A FOR COMPANIES

Let’s get real – the folks over at Business of Fashion are reporting a new trend. Imagine, for a moment, that expensive shoes are now selling faster than handbags in the same category. The article, based on numbers crunched by TheRealReal, reports that “shoes priced over $500 are selling 11% faster than comparable handbags.”

But wait a minute. Before you run out to your fave shoe store for those Chanel “investment” sneakers, we want you to consider a few salient points:

• The numbers are based solely on the TheRealReal findings, and there is a plethora of sites selling high-end handbags. There are just a few that resell shoes.
• The selection is rather limited. We looked at the site and found they have a smaller number of shoes; in most cases, just one size per style.
• It’s hard to compare shoes with handbags. Shoes come in sizes; handbags do not.
• Discounts were not considered in this study, and the fee the TheRealReal charges was not mentioned.
• The fact is, high-end shoes just sell faster – but that doesn’t mean they are more profitable should you want to resell them

In the end, we think this information is helpful to know high-end shoes sell faster, but we also think the information could be misunderstood by a lot of consumers. So sorry, it is unlikely that you can purchase a pair of shoes, wear them a couple times, and resell them for a profit.

Think about the myriad TV shows and movies that have been filmed in New York City over the years. There were 242 movies shot in NYC last year alone, plus 44 TV shows filmed for the 2014-15 season.

Now, thanks to a new city council bill that requires reports on film shoots, filmers may be more reluctant to do their business in NYC. Commissioner Cynthia Lopez says she’s worried the legislation will make people think “filming isn’t welcome in New York” reports NY Daily News, and she’s not alone in her worries.

From a financial standpoint, the filming industry generates big bucks for NYC. We’re talking billions of dollars, some of which may be lost to other cities if it becomes more difficult to film here.

Read more about concerns voiced by NY residents, film makers and council members here.

By Wendy Rose Gould

Image credit: Flickr: fliegender

What’s a Mystery Box?

Not to be confused with beauty boxes, which send you sample or medium-sized products via a monthly subscription, mystery boxes are exactly what they sound like: “surprise me” packages.

Essentially, you pay $X for a “mystery box” or “mystery bag” and the company sends you one or more items valued at more than what you paid. The items included are typically excess inventory that the company wants to move off their virtual shelves, creating a sort of win-win for both parties. In short: the buyer gets a good deal and the company makes way for new stock.

Companies That Sell Them

For example, ModCloth recently offered up a “mystery shoe” and “mystery garment” option on their website for $15 each. Instead of adding a specific item to your cart, you added the “mystery item,” specified your size and headed to check out. A week or so later, buyers got a package at their door with absolutely no idea what was nestled inside. All “mystery bag” buyers know is that the item is worth more than what they paid for (the ModCloth item retailed between $30 and $300, for example), which definitely makes for a fun mail day.

Of course, ModCloth isn’t the only company participating in the mystery bag bonanza. Companies such as Old Navy, Burt’s Bees, Julep Maven, JewelMint and BaubleBar — even sellers on Amazon, eBay and Etsy — have offered their own renditions.

As Fashion’s Night Out (FNO) is finally being put to rest, I’ve taken the time to reflect on Anna Wintour’s power. Specifically, whether or not she’s “too big to fail” and if she’s smart enough to navigate any disaster that may come her way.

It’s no secret to those who know me that I have a love/hate relationship with the snappish lady who put fashion to bed with politics. I don’t recall when I first became aware of her power, but it’s been an enlightening experience to see her move mountains and (probably) buy herself an ambassadorship position in the process. While I am still working on figuring out her superpowers, I am sharing with you the lessons I’ve learned from her FNO fiasco.

Let’s start from the beginning.

Remember 2009? Between the economy crumbling and Bernie Madoff’s Ponzi scheme, the most affluent felt less than optimistic about their futures and, consequently, stopped spending. The fashion industry was caught with their pants down and excess inventory, which lead to panic and erratically slashed prices. Anna Wintour knew how to capitalize on the nervous frenzy.

What you should take from this experience: TIMES OF CRISIS ARE THE BEST TIMES TO CONSOLIDATE POWER. Don’t be afraid of a crisis.  Regardless of the later outcome, you will get people to pay attention to you in that moment.

I don’t want to imply that from the very beginning FNO was just a plot to further Anna Wintour’s career. However, let’s not forget that after coming up with the FNO initiative and being perceived as saving the fashion world from crumbling, Condé Nast gave Anna Wintour another five year contract.

Lesson to be learned: MOST PEOPLE GET PERSONAL GAINS WHILE THEY LOOK LIKE THEY ARE SAVING THE WORLD.

Now, to me the FNO plan looked doomed from the beginning. I am going to quote Gawker here because I couldn’t say it better:

“The plan seems to spend a lot of money getting people in the stores to spend a lot of money. The one thing we haven’t heard anything about is discounts. Just because Catherine Malandrino is converting her Meatpacking showplace into a French cafe for the evening doesn’t mean that suddenly more people will be able to afford one of her cocktail dresses.”

The lesson: WHEN PEOPLE THINK YOU ARE AN EXPERT, THERE IS NO LIMIT TO WHAT YOU CAN SELL, REGARDLESS OF HOW CRAZY IT IS.

After four years — which seemed to drain rather than fill the fashion industry’s coffins — FNO has finally been put to rest. Anna has not personally spoken on th topic yet, and I doubt she will.

When Steven Kolb, chief executive officer of the Council of Fashion Designers of America (CFDA), was asked about the money brought in by FNO, this is what he had to say:

“I don’t think the success of it was measured only by numbers or money, but was really about engagement. Everyone feels we had a great four years.”

What is the lesson to be learned here? REGARDLESS OF HOW BAD A SITUATION IS, IT IS RARELY A 100% FAILURE.  FOCUS ON THE POSITIVE AND MAKE THE WHOLE THING LOOK LIKE A SUCCESS.

By Mirela Gluck