FGI, CFA Discuss Strategies for Growth Online
Now that the spending freeze appears to be thawing, what is the next move for manufacturers to be ready when customers start shopping again?
That was the question that Fashion Group International attempted to answer on April 15 during a panel discussion titled “A Glimmer of Light: Fashion’s Road to Recovery.” The discussion took place at the Blue Velvet lounge and restaurant in downtown Los Angeles.
The California Fashion Association’s Ilse Metchek kicked off the discussion with a quote by hockey player Wayne Gretzky that encapsulated the theme of preparedness: “Skate to where the puck is going to be, not where it is.”
The event turned into a conversation with audience members, who interjected with questions about how to get the consumer’s attention and the best tools to use once the orders start coming in.
Identifying a niche was the first step in the equation. “The product is what will drive the business,” said Gary Fineman, partner of Los Angeles–based CPA and business-advisory firm Fineman West & Co. LLP.
Speaking from the perspective of a niche brand was Arlene Battishil, founder of GoGo Gear. Battishil’s ScooterGirls brand makes fashionable and functional jackets for female motorcyclists and scooter riders. She said social-media sites are instrumental to creating awareness of a new brand to the right customer.
“I followed everyone who had scooter or motorcycle on their profile. Twitter is the most effective tool today because it’s instant feedback. hellip; The store used to be a destination. The more info you can provide [on your Web site], you gotta do what you can to keep them parked there,” Battishil said.
The issues of where and how to sell online was debated from all angles. Shahrooz Kohan, co-founder of Focal Technology, part of AIMS Technology Solutions, said an online retail arm is a good way for manufacturers to sell past-season inventory that has been returned from wholesale customers and is a way to reach new areas. He warned manufacturers, however, that the right technology and staff infrastructure is required. “Now the customer expects you to be a retailer” and will demand customer service, Kohan said. Fineman reinforced the message that “you have to have technology.” For a growing new company, outsourcing data processing is an important component to maximizing efficiency, he said.
Online retailing is not the answer for everyone—including brands that want to maintain exclusivity. Fineman argued that new, small-scale manufacturers should focus on establishing legitimacy through their wholesale customers first by linking to retail outlets on the brand’s Web site instead of launching an online retail component. “You’re supporting your customer. Most of the brands that have grown restrict their distribution because they’re creating this mystique to the product.”—Rhea Cortado