Thursday, October 16, 2008

Interesting Take On J.Crew's Collection Store

"Thanks!" to Lauren (check out her great site: fashionism.org) who shared with us an article from the New York Times (click here) that has an interesting take on J.Crew's new Collection Store.

J.Crew Gets Uppity
By Eric Wilson

October 16, 2008

“THE timing is very ironic, I know,” said Millard S. Drexler, known as Mickey, the chief executive of J. Crew, by way of introduction to the company’s newest store, which opened Friday on Madison Avenue at 79th Street. Mr. Drexler chose just about the worst week in financial memory to introduce a J. Crew collection priced in the stratosphere of Gucci and Prada.


The first thing you see inside the store is a jacket covered in hand-painted French sequins to look like tortoiseshell, with a price of $3,000.


Regardless of the market, J.Crew’s new designer collection — sold here and at jcrew.com — has raised eyebrows among analysts and competitors who wonder why on earth a company known for its preppy basics would put on such airs(1). Mr. Drexler said he believes in the product.


In all of our stores in America, I felt we weren’t highlighting the clothes and accessories in the way I thought they should be(2),” he said. “And I felt that fashion was changing. The prices of designer clothes were getting to a point that was very unfriendly to a lot of people, and the ubiquity of designer clothes was making them less special. Fashion is the opposite of ubiquity.


J.Crew’s proposal is to introduce more special items, but in small batches and in stores that feel more like an apartment. (3) The sign on the brass door at 1035 Madison Avenue is painted in old-fashioned script and is almost unnoticeable. The clothes look more like those at Michael Kors, with featherweight cashmere scarves ($150), a gold beaded dress ($595) and a printed calf-hair jacket for $2,200; but mixed in were J. Crew staples like $85 matchstick cords.


“We don’t want our customers to feel alienated,” said Jenna Lyons Mazeau, the creative director of J.Crew. “We want them to feel comfortable in our stores.” (4)

In the first three days, the store sold three of the $3,000 jackets and a surprising number of silk flower pins priced from $50 to $200, Ms. Lyons Mazeau said, looking at the numbers as a sort of validation. (Of 200 pins ordered for the store, only a dozen or so remained on Wednesday.) (5)

"J.Crew is such a big company, I don’t think people understand that there is a whole group of people here who love design,” she said. “We don’t just bang it out.”
(4)

There are so many points of discussion from this great article! The following comments relate to the passages above.

(1)
I agree that the timing to open the new Collection store may not have been the best. Especially considering J.Crew's recent stock prices, coupled with Goldman analysts downgrading J.Crew to 'sell' (click here). I am curious to see how well it performs during the holidays.

(2) Whether you agree with it or not, Mickey definitely has a vision for the company (and he is moving forward with it). :)

(3) I get the "small batches" concept but then again I don't. ;) I get the concept of creating exclusive and desirable items that a few are willing to pay top dollar for. However, you also don't want to turn down 100's of disappointed customers who were unable to purchase the items. It's tough to find the right balance and I am not sure if J.Crew has found it yet with lots of their exclusive items (e.g. flower pins).

(4) Reading some of the comments in yesterday's post (click here), it is clear that some customers do feel alienated. I wonder how J.Crew will manage those concerns while offering high-end merchandise. Maybe a spin-off store (a la Madewell) is one option? Also, when Jenna said that "people" don't understand, who do you think she was referring to? (I honestly don't know.) ;)

(5) Wow! I hope J.Crew will offer more flower pins for the holidays. :)


What are your thoughts on this article? Disagree or agree with any of the points made in the article or by me?

45 comments:

  1. J Crew can give itself all the airs it wants. It can dress itself up like Prada but it always will be a mall store, nothing else.

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  2. Alexis,

    You made some very good points and I agree with just about everything you said...time will tell if the collection store and pieces do well....but if the quality is not there to back up the high prices....well, I have been happy with a few of the collection pieces I bought last year but not so much the ones this year...

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  3. I think Mickey has a great idea to give the brand some sparkle. The collection is more of design experiement. It gives them a chance to try somethng more special and use high end materials.

    After reading "How Luxury Lost It's Luster" I think the only true luxury brands are Chanel and Hermes.

    J.Crew suits me just fine and I'm pleased that they continue to psuh themselves, rather than just grow boring and the same.

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  4. I like the idea of "collection" at price point a bit higher than regular JC items...more in the $350-650 range. I think selling $2500-3000 sweaters and coats is ridiculous for this brand. I think they are COMPLETELY alienating their core customer base and that's a shame.

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  5. leslie: I totally agree with what you said! I have several collection pieces that I had to wait to purchase on FS because they were so ridiculously priced LAST YEAR, so imagine my surprise when I saw prices even higher (on some really unattractive pieces) THIS YEAR! Yikes!!

