Custom Clothing November 2002
Trends In Apparel Personalization • Americans expect to personalize their purchases now more than ever before • Most Americans experience some difficulty finding clothes that fit • Many Americans hold onto ill fitting clothes 2
Who we are Lands' End is a leading direct merchant of traditionally styled, casual clothing for men, women and children, as well as soft luggage and products for the home. Our value proposition Lands' End is known for providing products of exceptional quality at prices representing honest value, enhanced by a commitment to excellence in customer service. Channels Catalog – Internet - Retail 3
About Lands’ End Consumer and business-to-business Headquarters in Dodgeville, Wisconsin Wholly-owned subsidiaries in UK, Germany and Japan Customers in over 185 countries Annual total revenue of $1. 6 billion 4
About landsend. com US site launched July 1995 First week sales of $178 Internet total revenue 1995: $0. 2 million 1996: $4 million 1997: $20 million 1998: $67 million 1999: $151 million 2000: $238 million 2001: $327 million Internet’s largest seller of apparel 5
landsend. com Pre-1994 Sold products on Prodigy, Compu. Serve & AOL 1995 landsend. com opens store on the Internet 1998 Introduction of My Virtual Model™ Order tracking linked to UPS 1999 Lands' End Live™ Shop with a Friend™ Web sites in UK, Germany and Japan 6
landsend. com 2000 • Your Personal Shopper • Body-scanning tour tied into Your Virtual Model • Business Outfitters sites • Web sites in France, Italy and Ireland 2001 • Enhanced search • Shopping Bag re-design • Enhanced contextual help • LE Custom 7
landsend. com 2002 • Checkout redesign • Amazon. com • MVM Fit • Expand LE Custom 8
landsend. com’s market position • #1 site for customer service – Business Week • #1 apparel site for design – User Interface Engineering Nat’l Retail Federation -- Top Net Retailers 1) Ebay 19) JC Penney 2) Amazon 20) Gap 3) Dell 23) LL Bean 4) buy. com 37) Limited 5) Egghead 39) J Crew 9) Barnes & Noble 42) Sears 13) Office Depot 46) Wal. Mart 15) Lands’ End 81) Nordstrom 9
Custom on landsend. com • Launch dates – Chinos: Oct 2001 – Jeans: April 2002 • 45, 000 pair sold to date – 59% women’s – 41% men’s • 40% of all Chinos & Jeans sold on internet are custom • 25% of buyers are new customers • Mn’s tailored twills & dress shirts launching late October 10
Custom process 11
Custom order process 12
Customer Feedback Solicitation • Upon purchase of Lands’ End custom pants, we send an email asking for input. • If the customer responds, we send them a gift certificate for their participation, which also incents them to buy additional custom product. 13
What Our Customers Are Saying. . . “ I just received my first pair of custom chinos. Whoever thought of creating this new service is a genius! My only desire is to have another pair made. ”
Customer Feedback “Dear Miracle Makers – I have had difficulty finding pants that fit due to the fact that God forgot to give me a waist. I am sure it was an oversight, but it has given me a challenge. Thank you so much for providing this service! We are not all shaped the same as the general public. In fact, I think there are more of us who are not boiler plate measurements, and face difficulties similar to mine. ” 15
Customer Feedback I recently purchased a pair of your custom jeans for my son in law. He is 6’ 10” with a 40” inseam, a 34” waist, and lanky at 200 lbs. It is the first time in his life that he has had a pair of jeans that fit him perfectly. “Thanks Lands’ End!” 16
Challenges • Getting customers to understand why (or why not) we need certain measurements • Logistics – Where are the pants? • Keeping new releases (Archetype) algorithms in line with customers previous specs • Not a traditional business model for Lands’ End – Direct from the vendor • Guaranteed period. How do we liquidate returns? 17
What’s Next? • Oxford shirts are a possibility – Perhaps not as difficult as pants? ? ? • Other possibilities: swimwear (high degree of difficulty/expense, due to stretchy fabrics), sport coats, different styles of pants 18
Questions? ? ? Thank you
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