FASHION HOUSE Group, the leading player in the European outlet sector, focuses on bringing innovative solutions to the Russian market. It has opened FASHION HOUSE Outlet Centre Moscow (two phases), the first fully enclosed scheme of this type in Russia, and is now developing FASHION HOUSE Outlet Centre St. Petersburg. With this development and the planned phase III in Moscow, all the Group’s investments in Russia will exceed the level of €200 million.
In April 2016, FASHION HOUSE Group launched the first online outlet centre in the country, available for over 40 million customers in Central and Western Russia with guaranteed delivery within a maximum of four business days. The e-store is a key component of the Group’s omni channel strategy, aimed at modern customers.
FASHION HOUSE Online Shopping (shop.fashionhouseoutlet.com) merges the benefits of brick and mortar outlet centres, like everyday discounts with comfortable shopping online. During the first 12 months since its official launch in April 2016, the e-store has already gained appreciation from both customers and business partners. The online tenants offer more than 20 top brands, e.g. Trussardi, Brums (brand for children), Tom Tailor, Quiksilver and Meucci. The e-store portfolio is constantly growing.
Crucially, FASHION HOUSE Online Shopping has been noticing significant growth in business KPIs. This ascending trend is clearly visible while comparing the 2nd measuring period of the e-store’s functioning (Dec 2016-Apr 2017) to the first measuring period (May-Nov 2016). In this comparison, the monthly average conversion rate grew by 93 percent, monthly average number of orders by 130 percent and monthly average gross sales by 103 percent.
“Thanks to our successful implementation of the omni channel strategy, we have significantly widened a group of current and prospective customers. This is what our partners on the Russian market expect. Two supplemental models, FASHION HOUSE Outlet Centre Moscow and FASHION HOUSE Online Shopping, give them more options to increase sales and gain the best possible business results,” said Brendon O’Reilly, Managing Director of FAHSION HOUSE Group.
FASHION HOUSE Online Shopping operates in a flash sales model. It creates a time limited exclusive offer from tenant’s assortment on the e-store website. These products automatically become limited goods – a must-have bargain for customers. The e-shop also offers some important additional options, making e-shopping very comfortable. Customers can decide whether to pay online or offline to the courier (cash-on-delivery selected by 75 percent of people). They are also able to pick up items (ordered online) directly from FASHION HOUSE Outlet Centre Moscow. Moreover, FASHION HOUSE Group addressed an issue with online shopping in Russia that may prevent some people from using this option – lack of product trial. Customers can try their clothes before the final transaction in front of the courier. 75 percent of them choose this convenient try-on opportunity.
“We have spent a large part of 2016 working on a multichannel attribution strategy that assigns different goals and values to the multi-touchpoint customer journey. The next step is to connect this to customer lifetime values and individual marketing campaigns through back-end business intelligence in our own journey to acquire and retain the most valuable and loyal customers, regardless of the channel they choose to pursue,” commented Piotr Kreft, Head of e-commerce at FASHION HOUSE Group.
