Displaying items by tag: Harrods

Friday, 16 October 2020 12:21

Can Raf Kickstart Prada to Growth?

can raf simons kickstart Prada to growth

When designer Raf Simons was announced as the new ‘co-creative director’, working alongside Miuccia Prada, at Prada, it was welcomed as a meeting of two intellectual fashion minds. His first show, SS21, shown last week in Milan, in a digital format, was a return to Prada’s minimalist carpeted and matching curtained 1990s aesthetic. It was the most anticipated show of the new womenswear season.

Left - Prada SS21

Prada has had a growth problem in recent years, so, will this new creative impetus make a difference to a luxury group that is in danger of being left behind within the luxury segment?

The Prada S.p.A. group owns the Prada, Miu Miu, Church’s and Car Shoe brands and produces and distributes luxury leather goods, footwear and apparel, benefitting from a supply chain which includes 22 owned industrial sites. It also operates in the food sector with Marchesi 1824 and in the eyewear and fragrance industries under licensing agreements. The group employs nearly 14,000 people and its products are sold in 70 countries worldwide through 641 directly operated stores as of December 31, 2019.

Prada has been trying to inject growth in recent years by reducing wholesale and discounting, but it is trailing its rivals. For example, Prada and Gucci were once neck and neck as brands, both creatively and financially. They were the juggernaut fashion phoenixes of the 1990s. When one was name checked, the other wasn’t far behind. What changed?

In the 12 months ended Dec. 31, 2019 revenues at Prada S.p.A. totalled €3.22 billion, up +2.7% compared with €3.14 billion in the same period a year earlier. Retail sales grew +4.1% to 2.63 billion euros. This is for the entire Prada Spa group which also includes Miu Miu, Church’s and Car Shoe.

amber valletta 1997 prada glen luchfordFor the same year, 2019, Gucci revenue was €9.63 billion, revenue climbed by +13.3% on a like-for-like basis (+16.2% reported) and operating income leapt by +19.8%. The brand now accounts for over 60% of it owner Kering's revenues.

Right - Prada 1997

All of Gucci’s growth stems from 2016 when it was comparable in size to Prada in terms of revenue. Over the past 4 years, Gucci has grown its revenues to be three times that of Prada. Admittedly, Gucci has had unusually meteoric growth, but the Prada brand has been pretty much flat over these past 4 years.

While the Prada share price, listed in Hong Kong, has increased recently, it has bobbed along the 24HKD- 35HKD range over the past 5 years. Its highs were back in 2013, when the stock hit around 75HKD. During the five years over which the share price declined, Prada’s earnings per share (EPS) dropped by 18% each year. The TSR (Total Shareholder Return) gives a more comprehensive picture of the return generated by a stock. In the case of Prada, it has a TSR of -23% for the last 5 years. While the Prada share price has struggled to rise, Kering’s and LVMH’s has soared.

can raf simons kickstart Prada to growth adidas

Prada is in that predicament where it is big, but isn’t quite big enough. It’s luxurious, but not luxurious enough and, while it was once a leader, it hasn’t produced much that has stuck in recent years. It felt like Miuccia Prada had checked out, creatively, of the brand years ago. The last show by Miuccia Prada, AW20, before Simons arrived, put the signature triangular logo centre stage and was its most commercial for years.

Above -  A sign of things to come? adidas Consortium + Prada Superstar 450 Leather Sneakers - £400 from MRPORTER.COM

In a statement up to June 30th 2020, Prada CEO, Patrizio Bertelli talks of ‘growth trajectory temporarily interrupted’ due to COVID 19. He said, “The first half of 2020 saw a temporary interruption of our growth trajectory which, in a situation of progressive control of the pandemic, we are confident will gradually resume from the second half of 2020, when our store network will again be fully operational. The excellent response of local consumers after the re-openings, confirms the desirability of our products and the strong relationship with our customers, which has been further strengthened by our continued focus on digital technology. The recent positive trends in all markets, combined with our solid balance sheet and financial position, allow us to look to the future with confidence today.”

On average, 40% of Prada’s retail network was closed from February to May 2020, reaching a peak of 70% in April. Its wholesale channel was heavily reduced, following the strategic decision taken in 2019 to strictly control all distribution channels to protect brand positioning and discounting. Prada said e-commerce had delivered triple-digit sales growth during and after the global lockdowns, while retail sales were down 32% and wholesale sales were down 71%.

