-
Intention and observations of fashion manufacturers that start their own brands.
Over the past 15 years since starting Fashion Compass I would guesstimate, being prudent around 600 brands have approached me, “please can we discuss my brand”. At least 10% of these have been from brands started by a factory. I respond to all enquiries so many of the points in this article have appeared over the years. That said there are some truly amazing brands out there started and owned by factories. This article like any does not apply to all, but it does apply to many that have contacted me. I am not nor claim to be a brand expert, but I probably see more brands than most who claim to be a brand expert.
I only work with brands, I work with brands from all countries & get fashion agents, distributors, retail partners in new markets globally. Fashion, Lifestyle, Outdoor, Retail/ Wholesale. Luxury, premium, commercial. More on my profile Stephen Laundy | LinkedIn or https://www.fashioncompass.co.uk . To be very clear, I do not work with factories to get them agents/ orders.
Below are observations I am sharing and hopefully also offers solutions.
As many know I love and use the phrase “a good brand is measured by the quality of a relationship between the owner and it’s consumer”. So for example if you supply a store, that store is now placed between you and the consumer and so on. I read that phrase from Peter Fisk’s brilliant book about 20 years ago called Marketing Genius.
I can normally spot the brands started by factories very quickly. Here are some tell-tale signs.
The factories use the word “Garments” in their branding/ website. Based on the above phrase “owner/ consumer”, when has anyone woken up on a Saturday and said “lets go shopping for some garments!”. Garments is a b2b phrase not a consumer term. It is not just factory brands that use the word “garment” often brands started by people with a manufacturing background like a former buyer who spent a lot of time in factories.
Quality. Ever since my first visit to a factory in about 1982 in my former fashion life, every factory probably uses the word quality 50 times a day. Of course many brands will use the word quality but not over use it and they will usually point out why it is quality etc. In their b2b habitual way factories tend to harp on too much about the quality of their product because that’s how they sell to their factory customers and that’s all they know. Great for the factory, not enough for the brands sole being.
A common thing in the brands marketing or in its approach, certainly to me anyway. “Here is our brand. Also if you know any big buyers, we can make for them or other brands”.
Many will slip in styles or products that are completely unsuitable for the brand. I can only guess the reason is a client brand of the factory is probably selling bucket loads of something so the factory force it in the brand. Also they will often slip in a few men’s styles or shoes for that Women’s handbag brand they developed to show “We can make anything” another common factory mantra.
Intention. Many factory brands are started with the intention to safeguard or increase the factories output and wellbeing. So immediately the priority is the factory. If the brands priority is to “feed the factory” it doesn’t really stand a chance.
The brands interests must be separated from the factory. I will say that again. The brands interests must be separated from the factory. Now before some successful factory owned brands jump down my throat, of course there are great examples where the factory can leverage the brand, and vice versa for the brand but many don’t, that is a fine line and it is usually best achieved later in the brands lifespan.
Think for a minute. As a factory you have probably dealt with brands so imagine how hard it was for your clients when they started the brand. A new, unknown brand is not going to give you good orders at the start, your clients likely didn’t come to you day 1.
Why burden your brand with any responsibility to act as a sales tool for your factory? Things are hard enough for a brand to succeed. I was actually approached by a factory brand last week. I went to the brands IG and there was one post requesting it’s consumers “we are also a factory, we will pay you commission if you recommend us to any stores or brands for production”. Is that really in the interest of the brand?
Treat the brand like a customer. That is a good way when I refer to keep separate above. It is not always easy as often you cannot have a different team to run the brand. There are often common areas between brand and factory but use common sense. Often successful brands with factory links is when the son or daughter for example come into the business and see the opportunity. That often succeeds but if it does fail it is usually due again to putting factory first.
Factories start a brand, they are used to volume orders or if they are luxury lower but still they expect to get minimum order requirements. Unlikely.
So by the start of season 3 many are already losing patience with the brand. “We don’t want to spend more money making samples”. “We don’t have enough orders”. That’s often when the unsuitable to brand products appear. They also start using the brands profile and website to try to entice private liable buyers and very quickly you have a brand that is just a product list.
For what it’s worth I have met quite a few designers who are employed by factory showrooms and whilst there and doing well they get some funding (mostly funding in the form of making the samples, a startups biggest cost usually) to start/design their brand within the factory a kind of partnership. Again in most cases I have seen season 3 the factory has lost patience as the volumes are small. The factory wanted to start this brand hoping for orders for the factory. Not with the intention to build a great brand.
Recently with one client, a brand started by a factory approached me with many of the above mentioned “mistakes”. We spent 3 months re branding re designing and tweaking. Tweaks like to use fabrics that were always available to ensure small orders could be fulfilled. We also made sure the first 3 to 4 seasons would use as much of the initial sample collection so not making new, new, new all the time. New samples, new costs etc. The important thing I have geared them to is that separate thinking, portioning the brand from the factory and more important a mindset that it will take 3 years to really get it going. The brand was started by the daughter of the factory who whilst still works with the factory we turned her focus to the brands consumer. She represents her consumer when dealing with the factory. We also switched most of the fabrics to organic (another article there:).
It is not easy for factories starting a brand, the key to making a brand work is PERSISTENCE a rare quality shown by factories with their new shiny brand and why should they? Often the people that started the factory used up all the persistence they had struggling to build the factory in the first place and my respect goes out to them.
