AMAZON AND WALMART DOMINATE APPAREL SALES, BUT ARE AFTER MORE FASHION CLOUT

Melissa Repko, Annie Palmer in CNBC, Jun 22, 2021

“Vincent Quan, associate professor at the Fashion Institute of Technology, said the two retailers can drive more sales if they keep up with trends, along with selling socks and basic T‐shirts. ‘The historic turn rate of fashion goods is faster, and that’s an important component because faster turn means additional purchases,’ he said.”

 
 

AMERICA’S DEPARTMENT STORES, CORNERSTONES IN FASHION, COULD BE IN THEIR ‘LAST STAGES’

Scott Mlyn in CNBC, Sep 1, 2020

“‘Brands partnered with department stores for exposure, for reach, because they didn’t have the capital to do it on their own,’ said Vincent Quan, an associate professor at the Fashion Institute of Technology.
’Department stores served a function. But now comes the digital age.’”

 
 

FAST FASHION IS TAKING OUT TRADITIONAL RETAILERS, NOW ONE CEO IS BRINGING THE MODEL UPSCALE

Krystina Gustafson in CNBC, April 27, 2017

“‘The manufacturer’s vertical setup is what truly makes the partnership work. Historically, overseas factories have been reluctant to invest the money and labor required to produce smaller batches of high‐fashion product. But a company using a vertical model has the opportunity to balance out its profit and costs across multiple line items,’ Vincent Quan, an associate professor at the Fashion Institute of Technology, told CNBC.

That Xcel also orders large quantities of less‐risky, basic items should further pad China Ting's bottom line, Quan said.

Bringing a fast‐fashion model up the pricing spectrum is ‘Consumerism 101,’ FIT's Quan said. Whereas some shoppers flock to Forever 21 and Zara in search of rock‐bottom prices, others are attracted to their constantly changing, on‐trend styles, Quan said.

In those cases where price isn't as much of an issue, ‘What we're seeing potentially is the natural affinity for consumers to trade up,’ Quan said. That could especially be the case for environmentally conscious customers who want their clothes to last multiple seasons, he said.

There are already signs that fast‐fashion shoppers are willing to spend up on the right product, Quanadded, pointing to collaborations between these stores and high‐end designers. For those types of limited‐edition collections, price tags can run into the triple digits, Quan said.

‘Since the fast‐fashion retailers have the customer buying at 'X' price, why not give them the opportunity to trade up?’ he said.

He cautioned, however, that if a company plans to charge more for fast‐fashion goods, they’d better be sure that the quality holds up.”

 
 

THE CURE TO ONE OF RETAIL’S BIGGEST PROBLEMS ISN’T AS SIMPLE AS IT SOUNDS

Krystina Gustafson in CNBC, Feb 16, 2017

“Although the model allows designers to show their spring merchandise five months later than usual, it still fails to match up with how customers shop, said Vincent Quan, an associate professor at New York's Fashion Institute of Technology. Case in point: As several designers showed their spring wares last week, snow was piling up in New York.

‘That still is not necessarily congruent with the weather and when consumers are actually physically buying the merchandise,’ Quan told CNBC.”

 

 
 

WHEN DESIGNER LABELS ARE OUT OF REACH, FAKE IT ’TIL YOU MAKE IT

Krystina Gustafson in CNBC, Feb 11, 2017

“Despite these challenges, fashion rental models should continue to grow in popularity, Vincent Quan, an associate professor at New York's Fashion Institute of Technology, told CNBC. It's become less passe to rent apparel and accessories, especially as millennials aspire to own fewer things.

‘It allows you to have the look without making the initial investment,’ Quan said. ‘At a certain price point, folks can't afford it... So what do you do? You rent it.’”

 
 

RETAILERS CUTTING COSTS AT THE EXPENSE OF QUALITY

Krystina Gustafson in CNBC, April 11, 2016

“The result are what are referred to in the industry as ‘tissue tees,’ Quan said. These lower‐quality tops can be made from rayon (derived from wood pulp) or other synthetic materials, he said. By using such lighter fabrics, clothing is both cheaper to produce and ship.

