Fashion trends come and go, but the businesses continue to rake in the money.
In the past, it was easy to see businesses spread their wings and continue to launch new fashion divisions where they would target a sub-section of the market head on. This is starting to dissipate into thin air due to the lower profit margins and weak returns.
Businesses just don’t see the value in doing it this way and they have started to streamline everything. It started with Burberry where they looked to streamline the divisions and bring them under one umbrella, so things remained easier to run.
One of the reasons they have done this beyond the finances has a lot to do with customers who want to make things easier for themselves. No one wants to understand the divisions and how they work, so they prefer one simple brand.
First Heritage Brands is now doing the same thing with its “Sonia by Sonia Rykiel” line that’s supposed to be the cheaper alternative for people. They want to make sure people are still getting the same value and don’t want to think it is a “cheaper” version. So they have made sure to add their name to it.
It is also important to note the financial impact that has hurt the business plays a role to in their decision. They had to lay off around 79 employees because they were not able to manage the expenses that were on the books and it was the only way to get rid of them.
Consolidation is happening all across the board in the fashion industry. While some are looking to combine divisions, there are others who are just working within their companies to make changes. For example, some are bringing the number of variations they have to offer down to reduce their costs.
The world of fashion divisions are now a thing of the past because most designers are not able to manage the expenses and have to make changes to withstand the pressure from their financial books.
The latest trend has become to reduce the costs and make sure customers are getting good rates. This has swept across the market and is only going to bode well for those who are buying from these large brands and want to make sure they’re not paying a lot for their pieces.
This should continue as a trend for the foreseeable future.