Just reading through Next half yr report and came across this29 Sep 2022 09:57
Nexts go at ingenuity for clothing companies very telling that they are now focusing on large clients
TOTAL PLATFORM (TP)
PROGRESS
In February 2022 we launched Reiss, our largest client to date. In addition to its size, Reiss TP also
encompasses a greater number of services than any other client - operating services such as
wholesale fulfilment in the UK and overseas, a mobile app, translated websites and will soon include
bonded warehousing. In August we launched GAP’s TP website, alongside retail services for a small
number of new GAP stores. We plan to launch UK and international TP websites and retail store
services for JoJo Maman Bébé in spring 2023.
LESSONS LEARNED
TP is still in its infancy and we have learned some important lessons over the last six months. Most
importantly, we have focused on developing reusable software, using templates to speed up the time
taken to launch new partners, as well as making the management of multiple websites significantly
more efficient.
We now understand that TP, as currently configured, works best for brands that have a critical mass.
As a rule of thumb, TP is not suitable for clients with online turnover of less than £30m due to the
scale of the platform that is offered.
The effect of working with smaller clients on TP is similar to delivering a bedside table in an
articulated lorry. Our TP business is geared up for dealing with large worldwide data flows, high SKU
counts, big company security systems etc. The fixed costs associated with running such a high
capacity system have proven cost prohibitive for smaller clients. For these reasons, two of our
clients, Childsplay and Aubin, which account for around 10% of expected annualised TP33 sales, are
transitioning off TP to another third-party model that is more suited to their business size and needs.
The following analysis focuses on the continuing TP clients.
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