Mercedes-Benz Fashion Week Australia is just around the corner. Phoebe Garland, of fashion sales agency Garland & Garland, says it's time designers get real about price.
While most high-end designers have chosen a vertical model for their business, there are still untapped opportunities in the wholesale market for diffusion brands of higher-end labels.
Today, there are a limited number of retailers that can carry higher price points. Most boutiques have been forced to be competitive on price due to competition with chain stores and department stores, as well as incessant discounting across the industry.
Like it or not, the wholesale market for boutiques is price pointed.
But it’s not about being cheap – it’s about providing a quality fashionable product the customer loves at a value for money price point they are willing to pay full price for without waiting for any discounting.
While the wholesale market can be lucrative it is also highly competitive. Knowing your customer is imperative.
A label needs to really listen to feedback from agents and retailers to quickly correct errors of fit or other issues which may tarnish a brand’s reputation or salability.
Boutiques are inundated with new or established labels which will happily meet retailer’s needs and take your hanger space.
Pattern making and fit are the neglected areas of the fashion industry so it’s crucial the industry gets this right.
A garment can look fabulous on the hanger but if the fit is wrong with your target market it can be an extremely costly error.
Expecting retailers to buy stock again if they have been stuck with a product line that simply hasn’t sold in the past is a tough ask.
It also leaves a bitter taste for the buyer and can damage the brand’s credibility. Investing into marketing tools such as look books and high quality fashion images is vital to selling ranges.
With so much competition and a tough retailing climate, it’s crucial that fashion ranges be consistently good every season.
Having a bad range one season is not an option – the boutique that buys your product today may be surviving season to season so each season has to count.
Most fashion buyers in the wholesale market are looking for unique ranges, styles or looks that they won’t see in department stores or chain stores because they need a product with a point of difference.
Margin is another factor for boutiques.
The standard 100 per cent mark-up is simply not enough to cover the escalating costs of staff, rent and administrative costs.
Buyers now tend to look at the ranges which offer fashion, margin and an affordable RRP which the most common volume price points seem to be ranged from pieces under $99(RRP) to a ceiling of $200(RRP), excluding coats and substantial high fashion garments of better end fabrics or import labels.
While summer sales for the retailer are stronger, our agency writes 50 per cent more wholesale sales for winter than summer.
We put it down to knitwear and coats, which carry a higher price point and offer good value in the eye of the customer.
Price points for coats can be carried higher in winter, providing there is quality in make and fabrics.
Without a doubt a strong brand name can carry a higher price point if the fit is right and the customer loves the brand enough, but they have to love it and it has to have a unique selling point.
Scanlan & Theodore, Collette Dinnigan, Carla Zampatti, Willow, Leona Edmiston, Camilla and Margaret Porritt from Feathers are great examples of designers who have captured an ageless customer in a vertical market.
But there is also still a huge wholesale sales opportunity for a diffusion range for independent boutiques at half the price points (to encourage volume sales) for a fashion range to suit a 30-plus right through to a 60 year old.
A further challenge is that fact that higher price points limits the number of stockists available to you for the simple fact that there are not as many boutiques carrying higher price points as there are boutiques carrying mid-price points.
However, whether you’re selling a car, a fridge or a coat, price points are not about being cheap – they’re about offering value for money by understanding what your customer wants and the price they’re prepared to pay …
And if you can leave a good margin for the retailer that’s even better.