Global beauty brands group THG PLC has announced this week that it will discontinue its OnDemand division - its print on demand solution - with Jon Robinson, North West Business Editor of Manchester Evening News reporting that 180 jobs are at risk. The paper also reports THG are closing cycling e-commerce site ProBikeKit.
This comes as the group announces a a new 10 year partnership with beauty e-commerce retailer Maximo Group which will see All Beauty and Fragrance Direct move to the THG Ingenuity platform and THG will provide warehouse and fulfilment services for Maximo in the UK from Q2 2023.
As per The Manchester Evening News filing, a THG spokesperson commented, "Following a strategic review of our OnDemand division, as announced in THG’s trading update of 17 January 2023, we can confirm that we are proposing to discontinue operations in the OnDemand division across all sites. We are currently consulting with impacted colleagues and will take steps to minimise the number of redundancies.
"We are also consulting with certain colleagues in THG Studios where, following the closure of OnDemand, we expect associated workflow to reduce proportionately. THG is committed to supporting all affected colleagues and, where possible, we will endeavour to find colleagues alternate roles within the wider THG Group."
Meanwhile the success of the new ten year partnership with Maximo is being celebrated today.
“We are proud to announce our partnership with Maximo. This represents the early fruits of our focus on larger enterprise customers and underlines our position as the online partner of choice for the prestige beauty industry. I am delighted with the progress of our refocused sales team, with our pipeline continuing to build momentum. Our unique end to end global multichannel solution means our addressable market across beauty, FMCG and retail is significant and will continue to expand as a result of our continuous programme of innovation,” says Matthew Moulding, Chief Executive Officer, THG PLC.
The end-to-end technology and fulfilment services agreement encompasses: website services including design, build, hosting and maintenance; warehousing and fulfilment services; and end customer delivery services via THG’s network of global couriers.
The deal is expected to add in excess of £150 million GMV to the Ingenuity platform annually, with the ambition to re-platform the site by the end of Q2 2023.
The Maximo Group appears to be consortium of investors including the owners of All Beauty, the Guernsey Investment Fund, and private investors.
“Aligning our digital strategy with THG Ingenuity’s technology and operational capabilities will enable our customers to benefit from an enhanced shopping experience, from browsing on site, through checkout to delivery. As a brand owner, THG understood our ambitions from the outset, with Ingenuity’s track record of re-platforming large beauty brands making them a natural strategic partner. We have been deeply impressed with the speed at which Ingenuity have delivered and their commitment to a true partnership from outset,” says Ian Smith, Maximo Group.