Origin Africa highlights apparel sourcing ambitions

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By Jozef de Koster for Just Style Magazine

Last year all eyes at Origin Africa were on host country Ethiopia as an emerging sourcing hub for international apparel groups. This year attention switched to the return of Madagascar to the apparel export stage, with the island nation off the southeast coast of Africa bouncing back after the US reinstated its AGOA (African Growth and Opportunity Act) beneficiary status in 2014.

The sixth and latest edition of Origin Africa attracted 180 exhibitors from 25 countries to Antananarivo, the capital of Madagascar, earlier this month.

The goal of this annual pan-African cotton, textile and apparel event is to focus worldwide attention on sub-Saharan Africa both as an investment and sourcing destination, helping to grow trade between African producers and international markets providing predominantly private label production.

And the timing comes as interest in sourcing from Africa is at an all-time high, with the region set to play an increasingly important role in the textile, apparel and footwear industry over the next decade.

This year’s host country Madagascar currently sits in fourth place behind Mauritius, Lesotho and Kenya when it comes to utilising AGOA trade preferences for exports to the US. The value of its apparel exports to the US surged 162% year-on-year to $48.98m in 2015, and so far in the first nine months of 2016 has reached almost double this amount at $90.16m.

Jaswinder Bedi, the chairman of ACTIF (African Cotton and Textile Industries Federation), which hosted the Origin Africa 2016 event along with the Madagascar Export Processing Zone Association GEFP, is convinced that Africa – and particularly East Africa – will become the next big apparel sourcing destination for Europe and the US.

He predicts global supply chains will be re-organised as growing demand for textiles and apparel in China and India’s domestic markets will mainly be met by local and regional production. This will leave an opportunity for Africa to take over part of Asia’s global catering role. A great prospect indeed for a continent with a young population that is growing faster than in any other region in the world.

Brian Mandt, senior economist at the International Textile Manufacturers’ Federation (ITMF), recently pointed out that by 2035, the working-age population in Sub-Saharan Africa – more than 900m people – is expected to be as large as China’s today. Labour-intensive industries like apparel will attentively observe the development of this massive labour pool.

A land of opportunity

Not surprisingly, Madagascar’s President Hery Rajaonarimampianina described the Indian Ocean island as “a land of opportunity.”

But he did not refer to the troubles in 2002 and 2009, when political and social unrest brought the country’s apparel industry to a standstill and eventually resulted in the loss of AGOA eligibility from 2010 to 2014.

Instead, he reminded delegates that before 2009, Madagascar had annual apparel exports to the US of US$300m and was the second largest AGOA exporter after Mauritius.

And he said the country is now rapidly returning to its former top position. Since the country’s AGOA eligibility was restored in June 2014 following the formation of the country’s first democratic government, 35,000 new jobs have been created thanks to AGOA exports.

The president of the Republic also announced that 200,000 new textile and apparel jobs are likely to be created in the next five years, with one of the government’s key contributions being the facilitation of a large Malagasy Textile City.

International comparisons

Thanks to the presence of apparel industry insiders from many different countries at Origin Africa, a lot of information was available on how the local industry compares with its international competitors.

The South African entrepreneur Eugene Havemann, CEO of Madagascar Clothing Manufacturers, has garment factories in both South Africa and Madagascar. “I can’t achieve in South Africa the level of efficiency and quality I get in Madagascar,” he says, praising the superior dexterity of Malagasy garment workers.

Comparing the risks of doing business in Madagascar and emerging supply country Ethiopia, Craig Van Wyk, sales manager at Freudenberg Performance Materials, estimates that business risks in Madagascar are smaller than in land-locked Ethiopia where all exports and imports depend on the port of Djibouti. One single terrorist attack could cut the lifeline of Ethiopia’s economy, he notes.

The Bangladeshi business analyst and media consultant Mehdi Mahbub sees lots of similarities between Bangladesh and Madagascar. Problems in the Bangladeshi apparel industry are even worse than in Madagascar, he says, and yet Bangladesh is the second largest apparel exporter in the world. So Madagascar should not under-estimate its growth ambitions.

Yvonne Heinen-Foudeh, marketing and communications director of Gerber Technology for Europe, The Middle East and Africa, doesn’t think Madagascar’s low labour costs of around US$70 per month mean the Malagasy apparel industry will invest less in modern technology than competitors in higher wage countries.

Foreign customers want to communicate efficiently with their suppliers and thus will give preference to CAD-CAM equipped Malagasy suppliers. Also, apparel investors in Madagascar from Mauritius, China and India tend to install the same level of technology here as in their home-factories.

African entrepreneurs

Another focus of Origin Africa was to highlight the potential of female entrepreneurs.

While the majority of decision-makers in large African apparel companies are men, women mostly run SMEs such as small design or handicraft companies. But thanks to the She Trades Initiative of the Geneva-based International Trade Center (ITC), micro and small businesses are being helped to grow into small brands.