Prada has seen double-digit sales growth since April in Mainland China, while South Korea and Taiwan, which didn’t experience store closures, showed a consistent double-digit trend throughout the period. Thanks to the contribution of these markets, the entire Asia Pacific region reported double-digit growth in June. The rest of the world was negative. In April 2020, Prada’s Board of Directors withdrew its recommendation to pay a dividend for 2019.

Prada’s difficulties during the COVID lockdowns aren’t unusual and will have been replicated by other luxury brands, but it doesn’t help its desirability and also the inability for Raf Simons’ new show to make an impact during this difficult time. According to the Business of Fashion, just 10,000 viewers tuned into the Prada Instagram live feed of the SS21 show and, according to analytics firm Tribe Dynamics, the show’s earned media value in the first 48 hours, an industry measure of third-party social media engagement, was 59 percent lower than the Spring/Summer 2020 show a year ago.

Many people have switched off from fashion, currently, and this will not have helped Prada make a splash with Simons’ collection. His first collection received warm reviews in a season without much competition. But, his return to the pared pack 90s Prada doesn’t answer the problem of growth. One good shoe is not enough, you need hundreds, and they need to roll over many seasons like the Gucci model. Gucci’s lack of seasons and huge choice of product shows how maximalism in fashion increases venues. Looks that have more accessories than a Christmas tree are going to generate more sales. More choice is the answer for growth. It also appeals to more customers.

can raf simons kickstart Prada to growth

Prada has followed this model too, previously. Prada only really started to make money and get bigger when it moved from mink trimmed nylon to colourful striped fox fur scarves and crystal embellished dresses in the noughties. When the ‘Pradasphere’ exhibit opened in Harrods in 2014 it illustrated what really sold to the contemporary Prada customer and it wasn’t minimalism. Minimalism hasn’t really made big money for any fashion business. Less isn’t more revenue.

Unfortunately for the brand, the planned Design Museum exhibition in London, planned for 2020, has been cancelled, which would have given it a boost. Details of a new collaboration between the Design Museum and Prada will be revealed in 2021.

Simons is a good designer and an influence, but his track record at Dior and Calvin Klein shows a limited understanding of what is commercial. When commercial, as illustrated with the collab with adidas above, it verges on the repetitive and boring.

Prada CEO, Bertelli’s relationships with past designers, such as Helmut Lang and Jil Sander, once owned by the Prada Group, was turbulent and Simons won’t hang around if the going gets tough (again).

Prada was once one of the world's coolest brands, but it didn’t innovate when the likes of Michael Kors started copying its famous saffiano leather. Simons is undoubtedly cool, but will he be enough for Prada to catch up with its rivals?

Buy TheChicGeek's new book FashionWankers - HERE

Published in News
Tuesday, 29 September 2020 15:18

Can Raf Kickstart Prada to Growth?

can raf simons kickstart Prada to growth

When designer Raf Simons was announced as the new ‘co-creative director’, working alongside Miuccia Prada, at Prada, it was welcomed as a meeting of two intellectual fashion minds. His first show, SS21, shown last week in Milan, in a digital format, was a return to Prada’s minimalist carpeted and matching curtained 1990s aesthetic. It was the most anticipated show of the new womenswear season.

Left - Prada SS21

Prada has had a growth problem in recent years, so, will this new creative impetus make a difference to a luxury group that is in danger of being left behind within the luxury segment?

The Prada S.p.A. group owns the Prada, Miu Miu, Church’s and Car Shoe brands and produces and distributes luxury leather goods, footwear and apparel, benefitting from a supply chain which includes 22 owned industrial sites. It also operates in the food sector with Marchesi 1824 and in the eyewear and fragrance industries under licensing agreements. The group employs nearly 14,000 people and its products are sold in 70 countries worldwide through 641 directly operated stores as of December 31, 2019.

Prada has been trying to inject growth in recent years by reducing wholesale and discounting, but it is trailing its rivals. For example, Prada and Gucci were once neck and neck as brands, both creatively and financially. They were the juggernaut fashion phoenixes of the 1990s. When one was name checked, the other wasn’t far behind. What changed?

In the 12 months ended Dec. 31, 2019 revenues at Prada S.p.A. totalled €3.22 billion, up +2.7% compared with €3.14 billion in the same period a year earlier. Retail sales grew +4.1% to 2.63 billion euros. This is for the entire Prada Spa group which also includes Miu Miu, Church’s and Car Shoe.

amber valletta 1997 prada glen luchfordFor the same year, 2019, Gucci revenue was €9.63 billion, revenue climbed by +13.3% on a like-for-like basis (+16.2% reported) and operating income leapt by +19.8%. The brand now accounts for over 60% of it owner Kering's revenues.

