Presentation looks at online retail trends for apparel in Australia 2011/2012. Data is a mix of hitwise, google insights and Amblique aggregated client results.

2. Introduction
What does the tsunami look like?
Source: Hitwise
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3. Frequency - Return Visits
Why are pure plays growing so fast? Return visits.
Pure plays - avg. 81% Multi-channel - avg. 65%
• Catch Of The Day • General Pants
• Forever New
• BrandsExclusive
93% • Sportsgirl 77%
• Ozsale • City Beach
• BuyInvite • Cotton On
• ASOS • Supre
• Amazon • Country Road
• SurfStitch • Big W
• EziBuy (AU) • Toys R Us
• David Jones
• Deals Direct 53%
• StyleTread
61% • Officeworks
• Myer
• Kmart
• Rebel Sport
Visitors are 25% more likely to revisit a pure play*
Returning visitors 67% more likely to convert**
* Hitwise
** Google Analytics May 2011 – April 2012
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4. What’s Going To Save Established Retailers?
Let’s explore disruptors detail
1. Pure plays
2. Internationals
3. Mobile
4. New digital channels
5. Social Media
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5. Pure Plays – Brand Awareness in Apparel
YoY the pie is 51% bigger
Top Performers
• New Pure plays (+167%)
• ASOS (+163%)
• Forever New (+57%)
Pure plays in red went
from 16% to 29% of the
pie in 1 year
Source: Google Insights Mar-12 vs. Mar-11
New pure plays inc. SurfStitch (SS), TheIconic (TI) & StyleTread (ST)
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6. Pure Plays - ASOS
• Traffic up 279% year on year for March
• Social drives 19% of traffic
• 36% of traffic from search
Source: Hitwise Mar-12 vs. Mar-11
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7. Pure Plays - ASOS
• Traffic up 279% year on year for March
• Social drives 19% of traffic
• 36% of traffic from search
Source: Hitwise Mar-12 vs. Mar-11
© Amblique 2012

8. Pure Plays – Brand Awareness in Broader Retail
YoY the pie is 19% bigger
Top Performers
• COTD (+37%)
• Toys R Us (+36%)
• Amazon (+29%)
• Kmart (+29%)
Amazon grew the most in
absolute numbers
Source: Google Insights Mar-12 vs. Mar-11
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9. Established Retailers – David Jones
• Traffic up 21% year on year for March
• Social drives 6% of traffic
• Took 80% more traffic from Myer YoY
• 53% of traffic from search
Source: Hitwise Mar-12 vs. Mar-11
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10. Established Retailers – David Jones
• Traffic up 21% year on year for March
• Social drives 6% of traffic
• Took 80% more traffic from Myer YoY
• 53% of traffic from search
Source: Hitwise Mar-12 vs. Mar-11
© Amblique 2012

11. International Retail
Top 100 Apparel Sites
April 2012
40%
Multi-
channel
38%
46% Category Growth Contribution
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12. International Retailers Pushing Online
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13. International Retailers Pushing Online
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14. International Retailers Pushing Online
Launching
May 15th in
Australia

15. Mobile & Tablets
• Mobile & tablets account to up to 22% of traffic
Source: Google Analytics for 9 fashion clients
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16. Mobile & Tablets
• Tablets up to 283% more $/visit
Source: Google Analytics for 9 fashion clients
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17. Mobile
Traffic SMS
20% of all 98% open
visits+ rate**
Email Store
27% of email locators
opened on 47% more
mobile* from mobiles+
* Mobile Email Opens Report, Knotice April 2012 based on US data
** The Benefits of SMS Marketing, Power Retail April 2012
+ Google Analytics for various clients, March 2012
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18. New Digital Channels
Private Sales
Clubs Aggregators
25% Top 100 Apparel ~20% shopping traffic
Deals / Group Buying Comparison
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19. Channels Are Shifting
Top 100 apparel visit share is changing….
April 2011 April 2012
25%
Pure Play
47% 32% 43%
Multi-Channel Pure Play
Multi-Channel
28%
Private Sales
25%
Private Sales
© Amblique 2012

20. Transactional Aggregators – Reach/Value/Loyalty
Transactional aggregator channel engagement increases customer value
2.1x
1.6x
2%
Engage
1 2 3
of aggregator customers
35-45% were new to brand (online) 7%
Value
aggregator introduced customers
90% + spend direct at some stage (online)
Source: Actual client sales data. Two apparel sits with multiple aggregators and significant volume.
© Amblique 2012

21. Social
13% YOUR 10%
WEBSITE
8% 7%
Consumer Buying Journey
1. 2. 3. 4. 5. 6.
Consider Evaluate Buy Experience Advocate Bond
Retailer Engagement
MONITOR RESPOND AMPLIFY LEAD
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22. Social – Advocate Recommendations Are Key
Shipping + Range
24 comments in a day
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23. Social - Immediacy
…42 minutes later…
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24. Social – What Is It Worth?
What value can be attributed to a Fan??
1.8 visits (0.4 – 6)
1.7% transacted (0.4% - 6.7%)
$1.52 ($0.22-$5.59)
Value should = Purchase Value + Referral Value
NPS is better system
Note: Average across 10 apparel sites for 1 year (end April 2012). Only includes online spend.
© Amblique 2012

25. Social – Interesting In-Store Integration
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26. What Is Required To Compete?
1. Resource & structure appropriately
2. Be omnipresent
3. Leverage offline > online
4. BYO clearance channel
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27. Offline to Online
Australian GDP
96.6%
Online
3.4%

28. What Is Required To Compete?
1. Resource & structure appropriately
2. Be omnipresent
3. Leverage offline > online
4. BYO clearance channel
AND Amazon principles apply to all
1. The equation of the business
2. Customer centricity
3. Bridging the physical & the digital
© Amblique 2012

29. Amazon Principles – The Equation of the Business
Source: eCommera
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30. What Is Required To Compete?
1. Resource & structure appropriately
2. Be omnipresent
3. Leverage offline > online
4. BYO clearance channel
AND Amazon principles apply to all
1. The equation of the business
2. Customer centricity
3. Bridging the physical & the digital
© Amblique 2012

31. Amblique Showreel
www.youtube.com/watch?v=0DjvfkUZsXk
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32. Blogs & Resources
• http://blog.kissmetrics.com
• http://www.marketingexperiments.com/blog
• http://www.mequoda.com
• http://blog.comscore.com
• http://blog.demandware.com
• http://socialcommercetoday.com
• http://www.theverge.com
Thank you!
Justus Wilde Tim Griffin
Online Strategy Director Search Marketing Director
jw@amblique.com tg@amblique.com
© Amblique 2012