I could and will one day write a similar article on brands started by sales agents. There are common observations there too and completely different to the above. A common thing I do now with brands that approach me is look “who/ what is behind the brand” it is very interesting.
As per my profile I am always interested to hear from brands that want agents, distributors and retail partners for their domestic and new markets. I have worked with many startups and many large retail/ wholesale brands and everything in between. I like having that mix. At any given time I usually am working with at least 5 to 6 brands. The full list of brands I am currently working with at time of writing is here: https://lnkd.in/evZG8pwC
If you are seriously thinking of starting a brand or have hit the frustrating impatient times by all means do contact me.
How to contact me: If we are connected on Linkedin, message me. Not connected on Linkedin? I usually decline factories that try to connect with me on linkedin. Nothing personal, it’s not my area and the main reason is if I do connect with a factory Linkedin prompts 100 other factories to connect with me. If you are a factory and I decline connection and you have or want to start a brand contact me via the website https://www.fashioncompass.co.uk
And please bear in mind. I don’t do “lets have a chat”. We do an organised call which I charge a small fee for, hence I mention “serious” above. The call is usually more than an hour. When you contact me please give some details on your brand and request my info pack and I will send my comments.
Thank you so much for reading this. Feedback welcome.
My sincere regards
Stephen
-
Fashion, accessories, apparel, outdoor and footwear +. Brands, working with agents and distributors. Minimum Order Requirements for domestic and new markets.
Fashion Compass’s most active area is working for brands from all over the globe to enter new markets or expand their domestic by introducing Agents, Distributors and Retail partners all over the globe. (“Partners” referred to below encompasses all three; Agents, Distributors and Retail partners). to sell and build a brand footprint in their respective territory.
A very common question, more a topic to discuss is asked, usually by the partner first. “What is your minimum order per style” in wholesale or “what is the minimum order requirement” (MOR) with retail partners/ larger distribution.
As you may have read in some of my other articles, I am a great advocate of “act small, think big”, it is worth googling and exploring the principle if you are not familiar.
My rule of thumb is do not have minimums at all. If you are going with a new agent or distributor. I do realise with factories and large brands this makes it hard and I accept and treat all brands differently but there are several reasons I keep minimums to the lowest possible.
With most wholesale brands entering a new territory where they are unknown or even slightly heard of you need to give retailers a chance to test with little risk. No retailer generally piles into a new brand with extensive orders and order for every store they have on or offline they want to not only test the product but the brands ability to deliver and of course the products quality, visual support etc.
For many unknown brands in a new territory, it will be the independent/ specialty stores or smaller growing online, you will cut your teeth on and generally they are more open to new brands in the first few seasons.
As a brand owner or head of sales you are mostly not in the showroom/ trade fair or communication between the retailer and your agent/ salesperson. No minimum orders is a simple statement, clear, easy to remember for the agent if hopefully 4 customers come on the stand. Trust that salesperson to make the call if a small order is requested, they are there, you aren’t. Here are some scenarios and my experience/ opinion to support and supply.
It is obvious the owner of a small shop is buying it just for themselves. In a lot of cases they will wear it and people comment which will lead to more orders.
Retailer wants small order. In many cases budgets are full and the store wants to get an account open with a small order. Partly because they want to secure their areas exclusivity and partly they love the brand and are stretching to accommodate. Do see that as them making an effort in most cases they will come back next season and put down a proper order and not just pieces but really buy into the brand.
For brands that have stock, these orders will be repeated and repeated through out the season and in most cases the repeat order is considerably more than the first.
Bottom line when you say to a retailer “no minimums” they are first more likely to order than the brands who demand minimums and in many cases you are communicating a safe type of confidence for the buyer. Some will actually buy more than your minimums because of this.
Most showrooms, agent or distributor have between 3 and 12 or more brands. Many salespeople will work to the information on hand, sample ticket/ info etc. and there is a lot of thinking on their feet with another retailer waiting to enter the showroom etc. No minimums is clear and far more memorable, and if asked re a brand that demands MOR’s the salesperson can immediately say yes 6 pieces per colour but that (your) brand has none.
I have worked and preached this to brands that do £30 million plus in their domestic markets. I make them realise they are no Billy Big Boots and unheard of in the new market we are looking at. In many ways no matter how big the are I try to get them back to when they began.
The best way to approach a new market for many brands, new, old, big or small is to go back to those early years when you struggled and almost any order/ sale was a victory. That mindset or as close as you can get will serve a lot better than making demands that can communicate the wrong brand ethos. In short no matter how big I was I would rather 5 or 10 small orders in a new territory than none. And believe me it can often be none in the first season, not the end of the world in some situations. But it gives that “We have started!” better than waiting for that another season.
Again, you are not there in the showroom. The agent/ salesperson is and likely knows the store. It may be a really good store, a sign that if this store buys, the brand must be good in the agent’s mind. Confidence all around even if it is somewhat convenient the brands end. It may also be a new store with great things to come.
Equally with retail it is best to start small. One store, or a concession (shop-in-shop) gives the chance to learn, test and opening more is organic and far less pain than opening 10+ immediately only to close 8 quickly. When you are small no-one notices your mistakes!
