Everybody loves a side hustle. Look at your wardrobe and there is probably hundreds, if not thousands, of pounds worth of merchandise not earning its keep. It’s just hanging there, not being worn or potentially earning you money. Enter the peer-to-peer rental scheme.
It’s tempting. Under the guise of being better for the environment, women are hiring out their wardrobes for a fee. The companies facilitating this are earning a commission from each hire. The business model makes sense. There’s no initial outlay and money tied up in stock for the businesses and much like other service companies - Uber, Airbnb, eBay - the majority of work is done by the individuals, while they cream off the commission. Sounds easy.
Left - MYWARDROBE HQ - CHANEL - Perfume Bottle Clutch - FROM £147 / DAY (RRP £15,000)
But, is this nascent industry working for lenders - those hiring their clothes out - and is it sustainable enough for this sector to scale? This business is only as good as its lenders and the product they can offer at a price which is attractive to others. Companies, such as HURR Collective and MY WARDROBE HQ, need to keep these individuals engaged, encouraged and make it as seamless as possible, while being low enough to keep people hiring frequently.
The current MY WARDROBE HQ mail-outs are enticing with £325 Rixo dresses for £8, or Simone Rocha fur stoles for £23 a day. At these prices, renting finally makes sense for many. It says customers can shop womenswear clothing and accessories from the wardrobes of Arizona Muse, Poppy and Chloe Delevingne, Olivia Buckingham, Roxie Nafousi, Caroline Fleming, amongst other fashion stylists and influencers. Victoria Prew
Founded in 2018 by Sacha Newall and Tina Lake, MY WARDROBE HQ is now chaired by Jane Shepherdson, of Topshop & Whistles fame and has just opened a pop-up in London department store Liberty until 31st March 2020.
HURR Collective, founded in 2017, too has launched its first in-store wardrobe rental pop-up at Selfridges, London for six months. Available to rent for either four or eight days, the stock will rotate on a weekly basis and there will be specially curated London Fashion Week, Valentines Day and Holiday edits.
The value of unused clothing in wardrobes has been estimated at £30 billion with an estimated £140 million of clothing going to landfill annually in the UK alone. The fashion rental industry is projected to reach $1.96 billion by 2023.
Sarah Angus, Content Director, MY WARDROBE HQ, say, “Customers can choose a rental term that suits their occasion; 4, 7, 10 or 14 days, and we can extend this further if they require. We have customers that rent for each and all of these terms - the 10 day particularly suits holidays/vacations, while the 4 day rental is perfect for interviews and events such as LFW.”
“Lenders make 60% of every rental or sale. Our business model includes a resale element also which has seen renters rent something, love it, and then buy it for the difference.” she says. "Our unique business model means that we manage everything for the lender; people nowadays are time poor and don’t have the time to manage things like this, but they’re conscious of the damage fashion is doing to the planet and want to do good (and also earn some cash for it). We manage the whole service from intake, photography, storage, cleaning, delivery and returns. The lenders in return receive a monthly pay cheque, minus our commission.” she says.
“We have approximately 150 lenders and this is an almost even split between individuals and brands. We have seen such huge support for the managed service that we are offering and have some big name brands joining our platform this week which we can’t wait to share!” says Angus. “We are really discerning with the items that are available on our platform and as such screen and select individuals to ensure the items are of the best condition to rent and buy. We photograph, clean and manage all the items you see on the platform so that customers can view, rent and buy the items in a premium environment.” she says.
“We price items to rent at 10% of RRP and to sell at 30% of RRP. Some items such as Chanel and Gucci retain their value so we always confer with the lender and decide a suitable price.” says Angus. “Brands in particular are tapping into this and we have seen huge uptake with brand partners, including Coach, Mulberry, Diane von Furstenberg, Temperley, Needle & Thread, Vivienne Westwood, Perfect Moment, Beulah, Chinti and Parker, all signed to MY WARDROBE HQ.”
“Our target customer is ABC1, 28-35; she recognises the damage fashion is having on the planet and wants access to items that ensure a ‘Cinderella’ moment. These are wow pieces that would cost a lot to buy but can be experienced at a fraction of the cost.” she says.
