A poor retail economy is a death knell for fashion in most markets. The formula is fairly simple; little credit and little cash = fewer sales. Some retail fashion companies, however, operate in a rarefied atmosphere and can tap retail sales in almost any market. These companies work to provide a comfortable, trendy product to a consumer base that appears to have access to money, namely the junior-early 20’s women’s market. Finding a company that has put together a full spectrum of younger women’s fashion is the key. Find this key and profit will follow.
Panglobal Brands Inc., a full range marketer of women’s apparel, works to serve younger women with moderately priced, cutting-edge fashion. Generally, the company serves the late teen and early 20’s age groups. The company also offers a mid-range price point for mid-market women interested in comfortable and somewhat fashion-oriented clothing.
The company’s leading contributor to revenue for the first quarter 2008 was its SoSik line of knits, junior denims, dresses, sportswear and t-shirts. This division has stepped up nicely in the first half of the year, and found a following with the customers of Charlotte Russe and Forever 21. Stepping up half an age bracket to late teens and early 20s shoppers, the company’s recent acquisition of Scrapbook has added significant revenue to the company’s balance sheet. This line is a little more contemporary, focusing on prints and knits. Scrapbook is directed more toward the boutique and department store shopper interested in shops such as Nordstrom’s. The company also works with slightly older women who are interested in a more vintage look. Tea and Honey lines are aimed at the slightly older sports-minded consumer, while its Italian casual dress lines serve the same consumer where casual dress fashions are of interest.
As most retailers and clothing manufacturers see increased pressures from slower than expected spending, one might think that retail fashion is out of vogue as an investment opportunity. Generally, they would be correct. Retail fashion sales have been seeing less then high-flying results. Panglobal Brands, however, appears to have found its niche within a struggling market. The age groups targeted are still largely under parental control and have a certain access to capital. Advantage by the company is also found in its targeted fashion lines and price points. It has targeted price points that are within reach of the struggling consumer and is seeing those price points hold for record revenue growth month-over-month. Panglobal Brands has hitched its fortunes to a pricing and merchandise mix that is geared for today’s economic realities and found gold in doing so.
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