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  6. Wonderful to have a vision for the company...I just read a very long (4 page) article about when Mickey took over JCrew a few years ago...

    However, as this article states the timing is terrible...really terrible...great vision...wrong timing...could come back to haunt JCrew....in the short term....long term? we shall see if it even lasts that long....

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  7. I took Jenna's comment about design to mean that even though J. Crew is a large company, they are still interested in the "fashion with a capital F" concept of design and the aesthetics of it, instead of just mass producing typical clothes that they know will sell for the sake of commerce. Although I must say I love their basics, because it is a simple palette on which I can put my own spin via accessories. Anyway, I think it's that classic discussion between "art" and "commerce" Their collection line is more of the "art" side of the coin.

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  8. I think what Jenna meant is that there's a group of people on the jcrew design team who just LOVE to design clothes & they're not just banging out lame-ass designs to make a quick buck. I think that's what jcrew's catch phrase "If you only knew" was referring to -- If you only knew how much work (and love I guess) went into those pieces.. I think that's why in the catalog it has little blurbs explaining what went into the design/materials, to make it sound like it's so special.

    That's nice & all, and we all want nice pieces in our waredrobe.. But I don't get who in their right mind would spend that much money on a jcrew item. It's jcrew for crying out loud! Years ago they did a catalog with the kids from Dawson's Creek. And now they're selling $3000 hideous jackets? I don't care how much work went into it -- it's overpriced.

    Isn't the consensus already that a lot of their regular-priced stuff (not collection) is too expensive as it is? Their shoes are ridiculously over-priced & the quality isn't there to warrant it.

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  9. I think that it's kind of funny that the tortoise-sequin jackets are still around to make it to the store... I assume those were extremely limited given their materials, and it seems like they've been out for over a year. Is Jenna wearing one in that pic (from the last Collection post) of her and Mickey? I notice she's not wearing a Lucido! ;)

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  10. I like the idea that Jcrew is offering special one of kind pieces that are not mass produced. It's one of the qualities that sets the company apart from some of it's competitors.

    I also believe that there is market niche which Jcrew appeals to some who are insulated from the negative impact of the credit crisis and economic problems.

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  11. alexis, I could not agree more with your comments..... i am dissapointed about the flower pins, but glad that j crew was willing to share the source as I purchased one directly from them.

    jcrew in canada--- i read the book as well and could not agree with you more.

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  12. I can appreciate what they are trying to do with their collection pieces and this new Collection store. I think it's great that they can "mix it up" a bit, just as long as they realize that what makes collection-type pieces stand out is how they are utilized with the ordinary.

    Dress an entire store in Collection designs with extraordinary prices and you run into a little bit of the J. Peterman isn't-everything-we-have-so-precious problem.

    I think the timing for opening the store is okay, *if* they watch their costs and don't alienate their customers (core and new) with tons of exorbitant prices...it's a little like walking into a fantasy and dreaming about the possibilities. If the store is grounded in basics, I'm sure I could toss in a $50 flower pin or so :)

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  13. Time will tell...I personally feel Mickey and Jenna are a little too *overconfident* about their merchandise. Mickey desperately needs to look into some serious quality control...the quality DOES NOT warrant the current prices.

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  14. Also, the design team is simply putting out their take on the current Runway trends, as is every other retailer...

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  15. if jenna only knew how much my 401k has taken a beating...if jenna only knew how expensive gas was in my neighborhood...if jenna only knew how much i had to pay in taxes this year...sorry jenna, if you only knew that i don't have any money left over for $250 j crew sweaters that pill after 2 wearings

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  16. jcrew guy in canada -- is "How luxury lost it's luster" an article -- and if so could pass along the url, it sounds like an interesting read!

    Thanks!!

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  17. Speaking of flower pins, I just ordered a few pins from the maker of J.Crew's collection - Dulken & Derrick (www.flowersinthecity.com). I'll let everyone know how they look when they arrive!

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  18. FFM: I agree with your "over confident" comment and the quality control issues...Yes, JCrew makes great quality items but within each quanity of a particular garment are too many defects...lots of return for defective items recently (past year 1/2) for me....that before, many years ago was not an issue......

    Linda

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  19. Alexis --
    Just a thought,
    Could you maybe do a post based on the D&D flowers that some have ordered to review their quality, design, color etc, and also if they come with a pin attached ready to wear ...

    Thanks!

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  20. I like the 'Collection" conceptually, but I liked it better when they were offering some ultra lux pieces with a strong classic vibe.

    For instance: I have been waiting for years for a 100% cashmere Lady Day Coat. They still haven't created one, but I know it would sell. To me, that would be worth $1500.00. I don't mind them adding some transient, one season items for customers that can afford it, but how about some core basic contemporary, classics with lux materials? They've done a few times. The 500.00 black cashmere favorite fit trousers sold out fast last year.

