Your Fly is Open! Pivot RulesLaunches Revolutionary Internet Store, Bluefly.com
September 9, 1998 07:32 AM
NEW YORK--(BUSINESS WIRE)--Sept. 9, 1998--Pivot Rules Inc. PVTR announced today the launch of Bluefly.com, a revolutionary new Web site. Bluefly.com offers men's, women's and children's name brand apparel and accessories at 25 to 75 percent discounts to retail prices. By offering significant savings, advanced search technology, unparalleled convenience, and a customer-friendly experience, as well as articles on current fashion trends and other related content, the company believes that its Web site, www.bluefly.com, has raised the bar for other apparel retailers. "Until now, shopping at manufacturer's outlet malls and other traditional off-price stores (such as Loehmann's and T.J. Maxx) has been a 'hit-or-miss' experience. Many consumers have been frustrated by long trips, inferior product quality and disorganized clothing racks and, as a result, bargain shopping has lost much of its allure," said Ken Seiff, chief executive officer. Finding the time to search for the right item in the correct size is a luxury that many consumers cannot afford. With Bluefly, the hassle is a thing of the past. At the heart of Bluefly's customer friendly experience is MyCatalog, a simple to use, revolutionary new feature that allows each shopper to build a personalized catalog. To use MyCatalog, shoppers select their favorite brands, product categories and sizes and, in a matter of seconds, MyCatalog displays high quality photo images with descriptions of all the matching items currently available. This groundbreaking innovation is made possible by employing the most sophisticated search technology ever developed for an online apparel store. MyCatalog makes shopping more enjoyable by eliminating the tedium and frustration of searching for merchandise and the disappointment that results from back orders and out-of-stock products. It also alerts shoppers when new items arrive that match their interests. Despite its significant size, the nearly $27 billion market for off-price apparel has been confined to brick and mortar retailers. Pivot Rules believes that traditional direct marketers have been reluctant to sell off-price apparel due to the complex logistics of selling end-of-season and excess apparel. The direct marketing of off-price apparel requires a cost-effective medium that is capable of displaying a large number of products, many of which are in limited supply and not easily replenished. Print catalogs are not well suited to this task because of their high production and distribution costs. "Bluefly has harnessed the power of technology to simplify the direct marketing of off-price apparel to consumers, and in so doing, stakes the first online claim to the enormous off-price apparel market. With the Internet, we can display an almost limitless number of items to a global audience without the high cost of printing and mailing. If we sell out of an item, or acquire a new one, we can almost instantaneously update our Web site to reflect this change," said Seiff. By selling off-price apparel online, Pivot Rules is pioneering a new market and at the same time building upon consumers' willingness to purchase clothing remotely. Nearly 23 percent of adults in the United States make at least one clothing purchase through remote channels annually, reported Simmons Market Research. Last year, apparel and accessories represented the largest share, 34 percent, of the $48 billion catalog industry's sales, according to the Direct Marketing Association. The company also expects to benefit from consumers' growing acceptance of the Internet as a medium for shopping. Jupiter Communications, a leading Internet research firm, reported that online purchases totaled $707 million and $2.6 billion in 1996 and 1997, respectively. Jupiter expects these figures to grow to $9.9 billion in 1999 and $37.5 billion in 2002 and has predicted that between 1998 and 2002 apparel sales will be the fastest growing product category online. Jupiter predicts that within 10 years electronic commerce sales will surpass the sales of the entire catalog industry. Added Seiff, "Retailers have made the opportunity even bigger. Over the last 10 years, this country's largest retailers have steamrolled the retail landscape in the name of cost cutting measures which have been at the expense of customer service. In creating the online store, we thought like consumers first, then like retailers." The result is a Web site which showcases an impressive array of top designer and name brand products which shoppers can purchase 24 hours a day, seven days a week from the comfort of their own home or the convenience of their office. Bluefly.com is owned and operated by Pivot Rules Inc., a NASDAQ public company. Bluefly.com is the most enjoyable way to shop for top designer and name brand apparel and accessories at savings of 25 to 75 percent off of retail prices. The online merchant offers a meaningful alternative for consumers looking for savings, convenience, selection and customer-friendly service. The Web site provides an innovative shopping experience with interactive content, including fashion tips, trends and advice.
This press release may include statements that constitute "forward-looking" statements, usually containing the words "believe," "project," "expect" or similar expressions. 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, including, but not limited to certain risks relating to consumer acceptance of the Internet as a medium for purchasing apparel, 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), the successful hiring and retaining of personnel, the dependence on third parties and certain relationships for certain services, 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, the company's lack of experience in such business, unexpected changes in fashion trends and the potential for competitors with greater resources to enter such business.
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