Gilt: More Full Price Sales Will Likely Be A Part Of Our Future

A spokesperson from Gilt got back to me regarding the Vogue partnership. Here’s what she had to say:

• There will definitely be Vogue-sponsored “Shop The Issue” sales in February and March. Vogue hasn’t committed to anything beyond that.
• As Gilt grows, full price sales are something it wants to do, but no definite plans have been made.

Obviously, the big question is: Why bother? Gilt’s already grabbing market share from pretty much every type of retailer, including off-price brick-and-mortar (TJ Maxx), department stores, boutiques and outlet stores.

Well, I think what Gilt may be dealing with now is somewhat of a backlash from designers, as my Twitter follower @EmekaPatrick suggested yesterday. Many boutiques are frustrated with certain designers because they’re producing in-season merchandise for Gilt and allowing Gilt to sell it at a hefty discount while it’s still full price at traditional stores.

Consumers are picking up on this. One boutique owner told me that clients have actually said to him, “I saw this on Gilt the other day for 70% off, why is it full price here?” I’m sure designers are hearing from disgruntled store buyers and have relayed these concerns back to Gilt. I’m also sure it’s not a huge deal for the company as of yet, but as the economy improves and traditional store buyers have more money to spend, Gilt’s going to have to come up with new ways to convince designers to cut them a deal.

That’s not to say Gilt’s original form of revenue will go away. No matter what’s up with the economy, people love sales, even if the product is a couple of seasons old. But in-season merchandise is going to be more difficult to discount down the road. As a frequent Gilt customer, I look forward to observing how the executive team deals with this and other challenges.

Gilt Teams Up With Vogue For “Shop The Issue” Sales, Starting Tonight At 9pm

What may well be its most brilliant marketing move yet, Gilt Groupe has teamed up with American Vogue to hold special “Shop The Issue” sales. The first one happens tonight at 9pm and features See by Chloe, whose safari shirt was profiled by fashion writer Mark Holgate in the January issue of the magazine.

There is very little information available from Gilt–meaning no press release, no blog post–so I’m unsure as to whether or not other designers from the issue will also be featured or if the clothing will be discounted. (I have a feeling that if it is, it won’t be by much. Don’t expect 70% off in-season merchandise here.)

I’ve contacted Gilt and hopefully they can answer my questions. I’ll get back to you soonest.

Update:

The sale is filled with non-discounted items from several labels, including Dooney & Bourke, Giles & Brother and the aforementioned See By Chloe.

The model is doing a lot of Vogue spread-inspired poses.

Gilt is using Vogue’s new feature Steal of the Month as the centerpiece for each sale. That’s a good idea, as long as the designers involved are okay with selling his/her new goods on Gilt.

This biggest news here? Gilt has moved into full-price retail. Yes, it’s still a flash sale, but without the discount, what’s the point?  Gilt execs say that traditional retailers don’t understand the flash sale model. Will they be able to duplicate its success while charging full price?

Decade List: Ten Moments In Fashion That Changed The Business

Like every industry, fashion suffered quite a bit in the Naughts, with enough shuttered labels and disgruntled consumers for an aspiring fashionista to throw in her Hermes towel. However, in my opinion, the triumphs outweighed the missteps.

While the democratization of fashion may have feathered some ruffles, it–in the end–helped to establish a stronger, more lucrative industry. Here, in the spirit of those top ten lists that I know you love reading, I’ve named the ten moments over the last ten years I that believe changed the business of fashion. Maybe not forever, but at least for now.

2000: H&M Opens in the US
In high school, I read a lot of British magazines. (Yes, I was a bit of an anglophile, watching Are You Being Served when I didn’t have lacrosse practice after school.) I soon understood that while British women were terribly obsessed with fashion, they were also obsessed with not paying exorbitant amounts of money for said fashion. In the pages of British Vogue I discovered H&M, a Swedish retailer that sold clothes rivaling Target in price and Prada in style. By the time I was interning in New York City at a downtown magazine, H&M had arrived on 5th Avenue.

After work I’d take the N up to Rockefeller Center and spend an hour rifling through racks of asymmetrical blouses, wide-leg trousers and colorful plastic baubles.  H&M went on to change American retail, heralding in the concept of fast fashion–clothing that is made cheaply, stylishly and above all, quickly. Soon enough, European favorites like Zara, Topshop and Mango were also infiltrating US shores, leaving All-American basic labels like Gap and Abercrombie & Fitch in the dust.

2001: Vente Privee Launches
Remember life before Gilt Groupe? If you responded by saying “not really,” you’ve got to thank its predecessor, the France-based Vente Privee. You all know the story: Company launches exclusive online sample sales, reports $800 million in revenue in 2008. A decade later, the private sale is the hottest retail model around.