“Rental is the future!” says Angus. “Consumers care less about ownership and want to experience rather than own material things; just look at Uber, Netflix, Spotify and Airbnb, all of whom own no stock. Designers are reducing their collections or ceasing completely - Jean Paul Gaultier famously just showed his last collection and actually up-cycled his couture collection to make a stand against the damage fashion is having on the planet.
Why buy the copycat version on the high street when you can rent it from the designer that inspired it, for the same price?” she says.
“On the HURR platform you can rent for 7, 14, 21 and 28 days. This week we launched in Selfridges where you can rent for 4 days, exclusive to the pop-up.” says Victoria Prew, CEO & Co-Founder, HURR Collective.
On the HURR Collective platform the lender makes 85% of each rental, while HURR take a 15% commission. For example, you can rent a £170 Ganni dress for £32 for 7 days.
Right - Don't lose it! The infamous Jacquemus handbag from HURR Collective
“We use data-driven insights and customer spending behavioural data to suggest prices that balance both affordability to the renter and profitability to the lender. This results in a pricing model which makes it 'worthwhile' to both parties.” says Prew. “We take a tech-first approach to pricing, by consistently analysing our pricing algorithms to optimise and balance the number of rentals, and rental income.” she says.
“The number one reason for signing up to HURR is sustainability. Our user base is largely millennial and is deeply passionate and informed about sustainable fashion and the circular economy.” says Prew. “HURR is set to scale throughout the UK this year, with international expansion on the horizon. As we don't hold stock there's no limit on the number of users, their location or the number of items that can be listed.” she says.
People wearing/sharing their clothes more has to be good for the environment if it means people are buying less, but, while these look like retail sites, with the feeling of full options, these rental websites are restricted by sizing and the volume of the items stocked. They need to keep both parties happy, particularly those individuals renting their prized pieces.
Kate, 36, from London, recently decided to rent via these rental platforms, “I have quite a few designer items that I’ve bought over the years which I rarely wear, I didn’t want to sell any of them but it seemed a waste to just have them hung in a wardrobe … plus its a great way to earn a bit of extra money ;)” she says. “I googled clothing rental sites some time ago and HURR and MY WARDROBE HQ looked the best ones.
“It was quite soon after HURR launched, I requested to register as a lender, uploaded a couple of pieces and didn’t think much more of it.” she says. “One of the girls from HURR got in touch with me a few weeks later and said they were setting up a pop-up shop and wanted some pieces they could hold in the store. I sent over the items I wanted to rent and then they helped me upload everything on to the website”, she says.
“Both websites are super easy to upload. The HURR team uploaded most of the items for me (I think they offer a service for this, I’m not sure if MY WARDROBE HQ does) so it was really convenient and the photos/descriptions are perfect as they know what renters are looking for.” says Kate.
“The items HURR are holding for the pop-up - customers try on and rent in store - HURR handle all of this I just get a confirmation and payment. They also look after cleaning.” she says. “The pieces not held in the pop-up - the renter will put in a request on the website, sometimes there is some chat via message about size / fit etc. Once I’ve accepted the request (you can choose not to lend the item). she says. “I arrange postage/delivery. When the rental period has ended the renter posts/delivers back the item and I arrange for the item to be cleaned. I think its best I handle cleaning - I can ensure its cleaned exactly as it should be.”
“If the item doesn’t fit, the renter has 24hrs to process a fit return, once returned they receive a refund minus shipping/cleaning.” she says. “HURR has been great, always on hand to help with any tech issues or questions. It’s great that they hold some of the pieces in the pop-up as I think its more likely they will be rented (especially now they have a pop up in Selfridges) - plus I don’t have to deal with the logistics of renting.” she says. “MY WARDROBE HQ - I’ve loaded pieces but none of my pieces have been rented yet so I’m not sure how smooth it runs.” she says.
“Positives - I get to make some money from items just sat in my wardrobe. I’m also keen to do my part in making the fashion industry more sustainable and I think this is one small step towards creating some change.” says Kate. “Negatives - - if something gets damaged and can’t be replaced / fixed - The HURR team advise not to rent items that have sentimental value and if you’re not comfortable renting something once a request comes in you don’t have to, so fingers crossed nothing will go wrong.”
