Next aims to challenge Frasers with its new premium platform, Seasons.
- Seasons will debut before Christmas, stocking luxury brands like Ganni and A.P.C.
- Next seeks to enhance offerings for its premium customer base.
- The platform is a strategic move to inch closer to £1bn in profit.
- Challenges remain in a turbulent premium fashion market.
Next is setting its sights on Frasers by unveiling a new high-end fashion platform, Seasons, expected to launch before the holiday season. This venture will introduce a collection of luxury brands such as Ganni, Joseph, and A.P.C, expanding Next’s portfolio to attract aspirational shoppers. Chief Executive Lord Wolfson emphasized the platform’s role in better serving Next’s premium customers by introducing beloved brands not currently available on their main site.
With this initiative, Next is looking to compete directly with Frasers Group, whose premium lifestyle division, Flannels, has been thriving in luxury fashion, pulling in £1.2bn in sales. The competition between Next’s new Seasons platform and Frasers’ Flannels could intensify as both aim to capture and cultivate the premium market segment.
The decision to shift focus to more aspirational brands stems from the increasing consumer demand for premium and luxury offerings, something that Next has witnessed with brands like Reiss. Wolfson highlighted the unexpected size of their customer segment preferring upscale brands, indicating a significant opportunity for growth in this area.
Amid a changing shopping landscape, Next notes a trend where consumers are opting for fewer but higher-quality purchases, a reflection of the broader shift towards sustainable consumption. The Seasons platform aligns with this trend, aiming to meet mid to high-range pricing expectations while maintaining an editorial quality in presentation.
However, Next faces substantial hurdles as it enters the crowded multi-brand luxury ecommerce space, notorious for its profitability challenges. Recent difficulties faced by industry players like Matches, Net-a-Porter, and Farfetch underscore the volatility and competition. Yet, Next leverages its robust Total Platform, offering third-party brands Next’s established infrastructure, which could be a decisive advantage.
Industry experts, such as Eric Musgrave, commend Next’s consistent track record in online retail, suggesting that its strategic caution and research-backed approach may yield success for Seasons. Chloe Collins from GlobalData notes the potential for Next to attract younger demographics through Seasons, especially those seeking sustainable fashion options.
Despite the potential, the premium market in the UK poses geographical and economic challenges, particularly outside London. Next aims to navigate these by not overextending in physical retail, unlike competitors. The ambition to reach £1bn in profit remains, with observers closely watching this bold move.
Next’s Seasons platform is set to redefine its premium retail offerings, heralding a new era of strategic growth against Frasers.