A number of female fashion designers got the opportunity to show their creations in a collective stand at Origin Africa, together forming an amazing, colourful group of motivated entrepreneurs, all aiming at impressing the world with their ‘African’ spirit.

Two stand-out examples included the Rwandan fashion designer Candy Basomingera (label ‘haute baso’), who proudly explained that the political and administrative elite of Rwanda now seems to understand the huge image-building potential of national fashion and is ready to support this creative industry. And Nairobi-based fashion designer Anyango Mpinga, whose ambition is to build a globally famous luxury brand based on collections that will always tell captivating stories about Africa.

Matthijs Crietee, general secretary of International Apparel Federation (IAF), assessed the fashion offer at She Trades and its first Project Upscale design competition. He couldn’t resist expressing his admiration for the women designers who are trying to force their way into global supply chains without giving up an inch of their African originality.

Author: Jozef de Koster.

Is E-Commerce Really Better For the Environment Than Traditional Retail?

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by BY EDWIN JIANG for Business of Fashion

While online heavyweights are quick to boast about the environmental impact of e-commerce, this holiday shopping season millions of eco-conscious consumers face a largely unanswered question.

NEW YORK, United States — As the gift-giving season ramps up, so too does the battle between brick-and-mortar and digital retailers for holiday dollars. But given that consumers play an increasingly crucial role in the effort to combat global warning, is e-commerce or traditional retail greener?

Online heavyweights are quick to boast about the environmental benefits of e-commerce. On its site, Amazon declares: “Online shopping is inherently more environmentally friendly than traditional retailing.” While conventional knowledge might suggest so, several studies published in recent years indicate that the reality might not be as black-and-white as Amazon claims.

The carbon footprint (greenhouse gases emitted as a consequence of an individual’s activities) generated while shopping is dependent upon a range of factors, from IT infrastructure and packaging to vehicle emissions. For instance, brick-and-mortar shoppers in the cycling-friendly Netherlands may yield lower carbon emissions per person than in the American Midwest, where people are more dependent on their cars.

Unable to account for every particular hypothetical scenario, researchers have studied consumer patterns through the use of the following archetypes:

The Traditional Shopper

The Traditional Shopper is one whose shopping journey is conducted entirely in-person, from search to purchase to return. With no use of e-commerce, the Traditional Shopper represents a shrinking demographic. According to research from MIT’s Center for Logistics and Transportation, customer travel accounts for more than 75 percent of greenhouse emissions in this wholly-offline process, yielding approximately 3.1kg carbon dioxide per journey by the average Traditional Shopper in an urban centre.

More minor emissions come from packaging and the overheads of displaying goods in-store, as well as returns. According to Accenture, apparel will account for 78 percent of gifts in the US during the upcoming holiday, making returns a significant factor. While an optimised parcel pick-up for an online return yields a minimal contribution in greenhouse emissions, an individual physically driving back to the store is much worse for the environment.

The Cybernaut

The Cybernaut’s shopping journey is conducted entirely online: from researching products to payment, to arranging a return.

Despite the proliferation of e-commerce across the retail landscape, Deloitte’s research shows that only 12 percent of US consumers are not planning to visit any traditional retailers during the holiday season.

According to Dr. Alexis Bateman, director of the Responsible Supply Chain Lab at the MIT Center for Transportation and Logistics, “Major emission factors [for the Cybernaut] include greater IT infrastructure to support computing, [which supports] e-commerce, [and] increased packaging in some cases.”

Nevertheless, by completing all steps online, the Cybernaut bypasses travel to and from stores, greatly reducing greenhouse gas emissions, and yielding a carbon footprint approximately 50 percent lower than that of the traditional shopper.

The Modern Shopper

While the above two models represent pure paths for the consumer, they are archetypes that fail to accurately reflect the majority of shoppers.

Engaged in an omnichannel experience, the Modern Shopper represents a hybrid between the Traditional Shopper and the Cybernaut. For this archetype, the research process might involve both brick-and-mortar and digital stores, before ultimately making a purchase online.

In a bid to counter the rise of e-commerce, many physical retailers are making efforts to increase foot traffic. But unfortunately for both them and the environment, more people in-store does not translate into a higher transaction rate. Deloitte’s research predicts that 48 percent of US consumers will check out products in a physical store before actually buying online.

The route to purchase is rarely a direct one, however. In the past, there was only one touch-point — the point of transaction — but today, consumers interact with retailers in multiple ways both offline and online, blurring the lines between entertainment and intent to purchase.

“Unfortunately, there is no straight answer to the question whether online or in-store shopping is better to the environment,” says Dr. Patricia Van Loon, a research fellow at INSEAD’s Social Innovation Centre and senior researcher at Viktoria Swedish ICT, a non-profit research institute that is part of RISE Research Institutes of Sweden.

