Integrated Solutions for the Fashion and Lifestyle Industry
The market for e-commerce services in Europe is growing dynamically, and various market experts expect that the “Fashion & Beauty” segment will see the largest increases in the years ahead. With its acquisition of Netrada in February, Arvato significantly expanded its competitive position in this attractive growth market and has risen to become one of Europe's leading providers of integrated e-commerce services. The new Consumer Products business within the Arvato SCM Solutions unit has a global network, employs more than 3,000 people in Germany, and is expected to generate revenues of over €400 million in 2014.
“We have used the past six months to merge the e-commerce businesses of Netrada and Arvato, to strengthen and advance existing customer relationships, to harmonize processes, and to integrate the employees of Netrada into the Arvato family," says Niels Weithe, Managing Director of the company. Weithe is especially proud of the fact that they have managed to retain their main customers. “Together we have already achieved a lot. We’ve created an innovative and very broad-based provider of e-commerce services that is always in a position to offer our services, worldwide, to clients from a wide range of industries," says the manager, who has clear goals for the future: "We want to systematically use the dynamic market growth in the e-commerce sector to fundamentally expand the business, to be the gateway to Europe for U.S. brand-name companies, and to merge and expand our strengths in the B2B/retail environment with those of our online activities, into comprehensive omni-channel solutions.”
The new constellation has turned Arvato into a leading provider of e-commerce and logistics services for the fashion, beauty and lifestyle industries, and it handles integrated for a number of big-name clients. As a globally active full-service provider, the company covers the entire e-commerce process chain and has a resilient network with sites in North and Latin America, Asia and the EMEA region. Its range of services includes the development, implementation and operation of online shops; online marketing; logistics and shipping including returns management; payment and billing services; customer services; and e-commerce consulting. Depending on what the customer wants, these elements can be delivered as individual modules or as an integrated package. The experts currently deliver customized e-commerce solutions for international fashion brands such as Esprit, C&A, Tom Tailor and Tommy Hilfiger, for beauty suppliers such as Douglas, and also for a number of other companies that sell strong brands online and/or offline.
In the future, it plans to further consolidate this strong position in the relevant market segments worldwide. The conditions are favorable: On the one hand, market researchers expect to see double-digit annual growth rates in online fashion and beauty sales in Europe over the next few years. And on the other hand, Arvato will soon have access to a state-of-the-art logistics site that is currently being built in Hanover near the exhibition center.
Integrated logistics services for the customer Esprit will be provided from this new 50,000m² warehouse and distribution center. The site, which will go into operation in the first half of 2015, not only has the largest and most modern bag-sorting facility in Europe, but also features excellent infrastructure links. On four floors, and equipped with 34 loading docks, up to 15,000 items per hour will be picked-and-packed, localized and shipped across Europe from here.
With this mixture of unwavering market orientation, a global footprint, and a broad range of services, Arvato Consumer Products is confident of being an attractive strategic partner for its existing customers – as well as potential new customers – in this growth industry.