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

Posted on April 4, 2013 Written by Leave a Comment

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?

 

eWedNewz

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2013

Filed Under: Anti Fairy Dust, Calvin Klein, Caterers, Data, eWedNewz, Florists, General News, Ongoing Story Coverage, Ongoing Story Investigation, Paul Pannone, Photography, Poll, Ralph Lauren, Swimwear & Bridal Stores, The Groom, tuxedos, Vera Wang Tagged: , , , , , , , , , , ,

Hey Brooks Brothers are you OK?

Posted on March 13, 2013 Written by 1 Comment

By Paul Pannone

Founded in 1818 as a family business, Brooks Brothers is the oldest men’s clothier chain in the United States. The private company has been owned by Retail Brand Alliance since 2001 and is headquartered on Madison Avenue in Manhattan, New York City. During its rich history the company gave such notables like Ralph Lauren their start. The iconic company’s legacy is secure in history but a closer look shows the difficulty of executing their long-standing tradition in the current economic environment isn’t easy.

At $135 dollars Brooks Brother Supima Twill dress shirt gives their customers what they want and what the company is known for.

Known for their quality, choice of fabric materials and construction Brooks Brothers products appeals to an older generation who know good from bad. But in a current market where H & M is the benchmark, it’s getting harder to justify the price of a suit, shirt or accessory– or even shopping at one of their conservative stores.

Personal experience and preference often takes us into one of the stores just to see where they’re at. At around $100 dollars for a simple shirt it’s a stretch to justify a purchase save for only the most important occasion. It’s sometimes OK to splurge and get something for yourself and not bother to look at the price-tag. But for everyday clothes there are options. As a base Brooks Brothers still appeals to successful Wall Street and other financial professionals, doctors, lawyers, etc.  But in today’s economy it’s doubtful the market is growing with any kind of robust, measurable scale.

According to men’s apparel veterans and fashion watchers, including Paul Eilenberg, the company gets it right 95% of the time. But in their search and struggle to appeal to a new customer breaking tradition is a painful process to watch. This week we saw the  latest attempt ; it was like painfully watching Santa Clause trying to break dance.

At $675 dollars I want to meet and interview the guy that buys this outfit from the new Fleece collection.

eWedNewz got a look at what Eilenberg identified as the 5% this week and wondered how things really are at Brooks Brothers.  On Twitter, one of many gauges we look at these days, the company boasts a formidable 31, 500 followers. H & M has 1.8 million. Yes, we know, two totally different markets. But we also don’t see H & M trying to be the conservative company Brooks Brothers is known for.

What do you think?

When shopping for a simple dress shirt, how much would you spend?

eWedNewz

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2013

Filed Under: Anti Fairy Dust, Economic news, General News, Ralph Lauren, retail, Uncategorized Tagged: , , , , , ,

Popular Brands compared to Unknown Names

Posted on November 26, 2012 Written by 1 Comment

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.

 

eWedNewz

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2012

Filed Under: Anti Fairy Dust, Bridal Dresses, Calvin Klein, Celebrity, General News, Men's formal wear, retail, The Groom, tuxedos, Uncategorized, Vera Wang, Wedding Dresses Tagged: , , , , , ,

Ralph Lauren to drop Rugby; looks to Retail for Future Growth, Tuxedos Included

Posted on November 5, 2012 Written by Leave a Comment

By Paul Pannone

An ongoing eWedNewz story following moves at Ralph Lauren shows the company plans to invest in retail as a future growth engine.  The company said they’ve approved a plan to discontinue its Rugby brand operations “in order to focus resources on higher growth, more scalable global opportunities with the core Ralph Lauren brand.” The company will close 14 stores and the e-commerce site over the balance of fiscal 2013 while continuing to follow long-term growth objectives that will utilize e-commerce platforms. According to a company statement emphasis will move towards its own retail operations rather than wholesale.

Ralph Lauren bids adieu to Rugby and focuses more on retail operations.

 

The Lauren brand remains strong in every market world-wide and continues to perform well for companies that carry the best recognized brand in apparel.  For that reason retail becomes a prime area of growth for a tired tuxedo industry that has declined for at least a decade if not longer.