Dr. Bateman echoes this remark. “E-commerce has lower total emissions because customer trips are greatly reduced. But there are caveats to this,” she warns. “Each situation is unique, so you can never really say e-commerce is always better for the environment.”

By participating in the process of “showrooming,” for instance — trying a product in-person before buying online — the Modern Shopper increases their carbon footprint in transportation, offsetting any deductions related to the ultimate e-commerce purchase.

“Associated physical trips by consumers can add significant amounts of carbon to the online purchase,” says Dr. Van Loon. “Picking up items after a failed delivery or a click-and-collect point, returning unwanted items, or other complementary shopping trips all increase the carbon footprint.”

According to MIT, transport-related greenhouse gas emissions for the Modern Shopper account for over 1kg of carbon dioxide emissions (over a third of the shopper’s total carbon footprint).

Modern delivery methods pose a significant toll on the environment too. In 2005, when Amazon introduced its ‘Prime’ membership, offering free two-day shipping on all eligible purchases for an annual flat rate, such rapid delivery was still novel. Since then, Amazon has amassed about 63 million Prime members globally, according to Consumer Intelligence Research Partners, and in major cities, free two-day shipping has become nearly as commonplace as online shopping itself.

The proliferation of high-speed delivery is not without environmental impact. This season, three-to-four-day shipping is not sufficiently “fast” for US shoppers, according to Deloitte, and they expect lower fees for expedited delivery — shifting consumer expectations and giving rise to the Impatient Modern Shopper.

“Obviously, same-day delivery and tight delivery slots make it more challenging for the delivery company to combine shipments in the same neighbourhood,” explains Dr. Van Loon. “It therefore increases the distance driven per item and consequently the carbon footprint.”

Indeed, the extra emissions of expedited freight transportations account for a nearly 0.75kg increase in carbon dioxide emissions per shopper, more than double that of non-expedited delivery methods and enough to offset the green benefits of not travelling to a physical store — rendering the Impatient Modern Shopper archetype the least environmentally friendly of the four.

The Bottom Line

For those who are serious about reducing their carbon footprint this holiday season, Amazon is right: the numbers show that e-commerce is better for the environment — as long as the entire process remains digital from start to finish. But this path might not be feasible for many consumers.

Consumers who find it necessary to purchase in-person can greatly reduce their carbon emissions by “webrooming,” or researching online. This shopping process emits only approximately 0.2kg more carbon dioxide than conducting the entire journey digitally, so even those who purchase at a brick-and-mortar retailer can cut their environmental impact by up to 50 percent.

The most green holiday shopper is digitally-savvy, researching and purchasing online well in advance — avoiding next-day or same-day delivery. They opt for eco-friendly packaging wherever possible, and if they do need to visit a brick-and-mortar store, they will coordinate shopping trips with other errands, reducing the total distance travelled by vehicle. Perhaps most fundamentally for the green holiday shopper, they also understand that what and where they buy is as important as how they buy it.

“Some of the biggest sources of environmental impact actually lie upstream in a supply chain (materials and producer level),” says Dr. Bateman. “So purchasing products from responsible companies can actually lead to some of the biggest savings, over online versus brick-and-mortar purchasing decision.”

Weaker Mr Price pins hope on Christmas sales

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Author : Liesl Peyper for fin24.com

A difficult trading environment and a late start to the winter have put pressure on Mr Price Group’s [JSE:MPC] financial results posted for the 26 weeks ended 1 October 2016.

The share price reacted negatively, dipping 2.88% to R129.85 in late afternoon trade.

In a statement to shareholders, the retailer, which sells apparel, homeware and sportsware, said its interim dividend of 228.2c per share is down 8% from the corresponding period in 2015.

Diluted headline earnings per share (Heps) were 351.2c – down 13.7% from the corresponding period in 2015, while normalised operating profit dipped by 4.2% to R1.3bn.

Total revenue grew by 1.5% to R9.2bn with retail sales increasing by 0.4% to R8.6bn. Cash sales climbed by 1.9%, which represents 82.6% of total sales, but credit sales took a knock, declining by 6.2%, due to the introduction of stricter credit regulations through the National Credit Act implemented in September 2015.

The Group’s other income, derived from its financial services division, MRP Money, increased by 27.9% to R543m, driven by and large by cellular sales, which increased by 73.9%. Insurance and debtors’ interest and fees improved by 9.4%.

Mr Price Group’s CEO Stuart Bid said MRP Apparel, which accounts for 59.3% of the Group’s sales, and Miladys performed “well below” expectations.

He ascribed this to the poor economic environment, revised credit-granting regulations, the late arrival of winter weather and higher prices caused by the weak rand.

“We should have taken winter markdowns earlier,” Bid said, “and our assortments and marketing should also have been more focused on value rather than fashion in this climate. A drive to enhance our value offer is currently being implemented by the merchandise teams at MRP.”

