USA: Top Brands Choose Chelsea Interactive E-commerce Platform
Chelsea Interactive, Inc, an affiliate of Chelsea GCA Realty, Inc. (NYSE: CCG), today announced that Elisabeth by Liz Claiborne, Cole Haan and Maidenform will be the first brands to establish their e-commerce infrastructures using Chelsea Interactive's new technology platform. Through its strategic relationship with Proxicom, Inc (Nasdaq: PXCM) a leading e-business consulting company, Chelsea Interactive (www.chelseai.com) will provide each brand with a direct-to-the-consumer online store incorporating comprehensive e-commerce design, development, fulfillment and customer service.
By leveraging Chelsea Interactive's economies of scale and Proxicom's expertise, brands avoid the significant up-front costs and lead times often associated with e-commerce. At the same time, each brand maintains control over all aspects of its online store's products, prices and image. ``Chelsea Interactive was developed in response to a clear market need,'' said David Bloom, chairman and chief executive officer of Chelsea GCA. ``Rather than each brand starting out on its own to develop every element of a complete e-commerce infrastructure, Chelsea Interactive provides brands with their own customized online stores built upon a robust, shared platform. Chelsea Interactive allows each brand to focus on what it does best: manage the high quality of its products and image.''
Chelsea Interactive's complete, highly scalable e-commerce infrastructure is a product of its strategic relationship with Proxicom, which has conceived and implemented e-business strategies for clients including America Online, General Electric, Marriott International and Merrill Lynch. Proxicom provides Chelsea Interactive clients with consulting services including strategic planning, project management, website design, technology development and legacy system integration.
Chelsea Interactive and Proxicom together have assembled a team of leading technology and service providers to manage e-commerce for participating brands. BroadVision, Inc's powerful, scalable e-commerce software enables best-of-class inventory management, transaction processing and user-profile databases; and PeopleSupport, Inc manages e-mail, online text chat and telephone customer service.
The Chelsea Interactive model is designed to deliver advanced functionality, ease of use and speed to market. In addition, Chelsea Interactive enables each brand to operate its online store according to its own marketing, merchandising and technological specifications.
Chelsea Interactive leverages Chelsea GCA Realty's extensive experience in enabling brands to operate their stores efficiently. Chelsea GCA has for 20 years provided the infrastructure necessary for brands to operate their outlet stores at highly successful centers across the United States and, starting this year, in Japan. As an organization, it has acquired a deep understanding of channel conflict, enabling top brands to operate land-based outlet stores in harmony with other distribution channels including department stores, boutiques and company-owned full-price stores.
Chelsea Interactive believes that the majority of brands will eventually develop a direct-to-the-consumer e-commerce capability, although Internet sales may not account for a significant portion of their total sales for the foreseeable future. The financial, technological and management resources necessary to establish a brand's online business are often underestimated. By leveraging the economies of scale in Chelsea Interactive's platform, brands can access an outsourced solution that delivers world-class execution while minimizing their own investment. Chelsea Interactive's revenues will be based primarily on a percentage of each brand's online sales. Its business model centers initially on the brand equity developed by the brands themselves, not on branding itself as a ``dot-com'' destination.
``Like Chelsea GCA's land-based properties, Chelsea Interactive's e-commerce platform supports the extraordinary brand equity that names like Elisabeth by Liz Claiborne, Cole Haan and Maidenform have built over time,'' said Bloom. ``Chelsea GCA has consistently delivered superior results in brick-and-mortar development and management, and Chelsea Interactive intends to do the same in the e-commerce world.''
Cole Haan, a wholly-owned subsidiary of NIKE, Inc (NYSE: NKE), distributes its hand-crafted footwear and accessories across the country through its Cole Haan retail stores, as well as select department stores and independent retailers. After assessing strategic e-commerce alternatives, Cole Haan adopted Chelsea Interactive's technology platform, which allows Cole Haan to maximize its return on investment in its online store. Chelsea Interactive will also enable Cole Haan to understand its customers' online buying habits better than ever before.
``Chelsea Interactive is a great partner because it provides not only the front-end expertise in developing and implementing our web strategy, but also an unmatched back-end infrastructure to meet our customers' needs,'' said Matt Rubel, chairman and chief executive oOfficer of Cole Haan. ``We expect the solutions that we have established with Chelsea Interactive to produce a successful e-commerce platform.''
As part of its business development process, Chelsea Interactive re-designed and re-deployed Maidenform's online store, the new version of which has been operating at www.maidenform.com. In order to accomplish this multi-faceted task, Chelsea Interactive and Proxicom first undertook a complete strategic review of Maidenform's needs and goals for its online store. Construction of the revamped Maidenform.com site began with new organizational and operational structures, improved site design, and integration with existing inventory and logistics control systems. Chelsea Interactive and Proxicom also designed a detailed marketing plan for Maidenform.com. In addition, customer data received from the Maidenform.com site enhances the company's understanding of its shoppers and their interests, needs and online shopping habits.
``We are pleased with the growth of our Internet business,'' said Paul Mischinski, chief executive officer of Maidenform. ``Chelsea Interactive and Proxicom bring top-notch Internet technology, software and data-management expertise, ensuring that site development and operations have been smooth and productive. This allows Maidenform to focus on our products and logistics.''
Headquartered in New York City, Chelsea Interactive was conceived and will be advised by David Bloom, chairman and chief executive officer, and William Bloom, vice chairman of Chelsea GCA; and will be led by Leslie T. Chao, president of Chelsea GCA and Chelsea Interactive. For more information, visit www.chelseagca.com.
About Proxicom, Inc
Proxicom, Inc (NASDAQ: PXCM) is an e-business consulting and development company that delivers innovative Internet and wireless solutions for Fortune 500 companies and other global, forward-thinking businesses. For more information, visit www.proxicom.com.
About BroadVision, Inc.
BroadVision, Inc. (NASDAQ: BVSN) is a leader in customized e-business software. BroadVision's comprehensive suite of integrated applications is built for delivery via the Web and wireless devices. For more information, visit www.broadvision.com.
About PeopleSupport, Inc.
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