“I’m Dying to Make Your T-shirt For You”

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What’s Wrong With That Statement?

Am I wrong to be disgusted over the blatant irresponsibility of some of the largest retailers and apparel brands in the world, as well as the governments and factory owners in the countries sought for the lowest possible manufacturing costs? Not to mention their collective and total disregard of the horrific working conditions; “slave labor” compensation; indeed the very lives of those making the world’s precious apparel? I will answer for you. Not only am I right, we should all be disgusted.

But let me be clear. I am singling out those brands and retailers who have far too long “kicked the can down the road,” avoiding direct responsibility for dealing with a “slave-like” process, albeit a very complicated one. Why am I singling them out, and detaching them from the fraudulent and corrupt governments and businesses they must deal with? Because at the end of the day, it is their supply chain. They control it. They own it. And, they are the only entity in the whole rotten process that has the clout to correct it.

Some are doing it right, and you know who you are. Many have not done anything about it, or at best deferred direct responsibility, and you know who you are.

So, for those of you who have “passed the buck,” “turned a blind eye,” and generally stuffed it down on your priority list, I am “in your face” about your supply chain. And yes, it is your supply chain!

At the beginning of your supply chain there are people literally dying to make your stuff for you, for as little compensation as their greedy factory bosses can get away with. Why? Just so they can subsist at some groveling level, so that you, at the other end of your supply chain, can make a fortune and continue to subsist in “opulence” (certainly a lifestyle beyond what that groveling worker can even imagine). And let’s not forget how attached at the hip you are to your compulsively addicted, and excessively consumptive consumer, who just wants more, more, and more for me, me, me — and oh yes, cheaper, cheaper, and cheaper.

And I don’t have to tell you that in order to continue to give more and cheaper to that consumer, while still maintaining your wonderful lifestyle — and, oh yes, giving Wall Street what it demands — somebody has to take the fall and give more for less somewhere in your supply chain. And where might that be? Just think about the now 1100 dead, plus the injured, disabled, and their extended families now living in horror in Bangladesh. And then think about what the greedy, fraudulent, corrupt, criminal bosses and politicians do to do to keep up their lifestyles by promising to give you “more for less,” regardless of what it takes to make that happen.

Disgusting? It’s beyond disgusting. And, I declare it is your supply chain even though you may share those poor workers with other major brands and retailers.

And while I’m at it, I’m also sick of hearing about how we lift up these third-world economies by importing billions of dollars of stuff, which in turn provides jobs for their poverty-level populace, thus creating a virtuous cycle of growth. Growth for whom? Growth for the bosses and politicians I described above, riding on “the backs” of cheap labor. Indeed, in harsh reality, it’s a vicious cycle of depression and death for those of least value to your supply chain – the workers.

It’s Your Supply Chain – Only You Can Do Something About It

So, I really have no interest in reading or hearing about consortiums, NGOs, and big gatherings of “Mr. Bigs” to figure out what to do about this horrific situation. We know where “designs by committee” end up; much less, committees that are made up, and largely led by, the very same people who have caused this disastrous situation in the first place — and whose interests benefit from keeping this as status quo.

At the end of the day, it is your supply chain, period. So, do something about it on your own. Get “feet on the ground” where this horror is playing out, and do the right thing by forcing those at the beginning of your supply chain to do the right thing. And then keep your people on the ground to enforce it.

And if the bosses don’t adhere to your demands, just plain fire them, as you would any other employee that doesn’t work by the rules. YOU are the money train for the entire supply chain. Only YOU can make the right thing happen. If costs go up and you lose a few bucks on the bottom line, at least you may be saving a life at the very beginning of your supply chain.

So, do the right thing! Or, go live with yourself in a dark closet somewhere filled with clothes made by “slave labor.”

Stagnant Paychecks Slow Consumer Spending

iStock_000007732207XSmallLower Prices on Food and Energy Buoy Fashion Products

You know those colorful Vikings in the Capital One credit card commercials who ask “What’s in your wallet?” Well, maybe they’re asking the wrong question.