So when asked “what are your minimums” by an agent or distributor my answer would always be: “ we don’t really have minimum’s, you are there, it’s your call”. That says a lot.
I once had an order from a boutique I hadn’t heard of in Stockholm, a store described as old school and small, luckily still did it as at the time 3 was better than none and I sent the order. Princess Lilian happened to buy one and that store more or less ordered 30 pieces every two weeks and by the end of the season had sold around 200. I repeated it the following season in the best 3 colours and 3 new ones and a slightly different button, follow your winners!
MOR’s in getting a partner or even a sale may not exactly be a deal clincher but when you demand them you may never know what sales were lost.
If this has been helpful please like, share, comment feedback.
Thank you!
Stephen Laundy
-
Entering New Markets/ International Trade. If you are considering Trade Fairs/ Fashion Shows/ Exhibitions. Please read this first!
I hope this article helps if you are considering exhibitions, When is a good time? Should I do a trade fair? How do I go about trade fairs. Every month I am approached by approximately 15 brands, and I am tired of hearing the same story from half of them. Large and small brands who have wasted their money on pitching up at an exhibition as an unknown brand in that market or as a startup hoping desperately that the $1500 (in many cases $5000 +) will launch, save or expand their brand. Every season, I visit another few shows and shocked at the number of new brands, why? Read on, and you will see most of the new or overseas brands I see at shows last season who did no business, did not return and have been replaced by a new batch of new unknown or overseas brands for the following show. It is like a revolving door watching new brands in, and out then the next lot coming in. It’s the same almost everywhere.
Over the years I have attended in excess of 250 trade fairs/ fashion exhibitions across most continents, call them what you will.
Do you tick these boxes?
– Did a trade fair in a new market.
– Relatively or unknown brand in that market.
– Did not have an agent/ distributor in that market.
– Had no meaningful existing trade in that market.
– Returned with enough orders to pay the costs (Av. $3k) of that exhibition or at least pleased with the overall written orders. And by orders, I mean orders not business cards, contacts, potential interest, “decent feedback”.
– doing the same show again next season?
My guess is there are very few brands that turn up at an exhibition that can tick all those boxes. And by all means let me know if you have. Over the years I have seen so many brands pitch up at a trade fair totally unknown, no agent, no existing business, all they did have was just literally hope and in some cases confidence in their product/ collection.
Here are a few reasons I have heard over the years from brands that popped up and exhibited as an unknown brand at exhibitions:
- our domestic market is in a recession, that new market is doing well, let’s do a show there. Note: the fact that country is not in recession doesn’t mean it has a thriving fashion business or any easier.
- A trade fair contacted me and offered me a good price.
- Trade fair contacted me and said nice things about my brand, “it would be perfect for our show.”
- other brands I know are doing it.
- We are now successfully saturated in our own market and expansion can only be achieved elsewhere, let’s do a show.
To be honest, after speaking to hundreds of brands, they see a place and it’s got lots of brands therefore must have lots of buyers and think, this must be the thing to do. “Well if everyone’s doing it, it must be good.”
In my own case, back in the mid 90’s I turned up in Dusseldorf, at the time the worlds largest show as an unknown brand with a stand with the: “We are now saturated” view above. No agent, no existing business etc. I may as well have visited my Grandmother for the weekend, I sold nothing all week. Only when I had a sales agent/ distributor did that market start to work.
I have seen brands both established, and start-ups do exhibitions and stand there for the 3 days and do nothing but collect a few business cards, and most are not buyers’ cards, usually PR, Logistics, the ones you don’t want but it’s nice to have a bit of company and makes the stand look busy. Despite all the hoi polloi, brand value, good exposure comments we go to trade fairs for two main things: New Customers and Orders. Of course, there are extraordinary things that can happen at a show but taking a $3k to$5k punt makes that a gamble.
So, my two key points, when is the right time to do a trade fair and how?
- when you already have 10 plus accounts. (Be that in your domestic market or the new market where the fair is). That is a good barometer.
- When you have an agent who either got the above 10 accounts or can invite their existing customers, knows people in that market and can make the stand busy.
If you really must do a show without an agent or existing customers, there are some things I can suggest considering:
1. Visit the exhibition before you go for a stand. ( If you are desperate as in “our domestic market is in a recession” above) and don’t have time to visit: should you be doing it?
2. On that visit look out for agents/ distributors. Also look while you are there “if I show here, where do I want to be? best location at the fair.”
3. Do this exercise. Look at the list of brands that showed at the last exhibition that were unknown or from other markets and see how many of them are doing it again (without an agent). I have observed a massive turnover of brands that do a show and then don’t do it again. And believe me there are so many brands to fill the space left.
4. Discounted stands or subsidized by government body stands, still involve costs to you/ the brand. There are many government bodies pushing “Go to new markets your brand is wanted”. Even if they are subsidized think of the costs not mentioned, hotels, food, travel, and believe me, ask anyone the price of a bottle of water at these events :).
This is not an attack on trade fairs, I love them, and I see them as a part of the process of growth, entering/ expanding in markets, but I do not see them as a single entity. The old adage, “it aint what you do it’s the way that you do it”. I have done a lot of trade fairs as I said, taken a lot of orders, new customers and met new agents, overseas distributors. They are also great social events (enjoyed more when you took orders). I have always loved the vast diversity of people in fashion and trade fairs can be real fun.
