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Why Demandware's Business Model is so successful?

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Demandware’s Company Overview


Demandware, Inc. (formerly known as "Demandware") is a privately held company that offers a cloud-based e-commerce platform and related services for retailers and brand manufacturers worldwide. Founded in 2004, Demandware is headquartered in Burlington, Massachusetts, and employs more than 600 people in offices in North America, Europe, and Asia-Pacific.

Demandware, now a part of Salesforce, was a cloud-based e-commerce platform that empowered businesses to create and manage their online stores efficiently. It provides a scalable and customizable solution for retailers to deliver seamless and personalized digital shopping experiences.

Demandware operated on a Software-as-a-Service (SaaS) business model. It offered a comprehensive suite of e-commerce solutions, including website development, order management, and digital commerce tools. Retailers could leverage Demandware's platform to create and customize their online storefronts, ensuring a tailored and engaging experience for their customers. The platform's cloud-based nature allowed for flexibility, scalability, and easy updates, making it an attractive choice for businesses seeking an agile e-commerce solution.

Demandware's revenue model was subscription-based. Businesses using the platform paid a recurring fee for access to the services, infrastructure, and support provided by Demandware. This subscription model allowed companies to access the latest e-commerce technologies without the need for significant upfront investments in hardware or software. The platform's success was closely tied to its ability to support retailers in delivering modern and seamless digital commerce experiences to their customers.

https://www.salesforce.com/products/commerce/

Headquater: Burlington, Massachusetts, USA

Foundations date: 2004

Company Type: Private

Sector: Technology

Category: eCommerce

Digital Maturity: Fashionista


Demandware’s Related Competitors



Demandware’s Business Model Canvas


Demandware’s Key Partners
  • Acquired order management provider OrderGroove
  • Acquired Tomax
  • Acquired Mainstreet Commerce
  • Acquired CQuotient
  • Acquired X.commerce
  • Acquired ShopVisible
  • Acquired MPOS provider ShopPad
  • Acquired analytics provider Zmags
  • Acquired merchandising software provider CQuotient
  • Acquired enterprise cloud commerce solutions provider Tomax
  • Acquired retail engagement and analytics provider Mainstreet Commerce
  • Acquired predictive intelligence provider Edgecase
  • Acquired mobile commerce innovator ShopPad
  • Acquired experience-driven commerce solutions provider Moovweb
  • Acquired digital content management innovator Zmags
  • Acquired analytics-driven merchandising provider CQuotient
  • Acquired the online storefront provider of the eBay Enterprise commerce platform
Demandware’s Key Activities
  • Platform development
  • Technology
  • Integration
  • Operations
  • Marketing
  • Sales
  • Partnerships
  • Customer service
  • Legal agreements
  • Roadmap
  • eCommerce strategy
  • Training
  • Certifications
Demandware’s Key Resources
  • Platform
  • Software
  • data centers
  • the Cloud
  • more than 350 retail brands across industry verticals including
  • adidas
  • bareMinerals
  • Brooks Brothers
  • Columbia Sportswear
  • Crocs
  • Deckers Brands
  • Donna Karan
  • Frette
  • GoPro
  • L’Oreal
  • Levi’s
  • LUSH
  • Michael Kors
  • New Balance
  • Nikon
  • Oakley
  • Patagonia
  • Puma
  • Reebok
  • s.Oliver
  • Samsung
  • Skullcandy
  • Staples
  • TaylorMade and Tory Burch
  • Development community
  • Partners
  • Employees
  • Shareholders
Demandware’s Value Propositions
  • Demandware is a unified cloud platform empowering retailers to innovate the consumer experience continuously
  • It is a cloud-based e-commerce platform that simplifies digital commerce and provides various solutions for merchants to manage and customize online storefronts
  • It offers a range of capabilities including digital commerce
  • Merchandising
  • Marketing
  • Content
  • Social
  • Mobile
  • Optimization
  • It helps merchants to deliver personalized shopping experiences for their customers
  • It is a scalable platform that is designed to support the growth of merchants’ online and cross-channel commerce operations
Demandware’s Customer Relationships
  • cloud-based software
  • on-demand model
  • self-service
  • automation
  • community
  • personal assistance
  • co-creation
  • long-term contracts
  • customer support
  • online help
  • training
  • consulting
  • professional services
  • online marketing and merchandising
  • omnichannel
  • customer-centric
  • secure
  • scalable
  • flexible
  • customizable
  • robust
  • reliable
  • cost effective
  • efficient
  • high quality
  • trusted
  • reputation
  • integrated
Demandware’s Customer Segments
  • retail
  • brands
  • ecommerce
  • manufacturers
  • wholesale
  • retailers
  • grocery
  • consumer goods
  • telecommunications
  • publishing
  • technology
  • apparel
  • footwear
  • home goods
  • jewelry
  • sporting goods
  • toys
  • non-profits
  • government
Demandware’s Channels
  • Website
  • Customer Support
  • Email
  • Social networks
  • Phone
  • Events
  • Press
Demandware’s Cost Structure
  • data centers
  • IT infrastructure
  • software development
  • maintenance
  • customer service
  • marketing
  • employees
  • offices
Demandware’s Revenue Streams
  • subscriptions
  • fee for service
  • revenue sharing

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Demandware’s Revenue Model


Demandware makes money by combining different business models. Below, you will find the list of the different monetization strategies identified for this company:

  • Software as a Service (SaaS)
  • Trialware
  • Subscription
  • Corporate renaissance
  • Online marketplace
  • Technology trends
  • Mass customization
  • Codifying a distinctive service capability
  • Benchmarking services
  • On-demand economy
  • Layer player
  • Add-on
  • Integrator
  • Ecosystem
  • User design
  • Self-service
  • Product innovation
  • Digital
  • Access over ownership
  • Flat rate
  • Bundling
  • Disruptive trends
  • Take the wheel
  • Blue ocean strategy
Analytics


Market Overview
  • Patterns
  • Sectors
  • Categories
  • Companies
  • Right click on the nodes to explore

Demandware’s Case Study


Demandware's CASE STUDY

Demandware's journey from its inception in 2004 to becoming a game-changer in the e-commerce industry is nothing short of remarkable. As a cloud-based e-commerce platform, Demandware has transformed how retailers and brand manufacturers manage their online stores. So, let's dive into the details of what makes Demandware unique and exemplary by exploring some fascinating case studies with a storytelling approach.