Left - MY WARDROBE HQ - The Vampire's Wife - Velvet Tea Dress - FROM £18 / DAY (RRP £995)
“Renting with HURR has been no hassle, especially while they are holding the clothes for the pop-up and I don’t I need to do anything.” says Kate. “I’ve made enough to buy a new pair of shoes.” she says. “The pieces I have listed for rental are designer dresses/statement/party pieces. A Dolce & Gabbana sequin dress got a lot of interest over the Christmas period. I only rent clothes - not shoes or bags.” she says.
The daily rates are slightly misleading because you can’t rent anything for a single day. Both companies have a minimum of 4 days. The designer rental market, up until now, has been quite expensive and for special occasions. Too expensive and you may as well buy the item, too cheap and you can’t provide the service or convince the lenders to offer their precious items. For example, Scottish manufacturer, Begg & Co., was offering to rent a scarf for £160 for 2 weeks, last autumn. Surely, you’d buy it outright if you could afford £160 to rent a scarf? It's no longer an option on their website.
Renting is about Instagrammable, look-at-me pieces. These business models are restricted by only usually having one item, in one size, so it could be difficult to scale the business. It also needs to have a lot of ‘must-have’, desirable items to keep up the demand.
MY WARDROBE HQ’s marketing offers a £1300 Victoria Beckham dress for £22 a day, which will surely get people thinking differently about the rental market. Is there enough incentive and motivation for the lenders, we’ll have to see, but with brands joining the mix, this could be the answer for these growing companies. The designer brands will probably want to keep it on the down low to avoid it eating into retail sales, or put the 'sustainable' spin on it, but it could be a good way of making money from last season’s stock.
Will you carry on lending? “For sure”. says Kate.
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We’re halfway through #SecondHandSeptember and how are you doing? The idea, from Oxfam, was to pledge to not buy anything new for the 30 days of September. Oxfam says every week 11 million items of clothing end up in landfill and ‘throwaway fashion’ is putting increasing pressure on our planet and its people - it’s unsustainable and this is their way of making people think and act differently.
An already under pressure high-street isn’t taking this boycott lightly and many are starting to gravitate towards selling second hand clothing themselves. High street brands and retailers are piling into the second hand market trying to looking like caring, sharing and responsible custodians of the fashion industry. Offering to sell not only their’s, but other’s second hand clothes, often for charity, this is a new take on pop-ups and a perception of giving back and closing the loop on the fashion cycle.
Left - The George at Asda 'Re-Loved' pop-up in Milton Keynes
George at Asda has just unveiled their first in-store ‘Re-Loved’ charity clothing shop running for 4 weeks from 2nd September. Located in Asda’s Milton Keynes store it features donated second-hand clothes from a number of different brands, as the retailer looks at ways to encourage customers to reuse, repurpose or recycle their unwanted clothes. The move is part of a drive by George - the UK’s second largest fashion retailer by volume - to improve the environmental impact of its clothes and operations, following the launch of its new sustainability strategy and first range of recycled polyester clothing in the spring.
Melanie Wilson, Senior Director for Sustainable Sourcing at George, said, “By trialling our Re-Loved pop-up shop, we hope to help create another route for unwanted clothes to find a new home and encourage people to think again about throwing away that top or those jeans they no longer love.” All proceeds from the shop will go to Asda’s Tickled Pink campaign, which supports Breast Cancer Care and Breast Cancer Now.
As a whole in the UK, the average lifetime for a garment of clothing is estimated as 2.2 years. Extending the active life of clothing by nine months can significantly reduce its environmental impact. The value of unused clothing in wardrobes has been estimated at around £30 billion. It is also estimated £140 million worth of clothing goes into landfill each year.
Many brands and retailers are starting to looking into the second hand market as the world is challenged with ever growing mountains of discarded clothes and unsold inventory. It was reported last year that H&M had an incredible $4.3 Billion in unsold clothes. Places like Topshop and Urban Outfitters have had vintage sections for years, and Marks & Spencers has its pioneering ‘Shwop’ scheme, which motivated consumers with vouchers, but to be actually selling second hand clothes alongside new is something new and the next logical step. The stigma around second hand is changing. It’s cool to wear older clothes and a badge of honour not to buy something new. Yet, consumers still get want to get that retail fix.
