With the rapid growth of the online luxury fashion market, Saks strives to expand its customer base to stay competitive. From its brick-and-mortar stores to its new digital platform, Saks has been making strides to update their product offering and enhance their customer’s shopping experiences. Introducing new innovative offerings such as virtual fitting rooms, real-time stylist guidance, product customization and unrivalled customer service have enabled Saks to establish itself as an industry leader for luxury fashion and accessories.
The company aims to take full advantage of their digital resources by appealing to a wider range of customers and reaching those with limited access to brick-and-mortar locations. To do this, Saks has been focusing on increasing their search engine visibility across all devices and implementing state-of-the art analytics platforms that will allow them to better understand user engagement and anticipate customers’ needs. Additionally, they strive to ensure that they keep up with rapidly changing trends in the industry by frequently adding new product lines and providing discounts on certain products and/or services.
HBC and Insight Partners Launch Saks as a Standalone Ecommerce Company Set to Rapidly Expand Customer Base in Growing Online Luxury Fashion Market
Saks, the iconic American luxury retailer, was acquired by Hudson’s Bay Company (HBC) in 2013 and is now being launched as a standalone ecommerce company with investment from Insight Partners.
As it transitions to the new ecommerce model, Saks is looking to expand its customer base and take advantage of the rapidly growing online luxury fashion market.
This article will explore the background of the company’s launch and its goals for the future.
HBC and Insight Partners Launch Saks as a Standalone Ecommerce Company
On August 24, 2020, Saks announced its partnership with Hudson’s Bay Company (HBC) and Insight Partners to launch as a stand-alone ecommerce company. As a result, Saks is well-positioned for continued growth in the online luxury fashion market; leveraging their brand recognition, proprietary technology and attractive lifestyle branding to rapidly expand its customer base.
Saks plans to leverage Insight Partners’ well-established network of strategic financial resources, as well as HBC’s retail expertise and deep understanding of the modern luxury consumer, to take market share from competitors online. Additionally, Saks will utilise insights from HBC’s expansive data platform to identify and target audiences more effectively.
With this new partnership and an emphasis on growth strategy capabilities, Saks is positioned to strengthen their digital offering by leveraging leading capabilities such as basket optimization and A/B testing; aiming to deliver a personalised shopping experience across all devices while increasing their bottom line. Furthermore, they plan on utilising advanced artificial intelligence tools that provide detailed customer segmentation data which can be used to create more targeted digital campaigns. Ultimately driving both user engagement and revenue growth.
The online luxury fashion market has been growing rapidly in recent years due to customers’ increasing demand for high-end clothing, footwear, and accessories.
HBC and Insight Partners have recently launched Saks as a standalone ecommerce company, created to rapidly expand the customer base in this growing market.
In this article, we’ll look at this market in more detail and explore how Saks aims to capitalise on it.
Growing Online Luxury Fashion Market
The luxury fashion market has grown rapidly in the last several years and the online segment has been especially buoyant. By 2021, online sales in the global luxury fashion market will reach $US 43.10 billion. As tastes continue to evolve, customers are showing a preference for higher-end products. This trend is expected to drive sales of luxury fashion items on traditional multi-brand platforms and third-party ecommerce sites such as Amazon or eBay.
Major players like Saks expect to benefit from this growth by rapidly expanding their customer base within the segment. Saks launched its first ecommerce site in 1998 and currently offers a wide range of merchandise through its stores, ecommerce sites, direct mail catalogues and retail networks in domestic and international markets. The company is now looking to capitalise on rising demand for high quality fashion items by further enhancing its omni-channel approach that includes both offline and digital presence.
Saks has identified strategic regions for marketing campaigns that could target tech-savvy millennials as well as affluent customers across Asia Pacific, North America and parts of Europe. It also plans to explore opportunities with new technologies like AI that facilitate personalised customer experiences among other potential investments such as influencer marketing initiatives.
Although growing competition from modern retailers―including pure-play online performance enabled via data science― could be a major differentiating factor at play; it does not appear likely to affect Saks’ ability to gain new customers given its focus on experiential decision making coupled with its dedication towards the brand’s service value proposition closely correlated with customer satisfaction.
Saks Expansion Plan
Hudson’s Bay Company (HBC) and Insight Partners have launched Saks as a standalone ecommerce company to rapidly expand its customer base and compete in the growing online luxury fashion market.
This move is part of Saks’ multi-pronged strategy to maximise the potential of its digital marketplaces. First, it will enable it to capitalise on the rapid growth of the luxury fashion segment. The expansion plan will include developing user-friendly features and improved pricing strategies for customers and establishing a world-class fulfilment infrastructure to ensure the best customer experience.
Rapidly Expand Customer Base
In light of the increasing demand for online luxury fashion purchases, Saks has strategically decided to rapidly expand its customer base. The expansion plan involves utilising various digital marketing channels, such as search engine optimization (SEO), email and social media marketing, to reach customers more likely to respond positively to Saks product offerings.
