NY Mag: Gilt selling merch made for Gilt

[Sebastian_Flyte]

From today's issue:

http://nymag.com/fashion/10/spring/63807/


Most interesting thing is that, like with outlets, designers are starting to make certain items available ONLY through Gilt, i.e. cheaper and sometimes lower quality.

 

[DocHolliday]

The sell-through rates were interesting too, as was this statistic:

"Between the autumns of 2008 and 2009, according to Bain Capital, as little as 25 percent of all luxury goods moved at full price, and nearly half of all items didn’t sell all season."

Not surprising, but interesting.

I wonder, however, if the Gilt model is sustainable in the long run. Hard to maintain the air of exclusivity with this many customers ... especially if stuff ends up being made just for Gilt. I know I would stop buying if I received something I suspected was "outlet only."

That said, I suspect that discount shopping is the way of the future. The interweb will destroy much of the traditional retail model same as it is destroying print magazines and newspapers.

 

[JohnGalt]

"others are now making clothes specifically for the site"

"Designers discovered long ago that they could make decent margins in the discount market, and to drive up profits further, some began manufacturing cheaper-quality clothing meant specifically for sale at outlet malls."

"A designer may reduce production costs by using less-expensive materials, say wool from Scotland instead of Italy, or by using a little less stitching in the places buyers don’t see. More than one fashion executive told me that they had used flash sales as an opportunity to dust off some leftover fabric, turning a sunk cost into a substantial profit. "

"The “discount” advertised on Gilt’s site is based on what the designer calculates a department store could have charged, even though the item was never intended to sell retail."

Though this has been reported in the past, I still see this as disturbing. This certainly pushes me away from the site.

 

[DocHolliday]

This thread got buried too quickly, so I'm bumping it back up to the top.

 

[Sebastian_Flyte]

Originally Posted by DocHolliday

I know I would stop buying if I received something I suspected was "outlet only."
This wouldn't bother me as long as the price/quality still seemed good. It's like a diffusion line without a separate brand name. The problem is that so much "outlet only" stuff is crap.

 

[DocHolliday]

You should retitle this thread "NY Mag: Gilt selling merch made for Gilt"

 

[makewayhomer]

Just like that Gilt is so 2009

 

[LawrenceMD]

Originally Posted by Sebastian_Flyte

This wouldn't bother me as long as the price/quality still seemed good. It's like a diffusion line without a separate brand name. The problem is that so much "outlet only" stuff is crap.

but then you're just buying a brand then? **** that, I'd rather spend money absolutely knowing i'm getting the read deal.. especially with basics that will get a lot of use.

they basically admitted to lower quality items being sold there.... hopefully its must marginally lower.. if not then i feel bad for the buyers.

 

[Sebastian_Flyte]

Originally Posted by LawrenceMD

but then you're just buying a brand then? **** that, I'd rather spend money absolutely knowing i'm getting the read deal.. especially with basics that will get a lot of use.

It depends. The article says that often, brands will use fabric/styles from 1-2 seasons ago in their Gilt "outlet" clothes.

None of that bothers me whatsoever. I'm a straight guy. What the **** do I care if something is "1-2 seasons old"? Most of the "real deal" stuff on Gilt is previous seasons, anyhow. As for leftover fabric, that doesn't really bother me either.

What bothers me is, like you say, actually lower quality stuff. Like what's currently in designer outlet malls.

 

[NinthCircle]

Why does it happen so often, that a business based on an inspired idea insists on expanding until the idea is diluted into a commonplace?

A counter-example would be Chrome Hearts...

 

[sjmin209]

Wow--this is disturbing. I wonder if any GIlt reps are going to step up & explain this.

 

[LawrenceMD]

some began manufacturing cheaper-quality clothing meant specifically for sale at outlet malls. But nobody publicizes this. "They need to be secretive,"

Read more: Spring Fashion 2010 - Is Gilt Groupe Good or Bad for Fashion? -- New York Magazine http://nymag.com/fashion/10/spring/6...#ixzz0feLDEGgx

A designer may reduce production costs by using less-expensive materials, say wool from Scotland instead of Italy, or by using a little less stitching in the places buyers don't see.

Read more: Spring Fashion 2010 - Is Gilt Groupe Good or Bad for Fashion? -- New York Magazine http://nymag.com/fashion/10/spring/6...#ixzz0feLdxH2T

less expensive materials and intentionally less stitching ? yes I took out some choice quotes to make guilt look very guilty!

still its fair warning. these are "guilt outlet quality".

 

[edmorel]

Well without knowing the extent to which designers are cutting costs on Gilt merchandise or which designers are doing this, the discount shopper kind of brings this on themselves. You see it here all the time, "what is the retail?". People would gladly buy a POS item that is discounted 90% from some mythical retail number than buy a better item at a price that is not as deeply discounted. "a purple a green stripe Borrelli for $150!!!!, I'll take it", "that Zegna navy blazer at $500 is too expensive, it only retails for $1500". People buy brands and the discount shopper buys discount to retail. the only issue with Gilt since it's online, you can't see and feel the goods, like you can at s Brooks outlet and see how badly the 346 stuff is made, and at least Brooks tells you that it's made for the outlets.

 

[DocHolliday]

^Depends on the discount shopper. But yeah, that's the tendency/temptation. Too much emphasis on brand names, even here on a forum that professes to dislike such behavior.

Part of the issue, I suspect, is that people don't know how to gauge quality, or don't trust themselves to do so. Or they just put blind faith in a name.

 

[sjmin209]

Originally Posted by edmorel

at least Brooks tells you that it's made for the outlets.

In my mind, this is the real issue. Personally, I don't particularly care about fudging MSRPs. Anyone with a few brain cells can usually figure out if they're accurate. But if they're selling stuff that doesn't meet the quality that the brand name implies and they're not making this clear to prospective buyers, this strikes me as a serious misrepresentation.