FASHION FOR THE PEOPLE

The Power of Bricks

[ Photo by: Decoded Fashion. Written by: Lili Balfour of Atelier Advisors ] 

I heard an interesting statistic at the Decoded Fashion event in NYC last month — 95% of high fashion purchases are done in brick and mortar stores. This bit of knowledge may lead brands to believe that they should shutter online stores and focus on a brick and mortar only strategy. Think again.

Betsey Johnson built her first brick and mortar store in 1978 and expanded her empire by approximately two stores per year.  Currently, she is closing 95% of her stores.  Oddly, despite a 20% decrease in store sales and a 50% increase in wholesale sales, the company was planning to grow stores from 63 to 100 in the near future.  Not surprisingly, the question most brands are asking is: what percentage of distribution should be devoted to traditional brick and mortar stores?

Bricks or Clicks?

Well known e-tailers are realizing the power of the physical store.  Bonobos recently announced their launch into Nordstroms. Warby Parker credited their move into physical space for not only an increase in sales, but an increase in consumer insight and employee knowledge. After Gap acquired e-tailer Athleta and built physical stores, Tony Lenk, President of Gap’s E-commerce business, stated; “For every dollar that customers in the region spent over the Web, they shelled out an additional $4 in the store.” It is no surprise, consumers purchase more when they can touch and feel the merchandise. Clicks need bricks.

Balancing Act

As with any business decision, your bricks vs clicks ratio is derived from a blend of analytics and customer feedback.  The question you want to answer is: where are consumers finding you? Strong brands, such as Bonobos, Warby Parker and Athleta, have the advantage of experimenting with brick and mortar by utilizing partnerships, pop up shops and acquisitions.  Lesser known brands will have to be careful when they enter physical space on their own.  A store build out can range from $100k to $500k, and comes with annual expenses that are difficult to unravel.  A conservative ‘brick approach’ is one store per year, measured regularly against the metrics of other distribution channels.

Some brands do well in the digital world, while other brands require a high touch experience. I highly doubt Lululemon could have built a multibillion dollar wellness brand online. The lure of the store is the community you interact with while shopping, wine tasting, exercising and socializing. Camaraderie is a powerful selling tool.

Can Luxury Go Virtual?

E-tailer Amazon recently announced that they will be entering the luxury market. Their 2006 acquisition of Shopbop gave them a glimpse into the luxury market, while keeping both sites separate. Of course, the consumer is comfortable buying a $30 pair of shoes on Zappos as the price point is low. But Shopbop has proven that the consumer would also be comfortable buying a $10,000 Zac Posen dress online.  As with the brands mentioned above Zac Posen already has a strong following. This is not the case for most brands, luxury or otherwise, that sell online.

Statistically speaking, the conversion rate for in store sales is 67%, while the conversion rate for online sales is a mere 10%. More importantly, online returns range from 15%-50% of sales and 60% of those returns are due to fit.  That is a lot of money wasted on shipping and reduced value as apparel goes out of season.

Yes, Amazon’s experiment is ambitious, but 2012 is armed with selling tools that didn’t exist in 2006.

My Digital Doppelgänger

Decoded Fashion included a stellar panel on digital customization.  The panel included Acustom,Clothes Horse, Me-ality, and Styku — all focused on helping consumers get the perfect fit. One company missing was Fitiquette, a 3-D avatar-as-model approach created by Cisco alums Andy Pandharikar and Anant Kumar.  I believe the digital doppelgänger could be the solution to the pain found in billions lost due to low conversion rates and high returns.

What do you think? Have you used technology to perfect your shopping experience?

LILI BALFOUR is the founder of Atelier Advisors. 

#FASHIONTECHSF Mentors & Apprentices 02.21.12 Recap/ Part 3

[ Photos by MEGHAN EDGERLY. Thank you to FIDMSF ] 

• FASHION+TECHSF Presents: Mentors & Apprentices. Mentors and Apprentices is a career workshop and a networking event for the fashion, technology and creative industries in the SF Bay Area. Business owners who work in fashion, marketing, technology, art and design related professions introduced their businesses and/or products, explained what they do, discussed their industry challenges and the nature of their internship opportunity, followed by a Q&A session. Mentors then met and interacted with participants and guests. Students and entrepreneurs alike attended this alternative career workshop. Internship opportunity and requirements are determined by each mentor. Resumes recommended. 

FASHION+TECHSF 2nd Yr Anniversary Video Recap

• Geek Style Lounge is a pop-up event combining fashion, beauty, lifestyle and tech concepts in a social setting. Attendees are introduced to the newest fashion/mobile apps, enjoy product samples and shop from emerging local fashion designers.Fashion Bloggers Connect is where fashion bloggers are given various platforms to promote themselves, share new tech and innovative fashion ideas in continuing to revolutionize San Francisco’s fashion industry in partnership with San Francisco Fashion And Merchants Alliance, Inc. presented by Fashion+TechSF.

(Source: fashiontechsf.com)

FASHION+TECHSF Presents: Mentors & Apprentices 02.21.2012 at FIDMSF

FOR IMMEDIATE RELEASE

[SAN FRANCISCO, CA]  February 21, 2012 – San Francisco Fashion And Merchants Alliance, Inc. and FASHION+TECHSF present: Mentors & Apprentices, a career workshop and a networking event for the fashion, technology and creative industries in the SF Bay Area, from 5:30pm to 8:30 pm on Tuesday, February 21, 2012 at(FIDM) Fashion Institute of Design & Merchandising, 55 Stockton Street, 5th Floor, Conference Room, San Francisco, CA 94108.

