Thursday, August 21, 2008

"How J.Crew Does Luxe For Less" Video

There is a great video over at Fortune, that has Frank Muytjens, (who is the Senior Design Director at J.Crew,) discussing the new $640 suit that was mentioned in the "Anatomy of a J.Crew Suit" post. It discusses a bit more the details that make the suit part of their luxury collection for men. Click here to watch the video.

How J. Crew does luxe for less

Video Clip: 3 minutes 18 seconds
A look inside the retailer's new 640 dollar suit reveals the kind of details usually found only on high-end haberdashery.

What do you think of the "How J. Crew does luxe for less" video? Do you think it provides more insight about J.Crew's new suit? Would you purchase the new $640 suit now?

34 comments:

  1. Have we ever been told the actual name of the *renowned Italian Mill*? I can't remember...I just find it so hard to believe all the hype...I think these suits are made in the same factory in ASIA that all the other J.Crew clothes are made in.

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  2. According to the book that was discussed earlier, How Luxury Lost Its Luster, that could indeed be the case. Man, that was one eye-opening book! It made me not want to pay for any full-price fashion, ever, once you find out that their profit margins are 15 - 18 times what it takes to make the item!

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  3. melanie: in the video interview with Charlie Rose, Mickey Drexler actually said that J.Crew *sources* its work in Asia, not China...YET anyways, but they are moving that way. They go where the *needle* is best...J.Crew clothes are made in an undisclosed place in Asia, not China, and definitely not Italy.

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  4. melanie: the unbelievable profit margin is one of the reasons I choose to shop sale...I know many people look *down* upon sale shoppers, but apparently they don't realize how much they are overpaying when buying full price. The companies mark up merchandise knowing full well that most of it will only sell once it IS on sale...I believe the sale price is much closer to what the garment SHOULD actually cost without the over inflated mark up.

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  5. The Sale price would not be on sale if JC could not make a profit.

    JC does manufacture in China, their yoga line is made there, as well as their hoodies.

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  6. anon @11:25: Then I guess they have started *sourcing* in China since that interview with Charlie Rose...Mickey was pretty adament that they weren't in China yet, but were somewhere in Asia. It would make sense for them TO be in China, though...everyone else is.

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  7. That interview was at the end of April 2008. :)

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  8. melanie, I got that book out of the library this week and it is fascinating! Definitely makes you want to hold out for sales!

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  9. Yes, JCrew does make clothes in China. My mother works at a Far Trade Store and really lookes down upon many companies...I get an ear full all the time...and the lists and the info. she has on companies...and their practices....mind blowing....no wonder we have defective merchandise...the poor workers making our clothes...

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  10. ffm: hmm pretty close in timing, the yoga jacket I am wearing today (made in China) was purchased in May 2008.

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  11. The Asia verses China comparison is funny, China is part of Asia. Maybe J Crew is not in China because labor in China tends costs more than in most other parts of Asia such as Vietnam, Cambodia and India. I saw a show on TV the other night (in the UK) about clothes being made by children in India and there were 3 kids in a house, all working on garments from different companies. It lead me to believe that almost all clothes are made in the same place and the companies just charge whatever they can get away with.

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  12. I meant FAIR TRADE

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  13. I have a friend from India. Her aunt works (pretty high up) in the clothing industry. She says garments are made and put in three categories: $1, $3, $4 for what they cost to make. The cheapest garments stay in India, the mid priced are for mid priced clothing companies, and the highest for the "designers". I don't know if this is true but this is what she told me and she had no reason to lie....

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  14. Even though there is a high mark up I don't mind paying full price for items I really want...I wouldn't want them to sell out. But I go for quality not nec. quantity...I don't need three or four of the same top in different colors unless it is the occasional: I love this top! You know, you can only wear so many clothes....I don't need a closet full of stuff with the tags still on!

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  15. Mickey seemed really uncomfortable discussing the whole Asia and China *sourcing* issue...almost like he would have preferred to avoid the question altogether. Perhaps they were in the process of moving into China at the time of the interview, OR Mickey prefers to just SAY the clothing is sourced in Asia, since like Anon @11:44 said...China is part of Asia. Maybe he doesn't want J.Crew to be associated with being *made in China*, even though it actually is?

    anon @11:44: Very Interesting! So that would mean that a $98 blouse actually cost $3 to make?

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  16. Here's something interesting I read in the Sept Catalog, further proof of their attempt to justify higher price points:

    "INSIDE SECRET: We use only the highest-quality fabrics for our women's coat collection - which is why we insist on the finest from Italy for our Plaza Coat. Soft, lofty and tailored to fit like a dream, it's designed to make you look and feel special whenever you put it on. This is one investment we know you'll enjoy - and look forward to wearing - every day"

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  17. weab: I wonder how much it costs to transport that fabric from Italy to China, I mean *Asia*? Notice they never claim that the garments are *made in Italy*...just that the fabric comes from there.

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  18. ffm: so true! And also notice that they're trying to justify the price by calling it an "investment". I forgot to mention it's $325-$355. (btw, this is the same price that it was last year. maybe we've all just become more price sensitive in this economy???)

