The Price Is Right

from style in progress 2/2018 – English Edition

Curating, Not Selling

IT’S ALL ABOUT THE MIX Elena Schmuschkowitsch, owner of Roman’s Berlin. “It has always been my intention to supplement the higher-priced brands with less expensive ones. These collections may be smaller and less advertised, thus they have a different price structure. The mix and styling factor are our strengths. However, my primary concern is not to address a new type of customer by adding lower priced labels. The aim is to offer our existing customers a good mix. They don’t always feel like spending money; I believe that price awareness has increased. A customer may buy one expensive piece and would then be happy to find a cheaper item to combine it with. The flip-side is that such a customer could get used to spending less money for an overall look. We retailers must make the right suggestions. We need to explain the reasoning behind expensive collections, because special quality has its price.”

PERSONAL RELATIONSHIP Dagmar von Schmaus, Rosa & Me. “There will always be customers willing to spend money on premium brands. It is vital to create a shopping experience defined by individual presentation, product quality, and authentic advice. One should always remember what distinguishes one’s own brand, stay true to its style, and pass on that feeling to the customer in a passionate manner. A personal relationship with the customer is crucial, especially for smaller premium brands such as Rosa & Me. If you are passionate about what you do, the customer will notice and feel well cared for. This is very important in terms of brand loyalty.”

PICK UP THE CUSTOMERS Sandra Lemmich, owner of Mainglück Würzburg. “We definitely need a price underbody in our store! Our typical regular customer is happy when our outfits are assembled with pieces from several price ranges. We pay attention to this during the fitting, for example by avoiding the more expensive items at the start. We don’t want to frighten our customers. In this way, we succeed in ‘picking up’ the customer. The result is that she adores the look and is willing to spend a little more on some pieces. After all, we have convinced her of the value. We sell J Brand for 300 Euros and combine it with a shirt for 49 Euros. We also combine an expensive pair of leather pants by Arma with an inexpensive sweater. We don’t want our customers to feel like they need to be expensive. In addition, a few bargains in the shop window or on the stand outside might coax new customers into the store. They are thrilled when they find out that we aren’t that expensive. And we are pleased to welcome new customers who we can convince of the quality of high-priced items.”

CREATE DESIRE Roberto Ricci, CEO of RRD. “Every brand with a background story makes fashion statements. This is the only way to retain customers and to distinguish yourself - as a brand - from other suppliers. Our brand has its roots in the surf sector and therefore combines functional cuts with flowing silhouettes. We focus on straightforward design in combination with high-tech materials, thus conveying the DNA of RobertoRicciDesigns. Brands need to communicate their history and understanding of fashion to retailers and consumers. Consequently, stationary retailers need to perceive themselves as storytellers. They are required to utilise the background stories of the products and brands to create an experience that ultimately creates desire. The biggest advantage of stationary retailers is direct and personal customer contact. Consumers can thus learn more about a brand, both in terms of quality and functionality, as well as the origin of the brand itself. At the end of the day, the price only plays a minor role for customers. It is important that brands remain true to themselves and avoid undercutting their own products at all costs.”

SPECIALISTS REQUIRED Klara Moormann, MD Womenswear at Agentur Moormann. “No, it doesn’t always need to be expensive. When we speak of style, the claim must be fashionable, new, and of high quality. Fashion lovers will always pay the price of premium brands for a hip must-have item. I believe it’s dangerous to buy and rate collections based on price alone. The look is paramount, not the product. Underbody?!? I don’t think one requires a price underbody, but more specialists! They can be anything: new collections with a good spirit or with a good calculation… figuratively ‘the salt in the soup’. At the end of the day, it’s all about the mix.”

THE BRAND FACTOR

Marcel Melzig, Managing Director of ASH Germany

Distribution . “Many customers are willing to repeatedly spend a lot of money on a brand that they believe suits them best. Customers are often eager to make a statement with a certain piece. In this respect, the brand image is naturally an important factor. In this context, the logo and the brand it represents are particularly significant. One of the most successful strategies pursued by many luxury brands is to recruit and retain customers with less expensive accessories such as small leather goods, belts, sunglasses, or mobile phone cases. This ensures that they generate continuous revenue in a lower price category with a usually very high margin. Ultimately, this sidesteps the commercialisation of a high-quality brand portfolio while still supplementing the product range with less expensive products.”

QUALITY IS PARAMOUNT Cristian Cappozzo, Sales Manager at Antonelli. “Antonelli has always strived to embody contemporary, affordable luxury. To this end, our entire production process takes place in Tuscany utilising Italian fabrics and ingredients, as well as Tuscan craftsmanship. We stand for an international approach and have a real drive to expand. All this is reflected in the price, but always in proportion. For example, Antonelli offers silk blouses made of technical fabrics for 329 Euros. They are not only washable, but also boast a high standard in terms of fashion. A coat made of cashmere wool costs 889 Euros, while the prices for blazers start at 400 Euros. The quality is paramount! To achieve a high-quality look, one does not have to spend one’s entire salary or pay exorbitant prices. Antonelli ensures affordability by paying close attention to prices and calculations without losing sight of quality and style. Fashion always has its price, right?”

ON TOP OF THINGS

André Lösekann, owner of Brooks, Ozone,

and Lösekann in Bielefeld . “A few years ago, online shopping was the height of cool. It was very popular to order exclusive items from the US and England. We also launched an online shop a while ago. Today, online shopping is commonplace and normal. The same is - to a certain extent - true for vertically integrated concepts. They lack desire, merely satisfy needs, and offer everything in abundance. We have noticed an increasing willingness to spend money on items that are not infinitely available everywhere. Just think about Off White, for example. The teenagers and young adults only really wanted that one sweatshirt worth 500 Euros. They are also willing to do whatever it takes to lay their hands on a Stone Island jacket. Even in the premium sector, it is the task of every excellent multi-brand retailer to be on top of things. They need to stock the right pieces by the right brands and to take part in the action. Those who manage to communicate desires and to trigger the respective lifestyles and emotions, will reach the customers for whom the price plays a subordinate role. The brand environment has to be perfect, the product range mustn’t be watered down, the right goods have to come at the right time, and - last but not least - one needs a great, passionate team. If this is the case, then premium retailers can do extremely well.”

NO CHANCE FOR CHEAP Maja Eger, MD of Yippie Hippie. “Premium customers are concerned with a comprehensive price-performance ratio. They want to be able to see the value clearly, be it through material, quality, design, workmanship, or the level of fashion. Such consumers are not willing to pay astronomical prices, even if they could afford to do so. As manufacturers, we strive to offer a pricing structure within our price level. However, if one works - as we do - with good quality materials and produces cleanly, wants to offer retailers a good calculation, and deal fairly with manufacturing partners, then there’s no chance for cheap. We are aware that retailers face problems when they are required to order large volumes in order to even stock and maintain a certain brand. Unfortunately, this hits the smaller and medium-sized retailers hardest. They lack the limit for a diverse product range including new and smaller brands. That’s how they lose the flexibility that is so important to them.”