Brazilian fashion has a very positive image in the world. The market is promising with the rise in the dollar and tax incentives. We have moved more than US $ 90 billion in sales in the textile chain and in the making of precious gems and metals, from leather to shoes.
The Brazilian textile and clothing sector has great prominence on the world stage, being the sixth largest industry in the world, the second largest producer of denim and the third of knitwear (Source: Apex-Brasil). The companies have great support from Apex-Brasil and industry associations such as Abit, Sindijoias, Abicalçados, among others, in the process of export and internationalization of the industry.
Cross-Border or Cross-border e-commerce enables the industry to reach new markets in the world with robustness and efficiency. This global retail megatrend comes to redefine culture and strategy in business technology. The expansion is due to consumer behavior of being able to buy online from foreign retailers, breaking geographical boundaries in search of new products and prices. Clothing and footwear are the categories that top the demand list.
Specialized services in these operations for small to large businesses are available to encourage consumers to convert sales and simplify the management of the logistics involved in these operations.
Cross-Border e-commerce is forecast to grow 38% annually to reach US $ 300 billion by 2018. Consumers are already spending US $ 105 billion on purchases made abroad, according to research carried out in six important markets. Sales in intra-Latin America represent a higher volume, according to Statista, in the region it is estimated US $ 70.6 billion in 2016. (Source: Paypal)
Google and TNS research in April 2015 found that 41% of digital buyers in Brazil made a cross-border purchase at least once a year. The age of 25 to 34 (48%) and those under 25 years of age (45%) were the most likely. (eMarketer source)
In the world market, Asia leads sales with 40%, it is the region with the highest online consumption. Cross-border consumers prefer to buy from larger and better known retailers, mainly from global marketplaces. The Alibaba group is the most sought after by consumers in Brazil and other countries.
Amazon, in contrast, launched SCBA (Amazon's Supply Chain), a large-scale retail system that allows companies to sell anywhere in the world with support, free shipping and delivery in a maximum of 3 days. And so, they continue in this dispute for the dominance of the global retail that can generate US $ 1 trillion in revenue in cross border e-commerce until 2020.
Observing this movement in the world market, we have to look closely at Joor Access, B2B Fashion Marketplace that started its operation in 2011. Today it has 155 thousand retailers buying wholesale online for its stores. There are more than 1,500 brands such as Alexander MCQueen, Michael Kors, Vera Wang and continue to absorb an average of 50 new brands per month.
This year, they intend to generate about US $ 25 million in B2B e-commerce revenue, with a 67% higher growth compared to 2015. It is estimated that the gross value of the marketplace will be US $ 15 billion in 2016. This increase in offers of brands has recently attracted buyers from major retail chains such as Harrods, Neiman Marcus, Bergdorf Goodman and Myer Department Store.
The company has already expanded its business to North America, Europe and Asia. This image below already speaks for itself, carbonated order blocks, line sheet, among others, are already outdated with these new digitalized ordering tools that facilitate Fashion Buyer's work.
Digital Revolution in the Brazilian Fashion Industry
Brazilian fashion retail is going through the biggest economic crisis and needs to accelerate the breakdown of traditional business models, which do not fully meet the needs of consumers and companies. The Digital Revolution is necessary and irreversible for B2C and B2B operations. The moment is for investment in technology, cost reduction, efficiency in management and expansion of borders with products that serve globalized consumers.
This disruptive scenario has technological resources that need to be part of the strategy and not only as a support. Companies must structure Opex planning well, so that it is absorbed in the DNA of the organizational culture. There is a lot of information to align, and a change in processes to deal with this immense volume of data. Investment in specialized consultancy and team training is essential for the success of the project, thus ensuring that companies achieve greater productivity.
We still find in the sector many companies that do not invest in the area of digital commerce with the due importance. Thus, letting the marketing and commercial “traditional business manager” accumulate functions. Consequently, he conducts this operation without the necessary qualification to perform the digital disruption, this professional tends to fail. And in most cases, because they are unable to meet the demand in both areas.
It's like having a Ferrari and not knowing how to drive. This is a big mistake, because we are talking about a new business environment, that this manager needs to study and read articles daily to update himself on technology and everything that involves this digital universe.
These are new ways of managing metrics and connecting with consumers. That is why investing in human capital, training and transmitting this new culture to employees is the most important. Because they make the machine work and productivity increases. Motivated, they will raise the brand flag as ambassadors, and consequently will reflect on customer satisfaction.
Digital consumers, in turn, are empowered by social networks, and increasingly value the relationship and experience with products and services. They influence and engage with the brands they identify with. The opportunities to bring them to your brand are directly linked to the good use of the resources available in the market such as Platforms with converting usability, CRM, Clustering, ERP, Omni Channel, Clouds, Advanced Store System and all the features of Digital Marketing.
All of this is accessible today, but “Planning” needs to be done in a wealth of details to be successful. In this business you need to hire several service providers or unify in a full service, search for suppliers with good references and make sure the quality of the services provided.
It is necessary to keep these consumers interested in your product, and to have business intelligence oriented towards the culture of service excellence, with a team well prepared to serve in other languages and cultures. After all, behind all technology there are people who relate and exchange experiences.
If it is trade “the core business is to sell and serve your customers well”, the rest are means for this. A great example is the case of Zappos, which has a conversion rate above 40%, and remains well above the average because they spare no effort to serve customers with a high level of satisfaction.
“Net-a-Porter, one of the largest luxury e-commerce companies in the world, is looking back to Brazil. The focus is not to sell here, but to select Brazilian designers for the online store portfolio. ” (Buyer source of Net-a-Porter for FFW, 2015). This is a fact! Brands that seek this path stand out in the international market, are numerous marketplaces for all niches.
I am always present at the main fairs and fashion shows in Brazil and abroad, and I am increasingly excited by the demand of international buyers from the major players buying our brands. It is clear how digitalization can make these products available and give capillarity to online and offline points of sale around the world.
“Exporting is easy” and “Technology is accessible”, the Brazilian fashion industry needs to leave the status quo, looking for the solutions and tools that are already available to make this disruption. This is a great opportunity to get out of the crisis. “Internationalize and Digitize” to serve these consumers in the large global mall.
“It is no longer a question of the big one swallowing the little one. Now it’s the fastest that swallows the slowest. ” (Larry Carter)
Erica Borges, Founder of THE1 Showroom and THE GOAL
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