UK retail giant Next has recently made a significant move in the luxury online shopping sector with the launch of Seasons, a dedicated e-commerce platform aimed at high-end brands. This initiative comes in the wake of various challenges faced by established luxury e-tailers, such as the collapse of Matches Fashion and the consolidation seen in the industry with Mytheresa’s acquisition of Yoox-Net-a-Porter.
Jade Taylor, the Brand Director at Seasons, emphasized how past e-commerce tribulations shaped their approach to the new platform. “The fallout of e-commerce platforms changed how we approached Seasons. We want to retain a level of nicheness,” she stated. Initially, the site will cater exclusively to the UK market, with plans to extend its reach internationally by late 2025 or early 2026.
Next, a company with a £5 billion turnover generating £3 billion online, primarily trades under its own labels, with only £1 billion accounted for through third-party brands. Through Seasons, the company aims to significantly enhance its third-party brand business by providing a framework for higher-end labels. The platform will feature renowned contemporary and designer brands, including Ganni, Marc Jacobs, and Tory Burch.
A key differentiator for Seasons will be its commitment to nurturing long-term relationships with the brands included in its offerings. The site plans to gradually augment its portfolio and aims to attract premium luxury brands, even engaging in discussions with high-profile players like Kering and Richemont. Taylor noted, “We are in conversations with brands at a higher price point.”
At its launch, Seasons will operate predominantly on a wholesale model, with the potential to pivot towards e-concessions as it gains insights into brand performance. “We take on the risk of buying the stock. As we grow and learn about the brands, we have the ability to move onto commission,” clarified Taylor. This flexibility may provide Seasons with a competitive edge as they evolve together with their brand partners.
The aesthetic appeal of the Seasons website reflects a minimalist and elegant design, showcasing a curated selection of products. Taylor made it clear that the strategy does not involve discounting luxury items, a practice she believes has negatively impacted the luxury apparel sector. Their target for selling at full price stands impressively at 70-75%, allowing for only a 25-30% discount on merchandise. This strategy aims to preserve the perceived value of the brands they represent.
Seasons will also benefit from the substantial infrastructure established by Next, as well as access to a vast customer base of over 8 million active users in the UK alone. Recent market research revealed a notable gap in luxury offerings, with approximately 87% of women outside London feeling underserved by existing luxury brands. This signals not only a market opportunity for Seasons but also a readiness to cater to audiences that have previously been overlooked.
Interestingly, this launch coincides with a period of financial optimism for Next, which recently raised its profit guidance for the third time this fiscal year, anticipating more than £1 billion in annual pretax profits. This optimistic outlook indicates a solid foundation for the newly launched Seasons to grow and thrive.
In conclusion, Seasons stands poised to tackle the luxury e-commerce landscape with a fresh approach that prioritizes brand partnerships and consumer experience. By leveraging its existing resources and making strategic moves to build a niche for high-end brands, Next is likely to establish a formidable presence in the luxury sector moving forward.