This is a fairly good sign as to when to do a fair: When I did my first trade fair and cast my mind back (1982) what influenced me? It was when I was calling existing customers to come to the showroom, new season and they asked, “are you doing any fairs? it’s easier for me if so”. So, customer convenience, plus they came to the fair, stand looked buys, so more buyers came on. Buyers love a busy stand; in fact, they love a busy brand!
I cannot stress though it really is important to get an agent before you do a show! I would say that wouldnt I as I work with brands to get agents, but equally I have to listen to brands when they approach me “we did an exhibition but…..”
Once you have an agent/ distributor they will often ask, expect if the brand will do a trade fair. There is a lot to say about this but keeping short for here, my opinion is yes, but generally not in the first season. Let both sides get familiar first with brand, product, each other’s companies, logistics, feedback and often the agent has a showroom anyway. But as I say, a lot more to consider there.
Well that’s a glimpse of it. Do get in touch if you want an opinion. I do a one-hour video call troubleshooting/ opinion but mostly brands contact me for new markets. So I leave it with you.
Thank you for reading this, and if you want my info pack, please connect with me and give a preferred email address and links to your site.
Kind Regards
Stephen
I am easily contacted through: https://www.fashioncompass.co.uk
-
A Fashion Compass brief in most languages.
This article is just a quick intro in many languages a brief of our activities. I did it as a post some time ago and a few suggested to make it more permanent. You can always see all the current clients on our Linkedin company page https://www.linkedin.com/company/585762 or visit our website, and contact us: Fashion Compass If your language is missing please contact me or post below. Thank you!
Agentes, distribuidores y socios minoristas, consulte las marcas actuales de Fashion Compass en el enlace anterior: Agenti, distributoři a maloobchodní partneři, aktuální značky Fashion Compass najdete na výše uvedeném odkazu: Agents, distributors & retail partners, please see Fashion Compass current brands in the link above: Agents, distribuïdors i socis minoristes, consulteu les marques actuals de Fashion Compass a l’enllaç anterior: الوكلاء والموزعين وشركاء البيع بالتجزئة ، يرجى الاطلاع على العلامات التجارية الحالية لـ Fashion Compass في الرابط أعلاه: 代理商，分销商和零售合作伙伴，请在上面的链接中查看Fashion Compass当前的品牌：Agenter, distributörer och detaljhandelspartner, se Fashion Compass nuvarande varumärken i länken ovan: Agenten, Distributoren und Einzelhandelspartner finden Sie unter den obigen Links unter den aktuellen Marken von Fashion Compass: Αντιπρόσωποι, διανομείς και συνεργάτες λιανικής, ανατρέξτε στις τρέχουσες μάρκες της Fashion Compass στον παραπάνω σύνδεσμο: סוכנים, מפיצים ושותפים קמעונאיים, אנא עיינו במותגים הנוכחיים של Fashion Compass בקישור לעיל: Agenten, distributeurs en retailpartners, zie de huidige merken van Fashion Compass in de bovenstaande link: Agents, distributeurs et partenaires de vente au détail, veuillez consulter les marques actuelles de Fashion Compass dans le lien ci-dessus: Ügynökök, forgalmazók és kiskereskedelmi partnerek, kérjük, olvassa el a Fashion Compass jelenlegi márkáit a fenti linken:
エージェント、ディストリビューター、小売パートナーは、上記のリンクでファッションコンパスの現在のブランドをご覧ください。Agentai, platintojai ir mažmeninės prekybos partneriai, žr. Fashion Compass“ dabartinius prekės ženklus aukščiau esančioje nuorodoje: 대리점, 유통 업체 및 소매 파트너는 위 링크에서 Fashion Compass의 현재 브랜드를 참조하십시오. Ejen, pengedar & rakan niaga, sila lihat jenama semasa Fashion Compass dalam pautan di atas: Agenci, dystrybutorzy i partnerzy detaliczni, zobacz aktualne marki Fashion Compass w powyższym linku: Agentes, distribuidores e parceiros de varejo, consulte as marcas atuais do Fashion Compass no link acima: Agen, distributor & partner retail, silahkan lihat merk Fashion Compass saat ini di link diatas: ایجنٹوں ، تقسیم کاروں اور خوردہ شراکت داروں ، براہ کرم اوپر والے لنک میں فیشن کمپاس موجودہ برانڈز دیکھیں: Агентам, дистрибьюторам и розничным партнерам, пожалуйста, ознакомьтесь с текущими брендами Fashion Compass по ссылке выше: முகவர்கள், விநியோகஸ்தர்கள் மற்றும் சில்லறை கூட்டாளர்கள், மேலே உள்ள இணைப்பில் ஃபேஷன் காம்பஸ் தற்போதைய பிராண்டுகளைப் பார்க்கவும்: Iiarhente, abasasazi kunye namaqabane athengisayo, nceda bone iiFeshini zekhampasi zeFashoni zangoku kwikhonkco elingentla: ตัวแทนผู้จัดจำหน่ายและพันธมิตรร้านค้าปลีกโปรดดูแบรนด์ปัจจุบันของ Fashion Compass ในลิงค์ด้านบน: Temsilciler, distribütörler ve perakende ortakları, lütfen yukarıdaki bağlantıdaki Fashion Compass mevcut markalarına bakın: Temsilciler, distribütörler ve perakende ortakları, lütfen yukarıdaki bağlantıdaki Fashion Compass mevcut markalarına bakın.