MRP Sport on the other hand posted stronger sales, which increased by 13.3% to R634.5m, which is regarded as a good trading result amid difficult conditions.

MRP Home increased sales by 1.6% to R1.6bn, while Sheet Street grew its sales by 4% to R680.3m. Both chains delivered “sound profit growth”, the Group said in its statement.

Despite the tough economic environment, Mr Price Group’s balance sheet remains healthy. Free cash flow generated increased by 8.1% and cash resources were R1.1bn in the 26 weeks ended 1 October 2016.

The provision for impairment of the debtors’ book of 7.4% is “comfortably ahead” of the net bad debt rate of 5.8%.

“We expect trading conditions to remain difficult in the second half with no relief in sight for the embattled consumer,” Bid said. “Much will depend on the Christmas trading period and when the major sales of summer merchandise in the apparel sector start.”

by Liesl Peyper for fin24.com

Clothing retailers: little Christmas cheer

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By Ray Mahlaka for Moneyweb

Consumer spending remains in the doldrums in SA, with rising living costs increasingly weighing on purse strings.

This has been evident in the poor sales updates posted by major retailers –  with the clothing category showing more strain than food.

In the second quarter of this year, real (inflation-adjusted) household consumption expenditure – a key driver of economic growth – grew by a pedestrian 1% after a contraction of 1.7% in the previous quarter, latest figures from the Reserve Bank show.  Household consumption growth, which accounts for more than 50% of SA’s GDP, has muddled along since the 2008 financial meltdown.

At the same time, consumers’ disposable income continues to be eroded by a pile of debt from unsecured lending to store accounts, mostly felt by the lower-to-middle income segment that is also facing rising unemployment.

Underscoring consumers’ love affair with credit is that household sector debt-to-disposable income ratio has risen since 1995 from 57% to 76.6% for the first quarter of 2016 – it’s too high for comfort.

These are the consumer headwinds that retailers are up against as they attempt to eke out growth in a worrying economy that is growing at a glacial pace.

As Chris Gilmour, an investment analyst at Absa Wealth & Investment Management puts it: “Consumers are facing intense pressure. Their spending is under pressure, probably more than ever.”

Fashion retailers suffer

Fashion retailers are more vulnerable during tough times as consumers typically prioritise the spend on food rather than discretionary income-dependent items such as clothing, furniture and appliances.

Although most clothing retailers grew sales, this is undermined when stripping out inflation and effects of new stores, resulting in negative sales growth for many counters.

Even market darling Woolworths, which has long been shielded from gloomy retail times due to its wide range of merchandise that panders to different LSM groups, is starting to feel the pinch.

In a grim trading update on Friday, Woolworths’ clothing and general merchandise business increased sales by 2% but is negative when factoring its selling price inflation (a key metric to measure the price movement of merchandise) of 7% and new store space growth of 2.9% for 19 weeks of its financial year.

Sasfin Securities senior retail analyst Alec Abraham says Woolworths’ downbeat trading update was expected given consumer pressures. “Woolworths has held reasonably well because of its broad consumer focus. If you want to buy down, you can stay at the same store network. It also has high-end merchandise for higher LSM consumers,” Abraham tells Moneyweb.

Even retailers that mainly target middle to lower-end consumers such as Mr Price are feeling the pain. The no-frills retailer is feeling the pressure with pedestrian sales growth of 0.4% to R8.6 billion in the 26 weeks to October 1. Excluding space growth of 2.2% and selling price inflation of 11.4%, sales fell by more than 10%.

CEO Stuart Bird, who has been at pains to explain Mr Price’s poor showing, blamed an unseasonably warm winter and aggressive discounting by competitors for humdrum sales growth.

Bird says since April, its competitors have been discounting merchandise aggressively, sometimes by as much as 70% off the full price. Because of this, its competitors have profited at its expense.

The theory was that during tough economic times, consumers would trade down to Mr Price, putting the retailer in good stead compared to its competitors.

“Mr Price slipped on its niche of having fashionable clothes at an affordable price, but H&M and Cotton On have pushed into this space and are taking its market share,” says Abraham.

Credit sales

Other retailers have been hit by the turning credit cycle. The Foschini Group (TFG) and Truworths International, which have been traditionally reliant on credit sales, have been on the back foot due to the National Credit Regulator’s new affordability assessments, which seek to rein in reckless lending to increasingly indebted consumers.

TFG’s credit sales, accounting 40% of its total sales, grew by 1.4%. On the other hand, Truworths saw its credit sales (accounting for 70% of total sales) decrease by 1% for the first 18 weeks to October 30.

Clothing retailers have been benefiting from food retailers that have invested in price (the practice by retailers keeping prices low and accepting lower margins from fuel savings and supply chain efficiencies to remain competitive), resulting in consumers having more disposable income to buy clothes, says Abraham.

