3 questions for . . . Yann Rivoallan, Co-founder and development director for The Other Store
Yann Rivollan is an image expert. In fact, the photography enthusiast started his career by founding a photography agency. Following that experience, he discovered the world of fashion and luxury goods and became so interested in those sectors that he never left. In 2008, with David Sobel and Candice Delorme, he created The Other Store, where he is now development director. In response to the challenges of the digital revolution, the agency helps brands create dedicated ecosystems. An e-commerce specialist, the agency presents the latest innovations in the sector. Among its clients are important names such as Naf Naf, Aigle, Le Tanneur, Paul & Joe, Des Petits Hauts, La Fée Maraboutée, and Gérard Darel.
What is your analysis of the French ready-to-wear brands’ current move to crosschannel or omnichannel operations?
In fact, there have been three stages. Looking back, we see that multichannel operations already existed, since brands had to manage both wholesale and retail activities. The real change came with the first iPhones, a tool that lets users research product prices at any place and any time. iPhones made information on prices and brands more visible, creating a basic uniformity of prices. It’s the same with crosschannel communications. Having a product delivered to a store is something La Redoute has been doing for 20 years. The real challenge is starting an omnichannel system, which means knowing how to manage coherent prices, one client base, and one stock.
It’s clear that 90 percent of brands don’t do that. They’re running behind and trying to catch up. They weren’t in control of web development or uniform prices. Five years ago they started setting up CRM procedures to manage one client base and creating a digital web platform to manage one stock. In this area, the Americans are ahead of us. That makes sense, since their market is much larger; and it’s essential to have impeccable organisation in a market with 300 million consumers in the same territory. In France, our strengths are product quality and brand DNA. The back office is, however, generally not a priority.
You often say that consumer habits have changed and are still changing. How has consumerism evolved? What are the main consequences of this evolution for consumers?
Digital technology brought major consequences. The first was non-stop information on prices thanks to the development of e-commerce. The second was the 2004 introduction of social networks, especially Facebook. Researching on the web, whether via on-line boutiques, forums, blogs, or social media – and doing so before buying offline – has become the natural reflex for 70 percent of clients. E-shops have even become the main channel for traffic, brands’ websites are systematically visited more often than physical stores. This has completely transformed consumers’ relationships with brands. In the past, going into stores was an emotional experience and we were already prepared to spend. When you’re connected to an on-line boutique with your telephone or computer, everything is cold and flat. Our relationship to time is not the same either. In front of our screens, we’re like difficult children; we can’t stand to wait 30 seconds for a page to download. In a store, we’re more willing to be patient and take the time to look around for a product we like. The fact is that on Internet we look for product information in a rational manner, yet we have an irrational relationship with the clothes we wear. This has a concrete impact on how we buy clothing. And this phenomenon has been accentuated by the success of the Ventes Privées sites. With prices marked down 70 percent and a calendar of constant sales, market prices in general no longer make any sense. Consumers know that a good deal is always available with a click. In summary, digital technology has shaken up ideas about prices, product value, and, more generally, our everyday relationship with the buying act. A new relationship needs to be created.
What should brands do to adapt to these major changes that some are calling a “revolution”? What kind of reforms should they integrate or adopt?
It’s true, talking about these evolutions is not enough. We’re witnessing the creation of a new economic, and even social, model. It was started by Facebook, which has become the world’s leading media with over 1.6 billion users. The paradox is that this media produces no content, every one of us is both consumer and producer. No traditional media has been able to adapt to this transformation. The arrival of data has also shaken up the situation. Before, almost no data existed. And now, everything is data. Brands are able to access infinite data, especially with CRM systems and other more inclusive analytic tools such as the Data Management Platform (DMP). This lets them create new relationships with their clients, which helps them to better adjust. So we’re seeing new models being created through digital technology. Brands based on the old model have to respond to these complex changes. How are they complex? Quite simply because at the same time they require new organization methods, new client relationships, and above all, an innovative vision for new business models. With the current drop in store traffic, even the value of lease agreements for stores no longer makes sense. We can clearly predict that, over time shopping centres should become appreciably smaller, which is already happening in the US.
Today, brands that only work through wholesale are often the most behind the times, since they have to get involved in retail and e-commerce at the same time. As for luxury brands, they enjoy a perfect image but they are often too slow in understanding the passing of time and changes. So it’s a real challenge for this group as a whole to have a clear vision and react to each innovation.
One constant which will certainly continue – shopping in stores should be a pleasure. There are still great reasons to visit stores, but the next model has yet to be invented. Nonetheless, I remain very enthusiastic about the future. France has exceptional start-ups and our product intelligence is a reference. Fashion tech will accelerate the establishment of a new fashion world!