In an ongoing investigation old, expired licensing arrangements and fictitious names has driven more men to invest in their formal wear instead of renting outdated merchandise. Recent launch of new Ralph Lauren super-fine formal wear is helping to settle the age-old debate of whether to own or rent tuxedos. Cuttings are in place for an early 2013 arrival for retailers who understand the power of the Ralph Lauren brand.

According to FLOW Formal, the holder of the licensing agreement to make Ralph Lauren formal wear, the brand will be placed in better stores who meet the qualifications and will treat the brand with due respect. Included are selected formal wear, men’s and bridal stores.

 

 

eWedNewz

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2012

Filed Under: Celebrity, Ongoing Story Coverage, Ongoing Story Investigation, Paul Pannone, Ralph Lauren, The Groom, tuxedos Tagged: , , , ,

The Week of October 1st in Review

Posted on October 6, 2012 Written by Leave a Comment

By Paul Pannone

The release of a new retail program under the world-class Ralph Lauren label in Chicago helps settle the endless debate of whether to rent or own a tuxedo, giving consumers the option to do both. Until now there has not been a comprehensive retail program with a recognized brand that offers the flexibility of separate coat and pant sizing in finer fabric and affordable pricing.

The launch at the Bridal Market, Chicago, attracted the attention of better bridal store owners who deal in branded products for dresses and understand how to leverage the recognized names for higher profit margins.

Consumers searching for pricing information drove up a story released in June involving the average price of a wedding dress. Information provided by TheKnot showed the average cost holds steady at around $1,100 dollars nationally.

Print organizations work harder than ever to give advertisers value beyond magazines, melding print with digital. Magazine are proving data and information to their readers and advertisers to give a better understand of the market and what consumers are interested in.

 

 

eWedNewz

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2012

Filed Under: Anti Fairy Dust, bridal, Bridal Dresses, Bridal Magazines, eWedNewz, facts and figures, General News, Men's formal wear, Promotions, Proms, Publications, Ralph Lauren, Research, retail, The Groom, The Week in Review, tuxedos, Wedding Dresses, wedding industry Tagged: , , , , , , ,

Ralph Lauren Recognized as the Premier Men’s Label Worldwide

Posted on September 13, 2012 Written by 2 Comments

 

By Paul Pannone

Ralph Lauren, the man and the brand, continue to dominate the worldwide market of major categories, creating a sense of quality and value that is hard to surpass. The brand is famous to both men and women giving quality assurance to products that holds the name.

 

 The Ralph Lauren brand continues to grow and is sought by a new generation of consumer online, researching where Ralph Lauren products can be found.

 

Sources throughout the world acclaim the Ralph Lauren brand including Men’s Style Power; giving the reasons why.  The Lauren name adorns many different items but its root are well-entrenched in the men’s fashion category. Lauren’s Purple Label called an “investment” because of its timeless features, still raises eyebrows among the select group that can afford the upgraded name.

According to some manufacturers and licensees of the name that’s what drives the look of Lauren; paying dividends to retailers that take the time to research, listen and learn what consumers want.

 

In formal wear the Lauren Ralph Lauren brand of classic tuxedos continues to out rent no-name, outdated and fictitious names year after year. For next season two new models, the Cristal notch and Moet peak update older styles and silhouettes.

Staying classic is stylish; but updating is equally as important. Subtle differences in fit, lapel size and overall appearance keeps the man wearing the clothes meaningful, important and taken seriously when he is seen at Black Tie functions.

To find out more about Ralph Lauren formal wear in your area please friend FLOW Formal on Face Book.

eWedNewz

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2012

Filed Under: Advertising and Marketing, Anti Fairy Dust, Celebrity, facts and figures, General News, Men's formal wear, Ongoing Story Coverage, Ongoing Story Investigation, Ralph Lauren, The Internet, tuxedos Tagged: , , , , , , ,

Ugg Boots Kicks China in the Ass; Joins Growing List of Wins

Posted on May 2, 2012 Written by 1 Comment

By Paul Pannone

Ugg boots was awarded $686 million in two separate judgments in federal court in Chicago against websites selling counterfeit products online. The company is among the latest to join the growing number of victories in the fight against online piracy of property and sale of knock-off products to American consumers.

