This refers to the stitched shoe industry, I am currently in contact with many new brands, as well as many boutiques, and then found some commonalities.
Brand
The most obvious trend here is that the brand is actually a merchant. This concept is the same as many companies in the fabric field, such as Dormeuil and Scabal. They are actually merchants because their products are made by some factories in Yorkshire or Biella Italy. The same factory produces for many others as well. I used to think that their factories were all their own.
Back to dress shoes, brands such as J. Fitzpatrick, Sons of Henrey and Septieme Largeur are using a same Spanish factory to produce shoes. What do these brands do? Design and marketing.
Except for these few that were originally debuting as Ready To Wear brand, bespoke shoemakers such as Norman Vilalta and Ramon Cuberta expanded to Ready to Wear shoes also by this method.
Many designer brands shoes are made in Italy which is also this business model. It’s just that their design does not take the classic route, and at the same time the premium is skyrocketed.
Not investing in factories, for a new enterprise, is a great reduction in financial pressure. And at the moment there is enough capacity in Spain and Italy, so this model may be the norm in the future.
So design and marketing are extremely important for brands. Of course, this is not to say that production and quality control are not important, Justin Fitzpatrick and Tom Brone have to go to the factory frequently to control quality.
Design
There are two types of people, one is designer. For example, Justin, who studied under Stefano Bemer, should logically open his own Bespoke store, but he chose to start a Ready To Wear brand. This kind of person’s design will naturally have its own expression. Because in addition to the skills, Bespoke is mainly an artist, and everyone wants to have their own unique style.
The second category is veteran in the industry, such as Tom Brone, who has been in the dress shoe industry for a long time, and he has enough understanding of consumers’ preferences, so the products developed are more to the taste of the public. Septieme Largeur is also this type.
Sales
In this regard, they are not quite the same as the Merchant of fabrics. Because the fabric Merchant will do wholesale, and then establish channels to sell to all over the world and various tailoring houses. These dress shoe brands, on the one hand, they wholesale and sell in their own channels, on the other hand, they also wholesale to other boutiques. Perhaps in the latter way, they act as an intermediary, adding markup from the price out of factory. This is actually an expression of light assets. Because if they purchase all stocks then wholesale to the boutique, they need to prepare much more finance.
How This Happens?
I think the most important thing is industry resources. Whether the factory is willing to do it for you, or is willing to do it for you, but the cost is high, it is difficult for the brand to survive. Are tanneries cooperative? Is high-quality leather available, and what is the price of purchase are all related to the success.
Boutique
The boutique model is much simpler, which is very common Group Made To Order. That is, the store gives a style, then asks if anyone is interested, and if they are interested, choose the size and pay. If the required quantity arrives, it is confirmed. If the stated quantity is not reached, a refund is made.
This model is also used by the brand itself. Because the price is paid in advance, the price will be about 10-15% discounted. Both the brand side and consumers have gained certain benefits. Of course, the biggest problem with this model is the waiting time. Generally, 3 months is minimum.
Summary
Today’s talk is all about model innovation, and I think it also gives some inspiration to people in China who are interested in participating in classic dress shoe industry, especially who don’t have their own factories.