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: , , , , , , , , , , ,

No Surprise; David’s Bridal on the Auction Block

Posted on June 10, 2012 Written by 14 Comments

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?

 

 

 

eWedNewz

All Rights Reserved

2012

Filed Under: Anti Fairy Dust, bridal, Bridal Dresses, Bridal Magazines, Bridal Shops, Calvin Klein, Current Events, Data, Economic news, eWedNewz, General News, Men's formal wear, Ongoing Story Coverage, Ongoing Story Investigation, Paul Pannone, Publications, Research, retail, Same-sex marriage, The Groom, The Knot, tuxedos, Vera Wang, Wedding Dresses, wedding industry, wedding websites, Wedding Wire Tagged: , , , , , , , , , , , , , ,

Not Your Father’s Suit– or Tuxedo

Posted on May 8, 2012 Written by Leave a Comment

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?

eWedNewz

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2012

Filed Under: Anti Fairy Dust, eWedNewz, General News, Men's formal wear, Ongoing Story Coverage, The Groom, tuxedos, Vera Wang Tagged: , , , , ,

The Tuxedo Business Gets a Boost from Vera Wang and Tony Bowls; What a Situation

Posted on April 25, 2012 Written by 4 Comments

By Paul Pannone

2012 will be remembered as the year tuxedos were reinvented– not by the narrow-minded People of the Tux– but by women dress makers and a TV personality. After years of decline the sale and use of tuxedos are on an upswing, attracting foreign manufacturers and other interested investors that hear the buzz and look to capitalize on the resurgence.

Updated fit, new fabrics and stylish innovation get the credit for the upswing, led by manufacturers that use their tailored suit division intelligence and are able to quickly update silhouettes for a consumer no longer willing to wear his father’s tuxedo.

 

According to Google searches for the term “tuxedos” and related terms have been in decline since 2006. But current related tuxedo searches are up significantly at this time of year.

 

Internet searches hitting eWedNewz stories about tuxedos continue to grow in peak demand times. Searches for Vera Wang tuxedos are gathering attention, fueled by gown sales at David’s Bridal. Brides that buy Vera Wang dresses are directed to Men’s Wearhouse for the formal wear– a natural choice.

The popular Tony Bowls dress brand was used by Jim’s formal wear to create a Tony Bowls tuxedo that also sold well and is renting for prom. Again driven by dress sales, the emotional connection is a natural transfer from female to male escort.

The tuxedo talk of the season came from the Jersey Shore TV celebrity, the Situation, who promoted the line. Sources like TMZ, MTV, MSNBC and countless other news sources created a media event for the line. The orders and production for the number one new tuxedo for 2012, the Avalon, was cutoff, creating an even higher demand for the product.

So what do all these new tuxedo brands have in common? The same people who make Calvin Klein, Ralph Lauren, Joseph Abboud and other retail brands– FLOW Formal– make the garments for Vera Wang, Tony Bowls and the Situation.

Fashion sources say they’re not surprised at the growing buzz for tuxedo use. Expert, Jim Duhe, told eWedNewz;

“Interest in Vera Wang tuxedos is growing.  Why? Was there some type of divine intervention?  Did an arch angel come down from the sky and suggest that people should search the internet for Vera Wang tuxedos?  Did the compulsion to search for Vera Wang Tuxedos come to people in dream form?

Maybe you’ve noticed that Vera Wang tuxedo ads now are included in all major national bridal publications.  The campaign is  modest — spreads in each issue.   No retail locations are specified on the ad.  However, readers are directed to go to the Men’s Wearhouse web site.  Interesting.”

The rise in interest for tuxedos sparks interest from manufacturing and licensing organizations that want to get into the tuxedo business but admit they know very little of where to begin. Most don’t realize the cost involved and quickly back away when they find out what is involved.

 

 

eWedNewz

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2012

Filed Under: Advertising and Marketing, Calvin Klein, Celebrity, Men's formal wear, Promotions, Ralph Lauren, Social Media, The Groom Tagged: , , , , , , , , , ,

FLOW Formal Tapped to Manufacture Products for Two Big deals

Posted on December 21, 2011 Written by 3 Comments

 

By Paul Pannone

The two biggest buyers of formal wear business selected FLOW Formal to manufacture private label programs with top fashion gown manufacturers, Vera Wang and Tony Bowls. The  two separate licensing arrangement between Vera Wang, Men’s Wearhouse and Tony Bowls, Jim’s Formalwear required a manufacture with the wherewithal and financial ability to produce and deliver massive quantities of products in a very tight delivery window.

eWedNewz discovered FLOW Formal is one of the few suppliers that could handle the deals because of their worldwide production and strong financial ability to offer the upfront cost of materials, labor and shipping requirements.

