2 minute read
Fashion Isn’t Our Business
Does it make sense to pre-order less? Franco Savastano believes that one should simply order more of the right products. In our interview, the managing director of Jelmoli Zurich explains what he means by this and how his tradition-steeped business is adapting to current market dynamics. Text: Nicoletta Schaper. Photo: Jelmoli
The retail industry announced plans to reduce its pre-order volume for the spring/summer season 2017 significantly. Did Jelmoli follow suit?
We ordered almost ten percent less, which is not exactly a huge reduction. Naturally, we could have also cut pre-orders by 30 percent, but that wouldn’t have solved any problems. Simply ordering less for the sake of it bears the risk of not ordering the right products. This could lead to an inadequate store appearance.
What exactly does that mean?
Generally speaking, the industry doesn’t maintain large stocks. In addition, many suppliers don’t order materials until the orders have been received. They’ll only start the manufacturing process after that. This means that retailers need to make their minds up six to nine months in advance. Thus, the retailers still bear most of the risk. However, those who pre-order less risk not having enough innovations in their respective stores - or not the right ones.
What is your approach?
We strive to establish partnerships with excellent brands. In practice, this means that we offer a brand an appropriate forum at Jelmoli with a healthy pre-order volume. This allows for partnerships that present diverse opportunities such as joint events, training, and goods exchanges. Instead of ordering a little bit here and a little bit there, we retailers need to commit to brands more. That improves the flow of goods.
So you suggest fewer brands, but don’t recommend order ing less?
The big issue here is not the goods. When we speak of fashion today, we think about Gucci and Prada. The latter are, in turn, copied perfectly by vertically integrated players such as Zara. This means that today’s fashion is made by Gucci or Zara. Everything in between those two has nothing to do with fashion anymore, but with styles. At Jelmoli, we work a lot with styles. We focus on icons such as the parka by Woolrich or Canada Goose. We work with brands such as Diane von Furstenberg, which embodies “the dress”. We offer Incotex trousers and knitwear by FTC. When we speak about fashion in the sense of fast-moving products, then that quite simply isn’t our business anymore. We have to accept that. That’s why brands that lack a strong identity are now struggling.
An increasing number of retailers also lack identity.
Therein lies the crux of the matter. One must stand for something in this day and age. Imagine walking into to your favourite restaurant and being told by the waiter that you can now also order fondue and sushi. How credible does that sound to you?
What is more important: collections or partnerships?
I would say both. The greatest collection is completely useless without a good distribution concept - and vice versa. We have very good partners with whom we sit down for in-depth talks. We exchange when necessary and we discuss what is put up for sale online. This is a highly concentrated and painstaking work process. Instead of reducing pre-order volumes, we should work together more closely and learn from each other.
“One must stand for something in this day and age”, says Franco Savastano, CEO at Jelmoli Zurich.