    I do think it would be smart as they go forward to remember those 'upper middle' folks, who will spend for investment pieces.

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  21. FFM said it best. To me, it is the quality. If it was US made, I can understand about the high prices and willing to bend a little.
    But when I see lables such as 'Made in China, Philipphines, Macau' ect...who is getting the bang for their buck? I've been a jcrew follower since the late 80's, luv, luv the new looks that they're shelling out but its where the quality counts the most!

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  22. Alexis--you posed some great questions with this one.

    J Crew Guy--you always make such reasonable and well-put comments--I like you:)

    Leslie-I agree but let them have the collection store and pieces as long as it doesn't effect the core group that ultimately makes or break J Crew. Their timing sucks--I think it will be SO interesting to see what comes of this..time will tell.

    kelley-VERY good explanation-thank you!

    marta-I agree with you, and thanks for clarifying what many of us have been trying to figure out! WTH did "if" really refer to?? :)

    Anon 10:16-Yep and let's hope for J crew that there are enough of them.

    Anon-11;29
    Ohh--such simple thinking--and what I mean by that is it SEEMS SO OBVIOUS! You are EXACTLY on target with that suggestion! Beautifully made basics with a twist--more simplicity-super luxe fabrics with a higher $ tag-investment pieces with a twist. Wonderful linings and special buttons are the beautiful things I have come to LOVE with J Crew even on regulat items. Not over-the-top to the point of being just pure strange!
    I think they may find that future Collection stores will need to carry more of this type of product--again, time will tell.

    I do think they should have a separate website-perhaps a LINK from the homepage-for collection though--that's probably what has so many people "up in arms" as they are looking at blazers that run $250-$300 and they run into this ridiculous piece that is $3,000. It just doesn't make sense to me at all. If they aren't meant for the same target audience-then why are they placed on the same site??

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  23. anon@10:58 - jcrewguy is referencing a book called Deluxe: How Luxury Lost It's Luster by Dana Thomas. Even though I am not a high end customer and never will be, I still found it to be a very interesting read. I agree, too, that I now only think of Chanel and Hermes as the last true luxury brands.

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  25. Thanks covert 5. I think it's inmportant to remember it's clothing, not heart transplants

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  27. I feel like Mickey is just trying to do the opposite of what he did with Gap, and I think his logic is flawed. Just because his Gap plan failed, doesn't mean that doing exactly the opposite will succeed. And as to alienation, I think he is talking out both sides of his mouth on that one. His plan inherently involves alienation. But like FFM said, I think it all comes down to quality. We'll see.

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  28. I don't pay much attention to the items that are in the $1K plus range--I won't buy them and I like the more JCrew "traditionally-priced" items--but if they are spending effort and money creating these items which don't sell, ultimately it is going to affect the items I DO buy. Maybe this is why prices have been increasing on the basics?
    Personally, I think it is silly to market these expensive items, but also risky if it results in increases across the board.

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  29. This Mikey dude sounds like an effin idiot

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  30. I agree with the anon that suggested a cashmere lady coat. I think this type of luxe, but wearable item would be a fantastic addition to J Crew.

    I think they have almost hit the mark for me with the high end cashmere cardigans. The Jenna was gorgeous last year. The Butterfield is lovely too. "If I only knew" that they wouldn't look like trash after one season, I probably would spring for them and other similar items, even at the higher price point.

    One thing I don't like about most of the collection items is that they just aren't wearable for me and I am not sure who would be able to actually use them regularly. And while I understand the concept of creating something that is beautiful to look at, I'm not looking for art, I am looking for clothing.

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  31. Anyone care to take a guess at what white ruffle blouse being worn with the brown cardi and polka dot skirt on the mannequin next to trunks is??
    Looks TDF!

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  32. Meant to say do you think it's the new Victoria?
    I mean do they carry ANY of the same pieces that regular J Crew stores carry? I noticed they seem to have basics like matchstick cords (albeit marked up to $85) but not sure where they draw the line??

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  33. covert5- I posted at 11:29.

    Exactly! You would think a cashmere LDC would be so obvious! That's why I've been waiting, lol. I don't get it-why haven't they done it? At least do it in black J. Crew, c'mon!! (oh, and no $1500.00 coats in bright saffron or oranges that make your eyes bleed, please, thank you)

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  34. I think it is an innovative concept, and allows the designers to stretch their talents. Many of their customers buy J Crew as the "low" quotient in their "high/low" wardrobe assortments, and now this merely addresses this "high end" customer on her own turf. What is the worst that can happen? After all the best selling items will probably be reinterpreted at a lower price to the core J Crew customer, and everyone benefits.

    I think J Crew has done a fantastic job of offering fashion and quality at a price not normally found in specialty chain stores. They certainly have created an image that is at least "identifiable" as their own. Mickey Drexler is a visionary merchant, and brings conviction to his concepts to create an assortment of mdse., and a store presence that keeps me coming back to see what is new.

