(Article obtained from WWD: Women's Wear Daily in the April 3, 2009 edition)
New York hasn't seen a retail opening like this one in years. The long-awaited unveiling of TOPSHOP-Topman went off with an extended flourish as a long line of about 500 predominantly "Pretty Young Things" wrapped clear around three city blocks. They screamed, they yelled, with some having even skipped school to witness the event. Others had been waiting since 7:45 for the 11 a.m. opening. The waiting was somewhat alleviated by Topshop staffers distributing cheese biscuits and water to everyone, while neighboring Madewell had set up a coffee stand.
"This is it," said Topshop owner Sir Philip Green, upon which he and Kate Moss stepped up to the giant silk screen that concealed them from the crowd awaiting outside. As it lifted, there was a roar from the crowd and a shower of confetti. Moss mugged for the photographers in her green chiffon gown and leather Barker jacket for some edge from the collection she designs for the retailer. "This is exciting. It's great," Green said. Just a little later, he was seen hugging Steven Roth, chairman and chief executive officer of Vornado Realty Trust, which provided the 40,000-square-foot site at 478 Broadway. Asked if he plans to provide a second location for Topshop, Roth replied, "For sure. For sure." He declined to say where that might be, but one real possibility is 34th Street, where Vornado owns plenty more properties.
The controlled chaos was little surprise considering Green had marshaled all the hype he could for the store, holding not one but three parties to mark the opening. As to why there were three, the question was answered by the clothing king's speech on Wednesday night at the second bash. In front of a crowd at Balthazar that included Jennifer Lopez, Kate Moss, Marc Jacobs and fellow billionaires Ron Perelman and Steve Wynn, Green brandished a New York City permit. "This piece of paper came this evening and actually is the permit that finally allows us to open the store. It's only cost us 24 million three hundred thousand dollars," he announced to applause. "It's going in a frame. And I'm going to send it to Mayor Bloomberg and say, "Thanks very much." Kelly Klein stated: "I've been waiting for this store to open for two years", while perusing the goods on offer before the dinner. "I think they are opening at exactly the right time. These are the clothes we all want to buy right now. It's cool and young and cheap." In another corner, Julia Restoin-Roitfeld picked up a new feathered miniskirt. "It's so cute that I'm sure everyone got it," she said, raising perhaps the only concern that Americans expressed about the arrival of the brand. "It used to be that no one would be able to get the clothes because they were in England. Now everyone will be able to get them," pointed out one fashion editor. Meanwhile, Lopez and Marc Anthony got their own tour of the four-floor store. It was only Lopez's second time in a Topshop, but she had caught the fever. "I love it. It's amazing," she said. While Daphne Guinness (a British fashion icon) professed to being a Topshop fan despite her penchant for couture. "I go with my daughter to buy T-shirts, miniskirts, shorts, slacks everything."
"I've never been to Topshop, but I'm always shopping it online," said twentysomething Sophie London, who said she waited an hour and a half to get in, and like many surrounding her, had been intensely curious to see the British-based Topshop's first U.S. emporium. Her conclusion: "It looks awesome." Twenty-five-year-old Erica said she waited since 8 a.m. to get in. "I love fashion. I love Topshop," she explained.
Friday, May 8, 2009
"Economic downturn may be pulling necklines up"
(Article obtained from the Money section of USA Today on March 9, 2009)
Modesty in young women's clothing is getting a boost from the dismal economy. When consumer spending was in excess, retailers could sell to the masses and ignore the more muted voices asking for, say, a decent supply of sleeved shirts or prom dresses that actually show more fabric than skin. However, now, it's the rare retailer who's willing to take the chance of turning off any possible customer. Luxury-store clerks can no longer afford to look down at scruffy shoppers, and store owners of every sort are recognizing the one-size-fits-all approach to retail buying no longer works.
Whether it's more of a fiscal or moral shift, understated and modest girls' clothing may indeed be making a comeback. Even Chanel designer Karl Lagerfeld known for his flashiness declared "bling is over" and noted the economy is prompting a "new modesty," in an interview with the International Herald Tribune this year. Retail consultant Ken Nisch says the trend is more moderation than modesty, but the effect may be the same. "It's not because of a moral revival but about sensibility," says Nisch, chairman of retail brand and design firm JGA. "What's provocative has often been ultra trendy, and it just doesn't make sense to buy things you can't wear for a lot of occasions anymore."
The evidence is found everywhere, from the baggy and shapeless "boyfriend" jeans that are replacing skin tight ones for many young women to the basic fashions seen all over New York these days, says Meredith Barnett, CEO of retail boutique website StoreAdore.com.
"People want to be more comfortable and more covered," says Barnett. "You're not seeing nearly as much risk taking." The trend is forcing a shift in the way retailers do business. Just as teen retailers have come to target the gothic girl, the diva and the street-wear aficionado, they now must recognize that skin is simply not always in. For every girl who embraces strapless tops and micro-mini dresses, there might be one who is trying to abide by either a school or moral dress code. Modest fashion typically calls for covered shoulders, thighs and cleavage but is hardly the definition of frumpy that the term often calls to mind. "For those groups who want to be a little more reserved, (stores) must understand what their needs are and offer them what they want," says retail strategist Cari Bunch of consulting firm Kurt Salmon Associates. "It's essential for survival."
Finding a bit more coverage in their clothing may be a goal of many adult women, but finding fashion that wouldn't be considered "sexy" can be an obsession for mothers of tween and teenage girls. When consumer insights firm BIGresearch polled 5,000 consumers last fall, 64% of those 18 and older agreed or strongly agreed with the statement, "Fashions for young people have gotten too provocative." Brenda Sharman, who became national founder of the teen girl group Pure Fashion in 2006, already knew public sentiment was starting to lean in favor of her modesty mission. However, she didn't think there would be much concern about low necklines and high hemlines in a time of staggering economic pressure and spiraling unemployment. But now, she believes the economy has become a boon. "Fashion's in our court right now," says Sharman, a former model. Pure Fashion has about 700 members who work as models at spring teen fashion shows, which attract about 11,000 people. The group has affiliates in 10 countries, and is signing new groups on its website, PureFashion.com. "Girls need to understand: What they wear sends a message," Sharman says.
Evangelical tween group Secret Keeper Girl was founded in 2004 by author Dannah Gresh, partly in response to a 2003 Time magazine report that $1.6 million was spent the year before on thong underwear for girls ages 7 to 12. The group is circulating a petition it plans to send to the Council of Fashion Designers of America and the Apparel & Footwear Manufacturers Association urging them to consider modesty in their designs. Gresh is hoping to have 50,000 signatures by fall. She says 5,000 have come in on their website, SecretKeeperGirl.com. When they do, Gresh plans to organize a day of shopping at the few stores they think offer appropriate fashion choices for pre-teen girls, including Old Navy, Gap Kids and Children's Place. Gresh, who also started teen group Pure Freedom, which hosts fashion events in up to 80 cities annually, says the parents of her members are relieved the movement is getting traction. "When clothes get skimpier and skimpier, moms get angrier and angrier," says Gresh, who's written several books including And The Bride Wore White. "But it's harder to appeal (to retailers) when it's become the norm and you're just one mom trying to hold the line."
Many parents agree.
Joe Cummings of Universal City, Texas, links self-esteem issues about appearance in young women to influences including suggestive apparel stores, Hannah Montana and the Bratz doll line. "It is no wonder that this might be the most difficult period in recent history to be a teenage girl in school, or a parent of one," says Cummings, who has a 12-year-old daughter. Jenny Carpenter of Washington has applauded moves by apparel makers such as Shade and Layers to offer more modest choices, but she remains appalled by the marketing many retailers use to pitch their products. "Why are retailers using sex to sell to young women?" asks Carpenter, who has four sons. "My boys will one day be men, and I want them to respect women for who they are -- mind, body and soul -- instead of drooling after them because of the amount of skin they're showing."