“Everything has against retailers,” says independent analyst Syd Vianello, adding that apparel retailers have run out of room to invest in price. “Retailers are moving to higher price points as their gross profit margins (a measure of profitability) are starting to decline. If this trend continues they are destined to make losses. Higher prices for merchandise is the new normal,” says Vianello.

There are few signs that there will be a recovery in the retail landscape even with the crucial festive season looming. As a staffer at a fashion retailer in Sandton City explains: “Christmas decorations at stores have been hung late, we don’t see much cheer this year.”

Author Ray Mahlaka for Moneyweb

Fashion Industry Reacts to ‘Devastating’ Trump Victory

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BY LAUREN SHERMAN AND CHANTAL FERNANDEZ for Business Of Fashion

Members of the fashion community, from Diane von Furstenberg to Hari Nef, share their immediate reactions to the US presidential election result, with many voicing defiance in the face of uncertainty.

NEW YORK, United States — After a clear yet shocking statement from the American electorate on Tuesday, many are struggling to come to terms with what a Donald Trump victory says about the current political sentiment in the country and what the future leadership of the controversial president-elect might mean for the United States and the world.

A large turnout in rural America and as well as a strong Republican showing in states Obama took in the last two cycles — Iowa, Florida, Ohio, Pennsylvania and Wisconsin — sealed the win for Trump, who is projected to get over 300 Electoral College votes. Come January, the Republican Party also will control both houses of Congress, which could have major implications for the government’s posture and actions, at home and abroad, where there was no shortage of shock.

BoF polled leading industry figures — and scanned social media — to glean their immediate reactions and better understand what they think a Donald Trump presidency might mean for the future of fashion in the US and beyond. Trump’s positions on immigration and trade are of utmost concern, as is the impact of his nationalistic demagogic rhetoric on the United States’s overall standing in the world.

Alex Bolen, CEO, Oscar de la Renta: “Fashion is an expression of the here-and-now, not yesterday, not tomorrow. Our fundamental job as designers is to suggest a way to dress that is an appropriate reflection our times, of the world in which we live right now. Last night, the American people expressed their strong desire for change. Fashion will need to react, in a likewise strong way, to that new mood. We look forward to the challenge.”

Steven Kolb, president and CEO, the Council of Fashion Designers of America: “I worry about his position on immigration and how it will impact the workforce of our industry from garment workers to design students who come here to study and want to stay.  I worry about the image of American brands abroad. I worry about his position on trade and how it will impact the supply chain. And I hope with all my heart that he can put aside his ugly rhetoric and bring the country together so all Americans can live their lives freely as they choose.”

Diane von Furstenberg, designer and founder, Diane von Furstenberg:  “Today is the first day of the rest of our lives…. We must believe that our future is in our hands . More than ever we must believe in good and the good of people. More than ever we must study, learn, be open minded, be generous and have compassion. More than ever we must be an example of good and influence the good. Whatever voice we have, we must use it to influence others so that our country celebrates what we cherish about it…its openness and inclusiveness.”

Julie Gilhart, creative business consultant: “It’s a shock but its now obvious that Trump’s election is an unmistakable rejection of a system that simply isn’t working for most people. Bill Cunningham use to say ‘fashion is just a reflection of our times.’ We have been seeing intimately in the fashion business the need for massive change and we will have to deal. It’s all a guess what the future will be for American fashion and the country as a whole but there are a couple of things to remember — first, it’s only four years and secondly, a setback is just a set up for a comeback.”

American fashion will lose some of its shine due to the shock of this election. But we will bounce back.

Tim Blanks, editor-at-large, The Business of Fashion: “Once again, it seems like winning the popular vote is no guarantee that you’ll take the top job. But the vagaries of the electoral college are just one of the ambiguities that will guarantee continued socio-economic instability in the US.  The others are too many to list. The new leader of the free world’s character flaws have been so thoroughly dissected, I’ll add only that when his dogma eventually collides with his karma, it’ll be hard times for all.  Which offers little encouragement to the fashion industry, especially when business is already as tough as it is. But in a less-than-ideal world, hard times can galvanise creativity. One word: punk.  And fashion’s a mirror, remember?  It’s going to have so damn much to reflect over the next two years (counting on something twisted happening in the mid-terms) that it could become a vehicle for a whole new depth of ideas, comment, engagement — or maybe just escape. Truth is beauty.”

Phillip Lim and Wen Zhou, co-founders of 3.1 Phillip Lim: “Today is a very challenging day here in New York City – our community is filled with shock and disbelief. There is an indescribable, unwavering somber cloud that is palpable through the streets, on the subways, and here in our own studio. However, we believe in the power of optimism and hope. Together, our desire is to unite with members of our team, the fashion industry and the country as a whole to move forward. We cannot let this election set us backwards, we will march onwards. We are undoubtedly stronger together.”

Garance Dore, via Instagram: “My vision of a progressive world, where women and men are finally equals, where racism is a thing of the past, where people of all color and religion and sexual orientation come together in a respectful way, where we work together to change a world and make it a place of healing, of care and attention for others and for our poor planet, that vision just broke down in million pieces at my feet.”

