Sassons Jeans marketing campaign - 1980s

[LA Guy]

Originally Posted by wEstSidE

Volume is the way to make money, not exclusivity/higher pricing (the two are obviously related), therefore Seven's had to switch up their game plan.

Depends on the brand. Sometimes overexposure can really hurt a brand. Calvin Klein, for example, really got screwed by Warnaco, which held the license for its underwear line, because the distribution into discounters diluted the Calvin Klein Brand to the point where it became a nearly unsellable company. Same thing happened to lots of designers in the 70s and 80s, who lost control of their licensees.

Exclusivity is the way the brand sells. But of course, volume is how money is actually made, so luxury and designer brands walk a very thin line.

I don't know anyone at Seven for All Mankind, but my guess is that after purchasing the company, the executives assigned from VF sat down and said "Hey, this product is still being marketed as if it were an exclusive brand. Screw that. Exclusivity is not the selling point here."

 

[wEstSidE]

Well,

the question is whether or not Seven has mass appeal. I think they do. Therefore they can just say "FUK U" to the buyers who based their preferences on "exclusivity" and sell some of their jeans to discounters, or at a lower pricepoint. I can foresee them putting out a diffusion line or something at 80-100 if they havent already.

 

[LA Guy]

Originally Posted by wEstSidE

Well,

the question is whether or not Seven has mass appeal. I think they do. Therefore they can just say "FUK U" to the buyers who based their preferences on "exclusivity" and sell some of their jeans to discounters, or at a lower pricepoint. I can foresee them putting out a diffusion line or something at 80-100 if they havent already.

Oh, I agree that the Seven is no longer based on exclusivity, especially in 2007, when $150 is the entry level for premium denim.

There doesn't really seem to be a reason for them to bring in a line at 80-100 though. The market that they have a lion's share of is still one of the largest growing sectors, they are pretty savvy staying on top of trends, and they are not having to play catch up like Levis has been trying to do.

 

[wEstSidE]

You would have been right a year ago, I think. But from what I've seen Levi's has caught up quit a bit, and the competition is fiercer than ever. There's a new denim line popping up everyday, pandering to a different market. Seven has a large lineup and it's going to become increasingly difficult to compete with other brands that sell at the same pricepoint, eventually they'll be selling based on the name only (if this isn't already the case) over other factors. Denim production seems to be extremely efficient these days because the under 100 market has been churning out some great items (Cheap Monday, Uniqlo). Soon enough the premium companies are going to have to step their game up or resort to mall brand status.

I looked at as much Seven stuff online as I could, and for the most part they don't seem very up on trends. I can't imagine they are looking for an "informed" consumer. The strategy will change soon or the company will perish, IMO.

Then again past events don't always predict the future, huh?

 

[wEstSidE]

BTW, I don't mean to say that Cheap Monday or Uniqlo are contenders by any means, but they do a good job on keeping up (wide leg, high waist, skinny, etc.) and at a lower price point.

 

[LA Guy]

Well, the fact is that you can put all the bells and whistles on a pair of jeans, and use really good fabric, but unless you come up with something really special and/or are working with extremely small scale production, and most premium companies, worldwide, do not, you are going to be pull your costs under $40/piece. Most premium denim companies out take outrageous markups because they can, and for brand management purposes.

I'm not sure what you mean by stepping up their game, but Seven pretty much has the market cornered on fit. Go out on the main street in any city in the US, and take a survey, and when asked to name a line of premium jeans that fits well, the majority of women will say "Sevens". This perception extends to Europe, where Sevens retail for 200+ Euros. They have been replaced, for the most part, in leading stores like Browns Focus by newer brands like J Brand, but they still command a lot of prestige.

And Seven has all the trends covered, from super skinnies to the newer super wide legged "elephant leg" jeans, from super distressed and/or super embellished washes to one wash, clean models.

Originally Posted by wEstSidE

You would have been right a year ago, I think. But from what I've seen Levi's has caught up quit a bit, and the competition is fiercer than ever. There's a new denim line popping up everyday, pandering to a different market. Seven has a large lineup and it's going to become increasingly difficult to compete with other brands that sell at the same pricepoint, eventually they'll be selling based on the name only (if this isn't already the case) over other factors. Denim production seems to be extremely efficient these days because the under 100 market has been churning out some great items (Cheap Monday, Uniqlo). Soon enough the premium companies are going to have to step their game up or resort to mall brand status.

I looked at as much Seven stuff online as I could, and for the most part they don't seem very up on trends. I can't imagine they are looking for an "informed" consumer. The strategy will change soon or the company will perish, IMO.

Then again past events don't always predict the future, huh?

 

[wEstSidE]

Originally Posted by LA Guy

Well, the fact is that you can put all the bells and whistles on a pair of jeans, and use really good fabric, but unless you come up with something really special and/or are working with extremely small scale production, and most premium companies, worldwide, do not, you are going to be pull your costs under $40/piece. Most premium denim companies out take outrageous markups because they can, and for brand management purposes.

I'm not sure what you mean by stepping up their game, but Seven pretty much has the market cornered on fit. Go out on the main street in any city in the US, and take a survey, and when asked to name a line of premium jeans that fits well, the majority of women will say "Sevens". This perception extends to Europe, where Sevens retail for 200+ Euros. They have been replaced, for the most part, in leading stores like Browns Focus by newer brands like J Brand, but they still command a lot of prestige.

And Seven has all the trends covered, from super skinnies to the newer super wide legged "elephant leg" jeans, from super distressed and/or super embellished washes to one wash, clean models.
Hahaha. It seems that you're right about the last paragraph. The sites I checked chose only to stock certain styles. On further inspection they do indeed have basically every style cornered. On the first paragraph, may I remind you that a great deal of costs are outside of the production? Even if Sevens cheapest production costs (probably for rinsed denims) are very low, I doubt their profits per denim are that high.

I still think they'll become a Macy's brand soon enough.

 

[LA Guy]

Seven has been a Macy's brand for years. It hasn't hurt their bottom line at all, nor decreased their prestige. It's the prestige brand for most people, and most people think of Macy's as pretty high end.

The company was just sold for huge amounts.

 

[wEstSidE]

Really? I guess they only do B&M then? I generally associate Macy's with Baby Phat.

Then it will be a T.J. Maxx brand soon (if it isn't already).

Which group bought them?

 

[tagutcow]

Originally Posted by wEstSidE

Really? I guess they only do B&M then? I generally associate Macy's with Baby Phat. Then it will be a T.J. Maxx brand soon (if it isn't already). Which group bought them?
 VF Corporation , the world's largest clothing company that- bizarrely enough- is located right here in Greensboro NC (completely unbeknownst to most Greensboro residents, I'm sure.) http://en.wikipedia.org/wiki/VF_Corporation