Infighting, Fragmentation and Fighting in the Tuxedo Business Could Hamper Comeback

By Paul Pannone

eWedNewz is watching a developing story with conflicting information to a recent resurgence of the men’s formal wear business. Tuxedo rentals have been in decline for over a decade and saw the closure of several founding companies including After Six.

 

When a customer walks into a tuxedo rental store they don’t know how old the garment is.

The original After Six company founded in 1902 made tuxedos in Philadelphia until it went out of business in 1993. The name bounced around the industry for decades after the original company closed and was even owned by the Allstate Insurance company (after Six 2 Baltimore 1994-1996) and the Sequa corporation (After Six 3 1996-2009), among other short-term ownership. What remains are products created years ago that still appear on many websites and showrooms across America, tainting the use of rented tuxedo.

 

According to IBISWorld spending is supposed to increase in various parts of wedding planning industries but the tuxedo business is expected to shrink in the next five-years.

 

51% of an ongoing poll so-far says the tuxedo rental industry is set for a comeback. Together with 26% who say the rental business is holding steady giving a 76% positive rating as opposed to 13% of respondents who feel the tuxedo rental business is dying; 3% say it’s already dead, giving a 16% negative view. 7% say they’re not sure.

Recent blogs by long-time wedding and event planners say the tuxedo business is due for a comeback, ready to service a new generation of users following young role model entertainers adorning the updated threads.

Forces opposing the comeback includes fragmentation in the tuxedo rental business. Lagging behind in technology,  presentation in stores and online. Word of suspect products that have been around for decades is reaching the consumer who are cautious and more aware about  what they’re wearing.  Internet searches for new items find updated styles by Vera Wang and Tony Bowls. New fit and softer fabrics attract new users who are willing to spend upwards of $200 dollars to rent the latest designs. Yet the traditional part of the tuxedo rental business remains stuck in price-wars fighting one another with old merchandise, old ideas and a very arrogant attitude.

Currently there are at least four recognized organizations in the tuxedo business: IFA, SIFA, Tuxedo Junction and SAVVI, each with their own membership, views and approach on marketing. A visit with some of the spokespeople in each of the organizations this week admitted personality conflicts and differences of opinion.

“That’s why there are so many different organizations in the business. There are some very strong personalities with prideful views who aren’t willing to work together,” said one member of the IFA, the original formal wear organization.

Quietly, each organization said they were formed to encourage manufacturers. In reality groups were formed to beat up manufacturers on price and getting them to sponsor outdated, unnecessary trade shows and offset  marketing/advertising expenses. Equally as quiet all groups say they’re focused on trying to keep pace with their biggest competitor.

Men’s Wearhouse hit a homerun with Vera Wang this season. A new arrangement brings the Calvin Klein brand exclusively to Men’s Wearhouse next year, after the tuxedo business did not (or could not) support the brand. eWedNewz watches as more announcements are made that can help the business– if retailers  realize the power of new, branded products are what customers are looking for– and don’t mind paying for them.

As far as IBISWorld data, eWedNewz got the company to re-visit flawed data given by the research firm to TheStreet.com that said Men’s Wearhouse rented one out of two tuxedos in the United States at the time of the story release in May, 2011.

 What do you think? Are tuxedo rentals back? Were they ever gone? Or are they ready to be buried?

 

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2013

The Week of March 25th in Review

By Paul Pannone

Vera Wang made top newZ this week getting U.S retailers hot and bothered over the prospect of charging brides to try on merchandise and fitting-room shopping time. But, as quick as it came, the Vera Wang organization scrapped the policy, succumbing to internet pressure and bad PR created by the move.

Celebrity wedding planner, Samantha Goldberg, issued a Press release announcing a long-awaited and talked about show . Goldberg made her rounds publicizing the show and has already started calling out organizations and people she alleges are misleading people and pocketing the profits. eWedNewz investigates further.

 

 

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Vera Wang Scraps $500 dollar Try-on Charge

By Paul Pannone

Because of a global outcry, Vera Wang has scrapped plans to charge Chinese shoppers a $500 fee. A Day after eWedNewz covered the story about Vera Wang charging the fee and negative global media coverage about their Shanghai store, a Vera Wang spokeswoman announced the charge was being scrapped as of today.

