But the licensing partnerships also had an unintended effect: counterfeit products flooded markets across the world, particularly in Asia, causing price disparities that existed even in original products.

Western countries were subjected to higher rates and items were often rerouted back to markets; for example, cheaper bags in Asia were exported back to Europe resulting in a blow to its image.

Burberry had severely diluted the power of its brand by adopting a mass-market route. Once associated with list-A celebrities and daring thrill seekers, Burberry had rapidly lost its aura of glitz and glam.

Shockingly, the elitist brand was now equated with thuggery, chicanery, and hooliganism; adopted en-masse by ‘Chavs’ – a pejorative British term used to describe degenerates and lowlifes. Bouncers would turn away people wearing Burberry outfits as it was assumed they would cause trouble once inside.

Shudder.

Turnaround

“Burberry was not able to identify its target group of consumers because of its uneven distribution and licensing policies in different countries of operation,” says Arittra Basu, business development manager at Westin Hotels.

The long road to redemption started in the late 1990s after Burberry hired Rosie Marie Bravo to steer the ship. She immediately tried to stem the decline by reducing the company’s footprint in Asia, ending price disparities, and appointing a new creative head to reestablish the brand’s core values.

In 2006, Angela Ahrendts was appointed the new CEO and began a journey leading the company to reemerge as a force to be reckoned with.

Initially, there were subtle design changes. The check pattern was scaled back and started to appear less and less on merchandise. Stringent measures were adopted to crackdown on counterfeit items and the licensing agreements were gradually rescinded to centralize design and operations under one roof.

But the most important decision made by Ahrendts, along with Chief Creative Officer Christopher Bailey was the declaration of their vision to see Burberry as the world’s first fully digital luxury company.

The brand had, in their opinion, appealed to an older clientele for far too long. It was time to catch the attention of suave and fashionable millennials.

Digital would be central to the brand’s way of thinking and customers would be treated to the same experience whether online or in-store.

One of the most popular campaigns Burberry launched was the ‘Art of the Trench’, a unique play on user-generated content to bring consumers at the forefront.

Art of the Trench. Photo credit: Creativity Online

This was a standalone website where customers were encouraged to upload photos of themselves wearing their trench coats. They were featured on the main page for 15 minutes and customers could share these photos on social media feeds. There was also an option to click on a product and be redirected to Burberry’s main site to purchase it.

The campaign was a resounding success. In 2015, it was reported to have gained almost 25 million pageviews since launch.

Another hugely popular campaign was initiated to promote Burberry Kisses, a lipstick brand launched by the company. For this, it partnered with Google to enable users to send personal messages, sealed with a virtual kiss.

Users from 13,000 cities sent these virtual kisses within the first 10 days of launch.

In 2012, Burberry tried to bridge the gap between the online and offline shopping experience via its Regent Street London store. The store featured huge screens where catwalk shows around the world could be viewed live and the individual products were available for instant purchase.

“Burberry Regent Street brings our digital world to life in a physical space for the first time, where customers can experience every facet of the brand through immersive multimedia content exactly as they do online,” said Burberry CEO Angela Ahrendts. “Walking through the doors is just like walking into our website.”

Not only can shoppers buy online from Burberry’s digital properties, they can also choose to pick up in-store or have a sales associate order from the website for them while visiting an outlet. Burberry’s also experimented with flash commerce features via Twitter as well as allowing users in China to order via WeChat.

In China Burberry took the unusual route of opening a store on Tmall; a strategy consistently avoided by upscale brands. The move was meant to counter the growing grey market for its goods as well as embrace the Chinese penchant for online shopping.

Its savvy use of social media has also engendered the growth of a loyal community. The brand has embraced Snapchat to provide peeks into upcoming lines and fashion shows. Burberry’s YouTube channel has over 300,000 subscribers and hundreds of videos that not only showcase trench coats, but also includes makeup tutorials, music jams, and other engaging content.

And the result of all of this? In 2011 Business Insider placed Burberry in the top 10 brands of the world with a growth percentage of 86% as judged by an estimate of its brand value. That far outstripped any other company on the list.

Burberry shares, which languished in the $200 range in 2002 now trade at $1,539.

Of course, challenges persist. Weakening demand for luxury brands hurt Burberry’s profitability last year with the CEO saying that the product range “needs to be refreshed”.

But if it continues with its sharp focus on digital and out-of-the-box thinking, it should be able to weather the relative storm.

“Burberry’s digital strategy […] has so far not only put it at the top of the fashion luxury category but among top players across industries,” wrote Digiday.

Here’s what you should know today.

1.Amazon is tightening its grip to India’s mobile shoppers

US-based ecommerce giant Amazon is almost neck-to-neck with Flipkart in winning India’s mobile ecommerce users, according to the latest data by 7Park.

Amazon captured 30.3% of the country’s mobile shoppers, just slightly lower from Flipkart’s 30.7%. Meanwhile, Snapdeal lagged behind at 10.8%.

At a closer look, Amazon’s growth has been at the expense of Flipkart. From Q1 2016 to Q1 2017, the company saw a spike of 46%. Flipkart’s app engagement in the meantime has declined 11.5% during the same period.

