Category Archives: Business Basics

Stock Market: Lululemon Athletica sells A LOT of yoga pants

Traditionally, apparel is a fairly low margin business. This means the amount of profit made on each item sold is fairly low compared to the cost it takes to make it, so in order to make a sgnificant amount of money, the company has to sell a lot of units.

This is why I have been following the financials of Lululemon Athletica (LULU) with bated breath.

Diversity Wunder Under

Lululemon Athletica sells high-design midmarket yoga and athletic wear for women and men. Their projected revenue for 2012 is a mind-boggling 1 billion US dollars.

To compare, Gap Inc. (GPS) has a projected income for 2012 of 14 billion US dollars. However, Gap Inc is the parent company of 4 brands, spanning the upscale midmarket to budget categories, encompassing all markets. The fact that Lululemon Athletica is making that much in one very narrow category (primarily women’s yoga-inspired womanswear) is absolutely astounding.

EDIT: Just for comparison, Lululemon is trading at $20 more per share than Facebook as of today.

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Rekindling the Creative Spark

I have had my head down developing some new freelance projects and haven’t had a lot of time to think about much else. Also, my sister is getting married in a few weeks so there’s that.

I have been thinking a lot about creativity, specifically my own creativity and how I seem to have misplaced that spark in the day to day work of keeping food on the table and a roof over my head. Even though I now work in a field that is supposedly more creative, the work I’m doing is just as administrative as ever. I think Thomas Edison meant this when he said,”Success is 10 percent inspiration and 90 percent perspiration.”

When I’m in a rut I go back and read Hugh MacLeod’s manifesto “How to be Creative”, which lays out the process very well. But at the beginning of any creative venture, there’s the terrifying moment of facing the empty dot paper. David Seah calls this “The Blankness” and I think everyone is intimidated by this.

The only strategy I have ever been able to successfully implement in this area is doing whatever I feel like doing to get warmed up. This usually takes the form of improv piecing, which I can do without thinking and is very relaxing. Breaking free of the pressure to do something of value helps clear my mind and find a little more direction.

An old friend of mine used to say “write drunk, edit sober”, which is a short way of saying “just get started”. Getting started is the most challenging part.

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Retail Trends: Grownup fashion for kids

Another major trend we’re seeing is grownup designs for kids. The most stunning recent example of this is Diane Von Furstenberg for BabyGap.

Honestly, I was floored when I saw these. DVF for babies? Could there be anything cuter than that?

See what I mean?

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Style Evolution

 I have been fascinated by the book Simple Modern Sewing by Shufu To Seikatsu Sha. She takes 8 patterns and gives instructions on how to make 25 different styles from them.

 Here is an example from the book. She made one wrap dress (on the left), and modified the pattern to make two different styles by changing a few details and the fabrics. Most fashion companies do the same thing, for a variety of reasons:

  • Cost  Every time a brand new design is created, it has to be draped or drafted, fitted, altered, and fitted again. This requires the use of a patternmaker, a fit technician, and a fit model. This is expensive. If you just modify an existing pattern, you can eliminate a lot of these steps.
  • Time  When developing a brand new style, there i always the chance that it will just never come out the way you want it to. If you are working with a new pattern that has to be fitted and fitted again, you could run the risk of not having it in time for market. That would be a lot of time and effort wasted.
  • Bestsellers If you had a style that sold out for one season,, it would be silly to just put it on the sample rack and forget about it. By changing a few details and the fabric of a bestselling style for a new season (for example, making a bestselling coverup in a warm fabric and selling it as a winter wrap), you can extend your selling season.
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Fall 12: Menswear Inspiration Sketches

WWD.com has these amazing fall menswear inspiration images from Milan.

The thing I love the most aboutt these is the use and reuse of standard croquis. The ssame pose showing many different looks i such a classic fashion technique.

 

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What’s Your Elevator Pitch?

It’s New York Spring Fashion Week, and this is a marathon run for anyone with a fashion business. When you’re trying to get the attention of the multitudeess of buyers and journalists at the events, you’d better be able to tak fast and be fascinating.
 

Jeffrey Hayzlett, a former chief marketing officer at Eastman Kodak, wrote an HBR blog post about how the 30 second pitch is now an 8 second pitch!

 

He says your pitch must:

 

•Grab the attention of your prospect 

•Convey who you are 
•Describe what your business offers 
•Explain the promises you will deliver on

Try writing out your pitch, then take  out 100 words. Do that over and over until you have just the most important facts. Your elevator pitch is an important marketing tool that will get better with each time you use it.

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Tools of the Trade: Shopping the Stores

Shopping the stores is not really what it sounds like – the last thing you should be doing is looking for styles to add to your personal wardrobe. Shopping from a trend research perspective is more like being a detective. Your job is to figure out what that store’s strategy is.

A major tool of the industry is going out into the marketplace (the physical stores) to see what is actually happening on that sales floor. You can do all the research you want, but ultimately, you want to know how your potential customers really behave, and how the stores are addressing it.

