Wednesday, March 7, 2012

Vanity Sizing

While I think the discussion is a good one and important to make a decision about, the premise in the below article is flipped in my experience. Typically, designer brands tend to have smaller sizes and mass merchants more vanity sizing.  What do you think?

1.  More expensive brands run larger - agree or disagree

2.  Having a standard size guide would make my business better - agree or disagree

3.  Vanity sizing is helpful - agree or disagree. 

Clothing designers appeal to women’s ego with vanity sizing

BY SARA BAUKNECHT February 29, 2012 11:33AM
Story Image

The retail world is flooded by a sea of clothing sizes. To find the right one, women must tread through “misses,” “petites,” “pluses,” “juniors” and more, depending upon the store. And even after discovering a favored fit in one brand, the same woman may balloon to a larger size or slip effortlessly into a skinny-minnie one by another designer.

In many cases, this seesaw in sizes is the culprit is vanity sizing, or the fact that the U.S. government doesn’t enforce a standard of measurements for women’s clothing sizes .

A standard measurement chart does exist, but it may be next to impossible for the government to require designers to stick to it, says Paula Minydzak, an adjunct instructor in fashion for the Art Institute of Pittsburgh, who also is a tailor at a Men’s Wearhouse.

Standardizing sizes can complicate transactions between domestic and foreign designers whose countries sometimes have different measurement charts, she says. It also may turn some women off from shopping at first if they wear a larger size under the government-regulated measurement chart.

“It’s the equivalent of sticker shock,” Minydzak says.

So for now, the size guessing continues, which has its pros and cons.
 For designers, the flexibility to come up with their own sizes helps them create and market clothes for their target consumers — and their egos.

“It’s easier for someone to sell clothes when they make people feel good,” Minydzak says. 

“One of the best ways to do it is make a woman feel like she wears a smaller size.”

But toying with people’s perceptions of their body image can have consequences. In 2005, Kinley conducted a study in which 75 women between the ages of 19 and 58 were instructed to try on different sizes.

“What I found was a strong age relationship,” she says, adding that women in their 20s seemed to care more about fitting into a smaller size than those in their 40s or older.

In another study, from 2003, Kinley and some students measured about 1,000 pairs of pants by different designers of similar styles and cuts and found “statistically significant differences within some size numbers,” she says. She also observed that clothes by designers with higher price points tended to be more generously cut, with Ralph Lauren and Calvin Klein among the most forgiving.

Minydzak has noticed that clothes by more affordable brands tend to run more narrow in the sleeve and leg.

Many brands view their sizes not as mind games but as ways to better relate to shoppers’ needs, wants and body types.

For clothier Anthropologie, the goal is to sell quality clothes with consistent sizes that appeal to the body shapes and lifestyles of its target customer base of 28- to 45-year-olds, says Wendy Wurtzburger, chief merchandising and design officer.

“Our intention is to have a size grade for her that is flattering but is honest and isn’t trying to make her feel like something she isn’t,” Wurtzburger says.

Other stores have disregarded the typical double-digit numerical-size chart altogether. Sizes used by the clothing chain Chico’s range from 000 to 4.5, with the former being for women who usually wear a zero and the latter for a size 22.

Studies have found that the public wants clothing labels with more sizing information on them, Kinley says. Stores such as Macy’s and Lane Bryant recently have launched Web components with tips on what sizes, brands and styles may be best suited for their customers.

But whatever designers come up with next, comfort and satisfaction — not size — should be the motivation behind a purchase.

“We have to use sizes as a guide but respect the fact that that brand does not mean you are that size,” Minydzak says. “You are your size. Your body is your body, and there is no brand or no standard set of measurements that is going to be made exactly for you as a woman.”

Monday, March 5, 2012

The role of a business owner


For most of us, it’s been a while since we sat down and asked ourselves big questions about our business.   I’m not talking about the kind of questions like, am I going to make payroll, I’m talking about strategy, your customer, and last but now least, are you happy doing this?  I recently read a blog post on paraschopra.com about the three simple questions to ask yourself to validate your start up idea, but I really think some of these thoughts also apply to existing businesses and are important to think about at least once a year.

