Vente-Privee & American Express Bring Luxury to E-Commerce

Vente-Privee Makes Its US Entry with American Express

By Natalia Ignaczak

Founded in France in 2001, Vente-Privee is the largest flash sales site in all of Europe. The firm currently boasts about 13 million members and over $1B in annual revenue from its European market. It is currently France’s fifth favorite brand and was the second most visited website in France in 2010. This massive platform has caught the attention of companies like Amazon and eBay hoping to acquire this valuable asset, but it was with American Express that the firm entered the American market on Nov. 9, 2011.

Vente-Privee and American Express agreed that each company would maintain 50 percent of the US entity. This will be the first non-European stride in expansion for Vente-Privee.com, thus reinforcing its strategy in international development, and further wets the feet of AmEx’s standing in the online flash sales business. Vente-Privee will contribute its understanding of consumer desires paired with spotless customer service and logistics while American Express will provide the firm with its 40+ million member database along with detailed comprehension of the North American market.

This jointly advantageous partnership brings together two companies who focus on retail opportunities benefiting both the retailer and consumer. This will be a great step for both companies regardless of the saturated flash sales sector of e-commerce in America because although there is significant competition, the quality of product will shine through and sustain the business. American Express stands for quality whether that means US Open tickets or an overstock in stilettos, and cardholders know this. For that reason, members will at least glance at the site when it launches and definitely keep it in mind for future needs. I am excited to explore the offerings and will appreciate a European touch to luxury e-commerce.

Behind the Seams: Licensing & the American Fashion Industry

by Caroline Thompson

Would you be willing to spend four times the current price for your every day purchases? Despite being used to the high prices of Manhattan, most would resoundingly say “No!” without a second thought. Yes, New York City is already expensive enough. But without licensing, sourcing, and offshore manufacturing a quadrupled price tag would be featured on store shelves. Moreover, Consumers must be forced to ask themselves, at what cost do these less expensive products and services reach the shelves?

New York City is home to millions of people who work in various industries, live in different boroughs, and spend leisure time in different ways. Despite those differences, one thing New Yorkers often have in common is putting themselves and their city at the center of the world. That self-centered outlook undoubtedly extends to the fashion industry.

The Garment District of Manhattan extends from 34^th to 40^th Street between Broadway and Ninth Avenue. In 1995, that small area was home to over 16,000 manufacturing jobs. Today there are only 9,000 jobs there. Manufacturing is not the only sector of the industry whose employees are diminishing: wholesale and design jobs were also lost. The migration of the industry online, and the moving of jobs overseas are the main factors that opened the eyes of New York fashion employers, and forced them to widen their view Manhattan-centric geographical view.

Fashion has always been about appearances, which has ironically blinded a part of its vision of about keeping up the appearance of a healthy domestic industry. But the blindness to the downside of outsourcing and making price the crucial factor in business is not confined to fashion: electronics, accessories, and footwear are also often outsourced and manufactured abroad. Yet whatever the industry or brand, licensing to sub-par secondary sources of products, or the use of child labor, can tarnish a company. Therefore, brands keep licensing and manufacturing practices as quiet as possible. Couture designers, in addition to others, license their names and brands to various apparel lines, accessories, beauty products, and even home décor companies. The goal is to extend the brand, but often with a hands-off approach that reaps profits and brand exposure, but avoids the hefty time, effort and expense of a solid investment of money and monitoring procedures.

Fashion licensing is made to be invisible to the consumer by companies and designers. If invisible, retailers can charge prices equivalent to that of the designer’s other products. Couture designers may embrace a hands-on approach to the quality of haute couture items but leave alone the quality of their mass-market perfumes have never been touched. Sometimes entire high-end brands are mass produced and licensed to third parties, providing designers with unearned profit. Yet licensing does not have to been done so negatively either domestically and abroad. Responsible oversight of licensed partners can be achieved. Unionized companies and those with production in the United States can use fair-labor practices, and the employees, economy, and companies can all remain competitive, if not as profitable as they would be if they cut corners.

