The Evolution Of Loyalty: Preparing For The Next Generation Of Shoppers |
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The Evolution Of Loyalty: Preparing For The Next Generation Of Shoppers
With a billion millennials, Gen Z and Gen Alpha consumers entering the market over the next decade, retailers must reinvent their commerce models to capture a new generation of shoppers. This session was recorded at SAP Emarsys Power To The Marketer London 2023 in association with Vogue Business.
In this conversation, Jody Plows, Nobody’s Child CEO, reveals how they have evolved their content and omnichannel strategies to stay ahead of the pack, the opportunities for growth and how to build a customer-obsessed culture.
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So our final speaker is the CEO of Nobody's Child, an eco-conscious fashion brand which has sustainability woven into its fabric. To tell us how she's building a business that's fit for the future, please welcome up Jody Plows. Hi, Jody, thank you so much for joining us. How are you? I'm good. Hi, everyone. Thanks for having me. I just had an amazing marketing lesson, so thank you very much for that. Good. I'm so pleased you've enjoyed it so far. So Jody, tell us a little bit about your background because I know you started on the shop floor at 15 and you've worked for some of Britain's biggest retail brands from supermarkets through to luxury. So tell us a little bit about your background and your journey to Nobody's Child. Yes, that's right. 15 seems like a very long time ago but I did start on the shop floor and I absolutely loved it. So I loved the people, the pace and I am a product person. So all of that together for me was like a dream. So it seemed like the natural progression that I would go into fashion. So after university, I started my career as an allocator at River Island in the nineties. So that was really all about trading and speed and I learned a lot there, I just went through the ropes basically. Without going through all of my career in detail, I have worked with some amazing retailers. I probably keep it a bit real today on the panel. There are much more high street retailers and they had enormity and scale. I was very fortunate to work for some really inspirational leaders and visionaries. So the one thing that I was always really passionate about was driving positive change with any business that I was in, whether that was introducing flexible working, which was quite a moment after my second child in the FNF business and most recently sustainability. So when it comes to Nobody's Child, the stars were aligning, I'd like to say when I met Andrew Xeni who was the founder. There was this lovely small brand with a loyal base. No one had really heard of them, but I just knew there was loads of potential with this brand. And what Andrew had set up with his manufacturing background was a brand that was delivering ethical product at an affordable price point without compromising the integrity of the garment. And yes, there were sustainable brands and they were very premium and you could get a dress for £300+, but quite inaccessible to most customers. So collaboratively we embarked on a journey of repositioning Nobody's Child to be a leader in affordable, responsible fashion. It's been the best three years, basically of my career. And can you tell us a little bit about how you've put sustainability into the heart of business operations at Nobody's Child? Yeah, I mean, quite simply, it's the future of fashion, so you have to put it at the heart. I truly believe and so do my team that the decisions that we're making now will impact our future generations. And as a mum of two, that's something that really sits close to my heart. The fashion industry is a big polluter as we know it has a massive impact on the planet. We need to consume less, absolutely. At Nobody's Child, we're looking to capture a more considered customer, if you like. We want to take market share from unethical brands. So the best way to do that is to start with your fabric choice. The fabric choice is really important because it's up to 80% of the footprint of a garment. So choosing a sustainable fabric means you use less water, less chemicals, less carbon. You can ensure that it's from renewable sources. So we aim to be pioneers in the fabric space, always offering it at this affordable price point. But I couldn't do it on my own, so I took on an agency back in 2020. And they're three super women. Check them out. They're called The Right Project. They're headed up by Roxy. She was the brand director of Katharine Hamnett, and they basically hold my hand on all decisions and they've just taught me so much of this whole sustainability field which is constantly moving. Just when you think you're doing something right, you have to pivot. So The Right Project, together we've collaborated and we've got an ambitious roadmap in place. But it's a work in progress. So it's absolutely a journey. And can you tell us about some of the targets on that roadmap? Yeah, the targets are around, well, I'm really proud that 95% of the