A discussion draft of the Online Sales Tax Simplification Act of 2016 is expected to be introduced in Congress soon.
At 50%, web and catalog merchant Hanover Direct’s apparel sites--Undergear and International Male--have the highest portion of online sales. Hanover expects web-based sales across all brands to grow 33% this year and account for 20% of all sales.
Hanover Direct Inc. expects web sales across all its brands will grow 33% to $90 million this year and account for 20% of all sales, up from 15.5% last year, Jonathan Kapplow, corporate marketing manager for cataloger and web merchant Hanover Direct, tells Internet Retailer. As had other online merchants, Hanover Direct expected web sales growth to slow this year as the market matured. “The first couple of years we weren’t surprised by the growth because the Internet was new and so you’d expect that,” Kapplow says. “But this year, we’re an established Internet player and so we thought that growth wouldn’t happen again. But it did.”
Hanover Direct, which markets under the Domestications, Company Store, Silhouettes, International Male, Undergear, Clearance World and Gump’s brands, finds its highest percentage of web sales happening in its leading-edge apparel sites, especially Undergear.com, an underwear and loungewear retailer, and International Male, featuring latest fashions for young men. The web accounts for 50% of those brands` sales. “They sell goods that fit easily on the Internet,” Kapplow says. “They’re things that you can’t find easily in the mall.”
Hanover Direct hits all the bases in marketing its web sites. It sends 84 million e-mail messages annually, has partnership agreements with CatalogCity and AOL, maintains an affiliate marketing program with as many as 20,000 partners, optimizes its sites for search engine results, and prints URLs on every page of the 240 million catalogs it mails each year. “When we market, we’re looking for the call to action,” Kapplow says.