Presently, Yoox Net-a-Porter Group (YNAP) greatly appreciates the value of investing in native mobile applications and social media, to which the company attributes 30% of its increase in revenues to 1.7 bn in the year ended 31st December 2015. The company has been building outstanding shopping applications since 2009, but TheNetSet, however, proved to be the game changer, as it availed an unprecedented online shopping platform that brought together the consumer, the designer, style leaders and leading fashion brands. The results of such integration couldnt have been anticipated.
As the CEO, I already acknowledge that mobile sales contribute at least 40% of our total sales.
I cannot fail to take into consideration our long-term strategic partnership with IBM, which is aimed at enhancing our focus on delivering customer-centric innovation and step-change omni-channel capabilities CITATION Bus16 \l 1033 (Business Wire, 2016). This move was motivated by the following factors:
To be delivered with a single shared technology platform across all our multi-brand online stores
To catalyze our post-merger system integration process
To propel in-house development efforts to the vanguard of online luxury fashion retailing innovation
Notable structural changes:
Already, theres a Fashion & Luxury Innovation Committee in place, comprising of YNAP staff and our brand partners meant to contribute ideas to IBMs development team.
More so, some members of YNAP will soon join IBMs Customer Advisory Council (an exclusive group of IBM customers), whose input is anticipated to directly impact IBMs future product development.
Change in the inventory and order management system as detailed below:
We intend to implement IBMs Order Management System, which we anticipate will, with time, help us achieve seamless inventory integration and inventory management between us and our retail network and other distribution centers. Through this we expect to avail more services to the customer such as in-store, pick-up, same-day, or home delivery within an indomitable time frame from the nearest store. Currently, same-day deliveries are only available in London, Manhattan and Hong Kong. This is projected to help develop a single customer view, regardless of their touch/access point. Collectively, this should help significantly boost sales, courtesy of the efficiency availed by the platform, and the consequent customer satisfaction.
Presently, our inventory management and warehousing efforts are in a number of ways duplicated and not as efficient, because of no system integration. However, having access to a single global virtual inventory would mean only stocking what is needed, when needed. This should improve efficiency and help save on such costs by an estimated 40%. This is because I would anticipate releasing some of the presently underutilized storage space & making better use of remaining resources.
Shifting from a whole sale distribution structure to a direct-to-consumer structure, courtesy of embracing e-commerce trends has been estimated to triple, or even quadruple margins, not to mention data and brand-control control CITATION Bus15 \l 1033 (Business Of Fashion , 2015).
In conclusion, I would anticipate a growth in sales 30-45% over the next five years, working by the estimates for all online retail sellers by Boston Consulting Group and our own success (30% revenue increase) of 2015. More so, online presence has been estimated to influence at least 50% of buying decisions CITATION Bus15 \l 1033 (Business Of Fashion , 2015). This should come to revenues of about 2.38 bn by the end of the fifth year (working with a 40% sales increase).
BIBLIOGRAPHY Business Of Fashion . (2015, September 23). Who's Winning the Fashion E-Commerce Race? Retrieved from http://www.businessoffashion.com/articles/bof-500/online-sales-e-commerce-net-a-porter-yoox-farfetch
Business Wire. (2016, March 7). YOOX NET-A-PORTER GROUP and IBM Forge a Game-Changing Partnership to Create the Future of Online Luxury Fashion. Retrieved from http://www.businesswire.com/news/home/20160307005751/en/YOOX-NET-A-PORTER-GROUP-IBM-Forge-Game-Changing-Partnership
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