When fashion becomes unaffordable
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News of British retailer French Connection's severe profit warning has the industry speculating about the cause of the once popular fashion chain's approaching demise. People bandy about the terms "branding" and "not sufficiently attractive product range". However, "pricing" appears to play the bigger role in the equation.
Once upon a time French Connection was an affordable, fashionable way to keep up with the Joneses of Cadogan Square. However, with the arrival of other high-street stores like Zara, FCUK's prices have started to look increasingly disproportional. Even French Connection's founder Stephen Marks admitted to the store's overpricing, which has prohibited it from competing properly with the likes of Next, Warehouse and Zara.
There is an unspoken rule for those who like to spend money on fashion but who do not carry the last name "Hilton": you either spend a (relatively) great deal on a very exclusive item like a luxurious shearling coat or a pair of Jimmy Choo's. Or you spend very little on a variety of trendy outfits from high-street shops and markets (think Camden and Portobello). However, the message is clear. The high street is for bargains and Sloane Street is for splurges. So, when a high street retailer begins to sell its creations - still of high street quality - for Sloaney prices, shoppers become weary. And offended. It is as if said retailer is cheating its customers out of the great bargain they had become so accustomed to. The experts can quibble about the branding all they like, but the bottom line is always the price.
Yes, French Connection sold too many basics and not enough fashionable items, but this would not have effected the books as much if the company had matched the pricing accordingly. Just look at the Gap. In an economy where most of us need to practice caution, price/quality ratios should mirror the markets and one's competitors. After all, location is everything. If consumers want upmarket, they will go to the upmarket shops.
High street shopping stands for trendy and affordable. The mix has always worked well. Don't fix it if it ain't broke.