In the fast-moving world of fashion, retailers are under increasing pressure to innovate in order to improve the customer experience and stay ahead of the curve. New technologies, service models and competitors are disrupting the market at every turn; but is innovation really the answer - the new superpower for retailers? To find out, we surveyed 500 European fashion retailers on how well they are delivering on the fundamentals of retail – from delivery on promise to peak trading – as well as the extent to which they are driving innovation in their business.Download the full report
Distracted by innovation
Many fashion retailers are prioritising innovation despite worrying gaps in the basics of a good customer experience.
Failing to deliver on promise
Shipped on time:
Delivered to the customer on time:
of retailers that ship on time less than half of the time view innovation as a business priority (versus 54% of all retailers)
Unprepared for peak trading
of retailers cannot rely on their website to be fast and stable during peak trading periods – and the poorest performers are being distracted by innovation
Peak trading reliability versus innovation focus
Under pressure from customer queries
of orders result in a query to the contact centre
Contact centre queries by country
And those retailers that said 40% or more of orders result in a query to the contact centre are focusing their innovation efforts on customer-facing technology instead of trying to reduce the number of queries.
The challenges of innovating
Once the fundamentals are in place, retailers should use innovation to make the customer experience better, faster, and easier; but innovation is not easy.
The importance of innovation
9 in 10
retailers take innovation seriously
What's driving innovation?
Keeping up with the competition is the key driver for mostWhat is the primary driver for innovation within your company?
What’s holding retailers back?
Retailers cite a wide range of barriers to innovation, including:Which of the following are barriers to innovation in your company? (aggregate of top 3 barriers)
Not enough time/resource
Lack of investment
Who’s in charge of innovation?
There is a lack of clarity around ownership of innovationWho, within your organisation, is responsible for innovation?
have a process for innovation
How do retailers measure innovation success?
Customer satisfaction and increased revenue are the most popular KPIs, but retailers should align their KPIs to the problems they are trying to solveWhich of the following KPIs do you currently use to assess how well your innovation strategy is performing? (aggregate of top 3 KPIs)
(e.g. % orders fulfilled on time)