Into the Niche

The trousers are by Levi’s and Carhartt, the jackets by Schott and Mackintosh, the suits by Brioni, the backpack by Eastpak, and the shoes by Manolo Blahnik and Dr. Martens. No, this is not an extravagantly stocked multi-label store, but the fashion show by the Parisian designer cult label Vetements that was staged at Galeries Lafayette in June. For head designer Demna Gvasalia one aspect was particularly pivotal. He chose exemplary specialists to represent each product group. Even the often overwhelming power of a luxury brand can be ineffective when pitched against true expertise. “The idea was to seek out the most typical product of every brand and then develop it in our context”, Gvasalia explains. Many were happy to participate in the experiment. What seems to be a working paradigm for a luxury brand is also echoed in the premium segment. Many retailers are fed up with brands with collections that lack profile, are interchangeable, and are - in many cases - bloated. In the case of such collections, it is difficult to determine what they stand What are you really good at? Many in the retail trade and the fashion industry asked themselves this question last season. Being everybody’s darling certainly isn’t the solution. There are different strategies that lead to success, but it seems as if having a good product means the battle is already half won. Text: Ina Köhler. Illustration: Claudia Meitert@Caroline Seidler. Photos: Interviewees

for and what collection pieces one should order. During the current season, the aspect of “too much” has been discussed many times. Too many similar collections, too much merchandise, too many channels, and too many order options… It seems like specialisation and focusing could be ways out of this predicament. “Retailers are no longer interested in being bossed around”, says Lucky de Luca’s Valentino Luca. “Many conversations revolve around the topic of minimum orders. Why should a retailer order more of a product every season if the product isn’t even good?” Also: “Who wants to walk around dressed from head-to-toe in the same brand. It simply isn’t up-to-date to have the same brand from sunglasses all the way down to the shoes.” So why shouldn’t brands and retailers do what they are really good at?

Content with One Product Group Many are already operating in this manner successfully and quite deliberately decide against broader collections. An example is the top specialist Better Rich: “We offer our customers cosy tops made of finest cotton or fine Italian yarns that are perfect for combining with other items”, says Carina Wyen, a marketing specialist at the label. “We have been doing this since 2009, which does not mean that everything remains the same. In terms of our collection, we focus consciously on the current zeitgeist and the fashion changes we can sense in the market.” In many cases, successful labels end up with a more extensive product range. Better Rich is different. “We are often asked about product extensions such as trousers or jackets. However, we strive to do what we do as best we can. We don’t do anything simply because it is in demand. This is exactly what our customers value, which provides security for all involved parties.” In this context, Better Rich is one example of many companies that stick to their trade. Parajumpers has specialised in jackets since its founding, which means that one certainly doesn’t need to tell them how that particular market segment works. “Our main focus has always been on the technological and functional aspects of our products”, says Ermanno Paulon, the CEO at Ape & Partners, the company behind Parajumpers. “The quality of materials and finishing are the elements that allow us to place our items in the top level of the market. Our products are made to last many, many years. Our focus is on longevity in both style and production.” This creates confidence, but wouldn’t a wider selection be the next logical step? “We always want to guarantee a high level of quality, so we focus on products that we are sure we can make very well”, Paulon argues. “This is our strategy and it has allowed us to grow every year.”

Specialised Items - No Assorted Goods It seems as if the industry has decided to return to old virtues. In this day and age, nothing is more fatal than trying to be “Everybody’s Darling” for all customers. Those who can do everything, are simply not really good at doing anything. For instance, when a food stand offers Chinese, Bavarian, and Turkish food, it most likely offers dishes that tend to taste the same. Nobody will like this taste - neither buyers, nor customers. “When there are too many dishes on a menu, then no dish can be really outstanding. We offer one or two dishes in the best quality possible”, Valentino de Luca states. He knows what he’s

“Time is money. Buyers are no longer willing to look at 400 samples before choosing three products.”

