SeriesPart 2: The fashion industry is emerging from its cocoon post-recession, a changed sector where consumers are more cautious, manufacturers are on their toes and designers are struggling to stay afloat doing business as usual. In this five-part series, we take a hard look at the fashion world, speaking with industry leaders, luminaries and experts. This week we ask: Has the recession turned us into cheapskates so we can feel like fulfilled consumers?

Since 2007 they’ve popped up like dandelions: The discount clothing venues we love for all the hot bang we get for our hard-earned buck.

Gilt, My Habit, FashionStake, eBay Fashion, and now even discount eco-commerce sites like the recent launch of JP Selects and LovingEco tantalize us with a designer discount warehouse vibe that appeals to our need to shop. Recession? Heck no, we’re all the same when it comes to discounts whether wealthy or middle class, hoarders or sample salers who need to get more for less. If you think this concept is something new, just look back to post World War 2 consumer habits and you’ll see a direct link to the burgeoning of low-profit-margin strategies designed to attract price-conscious consumers.

The only thing that’s changed is the technology and marketing to hungry consumers and struggling designers.

NOW Showcase, 2011

Joslin Van Arsdale, owner of San Francisco’s Ecocitizen boutique, says sites like Gilt affect eco-commerce because they encourage the quick consumption of cheap, mass produced and disposable goods, and therefore skew the consumer’s perception of value.

“In the past a sample sale was last seasons leftovers. Today, designers who participate in Gilt sales are selling are specifically commissioned by the site and its buyers. Most of the items offered at flash sale sites, are past season designs, or popular designs reinterpreted into cheaper versions of  the original which enable companies like Gilt to maintain healthy margins while also offering  60-70% off.  This is similar to how Target and H&M do their designer collections, same name and design, just cheaper labor and lower quality fabrics,” says Arsdale.

If we think about low-pricing power in the classical sense of the term, we might look at the Wal-Mart volume model, with the idea that the more powerful you are (thousands of locations), the more you can drive your cost down. While we can understand that lower prices drives more sales in the short term, what about the integrity of the brand being sold? Do thoughtful designers really want to brand themselves as deep discounters offering bottom-barrel markdowns?

Designer Eliza Starbuck says it’s become a fear-based business for sustainable designers.

“It’s hard enough to be eco and fashion, an oxymoron in itself, but then having to go against the sustainable model and sell a whole lot of stuff seems pretty counter-intuitive,” says Starbuck.

Van Arsdale says sites like these are training shoppers to expect sales all the time and while in the short term this business model can be a great marketing opportunity for designers, in the long term, it erodes a brand’s perceived value.

“Judging from the success and proliferation of flash sites, it seems that the consumer is unaware that there is a difference in product and quality and mostly doesn’t care,” she says. “Shopping is evolving to a scale of extremes between the very cheap and the very expensive, with nothing in between, similar to what is happening to our middle class.”

But with a current valuation of some $400 million, Gilt Groupe appears to have more staying power than most fashion trends struggling to stay afloat in a traditional way. New York Magazine likens it to a safe haven for designers.

“Last year, as incomes tightened and the fashion industry was left with ruinous amounts of inventory, the company’s business model proved to be a counter-cyclical savior, sucking up goods that otherwise would have moldered,” says the magazine’s writer Andrew Rice, adding that some designers have found “Gilt’s model lucrative enough that they’ve decided to do away with their brick-and-mortar sample sales; others are now making clothes specifically for the site.”

As a result, more and more shops are turning to online sales only and closing brick and mortar venues.

Closed boutique on Newbury Street, Boston

We asked an eBay Fashion spokesperson, who insisted on anonymity, about traffic patterns since the company changed its selling model from what was already in the waste stream to recent high-profile collaborations with Alexander Wang and the CFDA. While they weren’t willing to release statistics at this time, they did respond with this statement:

“Fashion has a new home on eBay at fashion.ebay.com – a dedicated destination that delivers an enhanced shopping experience with new features and sales channels like Fashion Vault that make it easier than ever to explore, find and buy items based on favorite styles, brands and popular trends.”

No longer a hot spot solely for automotive enthusiasts – who in 2005 were eBay’s biggest audience –  eBay has evolved into a clothing and accessory mecca for all financial brackets. And sites like Gilt and eBay Fashion aren’t alone when it comes to selling luxe labels for less.

Trista Dedmon, consignment manager of Brooklyn’s best secret Eva Gentry, sells higher end designers that include Zero + Maria Cornejo, Helmut Lang, Alexander Wang, Marc Jacobs, Chloe, and Marni.

Dedmon says business has picked up with both customers and consigners each season since it opened about five years ago.

“There are definitely a wide variety of shoppers we cater to from the college students looking for affordable Alexander Wang to the established professional who wants to save on a mint condition Balenciaga piece,” she says.

