According to a new report, “The Truth About Ready-To-Wear”by Spanish Bank BNP Paribas, ready-to-wear for luxury brands could be a thing of the past. For most high fashion houses, the primary moneymaker is fragrance and leather goods. Ready-to-wear has taken a backseat, and according to this report the category is starting to lose money.
Analysts wrote it to warn brands that their clothing collections are taking too much of the spotlight. The report revealed that although apparel is barely profitable, for most historical European fashion houses it remains a major drain on funds and resources.
The report’s authors say that often the most profitable aspects of the brand, like diffusion lines and beauty, are licensed out. For brands, this means a major cut in profits when fashion houses could retain loses by having full ownership. They called ready-to-wear a “niche,” saying that luxury brands are undermined by fast fashion’s ability to sell trendy clothes at rock-bottom prices.
The analysts noted that ready-to-wear collections are extremely expensive to creatively develop, show, and manufacture. They recommended that fashion houses put emphasis on more difficult to emulate items like accessories, and focus fewer resources on RTW.
While the report doesn’t recommend that brands stop producing clothing all together, it is indicative of a shrinking market for ready-to-wear and future changes in the structure of the industry.END
prev link: https://www.crfashionbook.com/fashion/a9956353/can-ready-to-wear-become-a-thing-of-the-past/
createdAt:Wed, 31 May 2017 17:17:03 +0000