fabrics that we're using is certified sustainable with an 80% composition. So some brands will have a very low standard. Ours is very ambitiously high and we're working on the other 5%, we'll definitely be there by next year. We have a target around circularity. We have a target around carbon and waste. So yeah, each point. Yeah. And I think your latest campaign really and quite beautifully sums up that focus on timeless trends and sustainability. Let's play the video. And Jody, you mentioned that sustainability really starts with your fabric choices and of course it ends with the consumer. So how are you helping customers to make more considered purchases? We have to take them on that journey. This autumn we launched our first digital product passport, so to enable this, we collaborated with our technology partner Fabacus and ultimately we put a QR code on the wash care. So as an initial pilot, we've done this on the Fearne Cotton collection, which is 25 pieces of our autumn winter collection. And basically you scan on the QR code and it will give you a whole world of product details, and that takes you from raw materials all the way to the factory where the garment was produced. This is such an important part of our transparency and traceability journey because we thought we were very traceable, but this was a huge piece of work to go all the way through, all the way to the raw materials. And now we've done that piece of work and the team have worked that through, they're currently working on a project book. By 2024, the QR code will be on all of our garments. So really bringing that transparency into their purchasing of garments. Yeah, and I think that it gives the customer the information that they need to really understand where your garments are being manufactured from, where the raw materials came from and then where they had to be shipped to to be manufactured. And I don't think the majority of people really understand that where the fabrics coming from, the energy that it uses, it has water consumption on the QR code. It basically has lots of granular detail. Can you tell us a little bit about some of the initiatives you've launched around repair, rental, and resale, and what are some of the challenges you've come up against? Yes, so circularity is a really important part of a sustainable future, as we all know, and we're absolutely integrating that into our business model. We truly believe at Nobody's Child this starts with the design of the product. So we're designing into a product for a more circular future with the right responsible materials, but also the longevity of the product to make sure it can be reused, repurposed, and recycled. Alongside this, we have started some new initiatives. So we we offer repair with SOJO, we've partnered with them, which has been really successful. We launched in one of our stores and now you can use that service online. We launched a year ago with High Street, I know somebody from High Street was in the room and that's been amazing for us, we've been one of the top brands to rent, which really made us sit up at our price point bracket compared to premium. So that's been really good. And then we sell our pre-loved on eBay. But my vision is really clear that we'll be able to do all of this direct from our website. And I think the biggest challenge has been operationally setting this up. But by next year, I think I'm pretty confident we'll have all of that on our website. I know earlier this year you launched your first bridal wear collection as well. So tell us a little bit about how you're expanding into new categories and how you're building on the brand. Yeah, the beginning of the year we launched bridal and we also launched boutique. So bridal concept is basically centered around rewear. So the bridesmaids and the bridal dresses that we have a design so you won't just wear them to one occasion, you'll wear them to many occasions and we show you how to style those dresses after your events. And then boutique was us testing and trialing a more elevated collection, which is still great affordable prices, but more designed into with intricate detail and fabrications. And they've been really successful. Alongside this, we've launched other product categories, including denim, jersey, and knitwear and with every category, we approach it with the same consistency, ultimately, which is the materials and fabrications that we're using have to be as responsible as possible. If they're not responsible, we don't do it. We don't do PU. We don't really touch leather because of the traceability. Sequins are an absolute no, they're illegal in France, I think they'll be illegal here soon. So we've all got sequins in our wardrobes and we wear them. That's fine. Just don't buy new ones. So we don't play into all trends, but we're always thinking about this timeless design, longevity of the garment, and really just like a nice feminine handwriting, which is resonating with our customer. So I think step by step, we're becoming more of a lifestyle brand, I think it's a journey and a process that we're getting to. And you mentioned