No Season

Pre-collection, main collection, and post-collection - the rhythm has increased significantly. Furthermore, there always seems to be a sale somewhere, additionally fuelled by the prevailing order/delivery cycles. How could the scheduling be reconsidered and managed to ensure that fashion retailers don’t turn into permanent outlets? Text: Nicoletta Schaper. Illustration: Claudia Meitert @Caroline Seidler

The day before the opening, Kastner & Öhler’s new branch in the Austrian city of Ried presents itself in the best light. The goods are on the racks, the decorations are in place, and the fashionable looks are presented on the sales floors attractively. “At this time, one can see so much in the product range”, says Alexander Petrskovsky, the executive responsible for fashion and human resources. The retailer turned quite a few screws for its newly developed store concept, and one of those screws was the product range itself. The range focuses on fewer brands and less classics, but concentrates on more dominant fashion topics, complemented by many accessories and non-fashion items as in the concept store. “We want to present our goods in a more covetous manner, with flair and excitement”, Alexander Petrskovsky explains. “This also means that we will not always throw new products straight onto the sales floor, but inject them gradually in order to be more in line with demand. This may mean a lot more work for us, but it’s the only way.”

Scheduling Illogicality Bikinis in December, thick down jackets in July - what sounds completely absurd is often the reality in terms of deliveries and

Alexander Petrskovsky, executive for fashion and human resources at Kastner & Öhler: “The ideal-typical season simply doesn’t exist. The retail industry often can’t know what it needs and when. Instead, retailers can only rely on a combination of gut instinct and empiricism.”

at the PoS. It’s fairly pointless to deliberate how this scheduling illogicality came about. Every retailer has a different view of when the time is right for a certain product and the weather does what it wants anyway. However, it is clear that the old rhythm - two pre-orders per year for three delivery dates every half-year - is hardly sufficient for a successful business. The fifteen fashion branches of Kastner & Öhler now also have a large proportion of collections with twelve delivery dates, primarily from the young fashion segment. “But the problem remains the same: I am forced to order at a time when I have no idea about the demand at the point of sale”, Petrskovsky adds. “Customers now buy a lot more need-oriented, but I still need the same lead time of mostly four to six months. It seems as if the fashion industry and retailers are still bound to the long-standing, established structures.” Michaela Schirlbauer, the driving force behind Misc in Salzburg, has also realised that her customers increasingly base their purchasing decisions on their actual needs. They want to buy a pullover when it’s cold and a summer dress when it’s hot. Last summer, when it was unusually hot, the dresses that were ordered in August last year - and were only delivered in July on Schirlbauers request - were a perfect match for the hot temperatures. Not a single dress was sold at a reduced price. Schirlbauer relies on a Scandinavia-inspired product range with smaller, individual brands and her rhythm is classic. She has adapted to the existing rhythm. “I normally ask for the spring/summer goods to be delivered on February 15th at the earliest. It’s pretty quiet in Salzburg in January and February, which makes it difficult to pay large bills then”, she explains. “Most companies deliver earlier than I’d like, but they often show me goodwill in terms of payment conditions. But sometimes it doesn’t work out, mainly because smaller brands have to rely on early deliveries to cover their advance financing swiftly.”

American Denim So far, the Brama Gallery agency only handles US brands such as Current Elliott and Mother Denim, which are, in line with American principles, delivered on a monthly basis. They provide jeans collections with an increasing proportion of tops. This allows a monthly flow of goods, plus a “Bestseller on Stock” option that allows repeat orders. Since the opening of the Düsseldorf branch in July last year, the agency has won more than 250 customers in the German-speaking markets, which is quite an achievement. The success is not only based on

Markus Funder, head of design and production at Better Rich: “There are a lot of smart people out there who place a repeat order shortly after delivery. They minimise the risk on their side by focusing on the best-selling items.”

the renowned brands, but also on the advantages of the order/ delivery rhythm. “At first we had to talk until we were blue in the face, mainly because our system confused and unsettled many retailers”, explains Janine Knizia, who manages the German showroom. “However, we proved on the floor that the goods supply over months does not only lead to a constantly exciting store image, but also means that the bills are split. These are benefits that our customers now recognise and appreciate.” This concept leads to less product-related pressure for retailers and less financial pressure. However, it also leads to more effort and warehouse management in terms of distribution. A company the size of Brama, with a large, Europe-wide warehouse at the company headquarters in Modena for all agency labels, can handle this pressure easily. The order rhythm at Brama is increased with pre-collections; goods ordered by customers in August, can be introduced to the sales floor as of October. But how do retailers deal with two order dates per season? “In Paris and Modena, Brama customers readily come to the showroom

for pre-orders and main orders. Nobody questions that approach”, Janine Knizia says. The German-speaking markets are different in this respect.

Janine Knizia, agency manager at Brama Gallery Germany: “Our faster rhythm system allows a close customer relationship; we are constantly talking. However, the concept cannot be applied to everyone, mainly because it requires appropriate production capacity and storage.” “I simply can’t afford to travel to order again in May and October”, says not only Michaela Schirlbauer. “In May, retailers already start the sale period, which means it doesn’t make sense for distributors to approach them”, Janine Knizia explains. Retailers often lack the budget and perceive the sale window as too small. The pre-collection principle can therefore only reduce product-related pressure when the retailer reorganises and when the minimum quotas aren’t too high.

