All the answers to the main questions of the shops. Interview with the founder of E-POP MODE
In a changing market where independent boutiques face many challenges, E-POP Mode offers an innovative solution: a phygital corner dedicated to French fashion. This approach combines the flexibility of digital and the tactile experience of physical, while meeting the needs of retailers and the expectations of consumers.
Vincent Gnemmi, founder of E-POP Mode, shares his vision by addressing the main concerns of stores: profitability, attractiveness, use and ease of implementation.
One of the main questions concerns internal competition or cannibalization which often comes up as we continue to talk to each other, that " the customer who buys an E-POP Mode item does not take the one that is already in the store."
This is a legitimate question! The stores we collaborate with generally choose models that are different from what they already have, and enrich their offer. Our items complement their collections: a merino wool sweater, organic cotton streetwear pants, a Normandy linen t-shirt, a skirt with unique patterns, accessories, etc. made in France and in limited series, pieces that bring something new without disturbing the balance of their assortment.
E-POP Mode is not intended to fill a store. The store can only present one model if it wishes, but on average we see that a corner represents 5 items on a rack in the store, and at this level we are talking more about additional sales, or ephemeral capsules that bring a novelty effect to the store.
A customer who buys an E-POP Mode model usually does so for a specific occasion or because she is looking for something rare.
On the other hand, in-store items that meet more regular needs will continue to appeal to customers. What is interesting is that the novelty effect often attracts additional customers.
The transition is perfect to answer the question “ How do I make sure this device really attracts new customers?” There are several answers to this question:
The first is that the phygital experience intrigues , especially modern consumers who appreciate the combination of physical and digital. In store, the customer sees, touches, tries on the model, and it is delivered to her home as if by magic. This experience brings her a certain comfort, with a very reasonable delivery time of 48 to 72 hours.
The models distributed by E-POP Mode are exclusively made in France, and there is a clientele sensitive to this relocation , ready to spend a few extra euros to support French industry. We are seeing some successes around us (1083, Sessile, Le pull Français, St James, etc.). And despite the crisis, more than eight out of ten French people say they buy Made in France products (85%) (1). These statistics are all the more interesting for stores, as it is the people who have more purchasing power who are the biggest consumers with 35% (1).
The collections offered by E-POP Mode are made in small series by designers who are already semi-industrialized or industrialized. The models offered are relatively rare and attract a curious clientele, often looking for unique pieces.
And there are those who already know the designer, who admire their work, but who have not yet had the opportunity to try their latest model often because of the geographical distance. Once in the store, the designers communicate on their social networks, to their subscribers, the names and cities of the stores in which their models are visible. The store thus aspires to receive many new visits to discover these designers.
And then just as importantly, the collections presented are ephemeral and are generally renewed every month, by the store that wishes. This creates a regular novelty effect that builds loyalty among customers who discover new designer models.
Finally, by communicating well about your collaboration with E-POP Mode on your social networks you can easily generate additional traffic in store. We have created a Media Center dedicated to stores to facilitate their communication. The store selects the desired media (photos, videos) to record and broadcast it on its social network with or without its logo.
Some stores are concerned about the time it will take to explain how it works to customers . "I'm afraid the phygital system will take too long to explain."
We provide clear communication supports to accompany the explanations of professionals, flyers and POS. In a few minutes, the trader shows his customers how to order, and they will quickly become independent. Our system is very intuitive:
An order is made in 3 clicks . The customer scans the QR code with the camera of her smartphone to access the digital space dedicated to the store. She finds the model, selects its characteristics (color, size), validates her basket and pays with her favorite Apple or Android application, Paypal, Shop Pay, or her registered credit card.
“And if you are worried that your customers don’t know how to use their phone to order.”
This is a common remark, but the reality is different. Moreover, I found statistics from INSEE (2) : 85.6% of 15-29 year olds bought online in 2023, 89.7% of 30-44 year olds , 77% of 45-59 year olds , 55% of 60-74 year olds and 20% of 75 year olds and over. The biggest increase is among those aged 60 and over with an increase of 144% over 10 years.
Today, a majority of consumers, even the least tech-savvy, are familiar with online or app-based shopping (M-Commerce accounts for 72% of global e-commerce sales). For those who are hesitant, the role of the retailer is to support them during their first order, to transform apprehension into a positive experience.
Additionally, the system is designed to be simple, with clear guides and personalized support if needed.
Recently a shop gave me feedback on the use of a first order " The customer who ordered with me, profile 45-50 years old who bought a garment for his wife . Very comfortable with the QR code and seduced by the concept, really nothing to say . " - L'Etal de l'hexagone (Tarbes). Thanks Benjamin 😉
“What do I do when my customers want to take the item they purchased back with them?”