 

These boots are not just made for walking anymore. Ask China.

 

Also this week Hermès won a $100 million judgment against dozens of Web sites selling knockoffs of its luxury handbags and other items, as companies, fed up with mounting losses, aggressively fight back with any legal means they can.

eWedNewz has learned of plans for similar suits from wedding companies to be filed in US courts later this year, after the legal path set by the current decisions.

Like other wins for True Religion, Louis Vuitton, Ralph Lauren and the growing list of winners in court, none of the companies expect to recover any money but use the victory as a start in the ongoing battle to stop the piracy. Blatant disregard for the law on the part of suspects behind the piracy  fail to answer complaints, much less pay the awarded damages. They simply re-open websites and are back in business very quickly.

“In the good old days, you were nailed when you broke the law.  You paid the fine even if it put you out of business.  Today,  if they nail you for the crime (and that’s a big IF with years and millions invested in litigation) — if they nail you for the crime, you close shop and open under a different name tomorrow,” according to Jim Duhe of the Wedding Water Cooler.

 

 

 

eWedNewz

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2012

Filed Under: bridal, Bridal Dresses, Current Events, eWedNewz, General News, Ongoing Story Coverage, retail, The Internet, wedding industry, wedding websites Tagged: , , , , , , , ,

The Price of Proms Rise but Profits Remain Stagnant

Posted on April 18, 2012 Written by 5 Comments

 

By Paul Pannone

The cost of nearly everything continues to rise and depending where you live it rises faster and more definitely than other parts of the country. eWedNewz discussions with store owners shows that even though prices are rising profits are not. Many say the increases are just about covering costs they’re experiencing from higher working expenses and energy prices.

Spending is up for rite of passage events, especially for families barely above the poverty level. The money is coming from somewhere.

 

 

A survey released by VISA shows some encouraging– or discouraging– news for the economy, depending on your point of view. The survey says spending is up by 33% but the greatest increase comes from the lowest income group.

According to the Visa survey, families in the Midwest spend less on the prom with an average cost of nearly $700. The survey shows Northeastern families spend over twice as much with an average cost of nearly $2,000. The average American family with teenagers plans to spend $1,078  — that’s for each child — on the prom, a 33.6 percent increase over the $807 spent last year.

The Visa survey finds that families in the lower-income brackets, less than $50,000, plan to spend even more — $1,307 per child. And those in the very lowest bracket, under $20,000, plan to spend $1,200 — more than 6 percent of their annual income. The dubious part of the survey says families earning between $20,000 and $30,000 plan to spend an average of $2,635, which would represent almost 9 percent of annual income for those making $30,000. Those families are just above the federal poverty level, which is $23,050 for a family of four.

The encouraging part is spending is up at all. eWedNewz discussions with apparel store owners, limousine companies and other prom associated businesses say there’s less discounting than ever this year. Nearly all agree the worst companies were forced to fold since the 2008 economic collapse. Those that remained were the strongest and most business-minded that understand there has to be a profit for all the hard work that goes into entrepreneurship. Yet most store owners say any other profit generated by price increases are quickly eroded by rapidly rising costs, leaving no net gain.

Store owners say they’ve not seen this kind of spending in over four years and with new innovation in fashion, kids are searching for the newest styles no matter what the cost is. Stores also told eWedNewz struggling parents would rather let their teenagers have what they want for rite of passage events instead of upgrading their iPhone.

Better Tuxedo store owners say they’re able to boost net margins by renting recognized brands including Calvin Klein and Ralph Lauren. This season innovation and the addition of The Situation products is helping to boost profits.

 

 

 

eWedNewz

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2012

Filed Under: Anti Fairy Dust, Bridal Shops, Current Events, facts and figures, General News, Proms, retail, tuxedos Tagged: , , , , , , , , , , ,

True Religion, Louis Vuitton, Ralph Lauren wins unlikely to Pay Off in Dollars

Posted on April 3, 2012 Written by 3 Comments

By Paul Pannone

A recent victory by True Religion jeans was still just the start in creating a structured environment on the Internet where brands try to gain control of their intellectual property. According to sources familiar with the story shutting down pirate websites is just a game of Whack a Mole with little assurance of a happy ending. But sources also say the wins are the start– a necessary  beginning for a chance of succeeding.

