The Prologic Report - 'Technology in Fashion' - Fashion Sector Sees eCommerce as the Best way to Combat Recession

In-Depth Research Into the Confidence of the Fashion Sector Reveals Significantly More Optimism and Hope for the Future Than Last Year, as the Focus Shifts From Cost Reduction to Investment, With eCommerce in Fashion the top Priority

BERKHAMSTED, England, December 4 - The Prologic Report - 'Technology in Fashion'
(www.prologic.com/ThePrologicReport/eCommerce/Invitation.aspx)-
presents new market research into the challenges and issues faced by the UK
fashion industry. Prologic www.prologic.com the specialist provider of
software, services and consultancy to the fashion & lifestyle sector, reveals
that there is significantly more optimism and hope for the future than last
year when the recession was just beginning to bite, with eCommerce in fashion
(www.prologic.com/Content.aspx/documentlibrary/pr/080407_ecommerce_por
tal_launch) the top priority.

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Produced in partnership with Oracle and carried out by retail
industry market research specialist Martec, The Prologic Report - 'Technology
in Fashion' - is an annual report that focuses on the challenges and issues
faced by the UK fashion retail sector whilst also providing a crucial insight
into strategies for surviving and prospering in the current economic climate.
It also examines investment priorities for IT budgets and satisfaction with
current systems.

    Executive Summary of Technology in Fashion Prologic Report

    - This UK technology in fashion industry survey covers
      companies with total sales of GBP5.2 billion and a total of 9,030
      stores, representing 18% of the UK fashion industry.

    - 63% said their top priority this year is investment in eCommerce
      in fashion, followed by an increase in wholesaling (58%).

    - 55% of companies predicted their sales would increase next
      year, with 33% predicting they would remain the same, and only 12%
      predicting a decrease.

    - This year companies are reporting their IT spend is
      averaging 2.3% of sales, compared to 1.8% last year.

    - Website sales represent a significant proportion of total
      sales for most fashion industry companies at 6.3% of total sales.

    - The majority of companies have websites that are in profit
      (68%) and half say they achieve profitability within the first year of
      operation. However, this leaves a third that are still not trading
      profitably.

    - Of those that are profitable, 68% say their website is more
      profitable than their stores.

    - 67% of retailers are currently able to offer their customers
      the chance to return products bought online at the store.

    - However, checking store stock levels from the website, a capability
      that consumers are particularly keen on, is currently offered
      by only 30% of companies.

The 'Technology in Fashion' research survey 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 18% of the UK's clothing, footwear and
accessories market.

Sam Jackson, Chief Executive of Prologic, comments, "It is
encouraging to see that the mood is now more optimistic, and that the
majority of retailers are predicting sales will increase. Whilst controlling
costs is still very important, it looks like companies are now more forward
looking and do not see cutting back as the primary way to stay profitable.
Website sales now represent a significant proportion of the total for many
fashion companies, which is clearly why they now see investment in eCommerce
in fashion as a top priority."

Brian Hume, Managing Director of Martec International who
undertook the research, comments, "The evidence is that IT budgets are
returning to their long-term average. IT spend on multi-channel functionality
is up significantly. This year, companies' report that their IT spend is back
to a more normal level and they predict that levels will increase into next
year. Most companies say their website is one of the few areas where they are
seeing sales growth, and so they are scaling up this area of their business.
They are broadening their range, increasing the number of countries covered
and improving website usability."

The 'Technology in Fashion' research report also shows that
considerable efforts are being made to improve the shopping experience for
customers across every channel. However, whilst most retailers (67%) are
currently able to offer their customers the chance to return products bought
online at the store, only 30% of companies are able to check store stock
levels from the website, a capability that consumers are particularly keen
on.

Prologic's Sam Jackson concludes, "There is now a real need
for integrated business systems that provide visibility and accurate
information across all sales channels. As retailers increasingly trade
through their own stores, franchise, wholesale, mail order and over the web,
they need software that can manage and integrate every aspect of their
business operations."

For your free copy of The Prologic Report 2009/10- 'Technology
in Fashion', please go to the Prologic website
(www.prologic.com/ThePrologicReport/eCommerce/Invitation.aspx).

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, 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, Paul Smith, Ted
Baker, TM Lewin, White Stuff and many other high street names.

    For further information, please contact:

    Will Gardiner
    itpr
    +44(0)1932-578800
    www.itpr.co.uk

    Nicola Gibson
    Marketing Executive
    Prologic plc
    +44(0)1442-876277

For further information, please contact: Will Gardiner, itpr, +44(0)1932-578800; Nicola Gibson, Marketing Executive, Prologic plc, +44(0)1442-876277