Hudson’s Bay Company (HBC) and Insight Partners have recently joined forces to launch Saks as a standalone ecommerce company. This bold move will rapidly expand Saks’ customer base in the growing online luxury fashion market and help the company become an even more formidable player in the ecommerce landscape.
This article will explore the specifics of this new venture and examine how it could help Saks to achieve its goals.
HBC and Insight Partners Launch Saks as a Standalone Ecommerce Company Set to Rapidly Expand Customer Base in Growing Online Luxury Fashion Market
Insight Partners and HBC are long-standing business partners that have leveraged the power of ecommerce to bring luxury fashion to customers worldwide. HBC is a far-reaching retail developer and operator with extensive history in North America and Europe. At the same time, Insight Partners is a leading global venture capital provider with holdings in numerous industries including fashion, food delivery, digital media, and software. Their partnership brings two decades of distinct consumer benefits and customer service insights, resulting in meaningful value-adds for Saks as a standalone ecommerce company.
The launch of Saks as an independent brand, parented by both HBC and Insight Partners under their joint venture agreement is widely considered a strategic move that will rapidly expand Saks’ brand presence in the growing luxury fashion market. Following decades of experience operating brick-and-mortar stores alongside ecommerce, Saks has refined its market focus on elevated apparel and accessory pieces from over 600 major design houses across nearly 100 countries. As part of their new joint venture agreement, HBC will continue to oversee all store operations. At the same time, Insight Partners guides tech infrastructure investments required for Saks’ ecommerce expansion initiatives going forward.
Overview of Saks
Saks is a new ecommerce company formed by Hudson Bay Company (HBC) and Insight Partners. As an online luxury fashion subsidiary of HBC, Saks will leverage the global retail leader’s customer base and market access to provide a unique shopping experience that captures the power of HBC’s trusted brand and its customer-centric approach.
Saks plans to rapidly expand its customer base and strengthen its status in the online luxury fashion market. Saks will focus on creating an emotionally engaging shopping atmosphere that exceeds customers’ expectations of convenience and value. This commitment to retail excellence will be further supported by HBC’s financial backing, to allow Saks to create a distinct identity among luxury fashion peers.
In addition, Saks will benefit from HBC’s wide-reaching global supply chains and unrivalled physical advantage in digital capabilities and retail support processes. Leveraging these resources, Saks intends to forgo substantial investments in enhancing supply chain processes or establishing an internal IT platform infrastructure traditionally required for competing retailers seeking similar growth objectives.
Securing customer trust with high-quality merchandise, unparalleled end-to-end transactional experiences, fast shipping capabilities, and simple return flows will be essential components in reaching those targets, thus positioning Saks as the premier online destination for luxury fashion products across all platforms including mobile, web and social channels.
Launch of Saks as a Standalone Ecommerce Company
HBC and Insight Partners have joined forces to launch Saks Fifth Avenue as an independent ecommerce company. The move is set to rapidly expand Saks’ customer base in the growing online luxury fashion market.
With the new launch, Saks will become a standalone ecommerce company, focusing on providing customers with premium, luxury items.
In the long run, let’s look at what this move could mean for Saks and the online luxury fashion market.
Goals of the Launch
The launch of Saks as a standalone ecommerce company marks an important milestone in the ongoing expansion of Hudson Bay Company’s digital footprint. On October 6, 2020, HBC and Insight Partners launched Saks Fifth Avenue OFF 5TH to expand its customer base in the rapidly growing online luxury fashion market. This new format will leverage existing resources to leverage digital technology while increasing its presence on social media platforms.
Launching Saks as a standalone ecommerce retailer aims to provide customers with access to luxury goods at discounted prices while unlocking incremental growth opportunities for the company into the future. Through this venture, HBC and Insight Partners hope to establish clothing and accessories brands embodying modern luxury fashion, including iconic labels such as Prada, Gucci and Dolce & Gabbana. The brand is taking initiative by offering free same day delivery in select US cities and free returns. In addition, customers can also shop through ‘Shop at Home’ services powered by third party partners providing enhanced convenience and access to luxury goods across multiple markets.
This launch positions Saks at the frontlines of digital commerce. It allows them to take advantage of increased customer loyalty and lifetime value through personalised experiences geared towards their desires for essential styling advice or an impeccable shopping experience anywhere in the world. It is estimated that this move may help establish Saks as one of leading players in global e-commerce within five years with figures projected at $10 billion in sales during this period alone.
Benefits of the Launch
The launch of Saks as a standalone ecommerce company, backed by HBC and Insight Partners, is poised to capitalise on the growing luxury fashion market and rapidly expand its customer base by providing customers with access to Saks’ broad selection of apparel, accessories and shoes. In addition, the new-ecommerce business model brings numerous benefits to customers, retailers and suppliers.
For customers, the launch offers greater accessibility and convenience. Customers will access a substantial online product selection with the same quality of merchandise sold in the stores. Furthermore, by purchasing Saks points or becoming a member of SaksFirst loyalty program, customers can access exclusive benefits that reward repeat purchases.
