German fashion house Gerry Weber, which is currently working to boost profitability, is to launch a purely digital brand later this month, offered exclusively online and on external platforms including Amazon.
GRFUL, one of the first German premium brands that is exclusively available online, will offer “high-quality apparel” in the premium segment and will be available on the company’s website, in retail partners’ e-shops such as Breuninger and Engelhorn and external platforms such as ‘about you’.
Developed by EVPs Taifun/Samoon, Oliver Zaric and Bernd Brodrick, the line will see seven collections launched per year, comprising 30 to 40 models, with key pieces including modern dresses, blouses and “feminine” shirts.
Ralf Weber, CEO of Gerry Weber, had the strategic idea of an online-only brand about a year ago.
He adds: “By launching the digital premium label GRFUL, we are positioning ourselves for the future and ideally complement our brand portfolio by an online-only brand and a new customer group. The aim is for our brands to use all physical and digital distribution channels, to connect them with each other and to expand our e-commerce operations.”
According to Weber, the group’s fully automated logistic centre, which was taken into operation in December 2015, will play a central role in this context.
Meanwhile, the benefits of an online brand include the swift response to new trends and to customers’ actual requirements. The sales figures reflecting the appeal of individual trends – also referred to as learnings – are immediately incorporated into the product development, while trends that emerge in the market can quickly be put into practice and made available to customers.
Retail partners offering GRFUL on their online platforms as well as external platforms also benefit from the swift realisation of trends, says Gerry Weber, and GRFUL takes care of the complete handling process, from orders to deliveries to customer service.
Yesterday (28 February), Gerry Weber offered an optimistic outlook despite booking lower sales and moving to a loss for the full-year as its cost-saving programme failed to improve profitability.
The group said despite efforts from its Fit4Growth programme, it has been unable to improve its profitability. As a result, the managing board and the supervisory board have decided to initiate further measures aimed at achieving a sustainable improvement in profitability.
It has also recently appointed a new management board, tasked with developing a performance programme.