Strategy

I hate the saying: you need to work on your business not in it.  Probably because this was one of my biggest downfalls at my first company, Kate Boggiano.  Owning my own clothing line was great, but because of lack of funds, I wasn’t able to staff it like I should of which meant I was the designer, lead sales person, technical designer, production manager, and would even ship packages.  Looking back on it now, these things were totally necessary for me to do in order to get things done, the traditional way.  Sometimes in an industry, the traditional route isn’t the one that is most profitable or accessible to you and your situation, and THAT’S OK!  There is no “right” way to go about making a profitable business – but there might be a “right” way for you.  Case in point, when I started Kate Boggiano, I was determined to produce a tight 2 season line that had some of the best blouses in the business.  Many years, stores, and sales reps later, I ended up designing a HUGE line that I didn’t really believe in anymore because I listened to what everyone else was saying and I thought I needed to have 40 SKU’s/season in order to sell into enough stores.  With a staff of 3, this made life unbearable and I burned out as did my staff.  I think we would have been more successful, believed in the brand more, and done an all around better job if I would have had the courage to do things differently, kept the line small but kick ass, and believed in the power of supply and demand.  In an industry as old as fashion, things will change eventually.  We are seeing it now with the new mobile technology especially with the era of the internet upon us.  Soon, customers will be able to walk into a store, take a photo of a clothing item, and be able to compare prices against everyone else on the internet.  Scary but it’s coming!  The Stock Flock is addressing this problem from an inventory point of view.  By giving stores the most up to date inventory availability, we are allowing the store and the brand to take advantage of the internet before the end customer is able to.  My advice is to take some time and really think about ways in which you think you could make a change and add an efficiency or decrease the amount of steps needed to complete a task.  You’ll be amazed how much taking time to strategize will save in time and money which will equate to a bigger contribution to the bottom line.

Your Customer

In fashion, we are really good about painting a picture of who our “girl” is.  I can’t tell you how many design meetings I’ve been in where we’ve painted an elaborate picture of what our downtown, 20 something, brunch loving, gallery opening, friend influencer is doing at the exact moment when she finds our must have blouse hanging in the coolest boutique on her vacation to Sonoma, CA.  Sound familiar?  The funny thing about these moments is that who much time do we spend thinking about how many of these “girls” there actually are and exactly how are you going to interrupt their life to reach them in a way that will make them buy your awesome blouse instead of your competitors.  On the flip side, having generic looking clothes that anyone can find anywhere is targeting a market that is too big and hard to reach because you have created very little differentiation between your brand and the others hanging on the rack.  As a small or medium size company, knowing who your customer is, how many there are, and how to approach market penetration of this customer will be some of the best thought out strategy sessions there are.  After all, if you’re looking for the girl in the example, do you really want to spend a lot of money at a Midwest tradeshow?  Probably not.

Do you wake up on fire about your business, everyday?

This is tricky but important to think about.  Owning a business is one of the bigger commitments in life and liking your business and the industry in general is very important.  Most likely there will come a time when you find yourself really disliking something you are doing.  For me, collecting money from my late paying stores was the absolute worst.  I found that for me, it strained my relationship with my stores, made me feel poorly about the state of the business, and I found myself wasting a lot of time in preparation to make those tough phone calls.  After a lot of thinking and researching outsourcing, factoring, and ACH, I decided to train someone else to do it within our company and it made all the difference.    If there is something you know you don’t look forward to and it’s disrupting your work flow, figure out a way to get it off your plate.  Sometimes the anxiety it causes is not worth the money you save by doing it yourself especially if the anxiety can stack up in such a big way that it changes your overall feeling about your business.  Additionally, your strengths as a business owner are most likely well developed and your time will be better spent performing these strengths as they will be the differentiation between you and your competition.

While owning a startup, small, or even medium size business is fast paced and exciting, it’s very important to take yourself out of the day to day and strategize.  Afterall, you are the leader of the organization and not only do you need to figure out how to get things done, it’s also important to see things coming before everyone else.

Happy Leading!
Kate

Monday, February 27, 2012

Quick tips to increase your stores revenues


Retail is hard and sometimes very unreliable.  Here are some quick tips to make sure you maximize all of your opportunities and boost your store revenue.

  1. The cash wrap.
It’s the oldest trick in the book and one followed by almost all stores selling all kinds of merchandise.  How often do you change up your product assortment at the cash wrap?  Try some low price but high value/need items such as fashion tape, or your best selling shape wear line.  Special and unique jewelry also does well such as fun cocktail rings displayed in a way that encourages the customer to try them on and get attached while they are waiting to pay.  Cards such as birthday, thank you and any other occasion that your customers might be purchasing a gift for is a no-brainer.  Just make sure you offer free gift wrapping as well.

  1. Customer notes.
Everybody loves to be recognized.  Train your staff to do this as well as keep notes on their size, their likes and dislikes, special upcoming events, and their favorite brands.  When to new arrivals come in, search your customer database for customers who might like that item.  An excel spreadsheet is a fast and easy way to organize these preferences if your POS doesn’t have this capability.