To directly connect with customers, Saks is committed to offering personalised service with promotional offers geared towards specific customer needs. This includes creating target audience profiles tailored to each customer based on their previous buying habits on Saks products. In addition, a loyalty program is being developed to incentivize customers for long-term loyalty and repeat purchases.
Saks also understands the online buyer’s journey and is developing a comprehensive approach to meet their needs in detail – from discovery through purchase and beyond. This includes providing the proper ecommerce experience – from product visibility on website homepages and category pages, to detailed descriptions on product pages with simple navigation – designed for a smooth buyer journey from start to finish.
Finally, utilising data-driven strategies will allow Saks to better understand its consumers’ purchasing behaviours and make informed decisions about pricing using micro segmentation techniques. This allows each customer segment identified across website visits and interactions on different devices to receive unique offers based upon their true segment value recognition over time – giving customers an unparalleled shopping experience matched with unbeatable value.
Leverage Existing Assets
Saks’ expansion plan should leverage existing assets to maximise efficiency and capitalise on the growing online luxury fashion market. The primary focus of this expansion should be utilising the current brick-and-mortar locations, customer data, operational systems, and web infrastructure to bring a well-designed, fully-functional ecommerce experience to Saks consumers.
The expansion should start with an analysis of Saks’ current customer base and identifying further reach that can be achieved through e commerce offerings. This will also include defining a comprehensive selection of merchandise that can be made available through a digital experience and honing in on additional marketing initiatives regarding outreach and promotions.
In addition, leveraging existing assets may involve working with third parties such as manufacturers, suppliers, or even competitors and modernising inventory management for an effective supply chain. Furthermore, technologies such as ERP solutions could be employed for forecasting demand levels or tracking availability of goods. With these implementations in place, the organisation should also have adequate bandwidth to handle an influx of customer inquiries or escalate them when needed.
By using Saks’ current resources—assets that define its distinct identity—the brand will be able to strategically position itself as an innovative leader within the online luxury fashion market while enhancing its customer engagement experience.
Benefits of Saks Expansion
In partnership with Insight Partners, the Canadian-based retail giant HBC has launched Saks as a standalone, ecommerce business. This expansion is set to rapidly expand Saks’ customer base in the growing online luxury fashion market. Consumers are now able to shop Saks’ more than 100,000 designer items directly from the website, and benefit from exclusive deals and promotions.
This move marks a major milestone for the company and a shift in the online luxury fashion market. Let’s examine some of the key benefits of this move and expansion.
With Saks’ expansion into the growing online luxury fashion market, the company will benefit from increased revenue and higher profits. Saks can reach a wider variety of customers with its new e-commerce platform, expand its customer base, and leverage its brand name recognition to capture a larger share of the luxury fashion market. In addition, by expanding into an international arena, Saks can offer more varied product selections and exclusive promotions that appeal to customers in different countries worldwide.
The added revenue generated by Saks’ online operations will also increase overall sales figures and make it easier for the company to stay competitive in the rapidly evolving fashion industry. With more customers and greater accessibility, Saks can invest in research and development that will create innovative products tailored to create long-lasting customer relationships. Additionally, customers can enjoy the convenience of shopping on their schedules without worrying about waiting in line or searching through stores for products they want.
Overall, with exciting new product assortments available to global customers, expanded customer service offerings via improved online platforms, increased marketing opportunities for direct-to-consumer engagement with existing and potential customers—Saks will be well positioned for success in this fast-growing digital age.
Improved Brand Recognition
As the online luxury fashion market continues to grow, Saks has been making strides to rapidly expand its customer base. Improving brand recognition and reach is a large factor in that growth. By utilising digital marketing platforms, creating content, and investing in influencer partnerships Saks can put its brand further than ever.
One way that Saks has been able to improve brand recognition is through increased visibility on digital platforms such as Google, YouTube, Instagram and Facebook. According to the most recent report by Augure Intelligence Social Media Index (ASMI), Saks was among the top 10 luxury fashion brands observed since June 2020 on Facebook and Instagram, with an average post engagement rate reaching 20%. This level of engagement indicates that customers are actively engaging with Saks content.
Content creation has been an essential platform for driving more people back to their website- resulting in more sales. According to Forbes Magazine, “All of these tactics—blogging, video marketing and influencer partnerships—are all helping the brand grow its customer base worldwide by providing quality content readers can use.” This well-rounded approach to addressing customer needs ensures your products are front-and-centre of their minds when they consider buying luxury fashion items online.
Finally, working with influential partners from different markets will help drive sales from across all parts of the globe as well as create confidence amongst potential customers due the presence of a wider customer base who have previously purchased from yourself knowingly or unknowingly via these influencers and gaining trust within this community increases chances for new potential buyers which works in favour for long term success when it comes down too increasing market share. In essence, fighting for large market share greatly dominates industry demand within a given product category.
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