Right - Prada 1997

All of Gucci’s growth stems from 2016 when it was comparable in size to Prada in terms of revenue. Over the past 4 years, Gucci has grown its revenues to be three times that of Prada. Admittedly, Gucci has had unusually meteoric growth, but the Prada brand has been pretty much flat over these past 4 years.

While the Prada share price, listed in Hong Kong, has increased recently, it has bobbed along the 24HKD- 35HKD range over the past 5 years. Its highs were back in 2013, when the stock hit around 75HKD. During the five years over which the share price declined, Prada’s earnings per share (EPS) dropped by 18% each year. The TSR (Total Shareholder Return) gives a more comprehensive picture of the return generated by a stock. In the case of Prada, it has a TSR of -23% for the last 5 years. While the Prada share price has struggled to rise, Kering’s and LVMH’s has soared.

can raf simons kickstart Prada to growth adidas

Prada is in that predicament where it is big, but isn’t quite big enough. It’s luxurious, but not luxurious enough and, while it was once a leader, it hasn’t produced much that has stuck in recent years. It felt like Miuccia Prada had checked out, creatively, of the brand years ago. The last show by Miuccia Prada, AW20, before Simons arrived, put the signature triangular logo centre stage and was its most commercial for years.

Above -  A sign of things to come? adidas Consortium + Prada Superstar 450 Leather Sneakers - £400 from MRPORTER.COM

In a statement up to June 30th 2020, Prada CEO, Patrizio Bertelli talks of ‘growth trajectory temporarily interrupted’ due to COVID 19. He said, “The first half of 2020 saw a temporary interruption of our growth trajectory which, in a situation of progressive control of the pandemic, we are confident will gradually resume from the second half of 2020, when our store network will again be fully operational. The excellent response of local consumers after the re-openings, confirms the desirability of our products and the strong relationship with our customers, which has been further strengthened by our continued focus on digital technology. The recent positive trends in all markets, combined with our solid balance sheet and financial position, allow us to look to the future with confidence today.”

On average, 40% of Prada’s retail network was closed from February to May 2020, reaching a peak of 70% in April. Its wholesale channel was heavily reduced, following the strategic decision taken in 2019 to strictly control all distribution channels to protect brand positioning and discounting. Prada said e-commerce had delivered triple-digit sales growth during and after the global lockdowns, while retail sales were down 32% and wholesale sales were down 71%.

Prada has seen double-digit sales growth since April in Mainland China, while South Korea and Taiwan, which didn’t experience store closures, showed a consistent double-digit trend throughout the period. Thanks to the contribution of these markets, the entire Asia Pacific region reported double-digit growth in June. The rest of the world was negative. In April 2020, Prada’s Board of Directors withdrew its recommendation to pay a dividend for 2019.

Prada’s difficulties during the COVID lockdowns aren’t unusual and will have been replicated by other luxury brands, but it doesn’t help its desirability and also the inability for Raf Simons’ new show to make an impact during this difficult time. According to the Business of Fashion, just 10,000 viewers tuned into the Prada Instagram live feed of the SS21 show and, according to analytics firm Tribe Dynamics, the show’s earned media value in the first 48 hours, an industry measure of third-party social media engagement, was 59 percent lower than the Spring/Summer 2020 show a year ago.

Many people have switched off from fashion, currently, and this will not have helped Prada make a splash with Simons’ collection. His first collection received warm reviews in a season without much competition. But, his return to the pared pack 90s Prada doesn’t answer the problem of growth. One good shoe is not enough, you need hundreds, and they need to roll over many seasons like the Gucci model. Gucci’s lack of seasons and huge choice of product shows how maximalism in fashion increases venues. Looks that have more accessories than a Christmas tree are going to generate more sales. More choice is the answer for growth. It also appeals to more customers.

can raf simons kickstart Prada to growth

Prada has followed this model too, previously. Prada only really started to make money and get bigger when it moved from mink trimmed nylon to colourful striped fox fur scarves and crystal embellished dresses in the noughties. When the ‘Pradasphere’ exhibit opened in Harrods in 2014 it illustrated what really sold to the contemporary Prada customer and it wasn’t minimalism. Minimalism hasn’t really made big money for any fashion business. Less isn’t more revenue.

