CASE STUDY REPORT

CASE STUDY REPORT

CASE STUDY REPORT

Introduction

In today's world the consumers are becoming more computers familiar and adopting usage of internet rapidly. The rise of e-commerce worldwide opens opportunity to retailors for marketing and selling their products online. Fashion products particularly clothing and accessories reported growth in selling online recently. Mintel a consumer research intelligence agency has published the rise in online fashion sale by………bn comes  % in UK  against it last year growth. Moreover, internet allows the new ways of selling parallel to their bricks- and- mortar model of retailing.

Retailers can create an optimum delivery solution that addresses these issues by placing MetaPack's Delivery Management System (DMS) at the heart of their delivery systems and processes.

Those retailers who invest in their delivery propositions can look forward to increased conversion, better margins and reduced costs, as well as improved customer satisfaction and retention.This report is aim to study a full functional web store contribution in the company's profit.

FIGURE 18: Estimated market share of online fashion sales, by channel, 2009

* excluding auction sites

SOURCE: Mintel

 

Company background

The first Next womenswear store was opened in 1982. In the UK, the retailer's channels of distribution are its chain of stores and its direct mail catalogue and online store Next Directory. Next claims that its online store has over two million active customers.

In the half year to July 2009, group sales were down by 0.8% at £1,512 million, while operating profits increased by 0.7% to £199.5 million. Next Directory sales rose by 1.7% to £386 million, with active customers growing by 2.8% to 2.26 million. For the 22-week period to December 24, 2009, Next Directory sales increased 6.8% compared to the same period in the previous year.

 

Online presence/services

Next introduced internet shopping in 1999. It sells to 22 European countries through a euro currency website, and countries such as New Zealand, South Africa and the United States through a dollar currency website. The next-day home delivery offered by Next is charged at £3.95. For Next Directory account holders, deliveries to Next stores are free of charge. Returns (within ten days) are free to stores, via post offices with a prepaid returns label or by courier.

 

Market positioning

Next has broad appeal to the 20-45 age group, who look for something 'fashionable, but affordable'. In 2009, Next has consciously moved to the trendier side of the market with a wider range of brands available via its website.

 

FIGURE 33: Profile of visitors to next.co.uk, by age, March 2010

  SOURCE: comScore/Mintel

 

FIGURE 34: Total unique visitors to next.co.uk, 12 months to March 2010

  

SOURCE: comScore/Mintel

Products

Next's ranges cover the whole wardrobe of men's and women's casualwear and careerwear as well as footwear and accessories. Most clothes are carried under the main Next brand, although partywear is offered under the Miss N brand and more premium items are offered under the Signature label.

Next's branded website area offers men's, women's and children's clothing, footwear and accessories from mainstream fashion brands like Firetrap, Replay, Lipsy and Original ...