New fashion brands. How to survive.

Published on February 2, 2020

Elena Kirioukhina Independent Consultant - Retail/Wholesale at Openstyle Consulting

I was reading an article in Vogue Business on the subject of the new American designers and some established ones who are struggling to survive.

All of us even those who are not in a fashion business know that retail has changed dramatically.

We all know the reason, there is an enormous number of publications analyzing what is wrong and how we got here.

But the question "what to do?" still has no answer. The narrative about " new client's experience" (retailers) and "find a resonant story with customers" (brands) doesn't give an answer.

What is a "new experience?" Skating ring? Daycare? Unique assortment?

Dramatic innovations have great risks, and resetting the whole mentality of an organization is not an easy task when you have 40-50 stores, and business is not that great.

For a new brand, this is even more difficult: clients are overwhelmed with "stories", collaborations, influencers and basically with a number of garments produced in a market.

So, if you are the new designer and you are passionate about fashion, what do you do?

I worked in both retail and wholesale. Working in luxury retail, I witnessed a great number of excellent brands coming and leaving in two seasons. When I took the underperforming brand as a wholesale director, I knew what needs to be done to grow the business. In a year, we had one of the best performing brands in a market with high double-digit growth.

This is my advice to the new brands that don't have very serious financing:

1. Start your business with wholesale. Opening a store or website would cost you a ton of money and some very limited visibility.

Try to get to the department store, even on consignment. And if you do, you treat it as your own store: your team should be there all the time, working with salespeople, clients, visual. Brands often think that selling to the store is an end of their job. No, this is just a beginning. Stores have too many brands, there is no way they can pay special attention to your collection. YOU are the one who is pushing your product. Trust me, it works magic.

2. Now, when you are in a store, work on your "famous" item. Everyone who works in a fashion familiar with Piazza Sempione Women's Audrey Cropped Cotton Pants. The fit is so good that every salesperson in the building would offer it to a client if they are looking for capris. Only a physical store can get you this, it's impossible to explain the fit on the garment online. Make sure if you have an item in a collection that is far better fitting than any skirt, pants, jacket from other brands- develop it into the core. You would be surprised how often women can't find the nice fitting 24-inch skirt.

3. Don't push minimums on new clients. Retail is very difficult right now. If the store decided to have your product, let them buy any amount. Your biggest concern should be their business, if they don't sell well it's over.

4. Don't do runway show or presentation during fashion weeks. Big brands are monopolizing fashion weeks with larger than life presentation, taking their guests to exotic locations. You can't compete. Stores and editors just don't have time. Instead: do something offseason. I had an annual Bastille day party at the beginning of June, when people are done with fashion week but still in town to recap. I would invite retailers, press and friends that work in other brands ( this is always a good idea, many clients ask the brand they buy, what else is good in the market). this is fun and actually very productive.

These are just a few suggestions I think would work for a new brand, based on my experience doing it.

If the brand follows it - I guarantee success. And if you need help - ekiriouk@gmail.com