Game-Changing? No. Focusing

GAMECHANGING? NO. FOCUSING!

Does fashion have to become even faster? Or does it have to become slower? The right timing in terms of collections is becoming increasingly important, not only at the point of sale. Those who still wonder whether we need a systemic change are obviously not aware that we’re already in the middle of it. Text: Nicoletta Schaper. Illustration: Claudia Meitert@Caroline Seidler

There’s a lot of movement, at all levels. Fashion has become ridiculously fast. Luxury brands such as Dior and Saint Laurent not only launch two haute couture and two prêt-à-porter collections per year, but also offer pre-collections, cruise-collections, and capsule editions. They are all featured in huge catwalk shows and broadcasted live to an audience of millions via the Internet. The gigantic fashion machine needs to be kept running. After all, there’s a lot of money at stake. This creates an awful amount of pressure and seems to be becoming a task that is virtually impossible to achieve. There is simply too much time between promoting a new collection and it actually hitting the shelves, especially as it gives the vertically integrated copyists sufficient time to supply stores with their lookalike products - at the exact time the customers want them too. The whole revenue-driven system has caught up with itself. February’s advance by Christopher Bailey, the chief executive of Burberry, to make the collections available online and in stores directly af

ter the fashion shows proves that the entire system doesn’t work anymore. Brands like Tom Ford, Proenza Schouler, and Tommy Hilfiger soon drew the same conclusion. It also highlights an issue that is not merely valid for the high fashion industry: the fact that the rhythm has to change. It needs to stop ignoring the market and focus on the needs of consumers.

Too Much of Everything “There clearly are too many different rhythms”, says Karl Reyer of Reyer Sports & Fashion in Hallein. “To me, it seems like the industry is running away from reality. It’s trying to launch even more collections to somehow generate the desired sales. This means that the quality often suffers, mainly because there isn’t sufficient time for creativity and product development. Retailers swamp themselves with goods that they need to sell at a discount way too early, because the next wave of products is already on its way.” “As a retailer,

Hans Weber, managing director of City Jeans Berlin: “We

definitely need a change of rhythm. The success story of Anine Bing proves that. She offers new looks on a monthly basis and they are delivered quickly per order: summer dresses in summer, winter sweaters in winter.”

it’s almost impossible to keep track of all the pre-collections, main collections, and cruise-collections”, Abseits Germany’s Winni Klenk criticises. “The industry actually wants retailers to spend more on the pre-collection, because the main collection is too difficult. In the case of Dsquared2, for example, we don’t order the main collection from the show, because the items are too expensive anyway.” Abseits Germany stocks brands like MSGM, N°21, and Lala Berlin exclusively in Stuttgart, which means Winni Klenk has to order in sufficient volumes. “I have no problem doing that as long as the sales figures support it. However, I never overrun my budgets.” His store stands for fashion, which means that many deliveries arrive early. “We can no longer survive on collections that follow the classic rhythm. Paul & Joe’s spring/summer 2017 collection sold brilliantly from November onwards. Our fashion-oriented customers want

Karl Reyer, managing director of Reyer Looks Hallein: “The

weather is a strong argument and one certainly can’t rely on it being cold in December. And if the temperature rises to 40 degrees in August, the goods don’t move at all.”

that”, Winni Klenk explains. “In contrast, swimwear in January and knitwear in July doesn’t work at all.” Udo Toepfer’s agency represents niche collections with a classic pre-order rhythm. “The fact that all swimming trunks and bikinis are sold out in May and June is just as grotesque as, for example, offering fur and lambskin items in July”, Udo Toepfer argues. “The timing is completely off these days. Many retailers share my wish for a more need-oriented delivery of goods. I believe that consumers are increasingly interested in consuming when they actually have a need to do so. The market is not only driven by the industry and delivery times, but also by the competitors. Retailers often tell me that they need to have goods early too if their local competitors get deliveries early.” The uncertainty in the retail industry is palpable. “There are too many different opinions and discussions. There is no coherent approach”, Udo Toepfer says. “The global nature of the business and e-commerce complicates the situation even more. The fact that nobody seems to be able to agree means we are not giving the industry a clear and precise enough signal to change the rhythms.” Anita Tillmann argues that the same principles don’t apply to everyone. “Fundamentally speaking, we don’t need a systemic change, because we already are in the middle of it”, the managing director of Premium Exhibitions says. “Structure is not an abstract thing that can be changed with the press of a button, the same as individual players can’t be game-changers. All market participants determine the structure, in which there are a lot of different rhythms that exist alongside each other. The high fashion industry is subject to different rules than sportswear, for instance. Therefore, everyone needs to find out which model with which rhythm suits them best. That’s the model they need to focus on.”

