Random fashion thoughts - Part II (A New Hope)



zissou said:

To me, it's pretty clear, too, that guys who complain about wanting an extra X% off or free shipping or whatever, are likely just consuming stuff, buying too much. Buying something because I truly want it should negate any care of that last nickel and dime needed to get it. I think massive sales are just a way to make someone feel better for buying something they don't actually need or want.

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Agreed. I'm pretty much done with Spring items already and it's only Feb.



zissou said:

To me, it's pretty clear, too, that guys who complain about wanting an extra X% off or free shipping or whatever, are likely just consuming stuff, buying too much. Buying something because I truly want it should negate any care of that last nickel and dime needed to get it. I think massive sales are just a way to make someone feel better for buying something they don't actually need or want.

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True but how does it impact stores if people are more disciplined about buying stuff they don't need or taking risks on sales (or full priced items due to free shipping/returns)? Wonder if more customer discipline would shrink the pie and result in stores and designers being more conservative/risk-averse on the front end with regard to what they offer.



ManofKent said:

I confess I've been guilty of buying the odd bit that was so heavily reduced I thought I'd give it a try (and generally found it doesn't get much wear). I try to be more self-controlled these days, although I still buy from the sales as well as full priced pieces.

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Sure, I do that, too, and it's fun to try new things for cheap. But, I have very few expectations for stuff like that. if it works out, great, if not, I return/sell/donate the thing.

winston86dit said:

Agreed. I'm pretty much done with Spring items already and it's only Feb.

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Man, I'm done with pretty much everything, I have too much clothes for my closet, and I don't really get a chance to wear a third of them. I'm hoping my wife doesn't realize I'm about to take over part of her half of the closet. Good thing she doesn't really care about clothes much.

johanm said:

True but how does it impact stores if people are more disciplined about buying stuff they don't need or taking risks on sales (or full priced items due to free shipping/returns)? Wonder if more customer discipline would shrink the pie and result in stores and designers being more conservative/risk-averse on the front end with regard to what they offer.

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I don't think stores really need to be concerned about that. I do think/hope that it's a natural progression from being on SF for at least a few years. People settle in on a particular style and appreciate each garment for what it is. Or, maybe I am old and less impulsive these days.

johanm said:

True but how does it impact stores if people are more disciplined about buying stuff they don't need or taking risks on sales (or full priced items due to free shipping/returns)? Wonder if more customer discipline would shrink the pie and result in stores and designers being more conservative/risk-averse on the front end with regard to what they offer.

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I would rather have $100 in revenue and $30 in margin/profit, than $200 in revenue and $20 in margin/profit (because less % of revenue at markdown). A smaller pie but more margin for the retailer means that it can stay in business and pay employees. A larger pie that means digging a financial hole, will lead to the retailer closing eventually (or to Daddy to stop funding the losses like those stores Fok eluded to).

So, if there's a few bucks difference in the price we see at a small business versus one of the giga-fashion machines like Yoox/Mr Porter or Amazon/East Dane, we should keep that in mind if we want to allow an alternative to those virtual malls to continue to exist

^ I realize this sounds a bit corny and self-serving btw...

gdl203 said:

^ I realize this sounds a bit corny and self-serving btw...

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Selfawareness ftw.

hi @gdl203, i noticed a sale item i wanted on nmwa is five dollars more than it is on mrporter. can you price match, give me my sf discount, and another 50% off retail price for all the mental stress and anguish you have inconvenienced me with? oh, also, i'd also like free overnight shipping, but i'm leaving for korea tomorrow and i want to wear it there, but i don't have room for it in my luggage, so can you please send it over to korea so it'll be there by the time i arrive? i think you usually ship dhl, but i'd prefer if you could ship via ups because they didn't charge me customs last time. thanks!

Please to check with Kyle

gdl203 said:

I would rather have $100 in revenue and $30 in margin/profit, than $200 in revenue and $20 in margin/profit (because less % of revenue at markdown). A smaller pie but more margin for the retailer means that it can stay in business and pay employees. A larger pie that means digging a financial hole, will lead to the retailer closing eventually (or to Daddy to stop funding the losses like those stores Fok eluded to).

So, if there's a few bucks difference in the price we see at a small business versus one of the giga-fashion machines like Yoox/Mr Porter or Amazon/East Dane, we should keep that in mind if we want to allow an alternative to those virtual malls to continue to exist

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So, real question. Would you rather do $100 in gross revenue, with a net profit (so, after all expenses) of $30, or would you rather do $100MM dollars in gross revenue, and have the same $30 in net profit. In the second case, though you are not particularly profitable, that you would have a much larger footprint, have access to far greater resources, far greater potential, etc...

The former. Because with the latter, any tiny variations in margins or unexpected costs (scaled to 100mm) could result in losses - potentially large losses.

gdl203 said:

The former. Because with the latter, any tiny variations in margins or unexpected costs (scaled to 100mm) could result in losses - potentially large losses.

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That's true, but on the other hand, you also have the potential for much greater profits, and with such a bit operating budget, it's not like cost cutting, offloading unprofitable units, investing in technology to make your operation more efficient, etc... are not options.



LA Guy said:

That's true, but on the other hand, you also have the potential for much greater profits, and with such a bit operating budget, it's not like cost cutting, offloading unprofitable units, investing in technology to make your operation more efficient, etc... are not options.

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Isn't this all relative though. No matter if your operating at 100 or 100m you still have to operate within the current constraints of the company, scaling, employees to keep up with demand, etc. The difference seems to be exactly what gdl mentioned. At a lower margin, it allows one to be more nimble and weather the storm more efficiently if there were to be one.

Also, when is enough profit actually enough?

This is I think the downfall of most retailers, is they are trying to be everything and cater to a wide audience and in the meantime they have scaled to be something they are not. There are very few retailers these days who really have a particular point of view.

winston86dit said:

Isn't this all relative though. No matter if your operating at 100 or 100m you still have to operate within the current constraints of the company, scaling, employees to keep up with demand, etc. The difference seems to be exactly what gdl mentioned. At a lower margin, it allows one to be more nimble and weather the storm more efficiently if there were to be one.

Also, when is enough profit actually enough?

This is I think the downfall of most retailers, is they are trying to be everything and cater to a wide audience and in the meantime they have scaled to be something they are not. There are very few retailers these days who really have a particular point of view.

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Well, it is relative, of course. It just depends on what sort of company you'd like to run, what excites you. In the small company, you are really doing everything, and you had really better like clothes. In the large company, you are a guy who likes to make things run. It's possibly, but not necessarily, a completely different mindset.

nahneun said:

hi @gdl203 , i noticed a sale item i wanted on nmwa is five dollars more than it is on mrporter. can you price match, give me my sf discount, and another 50% off retail price for all the mental stress and anguish you have inconvenienced me with? oh, also, i'd also like free overnight shipping, but i'm leaving for korea tomorrow and i want to wear it there, but i don't have room for it in my luggage, so can you please send it over to korea so it'll be there by the time i arrive? i think you usually ship dhl, but i'd prefer if you could ship via ups because they didn't charge me customs last time. thanks!

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I know you think you're being hyperbolic, but...

gdl203 said:

Please to check with Kyle

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conceptual 4est said:

I know you think you're being hyperbolic, but...

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lol… it's kinda his thing tho.