Brian Phillips, president, Black Frame: “I feel the creative community will be emboldened to look past commercial gains and focus more on what is good for humanity as well as what is beautiful and innovative. This is a contemplative moment that needs to propel us to stronger action towards real distribution of wealth and equality.”

Trey Laird, founder, chief executive and chief creative officer of Laird+Partners: “I believe America is resilient, and despite the uncertainty and divisiveness of this day, the country will have to move forward! The same holds true for American fashion. It’s about moving forward. Fashion reflects our times culturally and creatively, but ultimately it is also a business. President-elect Trump is a businessman, and my hope is that he will recognize the economic importance of the American fashion industry, and be supportive of trade policies and initiatives to keep it vibrant globally.”

Ed Filipowski, president, KCD: “I am overwhelmed with emails from clients and friends in the industry worldwide expressing shock and devastation at the outcome and concern of the effect on world markets and consequently our industry, particularly retail. But my reaction is much more human and instinctual, as to have been so proud to be living my adult life in America at such a liberal time to now anticipating a new order with underlying hatred, prejudice and no respect for the truth. And I really can’t bear the thought of that Kellyanne Conway in my face for four more years.”

Stephen Gan, editor-in-chief of V Magazine and VMAN and creative director of US Harper’s Bazaar: “We need to be strong, and continue what Hillary started. We at V have always believed in fashion as a force for affecting change, and making a difference in the world. We need to use this as a reason to work harder for the values we believe in, to be braver, and push ourselves even further creatively. With this election, we’ve seen some the ugliest behavior that this country has to offer. It’s our job now to remind people of how beautiful it can be.”

Shane Gabier and Chris Peters, co-founders of Creatures of the Wind: “This isn’t the first struggle, and it likely won’t be the last, but as Hillary said this morning, our nation’s best days are still ahead of us. We are hopeful for the country, and hopeful for American fashion. We all just have to stick together and move forward.”

Kerby Jean-Raymond, founder and designer of Pyer Moss: “Trump being elected just exposed how many people in this country have a strong disdain for the advancement of women, people of color, immigrants, Muslims, and the LGBTQ community. The majority of the people who make up the fashion industry are a part of these minority communities and will feel betrayed by this election. The progressive thinking, socially liberal people in this country are again the underdogs. For American fashion, it can mean a sharp decline in revenues as many try to evaluate their next steps and priorities. With Trump’s proposed sanctions on foreign import and repeal of NAFTA, businesses abroad might be a hesitant to pick up American brands. After the initial shock we are all feeling wears off, this can possibly normalise. It’s a scary time.”

Leandra Medine, via Man Repeller: “It’s my belief that the human spirit responds better to community than it does to resistance, so for a minute this morning, let’s set him aside. Let’s put our hashtags down and remember that we — a large, inclusive number of individuals — are in this together. That we have each other and that it has never been so clear why we need each other. Of course we won’t forget how far we’ve come, but we also won’t deceive ourselves into thinking it’s far enough. So hear, hear, to us.”

Andy Dunn, founder and CEO, Bonobos, via Medium: “I’m not saying you have to like it, but if you love this country, it may entail accepting this is the nature of things — that this dualism may be the engine by which this country, lurchingly and eventually, moves forward.”

Hari Nef, model, via Twitter: “I would never run for public office in a country so full of hatred for people like me.”

Jennifer Hyman, CEO, Rent the Runway, via Twitter: “This shows that this race isn’t about economic disempowerment- it’s about racism.”

Mazdack Rassi, co-founder, Milk: “I believe long term we will be ok. This is a major set back in policy. American fashion will lose some of its shine due to the shock of this election. But we will bounce back. We are still the most important market for apparel in the world. Our fight now is to control the damage for the next four years.”

Mortimer Singer, CEO, Marvin Traub Associates: “I believe there will be a short period of volatility but the US has the unique ability to dusting itself off and forging on.”

Mickey Boardman, editorial director, Paper, via Twitter: “I’m heartbroken but deep inside all I’ve got to fight with is a belief that we can achieve justice & equality for all. I got that and LOVE.”

Amy Odell, digital editor, Cosmopolitan.com, via Twitter: “This election is being characterized as a victory for white men but honestly how is it a victory for anyone. WHO is going to be better off?”

BryanBoy, fashion blogger, via Twitter: “Today, more than ever, we the minorities, women, LGBTs, blacks, muslims, Asians, need to rely on the media to defend us from white supremacy.”

Stella Bugbee, editorial director, The Cut, via Twitter: “Important to remember that a lot of people DIDN’T vote for Trump, even if the state maps on TV look so overwhelmingly red.”