Brooklyn’s Eva Gentry

When asked why, Dedmon says, “It is more than likely due to the current economic climate and everyone reassessing their values. If we become more conscious of our spending habits, this doesn’t necessarily mean our taste level changes. Customers still want designer level garments, but like to stay within their new found budget, which is where a store like ours comes in.”

As recently as 2008, stores like Eva Gentry were gaining popularity quickly, not only college students but with wealthy shoppers accustomed to pricey labels. USA Today writer Laura Petrecca wrote: “There have been many euphemistic labels applied to secondhand goods, including ‘gently used,’ ‘pre-owned’ and ‘like new.’ But in the current economy, they have a new and candid label: ‘hot sellers.’

In the same article, Petrecca notes that three-fourths of resale stores polled said they had higher sales in September and October than in the previous year, and according to the National Association of Resale & Thrift Shops, “The average sales increase was about 35%.”

So what of the plight of the sustainable boutique owner, the entrepreneur supporting conscious consumerism?

Mission Savvy’s brick and mortar store

Vegan boutique owner, Jennifer Miller, has her hands full with her shop, Mission Savvy. Miller has had to forge her way forward through the muck and mire of retail since she opened two years ago in the midst of the recession.

“People want to get more, pay less. Despite its goodwill, the price point on ethical fashion for the average consumer is a big turn off – and I’m in the market to turn people on. Better to purchase something from my store, support the ethical fashion industry, feel good about it with no guilt of over spending and therefore continue to return than not shop at my store at all,” Miller says.

She says her nontraditional approach to operating a boutique has her stocking ethical products but selling at a less than average mark up which is challenging – but it keeps her customers happy and coming back.

“We’re just not there yet as an economy and in commitment. Especially if you are far removed from the fashion industry and the appreciation of the art of it, so that leaves a lot of people spending lots of money on clothes with absolutely no purpose other than to buy something new that looks awesome,” says Miller.

“And as much as people do understand the concept of responsible consumerism, it still comes down to what money can buy and for a lot of us money does buy happiness. Spending too much money on very little is not as appealing as spending a little on a lot.”

The post The Post-Recession Fashion Industry: Discounted Sells appeared first on EcoSalon.

Your fashion choices reveal your political views, whether you want them to or not.

There was a time when tags like “Made in the U.S.A.” meant something. During war times, when buying cotton was limited by choice to only the bare necessities (unless you wanted to be considered unpatriotic by your neighbors), we could directly trace how our consumption habits related to our society’s values. Since then, flag waving morals within fashion have more or less disappeared along with the great American garment factories. With the internet, the world is a much smaller place and sadly, our sense of social values and our concern for our neighbors seems to have shrunk, as well.

The “Made in ____” label actually means a lot on the front of world politics. It relates to tariffs and trade agreements, which government worker rights and standards you support, and the bottom line: the price. The reality is that we haven’t been paying the real price of goods for decades. Whether it’s our own government that has been manipulating the price of our products through trade agreements and tariffs, or the Chinese government subsidizing their labor costs to dominate the world’s production market, it’s all coming back to us. We’re starting to pay for it: prices are going up, jobs have been lost, the environment is at risk, and fashion is once again on the center stage of politics simply by what we choose or don’t choose to wear and how we acquire goods.

Flash Sales

As of late, it seems there are very few things besides sales that get consumers excited to buy more clothes in the middle of a recession. For fashion, an economic recession translates to a mad rash of online flash sales.

According to industry reports, in 2010, on average, flash sale sites reported a 300% increase in sales even though the economy had not nearly recovered. The frenzy these exclusive, one day only, sample sales stir up in consumers (who are fearful of missing out on getting the last designer bag at sample prices), runs parallel to the fears the economy stirs up in times when everyone is fearful of losing their job. The general philosophy behind these shopping patterns is to get as much as you can while the getting is good.

While flash sales encourage cut-throat consumer shopping habits, the fashion industry’s ever cheerful motto continues to be “It’s just fashion, no one’s dying over it,” but the truth is that people are dying over it.

Last December, 25 workers were killed and another 100 were injured in a factory fire in Bangladesh, and that is a highly visible case where the workers died directly because of poor safety standards in the factories. Most factory workers end up severely crippled with chronic health disorders related to a life of hard labor working with toxic materials. In China, by law, the media is forbidden to report on human rights issues. However, recently the Chinese government has made great efforts to clean up its act and provide better working conditions in factories for their people. If you consider factory labor camps where workers are required to take two hour naps on cots underneath their machines mid-day so that they can last the whole 18 hour shift to be humane working conditions, you’d be wrong, but you’d also be part of the status quo. This might be the reason for the other hot trend in fashion sales this year: fashion philanthropy.

Fashion Philanthropy

Clearly, people are concerned about the human condition and want to put their dollars toward something meaningful when they buy their clothes. So, for just about every cause, there is a fashion company doing double-duty selling products to raise money and awareness.

