Sunday, September 25, 2011

Recent News on What Reailers are doing and how it effects them

During my recent Readings I have found out several new things. In the "Fashion" world, designers are already trying to figure out next springs styles and trends. At these high end fashion and runway shows, corporations like Neiman Marcus, Macy's, Bloomingdale's, and Nordstrom, are sitting in the front rows, eying which clothing lines they like and don't like. Something that most people don't know is that lower priced retailers such as Target and J.C. Penny are present at these super high end fashion shows as well.

I think that these lower priced retailers such as, Target and J.C. Penny are doing a great thing by attending these fashion shows. This is a great way for these lower priced retailers to stay innovative, up to date, and maybe even ahead of the curve.This is crucial in the present economy because, if you are selling products that are trendy you are selling products. Staying appealing to the consumer is crucial because you have to make sales. In this economy, cotton prices are sky rocketing, and labor costs are rising, it is crucial for some of these company to play their cards right.

"We pay attention to the shows," said Penney's trend director Cyndie Washburn-Nester. "We are looking at what people are doing."

On the other hand, there is a general curve in the way higher end consumers are spending there money. They are gravitating toward the higher end products and not only looking for what is on sale. The high end consumers are willing to pay the full price.


http://www.marketwatch.com/story/investing-through-the-lens-of-fashion-2011-09-20


Sincerely,

David Connolly

3 comments:

  1. I think that this is a great article and posting. As I posted in my first blog entry, companies make profit by being innovative. Also, in my second blog post I posted Target's mission statement. It clearly points out that their mission is to provide: "continuous innovation and an exceptional guest experience by consistently fulfilling our Expect More. Pay Less. ® Brand promise." This post clearly shows how target is doing its best to fulfill this mission. I agree with you, they are doing a great thing because they are being loyal to their mission's statements and at the same time, they are thinking about how to outrun the competition.

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  2. I think David made a really good point here when he mentioned J.C. Penny and Target and how they attend the high end fashion shows. It really goes to show how far a brand name can go. People would be willing to pay more for the same style if it came from Bloomingdale's over somewhere like Target simply because of the brand name. While this is beneficial to companies like Bloomingdale's and Saks, the fact that comapanies like Target and JC Penny are showing up to fashion shows poses a threat to them as well. If people find out lower end stores have similar fashion for a much lower price, they may pass over brand name to get a cheaper buy. Great job David.

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  3. Agreed!! This is absolutely brilliant of Target and J.C. Penny and lower brand retailers. Although high end retailers may not be their direct competitors, they can surely keep customers happy supplying them with clothing that is trendy and just like the higher end stores. This is a great idea an especially in such economic times when it is harder for people to pay for such expensive clothes, they can seek similar items at lower costs.
    I love what you said in your posting: "they need to play their cards right."
    It is so true because if they do not, their customers will be unhappy. Also, the audience right now for Target may grow with their innovative idea. So, not only are they bringing in business consistently and keeping the loyalty of customers but may be bringing in new customers as well.
    A job well done for these retailers.
    Falen Rauchwerger

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