Sunday, 11 September 2016

YOOX - An Overview


Yoox.com, launched in September 2000, sells off-season items at heavily

discounted prices and regularly offers clearance sales. This allows the Group to target two wide pools of customers - namely bargain hunters and fashion savvy - and to help brands off-load unsold merchandise from past collections, preventing them from cannibalizing the sales of their new selections and damaging the status of their brand names. 










Competitive rivalry within the industry:
1. Oversupply in the market
2. High competition in terms of prices and offered services
3. Small number of big players retaining a large market share
4. Market size of the industry is increasing


Bargaining power of suppliers:
1. Most brands are both multi-brand suppliers and mono-brand clients
2. Several potential suppliers in the marketplace
3. Low switching costs
4. Remote possibility that suppliers may apply a lighter cut-off on the product price


 
Bargaining power of clients/customers:
1. Partner luxury brands may directly manage their online retail business
2. Final customers (individuals) have little bargaining power
3. No leading clients/customers
4. Low switching costs


Threat of new entrants:
1. Economies of scale are not relevant
2. Low capital requirements
3. Business easily implementable by C2C and B2B companies
4. Companies can effortlessly add online retail business to their website


Threat of substitute products:
1. C2C
2. Potential reversal of trend to physical stores




The Yoox India website:











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