  1. Team training and rewards.
From time to time, customers may be reacting to how your staff is treating or neglecting certain product.  If you have merchandise that is not selling and you can’t understand why, tell your staff more info about it.  Run a contest with the sales team and reward the highest selling staff member with a special treat.  You’ll be amazed what a little motivation does to that slow moving item on the floor.

  1. Mark down slow moving items.
We all make mistakes from time to time and every once in a while, your customers may not love an item as much as you did.  After you exhaust the avenues of extra training, incentives, and possibly even a swap with the manufacturer depending on time, terms, and relationships, markdowns are needed and important.  Sometimes inventory turn is more profitable and important then just looking at straight margin for the long term health of the store.  Additionally, markdowns are the fastest way to freshen up the store and make everything look new again once the items are gone.

  1. Mind your best sellers, always!
It is so important to understand what customers are reacting to and making sure you have enough of it to fill their demand.  Keep an eye on all your best selling items and make sure to stock them accordingly.  Best sellers are your clearest way to high profits and a good business as they become almost certain cash.  Why wouldn’t you keep them in stock – it’s a no brainer! 

  1. Automate your reorders.
Being able to react quickly to customer needs and wants is really important.  With new mobile technology and extensive internet availability, it is more important now then ever to be able to transact with a customer at the exact moment he or she wishes to purchase.  If you allow them to walk out of the store without an item they want, competition is so fierce that most likely, you’ll loose them forever.  Check out www.thestockflock.com and sign up to find out when our automatic reorder system will be available.  It will change the way you manage your inventory and increase sales in the process. Plus it’s FREE!

To higher revenues!
Kate

Friday, February 24, 2012

The 1871 Hard Hat Tour

The Chicago tech community has gained a lot of noteriety over the last few years.  From Groupon to GrubHub,  Chicago is flexing it's tech muscles most recently with the announcement of 1871 to launch this spring on the 12th floor of the Merchandise Mart.


From 1871's website:

The story of the Great Chicago Fire of 1871 isn’t really about the fire.
It’s about what happened next:



A remarkable moment when the most brilliant engineers,
architects and inventors came together to build a new city.
Their innovations – born of passion and practical
ingenuity – shaped not just Chicago, but the modern world.



What started 130 years ago continues to this day.


Chicago’s brightest digital designers, engineers and entrepreneurs
are shaping new technologies, disrupting old business models,
and resetting the boundaries of what’s possible.



If that sounds like you, join us.


Come to a place where you can share ideas, make mistakes,
work hard, build your business and, with a little luck,
change the world.



Welcome to 1871.


Last Saturday, I was fortunate to go on a Hard Hat tour with some of the other Chicago Tech startups and the community.


There were a TON of interested folks there to find out more about 1871!

Apparently tall guys go into technology...

The space is HUGE and the map was almost overwhelming!

We were able to hear about cool building details that reminded me of my old office.  Steve is telling us about the old fire door they uncovered during renovation (finally migrated to the front).


So some cool details about 1871 to share:


1.  Announcement came January 18th, 2012
2.  The CEC (Chicagoland Entreprenuerial Center) will be "running" the space when it's up and going
3.  You can apply to be a part of the space here.  Shared desk space is $250/mo and a reserved desk is $400/mo (all mo to mo leasing).  There will also be night and weekend passes for $125 as well as some sort of punch card for interns and part-time staffers.
4.  A big part of the space will focus on education.  First dibs go to residents and if space is available, they will open it up to the community at large.
5.  Here are the fun facts from the tour I caught:
 - 1871 is over 50,000 square feet
 - There will be a coffee shop right in the entry way - sweet!
 - 1871 will have an event space that will house about 250 people
 - 30+ conference and phone rooms
 - 100 reserved desks and about 220 shared desks
 - 3 classrooms
 - Accellerator space that will fit up to 40 people
 - 6 offices for investors and schools
6.  The state of IL and Governor Quinn just came out in support of 1871 pledging a $2.3 million investment to help 1871 foster and launch digital start-ups.
7.  The open date for 1871 is sometime this spring and they are announcing the inaugural companies sometime in the next few weeks.


Pretty cool!  I applied for The Stock Flock, so fingers crossed, this spring, we might get out of my basement and into the Merchandise Mart - how ironic!


Have a great weekend!
Kate


PS if you're interested in learning more about 1871, follow them @1871Chicago "like" their FB page and check out their website

Wednesday, February 22, 2012

The evolution of the POS (point of sale).

