One branded dress equals to zero balance
Recently retailers have been through a lot off difficulties due to lower profits throughout the Christmas month. Retailers were already aware of the upcoming losses. No one was willing to pay large amount for a product which was affordable first. People are still recovering from the economic fall we suffered from the previous years. People are learning from their mistakes, not spending as much as they used to on branded items which could easily bought for merely have the price elsewhere
How do think this affected the fashion retailers through Christmas?
Last Christmas high street fashion sales fell “unexpectedly” in the first week of December. Surveys had shown a fall of 5.9% in fashion buying.
“Non-food sales in stores dropped 4.1% in the week ending 8 December, led by a 5.9% fall in fashion buying, figures from the accountant BDO showed.”
This showed how high street fashion was struggling from the customers who were put off Christmas shopping. In order to increase the profits, high street fashion H&M decided to cut down theirs prices on items up to “60%”, competing with other fashion companies. They knew well that customers are stopping themselves from buying expensive objects. Due to this H&M was catching their customers by holding sales because they knew customers would definitely be attracted in today’s economy. Customers would think their getting a bargain and end up still paying a large amount on clothes.
This scheme which H&M had come up with was costing fashion brand retailers a lot of money. And so the “world’s second largest retailers House of Fraser and French Connection” also clichéd the idea of deductions and putting items on sale to stand back up again in that time of the year when they should really be loaded.
Others stores such as Marks and Spencer and John Lewis also used the same strategy of sales in which they both offered 20% discounts.
“Marks & Spencer is offering a 20% discount in-store on non-food items for holders of online vouchers this weekend for the second time in a month, and John Lewis is offering 20% off many items to match competitors’ discounts”
“this new competition has forced brand names, that we know to never have sales, to start competing with these discount stores with some discounted prices of their own”
This concession has had a big impact on how people dress. How?
Well take it this way, people who used to shop in Topshop and Selfridges prefer discounted shops such as H&M and mostly Primark. Yup, for luxury fashion brands this is such a downhill. But for Primark they surely will become international before we know it. I believe that peoples fashion sense has changed a lot too, they look more at quantity rather than quality, they’ve understood that items such as a simple t-shirt could cost them over £30 in brands stores where as they can buy the same type of t-shirt less than £10 in discounted stores. Even though they know the quality of the product will not last as long as the branded items, but that still makes a different to how much is left in their wallet after a shopping spree.
“It’s time to slow down and consider the true cost of choosing quantity over quality.” – Kate Fletcher
So many celebrities have also suffered financial issue due to their bad habits of going over board for fashion. The first name would obviously be Lady Gaga, we all know her fashion sense only makes sense to her, but even millionaires like her can go bankrupt because of their obsession with clothes. In 2011 Lady Gaga’s Monster Ball Tour left her bankrupt.
“This is ridiculous, I have five No. 1 singles” — and they said, “Well, you’re $3m in debt.” ‘– Lady Gaga
“it is comforting to know that our country’s fashion can continue to grow as fast as the economy changes.”
WORLD WIDE WEBPAGE:
© 2014 Guardian News and Media Limited or its affiliated companies. All rights reserved. http://www.theguardian.com/business/2013/dec/13/high-street-price-cuts-consumer-spending-falls-christmas [ACESSED 23RD JANUARY 2014]
Copyright © 2002-2014 EMAP Publishing Limited http://www.retail-week.com/stores/comment-primark-or-topshop-the-two-speed-store-design-economy/5056677.article [ACESSED 23RD JANUARY 2014]
AND Magazine c2009-2013 Legal & Privacy | Designed and powered by Stipko Media © 1989-2013 http://www.andmagazine.com/content/phoenix/11681.html [ACESSED 23RD JANUARY 2014]
Published by Associated Newspapers Ltd Part of the Daily Mail, The Mail on Sunday & Metro Media Group © Associated Newspapers Ltd : http://www.dailymail.co.uk/tvshowbiz/article-1392686/Lady-Gaga-admits-went-bankrupt-spending-millions-tour-costumes.html#ixzz2rJvsclia [ACESSED 23RD JANUARY 2014]
FASHION CAPITAL: STYLE, ECONOMIES, SITES AND CULTURES BY JESS BERRY
THE SPIRIT LEVEL: WHY EQUALITY IS BETTER FOR EVERYONE BY RICHARD WILKINSON, KATE PICKETT