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    OLE And Other Special Stores Began To Do Business, Can They Get A Slice Of It?

    2020/1/15 20:55:00 0

    OLE

    Shopping at Marshalls is like going to war.
    The brand will throw the discount clothes directly into the cheap market, and the consumers who like to bargain will search them carefully on the endless shelves and quickly pick out the real brand names from a lot of inferior products. It is recommended that you keep poker faces. Any unpleasant reaction may make other hunters fear.
    This experience excuses certain types of customers and makes others fear. For the latter group, Marshalls launched its first e-commerce website in September last year.
    Shopping on Marshalls.com is different from browsing products on Amazon or Messi stores. Users enter the designer's brand in the search bar usually displays the message: "some of our brands may be a bit shy. Try browsing by the Department - you never know what surprises will happen.
    In the display of handbags priced over $1000, brands including Gucci, Balenciaga and Chlo are able to play 25% off. But a user who can't distinguish between Balmain and Alexander McQueen must click the "display designer" to confirm who designed the handbag.
    Customers will try digital hunting, known as a shelf trip, spreading across the cheap market, from chain stores Marshalls and T.J. Maxx to OLE and branded factory lines. These long-term adherence to e-commerce businesses are making concessions one by one, they worry that consumers can easily find a discount online, and there is no reason to go to those unattractive discount stores.
    If they want to catch up with competitors in the online market, they still have a way to go. TJX owns Marshalls and T.J. Maxx, and launched tjmaxx.com business in 2013, but until 2018, online sales accounted for only 12% of total sales. Their main competitor in the United States, Ross Stores, had no electricity supplier business.
    Families need to try everywhere, otherwise they will eventually lose consumers.
    "Under the premise of not accepting e-commerce, low price may be one of the most successful ways in the retail field. But everyone needs to try everywhere, otherwise they will eventually lose consumers. "
    Why is special retailing digitalized?
    They were once considered to be the choice of customers who could not afford to buy positive products. Now, special chain stores attract consumers of all ages and incomes. Sales of TJX doubled in the past ten years, and it is expected to reach US $about 40000000000 by next January. The company declined to comment.
    Some traditional retailers and brands also rely heavily on special sales. Nordstrom's discount chain Nordstrom Rack brought about 1/3 of revenue to its parent company last year. Messi's department stores launched Backstage, which opened 120 stores last year. Brands ranging from Ralph Lauren to Gap operate a huge otter network.
    But they all face fierce online competition. Gilt and Rue La La are all interested in the time limit panic buying, struggling, turning to standard, discounted e-commerce, and in 2018 sales amounted to about $1 billion. Online markets and brand websites provide near stable sales. Consumers once thought it would be lucky to see luxury goods in T.J. Maxx. Resale websites like The RealReal and Rebag offer luxury items similar to new products at discounted prices.
    To succeed in such a crowded market is not just to build a website.
    "Consumers have many choices, so the new website must be very competitive," said Neil Saunders, general manager of GlobalData retail department. "I don't think T.J. Maxx website will become the mainstream portals for sale and shopping."
    For some special chain stores, winning in the online discount war is not the point. In February, TJX CEO Ernie Herrman told investors that the company's e-commerce business was aimed at promoting "gradual growth in traffic" by accepting online returns and other encouraging "cross shopping" initiatives.
    The introduction of specials to the online market also brings some unique challenges.
    Special stores and websites usually do not replenish the goods sold, so they need to closely track their inventory. Donny Salazar, founder of MasonHub, a Losangeles logistics company, said he had been a senior executive in Gilt Groupe for four years.
    Consumers have many choices, and new websites must be very competitive.
    Otherwise, consumers may take the order that the company can't finish, and the changing buying portfolio also has complicated problems.
    "In traditional e-commerce, you take a product and sell it again and again, but the SKU of the special price website is constantly changing, so the cost of production is much higher." He said.
    Looking at pictures of endless handbags does not bring the same sense of satisfaction as searching for luck on shelves. And once they arrive at the customer's home, the online order may be disappointing. A few days ago, they fell from the highest price after bargaining.
    "I often visit the Marshalls website," says Dianna Baros, a self styled shopper who is a hard nut to crack, and a discounted fashion blogger. "Most of the things bought online are disappointing, which is that I prefer to discover hidden gems in person."
    Most of the things bought on the Internet are disappointing, which is that I prefer to discover hidden gems in person.
    T.J. Maxx has some advantages, including the global buyer's network, which ensures that their stores and websites have better inventory than their competitors, "Saunders said.
    "If you have the right products, people will do everything they can to buy them." Salazar said.
       Autry is also trying to digitalization.
    In October, Simon Property Group, the largest shopping center operator in the US, invested $280 million in Rue Gilt Groupe, and Rue La La purchased Simon from the owner of the Fifth Avenue (Saks) owner, Hudson Bay Group (Hudson). In 2018, the Property was set up. Part of the deal is a 50% stake in Simon real estate group. The discount website builds a new e-business website for the latter's outlets. According to Forbes, Simon real estate group plans to invest about $100 million a year to promote the investment.
    The Simon real estate group operates 108 shopping centers, including 67 Ott Lars. But the flow of shopping malls is decreasing. Outlets are no longer as powerful as ever. Simon real estate group and Rue Gilt Group declined to comment.
    Simon Oteri J website has nearly 2000 brand products, including Burberry, Kate Spade, Calvin Klein and Moncler. Many of the products listed are from Gilt and Saks Off Fifth.
    Orlando international outlets shopping center is owned by Simon real estate group. All pictures: Shutterstock
    The real advantage of Simon's e-commerce site may be its potential appeal to international consumers, which has attracted millions of people to go shopping in outlets.
    "This makes it possible to sell products to new markets, and consumers do not need to go somewhere to buy specials." Salazar said.
      Independent brands start selling at a special price.
    Not all specials are linked to national discount chains or real estate tycoons.
    In September, Rachel Gannon launched Cara Cara, which sells small discount products such as Samantha Pleet, Baggu and Boy Smell. Gannon worked in Backstage at Rue La La and Messi department store. She noticed overstock companies, but worried that they would sell their products to T.J. Maxx to damage their brands. Wholesale websites are also often trapped in inventory and eventually get bogged down in the clearance page.
    This makes it possible to sell products to new markets, and consumers do not need to go somewhere to buy specials.
    "I want to do something that brands will not hate." She said.
    She said Cara Cara bought goods at a price lower than the wholesale price of 20%-60%. Logistics is one of the more intractable problems of the company, because it may be risky to bet on secondhand stock.
    New York fashion designer Rachel Antonoff has mentioned that selling products to start-ups such as Cara Cara helps independent designers run companies more consistently.
    "We are overstock and need liquidation. Although some high-end companies will destroy products instead of special sales, I appreciate the idea that our products will not cause waste, "she said." our profit margin may be reduced, but at least it is reasonable. "

    Source: BOF Author: Chavie Lieber

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