Bluefly.com Launches Version 2.0 and Two New Departments
Business Editors, Internet/Online Writers
NEW YORK--(BUSINESS WIRE)--July 1, 1999--Bluefly, Inc. (NASDAQ
SmallCap: BFLY), a leading Internet retailer of designer fashions at
outlet store prices (www.bluefly.com), today launched Bluefly.com,
Version 2.0, a complete redesign of its Web site. The site has been
redesigned to make it easier for customers to find and buy products,
as well as read about the latest news in fashion and style. The new
version of the site also introduces the Company's two newest
departments -- Teens and Gifts. In addition, the architecture of the
new site will allow the Company to more easily add new functions and
departments in the future.
"We are very proud of the initial version of the site and how it
set a new standard for off-price apparel shopping online," said Ken
Seiff, Chief Executive Officer of Bluefly. "According to Media
Metrix's April results, we've become the most visited off-price
apparel store on the Internet and the second most visited multi-brand
apparel Web store in the United States. Despite these successes,
however, there is room for improvement. We expect that the new and
improved Bluefly will provide a better customer experience with more
products, better graphics and improved search and sort functions.
Similarly, we think that Bluefly Version 2.0 should convert more
browsers into buyers because it allows us to better promote product,"
added Seiff.
The Company reviewed over nine months of customer data in order
to determine the ways in which the site could best be improved. The
new site includes a host of changes that will create an even more
compelling shopping experience while still retaining the fun, friendly
and stylish brand image of the site. Several of the key improvements
are:
-- A 400% increase in the size of product images to enhance product
details.
-- Increased uploading and downloading speed.
-- A streamlined checkout process, which has been shortened from 7
clicks to 2 clicks for repeat customers.
-- Upgraded search and sort functions that allow for sorts by color,
price and "what's new."
-- Integrated cross selling and upselling opportunities to help
customers find related items and spur impulse purchases.
-- Automated credit card fraud screening, which is expected to
improve the Company's order fill rate and reduce the cost of
fraud. This software will also notify customers during the
checkout process to correct mis-entered credit card information
or use a second card if they are unable to complete a purchase
with their original card of choice.
In addition to significantly improving the shopping experience,
the upgraded site offers customers greatly expanded fashion content,
including fashion trends, designer profiles and "how to" articles. The
fashion content is developed in-house and will be updated on a regular
basis. "We believe that the shopping process extends beyond a store
and that customers' purchase decisions are framed by what they read in
magazines and see on the streets," said Marty Keane, Vice President of
Product Development. "By delivering valuable fashion content inside
our virtual store, we can offer relevant information directly to our
customers while they are in the store and in the mood to shop. This is
another way that we provide Bluefly's consumers with a shopping
experience that is unattainable in the brick-and-mortar world," added
Keane.
The launch of the redesign also coincides with the debut of two
new departments: teens and gifts. Both of these new departments were
developed after extensive product testing on the Bluefly site. "These
departments are natural extensions of the Bluefly brand," said Seiff.
"Teens and gift buyers already visit our site and buy products in
large numbers. Adding these departments is a great way for us to offer
more value to these customers while building our revenues without a
significant increase in fixed costs," added Seiff.
Online shopping is a natural extension of the teen lifestyle.
According to Jupiter Communications, Inc., teens currently represent
11% of the total online US population and teens and kids currently
spend $129 million shopping online. Jupiter projects this amount to
grow to $1.2 billion by 2002. Similarly, the Internet offers consumers
a useful, convenient vehicle for making gift purchases. Since gift
givers typically cannot try on products for the recipients, the
tactile element plays a less critical role in the gift purchase
process. In fact, America Online estimates that up to 35% of online
purchases on its AOL Network are gifts. "We have repeatedly seen the
success of selling gifts online," said Seiff. "Traffic and sales
increased significantly during our Valentine's Day, Mother's Day and
Father's Day promotions. Similarly, we have seen the tremendous
potential for the teen market," Seiff added.
Bluefly, Inc. is a NASDAQ SmallCap public company. Headquartered
in New York City, in the heart of the fashion district, Bluefly.com
aims to be the most enjoyable way to shop for designer and name brand
apparel and home accessories at savings of 25 to 75 percent off of
retail prices. Its innovative MyCatalog feature is designed to
eliminate the "hit-or-miss" aspect of off-price shopping by allowing
shoppers to see only those products, which are available for sale and
match their interests. In its quest to build the most visited outlet
store for apparel and home accessories on the Internet, the online
merchant has established strategic alliances with seven of the twelve
most visited Web Sites and portals including AOL, Excite, Go Network,
Lycos, MSN, Netcenter, Tripod, Women.com and Yahoo!. By offering a
meaningful alternative for consumers looking for service and
convenience in an outlet store environment, it has taken direct aim at
the over $27 billion market for end of season and excess apparel and
the $71 billion market for home accessories.
This press release may include statements that constitute
"forward-looking" statements, usually containing the words "believe",
"project", "expect", or similar expressions, including statements
relating to the Company's ability to launch its redesigned Web site
within the time frame discussed above. These statements are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements inherently
involve risks and uncertainties that could cause actual results to
differ materially from the forward-looking statements. The risks and
uncertainties are detailed from time to time in reports filed by the
company with the Securities and Exchange Commission, including Forms
8-A, 8-K, 10-QSB, and 10-KSB. These risks and uncertainties include,
but are not limited to the following: the competitive nature of the
business and the potential for competitors with greater resources to
enter such business; consumer acceptance of the Internet as a medium
for purchasing apparel; the Company's limited working capital and need
for additional financing; recent losses and anticipated future losses;
risk of litigation for sale of unauthentic or damaged goods and
litigation risks related to sales in foreign countries; the startup
nature of the Internet business; the capital intensive nature of such
business (taking into account the need for advertising to promote such
business); risk of litigation for sale of unauthentic or damaged
goods; the dependence on third parties and certain relationships for
certain services; the successful hiring and retaining of personnel;
the dependence on continued growth of online commerce; rapid
technological change; year 2000 issues; online commerce security
risks; governmental regulation and legal uncertainties; management of
potential growth; and unexpected changes in fashion trends.
--30--jc/ny*
CONTACT: Bluefly, Inc.
Media Relations
Margaret McCann
212-944-8000 x229
margaret@bluefly.com
or
Bluefly, Inc.
Investor Relations
Jonathan Freedman
212-944-8000 x247
jfreedman@bluefly.com |
