AUGUST 4, 2020
Boosting your sales through our sales eco-system
NEW YORK CITY – All retailers can increase their exposure by working with influencers and media platforms which promote their business for free and thereby increase sales. Fashioning Space is on a mission to help retailers digitalise their businesses as it has become the only way to survive. COVID-19 has changed our buying habits and has drastically increased online sales. Businesses which do not adapt and keep up with the trends will not be able to grow. We have thought of new ways to grow sales online and in store without needing any investment. Retailers which purchase our brands get promoted on Hypebeast, GQ, Vogue and Highsnobiety articles which write about our brands and retailers in North America.
Fashioning Space represents over 20 international brands with a wide range of styles. Each of our brands have a unique identity and bring something new to our portfolio. What American retail needs is new brands which will freshen up the market and create new demand. Implementing our strategy with our media partners and influencers will boost sales of every retailer which works with our brands.
JUNE 30, 2020
Transformation of the fashion retail
NEW YORK CITY – Fashion industry should be in general one of the most innovative industries. Every season or even every month, designers make new products by creating or at least following new market trends. Most of brands invest in market research and get valuable market feedbacks, but still they are not able to fully implement their findings and show full capacity of their innovative thinking. There is a larger gap between real market trends, supply chain and retail, which should offer what market really needs (or even wants). Typically, most of brands and then retailers are one or even two years late from the real market trends. They begin with the implementation when the market trend curve reaches the peak and often they lose real business opportunities. Something is wrong in the whole process and the business model and instead taking full opportunities, brands and retailers end up working with lower profits and too short period of regular sales.
There are multiple reasons, why most of retailers’ businesses are slowing down. Before talking about the reasons, there are some important market facts; 1. North American and European fashion retail market was growing at the average rate of 3-4% in past years and there are projections for the same growth rate in following years (with the exception of 2020 due to Covid-19, when the market will be down between 20 and 30%, but even this unprecedented crisis is bringing amazing opportunities to those retailers that understood an importance of the transformation of the business model and their growth rate will be even higher than in “good previous years”); 2. Main growth comes from e-commerce and the growth rate is between 20-40% and businesses with solid e-commerce solutions will not be down in 2020, and will take the business of those who were not ready for these new challenges; 3. Brands and retailers that make more investments in e-commerce grow at a higher rate of 40%; 4. Final end customers expect better services and different experience, which is more aligned to services they get from technological companies; 5. US population is growing and has a younger demographic then the most of other Western countries, which gives a positive outlook to US retailers and their businesses.
These facts should encourage US retailers in their bright future. Still, it doesn’t mean that all retailers will have a bright future. The bright future is reserved only for those retailers that have started with their transformation or for those that will start with a transformation now. US retail landscape in following years will look very different then today. Many existing retailers will be out of business very soon. Covid-19 will just accelerate the closure of those retailers that are not ready to face the needs for the transformation of their outdated businesses. New retailers will be born and about newborns, we will be writing in our next news edition.
Living in a digital era, the fashion retail business should be better than ever. Still, the most of retailers haven’t realized all amazing opportunities which are already accessible to most of them. Instead, they continue to run their businesses in a same manner they were doing in past decades. It is not only that they haven’t made their business digital, but also the way how they were doing their purchase decisions, running their inventory management and missing appropriate communication with the customers.
Going back to the beginning of our story and a late market trend entry for the most of brands and retailers lays in a fact that they didn’t transform their business model. Instead of moving faster to the market, they still want to wait and see what will happen and once the market trend curve reaches the peak, they respond. The problem is that the most of brands and retailers respond in a same way and in a same time and that creates their business predictable and perfect for discounted business, which then brings all know troubles. They react when is a less demand for the product, which they supposed to sell with a full price, but much before and faster.
Most of major US retailers always sell same brands with a predictable pricing scheme and they have too many store locations. Unfortunately, many independent stores follow the same path. The bright future is possible if retailers will be entering the market earlier by brining brands that understand market trends and they can secure better services and of course if retailers will be investing in better e-commerce and marketing that aligns with target customers. Fashioning Group has developed own digital wholesale platform in late 2015, which provides the entire procurement solution to brands and retailers that understand the needs of efficiency in buying process and an access to the information that will make their business faster and more profitable.
Covid-19 has elevated digital channels as a must-have for many retailers. Therefore, they should take this opportunity to leapfrog into the digital arena by making it the center of their operating model: moving their traffic and engagement-generation engine to digital, and leverage digital channels to drive store traffic and vice versa. Besides scaling up digital sales efforts, they should reconfigure their store footprint accordingly – for example, by reducing presence in “B” areas (markets with lower population density and lower profitability per square meter), devoting less store space to product categories with high online penetration), and making it easy for customers to perform any omnichannel operation, including complex ones (such as buying online from a store if the product isn’t in stock there, and then picking it up from another physical store in the next 12 hours). They should use data and analytics to tailor the assortment in each store and to streamline and optimize assortments overall. In our experience, fully integrated management of stock in stores and warehouses is core to any omnichannel operation. Making all stock (even stock shortly arriving to warehouses) visible to customers in any channel has proved to boost sales.
In addition, at the end of a digital transformation, we estimate, fashion companies will likely need up to 20% fewer people in the end-to-end creation process. These savings can be re-invested into new product assortment and quality of other services, which will bring further business growth. Retailers will need to travel much less as they will be able to place their orders online and they will be working with partners that can provide them a full eco-system that brings them higher efficiency and the best solutions for their omni-channel sales business model, which is then the ultimate result of their transformation.