Matthias Schwarte, Agentur Schwarte

talking about after establishing Lucky de Luca and Barb’one, two highly successful specialities. “Right from the beginning, we decided to focus on a great product, high production standards, and excellent materials and finishing.” Many retailers and consumers appreciate this quality. Seeing that the shirts were so successful, it didn’t take long for Barb’one, a trouser label, to follow suit. “Our retailers supported us and trusted us to get it right. This allowed us to occupy a niche right from the start.” As a shirt label, Lucky de Luca merely offers four to five models for men and women in various qualities - a deliberate reduction strategy. The same applies to pre-orders. Once a product is sold out, there is no subsequent delivery. “We have chosen to tread a different path and would rather expand our business slowly and steadily. Every now and then, I am quite willing to accept an order consisting of a mere 30 items - that works. The industry needs to rethink”, de Luca argues.

Clear Profile = Happy Customers The realisation that large collections require too many material-related and human resources is spreading. If only a small part of a huge sample collection is ultimately selected and pro

“When customers leave the store happier than when they entered it, then we know we did everything right.”

Max Schoenberg, Fifty-6 Saarbrücken

duced, the cost for the brands is too high. This situation isn’t beneficial for the buyers either. Matthias Schwarte has observed this phenomenon in his Munich-based fashion agency: “A buyer needs to understand a collection within three minutes. Time is money. Buyers are no longer willing to look at 400 samples before choosing three products. The brand is often not as important as one would think. It is fairly easy to persuade buyers if the product is good and self-explanatory - as is the case with People of Shibuya. The customers are looking for clearly focused products that add a little excitement to their respective product ranges. Our raison d’être as an agency is to supply such products.” In the retail industry, those who offer special items are also more successful. Max and Romy Schoenberg manage six Fifty-6 stores in Saarbrücken; they stock shoes and clothing. Every store has an individual concept targeted at very different customer groups. This requires a “buying marathon” that the owners take upon themselves. They see it as an anticipated, voluntary tour of Europe’s showrooms: “During a buying period of eight weeks per season, we focus on ordering items that fulfil their promises in terms of fashion and quality. We have an enormous range of brands, but always with the goal of remaining highly fashionable and wearable”, Schoenberg explains. This requires hard work with great attention to detail for each item. This amount of effort simply couldn’t be justified for interchangeable products. Schoenberg believes that values such as service and uniqueness are paramount. “All 45 employees need the conviction to make our customers happy with the knowledge that they always have the right product within reach. When customers leave the store happier than when they entered it, then we know we did everything right.”

How to Choose the Right Speciality Panorama Europe has established itself as a specialised fashion agency with products by the likes of Schott NYC, Penfield, and Espadrij l’originale. Last year, it even opened its own store named Selekteur in Düsseldorf’s historical city centre. It doesn’t merely stock clothing, but also other high-value products by European manufacturers. The offering

“Who wants to walk around dressed from head-to-toe in the same brand. It simply isn’t up-to-date to have the same brand from sunglasses all the way down to the shoes.”

Valentino de Luca, Lucky de Luca ranges from penknives to soap. “As a retailer, one can focus on the customers better if one is a specialist in terms of a particular topic”, managing director Felix Staeudinger claims. “Seeing that one can, in principle, order everything online, a stationary store needs to make a statement and offer top products manufactured by specialists. The store has to embody something and have its own signature, so to speak. Generally speaking, this also applies to our Selekteur store in Düsseldorf. We showcase items by manufacturers who have developed into brands due to the quality of their respective products. For us, it is a great place to gather experience with products in direct contact with consumers. This is an enormous help for our wholesale business. As a retailer or an agency, one needs to think about how to differentiate. One needs to feel the character of a store.” How does one establish a special product in the retail industry? Staeudinger points out that - in the case of Schott NYC - his agency entered the retail

“We focus on products that we are sure we can make very well.”