Unfortunately for the brand, the planned Design Museum exhibition in London, planned for 2020, has been cancelled, which would have given it a boost. Details of a new collaboration between the Design Museum and Prada will be revealed in 2021.

Simons is a good designer and an influence, but his track record at Dior and Calvin Klein shows a limited understanding of what is commercial. When commercial, as illustrated with the collab with adidas above, it verges on the repetitive and boring.

Prada CEO, Bertelli’s relationships with past designers, such as Helmut Lang and Jil Sander, once owned by the Prada Group, was turbulent and Simons won’t hang around if the going gets tough (again).

Prada was once one of the world's coolest brands, but it didn’t innovate when the likes of Michael Kors started copying its famous saffiano leather. Simons is undoubtedly cool, but will he be enough for Prada to catch up with its rivals?

Buy TheChicGeek's new book FashionWankers - HERE

Published in Fashion

LFWM London Men's Fashion Week of the week Edward Crutchley

One of the last designers standing at LFWM doing anything remotely luxurious and expensive looking is Edward Crutchley. He’s stealthily built up a fan base and business selling beautiful and theatrical clothes stocked by the likes of Harrods, matchesfashion.com and Browns. Patterned chintzs and medieval looking prints are an extravagant, yet wearable, display of his fashion craft.

LFWM London Men's Fashion Week of the week Edward CrutchleyThe Charles I hair - or was it Brian May?! - and exaggerated Freemasons’ Fezs - Shriners - made you yearn for beautiful things again. (There’s still a customer).

The furs were real - this could explain the refined walnut lined location of the Skinners' Hall - and provided by Kopenhagen Fur. Black and white checks and lewd artly printed silks are a signature of Crutchley's.

Silly, and as basic as it sounds, but, considering the state of the quality and output from many ‘luxury’ brands, this all looks good enough to buy. Finally!

Pass me the American Express.

Published in Fashion
Wednesday, 06 November 2019 14:08

ChicGeek Comment H For?

H Beauty Harrods comment beauty retailWould a rose by any other name smell as sweet? That’s a question surrounding the announcement that Harrods, arguably the most famous shop in the world, is opening a network of beauty stores.

The new concept is going to be called ‘H Beauty’ in a move away from the green and gold of the familiar Harrods branding. The first store will launch in spring 2020 at the Lakeside shopping centre in Thurrock, closely followed by a second store in Milton Keynes.

At the same time, Harrods has also opened an ‘H Café’ in Henley-on-Thames. Opened last month, it aims to be somewhere you can enjoy the Knightsbridge department store's food whilst also having a selection of food, drink and home accessories to shop from. You can also shop on the Harrods website and use click and collect to pick up your purchases.

Left - H Beauty is new for 2020

What both these concepts have in common is the lack of the Harrods name, arguably their greatest asset. Is this a branding mistake?

Eric Musgrave, fashion industry commentator and former editor of Drapers, says, “Apart from its less-than-impressive airport shops, which always seem like upmarket tourist boutiques, Harrods has resisted the chance to open stores beyond Brompton Road. I am sure the airport shops take loads of money, but the strategy of maintaining just one “real” Harrods seems eminently sensible. 

“Harrods did not open regional satellites like its direct upmarket department store rivals, Harvey Nichols (six UK regional stores plus one in Dublin) and Selfridges (three regional stores, including two in Manchester). If you want the Harrods experience, there is only one place to go. It’s a compelling argument.” he says.

“With reference to its two ventures into beauty and into a café, it is significant it is not using the Harrods name.” says Musgrave. “It is using H. That seems sensible to me. Will the connection to consumers be obvious? These are clearly an experiment that could be quietly closed down if they don’t work and gently extended if they do. On the face of it, it is a curious move, but I do not think it is danger of diluting the main Harrods brand.” he says.

The new beauty boutiques will host new brands to Harrods and offer services such as blow-dries and facials plus a “coffee-to-cocktail” bar for the complete shopping experience. Harrods said the launch is part of its efforts to “disrupt the UK beauty retail landscape” by bringing its brand to a wider audience across the UK. No doubt they’ve looked at the demise of the traditional department store and the success of Sephora globally, but not in the UK. 

Harrods cafe H Henley on Thames comment beauty retail

Annalise Fard, director of beauty at Harrods, said: “Nobody is doing or investing more to showcase to customers what is possible in the world of 21st-century beauty than Harrods. H beauty is an opportunity to bring our mission to more beauty lovers across the UK. This investment demonstrates our belief in the strength of our beauty authority and the opportunities within the beauty industry here in the UK and represents a major extension to our current beauty business.”