So, how can brands and retailers make money from this?
Olly Rzysko, CMO & Retail Advisor, says, “Ultimately, every second hand unit sold in the market is another brand new item a retailer isn’t selling. In a declining market, executive teams won’t like that and are responsible for protecting those sales. Second hand clothing is having a surge and it proves to be a logical route on paper.”
“Retail is hard right now and a number of elements are playing a factor in the growth of second hand.” says Rzysko. “Depop and Ebay are doing very well. They are ultimately taking sales from the high street, specifically taking sales of new product away from the retail brands. These businesses are making nothing when people are reselling their product and that will be challenging to accept. Depop particularly has kept its head down and built a sizeable business with only ASOS responding in the form of their Marketplace platform.” he says.
“Most brands experience double digit returns and some of these cannot be sold (as new) on for various reasons. Repairing product or repurposing them enables the returns to be more valuable and not a complete loss.” says Rzysko.
“Many stores right now are larger than required (having been built for a Bricks and Mortar landscape) and filling that space with low cost stock is crucial to prevent cash being tied up with inventory. Vintage / Reclaimed / Second Hand is a great way to fill these spaces.” says Rzysko. “Critically, it ensures the customer returns to the store at a time where footfall is in the decline.”
Right - Oxfam's new 'Superstore' in Oxford
“I think for a lot of brands it can work for their customers. It can also bring in new consumers to a brand where pricing may have been prohibitive before and serving as a gateway into the brand just like Outlet shopping does.” says Rzysko.
Besma Whayeb, Ethical Fashion Blogger, Curiously Conscious, says “With more and more shoppers conscious of the impact that fashion has on people and the planet, second-hand fashion is becoming more sought-after, as well as fashion retailers who outwardly show their sustainable practices.”
“There’s many ways retailers can promote second-hand fashion or circularity: many high street retailers already provide take-back schemes, inviting shoppers to return items when they’re finished wearing them, which they then use the materials for in new pieces or sell on to third-parties.” says Whayeb. “But when it comes to preserving the items (rather than dismantling or disposing of them), they could look at selling them as pre-loved pieces. There are already many independent second-hand and vintage resellers, however I don’t see why many brands don’t provide a second-hand section in their own stores and resell pieces they’ve previously made. This needn’t be a full-scale or full-time operation either; pop-ups to show they’re being more circular could be a promising first step.” she says. “I believe it’s a combination of lip service, taking advantage of the growing demand for sustainable fashion, and when (hopefully) they see positive results, it will become a more permanent fixture.” says Whayeb.
George at Asda says its concept is just a trial to see how customers respond to the concept. They’ll take feedback and learn from the trial to see how customers have responded to it. But, won’t these new schemes take away from the charity sector?
“It is not our intention to take away support from other charities. This charity shop continues Asda’s long-term commitment to fundraising for vital breast cancer research and support,” says a spokesperson for George.
Charities like Oxfam are fighting back though. The charity has just opened their first ‘superstore’ on the outskirts of Oxford. About 12 times the size of the average Oxfam shop at 18,500 sq ft, and run by 150 volunteers, it also works as a community space and includes an on-site café housed in an Oxfam water tank. They hope initiatives like Second Hand September will convert more people to second hand clothing. An Oxfam spokesperson said, ”We are delighted by the overwhelming positive response to Second Hand September and the huge public support it has received.
"The campaign is raising awareness about the harm fast fashion has on planet and people. Clothes that too often end up in landfill are frequently made by garment workers paid poverty wages in harsh conditions. Second Hand September is encouraging people to think twice about their shopping habits. There seems to be a real appetite for change, which some brands are responding to – but more needs to be done.”
The more clothes we have, the less we’re wearing them. This makes the majority of second hand almost like new. Second hand shopping is becoming cool and for brands it could be a good way of dealing with returns and old season stock while trying to look responsible. Fashion is addicted to volume, whether it is fast or not, so while consumers might not be buying anything new, they’re at least in your store buying something.
