Demandware's Strong Momentum Continues as Research Shows that Market Majority Prefers On-Demand eCommerce Technology

WOBURN, Mass., March 1 /PRNewswire/ -- Demandware, Inc., the global leader in on-demand ecommerce, today announced record performance in 2009, fueled by new customer wins, multi-site implementations of its ecommerce platform, global expansion and new product capabilities. Its success in 2009 was capped by recent research by a leading independent analyst firm indicating that 55% of online retailers prefer an on-demand ecommerce solution over in-house, licensed applications, a trend that Demandware knows positions it for accelerated growth in 2010.

Key highlights reported by Demandware for 2009 include:

• New client relationships encompassing more than 60 retail and consumer brands across apparel, fast-moving consumer goods, telecommunication and other industries
• 68 new client sites launched on the Demandware® eCommerce Platform including Anne Klein, Burton Snowboards, Columbia Sportswear, Crocs, Frederick's of Hollywood, lucy Activewear, Mikasa, Pfaltzgraff, Rachel Roy, s.Oliver and SportScheck
• 182 percent increase in aggregate online revenue supported by its platform
• 34 percent year-over-year online sales growth for Demandware clients during the 2009 holiday season -- data that is in sharp contrast to the 3.5% industry average as reported by the research group comScore
• Continued global expansion through partnership with Netrada, the European market leader of full-service ecommerce solutions for the fashion and apparel industry
• 99.99 percent platform availability, not including scheduled maintenance
• More than 80 new product features and enhancements delivered automatically to all Demandware clients
• General availability of a full-featured, customizable mobile commerce storefront, with Barneys New York first to launch a mobile storefront on Demandware in Q4 2009

Research Shows Retailers Prefer On-Demand eCommerce Solutions over Licensed Applications

The change in market preference toward on-demand solutions was recently ratified by independent market research conducted by a leading analyst firm. According to Forrester Research's "2010 US Online Retail Technology Investment Outlook," released on January 14, 2010, "Today, ecommerce solutions are largely in-house, but retailers are interested in other options. Online retailers largely support current online stores in-house with internal IT staff and resources.  But as they look to replace their current solutions, many are interested in other ecommerce technology delivery and support models. 55% are interested in working with external service providers (software-as-a-service [SaaS] or hosted/managed solutions) moving forward."

This shift is driven by recognition among ecommerce executives that rigid legacy platforms are proving inadequate for retailers looking to be at the forefront of the consumer online experience. Increasingly, retailers recognize that competitive advantage is not in the management of IT infrastructure, but rather in the ability to continually innovate to meet consumer expectations. On-demand solutions provide several operating advantages over licensed, on-premise applications, including increased reliability of site performance and security, elimination of the cost and expense of upgrading licensed applications, and opportunity for redeploying scarce resources, including in-house developer talent, to driving unique consumer experience innovations.

Demandware's position as a leader in on-demand ecommerce has been recognized by several major analyst firms including Forrester, who cited Demandware as the "leading on-demand solution" in its Forrester Wave: B2C eCommerce Platforms, Q1 2009 (January 2009) and Patricia Seybold Group who stated Demandware is "the leading on-demand ecommerce software offering" in a November 2008 report.

A Legacy of Innovation

Demandware has a history of pioneering innovation as the first-to-market with an enterprise-class on-demand ecommerce solution, a complete in-house development environment for platform customizations and extensions, and continuous merchandising innovation. Leading the charge of change, Demandware added more than 80 new features to the Demandware eCommerce Platform in 2009, including:  

• SiteGenesis™ Storefront – A best-in-class online storefront that combines best practices in site design, usability, site merchandising, information architecture and technical architecture, to provide a blueprint for building next generation ecommerce sites
• Active Merchandising® Metrics-Driven Merchandising - An online selling engine that controls and automates merchandising interactions across search, personalization, analytics, promotions and catalog
• Mobile Storefront – A full-featured, customizable mobile storefront template with all of the functionality retailers need to create a compelling shopping experience on a mobile device, including search, navigation, product catalog, pricing, checkout, content management, security and inventory. Demandware provides a single, unified environment for managing both the ecommerce website and the mobile storefront simultaneously
• Search and Navigation – An enhanced indexing of product numbers, explained search results, alternative spelling of brand names and enhanced handling of refinement values

"We experienced record growth despite the challenging market conditions of 2009. In addition to the markets where we have been traditionally strong, we expanded into new areas such as telecommunications, consumer manufacturing and electronics," said Tom Ebling, CEO of Demandware.  "With research now showing that the market majority prefers an on-demand ecommerce solution, there is no company more qualified than Demandware to lead the charge. With our tremendous network of customers and partners, combined with our innovative vision for ecommerce, we are positioned for tremendous growth in 2010."

About Demandware, Inc.

The trusted, global leader in on-demand ecommerce, Demandware revolutionizes how businesses deliver customized shopping experiences to consumers in the digital world. Only Demandware combines the on-demand ecommerce platform rated #1 by industry analysts, an open ecosystem of partners that extend the value of the platform, and measurable commitment by its employees to enabling client revenue growth. Demandware continually sets industry standards for market innovation and client satisfaction. Demandware clients include industry leaders such as Bare Escentuals, Barneys New York, Burton Snowboards, Columbia Sportswear, Crocs, Frederick's of Hollywood, Hanover Direct, Jones Apparel Group, Lifetime Brands, Playmobil and s.Oliver. For more information about Demandware, visit www.demandware.com , call 888-553-9216 or email [email protected].

SOURCE Demandware, Inc.