 

Is it a real Louis Vuitton or a Canal Street Copy?

 

In 2010, Ralph Lauren won a landmark battle for others to follow with the help of The law firm Greenberg Traurig, regarded as the best in the business. In June, 2011, Tony Birch won $164 million dollar judgement with almost no chance of getting the money from the sites. But, like the RL and True Religion decisions, 232 domain names used to sell Tony Burch fakes were permanently disabled and turned over to the New York-based fashion label.

Legal teams are also interested in certain unique design details are covered in the decisions to dissuade future potential abusers from infringing on the brand’s success. But are some measures going too far?

Recently, Louis Vuitton may have gone a bit off the path by sending a cease-and-desist letter to The Penn Intellectual Property Group (PIPG) at the University of Pennsylvania Law School citing concerns over an exercise in counterfeiting. The concerns involved the impression that Louis Vuitton may have approved or somehow sponsored the symposium and appealed to the learning institute to immediate halt the use of the brand’s likeness.

So in other words mystery Asian people get off from paying huge sums of money while sitting-duck learning institutions are left holding the bag; served with cease-and-desist letters.

Discussions with brand administrators that did not wish to be identified told eWedNewz, “Anyway that we can get our point across or have people fear retribution for tampering with our brand will be used.”

“Winning these types of battles and getting to the right political people is the only way to win this war,” according to Steve Lang. Lang is rallying wedding dress manufacturers by leveraging the help of his legal team and contacts to shut down the culprits at the root of the financial and shipping sources.

 

eWedNewz continues our investigation into this story.

 

eWedNewz

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2012

Filed Under: Bridal Shops, Bridal Shows, General News, Ongoing Story Investigation, Uncategorized, wedding industry, wedding websites Tagged: , , , , ,

The Situation Brand Continues to Grow

Posted on March 15, 2012 Written by 1 Comment

 

By Paul Pannone

This month the Situation marketing team unveiled further plans to promote their products, cross-marketing with licensing partners while creating better value for all its participants. eWedNewz watches as the team devises new ways where products and partners work together and build a better overall brand. We also notice a way where tips, thoughts and some fun are added through a new segment to their strategy called Sitch News.

 

Business is booming at the Situation company. Marketing man, Mike Sussman (far right) , enjoying some family time at a company board meeting.

 

eWedNewz has watched the growth and reported the newZ last October. In an eWedNewz story we successfully called the business end of the Situation is nothing short of brilliant. The company continues to add new partners, leveraging their growing base of followers and friends via social networks.

eWedNewz has learned of a promotion that ties in products for a prom theme with prize giveaways to include eye-wear, a dress and the Sitch’s own line of tuxedos made by their formal wear partner, FLOW.

Marketing man, Michael Sussman of the Situation company told eWedNewz, “We are simply having the fans post their prom plans on Facebook and tagging Flow Formal. On Fridays we will select a winner and give them the choice of which tuxedo they want, free of charge.  For example, the Asbury in black or the Avalon in white.”

Likes resulting on both the Situation and FLOW pages are increasing because people want to be a part of the promotion, not because they have to. Since launching the Situation tuxedo line last August, demand for the front-running product– the Avalon– has far outpaced the ability to meet the demand. Currently steps in work to increase production for the 2013 season are being worked on.

From observation Situation marketing is not concocted in some stuffy corporate boardroom environment; but rather it develops naturally at the behest of its audience. What makes the strategy successful is providing the company’s growing base of supporters what they want, when they want it; a theme we’ve been talking about since the 1990′s in tuxedos. Finally FLOW went out and did it for the tuxedo business.

 

eWedNewz

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2012

Filed Under: Anti Fairy Dust, Celebrity, eWedNewz, General News, Ongoing Story Investigation, Paul Pannone, Promotions, retail, Social Media, The Internet, Uncategorized, wedding websites Tagged: , , , , , , , , , ,
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