Below - The cafe inside a water tank in Oxfam's new mega charity shop
Menswear is often viewed in isolation. Many designers or brands who produce both men’s and women’s clothes often keep them apart when showing them to the press. The times they are together, the menswear often looks conservative and dowdy compared to its feminine counterpart.
Left - Topman AW18
So, it was with some excitement, when I attended the newly merged Topman/Topshop AW18 preview a few months ago, that the menswear was louder than the women’s. Looking across the room I thought I'd stepped to the wrong side. And, let’s be honest, Topshop womenswear isn’t exactly for shy wallflowers.
To me this signified the new confidence in high-street menswear and menswear in general. Topman has had a rocky patch of late and could have easily played safe and opted for simple basics and proven product. But, no, this was like a wardrobe for Harry Styles’ global world tour! A new Global Design Director, overseeing both Topman and Topshop, Anthony Cuthbertson, had arrived from Just Cavalli.
It’s as though Gucci has pushed the door open for this type of exhibitionist menswear and the British high-street has, literally, kicked it open. I don’t think menswear has been this colourful and bold since Tommy Nutter was a leading figure.
Right - Versace taste, lemonade budget?! AW18 River Island
And, it’s not just Topman. It’s River Island, ASOS, boohoo and many others who are reacting to an experimental male consumer who isn’t constrained by gender or the feeling of conforming.
Victoria Hunt, Senior Designer, River Island, says, “Menswear trends have been bolder of late, so there’s been a natural progression towards more adventurous clothing; not just at River Island, but across the entire industry. Catwalks are pushing the limits and this trickles down to make standout fashion more readily available."
“The trend for loud prints and statement pieces seems to be a natural fit for our men’s consumer, so we’ve really embraced it. We are also consciously driving the brand to be more cohesive across all of our departments, although our menswear, womenswear and kidswear customers are all different our collections should be instantly recognisable as River Island.” says Hunt.
Shane Chin, Menswear Design Manager, boohooMAN, says,“At boohooMAN we listen and learn from our customer and grow our collections to suit our guy. It’s a really exciting time for boohooMAN and we’re lucky to have a broad customer base that isn’t afraid to go after new trends and styles.”
“Ideas have been taken mainly from street style and considering how our guy will ultimately wear and style the garments we design. I think the resurgence of Gucci has put a real focus on bringing the fun side back to fashion and by mixing this with the current focus on streetwear, we’ve been able to push the boundaries further in the collections.” says Chin
Street style, influencers and social media seems to be playing a massive part of this growth in experimentation. One is feeding the other and so the cycle continues. These are items made for Instagram and the frenzy to standout on the platform. These are the type of clothes that make better pictures.
Left - Sequin trackies? Topman AW18 Like sequins? See TheChicGeek's picks here
“We gather ideas from all areas as inspiration for our designs: street style, editorials, art and travel to name a few. There are a lot of the big fashion houses pushing bold florals and baroques, but we’re seeing this a lot on the street too. We are always on the look out for new and exciting fashion.” says Hunt.
“Social media has given rise to this in a big way, trends are able to gain momentum so much faster now. Look at the bumbag/cross body bag – who could have predicted that was going to be so huge?” she says.
Designer fashion has become so expensive and, with the younger generation having less money or earning less, these retailers and brands are allowing guys to look as baroque as a Versace model for pocket money prices. I think the affordable prices are encouraging men to be more experimental knowing they haven’t committed as much when it doesn’t cost a month’s rent.
“Menswear is adapting to the growth of social media and the way that style inspo. is so readily available. There’s a real buzz around menswear and it’s exciting to see menswear have more of a focus at fashion weeks around the world, each season. I think the range of brands showing menswear and womenswear in the same shows has also had an effect on people being more inspired by menswear and menswear styling.” says Chin.
It’s interesting that something that was seen as a step back for menswear - the merging of designer catwalk collections - has actually made menswear step up to mirror the womenswear in its distinctive and look-at-me aesthetic and raise its awareness.