Forget QE3, the wealth effect from rising stock prices, and fears of sequestration. The key factor in determining consumer spending, that all-important measure that comprises a whopping 70% of GDP growth, is paycheck size. It’s about how much is in consumers’ wallets. And with paychecks essentially stagnant, it could come as no surprise that economic growth is pathetic, too. [Read more...]

Rules of Engagement

Cotton’s 24-Hour Runway Show and Push-Pull 2.0

Click to See Chart Full-Sized

Click to See Chart Full-Sized

The retail universe has long-since expanded beyond the confines of physical floor space and time. Online retail outlets have made shopping a 24-hour option for brands with or without brick-and-mortar complements. Brand marketing, too, is now a brave new digital world in which presence and consumer engagement are essential cogs in the machine. To succeed, there must be a synchronicity of disparate channels that encompass traditional advertising, digital advertising, social media and most importantly, the often-unpredictable consumer.

Hyper-dimensional marketing, or Push-Pull 2.0, plucks multiple messaging strings in the hopes of striking a chord with consumers. In traditional push-and-pull strategy, push referred to offering incentives to the supply chain, and consumer marketing was the pull. Today, Facebook, Twitter and the like, have shifted the strategic emphasis squarely on the consumer; push is now defined as brand outreach to the consumer, and pull is their outreach to the brand. The objective is to enthusiastically engage the co

nsumer in the brand experience; to have them participate, promote, and eventually purchase. [Read more...]

Stores Blame Cold Weather, Early Easter for Season’s Slow Start

March2013RetSalesRetailing is a lot like professional sports. Both are highly competitive, both require a combination of talent and luck, and both involve big money.

And sometimes, there’s so much drama taking place off the playing field that it’s hard to remember there’s a real game taking place on it.

No matter how interesting we find all the “what if” questions surrounding JCPenney, or the tussle between Martha and Macy’s, or the Lululemon yoga pant recall, it’s what’s going on at the cash registers in the stores – be they brick-and-mortar or online – that determines the success of the industry and, in turn, the U.S. economy. Consumer spending – people shelling out money for goods and services – accounts for 70% of economic growth, and spending at retail just isn’t growing very quickly these days, for a variety of reasons. [Read more...]

The Perfect Fit at Bloomingdale’s

meality_bloomingdales_350We all know about the problem of lousy fitting apparel, but, the percentage of women who can’t find clothes that fit is awesome: try 62%, and online, it’s the biggest barrier for trying new brands. Worse for retailers, $45 billion of it is returned annually from both store and online purchases. Those are staggeringly bad numbers. And we are not just having a “hissy-fit” over bad-fitting apparel. This is reality and has been for as long as I’ve been in the business, which is now way too long. [Read more...]

Hogwash

iStock_000000315739_ExtraSmallAnd if You Believe It, I “Have a Bridge to Sell You.”

Hogwash is a great word, as I was reminded by my colleague, Judy Russell, CEO of consultancy Markethink. First used in the 15th Century, it referred to swill, slop, nonsense and balderdash. And it’s particularly appropriate when describing the findings of a recent study conducted by none other than the Boston Consulting Group, as well an earlier survey conducted by NPD in the fall of last year.

Up front and to be clear, I am not attaching the “hogwash” description to the methodology, and how the research was conducted by these two revered institutions; and not even the accuracy of the findings. I am describing as “hogwash” what the findings indicate would be consumer behavior in making a purchasing decision based on patriotism and a “made in America” label over price. [Read more...]

MK is no LV: It’s Not Coach Either

Is this any way to manage a Jet Set brand? Maybe, if you’re looking for a quick exit.

Listening to Michael Kors CFO Joe Parsons speak at ICR on January 16, 2013 on the Kors Jet Set aesthetic—spanning wings, wheels and water—I was reminded of the brand Louis Vuitton, also rooted in luxury travel.

iStock_000019271426MediumI make the comparison to Louis Vuitton for several reasons, beginning with its origins as a provider of luggage in the 1850s. In October 2010, I visited Paris (not just because I love to travel… and I especially love Paris) to see the installation of a Coach shop-in-shop at the Printemps flagship on Boulevard Haussmann, and do a store tour of Ralph Lauren’s new Left Bank flagship on Boulevard Saint-Germain. While I was there, I visited the Musée Carnavalet (the museum of the history of Paris). I never quite understood the fascination and demand for Louis Vuitton until I walked through the museum’s exhibit, Voyage en Capitale, Louis Vuitton & Paris.

