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    TECH301 Midterm Enrichment 1 Casestudy 1

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    Analiza Natividad
    Net-a-Porter is an online luxury fashion retailer founded in 2000 that proved women would purchase expensive dresses online. It offered over 350 top designers not available in most stores. The site was highly successful, becoming profitable in its first year, and revenue grew rapidly with millions of weekly visitors from over 170 countries. It was purchased by a luxury company and later merged with another online retailer. The case study demonstrates how e-commerce transformed the fashion industry by allowing global access to exclusive brands.

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    TECH301 Midterm Enrichment 1 Casestudy 1

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    Analiza Natividad
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    Net-a-Porter is an online luxury fashion retailer founded in 2000 that proved women would purchase expensive dresses online. It offered over 350 top designers not available in most stores. The site was highly successful, becoming profitable in its first year, and revenue grew rapidly with millions of weekly visitors from over 170 countries. It was purchased by a luxury company and later merged with another online retailer. The case study demonstrates how e-commerce transformed the fashion industry by allowing global access to exclusive brands.

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    Net-a-Porter is an online luxury fashion retailer founded in 2000 that proved women would purchase expensive dresses online. It offered over 350 top designers not available in most stores. The site was highly successful, becoming profitable in its first year, and revenue grew rapidly with millions of weekly visitors from over 170 countries. It was purchased by a luxury company and later merged with another online retailer. The case study demonstrates how e-commerce transformed the fashion industry by allowing global access to exclusive brands.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    37 views3 pages

    TECH301 Midterm Enrichment 1 Casestudy 1

    Uploaded by

    Analiza Natividad
    Net-a-Porter is an online luxury fashion retailer founded in 2000 that proved women would purchase expensive dresses online. It offered over 350 top designers not available in most stores. The site was highly successful, becoming profitable in its first year, and revenue grew rapidly with millions of weekly visitors from over 170 countries. It was purchased by a luxury company and later merged with another online retailer. The case study demonstrates how e-commerce transformed the fashion industry by allowing global access to exclusive brands.

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    TECH301 - Technopreneurship

    Midterm Lesson 1-2

    Enrichment Activity 1
    CASE STUDY 1

    EC APPLICATION NET-A-PORTER: DRESS FOR SUCCESS


    Will a woman buy a $2000 dress online without trying it on? Net-a-Porter (a UK online retailer,
    known as “the Net”) bet on it and proved that today’s women will purchase their dresses (for
    success) online, especially if the luxury clothing and accessories are international brands such
    as Jimmy Choo or Calvin Klein (see Pressler 2015).

    The Opportunity
    When talking about e-commerce (EC), most people think about buying online books, vitamins,
    CDs, or other commodity items. And this indeed was what people bought in the mid-1990s,
    when EC began. But in 2000, Natalie Massenet, a fashion journalist, saw an opportunity because
    of the success of luxury online stores such as Blue Nile and the fact that professional women
    are very busy and willing to do more purchasing online.

    The Solution
    Natalie decided to open an online business for luxury fashion. She created a comprehensive,
    socially oriented, e-tailing site, naming it Net-a-Porter. According to net-a-porter.com, some
    experts, and the company:
    ● Opened an e-tailing store.
    ● Offering merchandise from over 350 top designers, where most offline stores offer a few
    dozen.
    ● Offered its own designs in addition to others.
    ● Arranged global distribution systems to over 170 countries.
    ● Opened physical stores in London and New York to support the online business.
    ● Arranged same-day delivery in London and New York and overnight delivery elsewhere.
    ● Organized very fast cycle time for producing and introducing new clothes and other
    products that match customers’ preference.

    Devised prediction methods of fashion trends based on customer feedback through social
    media.

    ● Ran online fashion shows.


    ● Developed superb inventory and sales tracking systems based on dashboards.
    ● Offered an online fashion magazine.
    ● Discovered what customers really want via social networks and fulfilled their needs.
    ● Offering large discounts.
    ● Developed a presence on Facebook and app for iPhone.
    ● Has 771,000 followers on Google + (February 2017).
    ● Has 6 million visitors each month (February 2017).
    ● Experiences 750,000 downloads per month on iPhone.
    ● Started augmented reality shopping windows in several global cities as of 2012 (see
    digitalbuzzblog.com/net-a porter augmented-reality-shopping-windows).
    ● On this same site, you can watch the video “Window Shop'' and download the Net-a-Porter
    iPhone/iPad app.
    ● As of 2010, the company is taking advantage of the social media environment that is
    changing the fashion industry.

    The Results
    Customers now come from over 170 countries, and revenue and profits are increasing rapidly.
    Several million visitors come to the site every week. The “Net” became profitable after 1 year—a
    very rare case in e-tailing. During the economic crisis of 2009, the Net’s total sales were up 45%
    versus a 14% decrease for one of its major competitors (Neiman Marcus; Web and paper
    catalog sales). The company was so successful that luxury goods company Richemont Corp.
    purchased a 93% stake in the business.

    In October 2015, the company merged with the YOOX Group (yooxgroup.com). In June 2010,
    when the company celebrated its tenth anniversary, it opened a new website dedicated to
    menswear. With success comes competition, and the Net’s competitors include Bluefly (low
    prices), Shopbop (an Amazon.com company, but it lacks the Net’s prestige), and high-end
    department stores with their own online stores (Nordstrom, Neiman Marcus). However, the Net
    has the highest prestige and growth rate. A major threat may come from eBay, which has been
    reaching out to high end designers about creating their own virtual stores (hosted by eBay)
    where they can sell at fixed prices and also use auctions.

    Finally, note that in late 2010, Amazon.com created Amazon Fashion, a store that offers
    designer brands at a discount. To stay on top of the competition, the Net is planning new
    ventures and expanding its business model to include children’s clothes. Net-a-Porter is an
    example of the revolution that is occurring in the fashion industry.

    Questions :
    1. What kind of E-business models did Net-a-Porter use?
    2. Why would you buy (or not buy) from Net-a-Porter?
    3. List both the advantages and disadvantages of the Net’s physical stores.
    4. It is said that the Net is playing a significant role in transforming how designers reach
    customers. Explain why.
    5. Read the benefits of EC to customers. Which ones are the most relevant here?
    6. What EC capabilities are helping the Net and its designers?
    7. Analyze the competition in the high-end fashion market.
    8. What is the importance of globalization in this case?
    9. Imitators are springing up on all sides. Even eBay and Amazon.com are expanding their
    fashion e-tailing efforts. What strategy do you suggest for the Net-a-porter?

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