‘The truth is you can create sheer tees from practically anything,’ Quan said.

‘Labor costs are always going up,’ Quan said.

Quan said there's still some wiggle room for retailers charging $10 or more for a T‐shirt to lower their prices. The real cost to produce a simple tee is somewhere around $2 or $1.50, meaning they could still record a profit if they trimmed the price tag. Once they get down to $5, however, ‘there's not much breathing room left,’ Quan said.

‘They're not going to give it away for free,’ he said. However, he did acknowledge that some retailers could use such low‐price items as ‘loss leaders,’ meaning they don't earn a profit off of them, but use them as a means for generating traffic.

‘The additional purchases on top [are] what you're looking for,’ he said.

It's also worth noting that in some cases, selling sheer ‘tissue tees’ is a conscious decision retailers are making. Sometimes, they're produced with the intention of the shopper layering them on top of a colored blouse or bralette, to create a ‘sexy’ look, Quan said.

‘It leaves a lot to the imagination," he said. "That's probably one of the fashion reasons why it's trendy.’”

 

 
 

NEW LINGERIE TREND COULD LIFT APPAREL SALES

Krystina Gustafson in CNBC, April 7, 2016

“Vincent Quan, an associate professor at the Fashion Institute of Technology, said bralettes are a natural fit to pair with popular off‐the‐shoulder looks, which help show off their lace or other details. Another way to style the piece is by wearing a colorful bralette under a sheer top, to show a pop of color.

‘It's a cool, sexy look,’ Quan said.”

 
 

REBECCA MINKOFF REWRITING THE RULES OF FASHION

Krystina Gustafson in CNBC, Feb 12, 2016

“Vincent Quan, an associate professor at the Fashion Institute of Technology, said that because many luxury items are handcrafted overseas, he's skeptical the industry could substantially shorten the amount of time it takes to produce these garments. However, one way of cutting it down would be to shift production back to the U.S., to eliminate the 30 to 45 days typically required to ship an item overseas, he said.

To be sure, there are still plenty of challenges ahead in overhauling the fashion calendar. Quan said the shift must be adopted broadly, and not by just one or two brands. Not only that, many will require a complete overhaul of their supply chain, so they, too, can produce items closer to need. What's more, because fast‐fashion retailers can replicate looks so quickly — sometimes in as little as two weeks — they will still be able to pull looks from the runway and sell them for hundreds or thousands of dollars cheaper, Quan said.”

 
 

 THE REAL PROBLEM LUXURY BRANDS AREN’T TALKING ABOUT

Krystina Gustafson in CNBC, Feb 10, 2016

“‘I don’t think it’s really possible to compete with the fast‐fashion retailers because of their business model,’ said Vincent Quan, an associate professor at the Fashion Institute of Technology. ‘If you’re a medium to luxury fashion designer, the intricacies of your product are inherently much more complex.’

‘[Luxury designers] were never built this way. ... They were built for complexity. They were built for beauty. They were built for all of the finer things that take time.’ ‐Vincent Quan, associate professor at the Fashion Institute of Technology.

What's more, Quan said moving the show calendar wouldn't mitigate the ability for fast‐fashion retailers to duplicate high‐fashion designs.

Because Zara designs, produces and sells its own product, which is essentially a stripped‐down version of what goes down the runway, it can get inventory on the floor in two to four weeks, Quan said. But the appeal of luxury goods, which take about 41⁄2 months from the runway to selling floor, is built around handcrafted items with all the bells and whistles — meaning it's product that can't be rushed.’

‘[Luxury designers] were never built this way,’ Quan said. ‘They were built for complexity. They were built for beauty. They were built for all of the finer things that take time.’”

