MonarchFa a Category of MonarchFx
MonarchFx is the coming together of world class supply chain and logistics companies with world class sellers of products to form a reinvented logistics ecosystem that is new, smart, and innovative. MonarchFx offers eCommerce retailers, brands, and marketplaces a local automated fulfillment network and local/regional final delivery services at a price and service level competitive with Amazon and far superior to the price and service a business can receive on a standalone basis.
The tagline for MonarchFx is Smarter Logistics. MonarchFx is not a seller of products; rather, the provider of logistics services throughout the United States and for cross border logistics to and from the United States. MonarchFx provides a lifeline to organizations who want to continue to control their brand, while offering reasonably priced same-day, next-day, and two-day delivery. MonarchFx should be viewed as the counteroffensive to Amazon. MonarchFx is led by Tompkins International, a highly respected supply chain consulting and implementation firm, widely viewed as a thought leader in eCommerce and supply chain efficiency and effectiveness. Included are best in class providers of supply chain technology, third party logistics, final mile delivery, material handling integration, and real estate services.
MonarchFx does not replace a seller’s logistics ecosystem; rather, it complements the seller’s logistics ecosystem making it newer, smarter and more innovated The vision of MonarchFx is to be the preferred direct-to-consumer logistics provider, operating at the lowest cost, while delivering the highest levels of customer service, providing superior value for MonarchFx sellers. The mission of MonarchFx is to create, build, and manage a substantial logistics ecosystem that establishes MonarchFx as the preferred direct-to-consumer logistics solution in the United States.
No product category has been impacted more broadly and more deeply by eCommerce, in particular by marketplaces and digital native e-tailers, than apparel and footwear.
On the whole, fashion has been among the slowest, if not the slowest, industry to recognize the opportunity and threats presented by eCommerce (especially with marketplaces). The fashion industry needs to react accordingly and reset the philosophy, strategy, and operations for the Digital Age.
Famously, apparel/fashion companies have resisted selling on Amazon and other marketplaces because:
- They did not believe that consumers would buy clothes, shoes, and accessories they could not see, touch, feel, and try on, in person.
- They believed their centrality to the overall consumer economy and everyday living meant that they were able to dictate the terms, conditions, environments, and experiences of fashion purchases.
- The industry was built on and thrived according to a set of business models and traditions viewed as permanent, proven, and immovable.
- Fears, sometimes justified, of price erosion and loss of brand control.
The result, Amazon became the #1 seller of apparel and footwear in the United States, surpassing Macy’s. Amazon has done this with the success of their 9 apparel private labels and selling other brands on their marketplace. At the same time, retailers and brands are facing: lower store foot traffic, sales and margins, while increasing the eCommerce sales. Unfortunately, due to the high cost of fulfillment and delivery these eCommerce sales are not profitable. With store profitability waning and eCommerce profitability nonexistent, retailers and brands are hurting. They need to reduce logistics costs and increase customer service, this is what MonarchFa provides.
A Few Important Numbers
Amazon captured 43 cents of every dollar spent online in the U.S. in 2016.
About 35% of all apparel orders are returned.
2016 largest market share of online apparel revenue shoppers 18-34:
Number of Amazon apparel private labels-9
A Few Key Notes On Recent Trends
Amazon is considering custom-fit clothing in 5 days. Amazon received a patent for “on-demand apparel manufacturing”; though there is no guarantee Amazon will pursue the plan.
Retailers are working to offer cheaper faster delivery, in hopes to not lose customers to Amazon Prime’s promise of two day delivery.
Amazon has the advantage of gaining valuable customer insight by watching their search patterns. Also, Amazon is able to promote their brands when customers perform a search.
Amazon’s most recent apparel private label is a lingerie line, Iris & Lilly, which is similar to Victoria’s Secret at a significantly cheaper price point.
As always, I wish you all the best,
James A. Tompkins, Ph.D.
6870 Perry Creek Road
Raleigh NC 27616
919 855 5501 – Direct Line
919 872 9666 – Fax
919 637 2508 – Mobile
Assistant: Debbie Flynn, 919 855 5447