Fearne Cotton earlier. How transformative has that partnership into the brand and how has it helped with awareness and reach? Fearne Cotton. So Fearne was wearing the brand organically and she was buying the brand. She was a customer when I joined in 2019. I just love Fearne and everything about her. She's ageless and classless. She has the same values as us at Nobody's Child. So I said to the board of shareholders back then, when we're big enough, when we grow up, let's just get Fearne, like no one else. Let's just have Fearne. I know that will really work well with Fearne. So fast forward a few years, you could imagine how delighted I was sitting with Fearne working on our collection together. Yeah, it's been amazing. It's been hugely successful and I think to echo what the amazing marketing experts have been saying this afternoon, I simply put it down to it being authentic. I simply put it down to being the fact that people believe that she loves the brand. That we live in a world saturated, full of collaborations that are very unauthentic, that you don't truly believe that they would wear that brand or that retailer. But with Fearne, she wears those products in her collection and everything else of Nobody's Child. So it's been amazing for brand awareness, for reach. I mean, just simply a dream. And can you tell us more about some of the other initiatives and strategies you have in place to connect with audiences, build brand love, and really boost loyalty? I mean, when it comes to connecting with the customer, I think it's one of the most important points that I've taken away from this afternoon as well, because we really believe at Nobody's Child that we need to emotionally connect with our customer. And we do that at various points. And I'm so ambitious that I would like us to be able to dress any woman, anywhere, any age. That's quite a difficult thing to do. I think this year, the pop-up stores have been amazing for us. So all of the team worked in the stores so they could meet the customer, talk to the customer, get feedback. We could see mums and daughters coming to the store both leaving with product so that was a tick on being ageless. We would get feedback on our quality and our fit, which was really good for our product teams. And the festivals are the same, the Happy Place festivals, we could meet customers there. So I think that is really important in a physical space. We cherish our social channels. Our team do an amazing job of taking our customer on our journey I would say. Our brand journey, you get to see behind the scenes, you get to see the real people of Nobody's Child and that I think has worked really well for us. But ultimately it's been word of mouth. I mean, the start of building the brand was literally somebody at a barbecue or a wedding saying, I love your dress, and them saying, have you heard of this new brand? They're doing something different. And that's the bit that still gives me a warm feeling. It's just word of mouth. I'd love to talk to you a little bit more about your High Street presence because you were a digital-first brand, but you also have a retail presence in M&S and John Lewis, and you have an owned store in London. So how do you strike that balance between stores and e-commerce? Yeah, and I think we're on a bit of a journey still with that, because the stores are very new for us. So through our portfolio of partnerships, it's incredible. We're now in 100 stores in the UK. So that roll-out happened this year. We're in some of the highest footfall shopping centers in the UK, and that's through our partnership with M&S and John Lewis, and the team have done a really good job of executing that. And I think those partnerships have just strengthened our mission to get out and reach as many customers. We get to tap into their vast customer base, which is incredible. But to keep it really aligned with our online, because we are very digital first, to keep it aligned with that, our creative team work on this tone of voice, narrative, look and feel to make sure it's consistent across channels and I think that's just a work in progress all the time. And I know you've also launched in the US three partnerships with Anthropologie and Nordstrom. So tell us a little bit about those international expansion plans and where you're seeing the big opportunities. Yeah, it's been a busy year, I just felt like the brand was starting to grow momentum in the UK, so it felt like the right time to go and expand internationally. But it's been a very considered approach. So every time we enter a market we're looking at would our product resonate with the customer there? Is responsibility and sustainability important to that market? Where are they on that journey? Yeah, and I'm really proud that the team have launched this in U.S., Middle East, Australia, Europe, I can't remember where else. I think they're the big ones. Ultimately, I mean, Dubai, Kuwait, and Saudi have probably been the most successful and I suppose those markets are seeing amazing growth, but I feel quite optimistic for next year for the US and Europe. And what are