2001: PPR Wins Gucci
After an epic battle between billionaire Bernard Arnault of Moet Hennessy Louis Vuitton (LVMH) and billionaire Francois Pinnault of PPR, the latter finally gained control of the Gucci Group, which includes Gucci, Bottega Veneta, Yves Saint Laurent and more. As PPR moved from discount retail into the world of high luxury, it was obvious to designers that being a part of a big conglomerate like LVMH, PPR or Richemont was a way to build a brand without sacrificing design integrity. The corporate infrastructure of these companies helped brands like Balenciaga, Stella McCartney and Edun to increase profits through fragrance, accessories and other well-thought-out licensing deals.

2003: Target Signs Isaac Mizrahi
When Target brought him on to design a women’s fashion collection in 2003, Isaac Mizrahi was nothing more than a 1990s flash in the pan, better known for his documentary Unzipped and a short-lived talk show than beautiful preppy-glam clothing. Yet women couldn’t get enough of what Mizrahi offered at Target: Shiny shift dresses, polka dot blouses and pointy flats. By 2005, the cheap-chic collection garnered $500 million in sales for Target. Mizrahi has since moved onto Liz Claiborne, but his work at Target made it okay for high-end designers to collaborate with low-end retailers.

2004: Rachel Zoe Becomes a Household Name
While celebrity stylists have been around for decades, it was the Naughts that made them rich and independently famous. When Rachel Zoe transformed train wreck Nicole Richie into a chic hippie, she also made big sunglasses, tiered prairie dresses and honey-highlighted hair the look du jour. Today, stylists command thousands of dollars per day for their services, and more and more young women are clamoring to follow in their footsteps.

2005: LVMH Sells Lacroix, Proving that Fashion is More About Commerce than Art
After standing by his money-sucking side for nearly 20 years, LVMH exec Arnault finally sold off Christian Lacroix’s failing fashion business to Florida-based investment company Fallic Group for a measly 2 million euros. We all know how the story ended: Fallic was unable to revive the brand, which made beautiful six-figure couture dresses but could not connect with a consumer at the fragrance, accessory and ready-to-wear levels. It was reduced to a licensing operation at the end of 2009. As sad as it is that Lacroix is not making his beautiful dresses, his struggles serve as an example for the rest of the fashion industry. The lesson: If you want to stay small, stay small, but if you want to make a lot of money, you’ve got to play by retail’s rules. Design may be an art, but fashion is a business.

Jil Sander and Others Lose the Rights to Their Own Names
Another indication that fashion is serious stuff: After disagreements with their corporate backers, designers like Jil Sander, Helmut Lang and Camilla Staerk have lost the rights to their name brands, which are also their given names. Jil Sander returned with +J for Uniqlo, Lang stopped designing altogether to do fine art and Staerk now designs under her surname.

Versace, Ferragamo and Prada Hint At–But Don’t Go Through With–IPOs
From whispers at Salvatore Ferragamo and Versace in 2006 to Tommy Hilfiger, and Prada’s de-listing–then hopes of re-listing–at several points throughout the decade, many fashion companies sought out public funds, but for one reason or another, were not able to actually attain them. Of course, the 2008 crash made raising money even more difficult. Yet Hilfiger, Versace and Prada still haven’t ruled out public offerings. The Teens may just be the decade of fashion IPOs.

2005: LVMH Starts Suing the Heck out of Copyright Infringees
From eBay to Wal-Mart to Bad Boy Records, LVMH crusaded against counterfeit handbags and copyright infringements in the last half of this decade. The lawsuits resulted in an industry-wide debate over what could-and couldn’t-be copied. Intellectual property lawyers prayed to the Louis Vuitton gods each day, thanking them for making their profession more lucrative than ever.

2006: Tom Ford Proves You Can Still Build A Luxury Brand From (Almost) Scratch
After years of conglomerates buying the rights to old fashion houses and hiring the Next Big Designer to revive the brand, Tom Ford did something radical. He broke away from Gucci (where he had played the corporate fashion game, making both said brand and YSL financially viable) and launched a label under his own moniker. Tom Ford currently consists of fragrance–a partnership with Estee Lauder–men’s suiting, shirts, shoes, sunglasses and a few discreet shops that keep customer’s measurements on file for bespoke services. Next step? Women’s wear. Could Ford be THE brand of the Teens? I sure think so.

Rodarte For Target Already On eBay

I came across this blue pin dot Rodarte for Target dress on eBay this morning. The current bid is $49.99–it will retail for $40. I also found this sequined leopard print dress, with a Buy It Now price of $150.

The thing is, Rodarte for Target doesn’t land in stores until December 20. There are a few pieces available at the Target To-Go shop in New York, but the blue and leopard print dresses aren’t included in that mix. Maybe they’re part of the lineup at the Washington, D.C. or San Francisco pop-up shop.

Otherwise, I’m curious as to where the sellers, closettherapy_az and june2machina, got these dresses. They both have pristine seller ratings, so I’m confident these auctions are legit. Look for an update here as I investigate further.

Target To-Go: (Possibly) Coming To A City Near You!