Hunt says, “The growth of menswear in general has made high end fashion so much more accessible and relevant to the customer. All over the world, menswear fashion weeks gets so much coverage on social media that men are seeing celebrities and influencers in more experimental trends and dressings and that’s something that they aspire to.
“Just yesterday I was at graduate fashion week and the amount of students choosing to study menswear has grown hugely over the past few years, so there is definitely more to come. It’s also a rebellion in part to the button-down sartorial looks of a few years back. Now, guys want to break and bend the rules, throwing prints, sportswear, tailoring and streetwear together effortlessly.” she says.
It would be silly to suggest that this guy was the majority of men, but it's growing and it’s a younger male consumer who will influence his social circle both on and off-line.
“It’s a really wide demographic – from the well-groomed Ibiza guy that likes to wear a matching twin set by the pool, to the fashionista that clashes three different prints in to one look!” says Hunt.
“The market continues to grow at more than double the rate of womenswear, so it’s not going to slow down any time soon. Men will continue to experiment and it will be exciting to see what’s next – gender is no longer a static thing, so guys don’t feel that they have to conform in the same way. We can be whoever we’d like to be and clothing is a great way of expressing that.” she says.
Right - The sequins keep coming - River Island AW18
Chin says, “I think people’s attitudes towards menswear are changing. Even in the last decade, and in my career to date, menswear trends and styles are becoming more adventurous each year. The lines are blurring and fashion is no longer a womenswear focused arena.”
Affordable menswear has never been produced in such volume and with such experimentation. Sequins, fringing, patches, badges, louder and louder patterns and prints, make this like a sweet shop for modern day Marc Bolans. This feels like a really exciting time for high-street menswear and the British are leading the charge. Where we lead, others will follow, and it’ll be interesting to see where this type of outlandish menswear can go.
Our love of the 80s continues. From the music to the films to the fashion, it’s the decade that keeps on giving.
The big trend, fashion wise, is 80s sportswear and this is the look you should be following.
Go for larger fits, especially in coats and jackets - I’m wearing a large here - with strong, contrasting primary colours.
This jacket by Tommy Hilfiger is from House of Fraser and perfectly illustrates the new look while heavily referencing its vintage archive.
Team with dad jeans, branded socks and retro trainers. Don’t forget the gold chain or necklace for that final, confident flourish. Read more why here
Are you ready, Player One?!
Credits - Jacket - Tommy Hilfiger from House of Fraser, Jeans - Topman, T-Shirt - Umbro, Necklace - Topshop, Socks - Fila, Trainers - Diadora, Cap - J Crew
We’ve all heard about the revival in vinyl over the last few years. The hipster’s music medium of choice, vinyl records are now everywhere from Sainsbury’s to Tesco. Well, the revival continues, but into our wardrobes this time.
Think shiny, think black, think vinyl. There’s something slightly pervy and sexual about it. It is one part Berlin of the 1920s - have you seen Babylon Berlin? it’s very good - one part grungy/graffiti New York of the 80s. It adds a frisson of excitement to your wardrobe and shows your daring side. A walking oil slick, team with coloured lensed sunglasses and flared jeans.
Left - ASOS - Oversized Vinyl Trench Coat - £70
Left - Calvin Klein SS18
Below - 66 North - £670 www.66north.com
Left - Balenciaga - Wobble Leather Jacket - £1795 from matches fashion.com
Left - Topshop - Vinyl Bucket Hat - £16
Below - Moncler - Mancora - £900
To call it a recession is maybe a little extreme, but let’s call it a contraction. Menswear is struggling. Some are mouthing the word #brexit but this was coming way before that and affecting international markets too, most notably America.
Like everything that goes in cycles, you have your ups and you have your downs. We’re definitely in a down cycle as brands merge their men’s and women’s and reduce the amount of labels within their brands.
Left - Inside menswear is screaming
Many are private companies so they don’t disclose profits, but when you have menswear giants like Armani and Ralph Lauren losing labels - Collezioni and Armani Jeans in the case of Armani and store closures - in the case of Ralph Lauren - then things are clearly unsustainable.