Retailers and suppliers will benefit from advanced analytics offered by its proprietary technology platform that offers real-time insights into customer preferences and inventory analysis, which presents various optimization opportunities in store operations or product replenishment processes. Additionally, retailers and suppliers will receive greater exposure for their Brand presence with consumers due to increased digital advertising investments for compelling ecommerce experiences directly at their fingertips without having to leave home or work.
Rapid Expansion of Customer Base
The launch of Saks as a standalone ecommerce company by HBC and Insight Partners signals rapid growth potential in the online luxury fashion market. With this move, Saks is set to expand its customer base rapidly by leveraging its current strengths in luxury fashion products and services, while expanding its reach to customers worldwide.
Let’s look at some of the details of this launch.
Targeted Audience
HBC and Insight Partners have launched Saks as a standalone ecommerce company to capitalise on the growing online luxury fashion market. The newly formed company will emphasise targeting affluent customers in key global geographies including the United States, Canada, and Europe, where it has already opened up ecommerce sites in the UK and Germany.
To attract new customers, Saks will employ various tactics such as leveraging digital marketing campaigns, leveraging data analytics to better understand customer preferences, utilising influencer marketing and offering exclusive collaborations. In addition to its digital efforts, Saks plans to launch brick-and-mortar store locations in select cities globally which should further expand its customer base. Furthermore, through partnerships with leading luxury retailers like Neiman Marcus and Harrods, they may tap into existing customer bases that value quality fashion offerings.
By establishing itself as a leader in the growing online luxury fashion market with innovative campaigns, partnerships, data analytics and more, Saks is well positioned to rapidly expand its customer base in 2020 and beyond.
Marketing Strategies
Marketing strategies are essential to the success of any business, and even more so for a newly launched ecommerce project. HBC and Insight Partners have crafted a comprehensive plan to quickly expand the potential customer base of Saks, leveraging their expertise in online retail, branding, and marketing.
One major strategy involves utilising influencers and celebrity placements on social media platforms like Instagram and Twitter to create brand awareness. Additionally, they will closely monitor ROI-based marketing efforts such as ad campaigns, subscription programs, search engine optimization (SEO), email outreach, remarketing campaigns, referral program implementation and website optimization activities to improve customer engagement with the Saks brand.
These steps will help Saks grow their presence in the luxury fashion market; by taking a data-driven approach to marketing and targeting specific audiences through various channels, they will reach out to an ever-expanding pool of customers worldwide. Furthermore, deeper insight into customer preferences garnered from these campaigns can be used to design more effective products that better match customer needs, alluding to an overall improved shopping experience.
Growing Online Luxury Fashion Market
The online luxury fashion market has grown rapidly in recent years, particularly with customers turning to ecommerce for shopping.
HBC and Insight Partners have recently combined forces to launch Saks as a standalone ecommerce company to tap into this new and lucrative market. This move is set to rapidly expand Saks’ customer base and cement its place in the growing online luxury fashion market.
Market Trends
The online luxury fashion market is rapidly expanding, as customers increasingly prefer shopping online due to time constraints, convenience, and access to a wider range of fashionable items. As a result, this sector has witnessed a growing customer base and increased sales across developed and emerging markets in recent years.
New business models such as ecommerce stand-alone websites are gaining customer traction thanks to the potential for well-timed delivery of items and immediate satisfaction with the purchase. For example, HBC and Insight Partners recently launched Saks as a standalone ecommerce company to quickly expand its customer base by offering easy access to high-end fashion items through an attractive eCommerce website.
In addition, improved customer service approaches such as free returns, free shipping over certain orders, loyalty programs, etc., have also played an important role in driving the growth of the online luxury fashion market by increasing customer engagement with brands. This trend is expected to continue with more companies competing for market share to gain more customers.
Challenges
The formation of Saks as a standalone ecommerce company presents numerous challenges for HBC and Insight Partners. Perhaps the most significant challenge is that the success of Saks will ultimately depend on the ability to drive customer acquisition and revenue growth with limited resources. In addition, there is intense competition among online luxury fashion retailers from large established companies such as Neiman Marcus, Nordstrom, and Bloomingdales to fast-growing startup firms such as Luxury Presence. Finally, the rapidly expanding online luxury fashion market is also driven by technology advances that can quickly change consumer tastes and preferences.
HBC and Insight Partners must carefully study the competitive landscape by analysing current pricing strategies, product offerings, website design, digital marketing strategies, customer engagement tactics, delivery methods (including same day or next day services or loyalty programs) and technological capabilities to determine what initiatives are necessary for Saks to become a successful online retailer. Furthermore, HBC and Insight Partners must stay ahead of emerging trends by investing in research & development to develop new technologies and innovative business models to further differentiate Saks from the competition. Finally, HBC must consider how focusing on ecommerce may impact its existing store locations to ensure that all of its operations remain profitable long-term.
tags = HBC and Insight Partners, Saks, Standalone Ecommerce Company, Online Luxury Fashion Market, saks avenue 500m insight 2bthomascnbc, Marc Metrick, Insight Partners