Authors: Lauren Sherman and Chantal Fernandez

4 Ways You Can Use Big Data to Market Fasion to Millennials in 2017

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Authored by: Rehan A. Shaik for SmartDataCollective

Millennials are making a huge impact on the world. Since passing the Baby Boomers in population in 2012, it was forecasted that business practices needed to shift their marketing strategies soon. Well, ‘soon’ has arrived and by 2017, you’ll need to focus your marketing more toward this generation.

Big data is going to be a key factor in your practices, whether you own a registered office address online or physical location. It’s going to help you decipher through all the information to help with forecasting your marketing. Let’s explore the many ways big data can be used to market toward Millennials in 2017.

1. Big Data Helps You Identify Your Market

Essentially, big data involves compiling data about the consumers interested or currently purchasing products. To progress with your marketing strategy, and to get the most use from your big data, you’ll need to create a buyer persona. This is going to help you narrow down your customer base within the large group of millennials.

Since Big Data heavily influences the need to create a buyer persona, it’s one of the top ways it influences your marketing. You compile information and create this persona to see who your customers are and it’s going to influence many other aspects of your marketing.

2. Big Data Provides You with Trend Forecasts

Trend forecasts were originally seen in the fashion industry. However, the use of big data has given all niches access to this powerful tool. Using the information provided by your buyer persona, you’ll match that with some upcoming trends in your industry.

Whether you’re in the fitness, accounting or any in-between industry, these trends can be tracked in a similar way. Using social media posts, PPC and browsing habits, you can easily gather enough information to be ahead in your niche. Millennials are all about the “next best thing”, so a business can’t afford to fall behind on the times.

3. Big Data Helps You Balance Prices

Millennials seem to have some odd spending habits that have caused a shift in spending in the US. They love a bargain, but they are also willing to pay more for a quality item without a problem. However, with the internet at the tip of their fingers, they can easily find prices that make them content from either an online retailer or physical location.

Competing with others’ in your niche, you want to be as proactive with your pricing optimization. Big data uses a real-time merchandising system in its algorithm. This helps with understanding current price trends and helps you adjust appropriately to the price trends. For most businesses, big data has removed all manual labor processes such as this.

4. Make Final Sales with Big Data

Internet shopping has made it mandatory for every physical location to have an online presence as well. The entire experience should be flawless and easily mapped out for them when they shop at an online store. However, what if your customers can’t find their credit or debit card? If that’s the only option you’re giving them, it could potentially be ruining sales.

Big Data trends can help you utilize the most updated apps and widgets to help make your website as user-friendly as possible. No matter how much you market, if you don’t have the right payment options, you won’t make final sales.

Compiling information through the system, you can see just how far the customers get in their shopping experience. Where do they stop? If you notice they only add things in the cart but never go into the cart, this could identify that your shopping cart might be inconveniently placed. Alternatively, if they stop at the credit or debit card payment screen, it could mean you’ll need to add a program to help you.

Millennials are all about the experience when they’re shopping. So, knowing their problems and being able to provide solutions is the only way to build longevity within this generation.

Big Data Provides a Solid Marketing Foundation

The growth of technology and the internet have made it impossible for any one person to research for information on their business trends. There are big strategies you can steal from CEOs, which most require you to take advantage of the current internet tools out there. If your startup or small business has implemented a solid program for big data, it’s going to be a worthwhile expense to invest in.

Author  Rehan A. Shaik

H&M, Cotton On expose SA retailers on price, fashion – analyst

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By Matthew le Cordeur for News24

Cape Town – Stuttafords’ application for business rescue is a symptom of the local fashion retail industry, whose price points and fashionability have been exposed by international retailers entering the market.

Stuttaford’s decline after 158 years of trading was no surprise, 36ONE Asset Management retail analyst Evan Walker told Fin24 on Tuesday.

A significant consumer slowdown has been exacerbated by the rand fall-out, explained Walker. “That means higher prices for consumers, especially in branded goods,” he said. “The customer base has shrunk dramatically.”

However, he said the biggest issue facing retailers is that international companies like H&M, Zara and Cotton On have come on shore and have “exposed retailers on pricing and fashionability”.

“It’s horrendous,” he said. “If you go into H&M, you will see they are substantially better priced and more fashionable. They will grow exponentially.

“Going forward, the customer will either not spend or they will spend with international stores.”

 

Downward spiral

Walker doesn’t have a good thing to say about any of the retailers – from embattled Edgars to Truworths, the Foschini Group and Woolworths – who he says “are expensive compared to international guys”.

“Our domestic retailers are going to be in a downward spiral, as none of them have invested back in price,” he said.

“The South African retailers are stuck in the mode of trying to protect their gross margins at all cost to keep their share price at elevated levels,” he said. “The long consumer downturn will come back to bite them and they will lose to their global rivals.

“They understand the issues, but they are slow to transform,” he said. “They didn’t have a cold winter and so there was poor delivery.

“The pricing architecture is just too high,” he said. “We need a pricing architecture that reflects how tough the environment is.”