On exhibit were the tailor-made trunks for nobility, celebrity and the wealthy. The exhibit told the brand story rooted in travel, a phenomenon that excites the imagination with the romance of new places and people, and different cultures and experiences. What holds more allure than travel? At the show, I discovered the basis of the brand’s aspirational DNA, which combines best-of-class quality and aesthetic with fashion’s excitement and superior execution at every touch point.

Is Michael Kors brand association with Jet Set travel designed to be the LV of the 21st Century? [Read more...]

Sleight of Hand

The Touch, the Feel — but Not the Performance — of Cotton

The recent ruling by the Federal Trade Commission (FTC) to fine four retailers, including Amazon.com and Macy’s, for mislabeling textiles made from bamboo rayon as simply “bamboo,” underscores the seriousness with which the government is enforcing truth and clarity in labeling. Some onus, however, is also on consumers, some of whom are largely unaware of recent fiber substitutions in traditionally cotton-dominant apparel—a shift that can impact the care and thus, perceived value, of their purchases.

Click to Enlarge

Click to Enlarge

The ubiquity of cotton in apparel and home textiles has made it the fiber to beat, or at least the one to imitate. Manufacturers of synthetic fibers and some wood pulp rayons have become adept at duplicating the tactile softness long associated with cotton. To consumers, cotton is a known quantity, especially where the feel, or hand, and laundering are concerned. Many consumers have discovered, to their dismay, a sleight of hand in the form of fiber substitutions in traditionally cotton-rich apparel. [Read more...]

ebay…From Disruptee to Disruptor

The Robin Report - ebayIt may be a little premature to warn Amazon that there are some loudly accelerating footsteps just behind them.

But, in today’s digital, wide-open world of warp-speed innovation, disruption and fierce competitive races to preemptively establish dominant positions, even front-runner Amazon has to be on ready alert. And the disruptive noise is coming from a recent victim of disruption itself that has since been revitalized: eBay, who is emerging as a “disruptor” in its own right.

I choose eBay, because I beIieve its relatively new CEO, John Donahoe (who took the helm in 2007), has a similar view of his business model as does Jeff Bezos for Amazon. Neither is limited to the confines of traditionally defined “retailing” (or even more so for eBay as simply an auction house). But rather each of them professes to an unlimited scope of being a “marketplace” that provides a “real estate” and distribution platform for any or all sellers and buyers around the world, providing all support services necessary to pursue and complete transactions, including the delivery of the value to the end consumer.

Of course, at roughly $12 billion in annual revenues, eBay has to be considered a distant challenger to Amazon’s nearly $50 billion. But, the real world corollary between distance and time is not in the lexicon of the cyber-world. That’s why Jeff Bezos’ Amazon mantra from “day one” has been, “get big fast” (read: preempt all competitors to the number-one position). Well, maybe he should tweak his mantra to read: “get bigger faster.” [Read more...]

He’s Got It: Menswear in the Information Age

The Robin ReportIn my last article we gave you three shops that were bellwethers of an emerging trend: a bottom-up trickle effect that has innovative brands skewing small. Here are three more bellwether retail stores that are becoming the go-to brands for modern young men, and are further redefining and reprogramming their customers’ experiences, online and off. What’s interesting about these three is that the founders are innovators who play to the online and offline strengths of their aging Millennial consumers, act as a disruptive force for traditional retailers, and capitalize on their customer-centric behaviors that are defining this generation.