    I only wish that there was a collection store opening in SoCal. I hear there is to be a special beach store opening in the newly planned Malibu location, which I anxiously anticipate seeing. My only regret with J Crew this season is a lack of stylish casual weekend oriented items, suitable to a California lifestyle. We need more lifestyle pieces that have an upscale look, not only wool and cashmere for fall.

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  35. I would love one of these stores in SF, but the concept, in my eyes, is very East Coast/Ivy League/top paying job.

    I'm not sure how it would work on the West Coast, although there are a ton of those Ivy league types here working in finance and law. We also have a HUGE tourist market, primarily Japanese and European with cash to burn, many of whom are extremely design conscious.

    This store is clearly and openly marketing to an elite, moneyed buyer, and that will make some non-elite, non-moneyed people feel angry. I think it's kind of a waste of energy honestly. The regular J Crew isn't going anywhere .

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  36. so when i was told -- by several different customer service rep's 3 weeks ago -- that they had sold out of the few flower pins they had ordered, that wasn't true, was it? they had 200 of them, but were saving them to put in the store. that's pretty irritating, and undermines my trust in this company

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  37. collection stuff in the 250 - 500 dollar price point is great and there is a niche for that.....and even that group probably wouldn't buy the 3000 dollar jacket...but who cares...it's fun to look at......Mickey's right on with collection ,,,,,keep it coming!

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  38. Anonymous @ 2:26. The story with the flower pins is this: D&D was going out of business. J Crew bought some of their vintage pins to use in the catalog and then sell afterward. There were only a few. Someone then decied to buy D&D soon after (either the name, business, or both.) The pins in the catalog were vintage and sold out almost immediately. These pins for sale now are new and not quite the same.

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  39. From 1983 to the end of 2000, Gap's revenues rose from $480 million to $13.7 billion, and its stock soared 169-fold. But then the Mickey magic stopped working. Starting in 2000, same-store sales fell every quarter for two years, the stock plunged more than 75%, and Gap's debt was downgraded to junk in early 2002. Drexler left later that year. SO, you can all say he tanked Gap, but he was there for almost 20 years - something unheard of in retail. Please, understand what he really accomplished there before saying he ruined Gap. BR and Old Navy, as we know them would not exist without Mickey D.

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  41. I would also like a cashmere lady day coat. :) Especially in a dark color! I like the bright colors the coat comes out with, but I echo the sentiments of not paying a lot of money for what would not be wearable with everything I own.

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  42. Ironic is probably not my first choice of wording for the company's timing. And as for high end designers alienating customers with high pricing? Please. I can't afford a $4,000 jacket no matter who is selling it. As a firmly middle-class consumer, I'm definitely beginning to feel alienated in my trusty J.Crew! I don't know, but the whole company vision just sounds out of touch with current reality.

    BTW, I was the only person in the Rockaway Townsquare J.Crew this afternoon; the salespeople outnumbered me three to one.

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  43. I've been a J. Crew shopper for over a decade now, and have to say that I've been disappointed with the store lately. There hasn't been an increase in quality to correspond with the increase in pricing. I think J. Crew's marketing and catalogs are brilliant and they make everything look covetable, but I just purchased 12 items online, two of which arrived with problems. One was the wrong size AND color (a dress) and a pair of pants had an inch-long tear in the leg seam. This is the third time I've had quality issues with the clothes, so I'm not sure how much longer I'll continue to be a loyal customer despite my love of the cashmere.

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  44. I've been a J. Crew shopper for over a decade now, and have to say that I've been disappointed with the store lately. There hasn't been an increase in quality to correspond with the increase in pricing. I think J. Crew's marketing and catalogs are brilliant and they make everything look covetable, but I just purchased 12 items online, two of which arrived with problems. One was the wrong size AND color (a dress) and a pair of pants had an inch-long tear in the leg seam. This is the third time I've had quality issues with the clothes, so I'm not sure how much longer I'll continue to be a loyal customer despite my love of the clothes.

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  45. These comments about J.Crew really bother me. People from all backgrounds shop at J.Crew, from the middle class(clearly) to the very well-off(shock, horror) and they're not shopping there because of the state of the economy, but because they like the brand and their families have liked the brand, end of story. Last year people were bashing J.Crew for this and they profited, obviously times are different now and the wealthy(and certainly not just new money) shopping there don't think, "I could spend my 3000 at ____ instead", that's middle class thinking, a show off mentality that the wealthy, especially during these times, just don't have. It's been said on here already that they buy what they want, from wherever they want to buy it, well, contrary to popular belief that still includes J.Crew. It's just how it is people, trust me. It's an excellent idea for J.Crew to aim even higher when the masses have such an unjustified rotten view of the brand.

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