LONDON, November 26 /PRNewswire/ -- The Prologic Report - 'Technology in Fashion' - presents new market research into the challenges and issues faced by the UK fashion industry. Prologic http://www.prologic.com the leading provider of software, services and consultancy to the fashion lifestyle sector, reveals that sentiment in the sector is actually relatively positive given the overall economic situation.

Produced in partnership with Oracle and carried out by retail industry market research specialist Martec, The Prologic Report - 'Technology in Fashion' - gives a crucial insight into strategies for surviving and prospering in the current economic climate. It also examines investment priorities for systems, IT budgets, satisfaction with current systems and views on the relatively new concept of Software as a Service (SaaS).

Executive Summary of The Prologic Report - This UK fashion industry survey covers companies with total sales of GBP5.6 billion and a total of 5,214 stores, representing a statistically significant 16% of the UK fashion industry. - 80% of companies interviewed have a cost reduction focus as their principal means of surviving in the current economic climate. - 64% of companies consider that after cost reduction, the next most important strategy is development or enhancement of multi-channel retailing and transactional web sites. - Most companies see the web as a way of increasing sales at a lower cost and increasing the size of their market. - For 49% of companies, web site and e-commerce systems come out top in terms of investment priority over the next three years. - At 1.8% of sales, IT budgets in the fashion industry are higher than the 1.3% of sales average across the UK's leading 100 retailers. - Disruption to the business is the main reason companies cite for not investing in IT projects. - More than half of fashion retailers have not heard of Software as a Service, (SaaS) but when the concept is explained, the majority agree that it is a good way to buy software.

The research 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 16% of the UK's clothing, footwear and accessories market.

Sam Jackson, chief executive, Prologic, http://tinyurl.com/5b643u comments, In the current economic climate, companies are clearly looking for strong ROI arguments before investing in people, IT, or services. As a result, most fashion companies are not only reviewing expenses but also key processes that will simplify and reduce costs whilst maximising sales and profits. Fashion retailers are looking to maximise sales opportunities by expanding into multi-channel retailing both domestically and internationally, through franchising, e-commerce and new overseas stores. In particular, home shopping/web sites are identified as the top investment priority delivering the highest return on investment over the next year.

Fran Riseley, Practice Manager at Martec International who undertook the research, comments, It is unsurprising that retailers are keen to maximise the opportunities presented to them given the current economic climate, but the optimism displayed by their intentions to actually invest in new sales channels is very encouraging.

However, while 97% of respondents expect IT budgets to remain at the same level or slightly higher in 2009, organisations are concerned about the timing of investment and the risk of business disruption that such investment can cause. Despite this, the survey reveals that, as yet, few organisations in this sector have made any attempts to understand the new, lower risk approaches to achieving technology change. Indeed 57% had never heard of Software as a Service - a figure that is even higher outside the IT department. However, those respondents expressing an opinion on SaaS rated the removal of capital outlays as the most important feature, followed closely by lower risks and a pay-as-you-go model.

Prologic's Jackson concludes, A reluctance to invest capital in the current economy is no longer a barrier to leveraging the best systems to support growth and change. New concepts such as Software as a Service enable retailers to improve online services and achieve effective multi-channel retailing without incurring upfront significant cost or risk.

For your free copy of The Prologic Report 2008/09 - 'Technology in Fashion', please go to http://www.prologic.com/saas

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, http://tinyurl.com/6cb4bf 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, LK Bennett, Paul Smith, Ted Baker, TM Lewin, White Stuff and many other high street names.

For further information, please contact: Will Gardiner Manuela Spinnler itpr Head of Marketing http://www.itpr.co.uk Prologic plc +44(0)1932-578800 +44(0)1442-876277

or further information, please contact: Will Gardiner, itpr, +44(0)1932-578800; Manuela Spinnler, Head of Marketing, Prologic plc, +44(0)1442-876277