THG (THGPF) Risk Analysis
Risk Overview Q4, 2021
Source: the company's latest filing for the period ended May 06, 2022, filed May 06, 2022
Risk Change Over Time
No filing history is available.
- Corporate Activity and Growth - Risk 1Customer needs
If we fail to anticipate, understand and deliver against the capabilities and experiences our current and future customers need in a timely manner, they will find alternative providers. As THG continues to grow its business and brands, an understanding of how to continually attract customers whilst retaining our existing customers is essential. This requires a deep and continuous flow of insights supported by processes and systems. By understanding the needs of our customers, THG will continue to differentiate itself from competitors, build compelling value propositions and offers, leverage key drivers to identify opportunities, decrease churn and drive more effective revenue generation. Stable • Utilisation of customer activity and churn data, to understand their appetite for product offerings. • Continuous Net Promoter Score (NPS) surveying allows THG to identify customer challenges rapidly, and respond in a timely manner to emerging trends. • Managed International Customer Service – 24/7 Customer Service for a global audience across live chat, calls, email and social. • Specialised Merchandising executives support the business with brand selections. • Competitor activity and offerings are reviewed regularly to remain abreast of market developments. • Developments in e-commerce trends are monitored to keep abreast of the latest developments and innovations. • Consumers’ changing preferences are monitored internally and by market research to ensure products remain relevant. • Performance targets control key deliverables (net promoter scores, site traffic). • Highly competent buyers and merchandisers are adept at interpreting and acquiring desirable brands. • Product range planning ensures sufficient product offering to cover expected demand. • Buying, merchandising and marketing departments operate cohesively, with regular cross-functional communication. • Customer service levels and complaints are monitored and internet sites are reviewed for customer opinion. • Investment in logistics, fulfilment, delivery, marketing, brand and customer experience to keep our customer appeal. • Use of technology and data to be more targeted and strategic in how we gain new customers and maximise the loyalty and lifetime value of existing customers.
- Corporate Activity and Growth - Risk 2Corporate structure
If we fail to successfully co-ordinate, deliver and execute, at pace, the development of the THG corporate structure, it will impact the successful delivery of our strategy. As part of the continued maturing of our business and to support our ongoing growth and strategic aims, our corporate structure must evolve to provide transparency and clarity to the vision for each element of THG, be it Beauty, Nutrition, Ingenuity or other operating divisions. Improving • Robust processes introduced for the reorganisation and legal entity restructure progressed during 2021 and into 2022. • Ongoing advisory support from third party advisors as part of the restructure. • Realignment and re-engineering of our business processes resulting from the corporate restructure. • Establishment of a standalone Committee for the restructure to oversee action tracking and risk management. • Ongoing recruitment and talent acquisition at senior level, for new roles.
- Corporate Activity and Growth - Risk 3Onboarding and integration
If we fail to successfully onboard and integrate acquisitions whilst continuing to drive our core business, it may impact the pace at which we deliver our strategy. Acquisitions form a critical element of the THG strategy alongside the continuing organic growth of the business. Our strategic acquisitions add scale, skills and breadth to our overall service offering. The successful integration of the acquisitions into our core business are fundamental to us delivering our service offering and achieving our strategic aims. Improving • Formal process for onboarding acquisitions, where processes are aligned to THG standard. • Ongoing advisory support from third party advisors in pre -acquisition due diligence and post-acquisition. • Integrations are delivered by our in-house Integrations team. • Acquisitions and integrations are supported by cross-functional steering Groups, including at least one Executive Sponsor, which meet regularly to review the programme, including status, risks, dependencies and impact. • THG Risk representation in steering Groups to ensure the successful cross-functional execution of acquisitions and integrations and reduce the risk that projects do not deliver their desired outcomes on time or fail to maximise the expected benefits..
Risk Highlights Q4, 2021
Risk Word Cloud
Risk Factors Full Breakdown - Total Risks 12
- Corporate Activity and Growth - Risk 1AddedCustomer needs
If we fail to anticipate, understand and deliver against the capabilities and experiences our current and future customers need in a timely manner, they will find alternative providers. As THG continues to grow its business and brands, an understanding of how to continually attract customers whilst retaining our existing customers is essential. This requires a deep and continuous flow of insights supported by processes and systems. By understanding the needs of our customers, THG will continue to differentiate itself from competitors, build compelling value propositions and offers, leverage key drivers to identify opportunities, decrease churn and drive more effective revenue generation. Stable • Utilisation of customer activity and churn data, to understand their appetite for product offerings. • Continuous Net Promoter Score (NPS) surveying allows THG to identify customer challenges rapidly, and respond in a timely manner to emerging trends. • Managed International Customer Service – 24/7 Customer Service for a global audience across live chat, calls, email and social. • Specialised Merchandising executives support the business with brand selections. • Competitor activity and offerings are reviewed regularly to remain abreast of market developments. • Developments in e-commerce trends are monitored to keep abreast of the latest developments and innovations. • Consumers’ changing preferences are monitored internally and by market research to ensure products remain relevant. • Performance targets control key deliverables (net promoter scores, site traffic). • Highly competent buyers and merchandisers are adept at interpreting and acquiring desirable brands. • Product range planning ensures sufficient product offering to cover expected demand. • Buying, merchandising and marketing departments operate cohesively, with regular cross-functional communication. • Customer service levels and complaints are monitored and internet sites are reviewed for customer opinion. • Investment in logistics, fulfilment, delivery, marketing, brand and customer experience to keep our customer appeal. • Use of technology and data to be more targeted and strategic in how we gain new customers and maximise the loyalty and lifetime value of existing customers.
- Corporate Activity and Growth - Risk 2AddedCorporate structure
If we fail to successfully co-ordinate, deliver and execute, at pace, the development of the THG corporate structure, it will impact the successful delivery of our strategy. As part of the continued maturing of our business and to support our ongoing growth and strategic aims, our corporate structure must evolve to provide transparency and clarity to the vision for each element of THG, be it Beauty, Nutrition, Ingenuity or other operating divisions. Improving • Robust processes introduced for the reorganisation and legal entity restructure progressed during 2021 and into 2022. • Ongoing advisory support from third party advisors as part of the restructure. • Realignment and re-engineering of our business processes resulting from the corporate restructure. • Establishment of a standalone Committee for the restructure to oversee action tracking and risk management. • Ongoing recruitment and talent acquisition at senior level, for new roles.
- Corporate Activity and Growth - Risk 3AddedOnboarding and integration
If we fail to successfully onboard and integrate acquisitions whilst continuing to drive our core business, it may impact the pace at which we deliver our strategy. Acquisitions form a critical element of the THG strategy alongside the continuing organic growth of the business. Our strategic acquisitions add scale, skills and breadth to our overall service offering. The successful integration of the acquisitions into our core business are fundamental to us delivering our service offering and achieving our strategic aims. Improving • Formal process for onboarding acquisitions, where processes are aligned to THG standard. • Ongoing advisory support from third party advisors in pre -acquisition due diligence and post-acquisition. • Integrations are delivered by our in-house Integrations team. • Acquisitions and integrations are supported by cross-functional steering Groups, including at least one Executive Sponsor, which meet regularly to review the programme, including status, risks, dependencies and impact. • THG Risk representation in steering Groups to ensure the successful cross-functional execution of acquisitions and integrations and reduce the risk that projects do not deliver their desired outcomes on time or fail to maximise the expected benefits..
See a full breakdown of risk according to category and subcategory. The list starts with the category with the most risk. Click on subcategories to read relevant extracts from the most recent report.