Demandware Caps a Record Year Driven by Strong Market Adoption of On-Demand eCommerce Technology

Katie Evans

2008 Results Include More Than 30 New Client eCommerce Sites Launched, 67 Percent Increase in Merchandise Revenue and 82 New Product Enhancements

WOBURN, Mass. – February 17, 2009 –
Demandware, the leading on-demand ecommerce solutions provider, today announced outstanding growth and performance in 2008, driven by widespread industry acceptance of on-demand technology. Throughout 2008, Demandware saw continued adoption of its enterprise-class, on-demand ecommerce platform among retail and consumer goods brands in the U.S. and Europe, including industry leaders Asda Direct (with partner eCommera), Barneys New York, Crocs, Frederick’s of Hollywood and Jones Apparel Group.

Demandware reported the following results for 2008:

The sea change toward on-demand solutions intensified over 2008 as more retailers appreciate the operational and economic advantages of the model, particularly in light of today’s dual market challenge of growing the online channel while improving capital efficiency. Increasingly, online retailers recognize that their resources are best spent on revenue-generating activities such as merchandising and marketing, rather than purchasing and maintaining expensive application infrastructure. Demandware provides an enterprise-class, on-demand ecommerce platform with robust merchandising functionality and complete brand control, without the capital burden of an on-premise enterprise license, enabling retailers to get multiple sites up and running quickly, without massive cash outlay.

“Demandware’s business model is very attractive in this current global economy, when large-scale capital infrastructure projects are increasingly difficult to justify. Its on-demand delivery and pricing model makes it cost-effective for companies like Crocs to continue to drive ecommerce projects forward, setting us up for long-term success,” said Chris Ladd, VP of Global eCommerce for Crocs, a Demandware client.

Client Success

2008 was a banner year for Demandware and its clients, as retailers leveraged ecommerce as a major channel for revenue growth and a critical component of their global expansion strategies.

Merchandising and Service Delivery Key Performance Indicators

Demandware saw significant increases across all online sales key performance indicators in 2008, including:

A key benefit of the Demandware model is the assurance of the highest-levels of site availability, performance and security. Demandware service delivery milestones achieved in 2008 include:

Continuous Product Enhancements Enable Merchandising Innovation for Clients

As an on-demand platform, automatic upgrades keep Demandware clients at the forefront of innovation by making it possible to leverage continually the latest in ecommerce best practices. In 2008, Demandware added 82 new features to its eCommerce Platform, including:

Ranked the Leading On-Demand eCommerce Platform by Analysts

Three major analyst firms recognized Demandware as the leader in on-demand ecommerce:

“We had a phenomenal 2008 as the challenging market conditions led more retailers to explore on-demand solutions,” said Stephan Schambach, chairman and founder of Demandware. “Our continued success speaks to the strength of our product offering and, importantly, the benefits of our on-demand model. Savvy, forward-thinking retailers understand that in this market, they need to focus on their core competencies – selling and merchandising their products – not building application infrastructure for ecommerce. At Demandware, we believe that on-demand is the future and look forward to even greater momentum in 2009.”

About Demandware, Inc.

High-growth retailers and consumer brands looking to develop or extend the reach of their B2C ecommerce business trust Demandware as their strategic partner for ongoing success. Demandware solutions, comprised of the only enterprise-class, on-demand ecommerce platform and expert services, deliver merchandising effectiveness, proven site reliability and industry best practices that exceed profitability goals. Only Demandware provides a distinct time-to-market advantage for launching multiple ecommerce sites, customizing the consumer experience from content to code, and maintaining sites at the forefront of ecommerce innovation. Demandware clients include industry leaders such as Bare Escentuals, Barneys New York, Crocs, Jones Apparel Group, House of Fraser, Playmobil and Timberland. For more information about Demandware, visit www.demandware.com, call 888-553-9216 or email info@demandware.com.


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