Fitting rooms are still free at Vera Wang and most bridal boutiques for now; but for how long?

 

“Please kindly be informed that Vera Wang has abolished appointment fees at her bridal salons worldwide starting from March 27, 2013,” the spokeswoman said in an email to the Reuters news agency, without elaborating.

The Wang organization claimed the fee was imposed to curtail some of the copying taking place. Their PR department also reported limited knowledge of the fee but quickly shuttered the plan as criticism grew along with media coverage.

Whatever the true reason, the prospect of Vera Wang’s policy sticking was music to the ears of retailers and some manufacturers we spoke with. Most say the Internet has disrupted their business, increasing meaningless store traffic, creating overhead and more cost to accommodate shoppers who want to physically see the merchandise, obtain SKU numbers and style information and then make their buy online for less money. But the rise of knock-off merchandise continues to plague the wedding dress business.

In 2012, China was the top source country for counterfeit goods entering the United States and the European Union (EU) with more than 70 percent originating from China, according to the latest customs seizure reports from the U.S. and the EU. According to the Counterfeiting Intelligence Bureau (CIB) of the International Chamber of Commerce (ICC), counterfeit goods make up 5 to 7% of world trade.

Currently, Steve Lang, owner on Mon Cheri, is embroiled in a battle to offset knock-off and online piracy. Lang’s effort includes forming an organization called the ABPIA that is gathering support in and out of the wedding dress business.

 

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Popular Brands compared to Unknown Names

By Paul Pannone

Growing pressure caused by challenging economic conditions force consumers who are trying to make ends meet to buy merchandise at lower prices. But when is a bargain not a bargain?

In an eWedNewz investigation experts warn about merchandise with little or no salable market. In the past consumers were less informed of materials and manufacturing methods. Today with the help of Social Media the word quickly spreads on products and services that do not meet the ever-growing demand of consumers.

“Basically, you want to buy only desirable merchandise. Some times merchandise shows up with closeout dealers because it wouldn’t sell in a store,” according to one expert.

Others agree saying as the notoriety of a brand name increases so does the standard of quality demands for fit, construction and overall performance expectations. But with the faltering economy the line of distinction between a world-class brand recognized by consumers and made-up, fictitious names can be easily mistaken by buyers who think they’re saving money when ordering merchandise.

Unknown brands use cheaper pricing to build their business while true brands leverage image and consumer demand to command higher pricing and higher margins for retailers, while delivering sustained quality assurance and value to consumers. It’s important to remember products bearing the name of a recognized brand known for quality in a variety of item translates into higher pricing power and ongoing ability to perform to everyone’s expectations.

According to Ask.Reference.com Brand is often the company name or logo referenced for a specific business. “Branding” is when their name, logo or company specific identifiers are strategically placed to better market their brand to the consuming public.

Vera Wang tops other more-established tuxedo names but remains behind tuxedos bearing higher world-class branded recognition.

 

In today’s difficult economy even recognized brand names are forced to become affordable to compete with the growing choices offered to consumers. Such was the reason Vera Wang expanded her base of consumers by collaborating with David’s Bridal, creating a more affordable product but becoming the most expensive line at David’s. Strategically the Wang line became mainstream while lifting David’s pricing ability to a wider consumer base.

The Vera Wang organization followed-up by expanding into the men’s tuxedo business, collaborating with Men’s Wearhouse, creating style and demand in a yet another strategic alliance. Searches for Vera Wang tuxedos blew past established names in the formal wear business.

In our ongoing investigation into this story eWedNewz learned that the greater demand and brand recognition the higher the risk of being imitated, copied and tampered with. In the case of Giorgio Armani the probability of being copied bears the greatest risk of creating excellent designs. Descriptions and accounts of fake Armani products concludes  imitation really is the sincerest form of flattery; we haven’t found many accounts of pirates copying styles or products that nobody wants.