Nordstrom spokeswoman Brooke White says the chain did make sure to keep modest selections, which are available depending on demand in different regions of the country. Macy's new "localization" strategy tailors apparel and other products by store and will include all Macy's by June. Spokesman Jim Sluzewski says, "In those stores where a more modest apparel assortment is expected by the customer, that's what we're working to deliver." Modest or not, young people tend to prefer specialty stores over department stores, and that trend was evident during recent "mall missions" conducted by Pure Fashion. During these trips, groups of girls who are 14 to 18 years old fanned out across shopping areas to rate retailers on their apparel and atmosphere. They awarded Pure Fashion seals of approval to those that passed muster on at least seven out of 10 areas on their checklist, which includes appropriate apparel, mannequins and music. American Eagle, Anthropologie and Banana Republic got the Washington, D.C., group's highest ratings, while Delia's, J. Crew and Ann Taylor all got the Pure Fashion thumbs up elsewhere. "J. Crew is my favorite store, " says Ashley Nowak, a 14-year-old Pure Fashion member from Alpharetta, Ga. "Almost all of the other stores today have booty shorts and tube tops, that are not only revealing, but also set an inaccurate image of what beauty is supposed to look like."
Elsa Rose Hoffmann, who leads Pure Fashion in the D.C. area, says most stores were "very receptive" during a recent outing in Georgetown: Store managers would ask, "What can we do to improve?" Still, ultimately, all her members really want are options. Hoffmann says most stores these days are acceptable for girls who "know how to shop" with an eye toward modesty.
"Everybody's seeing their bottom lines shrinking, so they want to sell to those who wear modest clothing, as well as those who want to wear it in a more risque manner," says Hoffmann. "And that's fine with us."
Modesty in young women's clothing is getting a boost from the dismal economy. When consumer spending was in excess, retailers could sell to the masses and ignore the more muted voices asking for, say, a decent supply of sleeved shirts or prom dresses that actually show more fabric than skin. However, now, it's the rare retailer who's willing to take the chance of turning off any possible customer. Luxury-store clerks can no longer afford to look down at scruffy shoppers, and store owners of every sort are recognizing the one-size-fits-all approach to retail buying no longer works.
Whether it's more of a fiscal or moral shift, understated and modest girls' clothing may indeed be making a comeback. Even Chanel designer Karl Lagerfeld known for his flashiness declared "bling is over" and noted the economy is prompting a "new modesty," in an interview with the International Herald Tribune this year. Retail consultant Ken Nisch says the trend is more moderation than modesty, but the effect may be the same. "It's not because of a moral revival but about sensibility," says Nisch, chairman of retail brand and design firm JGA. "What's provocative has often been ultra trendy, and it just doesn't make sense to buy things you can't wear for a lot of occasions anymore."
The evidence is found everywhere, from the baggy and shapeless "boyfriend" jeans that are replacing skin tight ones for many young women to the basic fashions seen all over New York these days, says Meredith Barnett, CEO of retail boutique website StoreAdore.com.
"People want to be more comfortable and more covered," says Barnett. "You're not seeing nearly as much risk taking." The trend is forcing a shift in the way retailers do business. Just as teen retailers have come to target the gothic girl, the diva and the street-wear aficionado, they now must recognize that skin is simply not always in. For every girl who embraces strapless tops and micro-mini dresses, there might be one who is trying to abide by either a school or moral dress code. Modest fashion typically calls for covered shoulders, thighs and cleavage but is hardly the definition of frumpy that the term often calls to mind. "For those groups who want to be a little more reserved, (stores) must understand what their needs are and offer them what they want," says retail strategist Cari Bunch of consulting firm Kurt Salmon Associates. "It's essential for survival."
Finding a bit more coverage in their clothing may be a goal of many adult women, but finding fashion that wouldn't be considered "sexy" can be an obsession for mothers of tween and teenage girls. When consumer insights firm BIGresearch polled 5,000 consumers last fall, 64% of those 18 and older agreed or strongly agreed with the statement, "Fashions for young people have gotten too provocative." Brenda Sharman, who became national founder of the teen girl group Pure Fashion in 2006, already knew public sentiment was starting to lean in favor of her modesty mission. However, she didn't think there would be much concern about low necklines and high hemlines in a time of staggering economic pressure and spiraling unemployment. But now, she believes the economy has become a boon. "Fashion's in our court right now," says Sharman, a former model. Pure Fashion has about 700 members who work as models at spring teen fashion shows, which attract about 11,000 people. The group has affiliates in 10 countries, and is signing new groups on its website, PureFashion.com. "Girls need to understand: What they wear sends a message," Sharman says.
Evangelical tween group Secret Keeper Girl was founded in 2004 by author Dannah Gresh, partly in response to a 2003 Time magazine report that $1.6 million was spent the year before on thong underwear for girls ages 7 to 12. The group is circulating a petition it plans to send to the Council of Fashion Designers of America and the Apparel & Footwear Manufacturers Association urging them to consider modesty in their designs. Gresh is hoping to have 50,000 signatures by fall. She says 5,000 have come in on their website, SecretKeeperGirl.com. When they do, Gresh plans to organize a day of shopping at the few stores they think offer appropriate fashion choices for pre-teen girls, including Old Navy, Gap Kids and Children's Place. Gresh, who also started teen group Pure Freedom, which hosts fashion events in up to 80 cities annually, says the parents of her members are relieved the movement is getting traction. "When clothes get skimpier and skimpier, moms get angrier and angrier," says Gresh, who's written several books including And The Bride Wore White. "But it's harder to appeal (to retailers) when it's become the norm and you're just one mom trying to hold the line."
Many parents agree.
Joe Cummings of Universal City, Texas, links self-esteem issues about appearance in young women to influences including suggestive apparel stores, Hannah Montana and the Bratz doll line. "It is no wonder that this might be the most difficult period in recent history to be a teenage girl in school, or a parent of one," says Cummings, who has a 12-year-old daughter. Jenny Carpenter of Washington has applauded moves by apparel makers such as Shade and Layers to offer more modest choices, but she remains appalled by the marketing many retailers use to pitch their products. "Why are retailers using sex to sell to young women?" asks Carpenter, who has four sons. "My boys will one day be men, and I want them to respect women for who they are -- mind, body and soul -- instead of drooling after them because of the amount of skin they're showing."
Nordstrom spokeswoman Brooke White says the chain did make sure to keep modest selections, which are available depending on demand in different regions of the country. Macy's new "localization" strategy tailors apparel and other products by store and will include all Macy's by June. Spokesman Jim Sluzewski says, "In those stores where a more modest apparel assortment is expected by the customer, that's what we're working to deliver." Modest or not, young people tend to prefer specialty stores over department stores, and that trend was evident during recent "mall missions" conducted by Pure Fashion. During these trips, groups of girls who are 14 to 18 years old fanned out across shopping areas to rate retailers on their apparel and atmosphere. They awarded Pure Fashion seals of approval to those that passed muster on at least seven out of 10 areas on their checklist, which includes appropriate apparel, mannequins and music. American Eagle, Anthropologie and Banana Republic got the Washington, D.C., group's highest ratings, while Delia's, J. Crew and Ann Taylor all got the Pure Fashion thumbs up elsewhere. "J. Crew is my favorite store, " says Ashley Nowak, a 14-year-old Pure Fashion member from Alpharetta, Ga. "Almost all of the other stores today have booty shorts and tube tops, that are not only revealing, but also set an inaccurate image of what beauty is supposed to look like."
Elsa Rose Hoffmann, who leads Pure Fashion in the D.C. area, says most stores were "very receptive" during a recent outing in Georgetown: Store managers would ask, "What can we do to improve?" Still, ultimately, all her members really want are options. Hoffmann says most stores these days are acceptable for girls who "know how to shop" with an eye toward modesty.
"Everybody's seeing their bottom lines shrinking, so they want to sell to those who wear modest clothing, as well as those who want to wear it in a more risque manner," says Hoffmann. "And that's fine with us."
