WHAT'S THE STORY 39
they can choose between many ways to spend money: game consoles, smart phones, and travel to name but a few. They have less money for fashion. Retailers need to react to that. Do you believe there is a gap between the perceived correct price for your product among consumers and retailers?
One cannot generalise in this respect. An excellent retail business is ideally a brand in its own right and creates trust. Such retailers know their customers and what price they are willing to pay. However, it goes without saying that a quality shirt for 79, 89, or 99 Euros sells quicker than a shirt for 139 or 149 Euros. Only retailers who realise this will be able to generate customer growth.
With Fil Noir, Heiko Storz has ventured into a market that everyone believed to be saturated. Which product range really needs yet another premium shirt? Many, if the premium shirt is as convincing as Fil Noir. Text: Martina Müllner-Seybold. Photo: Fil Noir
Retailers are opening up to a new entry-level price segment. Many considered products offered at an excellent price-performance ratio to be “too cheap” for their respective product ranges. Today, shirts for less than 100 Euros are accepted gratefully. What has changed?
Most retailers are surprised by our entry-level price of 79.90 Euros. Even more so, because our products are manufactured exclusively in Europe. We can offer such a price, because we are a small team and calculate very carefully. We are therefore in a position to offer a quality product at a fair, democratic price. This is part of our success. The sales performance of Fil Noir speaks for itself. In my opinion, the biggest change took place in the majority of consumers. They are better informed, aware, and versatile. Unlike in the past,
Customers buy more regularly throughout the year, but they don’t spend more money on fashion. What has caused this development?
The consumer is complacent and the wardrobes are full. Retailers now need to lure customers; one way is to convince customers with great products. Honest products with a fair price-performance ratio are popular, mainly because an increasing number of customers - especially those who shop at specialised retailers - are interested in origin and production. “Made in Europe” is becoming an increasingly important selling point, because most customers are well-informed and consume consciously. The look is naturally still paramount, but if the price includes a feel-good factor, this has a positive impact on the purchase decision. What’s your take on how consumers will perceive the premium price segment in the future? Is a shirt that costs more than 100 Euros a luxury item for a generation that grew up with Zara and the like?
Fuelled by media channels such as social networks and influencers, the next generation will be characterised by fast consumption. Products that are on the catwalk today and on Instagram tomorrow, need to be stocked by the large, well-known chains at a price that’s affordable for most shortly thereafter. Thanks to the
Internet, the world has arrived in every living room, even out in the sticks. This fuels the “greed” in terms of latest trends. Once the trend is over, the clothing is discarded, possibly even binned. But customers - and the future generation - are well-informed and capable of comparing at a high level - beyond the price. The awareness of environment, fair trade, and production, as well as for excellent, original products, is on the rise. Product specialists who offer a good product, that is manufactured fairly and at a reasonable price-performance ratio, and who remain true to themselves will be among the winners. On the other hand, brands seeking quick profits while asking too high prices for products that are comparable or arbitrary will struggle.
What does a manufacturer need to do to in order to improve price-performance ratios? How much effort does it take in your case to ensure that your prices don’t rise too much while still maintaining the required excitement, innovation, and value within the product?
I travel throughout the year to secure favourable agreements with our fabric suppliers. I evaluate our production sites several times a year. Other essential factors include creative product design, refined and subtle details, and excellent washes - always within our brand core. We remain true to our beliefs and never lose sight of our distinguishing features. Last but not least, we remain realistic and don’t pursue excessive profits. The latter is ultimately the biggest threat to a brand.
Where is the pain threshold in your segment? What can be explained? What is a sky-high price?
From 129 Euros upwards, the air is quite thin. Above this price level, you no longer deal in large quantities. style in progress 218
