We want to invite you all to come along to our June Meet-up on Friday 23rd, in the Workbench Bank of Ireland.
This is an opportunity for us to catch up with what everyone is doing at the moment, meet new faces, have a chat, and tell you about news from our end!
Topics which will be covered:
– Details on the upcoming September Fashion Show
– News on our membership offer
– Update on the Studio House progress
– A meet & greet of each of us, with everyone getting a chance to introduce themselves and tell about their design business
– Sounding board for any issues as a designer which you would like to address in a future workshop/talk
There will be nibbles and drinks, and we will have quite a structured meeting in order to get everything covered..
Fashion retail is a multi billion euro industry with women’s clothing accounting for over fifty percent of total revenue. Once upon a time, fashion was strictly a seasonal business with most sales made in the run up to holidays or the start of school terms. Now the fashion retailing has become an year long booming industry with a constant and unyielding consumer turnover.
Now fashion retail is at a cross roads, facing certain challenges as well as many opportunities as it tries to negotiate the modern age. This week’s blog post will offer a brief look at some of these challenges and opportunities in the hope that we as members of the Galway Designers Network will be able adapt as we operate within the industry.
1. Data Protection
The biggest challenge facing the retail sector today is protecting point of sale and customer data from security breaches. As stores interact with their customers online, data is being acquired by stores to ensure they meet their target market’s needs. This included vital personal information which must remain secure from hacking. In addition to this, retailers face the dilemma regarding the ethical consequences of selling this data to third parties for monetary gain.
2. Customer Acquisition
Retailers are struggling to continually drive traffic to their stores and keep returning customers. Now virtually all growth in consumer spending is being captured by e-commerce via online sales. Retailers need to stand out from not only their competitors but also from the online versions of their stores so as to ensure the store’s function in customer acquisition and retainment is relevant and successful.
3. Evolving Customer Profile
The contemporary consumer is highly informed, enabled by new technologies to access unprecedented amounts of information such as pricing, product reviews, newest trends etc. This means that retailers are finding it difficult to acquire loyalty or new customers altogether. Consumers expectations are higher than ever before; they want the best of everything – high quality merchandise, 100% availability, next-day delivery, free returns, excellent customer service – and they expect the best of everything.
Added to this, consumer class structure is evolving constantly as even the most affluent consumers find it strange to pay full price for most things, while lower and middle class consumers will push themselves into debt to afford faux luxury goods and services. This results in a difficult balancing act for retailers to stimulate purchases without being aggressive on price or delivering exceptional value.
1. Omnichannel System
The omnichannel system offers several opportunities for retailers. It gives customers the chance to experience effortlessness in their shopping experience and enables them to be in constant contact with a company through multiple avenues at the same time: by visiting the brick and mortar store, going online via the website or the app. They can research products and compare prices, which will ensure a company has to stay competitive to stay relevant. By completing purchases online and paying for in-store purchases via click-and-collect services, companies can also draw online consumers into their stores. An omnichannel system also gives retailers the flexibility to make near-real-time decisions to reroute products and streamline transportation to get the right products to the right locations at the right time, ensuring customer satisfaction.
2. Market Segmentation
Market segmentation enables retailers to identify the specific needs and wants of customer groups and using these insights to provide products and services which meet customer needs. Retailers can use market segmentation to ensure they do not find themselves facing a downturn in sales by creating and exploiting opportunities directed at the top and bottom consumer classes. The current rising income inequality gap has resulted in an ‘hourglass’ economy, which has placed a lot of pressure on the middle classes and an intriguing opportunity for retailers to attract the attention of the upper and lower income groups.
The top strata of consumers often account for a disproportionate amount of consumer expenditure and given they have the means to spend, it has resulted in more retailers coming out with faux luxury products or experiences and aiming them at this market. e.g. the personal shopping experience with complimentary champagne. On the other end of the consumer scale are the bottom strata consumers, who are more conscious about how and when they spend.
ZARA provide a perfect example of how they use market segmentation in their company to ensure strong sales in all three consumer strata. ZARA will often have a ‘studio’ or ‘premium’ collection, with a slightly higher price point and higher quality merchandise aimed at the top consumer class. Then for the squeezed middle classes, the ‘special’ prices section offers consumers a chance to purchase merchandise at a slightly discounted price point, and the stock available changes week to week as new stock drops. Finally for the bottom consumer class, ZARA’s biannual sale will enable consumers to become a ZARA customer through the heavily discounted seasonal merchandise.
3. Optimizing The Offline Sales Process
One of the biggest opportunities for growth in the retail sector is the proficiency of the offline sales experience. More customers are choosing to shop online, and while they may be loyal and recurring customers, they may never darken the door of the store front. The retail sector has the opportunity to convert more customers and increase sales by creating an efficient and inviting experience for customers in store. This can be achieved in several ways: the use of promotional events will drive incremental visits; click-and-collect/buy online and pick-up in store services must be executed flawlessly; a proficient, engaging and friendly staff dedicated to good customer service.
4. Inventory Management Processes
The retail sector now have the opportunity for to greatly improve and shorten inventory management processes thanks to developments in technology and the changing pace of the fashion cycle. Buying and selling seasons are no longer mutually exclusive and stock outs result in a loss of sales for retailers. Retailers have the opportunity now to choose the right inventory for their store/channel at the exact time it is required, not six months prior as was the tradition. This not only ensures the most up to date trends and styles are supplied by retailers, but also that stock replenishment can be accomplished efficiently. Now retailers must focus on flexibility and speed to market rather than cost cutting measures.
The future of fashion retailers is standing at a precipice, and how an individual retailer chooses to navigate the various challenges and opportunities will dictate the success of the industry as a whole.
