Background and Challenge

A large vertical apparel retailer had an existing successful e-commerce business. The company had recently launched a new online-only concept that had leveraged the current site’s traffic to sell a broader range of brands and products. The retailer also invested heavily in a technology platform to enable a leading edge shopping basket approach. The retailer engaged L.E.K. Consulting to help develop the strategy to maximize opportunities based on its unique marketplace position and advanced technology.

Approach and Recommendations

L.E.K. assisted the client in assessing the following:

  • The most attractive customer segments and products
  • Its business model (vertical or branded)
  • Market entry via organic growth, partnership, or acquisition and potential targets
  • Investment and risk

The project was completed in two phases -- Phase I: Category and Segment Prioritization and Phase II: Entry Strategy. As an outcome of the project, Project outcomes included several high priority product category and potential acquisition options.

Results

Coming out of the project, the client has made one successful acquisition, which has been successfully integrated into the retailer’s current online offering. In addition, the retailer is considering further acquisitions and new concept development.