Before you go, you need a few things:

1) a notebook to rapid sketch and take notes. You will be taking a lot of notes.

2) a camera for taking pictures. Be very careful about taking pictures in a store. You can get thrown out for looking shady. If you get asked to leave, just leave. You don’t want to get permanently banned.

 

Step 1:

Locate a store. Big places like Kohls, Macys, or Bergdorf Goodman (depending on our market level) are great places to get an overview of a market category because each of the floors are actually named for their market category!

Bergdorf Goodman - USA

Step 2:

Take a picture of the window display. The styles in the window are placed there usually for two reasons: they’re eye-catching (bright colors, unusual silhouette) or they’re something the store expects to be a top-seller.

Window display paris colette chanel 2011

Step 3:

Walk around the floor and make a sketch of the layout. What is displayed at the front and what is buried in the back of the store?

Step 4:

How are clothes grouped? Is denim near woven shirts or casual knit tops? What colors are displayed over and over again?

Step 5:

Pick out the 5 most prominently displayed styles and try them on. How do they fit? Are they body skimming or oversized? Make sketches or take pictures of them and note all the details.

Step 6:

What’s on the sale rack? Make a careful note of what colors and styles are there.

 

Once you’re through these steps, you should have a good idea of what styles are selling well and what styles are not selling very well at all. You should know what colors they expect to be trendy and what colors aren’t working for the customers. This is a great way to understand what trends are catching on and gives you a good reference for a direction for your own line.

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Tools of the Trade: Rapid Sketching

Rapid sketching is one of the cheapest, easiest, and most useful skills in fashion. It’s a low-effort way to build a great collection of style details.

Not too long ago, there were no digital cameras. Buyers and fashion journalists would go to runway shows at fashion market week to see what designers were presenting for that particular season. These buyers and journalists would go to as many shows they could beg, borrow, or steal their way into. Once in a show, chances are their view wasn’t the best, and even if they did get a front row seat, they’d have about 10 seconds to get a look at every outfit, which might consist of several styles. Without rapid sketching, these professionals would have had no way of sorting through all the information.

Rapid sketching is basically a scribble with a purpose. Here are the steps:

1) Find a style you want to make note of.

2) Clear your mind, take a good hard look at the style you picked and mentally make notes of everything about that style you like: neckline, length, topstiching, pockets, trim… as many things as you can think of.

3) Quickly and with as little concern for artistic skill as possible, scribble down everything you noticed.

Some rapid sketches of little girl's dresses from my notebook. I didn't label them because they are very simple.

4) Label everything you just drew: draw arrows and write all the details you were trying to draw. This is the most important step when you’re first learning this technique. If you don’t do this while the style is fresh in your mind, you will forget and your sketch will just look like a scribble to you until you learn to recognize your own sketching.

The obvious question is, why do you need to do this now that we have camera phones? Can’t you just take a picture? Yes, and this is a great thing to do, but it has two drawbacks:

1) If you see a really inspirational style someone’s wearing just walking by you on the street, you might not get a chance to take a picture of that person. They could be catching a train, or just not be very open to having their picture taken.

2) If you are shopping a store and you see an inspirational style or are analyzing the brand to develop a line, you can get thrown out for taking pictures inside a store. It can look suspiciously like you are casing the store to rob it later.

Rapid sketching avoids these problems, and sharpens your observational skills at the same time.

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Brand Analysis: Better Girlswear

The first step in developing a line is knowing the market. In better girlswear, there are a quite a few players, but we’ll look at the following three:

1) Janie and Jack makes clothes for girls and boys 0-12 years of age in the $20 – 100 price range, focusing on fabrics that are typical of adult sportswear, like twills, lawns, and meltons.

Vision In Red Snowflake Wonder Classic Gent

2) Oilily makes European-folklore inspired clothing for girls and boys from 0-adult in the $20-200 range. They tend to use more casual fabrics and combinations of knits and wovens, denims, and prints.

Dot Dress Blue Combo van Oilily kinderkleding Padric Pants Beige van Oilily kinderkleding Tsvetko Jersey Blue van Oilily kinderkleding

3) In the wildcard position, I’m liking the Tea Collection, which makes boys and girlswear for infant through tweens, with an emphasis on ethnic traditions. They use a lot of knits and prints.

  

Some things I notice right off the bat:

1) Children’s’ trends pretty much imitate adult trends

2) In this category, fabrications and trims are about the same quality as their adult counterparts

3) Even though the clothes are smaller (and therefore cheaper to make), the retail prices seem to be in line with adult retail prices

Next post: Trend research!

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Product Development Roulette: Better Girlswear

Every season I draw some category out of a hat to design a collection for the current season in development, which is Fall 2012. This is a category I’ve never designed for so this should be fun. The steps involved are:

Brand analysis: What is the brand we’re developing for, and who are their competitors?

Trend analysis: What are the major trends for Fall 2012

Fabric and color story: What are the colors and fabrics on trend for Fall 2012 in this category, and which ones will we be using in our line

Line development: developing and choosing the designs for our line

Next week: figuring out our brand.

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