Net a Porter Group Members: G Cristina Dewald Antonella Fiorenza
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Company Report summary
Overview and brand strategy (Dewald)
Analysis of the external environment in which your chosen company operates (G)
Analysis of the recent performance of the company (Antonella)
Analysis of the company's strengths and weaknesses, opportunities and threats (Fiorenza)
A conclusion highlighting the main strategic decisions currently faced by your chosen company (Cristina)
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Overview of the Company ‘Ready to wear’ Private Ltd Company Fashion e-tailer Natalie Massenet Reaches gap between runway and customer 1.8 million visitors over 150 countries Ownership structure
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Brand strategy
‘Fashion sense is business sense’ Trust in fashion expertise Understanding customer Cash rich time poor Weekly emails
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Corporate Structures NATALIE MASSENET Founder And chairman
E.U. Michotte Director
Mr J. Busquets Verges Director AND INVESTOR
Ms C. Busquets Director AND INVESTOR
MARK SEBBA CEO
Mr. A. Massenet Director
Mr C.M. Colfer CEO
Mr W.S. Lawrence Company Secretary
Ownership structure
16%
28%
11% 17%
Busquets family Massenet family Employees
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28%
Richemont Other founding shareholders
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External environment
Online Growth remains, but becoming elusive Increasing Competition (Yoox) Consumer constantly evolving Website optimisation vital for success
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External Environment 2009e on 2008
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SOURCE: Verdict Research
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Financial Analysis P&L +47.84%
Turnover
Break down of Turnover
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Gross Profit Net Profit
+234.46%
2008
2007
2006
81,546
55,158
37,196
39,399
26,996
17,992
10,064
3,009
2,117
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Ratios
2008
2007
2006
2005
2004
GPM%
48.31
48.94
48.37
49.24
49.51
12.34
5.46
5.69
6.26
2.00
STR
3.83
3.19
3.31
4.42
4.42
Debtors collection days
8.87
7.71
12.24
8.91
12.03
Creditors Payment days
18.59
27.6
25.07
6.18
23.59
Working Capital Ratio
1.87
1.58
1.51
2.13
4.30
Acid Test
0.71
0.36
0.47
1.28
2.75
ROCE %
47.87
23.94
22.99
17.11
4.00
Sales per employee
176,889
166,64 0
156,28 6
189,80 4
132,30 3
Profit per employee
21,831
9,091
8,895
11,875
2,652
Solvency Ratio (%)
52.91
44.05
45.86
57.77
77.31
NPM %
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+234.46%
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SWOT (strengths, weaknesses, opportunities and threats)
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Source: Verdict and Drapers
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SWOT Strengths
Weaknesses
No real competition in UK, Market leaders in what they do.
High inventory stock. (ÂŁ21million in 2008) Stock Vs virtual estate for designers.
User friendly website with editorial format. Delivery by 24 hours.
Opportunities
Threats
Outnet.com to clear the excess and last season’s stock.
Potential attacks by both remote shopping Mega Players like Ebay and Amazon and luxury conglomerates-LVMH and PPR.
Segmentation: childrenswear and beauty world
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Selfridges has just launched an online editorial platform for its web retailer. Source: Verdict and Drapers
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As online market matures and growth slows down, the company will need to differentiate and expand:
Innovation & m-commerce
Advertisements on the site
Expand the width and depth of ranges
Adapt to new competitive environment
New ventures: Petit-a-Porter and Net-a-Beaute
Customer service
New propositions: exclusive designer collections
Expand global reach Strengthen financial liquidity
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