Thursday, April 24, 2008

High-Value Retail Brands and Fashion Hops

Wal-mart is revisiting fashion wear once again. Remember how Target suddenly got all excited about Isaac Mirzahi? [designer dude. Designed clothes for Target. Big deal] Well, Wal-mart has a tougher sell—designer clothes are typically more expensive than the usual t-shirts and low-priced garments they sell currently. But get this, according to WSJ, higher fashion apparel and bedding have higher profit margins than other merchandise—almost 32 percent [10 percent above any other category].
I like Target [Wal-mart not so much, but that’s also coz I know the Target store map better. Go figure!]. I go there to buy my home supplies typically…sometimes cereal and such. Clothes? Not quite so much unless am looking for a basic black tee and the likes. Would I do an afternoon’s worth of fashion shopping there? Most likely not. Does the ‘designer’ label convince me? Maybe it will. The trick is, with places like Target that have a lot of value-shoppers anyway, there is no real differentiation between the apparels and the ‘designer’ apparel sections. Somehow I think that’s key—I don’t want my slightly pricier designer apparel bundled up near the discount section, where is the exclusivity of purchasing something that costs more?
I think with most of these stores, in-store design is never given a second thought. And it should be given its due credit—if you jump into fashion lines, mark out the space in your store that will reflect that attitude and make it desirable. Isn’t perception supposed to be everything?

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