These clothes are often not great quality and are high fashion designs that will have dated by next season, so any shopper who pays the full price is crazy. Many women have lusted after a pair of exquisite Italian shoes that are marked R3,800 at full price, only to find them marked down to R700 on sale.
Even though the goods are so radically reduced, I can't imagine the retailer losing a cent. And who wasn't confused earlier this summer to see exactly the same shoes at Woolworths, Zoom, the Oriental Plaza and Truworths — all with different price tags.
Careless sourcing, labelling and pricing is about to become very unfashionable, I believe, chiefly because we are soon going to be dealing with a far more discerning consumer.
All indications are that in spite of the recession that is rolling out all over the world, South Africans are still shopping.
But now that we're counting all our pennies, fashion retailers are going to be forced to improve their quality, business concept and possibly reconsider some of their strategies altogether.
Research suggests that in budgetary times, women don't simply start buying cheap stuff, their priority is value for money.
Recent results show that most of the local chain stores enjoyed good end-of-year sales last year, but they can't assume that business will continue to be unaffected by the economic downturn.
There are those who suspect the new focus on value may bring an end to the era of fast, disposable fashion.
In recent years and all over the world, even supermarkets have started to deal in fashion and often there has been precious little differentiation between their goods and more pricey chain-store merchandise.
This availability of everything, everywhere, has resulted in consumers starting to search for something different, that item that makes them stand out from the crowd.
Suddenly the pressure was on retailers to source original merchandise and to position themselves as a more aspirational brand, definitely different to the shop next door.
Then came the economic downturn and the consumer has become more determined than ever before that every fashion purchase should be worth it.
Here and abroad, designer labels have already clicked that shopping habits are changing drastically and they're taking serious action to make sure that they survive the economic crisis.
Many already have what is known as a diffusion line — a cheaper range, but one still sporting the same designer label — and brands like Paul Smith and Comme des Garçons even have stand-alone stores selling their cheaper items such as T-shirts or last year's styles.
Renowned British online designer store, Net-a-Porter, is about to launch a new website called Outnet.
Essentially the world's most glamorous factory shop, it will ensure that those designer stores which can't move their stock will make some sales.
In the US, a duo of MBA graduates have launched the Gilt Groupe, another online store offering members exclusive and limited access to designer-brand sales for 36 hours. Membership is by invitation only, so the brands retain an air of exclusivity and at least they'll be selling their wares.
Top of mind for designer brands is to survive the downturn, whatever it takes. Best the chain stores and boutiques stop copying each other and start innovating, or they may not emerge unscathed.
Source: The Times
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