 

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2012

Clayton, Dubilier & Rice reportedly agrees to pay $900 million for David’s Bridal

 

By Paul Pannone

Since eWedNewz discovered David’s Bridal was on the auction block in June owners have been quietly seeking a buyer that still has confidence in a sagging wedding industry. The challenge may be met, as Leonard Green & Partners hands off the hot-potato dress company to private-equity firm Clayton, Dubilier & Rice for a price around $900 million. Green paid $750 million in 2007; a 16.6% increase if the deal closes– and a 3.4% average return over the last five years– way below private equity expectation and standards.

Clayton, Dublier & Rice feel they can top the paltry 3.4% average return in company value realized by Leonard Green & Partners.

 

Sources familiar with the story say they’re amazed CDR would get into the wedding business at a time of economic challenges and an aversion towards marriage.

63% of an ongoing poll says Leonard Green is smart in dumping David’s, while 22% say it remains to be seen. 12% feel Leonard is making a mistake in selling; 3% give their feelings of the troubles at David’s Bridal ranging from poor customer service to inferior quality of merchandise. Many bridal store owners feel the dress business is saturated and under attack by offshore sources selling dresses direct to consumers and undercutting prices.

 

If you have not voted please give us your views.

 

 

eWedNewz continues our investigation and coverage of this story.

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2012

Tuxedo Rentals are down but Sales are Up

By Paul Pannone

For various reasons including lack of style innovation and a reason for retailers to update inventory, tuxedo rentals have continued to fall out of favor among a new generation of consumers. Adding to the decline are less formal wedding events and greater acceptance of using regular suits by the groom and his ushers.

 

Internet searches for Vera Wang Tuxedos raised awareness for tuxedo rentals in 2012.

 

According to a recent survey from Bridal Guide Magazine only 67.9% of respondents said the groom and men in the wedding party would be wearing tuxedos. Of those, 85% said they would be renting, while 15% said they would buy their formal wear; up significantly from 2009 when other data sources said 8% would buy.

Since 2001 the tuxedo rental business has continued to decline. In 2000 there were four major clothing suppliers, three accessory companies, three shirt companies, three plastic shoe suppliers and over 9,000 retailers. Today there are barely three tuxedo-makers; no significant accessory makers. The industry struggles for shirts and shoes. There are far less true tuxedo specialists left and more departing every year.

In the past 18 months there’s been some style innovation and brand expansion including the use of celebrity followers and recognized dress designer names. eWedNewz is watching several other innovative moves in advertising and marketing to help jump-start interest at the consumer level. We will report the findings later this year.

 

 

What do you say? Take a moment and vote

 

 

 

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Industry Poll Sides with Green’s Decision to Dump David’s Bridal

By Paul Pannone

As newZ of David’s Bridal grips the wedding industry competitors of the wedding dress giant dismiss the idea of the Devil They Know is better than any possible new ownership in the future. As the original eWedNewz story  rises on the all-time list, readers taking the poll say Leonard Green is best-served to take the money and run, just like Martha Stewart did with Wedding Wire– just in time. Martha got her golden parachute from Catalyst investors. But so far wedding experts say they fail to see how David’s Bridal can do the same; given the struggles in the wedding business that have become more well-known in the investment world.

 

Wedding dress retailers are rolling the dice hoping any new management and leadership is better than the current philosophy that drives David’s.

So far 59% agree with Leonard Green’s decision, 11% disagree, feeling it’s a mistake for them to sell and 28% say it remains to be seen. Most comments involving David’s terrible service and treatment of brides is felt to be at the heart of the owner, Leonard Green’s, decision to bail out. But discussions with financial analysts and wedding dress manufacturers differ.

One source commented;

“Your analysis was spot on; they’re not seeing the growth. With the challenges involving weddings, they’re locked into a shrinking market. Without a 15% (or more) annual return Leonard Green– or any investment company– doesn’t want their capital tied up that way.”

Boutique dress stores and wedding experts defend their position, agreeing with Leonard Green to put David’s Bridal up for sale. Most say they’ve seen takeovers fail and would like this potential sale to be the worst in history. Sources say any sort of leveraged buyout will lead to even greater discord in management and operation of the chain’s stores.

 

What do you say?