"Boutiques Bloom Amid the Gloom"
(Article obtained from WWD: Women's Wear Daily from March 23, 2009 issue)
Despite the troubled economy, new entrepreneurs are beginning to see an opportunity in specialty lingerie retailing.
Exhibitors and officials at the CurveNY trade show in February said they were pleased with the turnout of established specialty boutiques, but they were surprised by the burgeoning number of entrepreneurial merchants who were entering the intimates field for the first time with start-up specialty stores and e-commerce businesses. "It's a very good sign for the economy," said Laurence Teinturier, vice president of CurvExpo. Among the new merchants are Orchid GB, which is slated to open in Great Barrington, Mass., in June; Lilibea's, scheduled to open in Fleetwood, Pa., in April; Tampa, Fla.-based Lingerie Lace, which will launch in May, and Bra Savvy, which will open in May in Matawan, N.J. There's also Abbyroseonline.com, a Web site based in Landenberg, Pa., that will launch in late April and specialize in solution items such as tops that are partial camis to be worn under low-cut necklines, and Missandpluslingerie.com, which features plus-size lingerie from 1X to 6X and was introduced last March with plans to expand into a brick-and-mortar operation in East Orange, N.J., by end of the year.
Other boutiques that aim to open this year include Juliet Lingerie and Swimwear in Mount Kisco, N.Y.; Mom's Unique Boutique in Huntingdon Valley, Pa.; Guilty Pleasures in Westbury, N.Y., and Yummy Mummy in Manhattan, which will also launch yummymummystore.com. One businesswoman, Beverly Green of Washington, D.C., started her own direct-sales company this month called Bella Forma Intimates. She hosts lingerie events similar to Tupperware parties at her home and at friends' homes, schools and charitable organizations, and sets the stage for bra fittings.
The inspiration for entrepreneurial lingerie retailers is not only the lure of new business opportunities, or learning a new trade. The merchants are buying and selling merchandise that can cost less than a lipstick or a designer café latté. The average retail price for an intimate apparel item in all channels of distribution was $5.47 in the 12 months ending Jan. 31, according to the NPD Group. Some experts believe it's a good time to start a specialty operation because real estate prices are low. And consumers are rejecting promotional and generic-looking merchandise at major stores that often do not provide the personalized service or specialty and fashion products that are the hallmarks of a full-service boutique or Web site. The entrepreneurial challenge in a weak economy is also being ignited by the success of established e-commerce retailers that specialize in innerwear, such as the $1.2 billion victoriasecret.com, $60 million fredericksofhollywood.com and $37 million barenecessities.com, as well as manufacturers such as Jockey, which generated online retail sales of $18.7 million in 2007, according to industry publication the Internet Retailer. There are wholesale-retail businesses online like Cosabella and Only Hearts that also operate brick-and-mortar stores bearing their brand name.
"A lot of new Web site businesses, about a dozen, came to visit us at Curve," said Gregory Gimble, vice president of Puerto Rico-based Va Bien, a shapewear specialist. "A lot of them noted the success of barenecessities.com. Creating Web sites today that are functional, clean and user-friendly cost only between $3,000 to $5,000, and they can be customized. The menu is essentially the same."
Dan Sackrowitz, vice president of barenecessities.com, said consolidation of major stores has turned off consumers. "As department stores restructure, more people are not shopping as much as they used to," Sackrowitz said. "Lower rents, lower minimal square footage sales requirements and the expertise of personalized service are possible factors that are making the opening of new lingerie boutiques an opportunity right now. From an online retail perspective, building and designing a Web site is relatively easy. The challenge is getting enough visitors to your site to justify the expenses."
As a new specialty boutique owner, April Burch, co-owner of Orchid GB, said she's always wanted to open a lingerie boutique, even though she's been a scientist and a researcher of viruses for 15 years. "I've been affected by the economic crisis and have been trying to obtain grants, so I prepared for a life beyond science and research," Burch said. "If we didn't think a lingerie boutique would work in this economy, we wouldn't do it. But we identified a business gap in the small town of Great Barrington, which has a population of 10,000, a community that's well educated, liberal and very sophisticated. We are targeting women around 42 with a median income of $45,000. There's not a single lingerie store within a 50-mile radius. President Obama has inspired people to take on challenges and start up new, small businesses. We're doing that." She also added that "people are really keen on the idea of thinking local, like the green movement. People really want to shop locally in brick-and-mortar shops that give them quality goods and good service… They don't want to go to yet another outlet mall."
Robin Horman, owner of Lilibea's in Fleetwood, Pa., and a former customer service executive at a bank, said she's opening a lingerie shop because the bra sizes at nearby stores, including Victoria's Secret, Boscov's, Target, and Wal-Mart, are "very limited." "My desire to open a boutique was a very personal one because I couldn't walk into a store here and buy a bra that fit me properly," Horman said. "I would have to rely on mail-order, and most of the time the bras didn't fit properly. I could go to Neiman Marcus, but that's a 45-minute drive just to get personalized care." Green of Bella Forma Intimates said during her studies for a master's degree in business administration at the American Intercontinental School in London she moonlighted as a bra fitter at Bravissimo, a 17-unit lingerie chain in the U.K. "I'm avoiding the hiccups of costly overhead," Green said of her direct-sales model. "The only cost to me is my costs. I'm dealing mainly with full-busted women with brands like Panache and its Harlequin line, and will be including Anita Active sports bras. My goal is to make the bra experience affordable and accessible to women. It's a basic need, especially with D and K cup sizes."
Robinson, owner of abbyroseonline.com, a stay-at-home mother, said her idea of creating a "camini," a semi cami that covers cleavage, opened the door for selling the product online in April and at a boutique she plans to open this year. "I will only have to pay a couple of hundred dollars a month to Google for advertising, and leases are cheaper right now to open a boutique," she said. "For an 800-square-foot space in a high-rent district, I would only need to pay $5,000 a month. But I would need to have no less than $30,000 in inventory." Priscilla Thompson, co-owner of Missandpluslingerie.com, said her Web site sells brands such as Shirley of Hollywood, Dream Girl, Elegant Moment and Fantasy Lingerie. She wants to add bras by Carnival and shapewear by Va Bien."We plan to up the marketing with Google search engine ads, because we almost doubled our business from December to February and we think upping the marketing will pay off," said Thompson, noting that orders from the Midwest represent the strongest segment of plus-size business. "We're also planning to open a brick-and-mortar store in East Orange [N.J.] in a few months. Some people don't want to shop online because they don't want to wait for the merchandise to ship, and they miss the shopping experience."
Despite the troubled economy, new entrepreneurs are beginning to see an opportunity in specialty lingerie retailing.
Exhibitors and officials at the CurveNY trade show in February said they were pleased with the turnout of established specialty boutiques, but they were surprised by the burgeoning number of entrepreneurial merchants who were entering the intimates field for the first time with start-up specialty stores and e-commerce businesses. "It's a very good sign for the economy," said Laurence Teinturier, vice president of CurvExpo. Among the new merchants are Orchid GB, which is slated to open in Great Barrington, Mass., in June; Lilibea's, scheduled to open in Fleetwood, Pa., in April; Tampa, Fla.-based Lingerie Lace, which will launch in May, and Bra Savvy, which will open in May in Matawan, N.J. There's also Abbyroseonline.com, a Web site based in Landenberg, Pa., that will launch in late April and specialize in solution items such as tops that are partial camis to be worn under low-cut necklines, and Missandpluslingerie.com, which features plus-size lingerie from 1X to 6X and was introduced last March with plans to expand into a brick-and-mortar operation in East Orange, N.J., by end of the year.
Other boutiques that aim to open this year include Juliet Lingerie and Swimwear in Mount Kisco, N.Y.; Mom's Unique Boutique in Huntingdon Valley, Pa.; Guilty Pleasures in Westbury, N.Y., and Yummy Mummy in Manhattan, which will also launch yummymummystore.com. One businesswoman, Beverly Green of Washington, D.C., started her own direct-sales company this month called Bella Forma Intimates. She hosts lingerie events similar to Tupperware parties at her home and at friends' homes, schools and charitable organizations, and sets the stage for bra fittings.
