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Rules of Engagement

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

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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...]

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Posted April 24, 2013

Michael Kors – A Tale of Two Brands

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MK_Charm-01I’ve long been a Michael Kors fan, buying gorgeous double-faced wool dresses on sale at Bergdorf Goodman or in the Michael Kors store on Madison Avenue—only at 70% or more off, after Christmas and in the early summer.

These dresses, and some pants, skirts, jackets and wonderful cashmere sweaters, are lined up like so many soldiers in my closet ready for almost any outing. The styles remain basically the same year-in and year-out. Beautiful fabrics such as the double-faced wool, along with heavier wools and tweeds, matte jersey, raw silk, satin, and cotton twill for summer. All styled classically and elegantly. Feminine. Flattering. Simple sleeveless sheaths and separates with some accessories, handbags and shoes to round out the collection. Wearable, luxurious, classic American style.

But now, since Michael Kors has gone public, the positioning of a lower tiered line, Michael by Michael Kors, into a global lifestyle brand seems a distinctly different brand proposition and one that is, perhaps, at odds with the couture line. Of additional concern is the thought that the couture line has suffered as a result of the greater attention to, and investment in, the lifestyle brand.

The lifestyle brand is designed and merchandised for a different and younger customer who likely has never seen, heard of, or cared about the Michael Kors collection or its understated, classic American positioning and style. These customers know Michael Kors from his successful appearance on Project Runway; from Michael Kors advertising; and from Michael Kors licensed watches, handbags and small leather goods featuring a prominently displayed MK logo in shiny brassy, brass. The new Michael Kors brand is described by management as a “global luxury lifestyle brand with a multi-channel strategy, unique design and strong infrastructure…a compelling assortment of luxury merchandise and exceptional service in a Jet Set store environment.”

The term “Jet Set” appears often in company communications. As a child of the 60’s when ‘Jet Set’actually meant something—picture Princess Margaret flying off to Mustique, Bianca Jagger going anywhere. And before international travel became so much more like getting on a bus at the Port Authority than departing in style at the Eero Saarinen designed TWA terminal at Kennedy— “Jet Set” was defined as: “An international social set made up of wealthy people who travel from one fashionable place to another.” [Read more...]

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Posted February 12, 2013

Sleight of Hand

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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.

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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...]

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Posted February 11, 2013

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

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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

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“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...]

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Posted December 9, 2012

How Do You Give People What They Want?

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The Robin Report

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The Global Recession has left retailers with overstuffed inventories and rapidly declining margins, as cash-strapped consumers pulled back on all but the most necessary of purchases. In response, some retailers have revamped the consumer experience with a variety of strategies, from flashy celebrity endorsements and hefty back-to-school discounts, to new pricing strategies and a more holistic approach to in-store versus online.

But are any of these giving consumers what they really want?

Leveraging the power of celebrity appeal is a popular tactic that shows no signs of slowing. Ann Taylor recently announced that Kate Hudson will continue to be their spokesperson for the third year running, while H&M recently revealed its continuing partnership with David Beckham.

Despite the prevalence of star-powered promotion, 3% of consumers cite celebrities as being most likely to influence them to purchase new apparel, though 22% say clothing worn by celebrities is still influential in their own clothing choices, according to the Cotton Incorporated Lifestyle Monitor™ Survey. Most say (53%) friends are the most influential source in their purchasing decisions. [Read more...]

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Posted October 23, 2012

Retailers Revise Their Homework on Back-to-School

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Weather, Hesitation Delay Shopping Plans

Consumer Facts from Cotton Incorporated Lifestyle Monitor™

Despite an early push at retail, it seems the back-to-school shopping season is slow to gain steam, forcing many retailers to revamp their strategies to adapt. Teen Vogue’s Back-to-School Saturday initiative on August 11 may have wooed some consumers with its discounts and retailer participation, but many trend-conscious teens have been anxious to wait until school actually starts before they commit to making purchases. As a result, some retailers like JC Penney have extended their promotions, scheduling merchandise to arrive at the end of September in hopes that more fall-like weather will entice consumers to buy.

