By Paul Pannone
Since 2009 we’ve been tracking wedding-related data, information businesses, etc and how they would relate to the financial crisis of 2008. The culmination of lower standards for formal events, coupled with job losses that resulted from the collapse and a lower wish for couples to wed saw spending drop after the collapse. Not until recently have we seen a positive return to normalcy– whatever that new normalcy will be. The economic downturn exerted enormous stress on marriages at every income level.Experts say apprehension connected with unpaid bills, credit card debt and possible job or home loss brings out the worst in people, breaking down communication and eroding affection, love and tolerance for the situation. It is unknown if the damage to the idea of marriage is permanent or short-term but the lasting effects on children who saw homes broken and squabbling over marital assets will not have a positive effect on future relationships.
Continuing our watch, more supply than demand, increased competition and the changes impacting the wedding business are all leading to necessary changes required to adapt to the market. We’ve been watching the changes especially in the wedding dress business, plagued by growing competition from Chinese sources selling knock-off products online. Quietly a move to rally manufacturers together to fight the barrage has been only moderately successful and is actually losing steam. Recovery of money from Pay-pal accounts and trying to cut off transit of the products show good results but it’s impossible to calculate what percentage of recovery versus the losses exist.
Recently some manufactures have decided to execute plans to open new stores against the wishes of their accounts who don’t want the extra competition to exist. In short the wedding dress business is a mess, destined to get worse before it gets better.
eWedNewz received a tip that a major gown manufacture is up for sale. According to the tip from a source that does not wish to be identified there is a $90 million dollar designer, manufacturer and distributor of moderately priced wedding and other specialty dresses up for sale. According to the obtained listing the company’s dresses are sold in over 2,000 wedding and specialty stores in the U.S., and are found in over another 2,500 stores internationally. The company is well-positioned to continue its consistent organic expansion throughout the Americas, Europe and beyond. Operating in a highly fragmented global market, the company is a solid platform for acquisitions for those buyers seeking even faster growth.
The source told eWedNewz their opinion of who the company might be:
“Mori Lee,” according to the source but did not give specific reasons why.
Further discussion concludes any wedding dress manufacturer is ready to pack it in– at the right price– as the diminishing odds of growth, rising cost of operation and growing challenges of over seas manufacturing continue. Not to mention the shrinking demand.
All Rights Reserved