The inspiration for entrepreneurial lingerie retailers is not only the lure of new business opportunities, or learning a new trade. The merchants are buying and selling merchandise that can cost less than a lipstick or a designer café latté. The average retail price for an intimate apparel item in all channels of distribution was $5.47 in the 12 months ending Jan. 31, according to the NPD Group. Some experts believe it's a good time to start a specialty operation because real estate prices are low. And consumers are rejecting promotional and generic-looking merchandise at major stores that often do not provide the personalized service or specialty and fashion products that are the hallmarks of a full-service boutique or Web site. The entrepreneurial challenge in a weak economy is also being ignited by the success of established e-commerce retailers that specialize in innerwear, such as the $1.2 billion victoriasecret.com, $60 million fredericksofhollywood.com and $37 million barenecessities.com, as well as manufacturers such as Jockey, which generated online retail sales of $18.7 million in 2007, according to industry publication the Internet Retailer. There are wholesale-retail businesses online like Cosabella and Only Hearts that also operate brick-and-mortar stores bearing their brand name.
"A lot of new Web site businesses, about a dozen, came to visit us at Curve," said Gregory Gimble, vice president of Puerto Rico-based Va Bien, a shapewear specialist. "A lot of them noted the success of barenecessities.com. Creating Web sites today that are functional, clean and user-friendly cost only between $3,000 to $5,000, and they can be customized. The menu is essentially the same."
Dan Sackrowitz, vice president of barenecessities.com, said consolidation of major stores has turned off consumers. "As department stores restructure, more people are not shopping as much as they used to," Sackrowitz said. "Lower rents, lower minimal square footage sales requirements and the expertise of personalized service are possible factors that are making the opening of new lingerie boutiques an opportunity right now. From an online retail perspective, building and designing a Web site is relatively easy. The challenge is getting enough visitors to your site to justify the expenses."
As a new specialty boutique owner, April Burch, co-owner of Orchid GB, said she's always wanted to open a lingerie boutique, even though she's been a scientist and a researcher of viruses for 15 years. "I've been affected by the economic crisis and have been trying to obtain grants, so I prepared for a life beyond science and research," Burch said. "If we didn't think a lingerie boutique would work in this economy, we wouldn't do it. But we identified a business gap in the small town of Great Barrington, which has a population of 10,000, a community that's well educated, liberal and very sophisticated. We are targeting women around 42 with a median income of $45,000. There's not a single lingerie store within a 50-mile radius. President Obama has inspired people to take on challenges and start up new, small businesses. We're doing that." She also added that "people are really keen on the idea of thinking local, like the green movement. People really want to shop locally in brick-and-mortar shops that give them quality goods and good service… They don't want to go to yet another outlet mall."
Robin Horman, owner of Lilibea's in Fleetwood, Pa., and a former customer service executive at a bank, said she's opening a lingerie shop because the bra sizes at nearby stores, including Victoria's Secret, Boscov's, Target, and Wal-Mart, are "very limited." "My desire to open a boutique was a very personal one because I couldn't walk into a store here and buy a bra that fit me properly," Horman said. "I would have to rely on mail-order, and most of the time the bras didn't fit properly. I could go to Neiman Marcus, but that's a 45-minute drive just to get personalized care." Green of Bella Forma Intimates said during her studies for a master's degree in business administration at the American Intercontinental School in London she moonlighted as a bra fitter at Bravissimo, a 17-unit lingerie chain in the U.K. "I'm avoiding the hiccups of costly overhead," Green said of her direct-sales model. "The only cost to me is my costs. I'm dealing mainly with full-busted women with brands like Panache and its Harlequin line, and will be including Anita Active sports bras. My goal is to make the bra experience affordable and accessible to women. It's a basic need, especially with D and K cup sizes."
Robinson, owner of abbyroseonline.com, a stay-at-home mother, said her idea of creating a "camini," a semi cami that covers cleavage, opened the door for selling the product online in April and at a boutique she plans to open this year. "I will only have to pay a couple of hundred dollars a month to Google for advertising, and leases are cheaper right now to open a boutique," she said. "For an 800-square-foot space in a high-rent district, I would only need to pay $5,000 a month. But I would need to have no less than $30,000 in inventory." Priscilla Thompson, co-owner of Missandpluslingerie.com, said her Web site sells brands such as Shirley of Hollywood, Dream Girl, Elegant Moment and Fantasy Lingerie. She wants to add bras by Carnival and shapewear by Va Bien."We plan to up the marketing with Google search engine ads, because we almost doubled our business from December to February and we think upping the marketing will pay off," said Thompson, noting that orders from the Midwest represent the strongest segment of plus-size business. "We're also planning to open a brick-and-mortar store in East Orange [N.J.] in a few months. Some people don't want to shop online because they don't want to wait for the merchandise to ship, and they miss the shopping experience."
"Retailing Sweet Spot: Stores Look to Lure Millennial Generation"
As the Millennials continue staking their claim on the fashion and retail landscape, the Baby Boomers are no longer in control. Numbering 64 million nationwide, these savvy and hard-to-please consumers between the ages of 14 and 29 have lots of buying power. They are eager to try what's new and trendy, and although price-conscious, they idolize status brands and are hooked on technology. Females between the ages of 13 and 24 spent $33.7 billion on clothing in the 12 months through April, according to The NPD Group, a Port Washington, N.Y.-based market research firm. That compares with $16.9 billion purchased by 25- to 34-year-old women, including some older members of the Millennials, and $29.8 billion by Baby Boomers between the ages of 45 and 64.
While the struggles of the U.S. economy continue, retailers and fashion brands with California-based companies such as American Apparel that are helping to lead the way, are focused more than ever on the Millennials. The poster girl for the group is Miley Cyrus, the 16-year-old star of the Disney Channel's hit series Hannah Montana. The character she portrays has created a brand empire estimated to reach $1 billion this year through sales of everything from $6 shampoo to $29.50 jeans embellished with antique copper studs.
Companies are changing long used ways of manufacturing and marketing clothing as the Millenials flex their purchasing muscle. “This is the generation that is rethinking everything”, said Debra Stevenson, who tracks fashion and retail at her consulting firm Skyline Studios in Los Angeles. “Fast-moving trends are key because they are changing their minds quickly about things. Tried and true is not the way with this age group, as they have a big interest in discovery and newness”. Fast-fashion firms like Forever 21, Hennes & Mauritz and Zara get it. But more conventional merchants and brands, including Old Navy, appeared to be slower to absorb this message.
The Millennials are even compelling established brands to adjust. Warner Bros., which is home to iconic characters such as Wonder Woman, Bugs Bunny and Superman, acknowledged that unlike previous generations, the Millennials didn't grow up watching its cartoons on TV. That's why the Burbank, Calif.-based movie studio said it must sharpen its strategy for licensing and merchandising through collaborations with retailers and designers that are popular with young women. Among Warner Brothers efforts: teaming up with celebrity-centric boutique Intuition to sell apparel and accessories decorated with the Supergirl S-shield, convincing Diane von Furstenberg to design a capsule collection that is inspired by Wonder Woman for the coming holiday season and jumping into action sports with S3 Supergirl Jam, an annual Southern California festival highlighting female athletes who ride on waves, asphalt, and snow.
To learn more about their preferences, American Apparel began allowing shoppers to write reviews of products on its Web site. Marsha Brady, who oversees creative direction and business strategy at American Apparel, said it “was so logical to ask customers for their opinions on products”. “This Millennial customer, and our customer, wants to tell us what they're thinking about everything”, she said. “They're into self-expression and it's important & it's more than just business…. It's something that is being felt.”
