HOW TO USE 3D BODY IMAGING TO INNOVATE

IN THE APPAREL OR FOOTWEAR INDUSTRY

Jon Cilley
Chief Evangelist
 Agenda
• Defining the Ghost Economy
• 2016 Apparel & Footwear Retail Survey
• Recommendations
• Questions

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 About
Jon Cilley
Chief Evangelist at Body Labs

Author of the 2016 Apparel & Footwear Retail Survey Report

4 years head of Carbon Black product marketing & competitive intelligence
4 years government public relations officer & spokesperson

Twitter: @JonCilley
Email: jon.cilley@bodylabs.com
Podcast: soundcloud.com/bodylabs

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 $1.2 Trillion
global fashion and apparel industry

$250 Billion
annual spend on apparel and footwear

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 Within this industry there are hidden
costs and challenges

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 The “Ghost Economy”
Largely unseen costs by retailers

1. Overstocks
Out-of-Stocks Returns
$634.1B $642.3B
2. Out of Stocks

Overstocks 3. Returns
$471.9B

— IHL GROUP

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 The “Ghost Economy”
Largely unseen costs by retailers

1. Overstocks
Out-of-Stocks Returns
$634.1B $642.3B
2. Out of Stocks

Overstocks 3. Returns
$471.9B

— IHL GROUP

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 The “Ghost Economy”
Largely unseen costs by retailers

Out-of-Stocks Returns Returns

$634.1B $642.3B

• 49% of Ghost Economy in US

Overstocks • $62B returned due incorrect fit in 2015

$471.9B

— IHL GROUP

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 The “Ghost Economy”
Largely unseen costs by retailers

Store Online
70

$8.4B
52.5 $54B
Returns
35
• Online penetration only 10%
17.5
• Returns are a huge issue online

0
Returns Due to Wrong Size
— IHL GROUP

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 The Catch-22 of Free Online Returns
Free Returns = Higher Conversions

49% of Retailers Now Offer

Free Online Returns

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 The Catch-22 of Free Online Returns
Free Returns = Higher Conversions Higher Conversions = More Returns

49% of Retailers Now Offer “Unfortunately it’s the cost of doing

Free Online Returns business in the e-commerce world.”
— Gordon Glazer, a Shipware consultant (via WSJ)

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 So What Do We Do About This?

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 2016 Apparel & Footwear Retail Survey Report

From April 6 – 14, 2016, Body Labs conducted a nationally-

representative survey of 1,130 respondents regarding their retail
purchasing behaviors. Survey participants ranged across all adult age
groups, genders, U.S. regions, ethnicities and household incomes. The
results have a +/- 3 percent margin of error.

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 Shopping Preference
How Frequently Do You Shop for Clothing or
Footwear?

32% shop for clothing at least 49%

once a month 44%

27%

16%
13%
11%
9% 9%
5% 5%
4% 4%
3%
1% 0% 1%

Daily A few times a A few times a Once a month Once every A few times a Once a year Never
week month other month year

Apparel Footwear

bodylabs.com

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 Shopping Preference
How Frequently Do You Shop for Clothing or
Footwear?

32% shop for clothing at least 49%

once a month 44%

27%
59% prefer shopping in
store compared to online 16%
13%
11%
9% 9%
5% 5%
4% 4%
3%
1% 0% 1%

Daily A few times a A few times a Once a month Once every A few times a Once a year Never
week month other month year

Apparel Footwear

bodylabs.com

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 Reason for Preference?

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 Reason for Preference?

76% try on clothing before purchasing

91% try on footwear

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 However…

46% “hate” trying on

clothing in a fitting room

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 What Does This Mean?

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 People ultimately understand the value,
but typically hate the process itself

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 23% of all clothing
purchases get returned

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 Main Culprit?
What is Your Biggest Reason For Returning Clothing or
Footwear?

64%

57%

64% say poor fit

17%
13% 12%
10% 10%
9%

3% 4%

Poor fit Poor quality Did not like style Changed mind Other (please specify)

Apparel Footwear

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 A third of consumers are
dissatisfied with the fit of
traditional sizes

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 And…
57% of consumers only
purchase apparel or footwear
online from brands or styles
they know will fit.

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 Why?

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 Brands try to fit 7 billion
people into fewer than 10
(female/male) sizes

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 They also still use traditional
methods to approximate size
and shape

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 Still using singular fit
models and linear grading
rules for different sizes

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 The Benefits and Challenges of Tech Packs

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 Reasoning for Constrained Sizes

Missing essential customer data

and manufacturing is still labor
intensive and costly

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 Recap So Far…

1. Ghost Economy is a major problem

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 Recap So Far…

1. Ghost Economy is a major problem

2. Returns are a huge factor

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 Recap So Far…

1. Ghost Economy is a major problem

2. Returns are a huge factor
3. Fit is a major component of high return rates

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 So What’s the Solution?

