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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