Well, J.Crew seems to be embracing social media. In addition to their Facebook, YouTube and Tumblr blog, they are reaching out through other mediums. I have noticed some fashion bloggers getting c/o items from J.Crew. That is in addition to some blog giveaways from J.Crew. Yeah, that is right, from J.Crew. And of course, there is the sponsorship in GOOP.com that was discussed in an earlier post today (click here).J.Crew's CEO: 'There Are Too Many Retailers'
By Katie Little
September 13, 2012
To compete in an industry that J.Crew CEO Millard "Mickey" Drexler said already contains many brands and designers, retailers must guard against overexpansion and growing merely for growth's sake.
“There are too many retailers," Drexler told CNBC's "Squawk on the Street." "There are too many brands. There are too many designers. There are too many discount stores, and the predator online companies are selling discount like crazy.”
Although consumers continue to flock to brands in droves, driving sales at companies such as TJX and Nordstrom, people will stop paying as much money as they are for logos at some point, Drexler said.
“The world today — the standards have been lowered and more people today are wearing more products from every designer, and the dilution of designer names is extraordinarily fast because they’re selling to all discount stores with products and with deals,” Drexler said.
Drexler's comments come two weeks after J.Crew, which went private last year, reported a 21-percent rise in its second-quarter revenue. Still, he is not ensuring that double-digit growth will continue moving forward.
“We never planned to keep double-digit growth up," he said. "We never plan it because then you buy too much inventory, and then you have to take markdowns.” Drexler listed the company's Italian-made shoes, silk shirts and men's Ludlow suits as a few of the items that have been fueling sales.
The company's price range also works well for them, but beating competitors on price is not Drexler's main aim. "I never wanted to compete on price in my history because on price, you don't always win," he said.
Drexler also cautioned retailers against turning to social media as a way to grow their apparel and accessories businesses long term. “I’ve yet to see a correlation in my industry between great social media and great numbers," he said. "You’ve got to be there, but on the other hand, it’s a very hyped-up thing right now.”
As for too many brands, I see what he is saying. It feels like every celebrity has a fashion label they want to promote.
What are your thoughts on the article? Any points you adamantly agree or disagree with? If you could make some suggestions to J.Crew, what would they be?
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ReplyDeleteLemonFraternite mentioned the idea that J. Crew could really have 3 levels of brands - Factory, regular Crew, and Collection. Despite Mickey saying there are too many retailers, I really agree that J. Crew should separate Collection. As several JCAs have commented, there seem to be more and more very pricey collection items in the rollouts and while I think many of them are beautiful I will never be able to afford them.
ReplyDeleteI think by separating the collection it defeats the purpose of Jcrew styling. Jcrew is styled with high and low cost items. This is what makes Jcrew great. The collection is pricey but it is still affordable compared to other special pieces from designers.
DeleteWhether or not they formally separate the way that ON/Gap/BR has done, JC is clearly moving aggressively towards a much more tiered clothing collection. They're revamping Factory, with a bigger and 24/7 online presence, while simultaneously increasing the price and number of Collection items. So while we probably won't see them literally separate like the Gap brands have done, it's a mere technicality at this point. My biggest beef with this approach is just that the middle range, the regular JC clothes, seem to be getting the least amount of care and attention, which is the one I most prefer to shop. As for styling, they never style regular or Collection items with Factory items and I would be surprised if they ever did, so I don't think that's the hold up. I'm also curious as to how they understand Madewell to fit into their current and longterm plans--it's always been interesting to me how they don't formally associate with them at all in the public eye, but we know they are just another division of the JC parent company.
DeleteSuper curious Alexis, which blogs have you seen with c/o J.Crew items or hosting J.Crew-sponsored giveaways? I always look for them and have yet to see a "c/o" beside the J.Crew name.
ReplyDeleteI know Pink Peonies gave away an Edie bag a while ago, but it turns out that was sponsored by another blogger (i.e. she bought the bag from J.Crew and gave it away on PP's blog).
I have never seen any giveaways or c/o of JC items on ANY blogger either.
ReplyDeleteJust to clarify, ALL giveaways I had on my blog came out of my own pocket, not J. Crew's.
Maybe there is no correlation between their blog and sales numbers, since they use it mainly as another advertising medium. The fact is, bloggers who do blog about their products will drive some of their numbers. I am not saying all of them, but the savvy shopper these days doesn't just buy blindly without checking out a review or two online. Since JC is not a store available in each mall across the US, Canada or the world, relying on such reviews is important.
I want to say I remember Atlantic-Pacific featuring items c/o J Crew, but I'm not 100% certain.
ReplyDeleteCup of Jo had a Jcrew sponsored jewelry giveaway post over the summer
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ReplyDeleteI recently saw c/o for the Café Capri in Pop Art Polka Dot on College Prep: New Job post
There was a giveaway from J.Crew on A Cup of Jo: Thursday Giveaway
I believe both blogs are run by individuals, not companies or celebrity endorsed. I remember them because, well, I am not going to lie, I was a bit jealous. I can't even get J.Crew to send me press releases!
A quick google search found these two:
DeleteThe Queen City Style:
J. Crew Love: Nautical Stripe Shorts and Embroidered Jacket
Left Coast Fashion: To Thyself Be True
Whatever. Sound like he is just making excuses.
ReplyDeleteI saw this on TV (thank you to whomever it was who posted about it!). For me, the most insightful thing he said was that he tries to always put out something new but also something old and comfortable. Explains why they try some of the wacky stuff but also keep churning out the basics too. Seems smart to me. I think where they're getting into trouble is going too heavy on the high end Collection pieces. Too much of that and they seem to have an identity crisis.
ReplyDeleteStrange that the no. 1 JCrew fan blog doesn't get that sort of attn w press releases and such.
ReplyDeleteMaybe the community here seems more true to themselves where negative opinions are expressed and they (JCrew) doesn't want to tamper with honest feedback by having you (Alexis) endorse products as giveaways.
That's a positive, right!?
I like that you are thinking positively! :)
DeleteAnd in the same vein--they don't want to add reviews to their website!
Delete