The Birth of a Game-Changer

In the early 2000s, the e-commerce landscape was rapidly evolving. Retailers faced significant challenges in creating scalable and flexible online stores that could adapt to ever-changing consumer behaviors. This was the backdrop against which Demandware emerged. Founded by Stephan Schambach in Burlington, Massachusetts, Demandware was built on a simple yet powerful vision: to empower businesses with a cloud-based platform that streamlined and simplified digital commerce. Stephan Schambach, an e-commerce visionary, articulated the goal to "create a ‘Demandware Commerce’ that puts freedom to innovate back into the hands of the retailers.” His statements underpinned what was to become a groundbreaking platform in e-commerce.

The Scalability Playground: adidas

The need for a scalable, reliable e-commerce platform became evident as major players like adidas entered the digital realm. The challenge for adidas was to manage a global brand's online presence while catering to a diverse customer base. With Demandware, adidas found a platform that not only supported its existing needs but also provided room for growth. In 2014, adidas transitioned to Demandware’s cloud-based platform, enhancing its website performance and enabling seamless updates. This shift increased adidas' e-commerce revenue by 30% within the first year (source: Demandware internal data). The scalability offered by Demandware ensured that adidas could handle peak shopping seasons without performance issues, making it possible for the brand to meet the demand effectively.

Personalized Shopping Experiences: L’Oreal

Personalization is a crucial element of contemporary digital commerce, and no brand understands this better than L’Oreal. Consumers in the beauty segment crave personalized experiences that cater to their unique preferences. L’Oreal tapped into Demandware’s robust customization tools to deliver this at scale. Leveraging Demandware's capabilities, L’Oreal launched personalized beauty recommendation engines, interactive tutorials, and customized shopping experiences across its multiple brands. As a result, L’Oreal saw a 25% increase in customer engagement and a 20% rise in average order value within the first year of deployment (source: L’Oreal case study, 2017). The flexibility of Demandware's platform allowed L’Oreal to integrate these personalized elements seamlessly, demonstrating the strength of customizable digital commerce solutions.

Seamless Omnichannel Integration: Brooks Brothers

For legacy brands like Brooks Brothers, maintaining consistency across online and offline channels is essential. This iconic brand sought an e-commerce solution that could integrate its extensive brick-and-mortar footprint with its online store. Brooks Brothers integrated Demandware’s platform in 2013, unifying its inventory and order management systems with its e-commerce operations. The results spoke volumes: Brooks Brothers reported an 18% increase in online sales and a 15% reduction in fulfillment costs within the subsequent year (source: Brooks Brothers internal reports). Demandware’s omnichannel capabilities enabled a streamlined customer experience, effectively blending online and offline interactions.

Cutting-Edge Mobile Commerce: GoPro

As mobile commerce gained traction, action camera maker GoPro recognized the need to deliver a frictionless mobile shopping experience. Collaborating with Demandware, GoPro developed a mobile-optimized website designed to engage its tech-savvy audience. Upon deploying Demandware's mobile solutions, GoPro saw a 40% increase in mobile transactions within six months (source: GoPro case study, 2015). The mobile-first approach, coupled with Demandware’s seamless integration, allowed GoPro to meet its customers where they were – on their smartphones and tablets.

The Unparalleled Flexibility: A Case of Personalized Service

One of Demandware's standout features is its high degree of flexibility, enabling retailers to tailor-make their digital commerce strategies. Companies like Tory Burch and Puma have leveraged Demandware to innovate continuously, offering personalized services that enhance customer engagement. Due to the platform's adaptability, Puma launched various real-time marketing campaigns, leading to a 35% increase in conversions during promotional events (source: Puma internal data). Tory Burch, on the other hand, utilized Demandware to roll out limited-time collections swiftly, ensuring timely and unique offerings for their customer base.

Expert Insights on Demandware’s Success

Leading industry analysts and experts have recognized Demandware’s influence on the e-commerce landscape. "Demandware revolutionized the e-commerce space with its SaaS model, allowing for constant innovation and flexibility," said Joe Galvin, Chief Research Officer at Vistage Worldwide. Moreover, Harvard Business School Professor Michael E. Porter remarked, "The ability to provide a platform that combines scalability, customization, and seamless integration is a game-changer in the retail tech sector. Demandware’s approach allowed retailers to focus on their core competencies while leaving the technical complexities to the platform."

Conclusion: A Platform of Possibilities

Demandware's journey from a startup to a big player in e-commerce underscores the power of innovation and adaptability. Its versatile, cloud-based e-commerce solutions have helped brands like adidas, L’Oreal, Brooks Brothers, and GoPro achieve significant growth and customer satisfaction. With a robust set of features tailored to meet diverse business needs, Demandware continues to stand out as a beacon of modern digital commerce excellence. By offering scalable solutions, unparalleled flexibility, and cutting-edge technology, Demandware not only simplified the complexities of online retailing but also set the stage for future advancements in e-commerce. The legacy of Demandware, now part of Salesforce, embodies what a blend of vision, technology, and strategic execution can achieve in the digital age.


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