September 13, 2006
Cool, Trendy and ‘Mean Something’ Clothes
Eladio Correa, brand marketing manager for Etnies, manufacturer of skate footwear and apparel, stated the obvious. Consumers want apparel and accessories that are “cool and trendy” while offering a new element. Consumers, it seems, are also looking for clothes that “mean something.”
The “mean something” in this case are items that take the environment into account, namely organic clothing.
As with organic foods before it, organic clothing started out as items embraced by consumers outside of the mainstream. While today, that may largely still be true, there are signs organic clothing is starting to overcome some of the hurdles to purchase it has faced in the past.
Retailers such as Wal-Mart and Tesco have moved into the category, offering the prospects of lower prices for clothing that comes with an organic certification.
Tesco just announced it had partnered with environmental activist and designer Katharine Hamnett to create a line of organic clothing that will hit company stores next spring.
Terry Green, CEO of Tesco Clothing, said in a company press release, “This is a premium brand, reflecting the quality of Katharine’s design and the organic production processes involved. But it will also be affordable because Tesco wants to make organics accessible to all.”
Lee Rees-Oliviere, Tesco’s head of design, added, “Just as more and more people are choosing organic foods, we know our customers are increasingly interested in clothing which is made using environmentally-sustainable processes.”
Closer to home, Levi’s announced back in July it would rollout 100 percent organic jeans as part of its Red Tab and Capital E lines. The jeans will be available in November with more items to be introduced next spring.
Sales of organic clothing are still relatively low with an estimated volume of $583 million last year. Of note, however, is that sales of organic apparel have grown at a 3 percent annual clip going back to 2001.
Discussion Questions: How more or less likely are consumers to purchase organic clothing now that mainstream retailers are selling these items? What
must mainstream retailers do in product selection, merchandising, advertising, etc. to drive the sales of organic clothing?
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It’s interesting that Levi’s is getting into the action. They had launched the silverTab Elements line about ten years ago that featured organic clothes. It flopped.
It is ten years later, however. Growing at a 3% annual clip is noteworthy, but hardly an indication that there’s any kind of big shift in consumer thinking.
Apparel is a cyclical business. Styles and fabrics come into fashion and then go out, some crashing and others fading away. For organic to really grow, it will have to capture the imagination of the mainstream in a big way. Since so many trends come from teens, and given the continued grip of hip hop sensibilities, I wouldn’t invest my money in the organic fabric market just yet.
Organic clothing is one of several meaning-filled apparel niches that are gaining traction at retail and etail. On super-successful shoe etailer, Zappos’ website, one can use “vegetarian” as a search criteria, Stella McCartney doesn’t just shun fur, she won’t use leather or any animal-based products in her line of high-end apparel and accessories (what? No leather, snake or croc? Blasphemy! And yet …). Focus groups that we have conducted with mass shoppers at all income levels reveal that consumers care about the environmental impact of their purchases (we have found low-income mass shoppers to be more concerned about packaging reduction/overuse of packaging than any other segment), and we have been surprised by the level of consumer awareness already generated by Wal-Mart’s Baby George organic cotton infant apparel offerings.
Niches morph into full-blown trends when validated and enabled by widespread availability.
I’d have to understand what the standards are for labeling clothing organic. But, Ian’s right — there’s probably a market there. But the question is, how large? At least on a micro-scale, hemp clothing seems to sell well.
On a superficial level “Organic clothing” can be put into the same category as recycling. Bunch of tree-huggers with too much time on their hands looking for ways to make big bucks while promoting their cause. However it’d be a shame if that were the conclusion. For me the point of the story is the word “meaning.”
This quest for meaning, whether we can deal with it or not, is becoming the driving force in business. ‘Meaning’ isn’t just for philosophers, theologians and do-gooders any more. Consumers are looking for it in their food, cars, houses, relationships, schooling, work, etc. I know it sounds over the top – but maybe we need to look at how we can make our products, services, marketing and shopping experiences meaning-full.