 

eWedNewz watches FLOW’s continued to grow in the diminishing formal wear business, supplying formal wear under the Calvin Klein, Ralph Lauren and Joseph Abboud labels to the open-market trade.

 

 

The shift from generic, fictitious products towards recognized, better branded goods is what prompted the licensing deals, raising the ceiling on margins for store owners that have not kept up with updating merchandise in the wake of a faltering economy.

In 2010 the tuxedo manufacturer diversified its lineup of products, launching innovative styling under the TV Celebrity endorsement of “The Situation”. The collaboration leverages millions of his followers on television and online, now aware of FLOW manufactured products bearing his name.

The company continues to offer tuxedo basics under their Lord West brand, acquired when Formal One merged with Lord West in 2006 to form “Formal Lord One West”, aka, FLOW. The merger continues to offer better formal wear retailers in the tuxedo trade with quality products under world-class names.

FLOW continues to refine its systems, investing a significant amount of resources to better manufacturing, production and promotion of men’s rental and retail tuxedos and accessories. A growing presence on the internet includes social media and a planned re-launch of their company website, www.tuxedos.com , slated for early spring, 2012.

The owner and management at FLOW declined to comment on the specifics of the deal.

eWedNewz continues our coverage of the early 2012 launch and success of both deals.

 

 

eWedNewz

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2011

Filed Under: Calvin Klein, Economic news, General News, Joseph Abboud, Men's formal wear, Ralph Lauren, retail, Social Media, tuxedos, Vera Wang, wedding industry, wedding websites Tagged: , , , , , , ,

Men’s Wearhouse and Vera Wang Teaming Up with Tuxedos Shouldn’t Come as a Surprise

Posted on December 15, 2011 Written by 2 Comments

 

By Paul Pannone

 

Revered wedding gown designer, Vera Wang, continues her move into other products and market areas, expanding her business in a tough economic environment. Since announcing a deal with David’s Bridal Wang’s influence on the dress business continues to grow. But in a shrinking wedding market Wang’s strategic move into other areas and becoming more affordable makes perfect sense.

 

Vera Wang’s influence has now reached the men’s formal wear category.

 

Vera Wang and Men’s Wearhouse are now partners in the men’s formal wear category. The move should come as no surprise; the David’s Bridal and Men’s Wearhouse love affair dates back to 2006 when Federated Department Stores agreed to sell its Bridal Group division in two separate transactions. Leonard Green & Partners of Los Angeles reportedly paid about $750 million for the 269-store David’s Bridal and 10-store Priscilla of Boston stores.

Men’s Wearhouse took over the 511-store After Hours Formal wear business for a reported $100 million-dollars but the two continued to work together sharing leads and cross promoting their business to the same bride. David’s Bridal has been pushing brides through MW doors for years;

Is your heart set on a totally integrated color scheme? David’s Bridal and Men’s Wearhouse, our tux rental partner make it easy to pull together your whole wedding with our exclusive color-coordinated bridal party dresses and tuxedo accents. Take even more guesswork out of creating a perfect match with our coordinated invitations and exclusive ceremony collections. Find the perfect accents for your wedding theme: an array of personalized invitations, thank you notes, attendant’s gifts, wedding day essentials, and so much more.

David’s Bridal recently entered the photography business in an added effort to extrapolate as many budget dollars from the same bride as possible. David’s Bridal continues to refine and hone their business leveraging low, medium and higher cost goods in their core dress business and redirect the traffic to partner relationships in their network.

Priscilla of Boston stores are due to close by the end of 2011, killed in part by the success of Vera Wang’s higher ticket prices in David’s Bridal stores. Sources that did not wish to be identified earlier this year said Vera Wang products were outselling comparable products in Priscilla of Boston stores “four-to-one” and was a leading cause in the decision to dump the Priscilla business and overhead that went along with it. Sources told eWedNewz cost cutting and better deployment of resources is an ongoing process at David’s– always looking to the bottom line.

Reaction  to the MW and VW deal has so far been mixed, as traditional tuxedo companies say men won’t wear a woman’s label. But from a marketing view brides are still the primary decision makers and will want coordinating Vera Wang tuxedos with their gowns.

 

What do you think? Will Vera Wang tuxedos rock?

 

 

 

 

eWedNewz

All Rights Reserved

2011

Filed Under: General News, Poll, The Groom, Vera Wang, wedding industry Tagged: , , ,