Successful Branded Manufacturers Do Not Open Retail Stores

 

By Paul Pannone

eWedNewz is after the details of Jasmine Bridals opening a retail store in Hanover, Illinois that will reportedly compete with about six retailers within a 25 mile radius. Competitors and retailers question the move saying the Jasmine line for 2012 is better than other years. Some wonder why Jasmine would risk an upstart in retail and jeopardize guaranteed business from the trade. The company responded in an email saying it plans to open the one store, not multiple stores. But sources near the story say they’re not buying it.

The eWedNewz story sparked discussions of what prompted the current move by Jasmine following others like Alfred Angelo, Demetrios and Impressions. Retailers especially wonder whether they can trust any manufacturer in the future.

Retailers seeking anonymity told eWedNewz,”We do a good business and they know exactly how much they’re shipping us. The more business we give them the more tempted they are to open a store right near us and undercut our prices.”

 

Paul Eilenberg has a strong background in apparel and accessories. His career in manufacturing products in America spans over 40 years. Eilenberg learned the hard way that partnering with off-shore factories makes better sense than trying to fight them. Currently Eilenberg is the director of the Mallard Luxury Group in Great Neck, New York.

 

 

Paul Eilenberg told eWedNewz,” I’ve long been a proponent of Brand flagship stores, but only where the goal is to educate the pubic about their complete line of merchandise. What I find offensive is when a manufacturer seeks to compete on a less than level playing field, .i.e. cutting established retail pricing. It harms the other retail dealers & cannibalizes the brand.”

 

An eWedNewz Poll shows 53% of respondents said they do not feel manufacturers should open retail stores. 35% said they didn’t mind and should open stores. 7% Felt it doesn’t matter one way or the other. 5% wrote in similar views given by Paul Eilenberg, as long as education and equal pricing with other retailers– not competition and undercutting– is involved.

What do you think? Please tell us now;

 

 

 

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