Many innovative next-gen retailers are fully informed, and framed by the digital age and gifted in using all its disruptive tools. One such business that is uniquely online customer-focused is menswear retailer Indochino; a custom tailoring service based in Vancouver and Shanghai. Catering to the individual, Indochino provides each global customer with a 10-minute online measuring process and then delivers a custom tailored suit “at your door anywhere in the world” in four weeks. The suits (including tuxedos) retail from $399-$699 each, making custom tailoring a reality for the next generation that thrives on Mad Men over the Mod movement. Co-owners (and Millennials) are Heikal Gani, and Kyle Vucko. Heikal was inspired to create Indochino after diligently researching and then overspending on his first suit that was ultimately a disappointment, and needed extensive (expensive) tailoring after the fact. Gani’s initial disappointment in buying his first suit mirrors the paradox of an entire generation that has come of age after an adolescence of unprecedented customization, yet find themselves without choice in bespoke, affordable tailored menswear. This generation as preteens customized their skateboards, Nike sneakers—even developed their own brands through social network profiles. Why wouldn’t they also want a fully customizable experience in investing in their first suit—all done online? [Read more...]

Are Apparel Retailers Shooting Themselves in the Footprint?

The Shift To E-Commerce May Be Too Much, Too Soon

On a recent afternoon I spent 20 minutes doing errands that a year or two ago would have taken me about eight hours to do.

Instead of jumping into my SUV and taking multiple trips to various big box and discount stores in my town, I strolled into my home office, powered up my trusty PC, and “went to town” in a different way. With a few clicks of a mouse I bought two or three carloads’ worth of stuff ranging from garden tools and patio furniture to office supplies and groceries.

Most of my purchases were made on pure-play e-commerce sites. Comparison shopping helped me get very good prices and free delivery. One category of merchandise failed to figure into my flurry of e-consumerism, however: I did not buy a single stitch of clothing. I am one of those people who prefer to shop for clothes in brick-and-mortar stores. I need to see, feel and try on clothes before I buy them to make sure they fit, look good and meet my quality standards. I do not trust computer monitors to accurately display important details like fabric, color, drape or weight.

It turns out I am not alone in this. According to e-commerce intelligence firm eMarketing, total U.S. e-commerce sales rose to $200 billion last year, or 7% of the total retail business. It is estimated that the portion of total apparel sales purchased online is much smaller—by some estimates only 5%. Making matters worse, returns of online apparel sales are as high as 40% for some retailers.

Online apparel sales, though growing, remain a relatively small part of the business because consumers need to touch, see and try on. Sucharita Mulpuru, analyst with technology powerhouse Forrester Research, feels that “the in-store experience remains a critical part of the buying process for discretionary items like apparel.” [Read more...]

Well-Wrapped at Retail: Savvy Consumers Meet Smart Retailing This Holiday

Consumers may be wary this holiday season, but there are bright spots ahead. According to the National Retail Federation, overall holiday spending is projected to increase 4.1% this year, from $563 billion in 2011 to $586 billion in 2012. Technological advances have made it easy for consumers to shop from anywhere, at any time, and this year they are taking note; the NRF also projects that online holiday sales will grow 12% from 2011 to 2012, reaching $92 to $96 billion.

On average, holiday shoppers plan to spend approximately $568 on gifts this season, up 14% from $497 in 2011, according to the Cotton Incorporated Lifestyle Monitor™ Survey.

Cotton Chart I

Click on Chart to see Full-Sized

“What consumers give year to year doesn’t necessarily change much – but the way they’re making those purchases has changed tremendously over the last decade,” says Kim Kitchings, Vice President, Corporate Strategy and Program Metrics, Cotton Incorporated. “The rise of e-commerce and its ease of use, and now the increase in smartphone usage as a means to make purchases, have enabled consumers to shop wherever, whenever.” This is certainly a boon to the more than half (52%) of consumers who say they find holiday gift shopping to be stressful, according to Monitor data.

That stress may be due in part to procrastination; only about a third of consumers (32%) start holiday gift shopping in November, while an equal percentage (18%) start shopping in October and December. Just 14% of consumers say they buy holiday gifts throughout the year, Monitor data reveal.

Savvy shoppers plan to rely on a variety of mechanisms to ensure they get the best price; from doing more comparison shopping (45%), looking for deals on days like Black Friday (45%), to shopping around to find the best deals (43%), according to Monitor data. [Read more...]