 

No man’s land

Within this tough market, Walker said that Stuttafords is “no man’s land”.

“Department stores globally have been struggling as the brands they stock have started their own stores,” he said.

“The internet has been tackling them quite furiously,” he said. “Department stores are not the place to be. They are very costly to run.”

“It is very difficult to attract customers, especially in the South African environment where credit has been so alluring,” he said. “Stuttafords did not have a sufficient balance sheet to offer that. They had no real part to play and were not able to offer extended credit.”

Walker said it is difficult to tell whether Stuttafords will be able to come out of this or whether they can reform their business into a fast-fashion option like H&M.

“That’s going to be a wait-and-see approach,” he said. “Stuttafords is a no-go show and has been in the eye of the storm. They are old dinosaurs that have not moved with the times.”

Private labels

Stuttafords CEO Robert Amoils acknowledged that private label and vertically integrated retailers were in a better position.

“The biggest challenge we’ve had as a retailer is the length and duration of our supply chain,” he told Fin24 on Monday.

“We’re acquiring product nine to 12 months out, which means we’re unable to immediately and/or in a short space of time reposition our stock holdings and/or brand offering.

“If you’re vertically integrated and able to control brands… it certainly holds you in good stead,” he said.

“We’ve started to invest more heavily in house brands. However, it hasn’t been a strong strategy of our business over the course of five years, but certainly one we’re going to reinvigorate going forward.”

Amoils said costs have been escalating particularly as a result of rand devaluation and local inflation.

“That created a double edged sword, where you have costs escalating and full margin turnover dropping,” he said. “We have also been subjected to a lot of fierce competition from international and local retailers that (where we) also had to discount and/or promote more aggressively.

“I still believe that South Africa has great retailers – both local and international – in the market and it’s a cycle that one just has to go through. Unfortunately, we were just caught unaware of the dramatic nature of the downturn and the impact it has had on us.”

Article written by Matthew le Cordeur for News24

To Lure Plus-Size Shoppers, One Retailer Will Scrap Plus-Size Department

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Meijer Inc. to integrate larger-sized clothes into main women’s racks

By IMANI MOISE for the Wall Street Journal
One big retailer is trying to reduce the stigma of being a plus-size shopper—and boost its apparel sales—by bringing larger sized clothing into the rest of the store.

Michigan-based Meijer Inc. will integrate its plus-size department into the women’s department, placing so-called straight sizes and extended sizes on the same racks. The concept, already in practice in 15 stores, will be rolled out to all 230 stores by early 2017. It means the majority of styles will be offered in everything from a size small to XXXL.

“We really felt all customers should have the exact same experience at Meijer,” said Annette Repasch, vice president of Softlines. “Not only by style, but by price and by location.” Traditionally plus-size sections have been relegated to the back of the stores and usually only offer conservative clothing, she added.
Plus-size apparel has been a bright spot in the retail industry during a time where customers are more likely to spend on gadgets and restaurants than clothes. The NPD Group estimates that plus-size apparel spending will reach $20.4 billion this year, up 17% from 2013 and is growing twice as fast as the overall U.S. apparel market.

The segment is poised to continue growing at a strong clip, especially as a new study by the International Journal of Fashion Design, Technology and Education found that the average American woman is now a size 16-18, up from the previous consensus of a size 14. NPD estimates that the percentage of teens buying plus-size clothes will reach 34% this year, up from 19% in 2012.
For Meijer, the transition means the chain will have to absorb some costs. Manufacturers often charge more to produce plus-size clothing because it requires more materials and more labor. “We aren’t getting any special prices from our vendors,” Ms. Repasch said. “We are averaging it out and internally taking those costs.” But the company anticipates saving on floor space.

The changes by mainstream fashion retailers could mean trouble for companies like Ashley Stewart Inc. that specialize in plus sizes. “For every retailer that comes in, there’s one that goes out,” said Ashley Stewart Chief Executive James Rhee. “Right now plus is getting a lot of attention, but the companies have to really commit to the strategy.”

Meijer rival Wal-Mart Stores Inc. is also changing how it prices some extended size clothing. For example, a checkered flannel shirt the retailer expects to be a hot holiday seller will be $8 in all sizes, said Deanah Baker, senior vice president of apparel for Wal-Mart. It used to cost $11.76 in extended sizes and $9.76 in smaller sizes.

One problem affecting brick and mortar, and one-stop-shopping companies like Meijer and Wal-Mart is floor space. “For every SKU that you add to plus size, that space has to come from somewhere,” Mr. Rhee said.

Earlier this year, H&M Hennes & Mauritz AB, pulled plus-size collections out of several New York stores. The Swedish fast-fashion retailer said it removed those sections because the company was expanding into new categories like home goods and the stores couldn’t dedicate enough floor space for all of its concepts. The collection is still available online.
This article was written by IMANI MOISE for The Wall Street Journal