Reference no: EM133424132

Analysis and Proposal

Canopy New York is a custom design clothing line that specializes in UV protective fabric. The company is doing pretty well and has been in business for 35 years. The total sales are near $25M per year with a volume of 13,000 pieces. The CEO of the company is faced with an important choice, whether to continue operating as a primarily brick and mortar operation, or to start moving online and expanding into e-commerce. These are some of her concerns:

1. The company currently leases the store and about 5000 sqft of attached warehouse space storing the various fabrics and raw materials for creating the clothing. She also employs 30 people, from sales to those who tailor and create the clothing, all of who work out of the store and warehouse.
2. Business is steady at the store, but she would like to provide other options to expand the business. Of concern is that the clothing is custom tailored and fitted, so she is not sure how that would work online. Because of the custom fitting, returns are nearly nonexistent.
3. She has a clientèle that is both discerning and personal service oriented. Of concern is alienating these customers by moving online, since her sales staff in many cases have relationships with the clients spanning many years.

1. How much of her operation could she move online? Is it just sales, or could she also contract out clothing production? What would be the advantages and disadvantages of doing this?
2. Is it possible to do custom tailoring and fitting of clothes online? If so, provide an example of a clothing company doing this. How would this affect her clothing return ratio?
3. Would she still need the warehouse, or could she move that online too?
4. What are some options for moving sales online while maintaining her customer focus, who are used to being pampered by the sales staff?