Consumers’ perceptions of offshore production can also sometimes be unfair. China’s late development as an industrial powerhouse has led to well-reported lapses in product safety and quality. However, China has been making progress on both fronts, and headlines about child labor, low wages, and contaminants in the manufacturing process can be deceptive. Moreover, workers within developing countries may be receiving the equivalent of our minimum wage within their country, excited to be employed at all, or happy to have businesses growing in their country.

Chinese production does not necessarily mean the product will be of poor quality. Yet in cases where that is so, more than one party is responsible. Americans seeking the lowest possible price provide an incentive for offshore manufacturers to skimp on materials and pay low wages. If that situation is to be reversed, that task is enormous. According to the Ethical Fashion Forum, “More than a quarter of the world’s production of clothing and textiles is in China, which has a fast growing internal market and the largest share of world trade.”

It is unlikely that American manufacture of apparel will rebound to compete effectively with such a market share, and perhaps the best that can be done is to encourage the highest craftsmanship and ethical standards for Chinese-made goods in our consumer choices (and to support U.S. government policy that is fair to our workers here and insists on fair trade agreements). The decline of New York’s Garment District is an opportunity for U.S. consumers to widen their outlook on global business not just to fully branded companies but to the secondary licensing and other agreements those companies practice. Consumers need to look deeply into the truth behind their favorite brands.

eBay's Fashion-Forward New Strategy

Designer Deals to be had 24/7 via Ebay.com

By Natalia Ignaczak

Forget the inevitable schlep to far away outlets come this holiday season. eBay has launched a new discount outlet channel for popular retailers. This shift in strategy from auction sales to traditional retail comes at a turning point in the firms’ business. Once doing most of its business through independent auctions, $9.7B is now done in fashion sales dominating the company’s annual revenue. Since 2008, 60% of users have opted for a fixed price purchase over bidding and nearly three quarters of customers are opting for entirely new merchandise and is being introduced under the eBay Fashions imprint. Fashion Outlet is entirely separate from eBay’s flash sale site Fashion Vault. eBay Fashion Outlet is what they are introducing, under the eBay Fashions imprint.

In addition, the opportunity lends itself to high-end retailers in that each brand maintains its image exactly as it wants on its page assuring that new customers with less discretionary income are not confused with mixed messages of luxury vs. cheapened merchandise. Furthermore, the majority of merchandise is not time or seasonally sensitive meaning no one will know which Spanx are last season’s or what Brooks Brothers tie was from fall or winter.

To date, over 200 brands have affiliated themselves with the site. Factory stores online at the Fashion Outlet include Brooks Brothers, Calvin Klein, Fila, Last Call by Neiman Marcus, Reed’s Jewelers and Tommy Hilfiger. Shoes are represented by Donald J. Pliner, Frye, Stuart Weitzman and many other favorites. The apparel sector is likely the most inclusive featuring a variety of designers from BCBG Max Azria, Elie Tahari, Elizabeth and James, and several department store veterans. Likewise, men are not forgotten either. The site includes Seven For All Mankind, Emporio Armani, and Hickey Freeman, among others. Some items are made exclusively for the outlet, just as in brick and mortar outlets, but the majority of merchandise was at one point sold for its full retail value.

eBay Fashions is making strides in becoming a destination for the astute online shopper. By employing the growing “pressure-to-buy” strategy, site users recognize the opportunities at hand and act upon them in a timely manner. The format presented is also simple to navigate and appealing to each brand. Operating costs are far less and online retailing is not affected by inclement weather or the time of day. In addition, each retailer can maintain their desired image with ease and show their entire inventory clearly. As an added bonus, site users can see clearly the original price, current price, and savings in dollars and percent. On the toolbar of each window, users can indicate selections my garment type, color, size and brand further simplifying navigation. All of these combined elements create a winning formula for the soon to be powerhouse of Internet discount shopping.