Right - H Café Henley on Thames

David M Watts, Industry Consultant, says, “It’s potentially a great money spinner as beauty is fast becoming the entry into luxury (whereas it was accessories and fragrance) both designer brands (Chanel/DIOR/GUCCI) and celebrity Fenty Beauty and professional Pat McGrath and Charlotte Tilbury have sold out in stores like Bergdorf Goodman in NYC. Beauty is a smart way to engage with customers with try before you buy, makeovers and allowing experimentation in store.”

“H Café is a good idea for brand extension again if done right. Ivy Club/Restaurant have done it and VOGUE Magazine has created there cafe brand in overseas territories like Dubai, Moscow and Berlin.” says Watts.

Is it a mistake not to use the full Harrods name? “Possibly, but one assumes it will ally itself to the Harrods brand in some way with branding-colour design. Plus they want to identify with a new market so a rebrand of the new offering is not a wholly bad idea.

“Beauty is an exciting category with big margins. The recent GUCCI lipstick in vintage packaging is estimated to have sold 1 million lipsticks in its first month of launch at £34 per unit.” he says.

What advice would you offer them? "Include men's beauty - hugely growing sector underdeveloped and a perfect opportunity to test customer reaction. ‘Men's Beauty’ (not grooming) is estimated to be 1.14 billion dollars in 2019. 

“Develop new experiential in-store concepts for men’s and women’s that gets customer engagement and generates buzz, allowing customers to create assets for Instagram and other social media platforms.” says Watts.

Julien Sheridan,J Co-Founder &CEO www.sheridanandco.com, a global retail design agency, says, “I think it is a great idea. People like to buy luxury products in luxury surroundings, and I imagine that this will be a great success.  They are extending an offering that they are already excellent at, not “having a go” at something new.  

“The brands that they sell can only be delighted, as they know that Harrods will have studied intelligently in the data they hold before deciding to take this step.” she says.

“I like H Beauty. It gives them an opportunity to do their thing a little differently in here without upsetting the brand guidelines that they have in Knightsbridge.  Harrods is Harrods, and H Beauty will be a little “lighter” perhaps and a plus side of being out of Central London and with parking at Intu this may be being positioned with a different customer in mind.

“Beauty, as a category is flying, and a career in beauty is now a very respectable, highly paid, arena to be in. I love the fact that they will be offering training, a beauty concierge and masterclasses.” she says.

H Beauty Harrods comment beauty retail h cafe

“The advice I would offer them is “carry on Harrods, you know what you are doing, and you do it brilliantly” so do not listen to the doubters.  Beauty belongs to beauty, it is it’s own category, and a buying it in chemist shops does not “do it” for a lot of people.” says Sheridan.

Other retailers will be watching what and how Harrods does here. Globally, the Harrods name is as strong as other great British luxury brands, regardless of ownership, such as Rolls Royce and Cunard, but, until now, and apart from the airport stores, it hasn’t tried to expand its footprint.

Why now? It’s a tough time in retail and many people say the beauty market, particularly the colour segment, has become saturated and is struggling.

Left - Recognisably Harrods?

Many people may wonder why Harrods isn’t putting its efforts into harrods.com. This has the potential to be a huge global player in e-commerce rather than a shop window for the Knightsbridge store.

“They have tried I understand, but inside sources tell me that it's so political and departmentalised that the e-commerce has always faced insurmountable obstacles.” says Watts.

“In terms of the business doing more online, I would counsel against that.” says Musgrave. “Except for a tiny bit of own-label merchandise (and more in food, obviously), Harrods sells only third-party brands. What it sells – and this is unique – is the Harrods experience that requires a visit to the store at Knightsbridge. I’d leave it at that.” he says.

With so much bad news in retail it will be very welcome, especially for the regional shopping store owners like Intu, to have a new successful chain, regardless of the name. Harrods aren’t the first people to think of this beauty idea though, you only have to look at the new fancy Boots in Covent Garden, which has become something of an unofficial centre of beauty brands in London, with its beauty hall and YouTube studio, to prove how people are piling into specific beauty retail. 

While there is scope to pick up the slack from the closing department stores, offer something fresher and more contemporary than say Space NK, and get in there early before the rumoured relaunch of Sephora in the UK, it is becoming more competitive. The Harrods' H could just swing it.

