How To Solve The Problem Of Garment Return?

The high return rate is becoming one of the biggest problems in the global retail industry, especially in online retailing. According to the latest report of the American Retail Federation of Retail Equation and National Retail Federation (retail NRF), the US retail market returns in 2015. product The total value is as high as 260 billion 500 million US dollars, and if this data is converted into sales, it is enough to rank third on the list of Fortune 500. It can be imagined that if we solve the problem of return rate, it will undoubtedly greatly improve the efficiency of retailers, and at the same time, improve profit margins, and more importantly, improve user loyalty.

According to data from TrueFit, a consultancy service in the apparel retail industry, about 98% of online consumers are just used to see Window Shopper, but those who consume online have a very high return rate. TrueFit data show that clothing returns rate as high as 50%. TrueFit co founder RomneyEvans said the world clothing The market is about $1 trillion, while online clothing sales account for about 12%. Therefore, the annual value of online clothing sales is up to 60 billion dollars, while the world's largest clothing retailer InditexSA (ITX.MC) Indo Textile Group has only 20 billion 900 million euros in fiscal year 2015, and H&M Hennes&MauritzAB (HMb.ST) Hein Morris has earned about 19 billion euros in the 2015 fiscal year.

As for China market It was previously reported that Alibaba's "double 11" return rate reached 63% in 2015, accounting for 57 billion 400 million yuan of 91 billion 200 million yuan. Although Alibaba subsequently rumor, said the above data is not true, but the Chinese e-commerce giant has never disclosed platform return rate. In 2014, it was reported that in 2014, "double 11", Tmall women's clothing and men's clothing sales volume the first "Han dresses house" and "Jack Jones" refund rate as high as 64.09% and 38.25%, then Korea's clothing house CEO Zhao Ying light explains, because in the calculation of the refund data and sales data occurrence time is not consistent, resulting in the refund rate in the short term high, but Zhao Yingguang also did not disclose the actual return rate of its online store.

If the return rate of the US online clothing market is as high as 50%, how much is the return rate of Alibaba based on clothing sales? Of course, we may never know this question.

The retail industry, which is the biggest killer of the retail industry, may not be able to solve it, but the return rate problem is actually possible to improve.

Accentureplc, NYSE:ACN, a senior manager of Accenture retail business, said that the high return rate was mainly caused by two factors, one is lack of personality, the other more important is that it is not fit for JillStandish.

The above two reasons need to fully understand consumer information, such as specific height, weight and other information. However, with the emergence of data and technology companies in many service retailers, the above problems may be improved.

At present, there are many technology companies that solve the problem of retail return, including the return rate. Besides the above TrueFit, there are also technology start-ups, such as British enterprise FitsMe and New York company OakLabs and WithMeStore.

Madeleine Melson, director of consumer insight at Fraser Madeleine, department store of Houseof Fraser, a British department store bought by Chinese companies, said TrueFit could help the company increase its revenue by 6%-8%. She said that about 2 million 500 thousand subscribers registered personal information in TrueFit, and the 20 million size recommendation was used. The rate of adoption was very high, that is, the average person took 8 times per person. Madeleine Melson also said that those who use TrueFit had a much lower return rate than consumers who did not use the application. Similarly, GeorgeM.Carrara, President of Kate Spade&Co. (NYSE:KATE), the us light luxury Brand Company, which also uses TrueFit, has previously said that TrueFit has reduced the return rate of the company by 18%, and the conversion rate of consumers using TrueFit to buy branded garments is two times less than that of TrueFit consumers.

True Fit co-founder Romney Evans said the company now has about 60 retailers, expanding to 100 this year. True Fit, founded in 2010, claims to have collected 10000 brands and 100 million consumer data worldwide, and added 700 thousand SKU a month. Based on these data, TrueFit can provide 181 suggestions on average for each consumer, which will undoubtedly reduce the return rate. Retailers are also increasingly finding the value of using technology products for businesses. These include not just the upgrading of user experience, but also the real-time price ratio of consumers.

As for British technology company FitsMe, the company claims that 25 million consumers are currently using the product, which includes Rakuten Lotte shopping, Japan's largest online retailer. Stuart Simms, chief executive of FitsMe, said the company's survey showed that 78% of the users would give up a specific material product because of their suitability. In the UK, 80% of 18-25 year old high street brand consumers are willing to use FitsMe's system, because in addition to the willingness of young people to embrace technology, these technology products can also bring their immediate benefits.

TrueFit co founder Romney Evans said that in addition to the direct use of online retailers, as a physical retailer, shop assistants can also provide consumers with better suggestions based on more data, improve sales and reduce the return rate. Romney Evans said that Nordstrom Inc. (NYSE:JWN) Nodes Tron entity store is currently using the company's products, which is like a "personal shopping assistant".