Back in January, I decided to fly to NYC for a day and walk the expo floor of the National Retail Federation's Big Show.  First off, that was the biggest show I have ever attended in any industry and second, if you are in the business of selling anything, I suggest subscribing to their newsletter if you don't already (and while you're there, check out shop.org).


 I attended the show so I could attain some information about points of sale and more specifically, if the current POS is moving to a more "open" format.  My idea about The Stock Flock is to one day partner with a progressive POS provider and have our database pre-loaded with that POS partner's package.  The exciting point is that yes, all new POS systems are open and many of the old have API's!  Great news, but what does this mean for you?


1.  Shift in the market is towards open, cloud based POS systems.  This is great because the days of having a server run your business is close to being over.  Cloud technology is faster, cheaper, more efficient, and has the ability to be accessed from anywhere (think checking sales on your iPhone while lying on a beach without the headache of calling in).  
2.  Shift towards handheld devices.  These have been around a long time especially in electronic stores such as Best Buy, but did you ever think of arming your staff with a iPhone, iPad or some other handheld credit card swiping machine?  I think these are great for retail events out of the store as well as big sales or special occasions.
3. Integration with cross-channel partners.  Gone are the days of the excuse that I don't want a website because my inventory online won't match what's going on in the store.  The more open POS systems will be able to integrate your inventory into the backend of your website.  


What is the current POS systemt you use in your store?  What are the good things and the items that you wish you could change if given the opportunity?  Let us know!  


For all inventory availability issues, check out our solution and let us know if we could help make your store more profitable!


Cheers!
Kate

Friday, February 17, 2012

7 of my favorite FREE business tools (and why to use them)

Having a business is time intensive and expensive and believe me when I say that IT needs are the furthest thing from my mind when I wake up in the morning.  There are however, some really neat and very FREE tools that have been around for a while that are worth looking into if you haven't already.
1.  The Social Media guru - Hootsuite 
Why:  Social media can turn into social gossip hour if you're not careful.  Run an efficient and meaningful social media campaign with the help of Hootsuite.  Pre-plan and schedule all tweets, facebook posts, and facebook page updates when you have time then set your preferences to text messages when someone responds so you don't miss out on anything.




2.  Your own personal internal server - Dropbox
Why:  Access and share files in one easy to locate place - the cloud!  This is great if you are traveling and need to update something or pull something off the server to use on the road.  The really great part is that if you make a tiny edit to a small part of the file, it will sync in seconds and in multiple places at all times.  Check out the iPhone and iPad apps for Apple lovers.




3.  Your better brain - Evernote
Why: Evernote is a Free app that can help you store and organize notes and keep them in sync with a multitude of devices.  The app lets you tag and store your notes into "notebooks" that mean something to you and you can revisit later. Here are some uses for Evernote (both for business and personal use!):
Recipes - really great to have on your phone when shopping at the grocery store!
Going Paperless - Evernote allows you to scan every important document (receipts, bills, statements, etc) in your account and then arrange them in tags and notebooks so they are always easy to find.  Evernote has a good text recognition feature which makes any sort of writing in your pictures searchable and easy to store.
Inspiration - Come across new ideas, write them down and then forget where you put them?  Evernote is a great way to capture these ideas then access them from any device you have installed Evernote on.
Recording anything even notes to yourself via sound - Record classes, conferences, music, or just notes to yourself while you're driving.  Evernote can record sound!
Lists - If you are like me, you have lists of lists and then you loose one and the rest don't mean as much.  If you put them in Evernote, they are all there for you anywhere you need them!
Web reads and content - I hate bookmarking.  My list is a mile long and I never search because it's a pain to scroll through the tiny text.  With Evernote, you can clip any web page or content directly to Evernote while surfing then categorize as needed.
Email - Evernote allows you to send an email with content and files attached directly to your account to save and tag.
4.  Free email or even better email from your company's name - Gmail and Google apps
Why: The difference between gmail and google apps is pretty basic:  1. gmail is free and google apps are not, 2. gmail is generic @gmail.com and google apps are @yourcompany.com.  For both gmail and google apps, you get the same great benefits which are:
1.  50 times more storage then industry average
2.  Mobile email, calendar and IM access
3.  99.9% uptime reliability guaranteed and it synchs with mobile devices
4.  Information security and compliance


5. Create content for your blog on the fly - delicious!
Why:  Bookmark and automatically publish content to the web via RSS.  If you have a blog, you need delicious!


