Discussions about the fashion industry thread

[double00]

I flipped a couple of thrifts thru trr a couple years ago... one was a wimmenz cape that im certain an employee bought mid-processing. I dont mind a little self dealing.

 

[dieworkwear]

Not about fashion per se, but about the discussions we've had about IT and fashion jobs.

Kevin Drum and Ezra Klein on why today's Neo-Luddism movement isn't that different from old ones:

http://www.motherjones.com/kevin-dr...r-just-the-latest-bit-of-silicon-valley-hype/

https://www.vox.com/new-money/2017/8/21/16176478/robots-ai-mass-unemployment

 

[double00]

i think in every near-future buddy-cop procedural that i've ever seen the android is paired with a grudging, salty human. i've yet to see actual technology outstrip the ideal set by pop sic-fi so I'm not too worried.

 

[Epaulet]

Does affirm charge lower rate than credit card

I found this on a site...

"Fact: 36% of Millennials have never had a credit card, said CreditCards.com. Add as with many, many millions of other Americans whose credit blew up during the Great Recession and, by any calculus, many of us have burned out on traditional credit card vehicles. “A lot of people are tired of credit cards; they are customer unfriendly,” said John Di Frances, managing partner of consulting firm Di Frances and Associates.

Enter Affirm, which said it will provide consumers who lack Mastercard or Visa with an alternative way to finance online purchases that lets them buy over time, sometimes with lower interest rates than charged by traditional credit issuers and with what Affirm insisted is an absence of sneaky charges. “We never charge any compounding interest and there are no hidden fees," Affirm says. "We strive always to be more transparent and fair than any other form of financing.”

Affirm also insisted that it uses a variety of credit scoring sources in making decisions to lend or deny and some of these sources - such as a would-be borrower’s LinkedIn account data - are notable departures from traditional credit scoring. That, Affirm has said, is key in assessing a younger demographic that in many cases has scant credit history to review. "

 

[nahneun]

hmmm....is that statistic really true?

 

[Epaulet]

hmmm....is that statistic really true?

Certainly sounds weird.. and admittedly I didn't have the time to look into this more carefully. But I imagine that Affirm works for customers who don't have a credit card or perhaps have their cards max'd out.

People will spend money in all sorts of irrational ways when there's a bag or a fashion item that they "need" to own. I imagine that it's a viable alternative at least.

 

[cyc wid it]

Affirm strikes me more as a passion project, rather than financially solvent. It's been around for a while, but I'm just starting to see it more (I think Hodinkee offers it for their watches too? Are people w/o credit cards buying $50k+ watches?). Crazy funding.

 

[King Calder]

Most consumer research would lead you to the conclusion that young people are more skeptical of credit and banks, and that there is a sizable portion of them who prefer debit to credit. There's a pretty wide gap between the people who can't and the people who prefer not to get credit cards, and I think it stands to reason that one of those groups is more likely than the other to have, like, a LinkedIn page that Affirm can look at for underwriting. Affirm is probably targeting people who value transparency and simplicity, who are modestly skeptical of banks and credit in general, and while I doubt they'll be wildly successful and scale there is probably a decent market for that. I know a number of young people with reasonable jobs but various types of debt who just prefer using their debit card.

To put it in perspective, consider that the majority of Americans still haven't used a ride-sharing app.

 

[LA Guy]

Most consumer research would lead you to the conclusion that young people are more skeptical of credit and banks, and that there is a sizable portion of them who prefer debit to credit. There's a pretty wide gap between the people who can't and the people who prefer not to get credit cards, and I think it stands to reason that one of those groups is more likely than the other to have, like, a LinkedIn page that Affirm can look at for underwriting. Affirm is probably targeting people who value transparency and simplicity, who are modestly skeptical of banks and credit in general, and while I doubt they'll be wildly successful and scale there is probably a decent market for that. I know a number of young people with reasonable jobs but various types of debt who just prefer using their debit card.

To put it in perspective, consider that the majority of Americans still haven't used a ride-sharing app.

I hate ride sharing. I'll take a cab every time. The only time I've used Uber or Lyft is when I'm in NYC in some super inconvenient neighborhood.

Re. credit, there is an entire generation that has grown up with Paypal, and many have used it exclusively, without any traditional credit cards. Our generation (Gen X) are used to playing all sorts of games with credit cards. I have a lot of friends who essentially make a game out of getting most mileage out of the promotions for opening up a card, and paying the least for those benefits, but never carry month-to-month debt. I personally don't have the energy for that, but I do toggle between a couple of cards. Some are better for travel, some for cashback, etc... I don't see that happening nearly as much with the generations following ours (Millennials on down).

 

[NGOStudio]

Anyone has an idea what might happen when a luxury brand's items are all over eBay and other secondary markets, one such as Stefano Ricci?

 

[double00]

ricci does quite well on secondary markets. so does bijan and the like. i think it's actually a pretty great way to expose those brands to aspirational oligarchs without having to resort to discount or outlet, etc.

eBay never hurt chanel afaik.

 

[King Calder]

Relevant to discussion of affirm, which is perhaps doing better than we were previously giving it credit for:

https://www.wsj.com/articles/wal-ma...est-threat-to-card-giant-synchrony-1503399683

Upstart financing firm Affirm Inc. is in talks to offer installment loans to Wal-Mart Stores Inc. customers, said people familiar with the matter.
The development is the latest sign of retailers' desire to reach new customers with limited credit histories and of the intensifying competition facing credit card providers such as Synchrony Financial, the exclusive issuer of US credit card for the world's largest retailer.

I'm conflicted; this could be a good option for consumers with stable incomes but low savings to finance larger purchases, or it could be a way for retailers to try to bump sales by offering another avenue of financing. Maybe a bit of both.

 

[LA Guy]

Relevant to discussion of affirm, which is perhaps doing better than we were previously giving it credit for:

https://www.wsj.com/articles/wal-ma...est-threat-to-card-giant-synchrony-1503399683



I'm conflicted; this could be a good option for consumers with stable incomes but low savings to finance larger purchases, or it could be a way for retailers to try to bump sales by offering another avenue of financing. Maybe a bit of both.

Do you really think that there retailers reasons for this are in any doubt?

 

[King Calder]

I think I'm probably thinking about it too hard. I'm surprised with how low the average Affirm loan is though.

 

[gdl203]

I had a conversation yesterday with an e-commerce veteran. We were talking about NoMan's products being more high end and higher ticket than typical e-commerce. First thing he said after that was "have you thought about Affirm? It's perfect for those higher ticket items."

Personally, I'm not really comfortable with the idea of promoting debt to our customers as a way to afford clothing. Maybe I'm just naive and many already do with credit cards and PayPal later... but I'm still not comfortable with promoting that.