LONDON, November 26 /PRNewswire/ --     The Prologic Report - 'Technology in 
Fashion' - presents new
market research into the challenges and issues faced by the UK fashion
industry. Prologic http://www.prologic.com the leading provider of software,
services and consultancy to the fashion & lifestyle sector, reveals that
sentiment in the sector is actually relatively positive given the overall
economic situation.



    Produced in partnership with Oracle and carried out by retail
industry market research specialist Martec, The Prologic Report - 'Technology
in Fashion' - gives a crucial insight into strategies for surviving and
prospering in the current economic climate. It also examines investment
priorities for systems, IT budgets, satisfaction with current systems and
views on the relatively new concept of Software as a Service (SaaS).



    
    Executive Summary of The Prologic Report

    - This UK fashion industry survey covers companies with total
      sales of GBP5.6 billion and a total of 5,214 stores, representing a
      statistically significant 16% of the UK fashion industry.

    - 80% of companies interviewed have a cost reduction focus as
      their principal means of surviving in the current economic climate.

    - 64% of companies consider that after cost reduction, the
      next most important strategy is development or enhancement of 
      multi-channel retailing and transactional web sites.

    - Most companies see the web as a way of increasing sales at a
      lower cost and increasing the size of their market.

    - For 49% of companies, web site and e-commerce systems come
      out top in terms of investment priority over the next three years.

    - At 1.8% of sales, IT budgets in the fashion industry are
      higher than the 1.3% of sales average across the UK's leading 100 
      retailers.

    - Disruption to the business is the main reason companies cite
      for not investing in IT projects.

    - More than half of fashion retailers have not heard of
      Software as a Service, (SaaS) but when the concept is explained, the 
      majority agree that it is a good way to buy software.





    The research was conducted via telephone interview with
leading figures across the fashion retail industry, from managing directors
and finance directors to IT directors. The results reflect the opinions of
some 16% of the UK's clothing, footwear and accessories market.



    Sam Jackson, chief executive, Prologic, http://tinyurl.com/5b643u 
comments, "In the current economic climate, companies are clearly looking 
for strong ROI arguments before investing in people, IT, or services. As a 
result, most fashion companies are not only reviewing expenses but also key 
processes that will simplify and reduce costs whilst maximising sales and 
profits. Fashion retailers are looking to maximise sales opportunities by 
expanding into multi-channel retailing both domestically and 
internationally, through franchising, e-commerce and new overseas stores. In 
particular, home shopping/web sites are identified as the top investment 
priority delivering the highest return on investment over the next year."



    Fran Riseley, Practice Manager at Martec International who undertook 
the research, comments, "It is unsurprising that retailers are keen
to maximise the opportunities presented to them given the current economic
climate, but the optimism displayed by their intentions to actually invest in
new sales channels is very encouraging."



    However, while 97% of respondents expect IT budgets to remain
at the same level or slightly higher in 2009, organisations are concerned
about the timing of investment and the risk of business disruption that such
investment can cause. Despite this, the survey reveals that, as yet, few
organisations in this sector have made any attempts to understand the new,
lower risk approaches to achieving technology change. Indeed 57% had never
heard of Software as a Service - a figure that is even higher outside the IT
department. However, those respondents expressing an opinion on SaaS rated
the removal of capital outlays as the most important feature, followed
closely by lower risks and a pay-as-you-go model.



    Prologic's Jackson concludes, "A reluctance to invest capital
in the current economy is no longer a barrier to leveraging the best systems
to support growth and change. New concepts such as Software as a Service
enable retailers to improve online services and achieve effective
multi-channel retailing without incurring upfront significant cost or risk."



    For your free copy of The Prologic Report 2008/09 - 'Technology
in Fashion', please go to http://www.prologic.com/saas



About Prologic

    Stock market-listed, Prologic is a specialist provider of
software, services and consultancy to the fashion & lifestyle sector. The
company's enterprise software application, CIMS, http://tinyurl.com/6cb4bf is
a web-deployed, single solution, multi-channel business system designed to
meet the complex needs of the sector. Modules include planning,
merchandising, store systems, sourcing, warehousing, wholesale, franchise,
eCommerce and reporting.



    Prologic's approach of delivering its software as a single version,
single database product, based on continuous customer-driven improvement,
provides distinct advantages over the traditional practice of interfacing
disparate point solutions.



    With a track record extending over two decades, Prologic has
supported the growth of many of the UK's best known and most successful
brands. Customers include Aquascutum, Fat Face, Hobbs, Liberty, LK Bennett,
Paul Smith, Ted Baker, TM Lewin, White Stuff and many other high street
names.



    
    For further information, please contact:
    Will Gardiner                            Manuela Spinnler
    itpr                                     Head of Marketing
    http://www.itpr.co.uk                    Prologic plc
    +44(0)1932-578800                        +44(0)1442-876277