Fashion Business

[Jtothewhat]

Stores as tastemakers are a dead proposition. That's where the real shift has happened. Few people go to stores anymore to discover new talent.

This is depressing to me.. I've always held onto the belief that even as e-commerce dominates the market more and more that niche and passionate b&m stores will still be able to survive and even flourish high end fashion market because of the service and ''guidance'' they can provide to some.. I would be curious to know if some more knowledgable people (Faust, Zamb..others) agree with this..or if you think that the era of b&m truly has a timer on it.

[NOHSAD]

From a mass market/consumer point, B&M is still doing well. The amount of people going into said place has decline over the past few years, that's for sure, but the majority still prefers going into a store in person for clothing rather than the potential hassles of online shopping. From a niche /Specialty perspective, I believe it's gradually declining and stores are adapting to e-commerce or pure e-play to reach a wider audience than just their domestic ones.

Part of this is, of course, how easy it is to find what you want online and if you're willing to wait, can have it shipped to your house/workplace. No stress and no worrying about special ordering from the physical store which will cause extra money and time (normally), especially if your local boutique doesn't carry a lot of pieces from X designer's current season. It's a shame though, because boutique always presented an intimate experience to customers that frankly, can't be duplicated via web shops.

[ES3K]

and we will see more of this coming, as people who are holding on for dear life will somehow let go by saying to themselves, "if people like Moschino, Gaultier and KVA cant make it then how can I?"

AS McQueen once said, to survive in this business one has to be aggressive and have aggressive feelings.....
And then they say designers are making huge profits from high markups on designer goods........

I've never run a fashion label, but there will always be a chance for small niche designers with a good/unique product. I think the problems begin when you want to go big -- getting external investors aboard (with some "5-year-plan"), doing runway shows, opening expensive flagship stores etc. And if you then don't really make in time, so that the masses know your name and go for your bags and you can sell licenses for perfume and sunglasses... it might get difficult. Or with regards to JPG and V&R, if you made a name but nobody wants to wear your stuff, you can drop clothing altogether and become a perfume label, which probably isn't too bad either.

To me it looks like e. g. LEB is doing fine, unique leather (not my cup of tea but that's another story), only a handful of fine retailers... and A$ap Rocky isn't wearing his leather on Instagram (yet!).

[Faust]

This is depressing to me.. I've always held onto the belief that even as e-commerce dominates the market more and more that niche and passionate b&m stores will still be able to survive and even flourish high end fashion market because of the service and ''guidance'' they can provide to some.. I would be curious to know if some more knowledgable people (Faust, Zamb..others) agree with this..or if you think that the era of b&m truly has a timer on it.

I have stated my thoughts on this last year.

http://www.businessoffashion.com/articles/opinion/op-ed-stores-becoming-commoditised

[zamb]

interesting read here:

http://www.bbook.com/fashion/independent-fashion-labels-cg/

[BrokenBoards]

From a mass market/consumer point, B&M is still doing well. The amount of people going into said place has decline over the past few years, that's for sure, but the majority still prefers going into a store in person for clothing rather than the potential hassles of online shopping.

Huh? B&M is doing "well" relative to what? Are you talking fast fashion giants or proper designer boutiques? Most B&M retailers took HUGE hits last year in the US and 2015 is looking worse than 2014. I don't know where you're getting your misinformation from, but when traffic goes down for freestanding boutiques, both flagship and multi-brand, sales go down with it.

[zamb]

Huh? B&M is doing "well" relative to what? Are you talking fast fashion giants or proper designer boutiques? Most B&M retailers took HUGE hits last year in the US and 2015 is looking worse than 2014. I don't know where you're getting your misinformation from, but when traffic goes down for freestanding boutiques, both flagship and multi-brand, sales go down with it.

I think by mass market he may mean non designer boutiques. I agree with you that 2015 is already looking worse than 2014. I am shocked to see some stores with today being June 1st already marking down items up to 50% off. I am really not sure I like this whole thing, but something has gotta change. All in all it was fun to have Yoox in the early days, but I think its not looking well for B&M with the lies of the Corner, My Habit and now even style.com transfigurating to e-Commerce later this year..

[BrokenBoards]

I think by mass market he may mean non designer boutiques. I agree with you that 2015 is already looking worse than 2014. I am shocked to see some stores with today being June 1st already marking down items up to 50% off. I am really not sure I like this whole thing, but something has gotta change. All in all it was fun to have Yoox in the early days, but I think its not looking well for B&M with the lies of the Corner, My Habit and now even style.com transfigurating to e-Commerce later this year..

Look at what technology, piracy, and social media did to the music industry...things are going to bottom out before they get better, the herd will be thinned, and the wild wild west of fashion will set in before the end of this decade, if not sooner.

Sales are breaking earlier every season and while it's great for consumers, it's terrible for the rest of the industry. Ssense only waited one week before taking a good chunk of their inventory from 40% to 50%. People are conditioned to wait it out to get the best deals and markdown strategies are being factored into most companies wholesale costs before they even go to market.

[NOHSAD]

Huh? B&M is doing "well" relative to what? Are you talking fast fashion giants or proper designer boutiques? Most B&M retailers took HUGE hits last year in the US and 2015 is looking worse than 2014. I don't know where you're getting your misinformation from, but when traffic goes down for freestanding boutiques, both flagship and multi-brand, sales go down with it.

I'm going to assume you just read the first half of my paragraph....I acknowledge niche/speciality stores or as you refer to them as "freestanding boutiques" struggling. I've noticed as well that some stores are starting to slash S/S prices as well which is interesting because it happened quite early.

[Shucks]

Sales are breaking earlier every season and while it's great for consumers, it's terrible for the rest of the industry. Ssense only waited one week before taking a good chunk of their inventory from 40% to 50%. People are conditioned to wait it out to get the best deals and markdown strategies are being factored into most companies wholesale costs before they go even go to market.

this is very true. the fantasy-level we see some brands price their collections at, in the beginning of a season, are almost pure brand positioning. they are fully aware most of those collections will be sold at a discount, and the margins are calculated to allow for that. sales are big business.

[BrokenBoards]

I'm going to assume you just read the first half of my paragraph....I acknowledge niche/speciality stores or as you refer to them as "freestanding boutiques" struggling. I've noticed as well that some stores are starting to slash S/S prices as well which is interesting because it happened quite early.

No, no I read them both and they were both riddled with incongruences.

[SafetyKat]

Sales are breaking earlier every season and while it's great for consumers, it's terrible for the rest of the industry. Ssense only waited one week before taking a good chunk of their inventory from 40% to 50%. People are conditioned to wait it out to get the best deals and markdown strategies are being factored into most companies wholesale costs before they even go to market.

So if boutiques are putting up sales on their items earlier and earlier, what is this in response to? Are there a few well respected boutiques that serve as "sale trendsetters" that other stores are following? Could the rush to slash prices be attributed to fast fashion retailers which are, in a sense, always on sale?

... or can this just be chalked up to poor consumer activity?

[Faust]

So if boutiques are putting up sales on their items earlier and earlier, what is this in response to? Are there a few well respected boutiques that serve as "sale trendsetters" that other stores are following? Could the rush to slash prices be attributed to fast fashion retailers which are, in a sense, always on sale?

... or can this just be chalked up to poor consumer activity?

Ssense. Though I wouldn't say they are respected - more like hated