Ermanno Paulon, Parajumpers

segment via the brand’s core product, namely the bomber jacket. “The brand is already very strong in France, which is why other products work there too.” The advantage is that, as a specialist, one can still sell items when they are no longer offered by other fashion-oriented suppliers. This applies equally to products such as Espadrij l’originale. “We don’t want to offer a ‘total look’, but a lifestyle concept. This can be, for instance, a group of products centred on the Côte d’Azur topic. This allows the customers to dive into a new world, thus forgetting their everyday lives for a few seconds.”

Control of Production Many excellent specialists are characterised by their control of production. “We have always focused on our core business of cashmere knitwear and SeaCell cashmere”, says Andreas Knezovic. FTC, his business, earned its reputation through its own production department, which is unique in the market. The company is fully integrated in terms of cashmere products, which means that it controls all production steps - including goats and farmers, spinning plants, and finishing facilities. “Our approach can be compared to a wine. If you want a good wine, the winery must take care of everything in-house - from the ground to the vines and, finally, the winepresses. That’s

“As a full-range supplier, we need to be at least just as good as specialised suppliers within the individual product groups.”

Thorsten Stiebing, Joop how you create a great product. We take responsibility for everything, even for the staff on the ground.” The own production facilities allow him to deliver swiftly and accurately, as well as to meet very individual customer requests. “If a partner needs a special product for consumers, then we can deliver. We’re always in dialogue with our partners in terms of speed, service, and quality. This is the recipe for long-term success. For example, we only recently supplied Joyce of Hong Kong for the first time.” The collection was reduced from 120 to 80 items a year ago, which allows the brand to operate more efficiently and saves costs. In his capacity as owner, Knezovic is more interested in a respectful and appreciative management of his resources than a massive increase in numbers. “Cashmere simply cannot be a mass product. We offer affordable luxury. We see great future potential in that.”

Comfortably Expanding the Niche Niche markets may be highly competitive, but they have many advantages too. One knows the product by heart and sees things that others may overlook.

“The plan is, most importantly, to learn what the consumers expect from us as a trouser specialist.”

Marco Lanowy, Alberto

“As a retailer, one can focus on the customers better if one is a specialist in terms of a particular topic.”

Felix Staeudinger, Panorama Europe/ Selekteur

“We will focus on the topic of trousers until we run out of fresh ideas”, Marco Lanowy, the managing director of Alberto, says in jest. The trouser specialist anticipated the long-term trend of slimmer fits very early. This is why they added a low percentage of spandex to the men’s jeans, which currently make up 65 percent of the product range. This makes the trousers feel more comfortable without making them look like “stretch trousers”. Over the years, the company has developed into the market leader for trousers in the golf segment. “The reason for this is that we look at the product and its application in everyday life very closely and pay attention to every detail.” The newest development is a pair of bike jeans with a slightly higher cut and reflectors. In October, Alberto will open a concept store in Mönchengladbach to establish direct contact with consumers in order to learn more about their needs. “The plan is to test products and, most importantly, to learn what the consumers expect from us as a trouser specialist.”

One-Stop Suppliers vs Specialists The question of focusing is most exciting when applied to full-range suppliers such as Joop, whose collection has visibly evolved in the current season. Thorsten Stiebing, the managing brand director at Joop, has a clear answer: “We invested more time in the product and

“We’re always in dialogue with our partners in terms of speed, service, and quality. This is the recipe for long-term success.”

Andreas Knezovic, FTC

paid more attention to detail, especially in the product groups involving coats, jackets, and suits. As a full-range supplier, we need to be at least just as good as specialised suppliers within the individual product groups.” This requires a more focused collection, not a larger one. “We looked at every item of all product groups a year ago”, Stiebing reveals. “We’d rather offer ten top jackets than 15 generic jackets. The art of omission is important, because it creates quality. As a brand, we strive to fulfil our brand promise and that’s why we focus on quality. If you are a brand, you can only be successful with a good product.” Stiebing believes that Joop has dealt well with this challenge. “We have received compliments for the new collection; it seems that our customers found it very easy to find suitable products.”