Thank you!
Stephen
https://www.fashioncompass.co.uk
-
Fashion Brands: Agents and Distributors. What should a fashion brand expect from a new agent in a new market in the first season?
I work with brands to get them agents, distributors and retail partners in new markets. Naturally I am often asked by the brands I work with what they should expect in the first season. My normal short answer slightly jokingly is “not a lot”, orders wise that is.
There is no single answer to this, as there are so many variations, but generally if we are talking about the brand being wholesale and relatively unknown (by consumers) in the new market we are aiming for, that is probably 50% of my work and what I have referred mostly to here. A retail or shop-in-shop approach is different because you are immediately in front of your consumer. You will also likely be sticking that store in a place where your consumer will see it.
I have seen many good brands, strong in their domestic market and doing well in a few others in both retail and wholesale that enter a market and not do well. One brand, which we would all know the name of sold quite globally, opened 8 shop-in-shops with a well-known department store group in Germany and was out the door in 6 months. The main reason was the brand overestimated the fact they were not as well known by consumers as they thought.
A local and very reputable German sales agency/ distributor then took that brand on and in the first season sold zero. He had to beg the brand to stick with him and next season sold around €20k. The most important thing, 3 of those orders came from the best independent retailers in Germany, a good foundation. Those three came back the following season and tripled their orders, now really buying into the brand and 5 new ones came on board (largely because they had seen the original 3 stock it) and so on….…. after 5 years the brand was selling more than €1.5m wholesale and was then ready for shop-in shops a few own retail where the bigger turnover is. Germany is probably a more traditional market for wholesale than some other markets so that wouldn’t apply in all markets. But generally, you can see things do not happen quickly.
Incidentally, that brand later decided to take it all inhouse, run from their NY head office, “sack” the German agency who had the brand in over 80 doors. I just checked their website, and they now only have 8 accounts there. Like quite a few bigger brands they didn’t want the fiddly wholesale just the shop in shops/ own store/ ecomm turnover and turned its back on the foundations the agent laid. An accountant’s decision, not a ragtraders decision. A lesson there.
So, if you are a small to mid-size wholesale fashion brand entering a new market I would expect very little in the first season in financial terms. It is important to really communicate with the agent/ distributor to see what feedback he has, but generally opening 3-5 new accounts first season I would say that is OK. Of course, sometimes I have seen brands get a few large orders and some zero but there are always some signs to look out for such as which stores inquired. Good independents are important. They are much more likely to give a new brand a chance. The big-name stores are generally not in the business of establishing new brands, so the agent will likely first look for some quality independents and possibly good quality ecomm or more relative, stores where your consumers buy! If it goes in those stores and your consumer doesn’t buy there is something wrong.
Even if your brand is a large retail fashion brand at home and you are entering on a wholesale basis relatively unknown, my advice is take an “act small” approach. I have seen several financially large brands in their domestic market entering new ones where they are not financially anything, totally over estimate themselves, high expectations and pressures/ demands on the agent/ partner and then throw their toys out the pram blaming everyone but their approach.
Think how long it has taken to get traction in your own market, however big/ small your company is now it normally takes years to build your company from start and evolve into a brand. Well it can take that overseas too. It can take that same persistence you had when you started. So starting small can mean less chance of failure and less chance if you make errors anyway. We are in the fashion industry where, if you get it right growth can happen faster than most industries.
Another key area I work on with brands is which markets to choose as sometimes I meet brands who want to enter UK but having spoken with them, that may not be their best “next step”. In fact, I often look closer to their home. A few years back an Australian brand wanting to enter UK did not have any representation in New Zealand, so I got them an agent there, clearly an obvious next step.
Naturally too I have worked with several brands simply to get an agency for their own domestic country. Your domestic market must in most brands cases be your strongest. If you are not as strong as possible at home, why should you achieve elsewhere?
Choosing the right market can also mean a better start. If your brand is wholesale and a certain product category some markets will have better chances where there are still plenty of independents than say a market where that category is dominated by ecommerce sites.
Overall, the key to a good start once you have an agent/ distributor is to work to each other’s strengths and define those strengths from the start.
I am always keen to hear from new brands. Let me know with a short message, supply an email address or contact me through my website https://www.fashioncompass.co.uk and I will send my info pack with references etc. I do charge a small fee for the initial call, usually 2 hours in all and all explained in my info pack. The small fee is refunded if we go on to work with each other. I do this thoroughly as the “let’s have a chat” approach does not generally work in my experience.
Thanks so much for reading all feedback welcome!
Kindest Wishes
Stephen
-
When a fashion agent / rep or distributor asks for Samples. A guide for brands, designers and retail sending Samples pre and post agreement.
Firstly, sending Samples pre any agreement between brand and agent/ distributor:
As you may know, in short, I work for brands to get them agents and distributors in their domestic and new markets. One thing that is often asked by the agent is “Can you send some samples”. A natural response when in first discussions with the agent or distributor. Perfectly normal. They want to see the quality etc. Brands are also quick to offer samples sometimes in desperation sometimes just being accommodating.
