Wednesday, June 20, 2007
ugly side of beauty
The glamorous world of fashion has turned, for the most part, to be business. Who is buying Chanel, Diane von Furstenberg, Juicy, and Versace? How can they appeal to customers? How can they increase sales? I’ve had a chance to meet many of the designers. Some, more down to earth (Diane) and some more out there (Versace), to answer this question.
At the end of the day they are all interested in how they can increase sales volume through trying to understand their customers more. What types of people buy these things? How much do they make? Do they go on-sale to improve sales? What are the long-term effects? And with me, the question is: How can they do make better decisions through analytics and economics?
That’s the ugly side of fashion. These designers have a rather expensive shop to maintain, and so do we. Having stores in on Fifth Avenue, Madison Ave., and in every glamorous place in the world costs at lot. What can they do to maintain their reputation without having selling out? High prices come with a need to be less myopic. Do you ever go on sale? Should you distribute yourselves through the luxury retailers or in more pedestrian places?
The answer is clear. Keep the prices high. Keep the distribution through luxury, and never go on sale (unless you have a shitty season).
We are selling self-esteem, here. Creating a class of people and a sense of elitism.
After a lifetime of studying labor issues, I find myself in the world of signaling and consumer analytics. What is the value of “feeling fashionable” what is the value of self-esteem through things? I’m finding it’s pretty damn high. It’s fascinating.
At the end of the day they are all interested in how they can increase sales volume through trying to understand their customers more. What types of people buy these things? How much do they make? Do they go on-sale to improve sales? What are the long-term effects? And with me, the question is: How can they do make better decisions through analytics and economics?
That’s the ugly side of fashion. These designers have a rather expensive shop to maintain, and so do we. Having stores in on Fifth Avenue, Madison Ave., and in every glamorous place in the world costs at lot. What can they do to maintain their reputation without having selling out? High prices come with a need to be less myopic. Do you ever go on sale? Should you distribute yourselves through the luxury retailers or in more pedestrian places?
The answer is clear. Keep the prices high. Keep the distribution through luxury, and never go on sale (unless you have a shitty season).
We are selling self-esteem, here. Creating a class of people and a sense of elitism.
After a lifetime of studying labor issues, I find myself in the world of signaling and consumer analytics. What is the value of “feeling fashionable” what is the value of self-esteem through things? I’m finding it’s pretty damn high. It’s fascinating.
# posted by otas : 8:40 PM
