The Panic About the Dollar
12.08.2007, Author: Alison Freeman
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As the U.S. economy continues to decline, retailers still expect consumers to embrace current fashions and shop like it is going out of style. Long gone are the days when "fashionable" requires an expensive price tag or a made in Italy label. Today’s retail market is emitting everything from designer collaborations to fresh takes on basics. Stores offer product mixes that may combine anything from original styles to runway inspired pieces, vintage reproductions, uber-trendy merchandise or even one-of-a-kind handmade items. Regardless of age, size, location or budget, there is something for everyone. The demand for retailers to supply cutting edge styles, for potential purchases, is increasing clothing turnover and consumption trends. Changes within the economy along with environmental hazards will have a tremendous effect on retail. Several different approaches may be helpful to designers, manufacturers and retailers for surviving such obstacles.

For tourists, everything is on sale in America! Since 2002 the U.S Dollar has fallen 36% against the Euro. 10% of that drop has occurred since June of this year. To put this into perspective, an American product that cost a European $100 in June now costs $90. It still costs an American $100. However, a number of economists and money managers are predicting a recession in 2008. This means growth in almost every aspect of our economy will grind to a halt and even decline. Naturally consumers will cut back in their purchases, leading to a fall in retail sales figures. It is imperative for the fashion and retail players to be prepared to adjust and cope if times get tough in the United States.

Fast fashion has reduced unit prices, greater retail pressure to sell larger amounts, increasing apparel turnover and consumption trends are resulting in significantly more waste of end-use for clothing. It’s no surprise that stores like H&M, Zara and Forever 21 have inspired other mega specialty retailers such as Top Shop and Mango to branch out and house flagships in the States. How can you help but wonder just where exactly all of the unsold merchandise ends up going when trends die hard? Granted there are donations made, outlets available and even warehouse sales etc. for many mass-retailers, think of massive amounts of unsold garments that accumulate over time. Such stores which are famously known for getting shipments of new and of-the-moment merchandise on a weekly basis are yet to address what happens to the more outdated products. Apply this on a global scale and the result is a very significant amount of excess overstock. Beyond that the inventory may represent a potentially large quantity of latent waste that will eventually enter the solid waste stream

One solution to the disposable culture trend in fashion, and as an added bonus help mitigate the effects of potentially harmful waste on the environment is Seasonless Dressing. Making smart buys for a year-round wardrobe is based on finding versatile pieces that can be used as layers when dressing for both warm and cool weather. For example simple dresses can be layered or worn alone depending on the weather. Tops that are cut with a roomier silhouette work as well. Jackets that can be worn with a sweater or with a tank, as well as other garments made in an all occasion cut and easy fabric are options as well. Stocking up on layering pieces to combat seasonal transitions such as tights, cardigans and turtlenecks as well as styles made in wearable fabrics are essential to Seasonless Dressing.

One example of a retail concept that incorporates eco-friendly fashion is a store called California Vintage which has been developed by the creators of American Apparel. The most recent store in the chain of vintage shops opened last week on Sunset Blvd. (Our coverage coming soon!) The buying team identifies trends and buys bulk quantities of items reflective of those trends. The merchandise isn't a random selection, buyers put in orders for specific items and then rag houses send their stock on that product. Basically, there are only a couple dozen different items in the store at any given time. This fills the consumer need to wear things that others do not have. Incorporating vintage merchandise into mass markets is an idea that can be further developed. If the fabric from vintage or other unused garments could be recycled and re-used in the production on new merchandise, there would be less waste in the world.

Fashion has been flooded with ever changing trends and stores and labels are desperate to have consumers add new looks to their wardrobes each season. With an overwhelming variety available, many often wonder just how much longer the idea of inexpensive, disposable clothing will drive sales. It’s inevitable that as the economy changes and people become more environmentally conscious, the fashion and retail worlds will mirror that. In order to keep up with the market, retailers will find that shoppers will go from quick fix to long haul.

As a true consumer, I will admit that too much is never enough in my closet but that I live by the cost-per-wear rationale when shopping. However I have spent much of my life literally collecting items that reflect my personality, suit my style and can be easily mixed and matched with my wardrobe staples to spice up my look de jour. This more considerable approach to shopping is all about acquiring timeless and luxe additions with staying power. The concept of having drawers full of clothes that have been worn once, if at all, would compromise my beliefs in dressing to invest. Instead of buying 10 ill-fitting cheaply made tops each winter, I much prefer to buy one more expensive piece that will last for many seasons and is well worth the investment. Granted I will most likely end up making another purchase or two within the same category in a given season.

Buying a well-made reasonably priced items that can be layered with other items in my existing trousseau is an option. As is, buying a trendier piece but in a style, shape or color that will make sense in the long run. On this note I will add that it’s easiest to choose colors such as black or brown when buying more expensive pieces, although navy, grey or white might work better for some. Incorporating a few statement pieces every season, with less expensive, very wearable basics and apparel staples is a practical approach to dressing. Replace trends with wardrobe building blocks that won't date. Limit fad purchases to accessories that add novelty to more low-key ensembles. Young designers should start thinking about what a woman really needs in her closet rather than focusing on the latest accouterment. Retailers by nature may be very trend driven, but the key to surviving any trend, economic decline, or environmental movement is to stock merchandise that makes the most sense for their customers.