Hot Topic has realized that the way to Millennials' wallets is through their ears. After appointing music industry veteran John Kirkpatrick as its chief music officer last year, the chain revamped its Web site to let customers discover new music via song snippets and band-related merchandise. Millennials also like a good deal. At BB Dakota, a young contemporary brand based in Irvine, Calif., the strategy is to try to look upscale because the Millennials take their cues from the runways, celebrities and magazines. For instance, BB Dakota has upgraded from polyester to silk for frocks that retail for $130. In BB Dakota's fall lineup, the top-selling color for winter coats was a bright orange. “People are trying to be individuals”, said BB Dakota president Gloria Brandes. She also stated: “There are kids who don't have a lot of money but expect to look as if they do”.
The Millennials are forcing companies to reexamine their strategies. “You can't just slap logos on T-shirts”, said Justin Watson, marketing manager at Los Angeles based Mighty Fine Inc., which produces apparel for entertainment brands like Walt Disney Co. Instead, Mighty Fine starts developing a line by identifying the fashion trend before deciding which character would best suit the theme. “We need to keep being innovative”, Watson said.
The Millennials love for quick-turning trends compelled Miss Chievous, a Los Angeles-based company that specializes in tops for 15- to 18-year-olds, to shorten its production schedule so it can deliver goods faster to retailers such as Nordstrom, Macy's, Dillard's and J.C. Penney. Miss Chievous said it goes into production 50 to 70 days before making a delivery, in comparison with previous years when the schedule ran 60 to 90 days. It also ships products to the U.S. from factories in Asia by air, narrowing its profit margins. “It's extremely tough”, said Miss Chievous president Chance Owen. “The Millennial's are causing us to be a lot more aggressive and take gambles on trends. Don't get me wrong. We like her. We're also trying to figure her out”.
To be successful in the apparel retail sector, one must understand consumer behavior and the trends that affect buying behavior of the consumer.
While the struggles of the U.S. economy continue, retailers and fashion brands with California-based companies such as American Apparel that are helping to lead the way, are focused more than ever on the Millennials. The poster girl for the group is Miley Cyrus, the 16-year-old star of the Disney Channel's hit series Hannah Montana. The character she portrays has created a brand empire estimated to reach $1 billion this year through sales of everything from $6 shampoo to $29.50 jeans embellished with antique copper studs.
Companies are changing long used ways of manufacturing and marketing clothing as the Millenials flex their purchasing muscle. “This is the generation that is rethinking everything”, said Debra Stevenson, who tracks fashion and retail at her consulting firm Skyline Studios in Los Angeles. “Fast-moving trends are key because they are changing their minds quickly about things. Tried and true is not the way with this age group, as they have a big interest in discovery and newness”. Fast-fashion firms like Forever 21, Hennes & Mauritz and Zara get it. But more conventional merchants and brands, including Old Navy, appeared to be slower to absorb this message.
The Millennials are even compelling established brands to adjust. Warner Bros., which is home to iconic characters such as Wonder Woman, Bugs Bunny and Superman, acknowledged that unlike previous generations, the Millennials didn't grow up watching its cartoons on TV. That's why the Burbank, Calif.-based movie studio said it must sharpen its strategy for licensing and merchandising through collaborations with retailers and designers that are popular with young women. Among Warner Brothers efforts: teaming up with celebrity-centric boutique Intuition to sell apparel and accessories decorated with the Supergirl S-shield, convincing Diane von Furstenberg to design a capsule collection that is inspired by Wonder Woman for the coming holiday season and jumping into action sports with S3 Supergirl Jam, an annual Southern California festival highlighting female athletes who ride on waves, asphalt, and snow.
To learn more about their preferences, American Apparel began allowing shoppers to write reviews of products on its Web site. Marsha Brady, who oversees creative direction and business strategy at American Apparel, said it “was so logical to ask customers for their opinions on products”. “This Millennial customer, and our customer, wants to tell us what they're thinking about everything”, she said. “They're into self-expression and it's important & it's more than just business…. It's something that is being felt.”
Hot Topic has realized that the way to Millennials' wallets is through their ears. After appointing music industry veteran John Kirkpatrick as its chief music officer last year, the chain revamped its Web site to let customers discover new music via song snippets and band-related merchandise. Millennials also like a good deal. At BB Dakota, a young contemporary brand based in Irvine, Calif., the strategy is to try to look upscale because the Millennials take their cues from the runways, celebrities and magazines. For instance, BB Dakota has upgraded from polyester to silk for frocks that retail for $130. In BB Dakota's fall lineup, the top-selling color for winter coats was a bright orange. “People are trying to be individuals”, said BB Dakota president Gloria Brandes. She also stated: “There are kids who don't have a lot of money but expect to look as if they do”.
The Millennials are forcing companies to reexamine their strategies. “You can't just slap logos on T-shirts”, said Justin Watson, marketing manager at Los Angeles based Mighty Fine Inc., which produces apparel for entertainment brands like Walt Disney Co. Instead, Mighty Fine starts developing a line by identifying the fashion trend before deciding which character would best suit the theme. “We need to keep being innovative”, Watson said.
The Millennials love for quick-turning trends compelled Miss Chievous, a Los Angeles-based company that specializes in tops for 15- to 18-year-olds, to shorten its production schedule so it can deliver goods faster to retailers such as Nordstrom, Macy's, Dillard's and J.C. Penney. Miss Chievous said it goes into production 50 to 70 days before making a delivery, in comparison with previous years when the schedule ran 60 to 90 days. It also ships products to the U.S. from factories in Asia by air, narrowing its profit margins. “It's extremely tough”, said Miss Chievous president Chance Owen. “The Millennial's are causing us to be a lot more aggressive and take gambles on trends. Don't get me wrong. We like her. We're also trying to figure her out”.
To be successful in the apparel retail sector, one must understand consumer behavior and the trends that affect buying behavior of the consumer.
Thursday, May 7, 2009
"Practicality reigns at MAGIC"
(article obtained from WWD: Women's Wear Daily from February 18, 2009 issue)
Most exhibitors of MAGIC adopted a practical approach, emphasizing trend-focused apparel and competitive pricing to woo visiting apparel buyers. For men's and women's clothing at this year’s show, the search for value was driving retail orders from buyers. “We're seeing traction at the lower end, where we're offering value, and the higher end, where we have newness”, said Steve Lawrence, general merchandise manager of men's wear for J.C. Penney Co. Inc. Merchandise that "offers salable newness, nothing tricky". Lawrence was shopping MAGIC for items that fit that bill, including argyle sweaters that were understandable, but not what everybody already has. Overall, Lawrence said "he’s optimistic about fall, not because he expects a surge in business, but because retailers are better prepared than they were last year".
Kevin Morrissey, head buyer of men's for Macy's East, searched for hot items and new classifications. “Customers respond to new ideas”, he said. “We're looking to add some twists to our core items.” He expects fashion outerwear, woven shirts and fleece to connect with customers for fall.
Scott Norris, general manager of The Men's Wearhouse Inc., reported that the company's suit business was robust and that there were no plans to cut back on purchasing. “We have large buying power and we're looking to take advantage of that with quantity”, he stated. For fall, Norris anticipates suit sales will be strong, along with dress shirts and pants. On the sportswear end, he revealed that Men's Wearhouse is converting its MW Tux stores (formerly After Hours) to Men's Wearhouse & Tux and will add denim, T-shirts and a little tailored clothing to appeal to the younger customer who shops in these stores for his rental tuxedo needs.
Retailers shopping the condensed show at the Las Vegas Convention Center looked for updated classics that will offer customers the right mix of familiarity and newness, said David Wolfe, creative director of The Doneger Group. This is the time for tried and true trends. The trick is to refresh and tweak them. For men, this includes hybrid sport coats, muted plaids, argyle sweaters, vests, military-inspired outerwear, bright colors, cardigans and subtle details. For young men, extreme washes, Eighties and Nineties prints, transitional jackets, rugged country influences, plaid hoodies, V-necks or Y-necks and exploded graphics are expected to be strong for fall.