BUY TheChicGeek's new book - FASHIONWANKERS - HERE

Published in Fashion
Tuesday, 03 September 2019 16:12

Tried & Tested Merchant Of Venice Imperial Emerald

Review 
Merchant of venice fragrance Imperial Emerald best rated tried testedCreated by perfumer Jordi Fernandez, ‘Imperial Emerald’ layers iris, Egyptian jasmine and lily of the valley over a subtle base of white musk.

The perfume was inspired by the beauty and majesty of the peacock. Native to India and Sri Lanka, for centuries the peacock has been interpreted by different cultures as a symbol of immortality and regality.

TheChicGeek says, “This looks beautiful with its real feather detail, and you know how much I love Venice. The fragrance is very white florals. There’s a lot going on here with top notes of bergamot, mandarin, pink peppercorn, carnation and iris. Heart notes of orange flowers, ylang ylang, peony, egyptian jasmine, lily of the valley and a base composed of white amber, benzoin and white musk, so it’s definitely not for the wallflowers of fragrance.

It smells old-fashioned, but not in a bad way. It’s probably too blousy for me, but would suit some of those other strutting male peacocks I know..."

Left - Merchant Of Venice - Imperial Emerald Eau de Parfum Concentrée - 100ml - £250 Available exclusively from Harrods

Disclosure - A sample product was gifted by Merchant of Venice to review

Published in Grooming
Monday, 05 August 2019 15:17

#OOTD 124 Can't See The Wood For The Dries

Menswear OOTD The Chic Geek Blogger Dries Van Noten Shirt Grenson Falke socks sandals American Vintage Kronaby Verner PantonWhen you can't see the wood for the Dries... it's probably time to step back, remember it's only August and just chill. We still have weeks of summer left.

For summer evening wear, team a nice shirt - this has a classic 1970s Verner Panton print - with a smart pair of loose trousers and sandals with socks. Who gives a French tuck?!

Credits - #Gifted Shirt - Dries Van Noten from Harrods, Trousers - American Vintage, Sandals - Grenson, Socks - Falke, Watch - Kronaby

Menswear OOTD The Chic Geek Blogger Dries Van Noten Shirt Grenson Falke socks sandals American Vintage Kronaby Verner Panton

Menswear OOTD The Chic Geek Blogger Dries Van Noten Shirt Grenson Falke socks sandals American Vintage Kronaby Verner Panton

Menswear OOTD The Chic Geek Blogger Dries Van Noten Shirt Grenson Falke socks sandals American Vintage Kronaby Verner Panton

Menswear OOTD The Chic Geek Blogger Dries Van Noten Shirt Grenson Falke socks sandals American Vintage Kronaby Verner Panton

Published in Outfit of the Day
Monday, 08 April 2019 16:14

ChicGeek Comment Many Happy Returns?

serial returners asos instagram online retail etailersReturns cost money, lots of money. Free delivery and no quibble returns are starting to become a strain on online retailers and it seems ASOS has had enough. The British fast-fashion giant recently announced it was cracking down on ‘serial returners’.  An extension in its returns policy - items can be returned up to 45 days after purchase with a cash refund up to 28 days and credit thereafter - was also issued with a threat to investigate and ‘take action’ if it notices anything unusual with people returning more items than usual. If it suspects someone is wearing and returning goods, or ordering and returning ‘loads’, it may deactivate the account.

Left - ASOS' returns are costing them dearly

ASOS is one of the world’s largest online retailers, particularly amongst younger demographics, and its ease of ordering and returning is, arguably, part of the their success and growth story.

Becky, 29, says “I think it’s against the whole nature of online shopping. When you go into a shop you can take 10 items into the changing room and not like any of them, e-retailers need to expect the same thing to happen with their sites and customers should be able to return the items they don’t want.

"I buy a lot from ASOS and return a lot simply because it doesn’t fit right or because it doesn’t look how I expected it to when I bought it.” she says. “If it starts impacting how quickly refunds come through – or if I start having refund requests declined – then it definitely would discourage me. I love ASOS though – majority of my wardrobe is from ASOS, now, where they host so many brands – so I’m intrigued to see what happens!”

This issue is experienced by many retailers. Research conducted by resource planning platform Brightpearl, who surveyed 200 retailers across the UK, found more than a third of shops have seen an increase in serial returns over the last year. As a result, 45 per cent of retailers, including ASOS and Harrods, said they were planning to blacklist repeat offenders. It can cost double the amount for a product to be returned into the supply chain as it does to deliver it and in the UK, it can pass through seven pairs of hands before it is listed for resale. This all takes time and money.