6.  Create beauty (and interest) with Instagram and Pinterest
Why Instagram:  Instagram is a photo-sharing site that adds photos and text.  Other instagramers can "like' and commnet on images and follow users to view their images in their own feed.  Users can also easily post the images they upload to Instagram on Twitter, Facebook, and Flickr if they choose.  I love this for store buying trips to push out pieces or ideas for future seasons to customers!


Why Pinterest:  Pinterest is a social bookmarking site that focuses on images - sort of a mashup bebetween Delicious and Flickr.  It's really visual and would be great for designers trying to get a feel of what people are thinking is in or out when designing a collection.




7.  Email is still king - MailChimp
Why:  MailChimp makes it easy to design exceptional email campaigns, share them on social networks, integrate with web services you already use, manage subscribers, and track your results.  With easy to use templates and great reporting, you'll never wonder what your customers are thinking, because you will know what they are thinking.  Email is still one of the biggest drivers of conversion rates - what are you waiting for (it's free!).


Hope those help to declutter your life!


Cheers!
Kate









Thursday, February 16, 2012

A downward trend - manufacturing apparel in China

My first experience with manufacturing apparel in China came in 2004 when I was a technical designer for Ralph Lauren in NYC.  I was a fresh slate and had no opinion of China when I started other then I knew it was less expensive to manufacture there than it was in the USA.  Over the course of my employment as a technical designer, I developed a very strong anti-China opinion.  From horrible rashes on my arms I received from opening boxes full of our product that came from the factory floor (all production items are "cleaned" unlike the samples we received - I wonder what kind of chemicals that entails) to contracting pink eye multiple times from  working with our samples getting them ready for line opening to having over 500 new messages in my inbox from 10 different people working at the same factory asking me the same question 15 different ways, China's positives for me wore off very quickly.  It now seems that for many, their opinion of China is starting to change as well, although I'm sure that the reason is far from human rights and patriotism.

In 2010, China's estimated per capita income was $7,600 - not a lot by our standards, however this is a huge increase over previous years and is higher then other countries where there is talk of the apparel manufacturing industry migrating to in order for manufacturers to pay lower wages. Recently, Bangladesh (annual income of $1,700) was identified as the potential new apparel sourcing hotspot.  Some estimates are as high as export value around $36-42 billion by 2020 meaning the current market in Bangladesh with double by 2015 and nearly triple in 10 years.  To put it in perspecitve, China exported $111 billion worth of textiles and apparel to the world last year alone.  It's going to take a while for the shift to occur.

I came across the blog simply-american.net when looking into the state of China and the author had some very funny ideas about where to go from China next:

Somalia
Positives:  Very motivated workers since Somalia’s estimated annual per capita income is around $600 a year.  Lots of port facilities.  Good cell phone and Internet services.
Negatives:  Complete lack of a central government.  Your manufacturing site managers will have to learn to get along with the Islamist Al-Shabaab group.  Lots of Pirates.
Democratic Republic of the Congo
Positives:  Very very motivated workers since the Democratic Republic of Congo’s estimated annual per capita income is around $300 a year.  Big labor pool as the Democratic Republic of Congo has a population of over 71 million people.  Ability to order your workers around in French if you want since lots of people there speak French.
Negatives:  Well established history of corruption.  Daily production meetings can take a long time since 242 languages are spoken in the country.  Lots of diseases and snakes.
Afghanistan
Positives:  Very motivated workers since Afghanistan’s estimated annual per capita income is around $900 a year.  Everyone has heard of Afghanistan, especially us, the former Soviet Union and the English.  Given long history of exporting opium, exporting clothing should be a snap.
Negatives:  Managing Pashtuns can be tricky.  Very hot climate but no nice beaches.  Finding female workers will not be that easy within the next few years I would guess.
Comoros
Positives:  Motivated workers since Comoros’ estimated annual per capita income is around $1000 a year.  Since the whole country is an island, you might be able to trick your managers into believing that they are actually working in Hawaii.  Good scuba diving for you and your family during your annual production visit.
Negatives:  More than 20 coups in the last 35 years.  Lots of volcanos.  The whole country is an island.


I really liked this tongue and cheek analysis of possible hopeful future production facilities and also agree with the final point of the article.  Instead of dealing with foreign countries, oceans, and corruption, why not just make your apparel in this country?  It might end up being more cost effective, produce less headaches, and even sell more clothing at the end of the day!  People are very aware of where that label states the item is made and the closing argument in many folks minds now a days is Made in the USA!


Happy Sourcing!
Kate


PS - if the cost of holding USA made inventory is what's scaring you, we can help!  Sign up for our newsletter at thestockflock.com!