If you are a young designer looking to make your mark in the retail sector and start your own fashion business, check out last week’s blog post for a strategy in negotiating the various challenges of going from a hobby-designer to a successful fashion business.
The fashion industry has undergone some pretty significant changes over the course of the new millennium.
Trends are dictated less and less by one It-Girl/Celebrity or one designer showing in Paris/London/New York/Milan and there is a surplus of disposable income like never before. As a result of this new found financial freedom, fashion is starting to become dictated by us, the People, as we have more money to spend on the clothes we want. We as consumers and fashion lovers have drastically changed the ways designers, creative directors and buyers have had to approach their jobs.
This week’s blog post is going to explore three new developments in the current fashion landscape which have been directly influenced by us and how we are approaching fashion in a modern world.
Sustainability is trendy
One of the biggest developments in fashion in recent years is the move towards socially just, organic or fair-trade fashion. The cosmopolitan middle class of the industrialised nations in the Western World are more aware than ever, thanks to the widespread availability of news and media, how immoral some clothing production and manufacturing methods have become. No longer ignorant to the damage fast fashion has caused, designers and buyers are increasingly looking for goodly alternatives to satisfy the now savvy consumer.
The LOHAS Market
Consumers are now looking for fashionable clothing which has been manufactured under environmentally friendly and socially just conditions. Designers and buyers have to make smart decisions in order to meet the high standards of this new target market, an educated middle to upper class grouping known as LOHAS, which stands for lifestyle of health and sustainability. These people want to buy clothing that is socially conscious but without any concession on style. Nowadays, ethical fashions are compatible with the desire for mass consumption, given they are no longer inferior to the mass produced competition.
Fashion with Social Criteria
Designers and buyers have to look out for materials which have been grown or processed organically without the use of chemicals, pesticides or pollutants, and without the wasteful use of natural resources like water. They have to ensure that they are liaising with suppliers who are ensuring an infallible application of social criteria in regards to working conditions whereby the staff receive reasonable wages and working hours, adequate health and safety protections as well as a ban on any child labour. The current move towards market globalisation along with technological advances have meant that production, networking, purchasing and shipping of clothing for the Western market have created numerous ethical black holes for consumers. We as consumers are aware more than ever before of the hazardous conditions in which some clothing is produced for the West, and the fashion industry have become acutely aware of the resulting backlash.
Gone are the days of fair-trade fashion being associated with hemp trousers – sustainability is chic, and the People have created a need to meet the growing gap in the market.
Changing Fashion Cycle
Now, now, NOW: A shift towards immediacy
Today, fashion shows are being streamed live and we, the consumer, have become obsessed with shortening the turnaround from catwalk to wardrobe. As a result, the fashion industry has had to change in ways like never before and the fashion cycle has had to evolve to keep up with consumer demand. Gone are the days of design houses showcasing looks in a catwalk presentation and the consumer having to wait six months for the new collection to drop. Designers like Burberry and Tommy Hilfiger have adopted a ‘See Now – Buy Now’ model with catwalk looks being readily available as soon as the clothing hits the runway. Consumers want to be as trendy and fashion forward as possible as soon as possible and this has created a whole new dynamic in the fashion industry.
The rise of the Fashion Blogger Fashion blogging is reshaping the fashion cycle as the People have looked to bloggers more and more as a source of inspiration. If a blogger has it, a designer, buyer or retailer knows the customer will want it sooner rather than later. No better way to have your item sell out than have it featured in a blogger’s Instagram. Consumers do not want to wait to have their favourite bloggers latest accessory, which has shifted the fashion cycle from a waiting game to a now is not soon enough space.
The idea of a fashion cycle is becoming more and more obsolete as we as consumers have decided to disregard its rules and we slowly move towards a constant and immediate fashion continuum.
The Smartphone, the modern fashion magazine
Technological developments in recent years have had a dramatic effect on fashion. The advent of the smartphone and laptop have created new tools to harness our interests by enabling us to constantly keep up to date with fashion news through multiple media channels: online newspapers and magazines, fashion blogs, fashion related YouTube subscriptions and other social media platforms like Facebook, Instagram and Snapchat. We are living in a sea of continuous fashion feeds and designers have to create work that is not only trend driven but also conscious of the fashion culture within which they are being created and viewed to satisfy the interests of their consumer base. Designers are no longer creating clothing with a view to how it will look on a runway or in a printed magazine; now they have to create with a square Instagram frame or YouTube thumbnail in mind.
Your Order is on its way: The Internet & Changing Shopping Habits
Technology has streamlined business interactions and impacted consumers shopping habits unlike nothing before. We are conducting transactions in a much more efficient manner than ever before. With a few simple clicks, we can have clothing at our front door in a matter of hours. The advent of e-commerce has meant that designers and retailers now not only have to stay connected to the people who walk in and out of their stores, but they also have to form a critical understanding of the customers who buy from their brand online. Our choice to consume much of our fashion content and conduct purchasing online has given designers and buyers the opportunity to form a comprehensive study of a detailed analysis of our buying habits in having access to our internet history. Technology has been able to capture consumer information which is critical for designers and buyers when making decisions about a future seasons’ range plan i.e. size, colour, silhouette, macro/micro-trends etc.
By understanding the influence technology has had on us as consumers, designers and buyers can assess market trends, enabling them to make smart decisions in the future.
The biggest change to have struck the fashion industry in recent times is the influential role our voice as consumers has begun to have. We are dictating the trends in deciding what we want to buy and while there are those still out there who will heed the advice of Anna Wintour and her ilk, more and more designers and buyers are coming directly to us, the People.