However when brands work with me and we are talking to potentially 10 agents and distributors or more all over the world this is becoming seriously costly with freight added. I have also witnessed agents/ distributors asking for samples too with no intention of taking negotiations further, thankfully very rare.
I thought about it a bit more using my past & present experience and a bit of future. Willy nilly sample sending can’t continue unless there is a very good reason to.
So, my first suggestion is the agents and distributors stop asking for samples immediately and brands stop offering impulsively and pause and think. For example, does this brand sell online? (That is going to be 95% YES). 100,000,000’s of people are buying stuff online without getting a sample first so do agents really need a sample at this stage? I think in most cases not.
In essence samples are requested or offered largely out of habit, it’s always been like that. But please with buyers placing orders though the many Joor, Nu-Order with no sample, and agents actually selling online/ Zoom etc. not expecting to give their customer a free sample let’s start to break this habit at the negotiation stage for sure.
Brands are keen to talk to the agent, the brand is at fault to not question when asked for samples, so that too must end. Be clear, “we do not send samples without good reason, why do you need them exactly?”. If the agent says “then I am not interested” take his/ her word for it, he/ she aint interested! Not without good reason.
Next time the phrase “Can you send a sample” arises for an agent. Take a step back look at the brands website and if you really need a sample at least offer to pay wholesale less 30% for it then the brand still pays the freight. It is a gesture and shows good intent and that your enquiry is serious. I realize a good agent is checking its quality on behalf of customers but let’s start to stop and think going forward.
1. If it were a Versace diffusion and the brand said “no samples till we sign” most agents would not push.
2. Let’s face it with most brands you can see reviews/ quality online. Most agents/ distributors pre check a brands RRP’s etc. before even speaking, so start to consider the quality research too.
3. Think of the planet, do you really need a parcel before signing/ making a decision to sign with the brand which these days is likely to be sustainable.
Once a brand and agent/ distributor have agreed to work together the agent gets the full collection and of course if it is rubbish, rare but happens they send back/ get collected.
Fashion Compass Suggested approach for Commercial and Premium Brands Sample Accountability after agreeing to start with an agent/ distributor:
The whole aspect of sample costs is generally recognised by both brands and agents as an inconvenience. All brands differ so this is a guideline to adapt to your brand. The aim is: Minimise costs and losses, no-one profits/ loses. Fairness to both brand and agent. Include accountability, responsibility & matter of principle. It is best made clear as early as possible.
Brands policy on samples to Agents and distributors:
Like any business “BRAND” has to be accountable for all stock including our losses on sample collections.
All samples will be invoiced at 45%* of the quoted Wholesale price on the linesheet you receive. E.G. A £/ $/ € 50.00 at wholesale will be invoiced to the agent/ distributor at £/ $/€ 27.50.
The samples are on a “sale or return” basis. If any samples are to be used for marketing purpose, please inform us prior for approval along with style nr/ qty for credit note information.
When the agent/ distributor no longer needs samples, they may sell the samples locally.
Alternatively, when the samples need collecting please notify us by email which samples, and quantity so we can arrange collection.
Any outstanding amounts on the invoice will be agreed bi-annually and settled.
* 45%. This % will depend on your cost to wholesale margin, we suggest % that shows you are near your “landed” cost price.
Thank You for reading, feedback welcome. I hope this helps. If so it is really useful if you can like, share and please by all means comment/ feedback.
Stephen Laundy
-
When is a good time for Wholesale & Retail Fashion to look at International Markets and partners?
I hope you can see from my profile; I am fashion or prefer the old school term a ragtrader. I am not qualified in the whole picture of retail, no CFO and no operational masterclass and if you read my other articles, you see I don’t like the word Expert for me in an ever-changing industry. In the 80’s and 90’s, or my former life as I prefer, I built up 400 (I only intended 3) concessions or shop in shops and had 2 or 3 retail shops myself along with supplying 1000’s of small, larger and chain stores.
What I do today, best explained on my LinkedIn profile, is working with brands to find retail partners, and the other way around, working for large distribution partners to source new brands for their territory.
I work with all kinds of brands, wholesale, retail in all fashion etc, but this post is about what I call the “bigger deals” I have been involved in since starting Fashioncompass.co.uk , namely finding large operators in new markets that can facilitate the larger brands such as High Street, premium and luxury global brands. Partners that can offer master franchise, wholesale distribution, shop-in-shop, ecommerce etc. Generally where the brand supply product, shopfit branding and the partner the local know-how, rents, marketing etc.
I am good at bringing these together. I have an exhaustive, continually growing database of partners in India, Asia, Australia, South Africa, Latin America, Middle East and more. Once I have worked with the brand on a Partner Presentation, I go my merry way and start to reach out to the right people.
One of the more common responses ( about 15%) I get from the partners, once we get past the initial obvious questions “ I will discuss this brand with colleagues/ board and get back to you”. ( by the way, one distributor actually replied two years later, “sorry re the delay……..”:).
Also, this is the part where I have to say I cannot name any clients here, nor the brands or distributors I was involved targeting sorry, NDA’s but also, NDA aside its not right for me to do that in this case so please use your imagination, though as its more about the topic.
So the topic is about taking on new brands in troubled times be that an economy or the actual partner, normally once the board has discussed it I quite often get the reply: “The economy is not good here, or we do not see retail growing over the next few years, or we have had a tough year.” You get the drift.