Meli, 26, says “I’m glad that this prevents people returning used items as I’ve had something sent to me from ASOS before that was definitely used. However I’d hate to be blacklisted for genuinely returning items that don’t fit/I don’t like!

“I often order in bulk with multiple options and different sizes then do a try on at home to see what I like best, and return the rest. I think the real problem is sizing as ASOS stocks so many different brands, it’s hard to rely on standard sizing to be the same across all.” she says. “If I was blacklisted then it would certainly drive me to other online retailers or just shop directly with the brands that ASOS stocks. For now, it will make me think more carefully about exactly what I’d be likely to keep if it did fit.” says Meli.

Earlier this year, Zalando started a trial in which it would attach very big clothing labels to items to make it more difficult to ‘wear and return’ or post on Instagram. That label reads: “Dear customer, feel free to fit this article and try it, but if this label is removed, it will not to be accepted as a return by Zalando.”

serial returners Zalando instagram online retail etailers

Retailers have somewhat encouraged some of this behaviour with their ‘try-before-you-buy’ options. Consumers can order what they like and then just pay for what they keep. This encourages over ordering and a large number of returns. Amazon currently restricts this service to between 3 and 8 items. 

Research from Barclaycard found that almost 1 in 10 UK shoppers have bought clothes online with the intent to wear them for social media and then return them. Surprisingly, it was the older demographic, men and women aged 35 to 44, with 17 per cent, revealing that they are guilty of shopping only for their #OOTD. The research also found that is was men who were more inclined to shop and return as they are more ‘socially self-conscious’ than women - with 12 per cent admitting to posting a clothing or accessory item on social media and returning it to the retailer afterwards.

Right - Zalando taking on the 'Serial Returners'' with their large tags 

Lois Spencer-Tracey, fashion blogger, says, “Must confess, I'm a bit annoyed by this. I probably send back 80-100% of an order I receive purely because of their sizing and my body shape. Nothing to do with my Instagram or blog.”

Last year, Next announced it would start to charge customers a £1 fee for returns they make through a courier or through a Hermes Parcel Shop. The collection charge will be applied for each collection, regardless of the number of items collected. Returning items at any of Next’s retail or clearance stores in the UK remains free.

ASOS are playing the fashion police by admitting had resorted to checking people’s social media accounts in a bid to catch out consumers who wear clothes before sending them back, and falsely claim they have not received items bought online.

“I’m a massive online shopper. I find it so much easier to just order clothes in and try them on at home because then you can try on a full outfit, matching with the shoes and accessories you want. It’s so much easier to do in your own home rather than in a squished changing room. And usually returns are easy with things like collect+ which is much better than working out when you’ll next be in town to take clothes back to a store.” says Becky.

This is a difficult line for online brands to tread. On the one hand they don’t want to discourage consumers from ordering or being frightened to return things, and, on the other hand, they need to let excessive returners or people who are wearing things and returning them, know they are being monitored. It's definitely easier to return something into a faceless plastic bag than been quizzed by a sales assistant. This is probably an empty threat from ASOS, but does illustrate how serious this issue is becoming for fashion e-tailers. Rather than look at the volume of returns, maybe look at the conversion percentages of sales from shoppers. You don’t want to alienate active and engaged consumers, but neither do you want to service those costing the company dearly.

Read more ChicGeek expert comments - here

Published in Fashion

Review Christophe Robin Thickening Paste Shampoo men's grooming expertFrench colourist, Christophe Robin, has worked with Kylie Minoque, Tilda Swinton, Catherine Deneuve and, historically, the 90s Supermodels’ hair colour. This is his men’s product. It’s a shampoo with rassoul clay - draws out impurities a bit like a face mask - and Tahitian algae, which is very nutrient-rich, so great for strengthening and thickening hair.

Left - Christophe Robin - Thickening Paste Shampoo - 250ml - £42.50 from Harrods

TheChicGeek says, “This is a real treat. While the colour and texture looks a little disconcerting - you’ll know what I mean when you see it - it’s very thick and brown. It’s like a nutty chocolate spread. 

It quickly foams up into a shampoo. With 95% natural-origin ingredients, it is concentrated with pure rassoul clay. Rich in minerals, it is said to gently absorb impurities that suffocate the scalp and immediately brings fullness and body to the roots.

Forget Christophe Robin, I felt more like Pooh Bear dipping my hand in the honey pot using this. It’s a jar, so needs a juggling act in the shower, but this feels expensive and rich. You don’t need much, maybe a large pea size and it states there are around 30 applications in the jar, so is expensive. 