Why is this happening? The first big answer is a saturated market. Do we need much more ‘stuff’? When Ikea’s head of sustainability, Steve Howard, said we’d reached “peak stuff”, he hit the nail on the head. We’ve seen expansion online and offline and our wardrobes are bursting with clothes at every price point.
Designer fashion isn’t coming up with many new ideas and this has lead to the high-street bringing the new ideas and offering improved quality that many men are happy with. I think companies like ASOS are doing well because people are trading down to cheaper and more fun fashion and don't really wear it long enough to care about the quality.
Brands like Topman have got more and more expensive and are not reactive enough to trends and the latest gimmicks and fashions. They’ve believed in their own ‘cool’ which is dangerous for any brand. Arcadia, Topman’s parent company, has seen many high profile departures lately. Craig McGregor left his role as retail director at Topshop/Topman, after eight years, and Topshop/Topman global commercial director Matt Brewster is leaving the company. Wesley Taylor left his role as managing director of Burton and Yasmin Yusuf left as creative director of Miss Selfridge, both after more than 10 years at the business. Which all suggests the epic growth Arcadia has experienced over the last few decades has now ground to a halt. They are no longer the darling of the British high-street.
Another reason for the men’s downturn is competition is fierce and this had lead to a discount environment. People know they can wait for the sale or search the internet for a discount code. This makes margins smaller for companies which then need to sell even larger volumes. We’ve also seen growth in companies like TK Maxx that offer people the brands they want, but with heavy discounts.
Fashion has changed too. It’s very sportswear/dress down driven. These are cheap or old clothes. Looking ‘expensive’ has gone out of fashion. Brands like Balenciaga and Gosha Rubchinskiy have pioneered this style of fugly fashion and while not cheap they have prices that are more realistic and attainable.
Millennials are all about ‘experiences’ and are less materialistic, or so we’re are told. All those selfies tell a different story, but I think they want to eat out and wear something new, which ultimately means spending less. This big group of young consumers is squeezed by rents, student loans and low wages and this isn’t going to change for the foreseeable future.
In the Evening Standard on Monday, Net-a-Porter/Mr Porter boss, Alison Loehnis, said when they measured “zeitgeist buying” in the Mr Porter team they discovered the number one item was socks. “Followed by Ray-Bans and trainers.” Socks?!! Now, that is worrying. Unless Mr Porter is selling hundreds of millions of dollars worth of socks, which I doubt, then it’s a signifier of the market. It’s too expensive and they are the cheapest things they sell. It’s also one of the main gifting items and something you don’t need to try on.
Online is still only 10% of the retail market so has huge potential, but that still means 9 in every 10 pounds is spent on the high street.
Net-a-Porter/Mr Porter call their top customers ‘EIPs’, (EXTREMELY IMPORTANT PERSON) and these EIPs are the two per cent of customers who account for 40 per cent of NAP revenue. It’s dangerous to have all your eggs in a few baskets, particularly a fickle customer which many others are chasing. They’re now offering a service where the driver waits while these EIPs try things on. It’s a gimmick, but at least it shows they’re trying. These EIPS are the people shopping in Selfridges and Harrods too, while the rest of us have seen our wage packets shrink or not go as far and designer prices continue to rise. #Brexit will make imports to the UK more expensive, temporarily, but fashion will just find somewhere cheaper to make it, but it’s true the weakest wont survive this price hike or margin cut.
Brands have been trimming the fat over the last few years and many are down to the bare bones. The recent christmas was good for retailers and I think that kept many afloat, for now.
Jaeger just announced its bankruptcy. I don’t think there’s much hope for it to survive as it is, but it’ll become a brand within Edinburgh Woollen Mill or the like. It’s the sign of the times and also the cycle of brands. There are times when a brand runs its course and no matter how much investment or time, it’s just time to let it go.
Okay, enough doom and gloom. On a positive note from a down you have an up and when a gap appears something new will come into fill it. But, our addiction to cheap clothes isn’t going anywhere which will make it very difficult for new, smaller brands or labels to compete. I think short term we’ll see more closures and less choice or a choice masked by the fact it’s a sub brand from a big retailer. H&M is just about to launch Arket.
One thing is for sure, fashion is unpredictable and that’s why I love it.