Immediacy is indeed important for some purchases, but it is not systematic, especially for exclusive and limited pieces. Many customers prefer to wait a little for a quality and unique product that they will not find in your area.
We designed the system to offer a seamless experience: delivery times are as fast as traditional e-commerce (48 to 72 hours), and customers can return to the store to collect their order if they wish, thus strengthening their loyalty to your store.
The profitability of the system is often questioned by traders. Some "imagine that the margins are less interesting with E-Pop Mode products"
Not at all! In reality, each sale of an E-POP Mode product earns you a commission representing approximately 50% of your usual gross margin, or 75% to 99% of your net margin on all sales (calculated on a coefficient of 2.5).
What changes is that you do not have to buy stocks, nor bear the costs of inventory, storage, cash immobilization, unsold stock risks, and potential after-sales service. By measuring the commission and the savings, you are profitable.
I will take a concrete example of a sweatshirt sold at 95€ public price. Based on a coefficient of 2.5, the store buys it for 38€ excluding VAT from the manufacturer. When selling, the store's margin is 41€ excluding VAT gross (49€ including VAT) from which you have to subtract logistics costs, shelving, fixed costs, personnel costs, etc. and storage costs because there are generally minimum orders. Deduct 30% to 50% to obtain a net margin of 20.50€ excluding VAT to 31.53€ excluding VAT for this sweatshirt.
It is also necessary to take into account a cash immobilization, as long as the item is not sold, and to consider the risks of unsold items. Finally, this sweatshirt which has a cost, can only be sold once.
I will take the example of this sweatshirt marketed this time with E-POP Mode. The presentation model is purchased by the store at the reseller price (coef. 2.5). Generally, stores take 2 to 3 sizes. These models will find their place directly on the racks, so there is no stock.
In store, and with E-POP Mode, the same model can be sold 1, 2, … 10 times, and the store is commissioned as many times as there are sales. The sweatshirt sold for €95 including tax brings in a net margin of €19.79 excluding tax (€23.75 including tax) X the number of sales for each sale.
If the net margin is practically identical to the first sale, with a difference of only €0.71 excluding VAT, it is very largely profitable from the second sale since the model was not purchased by the store. The cash comes in without taking any risks .
The €95 including tax sweatshirt sold 10 times allows the store to receive a commission of €197.90 excluding tax (€237.50 including tax) by having purchased only the presentation model at the distributor price, which it will then resell.
In addition, from 5 items, the store receives a monthly contribution to the rent , which increases with the number of items displayed. It is therefore a double advantage: an income on each sale and an additional fixed source.
E-POP Mode is precisely designed to reduce the costs and initial investment of stores. And at the same time, frees up cash and space to invest in higher value-added product categories, such as decoration or accessories, while boosting the textile department with an innovative concept.
"But what if the customer doesn't complete their order in store?" Even if the order and payment only take 1 or 2 minutes, we have planned for this scenario, so that the store gets commission anyway.
In the first case , the customer orders and pays in your store, this is the normal process, we identify you and you receive the commission.
In the second scenario , the customer decides to finalize her order later, at home, up to a few days, you are also identified and you receive the commission.
3rd case , the customer directly accesses E-POP Mode from her favorite search engine, to find the model she wishes to purchase. In this case, and to be delivered, the customer is required to indicate the postal code of the prescribing store. The store is then identified and benefits from the internet sales commission.
“I have the green sweater in the store and my customer wants the yellow one.”
If it is available, your customer can easily find it on the platform dedicated to your store, by scanning the QR-Code. The model presented on the rack is a presentation copy, but your customer has access to the entire catalog. You will not miss any sales, even if the model is not presented in the store.
Finally, regarding the installation of an E-POP Mode corner, some stores fear a complex or restrictive installation. "Does installing an E-Pop Mode corner require a lot of work?"
The installation does not require any redevelopment, and all communication supports are provided: the necessary signage to be put in place on the hangers, and the counter POS (15x21cm) to display the QR-Code and we support you in getting started. The integration is designed to be smooth and without disruption to your organization.
“How much does it cost”: What’s more, it’s free, there’s no subscription, no fees, no minimum order, and no time commitment.
Why choose E-Pop Mode?
In conclusion, adopting E-POP Mode means betting on a solution that combines innovation and pragmatism. Stores increase their profitability by reducing their costs and diversifying their offer. They attract new customers while retaining their current customers, and above all, they promote the creativity and know-how of French fashion. With E-POP Mode, they transform their space into a dynamic place where novelty comes to life every day.
(1). https://www.cci.fr/actualites/enquete-les-francais-et-le-made-france
(2) https://www.insee.fr/fr/statistiques/2498792
