The past two years have significantly changed the Fashion Industry. As we move into 2022, the rules are still evolving, but we have to keep Forging Forward despite the uncertainties; so, what is an independent brand to do? “
LA Market Recap
Many fashion brands remain dependent on department stores, retailers, and multi-brand boutiques to drive sales, but the cost of doing business with these third parties is growing. Here’s how labels can protect themselves.
For years, brands have struggled with their wholesale partners, especially in the US, where deep discounting and mounting demands over everything from shipping dates to packaging standards left many labels owing money at the end of the season instead of making it.
The pandemic has been an opportunity for our brand to take a breather, actually focus on what is sustainable, and elevate our brand. After a brief hiatus from wholesale markets, we returned to the LA market, showcasing our newest collection. I can’t deny that we were a bit nervous about showcasing in such unpredictable times. Especially as Omicron infections surge across fashion’s global capitals, brands face a now-familiar dilemma: should they steam ahead with in-person market/fashion week show plans amid rising health and safety concerns? For a growing number of designers, the answer is no, but we decided to forge forward.
So, what are independent brands to do, the ones who show up and face the unpredictable market head-on?
Negotiate Better Terms: In most cases, multi-brand retailers still have the upper hand: thousands of brands, despite a decreasing number of retail outlets. It’s worth negotiating better terms upfront than what is being offered. Find a point that is comfortable for both parties “equilibrium.”
Direct Channels: The brand sells the product directly to the consumer without third-party involvement. Direct retail can be more profitable because you don’t have to give up the store’s cut — usually about half of the product’s retail price — but it’s also harder to pull off because you have to spend more money marketing the product yourself.
Online marketplaces are easier to join because a brand can often use the same inventory for its direct channels.
Consignment
There are unique ways to approach consignment, like having a one-day trunk show or a month-long pop-up in a retailer that you admire. It’s a way to generate interest and test whether a longer-term partnership makes sense. Generally, I advise against ready-to-wear brands cutting consignment deals.
Stay close to the consumer
Make frequent visits to stores — or even schedule a Zoom call with an associate — to ensure your product is being presented in a way that you feel reflects your ethos. You should constantly check which products are selling and which ones aren’t and work with the retailer to ensure you get the highest sell-through possible.
It’s difficult enough as is for independently-owned brands to survive. Adding a pandemic to the mix means every business decision should be analyzed. In your best interest, find a way to grow organically be resilient and optimistic as we all try to find our bearing in these uncertain times.
Photography Credit: Nomadic Odero