International buyers were also walking the convention center. "We are looking for fitted T-shirts, smaller sizes because the bigger styles don't fit many people in Japan”, said Manabu Shirakana, a buyer for Nano Universe in Tokyo. “We're especially looking for casual, L.A. styles.” Dresses, particularly in colorful prints and dyed batik, were still a big category, and especially long maxidresses.
Most buyers were reluctant to place early orders, but many said they would buy small quantities before the end of the show. They were looking for retail price points well under $100, with $60 or less being the most desirable. At $50 or less, people just pick up what they like and buy it. At more than $50, they'll think twice about it, said Wendy Litowitz Frederick, whose store in Charleston, S.C., caters mostly to tourists.
In response to retailers' concerns, several vendors lowered prices despite the risk of dwindling profit margins. STS Blue, a denim brand, dropped the top range of its jeans to $98 from $120, and their sister brand See Thru Soul reduced its price to $68 from $78. XCVI, a casual contemporary clothier from Los Angeles, offered what it dubbed incentive groups, which cost 30 percent less than the regular line. “Retailing around $100 right now is key”, stated Chris Myers, a sales representative for XCVI.
At this season’s show, bright colors dominated the palette, from fuchsia and tangerine to marigold and poppy red. There were some advocates of neutral hues, including Los Angeles' Ryu, which chose peach for its dresses fancied with ruffles and fringe. Novelty wear was also prevalent. For its new men's line, loungewear label PJ Salvage printed images of eggs and bacon on flannel bottoms priced at $36. Nelli, a contemporary line based in San Diego, enhanced its flirty frocks with heart prints, polkadots, citrus tints and watercolor-inspired splashes.
In the men's market, Premium at MAGIC, a new showcase at the remade, remixed and remodeled MAGIC Man, won early approval Tuesday for its mix of established vendors such as Nicole Farhi and DKNY and new finds like Sand, a Danish clothing company, and Paris-based Hoon. In the juniors section of MAGIC, vendors showed spring and summer styles, often excluding fall, and retailers placed immediate orders for reasonable offerings covering the variety of trends, notably bohemian chic and grunge.
Keeping up with consumer trends is vital to staying profitable in the apparel retail sector... if you cannot keep ahead of the consumers wants, you will fall behind and lose to the competition. Therefore, it is important fashion trends along with consumers spending trends are always being analyzed when determining what to buy for upcoming seasons.
Most exhibitors of MAGIC adopted a practical approach, emphasizing trend-focused apparel and competitive pricing to woo visiting apparel buyers. For men's and women's clothing at this year’s show, the search for value was driving retail orders from buyers. “We're seeing traction at the lower end, where we're offering value, and the higher end, where we have newness”, said Steve Lawrence, general merchandise manager of men's wear for J.C. Penney Co. Inc. Merchandise that "offers salable newness, nothing tricky". Lawrence was shopping MAGIC for items that fit that bill, including argyle sweaters that were understandable, but not what everybody already has. Overall, Lawrence said "he’s optimistic about fall, not because he expects a surge in business, but because retailers are better prepared than they were last year".
Kevin Morrissey, head buyer of men's for Macy's East, searched for hot items and new classifications. “Customers respond to new ideas”, he said. “We're looking to add some twists to our core items.” He expects fashion outerwear, woven shirts and fleece to connect with customers for fall.
Scott Norris, general manager of The Men's Wearhouse Inc., reported that the company's suit business was robust and that there were no plans to cut back on purchasing. “We have large buying power and we're looking to take advantage of that with quantity”, he stated. For fall, Norris anticipates suit sales will be strong, along with dress shirts and pants. On the sportswear end, he revealed that Men's Wearhouse is converting its MW Tux stores (formerly After Hours) to Men's Wearhouse & Tux and will add denim, T-shirts and a little tailored clothing to appeal to the younger customer who shops in these stores for his rental tuxedo needs.
Retailers shopping the condensed show at the Las Vegas Convention Center looked for updated classics that will offer customers the right mix of familiarity and newness, said David Wolfe, creative director of The Doneger Group. This is the time for tried and true trends. The trick is to refresh and tweak them. For men, this includes hybrid sport coats, muted plaids, argyle sweaters, vests, military-inspired outerwear, bright colors, cardigans and subtle details. For young men, extreme washes, Eighties and Nineties prints, transitional jackets, rugged country influences, plaid hoodies, V-necks or Y-necks and exploded graphics are expected to be strong for fall.
International buyers were also walking the convention center. "We are looking for fitted T-shirts, smaller sizes because the bigger styles don't fit many people in Japan”, said Manabu Shirakana, a buyer for Nano Universe in Tokyo. “We're especially looking for casual, L.A. styles.” Dresses, particularly in colorful prints and dyed batik, were still a big category, and especially long maxidresses.
Most buyers were reluctant to place early orders, but many said they would buy small quantities before the end of the show. They were looking for retail price points well under $100, with $60 or less being the most desirable. At $50 or less, people just pick up what they like and buy it. At more than $50, they'll think twice about it, said Wendy Litowitz Frederick, whose store in Charleston, S.C., caters mostly to tourists.
In response to retailers' concerns, several vendors lowered prices despite the risk of dwindling profit margins. STS Blue, a denim brand, dropped the top range of its jeans to $98 from $120, and their sister brand See Thru Soul reduced its price to $68 from $78. XCVI, a casual contemporary clothier from Los Angeles, offered what it dubbed incentive groups, which cost 30 percent less than the regular line. “Retailing around $100 right now is key”, stated Chris Myers, a sales representative for XCVI.
At this season’s show, bright colors dominated the palette, from fuchsia and tangerine to marigold and poppy red. There were some advocates of neutral hues, including Los Angeles' Ryu, which chose peach for its dresses fancied with ruffles and fringe. Novelty wear was also prevalent. For its new men's line, loungewear label PJ Salvage printed images of eggs and bacon on flannel bottoms priced at $36. Nelli, a contemporary line based in San Diego, enhanced its flirty frocks with heart prints, polkadots, citrus tints and watercolor-inspired splashes.
In the men's market, Premium at MAGIC, a new showcase at the remade, remixed and remodeled MAGIC Man, won early approval Tuesday for its mix of established vendors such as Nicole Farhi and DKNY and new finds like Sand, a Danish clothing company, and Paris-based Hoon. In the juniors section of MAGIC, vendors showed spring and summer styles, often excluding fall, and retailers placed immediate orders for reasonable offerings covering the variety of trends, notably bohemian chic and grunge.
Keeping up with consumer trends is vital to staying profitable in the apparel retail sector... if you cannot keep ahead of the consumers wants, you will fall behind and lose to the competition. Therefore, it is important fashion trends along with consumers spending trends are always being analyzed when determining what to buy for upcoming seasons.
Friday, February 27, 2009
"Vente-privee.com Refashions Closeouts"
(Article taken from Business Week and was published on January 11, 2008)
Vente-privee.com is a six-year old French company that holds invitation-only closeout sales over the Internet—and attracts a million unique visitors a day who buy, on average, 40,000 items daily. It is named for the frenzied invitation-only private designer overstock clothing sales that are held in Paris and known as ventes privees. Fashion houses had found ventes privees as a reliable and time-tested way to get rid of overstock. But now such luxury labels and even consumer products companies are increasingly turning to the online alternative for such inventory-clearance over the Internet proving to "have created an entirely new channel for brands". The company has already attracted more than 600 brands including such names as Givenchy, Dolce & Gabbana, and Armani Casa. Now such exclusive brands are being joined by mass-market sellers such as Adidas, Swatch, and Mattel. For such brands, the lure is a greater control over protecting their brand image thanks to Vente-privee.com's exclusive merchandising contracts along with greater efficiency while also earning twice the margins than would have been earned via more traditional closeout sales methods.
Overstock is unavoidable in manufactured goods, thanks to everything from fashion misses to production planning mistakes to unexpected weather. On average, it amounts to between 5% and 10% of all merchandise—and sales of inventory closeouts top $30 billion annually in the U.S. alone. With a neverending supply of overstock along with Vente-privee.com's unique combination of exclusivity, selection, price, and value-added merchandising is paying off for the company. Realizing the opportunity within this niche, others are trying to jump in on the game, however, having built up strong relationships with brands, Vente-privee.com is expected to continue outshining all others (competitors) that try to follow their lead. In fact, the company even claims to be 30 times larger than its nearest rival.