Target To-Go–the big box’s 2010 incarnation of the now-ubiquitous holiday pop-up shop–opens its doors in New York, San Francisco and Washington D.C. tomorrow, December 11 at 10am, locking them shut on Sunday, December 13 at 8pm. Each city’s dwellers (and visitors) will get a chance to shop the Rodarte for Target line one week before it hits stores. And they’ll also get to sift through an edited selection of Target’s top offerings for the holidays, including Nintendo’s Wii Fit Plus, gift sets from Soap and Glory and toys like Nerf’s Dart Tag. Gifts will be wrapped in special holiday paper created for Target by interior designer Marcel Wanders.

And in the spirit of the season, Target will place 500 “over-sized and easy-to-identify” gift tags across each of the three cities. If you find a gift tag, return it to the Target To-Go location and you’ll receive a gift card for $10-$500. Each time a ticket is returned to Target, the company will donate $500 to The Salvation Army.

Sure, that all sounds great–especially the idea of shopping the Rodarte for Target collection just in time for the holiday parties I’m attending this week and next–but what I’m really impressed by is Target’s determination to reach beyond to the confines of New York City this time around.

While those of us who live in the area are lucky enough to enjoy the slew of pop-up shops, sample sales (many better than what’s offered online) and special events held in New York everyday, that’s not the case in most other U.S. metros. Target, by any stretch of the imagination, isn’t a New York-centric brand. While it’s smart to attract new customers this time of year, its core customer should be rewarded as well. That’s why To-Go shops in SF and D.C. make me so happy–they’re more inclusive while remaining exclusive. Here’s hoping Target brings this concept to even more cities next year.

P.S., here are the addresses for the three locations:

• New York City: Gansevoort and Washington Streets, at the High Line entrance
• San Francisco: Mint Plaza, 5th Street between Market and Mission Streets
• Washington, D.C.: M Street NW and Wisconsin Avenue NW in Georgetown

Inside Zac Posen’s Line For Target

When the news broke this morning of Zac Posen’s appointment as the next GO International designer for Target, I can’t say I was surprised. Here’s a peek inside the making of this collection, as told to me by someone close to the project.

• Target hired manufacturing behemoth Li & Fung to design and produce the collection.
• The collection was created this fall. While the announcement is only happening now, it’s been completed since October.
• This isn’t too shocking, but Zac Posen didn’t actually design the collection. While he most certainly had input on what the pieces looked like, as well as final say, a team of designers at Li & Fung are the ones who put it together.

7 Real Cyber Monday Deals

Cyber Monday reminds me of those fake holidays invented by the card companies: It grabs your attention, but at the same time, you know there’s something unauthentic about the whole thing. But while Cyber Monday may be a non-existent phenomenon dreamed up by greedy marketers eager to drive more shoppers online, there’s no denying that some decent bargains emerge from the rubble. Here are seven sales worth checking out:

Blue Nile
The diamond expert is offering free overnight shipping for purchases made today. That means nearly all orders–including engraved items–will ship this afternoon and arrive tomorrow morning.

Oak
This New York mini-chain of boutiques sells a mix of conceptual, contemporary and independent brands, including Comme des Garçons, Kain and Complex Geometries. Luckily for those outside of the tri-state area, it’s also offering a 20% discount on clothing and shoes–both in-store and online–through the end of the day today.

Amazon
The king of online retailers offers unbeatable prices year-round, and its special Cyber Monday deals exceed expectations. Along with the typical markdowns on electronics and video games, the site is offering an extra 40% off selected jewelry, 30% women’s boots and 20% off denim purchases of $100 or more.

Red Stamp
I love stationery but  I don’t love the steep prices. (Even if it is letterpressed.) That’s why Minneapolis-based paper store Red Stamp’s deal is so worthwhile, especially for those searching for the perfect holiday cards. Through the end of the day today, customers receive a 15% discount on all orders as well as $1 shipping for orders $70 or less. (Orders of $70 or more ship free.) Personal favorites include Elum’s Birch Tree and Berries and Egg Press’s Gang of Gnomes.

Shopbop
Despite the fact that Shopbop’s goofy models and kind of slutty styling turns me off big time, the contemporary fashion site’s unmissable sales keep me coming back. (In the past I’ve found Brian Reyes dresses and Proenza Schouler shoes discounted by 70%.) It’s offering $50 off an order of $300 or more, $100 off $500 or more, $150 off $700 and $250 off $1,000 through the end of today. Enter the code GIFT4U at checkout to benefit.

Nike
Along with 25% off all clearance through December 1, Nike is offering free shipping on all orders through December 22.  If you’re into the personalized kicks, this is the time to pounce.

Nordstrom
This upscale department store is already known for its excellent customer service online and off, so adding free shipping on purchases of $100 or more through December 20 only sweetens the deal. What’s more, the site is already offering up to 50% off in-season items like Burberry boots, Valentino handbags and 3.1 Phillip Lim silk dresses.

Breaking: Chanel Bags Being Sold At Costco?!

According to the NY Post review of the new Manhattan Costco store, there are classic Chanel handbags being sold at the discount retailer. I’ve contacted both Chanel and Costco for a comment. This is hard for me to believe. I’ll update as soon as I know more.

Update: Unsurprisingly, neither Chanel nor Costco have responded to my messages regarding this matter. But I’m going to keep on them.