Mentors and Apprentices is a career workshop and a networking event for the fashion, technology and creative industries in the SF Bay Area. Business owners who work in fashion, marketing, technology, art and design-related professions will introduce their businesses and/or products, explain what they do, discuss their industry challenges and the nature of their internship opportunity, followed by a Q&A session. Mentors will then be available to meet and interact with participants and for additional informational interviewing.

Students, entrepreneurs and those interested in additional career options are highly encouraged to attend. Internship opportunity and requirements are determined by each mentor and will vary. Resumes recommended.

• What: MENTORS & APPRENTICES
• Where: FIDMSF, 55 Stockton Street, 5th Floor, Conference Room
• When: February 21, 2012, Tues, 5:30-8:30pm, please arrive early
• RSVP:  $10 General Admission, Free Admission with Current Student ID (All Schools)
• Tickets Available @ http://fashiontechsf02212012.eventbrite.com/

TESTIMONIAL:

“San Francisco is a very small fashion market with a lot of fabulous creative talent and very limited venues for networking; Owen Geronimochanged this by creating San Francisco Fashion and Merchants Alliance, Inc (SFFAMA). Owen is a take-charge person who has been able to present creative ideas and communicate the benefits of SFFAMA by offering real information to the fashion community. I recommend that the San Francisco’s creative industry connect with Owen and become a part of the amazing network he has created.” 

~ Paula Mattisonsierra, Owner/Principal at P. Mattison Consulting

Mentor Speakers include: BETH BLECHERMAN, Techmamas Founder/Editor & Chief Technology Mom; JOANNA RILEY WEIDENMILLER, The One Page Company/CEO/Founder & 360 Fashion Network/Partner; NEELU JAIN,Soulstice/Founder & Growthink/Strategy Consultant; and LILI BALFOUR,Atelier Advisors/ Founder. Product Presentations by Intern Sushi and The One Page Company. BRAD CARRICK, Solz Shoes/CEO, and OWEN GERONIMO, San Francisco Fashion And Merchants Alliance, Inc. & San Francisco Fashion Week™/CEO/FOUNDER, will co-moderate this event.

FASHION+TECHSF is the longest running monthly workshop and event series in the San Francisco Bay Area focused synergistically on building, promoting and educating the vibrant community of fashion and technology entrepreneurs, designers, developers, bloggers, business professionals, students, investors and numerous enthusiastic companies, schools, groups and individuals who share our vision of a world-class fashion and technology industry that is innovative, disruptive and uniquely San Francisco.

SFFAMA, INC., a California non-profit organization, is the go-to institution in the San Francisco Bay Area connecting the fashion and technology industries. Through our members and industry partnerships, including Fashion Startup,Fashion Bloggers Connect, Link2SF, Fashionable Singles, Fashion+TechSF,  and our newest east coast satellite group Fashion+TechNY, we have a reach of over 5,000 fashion and technology professionals and enthusiasts and over 2,100 members on Facebook and growing. SFFAMA/Owen Geronimo is the winner of the coveted Best Producer and Best Marketing at San Francisco Fashion Awards 2011.

For more information on SFFAMA, INC., FASHION+TECHSF and Mentors & Apprentices, please contact Owen Geronimo athttp://about.me/owengeronimo or visit http://www.sffamainc.org andhttp://www.fashiontechsf.com .

• Join SFFAMA, Follow SFFAMA, Like SFFAMA. For media relations & PR/Publicity contact Owen Geronimo

THANK YOU to our 12.15.11 FASHION+TECHSF Panel

THANK YOU TO OUR 12/15/11 PANEL:  JOYCE HU @ Wild Life Works & The Bookr, ANTONIO SIERRA @ Solz Shoes, STEPHANIE WONG @ Rodan+Fields, REBEKAH ILIFF @ talk Tech Communications, BRAD CARRICK (Co-Moderator) @ Solz Shoes & Owen Geronimo (Moderator) @ SFFAMA Inc. 

• FASHION+TECHSF (formerly FashionMashup) is the longest running monthly workshop and event series in the San Francisco Bay Area focused synergistically on building, promoting and educating the vibrant community of fashion and technology entrepreneurs, designers, developers, bloggers, business professionals, students, investors and numerous enthusiastic companies, schools, groups and individuals who share our vision of a world-class fashion and technology industry that is innovative, disruptive and uniquely San Francisco. 

  Our mission is to create educational, social and business opportunities for the fashion and technology industries. In the past two years, FASHION+TECHSF has become the leading network for all things fashion and technology in the SF Bay Area.

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  • Join SFFAMA, Follow SFFAMA, Like SFFAMA. For media relations & PR/Publicity contact OwenGeronimo -at-contact@sffamainc.org

(Source: fashiontechsf.org)

The PhenomList’s Top Bay Area Fashion Startup Founders: Nils Johnson of Beautylish

• Nils Johnson is the cofounder of San Francisco-based Beautylish, a social commerce website for cosmetics and community for user-generated beauty tips and tutorials. Nils Johnson’s fashion obsession started at age 15, when he took a bus to the San Jose mall and spent $1,000 at Ralph Lauren.

• Check out The PhenomList’s ‘Top Bay Area Fashion Startup Founders”… HERE.

• See SF Fashion Calendar  + JOIN SFFAMA. 
  
• Follow @SFFAMA + Join Discussions @ Facebook
• For media relations or publicity  contact OwenGeronimo -at-contact@sffamainc.org

(Source: fashionandtech.net)