It is important to continually keep up with the latest retail trends, in particular, those that relate to fashion. Good to know how designer brand overstock is redistributed in a timely yet profitable manner. Such e-commerce is only going to continue growing in the future.
Vente-privee.com is a six-year old French company that holds invitation-only closeout sales over the Internet—and attracts a million unique visitors a day who buy, on average, 40,000 items daily. It is named for the frenzied invitation-only private designer overstock clothing sales that are held in Paris and known as ventes privees. Fashion houses had found ventes privees as a reliable and time-tested way to get rid of overstock. But now such luxury labels and even consumer products companies are increasingly turning to the online alternative for such inventory-clearance over the Internet proving to "have created an entirely new channel for brands". The company has already attracted more than 600 brands including such names as Givenchy, Dolce & Gabbana, and Armani Casa. Now such exclusive brands are being joined by mass-market sellers such as Adidas, Swatch, and Mattel. For such brands, the lure is a greater control over protecting their brand image thanks to Vente-privee.com's exclusive merchandising contracts along with greater efficiency while also earning twice the margins than would have been earned via more traditional closeout sales methods.
Overstock is unavoidable in manufactured goods, thanks to everything from fashion misses to production planning mistakes to unexpected weather. On average, it amounts to between 5% and 10% of all merchandise—and sales of inventory closeouts top $30 billion annually in the U.S. alone. With a neverending supply of overstock along with Vente-privee.com's unique combination of exclusivity, selection, price, and value-added merchandising is paying off for the company. Realizing the opportunity within this niche, others are trying to jump in on the game, however, having built up strong relationships with brands, Vente-privee.com is expected to continue outshining all others (competitors) that try to follow their lead. In fact, the company even claims to be 30 times larger than its nearest rival.
It is important to continually keep up with the latest retail trends, in particular, those that relate to fashion. Good to know how designer brand overstock is redistributed in a timely yet profitable manner. Such e-commerce is only going to continue growing in the future.
"A Textile Capital of China is Hobbled by the Downturn"
(Article taken from the New York Times on February 27, 2009)
Shaoxing, China is a coastal city 100 miles southwest of Shanghai that took off in the 1980's as small businesses producing chemical fibers took over its rice paddies. Since the 80's, Shaoxing has become one of the world's largest textile centers. It's 20,000 textile and garment factories were bustling, always bustling with workers at least 6 days of the week producing goods sold at big American retailers such as Wal-Mart and Gap. Now with the economic downturn, textile companies are struggling to survive and many factories in this Chinese city are being forced to shut down as owners face mounting debts and bankruptcy. Beijing issued a dire warning in December: As many as two-thirds of the country's apparel and textile companies could go broke in 2009. Some companies have seen a third of their orders being cut within the last few month while others have seen even larger losses. Beijing has been paying close attention to the troubles facing the textile and apparel industry- it is a $450 billion industry that employs over 20 million workers-making it crucial to China's economy.
With this said, the government has already issued a $586 billion economic stimulus package to help keep factories open. Beijing has also responded with a series of measures to aid textile producers, including: tax credits & rebates, forcing state-owned banks to approve low-interest loans to factory owners, lowering of water fees, and more. However, the struggle is being further complicated by a new labor law along with fierce competition pushing up young migrant workers wages by more than 30 percent in the past 2 years along with fabric and textile buyers from America and Europe coming to expect cheaper prices, year after year. Experts warn that what happens in cities like Shaoxing "could be a barometer of China's trading might, and a window into its social conditions". With millions of migrant workers losing their jobs in a string of coastal towns, Beijing is becoming increasingly concerned about social and political unrest.
Industry officials are staying optimistic stating that "China's textile industry will continue to thrive because of textile-cluster cities like Shaoxing that dominate a particular end of the business by specializing and competing fiercely on price". I believe such attributes of China's textile industry are what they must focus on to be able to even possibly survive the worst economic downturn in three decades for this Asian country.
Within the apparel/textiles industry it is important to understand the recent trends in globalization and to be observant of the effects that the economy is having on a global level and to relate how this affects this industry and the retail sector as a whole.
Shaoxing, China is a coastal city 100 miles southwest of Shanghai that took off in the 1980's as small businesses producing chemical fibers took over its rice paddies. Since the 80's, Shaoxing has become one of the world's largest textile centers. It's 20,000 textile and garment factories were bustling, always bustling with workers at least 6 days of the week producing goods sold at big American retailers such as Wal-Mart and Gap. Now with the economic downturn, textile companies are struggling to survive and many factories in this Chinese city are being forced to shut down as owners face mounting debts and bankruptcy. Beijing issued a dire warning in December: As many as two-thirds of the country's apparel and textile companies could go broke in 2009. Some companies have seen a third of their orders being cut within the last few month while others have seen even larger losses. Beijing has been paying close attention to the troubles facing the textile and apparel industry- it is a $450 billion industry that employs over 20 million workers-making it crucial to China's economy.
With this said, the government has already issued a $586 billion economic stimulus package to help keep factories open. Beijing has also responded with a series of measures to aid textile producers, including: tax credits & rebates, forcing state-owned banks to approve low-interest loans to factory owners, lowering of water fees, and more. However, the struggle is being further complicated by a new labor law along with fierce competition pushing up young migrant workers wages by more than 30 percent in the past 2 years along with fabric and textile buyers from America and Europe coming to expect cheaper prices, year after year. Experts warn that what happens in cities like Shaoxing "could be a barometer of China's trading might, and a window into its social conditions". With millions of migrant workers losing their jobs in a string of coastal towns, Beijing is becoming increasingly concerned about social and political unrest.
Industry officials are staying optimistic stating that "China's textile industry will continue to thrive because of textile-cluster cities like Shaoxing that dominate a particular end of the business by specializing and competing fiercely on price". I believe such attributes of China's textile industry are what they must focus on to be able to even possibly survive the worst economic downturn in three decades for this Asian country.
Within the apparel/textiles industry it is important to understand the recent trends in globalization and to be observant of the effects that the economy is having on a global level and to relate how this affects this industry and the retail sector as a whole.
Friday, February 13, 2009
"A Morningstar for Manufacturing"
(Article taken from the Next Innovation section of Fast Company, March 2009 issue)
Panjiva brings intelligent search and better information to the fashion industry's hunt for suppliers. It all began when Josh Green needed a component supplier in China for an electronics firm that he had been working for. With this special assignment it struck Green the lack of information and transparency available to sourcing professionals
Realizing this need, Green sat down with his friend James Posta, a computer scientist at MIT. Posta felt he could design software that would do for importing [of information] what Google has done for the Web: make search smarter. So in 2006, the duo founded Panjiva. They began with the apparel industry and gathered data from more than 200 sources- governments, private certifiers, not-for-profits. Then they digitized, cleaned, and collated the obtained data to create detailed snapshots of more than 70,000 suppliers, with each being rated from 1 to 100, based on criteria such as the supplier's environmental record and experience serving the U.S. market.
The company charges for database subscriptions and sells reports on individual suppliers. Panjiva has attracted a roster of stellar, diverse fashion icons including Diane von Furstenburg along with almost 90 apparel companies, such as Elie Tahari, J.Crew, Reebok, and Wal-Mart. Green and Psota never intended for their business to be fashion-only and are hoping to broaden their database to include other industries. In fact, Green has had discussions with brands in several other industries including food, housewares, and office supplies and he expects Panjiva's database to eventually have profiles of several million suppliers in a wide array of industries. The keystone to success for Panjiva is trustworthiness- if even one rating is incorrect or bogus it could potentially cause their reputation to plummet.
This article is important to me because as an apparel major, I need to stay up to date to know the latest in trends within the fashion supply chain.