Smart and To The Point Focusing is what’s happening right now in many places. The sportswear brand Woolrich is no exception. “We need to be closer to the consumers and supply retailers with the right goods at the right time. We are working very hard on that”, says Nicola Ghelfi, the Woolrich sales director for Europe. “We no longer sell two collections per year with a lead of six months. We now launch smaller collections throughout the season in order to be closer to the needs of consumers and reduce the risks for retailers.” Woolrich’s spring/summer 2017 pre-collection will be delivered in November and December in the German-speaking countries, while the main collection is scheduled for January to March. The autumn/winter pre-collection will be delivered in May and June. That season’s main collection will be available from July onwards - in three drops. This means that thick down

Marco Michelagnoli, head of sales at Woolgroup and Daniele Fiesole: “Due to the pricing

policies of large department stores, whose private label business allows them to reduce prices early, the regular sale period is becoming shorter. That’s why smaller retailers should make themselves independent and incomparable with special products.”

Anita Tillmann, managing director of Premium Exhibitions:

“In terms of trade shows, we are in the lead. We are the system. We broke up and changed old structures. Our timing is absolutely perfect. Trade shows are the most important B2B meeting points. There is no way to reach an interested audience faster and more efficiently.”

jackets won’t be delivered in July, but later. Europe is currently Woolrich’s strongest market, but its business in the US and Canada is growing rapidly. “We also have offices in Japan and Korea”, Nicola Ghelfi adds. “This enables us to work more need-oriented. For example, we have learned that the US market wants the collections very early in the season, while southern Europe and Asia want them later. The local agents are close to their respective markets. In our eyes, that’s the key to success.” The trend-oriented Italian womenswear collection by Pinko utilises its domestically tried and tested order/delivery system for all markets. “With its own stores, in which it tests high-end fashion on a regular basis, Pinko has adjusted itself perfectly to the fashion needs of consumers”, says Michael Schulz, whose fashion agency Aco Modeagentur is the brand’s distributor in Germany and Austria. “The system also works on an international level, which is proven by the steady growth rates.” The delivery periods for the Black pre-collection run from November to March and May to September respectively. The trend-oriented Black main collection is delivered at the same time and is complemented by flash programmes. Instead of NOS goods, the brand offers product-related new proposals during the season, for instance the best selling trousers or blazer in the Pinko stores.

Mono-Products Instead of Total Looks In the past, there was a great demand for total look brands within the retail industry. “It was relatively easy for the retailers.

They could simply order many outfits from a few large brands, thereby avoiding mistakes regarding colours and combinations”, says Marco Michelagnoli, the head of sales at Woolgroup and Daniele Fiesoli. The result was too much similarity in all product ranges. “Today, the situation is completely different. The crisis has forced retailers

Winni Klenk, managing director of Abseits Germany: “What

we would like is more time between the order dates for womenswear and menswear. There is so little time between them now. As retailers, we hardly have time to come to our senses.”

to look for mono-products to set themselves apart from their competition with added value in terms of quality, price, and image.” This is yet another process of focusing. The Daniele Fiesoli knitwear collection follows the classic pre-order rhythm and also relies on a large NOS stock. “We want to afford retailers the opportunity to re-order products that are performing well”, says Marco Michelagnoli. “As a supplier, we guarantee a good selection of bestseller products to allow customers to swap products they are struggling to sell for top sellers. We want to make life as easy as possible for retailers. That is our service philosophy.” Woolrich relies on its Iconic Products, which transcend seasons. “Becoming faster is not the right strategy”, Nicola Ghelfi stresses. “Instead, we launch products that retain relevance beyond a season on a continual basis. The result is that consumers feel comfortable with Woolrich, because our collections don’t age after two months.” Woolrich tells retailers not to reduce prices. Ultimately, that’s in everyone’s favour. Out of principle, Winni Klenk doesn’t put intermediate collections on reduced sale, but carries them over into the next season. If he wouldn’t, the regular sale period would clearly be too short. A lot of jeans and shirts in the product range are also carry-overs. “However, it is quite common that a collection dwindles down to a few items in a certain size. In the future, I will sell those items separately in a sale to ensure that the sales floor remains clean.” The ultimate aim is to give fashion its value back - the value it lost in the eyes of many consumers due to the eternal reduced sales. This is what Gucci is trying to do when the brand announced that it will no longer have reduced sales and wants to allow its collections to merge. It’s a step in the right direction - a first step towards giving fashion back its magic and desirability.