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 3 Steps for Success

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 3 Steps for Success
1. Efficiently capture, store and analyze your
customers’ body shape and measurements at scale

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 3 Steps for Success
1. Efficiently capture, store and analyze your
customers’ body shape and measurements at scale
2. Seamlessly correlate captured customer shape or
measurement data with technical clothing designs

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 3 Steps for Success
1. Efficiently capture, store and analyze your
customers’ body shape and measurements at scale
2. Seamlessly correlate captured customer shape or
measurement data with technical clothing designs
3. Validate customer preference with external virtual
try-on features in-store or online

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 1
Efficiently capture, store and
analyze your customers’ body
shape and measurements at scale

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 Laser Scanners
Pro: Highly accurate

Con: Expensive deployment, user

adoption not likely and immobile

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 Depth Sensors
Pro: Highly mobile, accurate, inexpensive (compared to laser
scanning) and seeing consumer adoption

Con: Lower quality than laser scans and user adoption still early

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 Challenges with
Laser Scanners or
Depth Sensors

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 Rigid and Cannot
Be Reposed

Data Missed by
“Hole Filling” Approaches Scanner/Sensor
Challenges with Join Data Incorrectly

Laser Scanners or
Depth Sensors

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 Measurements
Pro: Very inexpensive and scalable

Con: Prone to human error

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 Consumers won’t accurately take needed
measurements of themselves at scale

High probability to be taken from

inconsistent locations

Challenges with
Measurements

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 With All 3 Solutions, You
Still Need a Way to Process
the Data

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 At Body Labs, we take the RAW
data from scanners, depth
sensors or measurements and
process it into a MODEL the
computer can understand

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 At Body Labs, we take the RAW
data from scanners, depth
sensors or measurements and
process it into a MODEL the
computer can understand

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 Rigid and Cannot
Be Reposed

“Hole Filling” Approaches

Join Data Incorrectly

Data Missed by
Scanner/Sensor

Remember all those anomalies

with the scanner, depth sensor
or measurements?

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 Rigid and Cannot
Be Reposed

“Hole Filling” Approaches

Join Data Incorrectly

Data Missed by
Scanner/Sensor

They’re gone with a body model

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 We Can Also Use the Same Approach
Using Basic Known Measurements
This approach has delivered
(No Scans Required)
sub-centimeter accuracy

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 2
Seamlessly correlate captured
customer shape or measurement
data with technical clothing designs

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Extract Measurements
from Body Model of
Customer

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Extract Measurements Correlate Measurements from
from Body Model of Body Model with Measurements
Customer in Tech Pack

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 Recommend Size or
Develop Custom Clothing

Extract Measurements Correlate Measurements from

from Body Model of Body Model with Measurements
Customer in Tech Pack

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 Hidden Benefits of Collecting Your
Customers’ Body Shape and
Measurements at Scale

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 Inform Design
Everyone Who
Average SMALL
Purchased SMALLS

Design in
3D CAD Program

Everyone Who
Average LARGE
Purchased LARGES

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 3
Validate customer preference
with external virtual try-on
features in-store or online

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 Validate with Virtual Try-On

Preference is More
than Just Fit

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 If You Solved Fit Issues

85%
would purchase more
during a single transaction

58%
would purchase more
frequently

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 Recap: 3 Steps for Success
1. Efficiently capture, store and analyze your
customers’ body shape and measurements at scale

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 Recap: 3 Steps for Success
1. Efficiently capture, store and analyze your
customers’ body shape and measurements at scale
2. Seamlessly correlate captured customer shape or
measurement data with technical clothing designs

bodylabs.com 62
 Recap: 3 Steps for Success
1. Efficiently capture, store and analyze your
customers’ body shape and measurements at scale
2. Seamlessly correlate captured customer shape or
measurement data with technical clothing designs
3. Validate customer preference with external virtual
try-on features in-store or online

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 Thank You
Questions?

Jon Cilley
Chief Evangelist at Body Labs

2016 Apparel & Footwear Retail Survey Report Link:

bodylabs.com/resources/white-papers/2016-apparel-footwear-retail-survey-report/

Twitter: @JonCilley
Email: jon.cilley@bodylabs.com
Podcast: soundcloud.com/bodylabs

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