Panjiva brings intelligent search and better information to the fashion industry's hunt for suppliers. It all began when Josh Green needed a component supplier in China for an electronics firm that he had been working for. With this special assignment it struck Green the lack of information and transparency available to sourcing professionals
Realizing this need, Green sat down with his friend James Posta, a computer scientist at MIT. Posta felt he could design software that would do for importing [of information] what Google has done for the Web: make search smarter. So in 2006, the duo founded Panjiva. They began with the apparel industry and gathered data from more than 200 sources- governments, private certifiers, not-for-profits. Then they digitized, cleaned, and collated the obtained data to create detailed snapshots of more than 70,000 suppliers, with each being rated from 1 to 100, based on criteria such as the supplier's environmental record and experience serving the U.S. market.
The company charges for database subscriptions and sells reports on individual suppliers. Panjiva has attracted a roster of stellar, diverse fashion icons including Diane von Furstenburg along with almost 90 apparel companies, such as Elie Tahari, J.Crew, Reebok, and Wal-Mart. Green and Psota never intended for their business to be fashion-only and are hoping to broaden their database to include other industries. In fact, Green has had discussions with brands in several other industries including food, housewares, and office supplies and he expects Panjiva's database to eventually have profiles of several million suppliers in a wide array of industries. The keystone to success for Panjiva is trustworthiness- if even one rating is incorrect or bogus it could potentially cause their reputation to plummet.
This article is important to me because as an apparel major, I need to stay up to date to know the latest in trends within the fashion supply chain.
Friday, February 6, 2009
"The Motorola Sparrow: Retail's Handheld Powerhouse"
The Sparrow is a wireless palm-held device (still in prototype stages) featuring a touch sensitive back panel that keeps the screen free for viewing with the other side serving as a bar-code scanner and a credit card processor- among other things- and being a Motorola product, the Sparrow, also serves as a phone.
The Sparrow was given its name because of it's small, fast, and simple design and capabilities. The concept for the Sparrow began in 2006 when Motorola bought Symbol Technologies, a maker of bar-code scanners. At this point Motorola asked New York-based design consultancy Aruliden to help envision how their expertise could help serve the retail sector specifically. Aruliden cofounder, Rinat Aruh, states "The technology was already there- that's the beauty of the device" and the prototype of the Sparrow was developed quickly.
Shane MacGregor, director of advanced industrial design in Motorola's enterprise mobility division, says the Sparrow concept has been presented to potential clients and from which they have gathered feedback about what they'd want in an actual production model. MacGregor expects Sparrows to become popular in retail stores and states that Motorola already has "a couple of projects in the pipeline that will be either evolutions of this [Sparrow] or some derivative."
Such a device can really play a valuable roll in keeping the retail consumer happy. The bar-code scanner allows inventory to be checked immediately while the credit card processing ability allows for transactions to be made right on the sales floor. Such capabilities would allow for better service to the customer as their needs can be met quicker. It is important as a retail major about to step into a job to know what changes and innovations are on the horizon within my industry.
However fabulous it sounds, will the Sparrow really become "Retail's Handheld Powerhouse"? We shall see! I definitely think it has potential.
(article taken from the Next Futurist section of Fast Company: Dec 2008/Jan 2009 edition)
The Sparrow was given its name because of it's small, fast, and simple design and capabilities. The concept for the Sparrow began in 2006 when Motorola bought Symbol Technologies, a maker of bar-code scanners. At this point Motorola asked New York-based design consultancy Aruliden to help envision how their expertise could help serve the retail sector specifically. Aruliden cofounder, Rinat Aruh, states "The technology was already there- that's the beauty of the device" and the prototype of the Sparrow was developed quickly.
Shane MacGregor, director of advanced industrial design in Motorola's enterprise mobility division, says the Sparrow concept has been presented to potential clients and from which they have gathered feedback about what they'd want in an actual production model. MacGregor expects Sparrows to become popular in retail stores and states that Motorola already has "a couple of projects in the pipeline that will be either evolutions of this [Sparrow] or some derivative."
Such a device can really play a valuable roll in keeping the retail consumer happy. The bar-code scanner allows inventory to be checked immediately while the credit card processing ability allows for transactions to be made right on the sales floor. Such capabilities would allow for better service to the customer as their needs can be met quicker. It is important as a retail major about to step into a job to know what changes and innovations are on the horizon within my industry.
However fabulous it sounds, will the Sparrow really become "Retail's Handheld Powerhouse"? We shall see! I definitely think it has potential.
(article taken from the Next Futurist section of Fast Company: Dec 2008/Jan 2009 edition)
Friday, January 30, 2009
"All Dressed Up Like Art Galleries"
(Article taken from The New York Times on January 28, 2009)
“Tradition dictated that art be displayed in a clean space on a white wall, with nothing around it,” said Linda Warren, a dealer in Chicago. To stray outside the confines of the white cube was, she said, to risk a “perception that the artist is selling out.” However, as the economy continues to take a nosedive, such tradition is going to the wayside. Many galleries have found themselves shutting their doors as they face mounting overhead and declining sales. With this, many galleries are being forced to close so exhibitions are becoming more popular in restaurants, hotels, and even condo lobbies. Yet, even more art is making its way into the world of fashion. As fashion boutique owners are finding themselves unable to continue fully filling their retail space with high-end designer labels, they are now filling the space with local artists works. For example, Confederacy, a hot retail spot in boho East Hollywood that sells such fashion labels as Marc Jacobs and Zac Posen, is now also exhibiting and selling etchings by blue-chip artists, Francis Bacon and Francisco Clemente. As stated by one boutique owner, "In this economy, you have to be inventive". Such inventive strategies are a must to continue peaking the interests of the consumer and as experts continue to be pessimistic about the economy's future, the "boutique-as-gallery phenomenon" is expected to only become even more commonplace.
As an apparel retailing major it is important to know such strategies that are being used within retail stores to keep them afloat during a time of such economic crises. Having always had an interest in possibly owning my own boutique one day, this is of particular interest to me to see how small business owners of boutiques are managing to cut costs in order to ride out and even attempt to actually survive the economic slump. It is very interesting to me how boutique owners can use the work of artists to fill up spaces that they can no longer afford to fill with their own inventory; while at the same time the artist(s) is able to once again make some money after finding their works having lost their "homes" (galleries) and former source of income.
“Tradition dictated that art be displayed in a clean space on a white wall, with nothing around it,” said Linda Warren, a dealer in Chicago. To stray outside the confines of the white cube was, she said, to risk a “perception that the artist is selling out.” However, as the economy continues to take a nosedive, such tradition is going to the wayside. Many galleries have found themselves shutting their doors as they face mounting overhead and declining sales. With this, many galleries are being forced to close so exhibitions are becoming more popular in restaurants, hotels, and even condo lobbies. Yet, even more art is making its way into the world of fashion. As fashion boutique owners are finding themselves unable to continue fully filling their retail space with high-end designer labels, they are now filling the space with local artists works. For example, Confederacy, a hot retail spot in boho East Hollywood that sells such fashion labels as Marc Jacobs and Zac Posen, is now also exhibiting and selling etchings by blue-chip artists, Francis Bacon and Francisco Clemente. As stated by one boutique owner, "In this economy, you have to be inventive". Such inventive strategies are a must to continue peaking the interests of the consumer and as experts continue to be pessimistic about the economy's future, the "boutique-as-gallery phenomenon" is expected to only become even more commonplace.
As an apparel retailing major it is important to know such strategies that are being used within retail stores to keep them afloat during a time of such economic crises. Having always had an interest in possibly owning my own boutique one day, this is of particular interest to me to see how small business owners of boutiques are managing to cut costs in order to ride out and even attempt to actually survive the economic slump. It is very interesting to me how boutique owners can use the work of artists to fill up spaces that they can no longer afford to fill with their own inventory; while at the same time the artist(s) is able to once again make some money after finding their works having lost their "homes" (galleries) and former source of income.
Subscribe to:
Posts (Atom)