This feels really thick and indulgent, there’s not a particularly strong smell, though it does say a blend of woody notes and amber.

I didn’t find it particularly thickening, but then my hair is really thinning. I think you need that bouncy, curly, French boy hair like Timothée Chalamet - here to make it work!"

Published in Grooming

Mike Ashley House of Fraser Harrods of the high street

Mike Ashley is a retail predator. Much like a lion watching his prey out on the savannah, he waits until the wildebeest looks weak and separated from the herd and then bides his time. Pouncing only when it suits him and he’s certain of a tasty and easy meal.

This week he pounced and was rewarded with House of Fraser for £90m. He already had a 11% stake in HOF, bought in 2014, so he had an interest. 

Left - Harrods of the High-Street?

This price was drastically down from the £480m the Chinese owners, Sanpower, paid for it. The brand is weak and damaged, but not dead, but it will need investment in order to survive. They didn’t seem to have a strategy and they didn’t define why you would go to House of Fraser over another store. 

Ashley needs to work on making it clear why you’d return to House of Fraser. While John Lewis is offers mostly necessity, and can be bought online, Ashley would be better at targeting ‘treats’, relating to fashion and dressing up to seduce a higher spending customer to leave the house. 

This needs to be the store for birthdays, for Christmas, for anniversaries, or anything that requires fancy packaging and that feel good, swinging bag feeling. Fewer visits, but more money out of people’s pockets. At the moment the nicest thing they sell is a Mulberry handbag, but they need more excitement to keep people interested.

Promising to turn the struggling chain into “the Harrods of the high street”, could be Ashley’s flippant words, but if he focuses on that idea, he could be onto something. You don’t go to Harrods for the mundane or ordinary. Admittedly, the prices will have to be different, but you can still package everything nicely and tie-in exclusive product and brands.

Reading about his ‘elevation’ and expansion plans for his other brands, recently, what’s left of House of Fraser will be in prime locations such as Bluewater, Westfield White City and Glasgow, if he decides to stick to closing the other 31 struggling stores, and would fit nicely into this expansion plan. He could easily use his premium Flannels brands to insert much higher end product, something House of Fraser always aspired to be, but never quite got there.

He’s realised that it’s important to have product and brands for each level of customer. The bargain end is fickle and requires huge volumes, while the growth in luxury brands offers lower volumes, but much higher profits. Flannels is expanding rapidly and this acquisition will help create a larger scale.

Flannels is opening new stores at Glasgow Fort shopping centre, Hull and Leicester as part of its ongoing expansion drive. The retailer announced, recently, it expects to open between 6 and 12 new Flannels stores before its financial year end next April 2019. In its premium lifestyle division, Sports Direct currently operates 21 Flannels stores, 10 Cruise stores and three Van Mildert stores, so its premium designer business is really growing. Even Oxford Street is getting a Flannels next year.

He could introduce his underwear brand, Agent Provocateur, into HOF stores and work on their strong existing brands like Biba.

It’s inevitable, if Debenhams continues to struggle, that he’ll merge the two, already owning 29.7% of Debenhams. He’s probably waiting for his moment to strike on this one too and get it at a knocked down price. The high street will plateau soon and even go back into a growth mode and, if in the right locations, in the right cities, House of Fraser will be smaller, but much stronger. 

Published in Fashion
Friday, 13 July 2018 15:16

Hot List The Chain Loafer

Chain Loafer Menswear Must Have Autumn 2018 Tom Ford Harrods menswear

Tom Ford is a designer and brand who does his/its own thing. It knows its customer and it services their needs and wants for items of clothing that are expensive, luxurious and suits their lifestyles. He doesn’t usually chase trends, but you know he always has one eye on them.

He knows exactly how to update a classic to make it relevant.

This is his version of the classic Gucci snaffle loafer. A style of shoe he knows well after spending all those years in charge. The chain adds an element of bad taste which is so prevalent in fashion, today. This type of chain loafer appeared on the SS19 catwalk at Martine Rose and I also saw them in the G.H. Bass SS19 collection recently in Berlin.

These are luxury chav loafers and you need to team them with sportswear or other items of bad taste. If you really want to max the trend get them in coloured snakeskin - if you can afford them!

Left & Below - Tom Ford - York Chain Loafers - £590 from Harrods

Chain Loafer Menswear Must Have Autumn 2018 Tom Ford Harrods menswear

Published in Fashion
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