Discussions about the fashion industry thread

[LA Guy]

I saw a quote from one of the Matches employees that they just laid a ton of people off with no severance package. They were one of my favorite retailers back when they used to carry DBF and Margaret Howell.

I wonder if MrP’s 25% off everything sale is a harbinger of doom for them.

I would not discount that possibility.

Richemont Says Yoox Net-a-Porter Lost $137 Million In First Half As Sales Fell 10%

Richemont reported a six-month operating loss of €0.7 billion in its “discontinued operations” unit comprising Yoox Net-a-Porter (YNAP), citing continued losses and a €0.5 billion write-down.

www.businessoffashion.com

 

[cchen]

I saw a quote from one of the Matches employees that they just laid a ton of people off with no severance package. They were one of my favorite retailers back when they used to carry DBF and Margaret Howell.

I wonder if MrP’s 25% off everything sale is a harbinger of doom for them.

That's illegal in the UK so untrue

 

[zissou]

 

[jah786]

Outdoor Voices to Close All Stores This Week

The athleisure retailer will go online only, according to employees who were surprised by the announcement.

www.nytimes.com

not sure how many of the mid 2010s VC backed fashion companies are left but my guess is not many.

 

[smittycl]

Looking at Mr Porter’s website they are not stocking nearly as much new season stuff for their various makers. There should be much more Lardini and Zegna SS24 items than are currently shown.

 

[jaaz16]

I was just observing, somewhat ominously, that both END and SSENSE were doing a "mid season sale" of 20-40% already, in early March. That just seemed way earlier than normal. And unusual insofar as at least some of it is brand new seasonal stuff: I got an email (or IG ad, I think) that SSENSE was carrying Document for the first time, and I hopped on over to see that the brand new, just released season could be had for 20% off using the app.

I also noticed they've kept a lot of the past season's offerings up online, and they have cycled through 1 or 2 rounds of big discounts during end of season sales, followed by a return to full price, and then back to a discount during the next season sale. Which would suggest even the deep discounts isn't helping them unload stuff. Ooof.

 

[zissou]

Looking at Mr Porter’s website they are not stocking nearly as much new season stuff for their various makers. There should be much more Lardini and Zegna SS24 items than are currently shown.

And I suspect that some of the brands are forced to “stock” items for MrP until they are sold to the customer. I ordered a Valstar vest during the current sale and the tracking is originating in Milan, Italy.

 

[brokencycle]

-SSENSE as well. The big online multi-brand retailers are having the same issues as department stores.

Certainly sounds like it:

“Whilst Matches’ management team has tried to find a way to stabilise the business, it has become clear that too much change would be required to restructure it, and the continued funding requirements would be far in excess of amounts that the Group considers to be viable,” Frasers Group said in a statement. “In light of this, Frasers has been informed that the directors of Matches have taken the decision to put the Matches group into administration. Frasers remains committed to the luxury market and its brand partners.”

Bummer, I really enjoyed their selection.

I think the online retailers will have it even worse than B&M department stores. Why should I buy from any of them - what value add is there? And it is even easier for me to price compare and cross shop with other stores.

You can see it just by looking at the sales/deals thread. These "luxury" retailers are posting about 48 sales and mid-season sales and the like constantly.

 

[zippyh]

I was just observing, somewhat ominously, that both END and SSENSE were doing a "mid season sale" of 20-40% already, in early March. That just seemed way earlier than normal. And unusual insofar as at least some of it is brand new seasonal stuff: I got an email (or IG ad, I think) that SSENSE was carrying Document for the first time, and I hopped on over to see that the brand new, just released season could be had for 20% off using the app.

I also noticed they've kept a lot of the past season's offerings up online, and they have cycled through 1 or 2 rounds of big discounts during end of season sales, followed by a return to full price, and then back to a discount during the next season sale. Which would suggest even the deep discounts isn't helping them unload stuff. Ooof.

SSense has been doing this early/constant sale thing for a long time. Got to be at least 10 years. Same with keeping past season items and reverting them to full price. I thought they were going under a couple years ago when they were having fulfillment issues during holiday season. I swore off using them for a while but hey, 20% off new season stuff so I've been using them again and haven't experienced any fulfillment delays.

End has always been the same way with past season stuff hanging around for a long time.

Another weird one has been Cultizm. If you're not getting 20% or more off, just wait a week.

 

[cb200]

And I suspect that some of the brands are forced to “stock” items for MrP until they are sold to the customer. I ordered a Valstar vest during the current sale and the tracking is originating in Milan, Italy.

When I worked with a brand that did wholesale and online direct, there were a few accounts that would book products but list some styles, colors, and sizes that they would order from the brand if they could sell something they didn't have in their inventory. But that was back when folks didn't expect overnight delivery and the brand would ship from the warehouse to the online retailer's DC and then it would go out from there to the customer.

One online retailer almost always had discounts and loyalty points. Effectively they always ran a discount with loyalty points. That was tolerated due to the larger initial buy and that the in season orders did help draw down inventory but it was always a trade off as the margins were at wholesale and the brand was, in a way, losing an online sale based on price.

Relationships and terms can be harsh with bigger accounts as they have leverage and their bookings can make production viable. I expect there's some punishment being handed out to brands from the troubled online retailers. I seems like were in a new era. Again.

 

[zissou]

I remember back when a retailer would have to backorder something from a brand and then ship it to me. If it was something I really wanted, it was worth the wait.

I’m wondering if the end result is that the Amazon model just doesn’t work for luxury goods and business is steered back to small retailers like NMWA. I'm ok with not having access to everything I want on one website, and I'd much rather give my business to small companies that care about their employees and customers.

 

[K. Nights]

Loro Piana’s $9,000 Sweaters Rely on Unpaid Farmers in Peru

Luxurious vicuña garments have their origin in the Andes. The Indigenous people who collect the wool have almost nothing to show for it.

www.bloomberg.com

 

[LA Guy]

Loro Piana’s $9,000 Sweaters Rely on Unpaid Farmers in Peru

Luxurious vicuña garments have their origin in the Andes. The Indigenous people who collect the wool have almost nothing to show for it.

www.bloomberg.com

Primary producers are nearly always the people who benefit the least.-

 

[double00]

Loro Piana’s $9,000 Sweaters Rely on Unpaid Farmers in Peru

Luxurious vicuña garments have their origin in the Andes. The Indigenous people who collect the wool have almost nothing to show for it.

www.bloomberg.com

this article has come up a bunch today .

otoh the writer presents LP as sucking profits as a monopolistic corporate interloper .

on the other hand it's pretty clear that ' open season ' approach had previously led to a catastrophe for the species , and which was only reversed following gov't protection and which population growth has continued since the Peruvian gov't licensed taking to LP in the 90s .

but the story as written is not about the success of a market-based conservation program , instead the focus is accrual of value but then completely elides questions about the structure of equity within the village . per the article LP pays the villages .

 

[Iskander]

this article has come up a bunch today .

otoh the writer presents LP as sucking profits as a monopolistic corporate interloper .

on the other hand it's pretty clear that ' open season ' approach had previously led to a catastrophe for the species , and which was only reversed following gov't protection and which population growth has continued since the Peruvian gov't licensed taking to LP in the 90s .

but the story as written is not about the success of a market-based conservation program , instead the focus is accrual of value but then completely elides questions about the structure of equity within the village . per the article LP pays the villages .

Both things can be true. Perhaps it is a success in terms of conservation, but that doesn't mean LP should not be compensating the villages more. I doubt the workers would be comforted being told, "well yes you're paid next to nothing, but we saved the Alpacas!"

It would be interesting to see the total compensation details, as you mentioned.