Next intends to launch a premium fashion platform, Seasons, to compete with Frasers’ Flannels.
- Seasons will stock affordable luxury brands not currently available on Next’s main site, aiming to better serve its premium customer base.
- This venture aligns with Next’s growth strategy as it approaches £1bn in profits, enhancing competition with Frasers Group.
- The launch of Seasons responds to increased demand for premium brands and shifts in consumer purchasing behaviour towards quality over quantity.
- Challenges exist in achieving profitability in the premium multi-brand sector, but Next’s strong foundations offer potential advantages.
Next is poised to intensify its competition with Frasers by introducing Seasons, a new premium fashion platform, set for launch before Christmas. This initiative will offer a selection of affordable luxury brands, such as Ganni, Joseph, and A.P.C., which are not available on the existing Next platform. According to CEO Lord Wolfson, the goal is to ‘better service the premium customers we’ve got by giving them brands we think they’ll love.’ This strategy is part of Next’s broader aim to bolster its profitability, positioning it directly against Frasers Group, known for its multi-branded fashion retailers like Flannels.
The decision to launch Seasons arises from a noted ‘exceptionally strong demand’ for premium brands among Next’s customers, evidenced by their growing interest in offerings like Reiss. Recognising this trend, Next aims to capitalise on a significant portion of its 8 million customers who are inclined toward more premium products. Lord Wolfson remarks that ‘there’s a customer out there buying expensive brands from Next – a bigger segment of our customers than we thought.’ This new focus aligns with the shift in consumer habits towards purchasing fewer, higher quality items, as people are willing to invest more in premium goods.
Despite the enthusiasm for this new venture, Wolfson clarifies that Next is proceeding with caution, not ‘betting the farm’ on Seasons but instead focusing on enhancing the website and its brand offerings. A key part of Wolfson’s strategy involves building trust with premium brands, treating them as ‘clients’ rather than ‘suppliers.’ He emphasises the importance of presenting a website that makes partners proud of every aspect, from the visuals to the delivery service. This careful approach underlines Wolfson’s belief that success will gradually build from establishing reputable relationships and quality service.
The launch of Seasons comes during significant disruption in the premium multi-brand sector, exemplified by the challenges faced by rivals like Matches, which was acquired by Frasers but placed into administration shortly after. While the ‘premium nudging luxury’ market is seen as having potential, the challenge for Next will be making Seasons profitable—a hurdle that many established luxury platforms have struggled to overcome. Eric Musgrave, former Drapers editorial director, acknowledges that Seasons benefits from Next’s Total Platform, which provides robust infrastructure and a legacy of online retail proficiency, potentially offering a competitive edge.
The strategic introduction of Seasons could allow Next to reach new demographics, particularly younger shoppers who are drawn to sustainable, quality-focused brands. As Chloe Collins of GlobalData notes, targeting these younger consumers, who are becoming more environmentally conscious, may expand Next’s customer base beyond its traditional demographic. However, there is a recognition that penetrating the top end of the market remains constrained, particularly outside major urban centres like London. Thus, gains made by Seasons may come at the expense of existing competitors in this crowded market.
Next’s strategic introduction of Seasons represents a calculated expansion into premium fashion, aiming to capture a significant segment of aspirational shoppers while carefully navigating the sector’s challenges.