 
 

HOW YOUR BUYING BEHAVIOR CAN PREDICT YOUR GENDER

Krystina Gustafson in CNBC, Sep 11, 2015

“Odds are, you’ll spot one or two ‘lone wolves,’ the term Fashion Institute of Technology associate professor Vincent Quan uses to describe men who are out shopping on their own.

Women, on the other hand, view going to the mall as more of a social event, and are therefore more likely to move in flocks. Even when they're alone, Quan said, many of his female students have admitted to turning their outing into a social event by sending a Snapchat of their outfit to friends before deciding whether to buy it.

‘You won’t find me doing that,’ he laughed. According to Quan, women are more likely to search for a replacement product if they didn't find exactly what they were looking for at the onset.

‘Most men are destination shoppers,’ he said. ‘They are looking for something specific [and] make a beeline. [They think] If I don't find it, maybe I’ll look for something similar, but I probably won’t spend much time.’”

 
 

THESE ARE THE PEOPLE WHO DECIDE WHAT YOU’LL WEAR

Krystina Gustafson in CNBC, Sep 10, 2015

“‘In order to create a garment with a stiffer look, the material needs to be thicker. That requires a larger quantity of a high‐quality fabric, said Vincent Quan, associate professor at the Fashion Institute of Technology.

Once the looks hit the runway, demystifying the process of identifying trends is not that complex.’ said Vincent Quan, an associate professor at the Fashion Institute of Technology.

‘Here’s really the secret formula,’ he said. ‘You look at the upcoming calendar. Who are the fashion influencers? You pick a couple [like Diane von Furstenberg and Marc Jacobs]. ... What you're looking for then is commonality.’

From there, Quan said, the industry’s job is making couture commercial. For luxury department stores buying designer duds off the runways, that means selecting the key pieces that can be tweaked to be more salable.”

 

 
 

FASHION WEEK GOES MAINSTREAM—HOW IT COULD SPELL TROUBLE

Krystina Gustafson in CNBC, Sep 10, 2014

“FIT’s Quan said quality is always the sacrifice, as designers have to cut corners to lower production costs. For example, Nicole Miller’s lower‐cost J.C. Penney line—which at $60, sells dresses for a fraction of the price of her regular label—will occasionally use polyester instead of silk to make lower prices feasible.

‘Sometimes it can be a challenge finding the right fabrics,’ Miller said backstage at her show. ‘But I feel like I can put my taste level and my prints [into the line] ... I don’t think it’s taboo like it used to be.’ Miller said some of her customers have told her they bought a $2,000 dress from her full‐price line, and then stocked up on T‐shirts from her diffusion line to wear over the weekend. But this, Quan said, is not typical.

‘As you move up in terms of prestige, in terms of disposable income, it’s natural for you to seek distinction and differentiation from others,’ he said. It’s also natural, Quan said, for brands that seemingly have little to do with the highbrow nature of fashion week to be ‘latching on’ to the event.

‘The idea is to build buzz about your brand,’ he said. ‘This is the debutante ball.’”

 
 

EMBATTLED FOUNDERS “VICTIMS OF THEIR OWN SUCCESS”

Krystina Gustafson in CNBC, June 24, 2014

“Vincent Quan, associate professor at the Fashion Institute of Technology and an expert in corporate turnarounds, said that in all three of the above cases, the boards' efforts appear to be genuine attempts to increase returns for shareholders.

He said the divergence between founder and board often comes into play when a brand’s competitor begins taking its share—as is the case with Gap's Athleta label infringing on Lululemon, and fast‐fashion retailers such as H&M gaining on American Apparel's basics‐oriented business.

Although boardroom battles bring a lot of question marks to investors, including the possibility of the firm going private, Quan said the best ways to ease shareholder worry are to have senior management express a well‐defined strategy and work to create an objective board of directors.

But that doesn't make it any easier for the brand's founder, who many times simply doesn't want to let go.

‘They built this company usually from the ground up,’ he said. ‘It‘s their baby.’”