The Robin Report - Back to School

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According to the National Retail Federation’s 2012 Back-to-School spending survey, conducted by BIGinsight, the average personwith children in grades K-12 will spend $688.62 on their children, up slightly from $603.63 last year. Total spending is expected to reach $30.3 billion, a 14% increase – the highest since 2003.

Back-to-school is the second largest selling season, trailing only the December holidays, but apparel spending may easily remain flat compared to last year. Apparel tops the list of consumers who have a need to go back-to-school shopping: 9 out of 10 plan to buy clothes, followed by supplies (84%) and shoes (78%), according to the Cotton Incorporated Lifestyle Monitor™ survey. [Read more...]

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Posted September 9, 2012

What’s Up With Today’s Active Wear?

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Over the past year, the volatility in cotton fiber costs compelled some manufacturers and brands to, at least temporarily, experiment with using alternative fibers. Now that the price of cotton has settled in line with historic averages, there is renewed interest in cotton for performance athletic apparel. And as the line between fashion and active apparel continues to blur, cotton is coming into focus as the common thread.

The Robin Report - Cotton Inc

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Take Charged Cotton®, the performance enhanced cotton-rich line launched in 2011 from sports retailer Under Armour®. Famous for compression clothing and strictly synthetic blends, the company attracted significant attention when it replaced the tagline “Cotton is the Enemy” with “Mother Nature made it. We made it better.” It appears consumers have responded positively; Under Armour’s 2011 Annual Report speaks to the potential that the Charged Cotton® line holds for the company: “We see Charged Cotton® as a path to nearly quadrupling our addressable market in ‘active use’ apparel while blurring the lines of the much larger active wear market over time.” Others agree; Morgan Stanley analysts recently predicted that the line will account for 3 percent sales growth in 2012 and as much as 6 percent total sales growth for the company in 2013. [Read more...]

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Posted July 17, 2012

Why I Am Aglow With UNIQLO

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I first heard of Uniqlo several years ago when the company opened a pop-up store in Rockefeller Center. People were raving about the inexpensive cashmere sweaters. Always interested in a bargain, I checked it out. I was underwhelmed. Not enough sizes, a real mish-mash as I recall. It was dark and dreary. A dull basement space that was completely unexciting.

I returned to Uniqlo from a neutral point of view. However, this time around, the energy in the store, the sharp pricing the great overall merchandising and promotion, plus the fiber/product exclusivity, was so pro positive, that I have gone to the cheerleading side.

Over the last two years I received a couple of Uniqlo turtleneck ‘HEATTECH’ tops as gifts. These are made of a proprietary fabric that keeps you warm in winter by generating and retaining heat. The items can be worn as an under-layer or just alone. The fabric is kind of stretchy, “highly resilient and durable,” anti-static, odor resistant and designed to maintain its shape after repeated washings. And it does. [Read more...]

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Posted July 17, 2012

Dear Reader

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Robin Lewis“Value 101” from Professor Lewis: Value, like beauty, is in the eye of the beholder, defined differently and individually in every case. It is imperative to match the value created to the targeted buyer’s definition of value, both real and perceived, or the buyer will not purchase.

The conundrum that exists on both sides is… that the seller has a tendency to overestimate the value while the buyer underestimates. So, agreement between sellers and buyers as to fair value, and the total satisfaction of each, is seldom reached upon first engagement.

And by now, you’re falling asleep in my class. So how about this: the competitive path of least resistance – winning a sale by slashing price – has become “the road to hell, paved with good intentions.” This road is lined with so many sale signs, coupons, daily, weekly and monthly deals, outlet stores, booming off-price stores, and one new website after another with a better deal, that you can’t see the sun.

Blurred value, confused consumers hooked on finding the biggest discount, and retailers fighting hundreds of equal competitors to win the purchase, with “sales” accelerating downward as their weapon of choice, is a major characteristic of the madness in today’s marketplace. [Read more...]

