Current Trends · Industry News

Lipsy Successful in Selling Other Brands

Next-owned youthful fashion brand and retailer Lipsy would be to extend its offer by selling third party brands on its web site and in shops.
Lipsy supported to Retail Week’s sister publication Drapers that it was in discussions with several brands about carrying them on its web site.
It’s beginning a trial with girls’s youthful fashion brand Miss Sixty, which will found on Lipsy.co.uk in summer 2010.
Miss Sixty may also be sold within an unconfirmed amount of Lipsy’s 23 UK standalone shops. If the trial goes well, Lipsy may look at carrying other brands.
Lipsy already sells a limited amount of lingerie brands including By Caprice and Wonderbra on the site but needs a more extensive branded garments offer. Based on sources close to the company, it’d been looking at how branded clothes was working on Next’s site and considered it could bring a major new revenue flow and enhance its offer to customers through the introduction of interchangeable youthful fashion brands.
Miss Sixty’s tradition is in denim while Lipsy is best known because of its dresses, although it also sells jeans. Miss Sixty has already been sold on Next’s Directory website, but Lipsy can also be targeting other brands not sold through Next, which would fit in with its younger customer profile.
Miss Sixty sales manager Daniela D’Aveni said: “We believe our brand fits in nicely with the Lipsy customer. It’s a hot appearance.”
Yet, not all brands have already been open to the thought. Womenswear brand Mina UK said it’d talked to Lipsy about selling through its web site but decided against it. Mina UK wholesale supervisor Danielle Butler said: “We believed it might collide too much, as [like Lipsy] we’ve lots of celebration wear coming out. We simply believe it’s not appropriate for us, as we need to shove our brand, not sit side by side [with someone else’s].”
This can be not Next’s first effort to enter the youthful trend multi-brand marketplace online. In 2008 it started Brand Directory, which carried the likes of Firetrap and Gio Goi. Nevertheless, it pulled the plug on the website last September, after migrating the brands it carried onto its Next Directory website instead.
At enough time, Next said chosen brands had initially been reluctant to trade under Another Web Directory banner ad but, after working successfully with the retailer on Brand Directory, they were joyful to migrate.
Lipsy, that has been purchased by Next in October 2008, has been profiting from the bigger group’s greater on-line expertise. In accordance with Experian Hitwise data, Lipsy bound to 37th highest-ranking UK web site in the clothing and accessories type by visits in June this year – up from 56th area in June 2015.
Between June 2009 and June 2010 Lipsy has raised the amount of visits to its web site by 82%. By comparison, womenswear chain Jane Norman (now ranked 43rd in the group) has raised its variety of visits by 27% during the exact same interval.
Branding consultancy Interbrand London Chairman Rita Clifton said: “One of the challenges with being a single brand is the brand must stretch enough to bring the appropriate number of folks.”
Pointing to multi-brand online offer Asos, she included: “it’s a all-inclusive offer and is a brand in its own right. Having a [brand] combination is becoming quite popular.”
In the year to January 30, 2016, Next said Lipsy given £28m of sales to the group, with operating profits before amortization of £1m. In its present year, in which there are strategies for 11 new shops, it anticipates gains for Lipsy’s retail and wholesale businesses to be about £3m.
Beyond the on-line offer, Lipsy has remained mostly independent from Next in operating terms, and Lipsy creator and chief executive Jeremy Stakol has stayed at the helm of the company.

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