 
 

7 WAYS DESIGNERS ARE BATTLING AGAINST FAST FASHION

Krystina Gustafson in CNBC, Feb 14, 2014

“In order to create a garment with a stiffer look, the material needs to be thicker. That requires a larger quantity of a high-quality fabric, said Vincent Quan, associate professor at the Fashion Institute of Technology.

Although there are a number of retailers who use faux fur on their coats and apparel, real fur has a different feel to it, Quan said. ‘It just doesn’t flow naturally on the hands,’ he said.

The ‘terrific’ detailing seen in the season’s trims is something that likely won’t appear on fast-fashion shelves.

‘I don’t think necessarily they’re too concerned with all of the better trims that are appearing,’ Quan said. ‘There’s a sweet spot that the Zaras and H&Ms of the world operate under.’ That means they are unlikely to sacrifice their margins on trims.”

 
 

CORNMISSION WARS! THE BATTLE OVER WHO GETS YOUR DOLLARS

Krystina Gustafson in CNBC, Jan 28, 2014

“Retailers are reluctant to discuss the problem because it’s complicated and takes a number of approaches, according to Vincent Quan, an associate professor at the Fashion Institute of Technology who has experience at Saks Fifth Avenue.

Some companies split the sales credit 50-50 between the Web operation and the store, while others attribute the sale to the store that supplies the inventory, Quan said.

Another option is to credit the sale to the Web, assuming that the associate’s work is limited to pulling the already-selected inventory from a stockroom. While that method may seem logical, removing inventory from the store and attributing the sale to the Web creates an accounting imbalance.

‘The sale is one piece—the inventory’s another,’ Quan said.

Quan at FIT echoed that, saying consumers don’t care where the inventory comes from—they just want to know the price and when they’re going to get it.

‘The last thing a retailer wants to do is upset a consumer and have it go viral,’ he said.”

 
 

ANATOMY OF A MARKDOWN: WHAT YOU ARE REALLY PAYING ON BLACK FRIDAY

Stephanie Landsman in CNBC, Nov 27, 2013

“Retailers are still making big profits even while slashing prices, according to Vincent Quan, associate professor at the Fashion Institute of Technology.

To put it into perspective, Quan broke down how much a typical apparel store could make if it cuts a retail price by half. Let’s say the initial price of a women’s dress is $300 and it gets cut to $150 (see figure above). At department and chain stores, the initial markup is typically 70 percent to 80 percent. So assuming it cost $60 to make, the retailer is still making a profit of as much as $90.

A scenario like this gives retailers an opportunity to lock in contingency plans if sales don’t measure up to forecasts.”

 
 

FEWER BUTTONS? RETAILERS SKIMPING TO BOOST PROFITS

Stephanie Landsman in CNBC, Sep 28, 2013

“Looking across the retail industry, at a wide variety of stores, Vincent Quan, associate professor at the Fashion Institute of Technology, does not seem surprised some consumers perceive lower quality in today’s clothes. Quan, who spent more than 20 years in the retail industry, finds there’s an unquestionable decrease in the fabric quality at many of the best-known chain stores.

Instead of relying on consumers to spend more money, it appears far more retailers are squeezing whatever costs they can on the production side, Quan said. He added, he’s seeing shirts with lower thread counts, less expensive synthetic fibers and no extra buttons.

‘If you buy the product, as you wash it, the wear on the product, it becomes less structured and pilling starts to occur in a thinner product. So, the quality has definitely gone down,’ said Quan. ‘But, that is all in the interest of maintaining or growing your gross margin.’

By sacrificing the fabric, retailers can keep the price points stable and continue to offer up the deep discounts consumers have become accustomed to, according to Quan. Plus, the companies can soften the blow of rising labor costs—particularly in China.


Quan has contacts working inside the nation’s most talked about brands and retailers. He has heard companies are limiting things like merchant travel overseas to visit vendors—as well as substituting fabrics and trim. It’s all in an effort to reduce costs and build gross margins on all products.”