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Posted June 5, 2012

Eastward and Upward: Chinese Consumers Spend with Optimism and Open Wallets

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A study in contrasts, China is showing signs that its rapid economic expansion may be  unsustainable, even as western companies continue to develop a presence there to woo a growing middle class.

Some on Wall Street are bearish on China, including Jim Chanos, who said in a recent CNBC “Squawk Box” interview, “If you looked at the performance of the banks over the last two years… they have been great shorts. They have been going down — they’re down 30 percent over the last two years.”

The country has targeted economic growth of 7.5% in 2012, representing a decrease compared to recent years, according to a recent article in IBTIMES. But China’s National Bureau of Statistics recently reported that the country’s GDP decelerated to 8.1% during the first three months of 2012, compared to the previous year, a figure that is lower than the 8.4% analysts had expected.

The Robin Report

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Yet these economic developments have not slowed expansion plans for many western companies. From Levi’s to Louis Vuitton, and from Proctor & Gamble to Starbucks, the last eighteen months has seen a veritable explosion in companies looking to gain a foothold in China, eager to attract its booming middle class.
Just as in the U.S., where “middle class” is an ambiguous term, “middle class” in China also continues to defy classification. Many analysts peg it as those making between $6,000 and $15,000 a year, which represents about 350 million households. Based on international dollars, that figure is about one-third of the average spending power (GDP per capita) in the U.S. [Read more...]

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Posted June 5, 2012

Diluting Cotton Content Compromises Quality and Brand Perception

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Consumer Facts from Cotton Incorporated Lifestyle Monitor™

The Robin Report

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A year ago the rising costs of materials, labor and fuel put pressure on apparel brands and manufacturers to maintain margins and pass minimal costs onto the consumer. In re-thinking sourcing strategies, many brands sought to cut corners by substituting cotton with synthetic fibers. Cotton, a mainstay of apparel, had historically high prices last year. One year later, the landscape is different and so is the consumer perception of quality; begging the question, is there a higher cost for diluting the touch and feel of cotton?

The run-up in cotton fiber prices a year ago was mistaken by some as the sole reason for increased apparel costs at retail. Indeed, the jump to $2.43 a pound on the A Index was unprecedented. However, other factors, such as: increased labor costs in textile manufacturing regions; increased fuel costs; the increased price of fibers competitive to cotton; and a 15-year cycle of deflationary apparel pricing in the U.S. all played a part in the slightly elevated prices consumers are seeing at retail. At the retail level, apparel prices increased year-over-year 4.2% in February, the most recent data available. Interestingly, although apparel prices have increased over the last few months, consumer demand for apparel has shown signs of resiliency. In January, when prices were higher than in February, the U.S. Department of Commerce reported consumer apparel spending was stable on a priceadjusted basis relative to a year prior. [Read more...]

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Posted May 11, 2012

How Green Is My Product Line? Measuring Sustainability Success

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What is more vital to the survival of an apparel manufacturer or retailer today: commitment to environmental consciousness or keeping production costs low? Five years ago, the answer would have been strongly in favor of being green. Today, amid global debt crises and the rising costs of raw goods, labor and fuel, the emphasis has for many shifted towards the economic from the environmental. Perhaps a better question is: Can an apparel manufacturer or retailer be green while remaining in the black? The answer is “yes,” when a thoughtful, long-term vision fuels the actions.

Prior to 2010, U.S. consumers had enjoyed 15 years of deflationary apparel pricing. Big box retailers attracted an increasingly diverse consumer base, fueled by low prices for apparel staples and the addition of specialty lines by popular, high-end designers and celebrities. Marketers in the highly competitive apparel category seized upon being “green” as a saleable point of brand differentiation. Low-priced and high street brands began trumpeting new and niche ‘sustainable’ fibers within their mix.

The challenges arose, however, when these sustainable fibers proved unsustainable in cost, processing or both. Bamboo, for example, was embraced as a stellar textile fiber because it grew quickly and did not require pesticides for protection. However, the process to convert the bamboo from a plant to a rayon fiber was discovered to be quite chemical intensive. [Read more...]

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Posted March 11, 2012