CenterStone Technologies, Inc., an internationally recognized developer of Web-based sales order management software for manufacturers (vendors) of apparel, footwear, equipment and accessories, serving the outdoor recreation, snow sports, sporting goods, surf and action sports industries selling through specialty retailers today announced the results of their semi-annual dealer survey.
During March and April 2006, CenterStones survey was sent via e-mail to more than 3,200 specialty retailers who sell apparel, footwear, equipment and accessories in the outdoor recreation, snow sports, cycling, fitness, surf and action sports industries. The survey received a 21 percent response rate with survey data that clearly reflect that specialty retailers' online buying behavior is no longer just a trend. The vast majority of specialty retailers, 93 percent, are using online applications to place orders and check available inventory.
“During normal business hours I am almost always busy with customers or managing employees. With access to online inventories and ordering I can place orders after hours, which of course limits my purchases to vendors offering these services,” noted Kyle Jones, manager of Mountain Hideaway in Lubbock, Texas.
“I am able to access inventories and write special orders for customers .and able to write orders from home,” says Brian Mildenstein of Fin and Feather in Iowa City, Iowa.
“The results of our survey continue to validate that we are on the right track with specialty retailers across the U.S.,” said Tom Detmer, the CEO of CenterStone Technologies. “It is truly exciting that the specialty retailers who use our solutions for multiple vendors such as The North Face, Marmot, Helly Hansen, Obermeyer, Pearl Izumi and many other brands are seeing the value of our technology. Specialty retailers are voicing their desire to be able to access multiple vendors through one Internet application. Not only is it a great value for specialty retailers, but our vendor clients are also reaping the rewards by sharing the cost to develop, maintain and host a solution that contains more features and functionality than any one company could develop and maintain.”
In todays retail environment, being open for business 24/7 is a minimum requirement according to specialty retailers. The survey data indicate that 66 percent of dealers think that it is very important for them to conduct business at their convenience, even when customer service is closed. And 53 percent say that it is important to be able to access multiple vendors through the same system. Too many systems result in too many headaches for the specialty dealer. With respect to product availability, 92 percent of dealers want the ability to check available inventory, and 78 percent think that it is very important to be able to quickly place an ASAP order.
“The CenterStone system gives us confidence to know that the items are there to order. If a customer is in the store, it's about immediate gratification for us and the customer. Your system gives us the confidence in following through, quickly on a special order for a customer,” says John Alden of North Rim Adventure Sports in Chico, Calif. “We use online ordering whenever possible, and your system gives us confidence. It allows me to build orders throughout the week, and review orders on Mondays. Online ordering is wonderful.”
Sandy Severns, a buyer for Earth's Edge in Grand Haven, Mich., explained, “Placing fill-in orders is so much more efficient when you know exactly what the available-to-sell inventory is. If what you want is not available, chances are you can find a comparable product/color/style to order instead. By faxing, you just cancel the unavailable items.”
With respect to the sales impact that an online sales order management application has for a vendor, 54 percent of respondents said that they spend more money with vendors that have online sales order management systems like that of CenterStone. In addition, those respondents also spend, on average, 13 percent more with vendors that are enabled with a CenterStone-like solution. Specialty retailers want to check availability and place orders through CenterStone, and when they do, they spend more money. “Think about the top-line impact that we have when 54 percent of our clients specialty retailers spend 13 percent more. No wonder all our clients seem to be growing their market share,” Detmer noted.
At Uncle Dan's Outfitters, a Midwestern specialty retailer based in Chicago, Ill., Mike Fowler, vice president of the store's corporate operations, has refined his in-season strategy.
“We chase 60 to 70 percent of our buy in-season. I love the ability to see stock and change my buy based on stock availability. I shop the pre-line appointment with a more careful eye so I can chase product in-season (based on demand). Our biggest vendor is [The] North Face. We also use a similar technology with Patagonia but wish they had your technology. Marmot and ExOfficio sold more goods because of CenterStone's technology. I've sent vendors to CenterStone and wish Keen, SmartWool, CamelBak and Eagle Creek (several very popular lines) would use CenterStone's sales order management system,” said Fowler.
“Twenty to 35 percent of specialty retailers requested that companies such as Patagonia, Columbia, Thule, Thorlo, Bell/Giro, Black Diamond, Burton, Cascade Designs, Petzl be available to them through CenterStone. These companies have developed their own proprietary in-house buying applications. Our survey revealed that most dealers dont want to learn multiple applications for all their various vendors, and 77 percent of our dealer survey respondents indicated that they are willing to learn and use 5 or fewer applications. They are voting with their wallets. When similar product is available from The North Face, Marmot, Helly Hansen or Obermeyer, specialty retailers say they prefer to use the CenterStone (as a one-stop buying solution) for ordering rather than a proprietary application that has its own unique user name, password, layout and navigation. Time spent learning one or more applications is time spent away from their customers. Even Patagonia, after more than 5 years, doesnt have the adoption rate among specialty retailers that CenterStone has. So, for vendors who are thinking of building an application in-house, take the time to do the math, and take time to listen to what your customers the specialty retailers want,” concluded Detmer.
Brands currently using CenterStone Technologies' applications
Brands currently making the CenterStone Technologies solution available to their retail customers and sales reps include: The North Face, part of VF Corporation (NYSE: VFC); Pearl Izumi, a division of Nautilus, Inc. (NYSE: NLS); Marmot Mountain, Ex Officio and Marker Apparel, part of K2 Corporation (NYSE: KTO); Helly Hansen; Perry Ellis Intl. (NASDAQ: PERY); Geneva Watch Group; Cleveland Golf; RipCurl; Billabong; Sport Obermeyer; Smith Optics; Garmont; KHS Bicycles; Dale of Norway, Malone Auto Racks and others. Product availability and orders for these brands are exchanged between retail dealers, sales reps and vendors back office (ERP) systems.
About CenterStone Technologies, Inc.
CenterStone Technologies, Inc. provides Web-based sales order management applications in five languages and local currencies North America and Europe. iVendix and Escape applications enable retail dealers and sales reps to view online catalogs and product availability, create sales proposals and to place preseason, reorders, and retail employee orders more effectively and efficiently with their vendors. CenterStone Technologies makes vendors more competitive by providing increased inventory turns at retail, reduced customer service costs, and greater speed to market, thus improving relationships with their customers retail dealers. Additional information about CenterStone Technologies, Inc. can be found on the companys Web site at www.centerstonetech.com.