Mobile plays an important in India’s ecommerce market, especially since 80% of traffic to both Flipkart and Snapdeal came from their respective apps or mobile sites.

Amazon also had 10 times more browsers turning into buyers than Flipkart did. Amazon’s unique purchasers reportedly grew 113.1%, far above Flipkart at 10.8%.

Read the rest of the story here.

2. Gojek is raising $1 billion of funding for Southeast Asia expansion

Gojek is looking to raise a $1 billion worth of funding, cited anonymous sources close to process as first reported by Wall Street Journal.

The ride-hailing app is looking to raise capital at a $2 billion pre-money valuation.

The fund is said to be used for their regional expansion plan to Southeast Asia countries such as the Philippines, Thailand, Myanmar, and Vietnam.

In August 2016, Gojek has raised $550 million from various investors including KKR, Warburg Pincus, Farallon Capital, and Capital Group Private Markets.

The company has branching out to fintech by building and promoting their own e-wallet service with much success. Gojek’s direct competitor, Grab has recently following their footsteps by acquiring Indonesian O2O ecommerce platform, Kudo.

Read the rest of the story here.

3. Recommended Reading: Luxury brands are going more and more digital

According to the fifth edition of Contactlab and Exane BNP Paribas’ ‘Digital Competitive Map’, luxury brands’ digital performance was up +5% overall.

The research, which encompasses a range of evaluation parameters, has included social media reach for the first time this year.

Burberry claimed the throne out of the 32 international luxury brands for two consecutive years now. Among the top five are also Louis Vuitton, Tory Burch, Gucci, and Fendi.

“Catering to millennial consumers is especially crucial in order to improve digital sales (…) The beauty of social media platforms, such as Instagram, is that they allow customers and brands to communicate globally, catalyse organic engagement, form creative communities and drive sales.” commented Contactlab’s Senior Advisor, Marco Pozzi.

Read the rest of the story here.

In the world of luxury clothing brands, there are two that stand out: Burberry and Hermès. Both brands enjoy a longstanding history within the fashion world, but they differ greatly in ecommerce offerings, according to econsultancy.

Burberry is a brand that gets it right. The brand offers a digital experience that perfectly aligns with its design; creating a sleek and modern feel to the website. The bold visuals are integrated with interactive elements that easily captures the attention of an online browser. Here’s what Burberry did right and how Hermès can improve:

1. Compelling visual design

Burberry succeeds at creating innovative product pages that sets it apart from competitors. Product images are shot on a consistent backdrop, with elements of the products in clear view. This function makes it possible to see small details without zooming in.

ecommerce lessons from Burberry and Hermes

Burberry offers detailed product info without the clutter. Source: econsultancy

One unique feature that Burberry manages to utilize is the use of larger image tiles, which elevates the visual experience. supplementary product details are sectioned off so consumers can quickly find the information they are looking for.

Burberry also reduces the footprint of any product recommendation display and aligns it off center to not distract from the main product while still offering the option.

2. Consistent brand experience offline and online

Burberry manages to provide consumers with a platform that tells an engaging, interactive story about the brand. They infuse content and commerce to create an online experience similar to visiting a physical store.

ecommerce lessons from Burberry and Hermès

The ‘acoustic’ section adds an element of personalization and offers an engaging visual story. Source: econsultancy

The website has an ‘acoustic’ section where up and coming musicians perform in natural environments while dressed in Burberry clothing, without any feelings of ‘hard sell’.

3. Easy-to-navigate website 

Brands often feature an extensive product line-up, so categorizing each product can be challenging. This can make it difficult for consumers to navigate through the website without a good UX design.

Burberry succeeds at providing online shoppers with a simplified site. The search bar on the left hand side of the site is very easy to navigate and organizes products by category/collection.

Hermès, however, provides a slightly different online experience.

ecommerce lessons from Burberry and Hermes

The homepage instantly calls for a divide between store and commerce experience. Source: econsultancy

Hermès makes a stark divide between online and offline, forcing shoppers to pick instead of allowing them to soak in the entire brand experience.

4. Creativity is balanced with functionality

Hermès is a brand that goes far in differentiating their sites from competition, but it ends up being confusing. The homepage looks more like an art gallery than a brand store, with its hand drawn images and lack of product description.

ecommerce lessons from Burberry and Hermes

The product page lacks commerce functions. Source: econsultancy

5. Robust product pages

There is a lack of information in Hermès’ product pages. Product descriptions consist of a few words such as ” Printed Beach Towel”. Images are presented on sketches and not on models, which doesn’t translate well for commerce.

It could be said that this approach may resonate with the Hermès’ loyal customers, but will fail to engage the brand with new customers in an increasingly competitive digital commerce landscape. However, another way to look at this is to recognize that Hermès is an exclusive high-end luxury brand that promotes the ‘waiting list’ culture or in-store browsing experience. The brand expects its customers to understand its vision, which is why it fails to adopt traditional ‘boring’ product pages or craft an interactive story on the homepage.

A version of this appeared in econsultancy on July 6. Read the full version here.