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  19. Even 'Made in Italy' or 'Made in France' can be misleading. Many of the Designer goods-very expensive goods, are made in those countries by people from Aisan countries. The Designer company moves them from Asia to a factory in Italy or France, and this gets them the 'Made in Italy/France' label.

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  20. I think I have that book somewhere, but don't know where. I started reading in a long time ago, but we were moving at the time and I totally lost track of it.

    I know that clothes (and other things) are marked up tremendously, but there are other parts of the picture that I think not everyone is considering. First, you have to pay the designer to design the stuff. Often you'll pay more for a better designer, but not always. Then you have to pay for fabric, manufacturing, shipping, and all of that. Once the item gets back into the USA, you have to pay rent for the mall stores, upkeep, etc. More $$ for shopping bags and boxes, tissue paper. And of course, you have to pay the people who work in the store.

    No judgements, but who here would pay more for things made in the USA? I think I would, if I liked the items.

    Totally and completely off topic: did the person who bought the Citrus Paisley jacket ever get it? Is it pretty? How does it fit? Thanks!

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  21. Were the coats that much last year? I know my Boulevard and Lady Coat were $298. My Gramercy was more (around $350).

    I was really surprised the Lady Coats went up $30. I love them but thought they were too expensive to begin with.

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  22. kitsmommy: I have a Sept. 2007 catalog that I'm looking at and the Plaza coat was the same as it is now. I was also surprised. It seems like they increased prices on everything else (cashmere, tees, shoes, etc.) that I was shocked this had remained the same...Interesting isn't it...

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  23. I also think it's so interesting that J.Crew seems to be doing everything they can to get publicity out about the quality and construction of their merchandise (more than ever it seems). Again, more attempts to justify ever-increasing price points. ( I still don't really buy it though.)

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  24. But the quality is not always there, if one color is made in China, and the Peacock is made in Macru. That could be the one of reasons (other than dye lot) why each color fits differently even though it is the same size.

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  25. it would have made more sense if they showed how it looks on a person rather than on a mannequin. but yeah it is a bit sketchy how they say "renowned Italian Mill"

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  26. Melanie: I can't believe the mark up is that high- 15-18%- wow! I wonder if that has something to do with marketing. The designers (and the like) spend millions on ads each year- maybe that is where some of the money goes. :)

    Anon at 11:47 AM: I find those categories of garments interesting. I wonder if J.Crew really is in the $3 category.

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  27. There are so many factors to consider in the cost of our beloved J.Crew. The monthly catalog is expensive and is paid for by clothing sales, getting clothes to the market costs more; just look at you expense in filling up your car today compared to last year.

    We all want the best and yet we complain about paying full pop for it.

    Do I want to pay for clothing, no, never in fact, but I know I have to sometimes and I have to remind myself that J.Crew is a business and if they fail to make money I'm stuck with other options which I don't like.

    The suit video was very cool. I wish I could get one of these suits. Looks great for the price.

    Alexis I am truly thankful for this great blog and the time and effort put in my you and all those who post. It's one of the most visited sites on my browser.

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  29. Alexis and all: To be fair, the 18 times the manufacturing price quote wasn't for J.Crew necessarily, it was for Louis Vuitton (which, according to the book, has the highest markup of all luxury brands). I bet markup numbers for J.Crew are not that high. It's still a staggering number!! The book was so interesting, I am so glad that someone recommended it on this blog.

    And I agree with a lot of people who say that if they truly like something, they will pay full price for it. :) If you wear it a lot and love it, then it's worth it to pay the full price, in my opinion.

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  30. Apparently a lot of luxury companies who produce goods in China sew the "Made in China" tag into a seam so it can't be seen or it's on outer packaging that's removed once it reaches it's destination (I'm still reading "How Luxury Lost it's Luster" - it's really eye-opening!)

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  31. It is understandable that J.Crew has to mark up its merchandise in order to make a profit...all companies do...its the nature of business. It is just when the mark up is *extreme* that I find it unfair and unwarranted. I have also just recently purchased several items at full price (well minus educator discount), but they are pieces that I LOVE, that rarely go on sale, and that I know I will wear alot, so they are worth it. I do have to say though that I really hate seeing a blouse that should be $25 priced at $98, especially if it only cost $3 to make. The frustrating part is that J.Crew raises prices because consumers are willing to pay more, and not necessarily because the garment's quality has gotten better.

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  32. FFM: I totally agree with you that they could cut some costs by not sending out duplicate catalogs.

    What I also find so interesting is that some of you are receiving multiple copies of the catalog and some of us (like me) have yet to receive any (even though I have registered many times). :( I have to pick them up at stores.

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  33. Alexis, I have a JCrew Card, receive multiple e-mails, place lots of orders on-line but I can't seem to get a catalog mailed to me. I guess it's reason number 375 why I probably should take a break from JCrew for a while.

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  34. Anonymous at 11:00 PM: I don't know if we will ever understand how JCrew determines who receives a catalog and who doesn't. ;)

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