Magic and Desirability Hans Weber, the owner of City Jeans Berlin, also tries to focus on uniqueness and compiling a product range that is incompa

Udo Toepfer, managing director of Modeagentur Toepfer: “The

industry needs to make its delivery times more need-oriented. The number of retailers no longer willing to accept the early delivery dates that are not aligned with the actual season is increasing.”

rable with competitors. “Whenever possible, I try to stock my brands exclusively in Berlin, or at least in western Berlin”, he explains. For him, that is an important aspect of desirability. “I had a gold chain by Anine Bing for 2,000 Euros in my store. The customer wanted some time to mull the purchase over. But when I told her that there is only one left, she wanted the gold chain at once. Things that are rare are exciting. If an item is available everywhere, it becomes inflationary and boring.” Anine Bing is quite a phenomenon. She just marched right through the distress our market experienced. As a blogger, she had a completely different approach and utilised her blog

Nicola Ghelfi, sales director for Europe at Woolrich: “Sales are

an integral part of the system. But no retailer can survive if he sells most of his order at a reduced price. We reduce very little in our own stores. It’s a policy our retail customers welcome and adopt for themselves.”

as a marketing platform. “Anine Bing puts her goods online and my order arrives in the store within a week”, Hans Weber says. “That’s to the point. In midsummer there are summer dresses and in winter there are sweaters. This proves that suppliers who deliver with a need-oriented approach and closer to the actual time of sale are more successful than others.” Hans Weber stocks Anine Bing exclusively in Berlin, but is not subject to the usual minimum order requirements. “I was allowed to start with a small budget between five and ten thousand Euros. I order for 80,000 Euros per season now. Why? Because I was allowed to order on a voluntary basis and because the products perform well in the store.” Even Hans Weber is focusing these days: “I solely focus on my clients. I’ve learned that over the last 25 years in the retail industry. I buy rationally. I no longer subject myself to the pressure of minimum order requirements of 25,000 Euros.”

Less is More Less is more is also Karl Reyer’s motto. In terms of high fashion, he no longer stocks the likes of Prada, Gucci, and Saint Laurent, because he has also realised that minimum order pressure can’t be the future approach. Today, he relies on brands such as Stella McCartney, Marni, Thomas Meier, and N°21, but often omits the more expensive

Michael Schulz, managing director of Aco Modeagentur:

“We think that not only the pre-order budget is changing, but the in-season budget too. While the pre-order budget is decreasing, one should increase the in-season budget. However, this only works when suppliers and retailers have a healthy relationship.”

high fashion-oriented main collections. “The many collection rhythms within the industry have made us forget something essential: the presentation concept in the store”, Karl Reyer says. “A multi-brand retailer has to renew the product presentation at the point of sale on a regular basis to ensure that the store remains exciting throughout the season. We cannot achieve that by simply stocking more products. That is our very demanding task. It’s all about our uniqueness, our product range, and what we stand for as a retailer. This is a responsibility that we can’t palm off onto the industry itself.” On the whole, the classic order/ delivery system works for Karl Reyer. “I don’t really need summer goods in November here in Hallein. I wouldn’t mind if they would be delivered later. Also, one should reconsider the weighting within the product range with NOS and carry-overs on a regular basis. Both the dark blue Canada Goose jacket and the most popular pair of jeans don’t need to be reduced. The industry should point that out more clearly. They should make clear that retailers lose money unnecessarily when they reduce the price of those items anyway.”

Systemic Change - Yes or No? In the future, it will be increasingly difficult to force new products into the market continuously. Only brands that team up with distributors and retailers to meet the needs of their customers will remain successful - in line with the principle of supply and demand. This is not a systemic change that happens from one day to the other, but an ongoing process. “This is an incredibly exciting time. It’s the perfect time to move things forward, break free from old structures, and shape the future anew”, Anita Tillmann says. “I’m glad that I can be a part of it.”