affordable fashion
Frame fashions meet market demand for style and affordability with a fresh crop of brands and marketing strategies
by Amy Spiezio
Throughout the retail landscape, savvy pricing strategies are ensuring that buyers are engaged and encouraged to keep coming out for more.
When it comes to frame dispensing, the focus today is on affordable product that doesn't sacrifice style or profit. Deciding how to approach the affordable market involves choosing from a rapidly expanding range of options.
In a white paper by Interbrand's Josh Feldmeth, "The Crisis Paradox," a study was made that determined shoppers are more aware of brands—and the value they deliver. "The same extraordinary forces that are freezing liquidity, threatening solvency, and forcing customers to cut back on purchases have also opened up brand choice—the customer moment of truth," Feldmeth writes.
In the optical market, the industry is facing this situation by handling brands two ways: Introducing or reintroducing fashion-forward contemporary brands or cutting the price on existing lines.
BRAND RENEWAL
At International Vision Expo East, the majority of new collections launched were house brands with a fashion focus and a value price point. This move targets consumers who want to buy but may be reluctant.
"Consider it this way: In a downturn, it is not that customers will stop buying altogether. The desire to buy and the psychological need for satisfaction is still very much there—it has to be, as just months ago consumerism was rampant," Feldmeth observes.
The change in today's retail environment is the newfound or rediscovered budgets that are becoming a part of everyday life for consumers who may have been less concerned with counting every penny at this time last year. With customers becoming ever-more demanding of value for their purchases, the off-price through bridge-priced collections must meet a high quality level and style expectation in order to keep customers.
"If a service or a product is subpar, they will go elsewhere—and with so many businesses desperate for their support, they will be sure to find a brand that satisfies their needs," Feldmeth adds.
| GLOSSARY: PRICE POINTS |
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| Where do your low-priced options sit in the fashion hierarchy? The following is a guide to the affordable categories from www.infomat.com. OFF-PRICE: Low-priced merchandise. Products in this price range include closeouts, discontinued, samples, irregulars, and previous season. It is generally not presented to the public with a brand name. BUDGET: Featuring below-average prices, this is the entry classification for advertised brand names. Promotion of this price range to consumers is often based on value. This helps when reducing inventory or if you do not have a long-term commitment to the market. BRAND EXAMPLES: Ship'n Shore and Wrangler Jeans. MODERATE: Medium-priced merchandise a step above budget. This is the price classification that most goods fall into. BRAND EXAMPLES: Labels like Levi-Strauss and Van Heusen for Men fall into this category. The majority of children's wear falls into this category. BETTER: Medium- to higher-priced merchandise. These products are slightly higher profile lines that are found in department stores like Macy's. Promotion of this price range to consumers is often based on the implication of higher quality. BRAND EXAMPLES: Liz Claiborne, JH Collectibles, or Perry Ellis. CONTEMPORARY: Contemporary is currently one of the hottest categories in pricing. It represents street wear and trendy fashion-conscious merchandise, at below Bridge pricing. Often tends to represent misses and juniors sizing. This price range is also referred to as Popular. This is one of the fastest growing pricing categories in the industry. BRAND EXAMPLES: Contemporary lines include BCBG, XOXO, Isabel Ardee, Bisou Bisou, and Michael Alexander. BRIDGE: Bridge is usually the lower priced or secondary lines of designers. Bridge products have the look of designer products but are made from less expensive materials. BRAND EXAMPLES: Donna Karan's DKNY line, Emmanuel Ungaro's Emmanuel line, and JOE for Joseph Abboud. |
PRICE TRIMMING
When it comes to established brands, manufacturers are focused on retaining their hard-won marketshare until an economic recovery. Increasingly, that means expanding price points to include lower-cost entry options for the collection as well as lowering prices on line staples to keep the SKUs moving.
Optical is not alone in this situation. In fashion retail, shoppers are noting changes. According to a J. Crew fan blog, jcrewaficionada.blogspot.com, shoppers are discovering lower prices for old favorites. One visitor observed: "…in the catalog pages they are noting the starting prices of the items and that they are lower than they have been in the past? (i.e., suede ballet flats starting at $98 as opposed to $138 to $148 in the past)."
J. Crew CEO and chairman of the board, Millard S. Drexler, noted at a recent conference call that the decision was a blend of price correction, consumer demand, and marketing. "None of us is having fun running businesses today, I don't care what the business is. But I think what's going on is a lot of this is playing into our hand in terms of our opening price points, where, in fact, they were at some times higher than we'd like.
Drexler adds: "Consumers are driving it and determining retail. But our ballet flat category will start at under $100 for the first time ever. So in some cases, this is all merchandising, you might take a point or two off initial if you can get better sell-throughs." EB
| The Last Worst Time |
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| In the months following September 11, 2001, American retailers faced a dark time during which consumer confidence crashed and retail became stagnant. What did optical do to survive? According to the Eyecare Business archives, some strategies were key: BUILDING VALUE COLLECTIONS (NOVEMBER 2001): In the article "The Value Blend," consumer interest in lower-priced goods was explored. This trend was widespread, surfacing at both chains and independents, as well as high- and low-end stores. ADVICE: "It may make sense to stock lower-priced (less than $100) goods for certain customers, while also appealing to that brand-conscious person who may be willing to spend a bit more for a name." EXPANDING PRODUCT OFFERINGS (JANUARY 2002): In "Revving Up for Sun," changes in the sunglass specialty retail arena and adding business with sunwear, including playing on public awareness and ready-made marketing, were discussed. While the sunglass market may have slowed down a bit, this is still a strong multiple-pair strategy. ADVICE: "Since the public has become better educated about the benefits of polarized lenses, and manufacturers continue marketing sunwear as the ultimate status accessory, getting consumers to buy sunwear as a second pair to ophthalmic eyewear has become easier than ever." CONTROLLING INVENTORY (MAY 2002): In lean times, inventory control gains importance. The article "Frame Overload: Controlling Clutter" provided tips on keeping frame inventory lean and mean. ADVICE: "When inventory is high, don't buy. Mark down. Look for the slowest moving collection—the weakest link—and get rid of it before you bring in a new line. Keep whatever you've bought out on display rather than hidden in boxes and drawers. Order collection minimums with initial buy-in." |
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