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IN THE FRONTIER skirmishes of the online clothes-shopping world, enticing people to buy is as much about the data as the dresses and denim.
UK-based ASOS is the dominant player in Ireland and its home market with credentials firmly grounded in its appeal to trendy 20-somethings.
On its site, the fashion-forward approach manifests itself in features like mini catwalk videos of clothes and the “style feed” unpicking outfits worn by celebrities.
Elsewhere in Europe however, its main rival Zalando, based in Berlin, commands top spot with an approach that is less hipster, more geek-chic.
“One of the most important challenges to making e-commerce work in the long term will be to show you a smaller set that is better suited to you without you having the feeling that you’re missing something,” the company’s head of technology, Philipp Erler, told TheJournal.ie in a recent interview.
Doing this right, in a way that you don’t feel you’re pushed there … that’s challenging.”
Last year Zalando made €2.2 billion in sales, a 25% increase on the previous year, making it Europe’s largest online fashion retailer – although that comes largely on the back of its dominance in the German-speaking markets.
Part of its success has come from using technology to both draw in more customers and to lure those who do shop to spend more in every order. As Erler puts it: ”If we want to be quicker than everyone else we need to look forward.”
Last year, Zalando became one of the first major e-commerce sites to deploy image-recognition software, the development of which has been one of the largest projects for its near-1,000 tech staff.
The software enables users to upload a picture of an outfit and have the company automatically pick matching items from its catalogue.
The next step (to image recognition) would to also understand how an item feels … this is where the fashion experts come into play, because it is something we cannot solve yet with a machine,” Erler said.
A slow-moving industry
One of the company’s goals, he says, has been to drag the fashion industry as a whole into the 21st century.
We are still buying some brands via fax machines in 2015 … the whole industry is not very forward.”
With that in mind Zalando has been teaming up with some global brands by feeding them a stream of data about how their customers are shopping.
One of those labels is Nike, which the online retailer has supplied with detailed information on what clothes shoppers paired with their shoe purchases.
This is very valuable for Nike – they told us. They are one of the biggest brands in the world and they have huge revenues but they have very little direct access to this information.”
However combining a human eye for fashion with the power of software to roll out solutions at scale – thousands or millions of times over – remains a key piece of the e-commerce puzzle.
Zalando has also enlisted a team of fashion experts to make personal recommendations, a service launched in Germany in May under the ‘Zalon’ banner. The company now plans to roll out the same offering to other regions.
Stylists assemble a “personal box” of recommendations from the company’s catalogue for shoppers, while the fashion retailer’s software also makes its own judgements by crunching the data gleaned from all its sales.
The Irish component
Meanwhile, for a company that launched its Dublin office with much fanfare last year, Ireland remains notably absent from Zalando’s map of 15 European markets.
While the lack of an Irish site was “not great for the Irish customer”, Erler admitted, the company’s anonymity in the Republic helped when it came to staffing its local outpost.
The company currently has around 25 staff in Dublin working on its data-science projects and it has said it will hire up to 200 people in the city over the next three years.
“Whenever we recruit in continental Europe everyone knows our brand, we are huge there, we are the market leader,” Erler said.
“People think it’s only a web shop, people don’t know the iceberg … there is six or seven parts below the water. In Ireland it’s different: we don’t have a branch here and that helps us in recruiting, because we don’t have to overcome this idea that it’s just a web shop.”
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I’m on the Wage Subsidy scheme I don’t want it extended – it’s benefiting employers and penalising workers who will end up with a tax bill at the end of the year. Some employers are paying their staff extra to cover the impending tax bill but others are not.
Yes, I get the reasons for it to help employers stay in business but come on, do you think all of the companies availing of it are really in need of it or just jumping at the chance to get free labour?
@Fon_Ellard: : wow. That’s some grade A stupidity there!
Do you not know that if you were taxed at source you’d just have less in your back pocket now? You should calculate what total income for the year will be, find out how much you tax you should be paying monthly and then set this aside if you’re that worried. You’re not being penalised ffs!
I can’t believe this. You shouldn’t have a job based on your mindset!
@Joe: The economy is finished, the EU central bank has estimated that our GDP will contract between 7.5% to 8.00%
This makes the banking crisis look like pocket change. Tell me how we are going to pay back this funny money?
There is no such thing as free money, this government is preparing for the complete breakdown that’s coming, you should do the same, get your house in order
@Fon_Ellard: I’m not really disagreeing with you but one thing I can tell you for sure is workers on the wage subsidy scheme will not be hit with a tax bill later. The wss is paid after tax if you get me. There is no tax due on it. I’ve checked this with Revenue. So … that’s one less thing to worry about.
@Fon_Ellard: I’m not really disagreeing with you but one thing I can tell you for sure is workers on the wage subsidy scheme will not be hit with a tax bill later. The wage subsidy scheme is paid after tax if you get me. There is no tax due on it. I’ve checked this with Revenue. So … that’s one less thing to worry about.
First thing they did was give themselves a rise while we pickup the bill. Pigs at the trough
Promising however not addressing the elephant in the room which is the biggest hindrance to businesses operating is not solely finance but the restrictive measures/guidelines that prevents them from operating at full scale (rightly or wrongly).
@John Egan: they are reviewed and discussed every week….have you been missing the massive media reports on same?
@Canyon: are you mistaking reviewals to allowing businesses to open under the same regulations/conditions as businesses opened in previous phases? Or actual changes to the regulations. Because the only ‘massive media’ report was when they were debating on keeping 2m distancing or reducing to 1m….
Pigs will fly before fine geal implement these
@Richard Doherty: that’s the spirit! Glad you’re keeping an open mind.
Loans with 4.5%+ interest… In a negative yield market!?! Shocking.. No other word
@Nigel o’Neill: The State can borrow from the ECB at close to zero. If they issue loans to businesses at even 2%, it would surely lower their interest bills sign
Only in Ireland does SME stimulus come in the form of debt at about 500% markup on EU average interest rates. Small businesses need CASH, not debt or some nonsense about tax rebates in 18 months time. We’ll be dead and buried by then. RIP SME sector in Ireland.
What about property tax waiver?
Tax reductions for some businesses, but not all I hope. Our local grocery shops that stayed open had a massive boost to their business. Developers used the wage subsidy scheme to slash their labour costs, assuming they will sell their units this will only add to their massive profits and if they get tax reductions I doubt they will lower the house purchase prices to reflect this.. Not all businesses need a helping hand.
I miss Bertie… lol..
Just suppose our Government decided to waive the Tax on the Wage Subsidy for employees, imagine the spending spree that would create. They would get a big %age back indirectly and an awful lot of local businesses would benefit greatly.
Just a thought, definitely a far better option than awarding themselves monster salary increases.
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