 

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2012

No Surprise; David’s Bridal on the Auction Block

By Paul Pannone

The New York Post piece about Leonard Green putting David’s Bridal up for sale comes as no surprise, as most investment companies know when it’s time to leave. Guided strictly by hard data and facts the decision reportedly comes from the realization the formal wedding business is failing.

 

The growth of David’s Bridal has slowed over the past few years and now its owners are getting out.

 

Sources, including the respected Pew Research data center, suggest irreparable aversion towards marriage in the way it’s traditionally viewed. While there are probably just as many unions that include simple, civil, same-sex, interracial, destination, etc. marriages, to walk down the aisle and run to a catering facility for freezer-tasting meals– for $30,000+– is no longer the standard of today’s couples.

According to sources familiar with the story David’s and its owners are not blind to the facts and series of events leading to their decision to sell. In the past year we’ve seen the Knot run to China looking for a broader market, admitting the competition in the United States makes it difficult, if not impossible to grow. The wedding business saw the predicted failure of Get Married, despite efforts by their owners to try to find creative ways of sustaining a profitable level of operation.

The steady decline of newsstand magazine sales, particularly Brides, who remains in the business despite shrinking advertiser support and a recent revamp of their magazine cover, shows a level of tenacity. But even with thicker, more eye-appealing paper and a slightly different cover, a shrinking magazine can only mean shrinking dollars. Followers of Brides say they’re amazed at how they still exist. Some say they’re on a deathwatch.

Currently, an ongoing eWedNewz poll shows 55% of wedding business respondents say they are keeping their heads above water, hoping for things to get better. But with David’s owners decision to dump the retailer and the steady lament of wedding business owners coupled together leads to one conclusion for the business-minded: get out.

Sources say David’s and its owners are following the move of Martha Stewart who recently abandoned their direct stake in the wedding business, selling their stock in Wedding Wire to a group called Catalyst. Martha took the money, ran and forged a deal with the review website, funneling local traffic to them.

Last year David’s shut down Priscilla of Boston, yielding to the high cost of operating the stores and a less willing consumer to spend for merchandise they offered. Sources told eWedNewz the company was encouraged by the growing interest and success of their Vera Wang partnership, banking that the savings of shutting down Priscilla stores and higher ticket prices delivered by Wang products would improve margins.

Even David’s Bridal that leveraged off-shore manufacturing in China to cripple their competition has found they’re losing sales to online pirates that bypass them and all American gown makers, leaving them at a price disadvantage, as consumers go direct.

While at another news format in 2010 I learned, David’s was hopeful at some flippy-floppy numbers and reports by the Wedding Report that encouraged them to stay in the game. Encouraging numbers that rose after the steep decline in wedding planning and spending during the 2008 market collapse that now falter,  growing indicators say a wounded wedding market will not rebound, as hoped.

Crediting a close collaboration between David’s Bridal and Men’s Wearhouse, Vera Wang tuxedos were added for the 2012 season. Online searches for Vera Wang products, including tuxedos, are high on the scale this season, behind Calvin Klein, only because of their longstanding track record in the category.

 

What do you think?

 

 

 

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2012

Not Your Father’s Suit– or Tuxedo

By Paul Pannone

It’s silly to say or even think about this topic but who wants to wear their father’s anything? But that is what’s happening in stores where older (thinking) business people inflict their own person opinions on consumers that wander into their stores– mostly by chance.

An ongoing eWedNewz investigation into why today’s businesses are struggling and losing ground to Big-box operators points back to narrow-minded thoughts that won’t let go of the past or telling a consumer what they should do.

 

Bloggers are bashing the old look of rented tuxedos and taking notice of slim-cut fits. Then everyone wonders why Vera Wang tuxedos are trending in eWedNewz searches.

 

We’re watching Men’s Wearhouse slowly but surely conquer the rest of the tuxedo business because of such actions. Portions of the fragmented business still lament about mundane items like a bow tie or personal preferences of a shawl lapel over a peak or notch– while the fabrics or companies they choose to do business with are decades old. Many don’t even buy current styles or update the fit but continue to rent 10, 20 or even 30 year-old styles.

