Creating powerful global brands since 1938
For busy consumers with little time to shop, it’s vital to have easy access to the latest fashion trends for that special touch of glamour and luxury. The OrotonGroup recognizes this, and since 1938 has captured the hearts of millions of people across Australia, New Zealand, Singapore and Malaysia with a combination of great style, one-of-a-kind details, and warm, personal service.
Sydney, New South Wales, Australia
US$1.5 billion (2011)
SAP Enterprise Resource Planning
Originally set up as a textile designer and importer of fabrics from Japan, the first cult Oroton product emerged in 1951 with a gold metallic mesh compact or “powder puff” for women that became a must-have fashion accessory and put Oroton in the spotlight as a luxury retailer with innovative designs.
Today, Oroton sells a wide range of products for men and women including handbags, satchels and wallets, small leather accessories, jewelry, ties, umbrellas, knitwear, lingerie, men’s underwear and shoes.
Oroton strives to create innovative designs with a focus on luxury and timeless style. In addition to its own brand Oroton, OrotonGroup has also been a leader in the distribution of international premium brands in Australia and New Zealand. Other OrotonGroup brands include GAP and Brooks Brothers.
The OrotonGroup operates a diverse range of retail properties including retail stores, factory outlets, concession stores within department stores, wholesale, and a worldwide Oroton e-commerce website. The company continues to grow with a recent expansion of retail store locations throughout Asia.
To enable their strategic vision, OrotonGroup set out to capitalize on the value SAP software was providing to the organization while enhancing user satisfaction. They had originally implemented the SAP ERP application as their business backbone in 2004. At that time the company also owned a number of upscale Australian retail fashion brands, including Marcs, Morrissey, and Aldo Shoes. In 2006 the company made the decision to divest those brands and focus on the core business brands. With the restructure complete, OrotonGroup realized it needed to rationalize its business software landscape.
OrotonGroup made the decision to continue to invest in SAP software. As a multichannel business with international ambitions – selling an extensive range of merchandise styles, colors, and sizes – SAP was the only system that could meet the breadth of their requirements without disruption to their business operations. Upgrading the existing SAP ERP software to the latest version was the most cost-effective, safe, and logical choice. The OrotonGroup enthusiastically aligned their business processes with the standard SAP ERP functionality knowing the scalability gained would prepare them for future growth.
The SAP ERP software upgrade was completed by SAP GDC India as a technical upgrade. OrotonGroup also upgraded its database and entire SAP hardware environment, some of which was virtualized. The project was managed from Sydney, while the technical upgrade work was done offshore. The SAP ERP software upgrade produced the results the OrotonGroup wanted and provided the foundation to move forward with SAP.
As a result of implementing SAP ERP, The OrotonGroup has been able to control IT costs, even as it continues to grow. While revenue and profits have been increasing, real IT costs have been stable. The retailer can now focus on projects that will deliver real commercial value and a return on investment for the business.
The latest SAP upgrade has yielded greater operational efficiencies which enable the OrotonGroup to streamline taxes, duties, and the other complexities of international trade, easing the way for overseas expansion. It also allows them to focus on running the business, not on the systems, which is critical in today’s competitive retailing environment.
OrotonGroup continues to rely on SAP software to support its international expansion. Having a world-class enterprise resource planning system to underpin their expansion into new markets allows them to continuously adapt and deliver products to consumers that make them feel good.