Designers, from Vivien Westwood and Stella McCartney, to companies like the Gap in collaboration with Bono’s Red Campaign, have made huge waves in social awareness by fundraising and sales through profit sharing and partnering with philanthropic causes.

In 1983, Katherine Hamnett launched her line of political fashion tees. While Hammett’s flavor of fashion politics is now outdated, her company was one of the first to market giving a percentage of the profits away to charity, and for this reason she’s considered a pioneer. Luckily, savvy social media experts, marketing campaigns, and branding have allowed fashion philanthropists to become subtle yet clearly recognizable in their charitable product placement. Today, the hint of a rubber bracelet hanging just below your shirt cuff is enough to let people know where you stand.

These affordable tokens serve as status symbols among the high ticket donating entrepreneurs and socialites alike.

The Political Implications of Stepping Out

Just stepping out in a cheerful frock from H&M seems to have political implications these days. We used to be able to buy clothes without a care in the world about who made them, what they were made of, and how the world might be affected. Today, what you buy says quite a lot about who you are and what you stand for. Want to really know where a fashionista stands on political and social issues? Just look at her feet. Shoes are one of the most coveted and telling items in a woman’s closet. You can really tell a girl’s views, values, and how far her morals go just by looking at her footwear.

Take, for instance, these shoe made by Osborn, a company that works with a fair-trade organization in Guatemala to employ traditional craftsmen who are paid a fair wage for their work. At just a glance, these shoes belie a wearer who has a creative lifestyle, who generally stays current with what’s happening in the world of art and design, but who has some rebellious, hippie-heritage deep down leading her to choose to support skilled craftsmen and favor ethnic chic patterns in her fashion statements.

Then there’s the vintage shoe. Their owner is practical, well educated, frugal, slightly sentimental, likes fashion but does not follow any known trends, and probably could be pegged as someone who reads a lot of books. Her old school, working-class-Americana political views are reflected in her subtle lifestyle choices which she carefully cultivates at great pains. When asked about politics, she has well-informed opinions that she exercises at every election when she faithfully votes at the polls.

Next, take a Tom’s Shoe. Similar to the Fair-Trade Osborn model, Tom’s is far more successful in sales and recognizable on the street. This is the Prius of shoes, and like the Prius, it gets twice as many miles to the gallon. For every shoe you buy, Tom’s gives a pair of shoes to a barefooted child in a third world country. Anyone found wearing this shoe chose to support Tom’s cause just by buying these slightly homely slippers. The owner of this shoe proudly reads The New Yorker, is educated, social, political, cares about others and also, about what others think. Even if her interest in philanthropy is ever so slightly pretentious, she is making a conscious choice to do good through her fashion choices, and she feels that’s better than most can say.

Next, there’s the Ferragamo shoe. This is a shoe that is hand crafted by highly skilled craftsmen who have refined fit and quality to an art form over the past 100 years. These heritage shoes are built to last. Women who have known the Ferragamo shoe covet them as heirlooms from their mothers and grandmothers. Even to the average eye, these shoes equate class distinction and old money. To a more critical eye the wearer of this shoe has discerning taste in quality, comfort, and luxury, and is educated but conservative in her world views. Politics? She’d rather not say; she generally keeps her opinions on such things to herself.

Several steps down in class, but not in price is the Louboutin shoe. The higher the stiletto, the higher maintenance the girl. Her greatest aspiration in life appears to become a life size Barbie doll in a Barbie McMansion married to Ken. This kid is a Freudian field day if you can crack the lacquer. She likes flashy cars, big cigars and diamond rings. Politics never come into conversation with this one, and she only attends high-brow charity events as arm candy or with her best friend (the other hot girl). Just don’t take her for stupid; she knows exactly what she’s doing, what she wants, and nothing is going to get in her way.

There are millions of other shoes out there, all of which have something different to say about their wearer, but on the political front of fashion these are just some prime examples of what your shoe choices alone might say about you. What does the rest of your wardrobe have to say? What if every new item you bought was seen as a vote for the ethics in which you want the future to follow, if every time you saw a college student ready to go out in a Forever 21 frock you were reminded that she supports work camp labor? And while choosing to wear a skimpier swimsuit at the swim club could cause a scandal in uptight social circles, in the material world, it certainly could help reduce fabric consumption.

Even if we never return to the glory days of WWII rationing, as fashion continues to get dragged through the trenches for wreaking havoc on delicate planetary ecosystems, one can only hope our wardrobe choices become a lot more thoughtful and truthful, to protect them.

Image: blog.compete.com, www.sometimefriend.com, www.gliving.com, www.thriftaholic.blogspot.com

Editor’s note: Louise Lagosi is not the author’s real name. Catch our fashion industry insider’s insights and revelations every Friday at EcoSalon.

The post From Flash Sales to Philanthropy, It’s the Politics of Fashion appeared first on EcoSalon.