Smelling blood, Men’s Wearhouse steps out of the old rag business to freshen up their image and attract a younger consumer with updated products and a new pitch. They still guarantee it but this time, the promise is to a new generation, not the old farty one that refuses to let go.

eWedNewz has learned of similar changes at the manufacturing level that plans to leave the old ways and create new products and systems that appeal to consumers– not placate to buyer opinions that don’t place orders anyway.

 

What do you say?

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2012

Opinions Are Great if they are Open-Minded

By Paul Pannone

Through the years I’ve been amazed at people who impose their opinions on topics where they are not experts. I listen politely (some times) and look at the clock, knowing the time to leave the bloviator is fast approaching. On and on people spout the words  should, can’t, won’t, sending shivers down my spine. But of course we live in a free society where opinions, discussions and ideas spark innovation and a better world.

Tell us what you think and we will tell you why you’re wrong.

 

However,  there is a danger when personal opinions are inflicted on consumers who rely on the ability of the source of information, especially when the opinion is clearly wrong to everyone– except the source of the opinion.

Warnings about self-proclaimed experts tell the real story and what to look for. The mastery of a topic and to call yourself an expert never really happens. The area of ability continues to change, update and evolve leaving everyone short of becoming an expert. The best we can hope for is to be a student of a topic, always learning and refining what we know.

Over the past year we’ve watched self-proclaimed experts get lambasted speaking out of turn, giving false advice and information to people who follow them. They’re allowed to exist because no one calls them out or takes them to task. As long as they don’t venture too far off the real information there’s no upside to fight every idiot that fits the description.

Jim Duhe, as close to an expert on anything weddings as you can get, set the wedding world on its ass when he called out so-called experts.

In Duhe’s rant he tore apart a competitor he felt was doing a disservice to its readers saying,

“Clearly, Brides editors either don’t read their own research or don’t give a crap as to what their readers want to purchase. Like it or not — the price of the average wedding gown is less than $1,000. Like it or not — more than 85% of grooms will rent tuxedos. Brides editors seem much more obsessed with their own projection of wedding day apparel than with serving their readers needs or the interests of the bridal apparel community.”

Other students of their craft support Duhe denouncing the growing number of experts who have a platform on the internet. But the real harm comes from store owners that feel they’ve earned the right to impose their views to unknowing consumers who walk into stores or their office. It’s fact that you can say anything with enough conviction and never be questioned, especially from consumers who are planning weddings for the first time. Most will say they rely on the knowledge of vendors. All will agree they don’t have time, energy or wish to keep shopping and researching because of work and better ways of spending their time. Many take the advice and get what they paid for. But sometimes it doesn’t work so well. If you don;t believe me watch Judge Judy or read the message boards filled with horror stories.

Last week in  my area of knowledge I ran across one of the most stupid display of an expert who actually believes his own bullshit. By his own admission he had the courage to rent a ten-year old garment (I’m being conservative) and admit to it– because a customer was unhappy with a new garment– according to him.

“…it was so bad that the mother paid $75 more to have an old After Six La Strada shipped in! (only reason I did not give her a refund or cover the cost is the fact I advised her against renting the Tony Bowls.)”

True experts reading the story said they couldn’t believe what they read. Most looked at the website and said they’re not surprised, citing how bad it was. But there are others– hundreds– that do the same thing and then wonder why their business is down or failing. Some bring in new styles because of fear and don’t whole-heartedly believe in the product. They never update their website or follow national advertising. They buy a products “in case someone wants it”. The consumer senses the negativity and get pushed into what the vendor likes. In the end the vendor blames everyone else for the failure but himself.

Even in critical subjects that involve a national crisis like wedding piracy, personal opinions and agendas that conflict with a clear, structured and attainable path to a resolution get marred by opinions of others. But, in the end, fact wins over fiction and brilliance over stupidity.

My opinion is to give the consumer the options and factual information and allow them to make their choice. Old outdated products and personal opinions should never be an option. My strong opinion is the culprits will read this and again have their own opinion of why that shouldn’t happen.

What do you think? We’re serious….

 

 

 

 

 

 

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2012