Youth market: price and style of the delicate balance (1)
“And for a broader or more elderly consumer market competitors, it was generally acknowledged that supplies retailers more young people to resist an economic downturn. But I think the current economic situation have proved this view is wrong: youth market economic recession can not be survived. “Wharton” retail research projects “(Jay H. Baker Retailing Initiative), director of (Erin Armendinger) said.
Prices lead to decline
Although the economic situation forced recession adult child must be parsimonious to live, but this does not mean that children no longer care about their appearance, no one parent can testify that this point. New Albany, Ohio, City clothing stores Abercrombie and Aéropostale recent track the price and style reveals the delicate new balance between.
Abercrombie has been the eyes of the U.S. super-popular youth brand, which this year’s second quarter profits and stock prices have been falling throughout the year. Although Abercrombie’s flagship store in the second quarter same-store sales rose slightly, but its three second-tier brand sales are on the decline, including the youth brand Hollister, for more than 20-year-old Ruehl consumers and parents of children-oriented brand Abercrombie Kids . Manhattan customer loyalty consulting firm Brand Keys president Robert founding Robert Passikoff said, “Abercrombie was brilliant, but now momentum is slowing down.”
Wharton School of said: “The resulting decline in sales may be the main reason for the price. Other retailer’s campaign is’ I understand that you now need to save money, ‘and Abercrombie dismissive about price. This species is very risky strategy. ”
Abercrombie did not launch this year, back-to-school promotions; girls jeans price of 90 dollars. In fact, the company CEO Vries (Mike Jefferies) in a conference call to investors announced second quarter sales figures also mentioned the possibility of price increases rather than price. According to the Associated Press reported, he said by telephone, “not only easy-to-use price promotions, while driving short-term sales, but regardless of the macroeconomic situation, we do not intend to rely on price promotions to win.”
Earlier this year the high price of gasoline, other economic indicators are also sluggish, but on the contrary, Aéropostale sales is very popular. This brand has been in Abercrombie ago after the runner-up position to the sale of cheap and young people known for apparel. It recently spent great efforts to highlight the advantages of their own brand names, including stores such measures as reform. said: “Aéropostale in product range and grasp the needs of young people has improved.
Fashion alone can not win cheap; it must also give young people the desire to buy. Of course, cheap is also very attractive: Aéropostale in back-to-school sales activities in the introduction of half of the amount of jeans, a pair of jeans all the girls across the board fell to between 20-30 U.S. dollars.
It is worth noting that some young people no matter how the economic situation, or to patronize their favorite stores. So pointed out that to become a popular brand, youth apparel retailers to launch a unique style of popular products. She said, “If you sell different products, you win.” She also to Philadelphia multi-brand retailers Urban Outfitters as an example, pointing out that this early in August retail stores reported second-quarter profit rose 79%. “Urban Outfitters stores in the design and products are not high-end, but you guess the outcome, they are very good sales.”
He said, “so discount stores and department stores plans to costume design style to attract young people, parents who are making the price of a license. Even if your parents take you Penney Company (JCPenney) or Cole department stores (Kohl’s ) shopping, you may want to dress up some cool. road network
Although the National Retail Federation forecast that only a quarter of the back-to-school network before the consumer will try to buy, but this figure is much higher than in 2007 increased by 3%.Psk said Brand Keys this summer study is expected to do, back-to-school sales network before the purchase of a substantial increase in the number than before. Compared with last year, the number of online shopping increased by 15%, while the discount is only an increase of 10%, stores also fell by 8%.
Obviously, the person selected to the store or the majority of customers, but young people still in this season brand launched a new online campaign. “Wall Street Journal” (Wall Street Journal) 8 reported that the late, K. Swiss, Sears (Sears), Penney, Kohl and other department stores through the online social network to attract young people to the eye.