Reorganise - But How? Old structures cannot be dismantled easily. “If you think vertically in terms of retailing, the no-season concept has already established itself”, says André Berger, the managing director of the Handstich brand. “The liberality that this affords the retail industry is, however, incredibly complex. When does one really see a season-competent presentation on a sales floor? If we speak about how important individuality is, then every retailer should want something else. If, for instance, warm jackets make sense on the sales floor of a specific retailer in July, this doesn’t necessarily make sense for other retailers in the city.” The sportswear topic is currently not an easy one in general, not least because of the large supply - as in virtually all product groups. “Our jackets are all-season products and can be worn all year round. We would like to supply the retail industry with smaller packages, but retailers usually don’t have a limit for such an approach”, Berger explains. “Nonetheless, we need the courage to focus and create exciting impulses. More often, we hear retailers saying that there are less and less seasonal cashcow products; instead, the sum of all parts is what rakes in the income.” Instead of mega-trends - when did we have the last one of those? - there are endless smaller trends, which negatively affects the planning security of both producers and retailers. If you focus on an individual trend, you have to drop others. “The industry has an understandable problem with strongly believing in a trend and reproducing it in the retail space”, Alexander Petrskovsky confirms. “The willingness of the retail industry to cut back the pre-orders, and subsequently trust that the producers supply new products in the short-term, is still very expandable.”

Head and Gut Many collections now work with an increased rhythm than the conventional method. Examples are brands that have their own retail operations, as well as product specialists such as cashmere collections or shirt suppliers. The same applies to Better Rich. Helmfried Strupat and Markus Funder have established a casual shirt/sweat collection that relied on four order and delivery dates

Thomas Acksel, owner of Franz und Emil: “If I only receive t-shirts, which I was promised for June/July, at the beginning of August, then I have to consider how I can transfer the remaining items into the next season or how I can get rid of them. In this case, the sale period is far too short.”

right from the start. “With this three-month rhythm, we keep the risk manageable and are more focused on the season itself”, Markus Funder explains. “What is ordered for summer at the beginning of August is in the stores at the beginning of November. Many retailers would like to order autumn products in November, which would be in the stores in six months. But if I am closer to the season, I can react to short-term changes even better. This means I am more on the safe side.” Markus Funder believes that the budgeting within the retail industry has improved. “However, many are still surprised by the volume of products they have left in the sales period.” Can an increased rhythm counteract discount Michaela Schirlbauer, owner of Misc: “I prefer one order date per season, with an opportunity to reorder when necessary. I find intermediate collections unnecessary for my concept.”

sales? Markus Funder believes it can, as long as it is organised correctly. “We don’t drown anyone in goods and are happy when a retailer has assessed goods and volumes realistically. But the easiest way to avoid discount sales is with enthusiasm and sensitivity. A little arithmetic helps enormously, but ERP systems are merely an auxiliary tool. Head and gut feeling belong together.”

Curry Sausage and Sushi This also calls for more flexibility within the ongoing season. Thomas Acksel, the driving force behind Franz und Emil in Dresden, became a fashion retailer after a career change. He opened his menswear store with an online shop approximately one and a half years ago. He nevertheless seems to make the right decisions for his concept quite instinctively. “I use 20 to 30 percent of my budget for the pre-order. I try to pick out the cherries, especially highly fashionable items”, he explains. “When the goods arrive, I see what is popular and then reorder accordingly. Otherwise my risk would be too high.” The items that can’t be shifted despite all efforts are sold at the Kickoutparty when the season ends. The party involves curry sausages, sushi, and a Dresden-based rock & roll band. However, almost half of the products in the store are items that Thomas Acksel doesn’t reduce out of principle, such as Redwing Boots or jeans by Levi’s Vintage and Momotaro. “It’s not possible to not reduce the price of jeans at all, mainly because some cuts change and one is too comparable online”, Thomas Acksel says. Generally, he would like to see delivery dates respected more often, which already works perfectly in cooperation with smaller Italian brands. “Shorts at the end of August, instead of the beginning of the month, don’t make sense to me at all, but, especially with larger agencies, I can’t rely upon fixed delivery dates. I would like to have fixed and reliable delivery dates, then I could also plan collection events instead of the Kickoutparty, which would allow me to promote new goods.”

Missed Opportunities? There is no ideal solution in terms of scheduling management as a tool against permanent sales. “It’s more about raising awareness and establishing partnerships”, André Berger says. “In the future, it will be even more important for retailers to plan the season with selected industrial partners as soon as possible. But one has to take a different approach with every brand.” Markus Funder agrees that the demands are as high as ever. “Nevertheless, one can rise to the top with pleasure and

André Berger, owner of Handstich: “We are a brand that strives to send clear messages and accepts that it can polarise from time to time. In order to present our statement comprehensively, we need a positive appetite for risk on the side of retail partners that are willing to embrace our concept in its entirety.”

commitment. One also needs flexibility within the ongoing season, which still only very few really manage.” Alexander Petrskovsky says self-critically that retailers miss opportunities by slavishly complying with the pre-order rhythm. “The industry still has to gain confidence in short-term Hot Shots and start incorporating them into order processes, that’s where I see the greatest need for change.” After all, demand and supply have only improved and appropriated selectively, but certainly not to the extent that the market seemingly needs.