Love Through an Unexpected Lens

by Audrey Ong

Adam is a delightful, independent film that is an “impressive and oft moving tale brought to life with memorable performances and a bittersweet account of love and its entwined complexities”, as said by IMDB reviewer Jamie Ward. It has gained rave reviews from the New York Post, NPR, The Washington Times, The New York Times as well as applause and enthusiasm from general audiences on online websites such as Yahoo Movies, IMDB, and film blogs. It has been described many times as a “beautiful gem” and “beautifully crafted”, and it certainly stands out among typical independent romantic comedies. Released in 2009, and grossing $2.3 million, Adam was indeed incredibly made. It tells the story of an intelligent, autistic man falling in love with a children’s book writer/ neighbor.

Director and writer Max Mayer, says he didn’t set out to make an “issue film” with Adam, but he wanted to show a look at relationships and their challenges through an unexpected lens. He was inspired after listening to a radio interview with a man with Asperger’s.

In a 2009 interview with Cinema Blend, Mayer said, “I look for a strong personal reaction to something that feels like it will sustain me. I thought that this was an opportunity to give people a window into something that was strange and yet universal at the same time.”

The New York Times reviewer, Jeanette Catsoulis, compliments the unpredictability of the script, the delicate humor, and the lovely Manhattan locations photographed by cinematographer Seamus Tierney. Mayer intercuts scenes of Adam’s maturation with scenes of the Buchwald family’s disintegration to show the audience just how important support groups are during trying times. Furthermore, he manages to make a film that’s funny but meaningful and give the audience characters to care about instead of laugh at and forget.

Hugh Dancy did a brilliant job performing as Adam Raki. The way he moved, talked, and limited his facial expressions was convincing. As noted by The Washington Times, “Mr. Dancy’s turn as the titular character strikes just the right balance by displaying the Asperger’s symptoms without making a huge show of them. This isn’t the over-the-top performance, and the few times he really lets loose – as he does in a surprising moment of rage at Beth – the effect is intense. Miss [Rose] Byrne, meanwhile, charms as the single daughter reconciling her anger at her father with her love for her family.”

Another reviewer said, “Playing a character who is mentally disabled can be a fast track to Oscar or to oblivion, and rare is the actor who can resist the statuette-winning, Hanks-Hoffman strategy of mannered tics and mechanical talk. And when you consider that not even Sean Penn could pull it off without making our eyeballs cringe, the performance of Hugh Dancy in the charming romantic comedy, Adam, is all the more impressive.”

Adam was a breath of fresh air, and many audiences agree and still enjoy the movie a couple of years after its release. A reviewer on Static Mass Emporium, who actually has Asperger’s, recently posted his opinion of the film just a few months ago: “A film like Adam is something of a rarity. Not only is the main character Aspergic, but the portrayal is in no way stereotypical negative or crying out for attention. Instead, it’s beautifully told and for someone like me, Adam is extremely easy to relate to; he does many of the things I do and his situations have quite often reflected my own. There’s also a wonderful humor to it, like when Beth gives him a box of chocolates and he remarks, ‘I’m not Forrest Gump, you know!’”

Not to get too heavy, but the German philosopher Nietzsche’s theory of how one can find joy outside the world of typical social expectations applies to Adam. Any movie where love or another emotion beats the square world, even if typically the passion is flawed and the price of following passion is high, relates to Nietzsche’s idea. Adam was not just a simple or typical romantic plot where two people fall in love, but instead it showed the complexity and realism of a true relationship. I personally enjoy romantic comedies, and the realism of the plot made it more appealing. In some ways, it was relatable – relationships usually stumble onto conflicts and challenges, and they don’t always end in happily-ever-afters. It wasn’t a cliché or a cookie cutter form of a typical romantic comedy. The way it was told and portrayed was refreshing and quirky with lovable characters. It shows the difficulty of unexpected challenges and surprising awkwardness. Fox Searchlight Pictures said, “Beth and Adam’s ultimate connection leads to a tricky relationship that exemplifies something universal: truly reaching another person means bravely stretching into uncomfortable territory and the resulting shake-up can be liberating.”