Now this is where I am stumped. Because to me, fashion and some other industries are different, they buck this trend.
Only recently, I emailed the profile of one of the UK’s fastest growing retailers to a Malaysian distributor, who came back with “we do not feel it is the right time to bring in new brands…. retail forecasts are not good”. I really felt like replying, this isn’t retail its fashion. Take today after Covid. Brands like Eco Alf, Allbirds, Aviator Nation would you wait for the retail air to get better if these brands were up for grabs in your territory? Not me. as a ragtrader, I’d say that’s the perfect time to bring in a new brand when others are floundering. In 2008 the big downturn, I cannot remember anyone growing as fast as brands like Superdry, Jack Wills, Kate Spade (yes, I mention some names, its different:). Relatively newish but fresh and competitive brands at the time on the international scene. The brands that had grown 2000 to 2008 were exposed, been around the block, getting outdated, not exciting but more important raising prices and rents, these new brands were perfectly placed, and the retailers/ partners that did jump I would reckon fared better taking on new brands than those that didn’t.
Equally around 2011, I was involved with a subsidiary of one of Asia’s largest companies that had started to roll out stores for some real big global brands in Greater China and offered a “made in heaven” partner to any brand. I worked with them to identify some leading targets and I went after those. One brand was a global, household commercial retailer with over 2000 stores worldwide. I eventually got the head of international and the partners head of brands together. It was the type of meeting I was becoming familiar with. Confidently, I butted in and said, look guys, why don’t we just get your respective owners together at dinner to discuss this. To me it was a no brainer. I even worked with the respective owners’ secretaries to arrange a time where private jets would collide (not literally :). Long story short, when it eventually went to the board (of the Asia subsidiary mother company no less) the information I was given by my contact was: “The board do not see retail as a growth area in this region over the next 5 years…….” to which I said this isn’t F (I swore) retail this is X (X= the brands name).
And yes, I do realise occasionally the response “the economy is not good” is a polite way of saying, “we don’t like or need this brand”.
On the opposite end of the scale over recent years , although it has stalled with Brexit, many many brands and retailers have looked at UK’s and other markets that are/ were “strong economies” and thought: we need to be there. Sometimes just a presence for the brand value and sometimes because their home economy was not good ( especially Italy and Spain). So here is a different scenario, Yes, the figures and forecasts of retail/ economy were good, but they overlooked the fact in fashion, every brand in the world wanted to be in London/ UK. The UK has profited immensely, at trade fairs, rents, marketing from brands peering over the fence, it looks good there and many of those brands were not up to it.
I would say as usual it’s about the strength of the brand and a well-matched partner. Equally as my favourite brand did entering China lets go and open one store and see how we do. I was very pleased for them doing so well as so many distributors looked too much at economy and not enough at the brand/ the business. I also love it when big brands/ retailers have the ability to act small. Think big but act small.
And of course…………..if you are a brand and want to discuss markets, or equally a distributor or e/retailer and want to source new brands for your territory: leave a comment below and I will send you my info pack. The store Options above used our service to source new brands as have many others.
All pics supplied by clients former and existing.
Many thanks for taking the time to read any of this and I wish you all well, comments welcome.
Very best regards
Stephen
-
What is the difference between a sales agent/ rep and a distributor & what are the main advantages/ disadvantages? Fashion Agents, reps & Fashion Distributors. Expert Advice *
Who could benefit from this article? This is specific to fashion designers, apparel, accessories, footwear and some outdoor, emerging and emerged. Luxury – Premium- Commercial. Retail- Wholesale. For larger retail brands requiring retail partners in new markets to open stores and ecomm, some of this is still relevant but this mostly reflects the wholesale b2b, even so the retail partners are an area I have done many introductions and is an extension of the below. Working with retail brands to set up wholesale is also a favourite area for me. This article is intended a quick overview. I could write a book on this, some actually have. In most cases every brand/ agent/ distributor introduction I have been involved in was different, so I figure, why write a book when no two are the same? Also most articles I have seen on this were by a shipper or legal or other service provider than someone like me, a ragtrader for want of a better word. (see profile).
“What is the difference between a rep sales agent and a distributor?” is a question I am either often asked or it needs explaining if the brand deals with me.
AGENT:
An agent basically gets a territory and a collection of samples from the brand, or nowadays may just work with a b2b site with a brand/ designer like Joor Access, Faire or Nu Order ( by the way those b2b sites would have made almost any book written 3 years ago out of date today). The agent shows the samples to buyers or invites them to their showroom/ exhibition and takes orders. The agent will have agreed a commission percent with the brand. A normal commission would be 14/15 % today though that too can vary like product category, volume and other things can come into play but to keep this on point 14% is a good one.
Some agents also charge a fee and commission. In my experience that can be fine and sometimes not. That’s another article for another day but if you are a brand facing that situation, by all means reach out (see below**).
The brand then takes the order, makes it or gets it out of stock and the brand invoices, sends the goods and gets paid. That can be a challenge shipping to regions that will incur duty etc. again, that’s another article another day. The brand gets paid by the retailer the agent sold to then on receiving an invoice from the agents the brand pays the agent 14% commission of the wholesale price without Sales tax/ VAT. So on e.g. a $/£/€ 7000 order the agent will get $/£/€ 980 net.
