How niche e-tail sites are changing the way we shop online

Shoppers are increasingly scoping the web for independent labels, brands and companies that they may not have access to in their local bricks-and-mortar stores.

Wolf & Badger, which stocks clothes and accessories by independent design talent, relaunched its online-shopping website in 2013. Courtesy: Wolf & Badger

The 21st-century luxury-shopping experience can now almost entirely come down to the click of a button, and an ever-growing number of high-end brands across the world are offering their wares online. Even the traditionally digital-averse House of Chanel has announced plans to finally launch an e-commerce platform, with reports saying that this could come online next year.

Although the likes of Net-a-porter and MyTheresa helped pave the way for this age of digital purchasing, there are a number of lesser-known e-commerce sites that are now looking to take the e-tail experience and turn it on its head. Roberta Benteler, founder and managing director of London-based Avenue 32, believes that her company's smaller stature allows it to offer a more personalised experience, granting exposure to emerging and niche brands that clients might not otherwise come across. "As a small business, you really know what your clients are looking for. And this of course affects what we offer," says Benteler.

She adds that sites that are less established can also take greater risks on smaller labels. So while Avenue 32 features recognised names such as Derek Lam and Alexander Wang, it also stocks a number of emerging designers, such as Ekat and the American-Iranian designer Leila Kashanipour’s jewellery brand, LeiVanKash.

London-based Wolf & Badger has gone so far as to embed this "risk-taking" mentality into its company's ethos. Its stock consists entirely of independent labels from the UK and beyond. "We are able to introduce customers to the next generation of luxury brands, which they have often never seen before in local stores or even in big, international shops," explains chief executive and co-founder George Graham. The brand has bricks-and-mortar stores in Mayfair and Notting Hill, but relaunched its website in 2013. The site now carries more than 400 independent labels from around the world, including several regional designers, such as the Beirut-born Nayla Arida.

Although smaller sites are able to take bigger chances, they must be extra attuned to the changing demands of an increasingly discerning customer base. Always on the go, constantly connected and expecting access to the latest and best products and services, anytime, anywhere, today’s online consumers have morphed into a rather unforgiving bunch.

Where simply visiting a site to purchase this season's "must-have" handbag was once acceptable, customers now want to be given a reason to invest their hard-earned money. Newer sites are taking note of this shift and building editorial content and blog posts into the consumer experience from the get-go (while well-established sites such as Net-a-porter are also developing their content offering). Benteler explains that these articles, interviews and label profiles add a certain element of "romance" to the clothing that you don't necessarily get from images. It also allows for introductions to be made to newer labels. "Our editorial team produces a number of features on the best up-and-coming brands that are new to our store," explains Graham. "Everything from interviews with designers to trend reports keep the customer well informed and up to date on what – and who – is in style. And, of course, if you like what you see, there's nearly always a direct link to 'shop the story'."

Established sites, too, are having to evolve to keep up. There is no opportunity to rest on one’s laurels in this ever-shifting online landscape.

Ulric Jerome, the chief executive of London-based MatchesFashion, is all too aware of the demanding nature of online retail and just how difficult it is to remain at the forefront of the industry. "It's important for the larger sites, like ours, to be constantly agile and innovative – the pace of the online world means you can never sit still." The company, which has had an online presence since 2007, decided to relaunch its website this year to be fully functional on all digital platforms. "This means our site will look the same on a mobile device as it will on a computer," says Jerome.

This move to smart devices is an obvious progression. Shoppers are connected 24/7 and can purchase luxury items from just about anywhere, be it on a train or in the air. Yet, as obvious as this move might seem, it can also have an incredible and immediate impact on sales. José Neves, founder and chief executive of London-based Farfetch can attest to this, revealing that "mobile and tablet sales account for around 40 per cent" of business. And his site isn't alone. Avenue 32 has seen a 400 per cent increase in traffic on smartphones, while 35 per cent of MatchesFashion's sales now come directly from mobile devices.

While web stores aim to meet the needs of those who shop on the go, less-established sites are harnessing the informal power of social media to try to communicate with their shoppers, regardless of their locations. Finding ways to interact with the customer is a particular challenge for smaller sites, says Graham. Platforms such as Instagram also offer inspiration, he adds, introducing shoppers to “something new that they would not necessarily have known they were looking for”.

Interestingly, in the Middle East, online shoppers are more likely to look to international e-commerce sites, than those closer to home. Given the region’s obvious predilection for luxury products, it seems surprising that there is such a limited number of successful, home-grown, luxury e-commerce sites here.

Odd as this may seen, it is actually a reflection of social and cultural trends, says Euromonitor research manager Nikola Košutic. “Luxury-goods websites are not easy to establish, maintain or promote,” he says, pointing out that a high availability of luxury brands throughout the region and the fact that malls are an integral part of the social experience in this part of the world, mean that regional consumers are still more likely to shop for big-name brands in bricks-and-mortar stores, and are less likely to shop from locally spawned e-commerce sites.

Instead, regional shoppers are drawn to international sites, and smaller ones at that, since they offer something that cannot otherwise be accessed. Graham reveals that there has been a “significant proportion of online sales coming from this region – about 10 per cent”, while Benteler has seen orders from the Middle East grow by “45 per cent, year on year”. Meanwhile, Farfetch’s Neves will be supporting Style.com/Arabia’s Dubai Design & Fashion Council fashion prize, while MatchesFashion’s Jerome is already planning the brand’s next trip back to the region after previous fashion shows in Saudi Arabia, Qatar and Dubai.

As new sites emerge, the online-shopping experience will continue to evolve. And yet, indicators point to the future of retail as not being “purely online”, according to Neves, but instead “a seamless merge of a fantastic physical experience with powerful, yet subtle technology”. Graham adds that the combination of an appealing physical store and strong online presence is essential. From this, he says, the phrase e-commerce will eventually cease to exist, and simply be known as “commerce, plain and simple”.