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Will Very Exclusive brands stay with Very?

The merger of Very Exclusive with the Very website may make business sense, but experts question whether luxury brands will be comfortable on the main platform.

Very Exclusive hosts 90 premium brands including Calvin Klein, Dolce & Gabbana and Alexander McQueen, many of which may be keen on the higher traffic of the Very website, but nervous about sitting alongside value ranges.

One key consideration for premium brands will be their placement and tone on the main Very site.

One fashion industry insider who has worked closely with Shop Direct said: “[The etail group is] going to find it difficult to put the more exclusive brands on the Very site. That was the strategy of launching the Very Exclusive site in the first place.

“I know some have moved over to Very website anyway. Karen Millen moved, and more will undoubtedly move because walking away will cost them business.”

One premium brand manager said that it is not guaranteed that all of the Very Exclusive brands will be keen to move to the combined platform.

“[The news] is surprising and not surprising at the same time. I don’t know how much traffic they had going to Very Exclusive, and not sure if they offered enough for the customer to buy into the price point.

“It’s a shame to see [Very Exclusive] go, but for [Shop Direct] it makes lots more sense.

“I don’t know if premium brands will follow [on to Very]. It depends what the brand strategy is going forward. We have a strong strategy that we need to consider in relation to moving on to the Very site. It is like going back to the drawing board. Not just for our brand but also for bigger, well-known brands. I would be surprised if they followed.”

By contrast, one industry expert said that Very had done well to build relationships and reassured premium brands that the Very site is not aiming to discount continually.

He said: “When they started working with brands for Very, the brands were worried about adjacencies. Some of those worries disappeared once brands got to know the business – they felt that they didn’t mind going on Very. Some have already been added to main site.

very exclusive

“For high-end brands, price, proposition and adjacencies is everything. Once they knew that Very wouldn’t continually discount or promo all the time, it became a factor in brands being on the main site.”

Shop Direct chief executive Henry Birch, who joined this month, is no stranger to overhauling businesses – he worked to push through a strategic shift at the FTSE 250-listed firm Rank Group during his four years as chief executive.

One industry source said that Birch has a clean slate to revamp Very and Very Exclusive: “Very has a new chief executive in the space. It is a brave decision to say, ‘Why don’t we get rid of Very Exclusive,’ but it’s easy for him as it was before his time.

“It is a good move for them. If Very Exclusive had gone off like a train then they would have run the risk of losing revenue from closing the site or merging. That risk I believe is very small.”

It is not known if the transition to the new site will lead to any job losses, as the teams are believed to have been merged in the last 12 months.

One source added that the single web entity may help boost the Very brand further: “There’s always a cost of distractions of a new brand – every minute they are spending on Very Exclusive, they could be spending on Very, which is 25 times the size.

“They will lose some brands, they will save some and keep that revenue. They would have considered the outcomes before making that decision.”

The Financial Times reported that the value of bonds in Shop Direct, which also owns Littlewoods, crashed on Thursday after it was revealed that management of the firm did not control how much money flowed to its owners.

The paper said the value of the £550m high-yield bond fell as much as 20p in the pound to 65p on the news, forcing Shop Direct to issue a statement on behalf of shareholders addressing concerns. The bond later rallied to 72p.

The Barclay brothers, who own The Ritz London hotel and Telegraph Media Group, hold a controlling stake in Shop Direct.

 

 

Will Very Exclusive brands stay with Very?

The merger of Very Exclusive with the Very website may make business sense, but experts question whether luxury brands will be comfortable on the main platform.

Very Exclusive hosts 90 premium brands including Calvin KleinDolce & Gabbana, Karl Lagerfeld and Alexander McQueen, many of which may be keen on the higher traffic of the Very website, but could be nervous about sitting alongside value ranges.

One key consideration for premium brands will be their placement and tone on the main Very site.

One fashion industry insider who has worked closely with Shop Direct said: “[The etail group is] going to find it difficult to put the more exclusive brands on the Very site. That was the strategy of launching the Very Exclusive site in the first place.“I know some have moved over to Very website anyway. Karen Millen moved, and more will undoubtedly move because walking away will cost them business.”

One premium brand manager said that it is not guaranteed that all of the Very Exclusive brands will be keen to move to the combined platform: “[The news] is surprising and not surprising at the same time. I don’t know how much traffic they had going to Very Exclusive, and not sure if they offered enough for the customer to buy into the price point.”

“It’s a shame to see [Very Exclusive] go, but for [Shop Direct] it makes lots more sense.

“I don’t know if premium brands will follow [on to Very]. It depends what the brand strategy is going forward. We have a strong strategy that we need to consider in relation to moving on to the Very site. It is like going back to the drawing board. Not just for our brand but also for bigger, well-known brands. I would be surprised if they followed.”

By contrast, one industry expert said that Very had done well to build relationships and reassured premium brands that the Very site is not aiming to discount continually.

He said: “When they started working with brands for Very, the brands were worried about adjacencies. Some of those worries disappeared once brands got to know the business – they felt that they didn’t mind going on Very. Some have already been added to main site.

“For high-end brands, price, proposition and adjacencies is everything. Once they knew that Very wouldn’t continually discount or promo all the time, it became a factor in brands being on the main site.”

Shop Direct chief executive Henry Birch, who joined this month, is no stranger to overhauling businesses – he worked to push through a strategic shift at the FTSE 250-listed firm Rank Group during his four years as chief executive.

One industry source said Birch has a clean slate to revamp Very and Very Exclusive: “Very has a new chief executive in the space. It is a brave decision to say, ‘Why don’t we get rid of Very Exclusive,’ but it’s easy for him, as it was before his time.

“It is a good move for them. If Very Exclusive had gone off like a train then they would have run the risk of losing revenue from closing the site or merging. That risk I believe is very small.”

It is not known whether the transition to the new site will lead to any job losses, as the teams are believed to have been merged in the last 12 months.

One source added that the single web entity may help boost the Very brand further: “There’s always a cost of distractions of a new brand – every minute they are spending on Very Exclusive, they could be spending on Very, which is 25 times the size.

“They will lose some brands, they will save some and keep that revenue. They would have considered the outcomes before making that decision.”

 

 

 

 

 

 

 

 

 

 

 

 

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