DISTRIBUTOR:
The word distributor in fashion can mean different things in different territories/ countries and distributors can come in different guises. For my purpose I usually explain my definition in short: a distributor does the same as an agent but when we get to the step of the agent sending/ emailing the order they have taken from a retailer to the brand that doesn’t happen, yet! The distributor keeps all the orders taken by their salespeople (some of which are independent agents in their territory) then at a time agreed with the brand the distributor collates all the orders and gives one big order to the brand. When the goods are ready the distributor buys the goods (maybe by L/C, bankers draft/ guarantee etc.) The distributor will have a discount on the brands wholesale or retail price. At wholesale that is usually 30%, sometimes 20% sometimes 40% discount. (again another article for another day, do reach out**). The distributor in turn sells the goods to the retailer with a markup that will be near your wholesale price.
There are advantages and disadvantages to both. The main advantage of an agent in my opinion is the retail customer is yours, you have direct contact with them when it comes to invoicing etc. and you know who they are. Of course they are the agent’s customer but still there is a relationship large or small with the retailer. With the Distributor the customer is theirs as they are buying from you, selling to them. In the event you start with one and three years later with 50 retail customers you lose the relationship with agent or distributor with an agency you can fairly easily maintain the customers, you have their details and sometimes more. With the distributor that may not be the case and you may lose most of the clients. Many years ago back in the early 1990’s our brand was selling £2m+ through a distributor in Holland. They started to copy/ import their own very similar brand and we had a big argument and stopped supply. We only managed to salvage around £100k sales. Had that been an agency I am not saying it would be plain sailing, but I believe we could have maintained £500k and more important a strong brand foothold.
The main advantage having a distributor is convenience and efficiency. It can be really taxing (literally) to work with an agent thousands of miles away, getting the goods delivered to retailers , duty paid. (Large and small Retailers generally wont/ don’t/ really don’t like importing) You the brand, wherever you are, wherever the retailer is must serve them as if they were dealing domestically in most cases. . Then you have the finance, customer service etc. So having someone that end to import is much easier and far less hassle which usually translates less costs despite a hefty discount .
I will say there are probably 50 agents to every distributor. Distributors generally don’t like starting with brands unless first year is likely to be $75k approx. so I have worked many times with brands to first get an agent, and later a distributor once sales are a bit more substantial.
Note: with both agents and retailers naturally there can be clauses in contracts to veto/ approve the retail customers so you will know who, even if just for your stockists page.
With commissions and discounts they are varying these days but in my experience the higher they are normally the better the agent is. It is usually not a case that they are trying to have one over and it is worthwhile speaking to the agent/ distributor why their commission is what it is. Some have inhouse social media for their brands (handy of foreign language), some have a permanent showroom or do trade fairs etc.
I have now introduced around 300 agents/ distributor as well as retail partners (basically they are distributors who can also open stores for the brand). As I said not one brand to agent/ distributor case has been the same. But the above is a good template/ place to start.
And never forget the number one rule! Do not let an agent or distributor take an order unless you are as certain as possible you will deliver it. They hate that, and quite rightly.
Sustainability within fashion is now naturally a huge issue and some agents/ brands are only taking sustainable and that is growing. It is an area I cover with all brands I speak to: non, partly or full as can be sustainable.
If you want to contact me I am easy to find. Just Google “Stephen Laundy Fashion Compass” and contact me through the website or if you are on Linkedin reading this connect/ message me.
I love hearing from new brands! When a brand/ retailer/ designer contacts me to look at their brand, I do! Then I send them an email with detailed references for my work, how I work and an offer as next step to do a video call. In 15 years none of those calls last less than an hour, usually an hour and a half, hence I charge for it. The fee for the call (£75 or £55 for young designers/ startups) is refunded if we go on to do some reasonably substantial work. Conglomerates have paid it, startups and everyone in between too and some of the references will be specific to the call. If you are interested in working with agents/ distributors domestically or international trade for your brand, designer collection or fashion retail please request my info pack and I will also add comments specific to your brand.
The Head of sales for a £30million pound knitwear brand: “that is the best £75 this company has ever spent.”
I hope it is useful. Thank you for reading.
Sincere Regards
Stephen Laundy
Fashion Compass London Limited.
(All photos in this article were supplied by former or existing clients)
The references to * and **:
* I put “LinkedIn expert advice” in the title as apparently Search/ Google likes those words 🙂 I would never refer to myself as an expert in an industry that changes so quickly and even 40 years in the trade I am still learning. This is the opinion of an experienced and very active person with agents and distributors and my advice is always and only based on “if I were in your position”.
**If you are not ready for agents/ international, inquisitive, keen to know more without further work I do also do a nonrefundable “an hour” video call £45. I have done over 200 of these calls in the last 15 years. And I can supply references for calls as a separate entity. The calls can save a lot of time and money going forward.
Fashion Compass supports: Prince’s Trust (14 yrs.), KOCO Knit One Change One (7yrs), Goods For Good (3yrs), Browsio (2yr). Either time volunteered or donations.
-
Hello World!
Welcome to WordPress! This is your first post. Edit or delete it to take the first step in your blogging journey.
-
Subscribe
Subscribed
Already have a WordPress.com account? Log in now.
fashioncompass.blog 