some of the trends you're seeing around Gen Z? How is Gen Z reinventing retail? So the biggest message I would say for the Gen Z is sustainability. I've been very fortunate just recently to work at the London College of Fashion with the final year students on a circularity project and they are a bunch of changemakers essentially, and they were very passionate about this. They were thoughtful, considered, I felt from my first-hand experience, they want to be engaged and inspired and they want to give back. They want to change things and they want to give back. So my advice to anyone who's talking to them is to speak in that language, basically. And tell us a little bit about the future, what's coming next for Nobody's Child? Oh, gosh. I mean, yeah, well, I think I can say this. Next week, hopefully you'll be able to rent from our platform, which I think is pretty big news. So that would be a start of another journey for us. And the team at the moment really focused on next spring-summer and what that would look like for us. I think, you know listening to the other speakers today is a tough market for sure it is, and I think the customers are going to be much more considerate with what they buy but we just stay focused on what we do best at Nobody's Child. Brilliant. To finish off Jody, I'd love to play a quickfire round with you. So in one sentence, give me your opinion on the brands you most admire outside of your industry. Okay, so this is difficult. It has to be someone who's doing something innovative and sustainable. So I don't know if anybody buys Neat as their cleaning products, but I would advise you to do it because it's pretty amazing what they're doing and it's got a great purpose. So I would definitely amplify Neat. And then if I can say one other, Lucy Bee is doing the same in the skincare world. So I think there are some amazing brands that are emerging that want to do something different, so I champion them. Your view on AI. Well, yeah, I mean, I'm not an expert on AI, let's be absolutely clear, and I think it's absolutely fascinating and it was good to hear a bit of context this afternoon, but we are working on a couple of projects and so it's more about watch this space for us. And your most powerful piece of advice for other brand leaders? Remain humble. However well you're doing, just remain humble. Wonderful. Thank you, Jody. Any questions from the audience? So we've heard a lot about Gen Z today, you talked a lot about how you want the brand to be ageless and how do you maintain that more broader appeal? Yeah, it's a really good question. I feel lucky to have put together this diverse, amazing, ageless team that they have a young mentality because I don't like people putting an age on things. Everyone asks me, "what's your target market?" and I know amazing, sophisticated 50+ women that I want to dress, and we also want to dress 18 to 25-year-olds. So we just stay true to our handwriting and our DNA and that seems to be resonating with all ages at the moment. So going to stick with that. And is there any specific channel, I suppose, is a preferred channel? Is it through your wholesale distribution or how are they engaging with you? So, it's a really good question. So the customers that are buying from us are ultimately our customers, and then we're pretty much with most retailers now in the UK and our business is pretty much 50:50. So we are fortunate enough to understand our customers from those retailers because they share it with us. Obviously, Marks and Spencers is one of those and they're shareholder now of Nobody's Child, so we get some really good insight. I love how you said earlier that two generations of the same family will come in and buy outfits from you. It's great. Time for one more question. As a sustainably-focused brand, how do you tackle the category's problem with online returns to profit and planet? Yeah, it's a very, very good question. I would say that returns are actually the biggest challenge of the online world. It's not getting any better. It's a couple of components with this one because we're constantly looking at it. Firstly, it has slightly declined, this year we're tracking at 60% new customers to the brand, last year it was 80%, so it was wild last year. It's starting to level out. So we're doing a lot of work around fit, amplifying our sizing to our customer because we feel new, we just see customers buying two or three sizes when they first find the brand, so we're trying to do more and more work on that to keep it down, but it's really hard. The industry's created a customer who is over-buying, having it delivered, trying on at home, and then it's the norm to send it back. It's very unsustainable. I think the norm will be that we charge for returns to try and reduce that and then we can actually see, we've only just started getting this data, but we can see high-offending customers. But dresses is the area that's the risk. As we grow our other categories actually the returns rates are all coming down. So that's a positive. But again, I wish I had the answer to that. I just think it's a lot of hard work.