Should The Clothing Brand Choose To Leave The Department Store?

According to the world clothing and shoe net, clothing brands have always been seeking sales growth through department stores.

But as more and more

Shops shut down, and electricity providers are booming.

The problem is also obvious: new sales revenue must be obtained through more diversified products and distribution channels, if not, there is a risk of bankruptcy.

Over the past ten years, the number of department stores in the United States has been decreasing.

According to a report released this spring, Sears, J.C.Penney and Messi stores need to close up to 800 stores to restore their business efficiency 10 years ago.

Meanwhile, the electricity giant

It is expected to achieve a historic milestone in 2017, beyond Messi's department to become the largest clothing retailer in the United States.

Future department stores still have their own place in the retail industry, but if the sales revenue of the brand still depends on department stores, the competition will be even more severe.

Online shopping is even faster than usual on holiday season.

Kantar's latest survey shows that more than half of shoppers plan to buy all holiday gifts on Amazon.

During the black Friday of last month, online store sales surged by 14%, although the discount was not small, but the volume of people in the store decreased by 3~4%.

Worse still, discount is the best way to attract customers in department stores, but frequent sale will not only reduce the reputation of department stores, but also damage the brand image.

So do most of the garment brands choose to leave department stores? Not all of them. Diversification is the key word for them.

They need to find new ways to break the traditional wholesale mode and get most of the sales revenue directly from consumers.

Some smart brands have found ways.

Physical stores still play a role

Although online retailing has taken a lot of business from department stores, some Internet brands have realized the value of single brand stores, such as the Internet mattress brand Casper and light luxury brand Everlane. They have their own online stores, and also have physical stores, which helps them strengthen customer relationship and increase sales volume under online and offline.

These companies recognize that Showroom (showroom) or limited retail businesses, such as guerrilla stores, can create an environment that allows customers to immerse themselves and have a deeper understanding of brands. These stores are not just about selling products, but also like a 3D advertisement, enabling customers to focus their attention on one brand.

Bonobos, the Internet menswear brand, has further developed this concept and set up a Guideshop. It seems to be the same as traditional clothing stores, but it does not actually sell products.

The main role is to provide a place where customers can try clothes, consult sales staff, order products, then deliver them to stores or customers can place orders online.

These innovators are also trying to minimize the cost of rents by elaborately arranged small spaces.

For example, the Australian skin care brand Aesop is famous for its small, fashionable stores and Gaoping efficiency.

At the same time, companies that are not ready for long rental entities are turning to trunkshow (private small fashion show) and niche sites such as retro market, not only peddle their products, but also produce word of mouth and enhance brand awareness.

The Internet is still springing up of various new distribution channels: the new shopping function of picture social application Instagram can help retailers improve their brand image and reach more targeted audiences.

Although e-mail may look old-fashioned, interactive e-mail providers like Rebel Mail can still be a unique marketing tool.

Authorized operation is crucial

When the clothing brand is faced with the consumer mode, it needs to choose partners more carefully and choose partners who are in favor of their financial status while improving brand recognition.

Authorized operation (Licensing) is very important. This way of operation can make up for the blank of wholesale channels.

Authorized operation provides a new way for garment brands to enter the new market easily, such as accessories and cosmetics, which can sell brand products at a much lower price than clothing, thus achieving high profits and obtaining new customers.

In this way, American fashion designer TomFord launched the boutique perfume and spectacle business, and then went to make-up.

Recently, many sources said that TomFord will develop new commodity categories for the same brand: Men's underwear and watch series.

Authorized operation is also a way for young brands (such as Karen Walker) to create brand image and expand customer base.

At the beginning of the brand building in 1989, there were only two T-shirts. Since then, Karen Walker has grown into a global brand through extensive licensing cooperation with jewelry, household products and footwear.

Its glasses sell more than 28 million dollars in the US market.

Wholesale channels are no longer the most reliable way to get the success of garment brands.

In order to reach new customers and sell more products, the choice of ready-made brands is very clear: either diversification or being left behind.

More interesting reports, please pay attention to the world clothing shoes and hats net.