Fashion and textiles businesses are often founded by designers whose passion it is to create beautiful products, but success hinges as much on business acumen as it does on creative ability.
At first glance, e-commerce might seem like a more efficient and low-cost route to market than a bricks-and-mortar store. But it also poses a number of quandaries, such as: should you be selling overseas, and if so, what’s actually required to do so?
Emma Shipley graduated from the Royal College of Art in 2011 and always knew that e-commerce was the way forward for her products, which are high-end hand drawn textiles, but she was faced with a huge expense when looking to set up her website.
“It took me about a year to get started,” she explained. “We were already manufacturing stock because we were getting a lot of orders from department stores, so that wasn’t the problem. But we needed an e-commerce platform that worked for payments systems, as well as really good product photography, which is expensive.”
There are a number of issues to consider when selling overseas. Shipley initially used a provider which didn’t accept American Express, which caused issues when selling to the US. She now sells to countries all over the world, which means she relies heavily on a flawless shipping process, along with a platform which allows her to automate the process as much as possible.
Shipley sends hand-written notes on a postcard to each customer along with their order, and the idea of keeping things personal while still streamlining process is key for small companies who want to provide customers with the best possible service without losing the uniqueness that differentiates them from bigger, more corporate brands.
Stefan Siegel is the founder of Not Just A Label, a platform which allows designers to showcase and sell their work online without incurring the costs of setting up their own site - which can be prohibitive to smaller brands. He echoed the importance of individuality, but explained how being a part of a larger network can be very important when using e-commerce to sell the world over. Siegel has leveraged connections in the industry to help designers with issues they have come up against; including liaising with experts to help one business overcome red tape which was stopping their product from being able to leave the country, and using the power of his network to find easy ways to distribute payments to the entrepreneurs who feature on his site.
For companies who are keen to go at it alone but would like some additional support, UK Trade and Investment (UKTI)’s fashion and textiles team have a number of advisers willing to share their advice with entrepreneurs.
Richard Foxall has helped many businesses who are using e-commerce to begin exporting overseas. He explained the importance of tailoring websites and processes for different cultures and audiences.
“Entrepreneurs should really have a strategy for each country. China, for example, offers incredible opportunities, but if a fashion company in the UK were thinking of targeting that market they’d need to consider their domain strategies [Google isn’t necessarily the primary search engine around the world], they’d need to build a social media presence as customers there use it as their primary channel to interact with brands,” he explained. “Ideally, best practice would be to have someone who speaks the language. If you test the market and it goes well, that’s an area to consider investing in.”
Paul Alger is the director of international business development for the UK Fashion & Textile Association (UKFT). He echoed Foxall’s advice: “The majority of worldwide Google searches are not in English so a willingness to localise websites and use language and understand regional preferences in web design are very important.”
Alger also urged small businesses in creative industries not to value style over substance: “It’s great to have a beautiful transactional website but if you have no customer following sales will be slow.”
A key aspect to get right is a returns policy, which can make or break a fashion brand. “E-commerce is a major part of the fashion industry but it has to be seen as part of a wider multi-channel agenda”, says Alger. “Unlike other markets, for example electronic goods or interior textiles, which are fairly straightforward, fashion is all about fit and feel. A consumer might buy one television online but when buying from a new fashion brand, a customer would probably buy a number of sizes and return those which do not fit.”
This is a particular challenge for certain types of clothing which have a high returns rate, and it’s a crucial element to consider and plan for, by having a local storage space for example, and shipping returns back to the UK in bulk.
Online shoppers across markets are also looking for a variety of delivery options. This is especially high in Asia where according to UPS’s Pulse of the Online Shopper survey [PDF] 45% of respondents said they would prefer to have their online order delivered to a location other than their home.
Luis Arriaga, managing director of UPS (UK, Ireland and the Nordics), explains: “It’s important deliveries fit in with the lifestyle of the customer, alternative locations include a grocery store, delivery locker or their workplace. If you have a physical store, it’s also good to be able to offer the chance to pick up in store, an option that a lot of customers will expect free of charge. Even if you don’t have a shop yourself you can provide alternative delivery options through a logistics provider - we have UPS Access Point, a network of convenient retail locations such as local shops and petrol stations, which enable fast and efficient parcel collection and drop off.”
Exporting overseas presents a number of challenges, and ultimately quick and efficient fulfillment is key. If small businesses can ensure that customers the world over have a positive site experience, receive their product in a timely and professional manner, yet feel like they’ve had a unique interaction with a smaller brand, there’s no end to the possibilities and markets open to them.
- There are 9,200 UPS Access Points in the US and Canada
Content on this page is paid for and produced to a brief agreed with UPS, sponsor of the Exporting to New Markets hub on the Small Business Network.