The word ‘organic’ is originally from 1517 and the Latin word organicus meaning “serving as an instrument.” Maybe things in our world would be different if we did everything that way.
For bottom-line driven folks, I’m pleased to say that oddly enough there is a direct relationship between meaning and money just like there is between purpose and prosperity.
Seeing Wal-Mart take a page from Whole Foods by advertising organic foods on network TV, it’s not a reach to watch the mass appeal of “organics” develop in other categories including apparel. The trend needs a push from a couple of directions in order to develop more critical mass:
1. Other national marketers besides Levi need to put product development and advertising emphasis behind the category. Consumers need to understand why organic apparel is “good for you” — after all, you don’t eat it so its benefits are harder to communicate. Brand credibility can go a long way to help — think back many years ago to how yogurt evolved from a health food category to a mass-market staple through branding.
2. Long-term, the trend needs convenient broad distribution at value prices — which Wal-Mart can help to accomplish through its sheer mass. But the trend first needs the “buzz” factor that higher-end retailers can start to provide; it’s perhaps surprising to see a mass retailer jump on this ahead of higher-end department stores.
Consumers want everything. Consumers buy everything. Consumers have many interests. Switching products or making a wholesale switch is not necessarily going to be profitable. Which consumers have which interests, want what things, and will pay for which things? Knowing your consumers is the guideline for deciding whether to sell these new organic products. Determining what has “meaning” for your consumers is not easy but, without that determination, you may be stocking products that won’t sell.
For a growing group of shoppers who have unlimited choice, a way to “filter” the marketplace is to make purchases in places where in addition to filling their needs they are give a “feel good” about their purchase or an “I am a smarter shopper” feeling. For some doing good and shopping intelligent is real and who they are, for others it is about fashion and image. Stores who understand these customers and their needs stand to benefit. As environmental issues grow the number of customers in these target groups will be growing proportionately.
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It’s interesting that Levi’s is getting into the action. They had launched the silverTab Elements line about ten years ago that featured organic clothes. It flopped.
It is ten years later, however. Growing at a 3% annual clip is noteworthy, but hardly an indication that there’s any kind of big shift in consumer thinking.
Apparel is a cyclical business. Styles and fabrics come into fashion and then go out, some crashing and others fading away. For organic to really grow, it will have to capture the imagination of the mainstream in a big way. Since so many trends come from teens, and given the continued grip of hip hop sensibilities, I wouldn’t invest my money in the organic fabric market just yet.
Organic clothing is one of several meaning-filled apparel niches that are gaining traction at retail and etail. On super-successful shoe etailer, Zappos’ website, one can use “vegetarian” as a search criteria, Stella McCartney doesn’t just shun fur, she won’t use leather or any animal-based products in her line of high-end apparel and accessories (what? No leather, snake or croc? Blasphemy! And yet …). Focus groups that we have conducted with mass shoppers at all income levels reveal that consumers care about the environmental impact of their purchases (we have found low-income mass shoppers to be more concerned about packaging reduction/overuse of packaging than any other segment), and we have been surprised by the level of consumer awareness already generated by Wal-Mart’s Baby George organic cotton infant apparel offerings.
Niches morph into full-blown trends when validated and enabled by widespread availability.
I’d have to understand what the standards are for labeling clothing organic. But, Ian’s right — there’s probably a market there. But the question is, how large? At least on a micro-scale, hemp clothing seems to sell well.
On a superficial level “Organic clothing” can be put into the same category as recycling. Bunch of tree-huggers with too much time on their hands looking for ways to make big bucks while promoting their cause. However it’d be a shame if that were the conclusion. For me the point of the story is the word “meaning.”
This quest for meaning, whether we can deal with it or not, is becoming the driving force in business. ‘Meaning’ isn’t just for philosophers, theologians and do-gooders any more. Consumers are looking for it in their food, cars, houses, relationships, schooling, work, etc. I know it sounds over the top – but maybe we need to look at how we can make our products, services, marketing and shopping experiences meaning-full.
The word ‘organic’ is originally from 1517 and the Latin word organicus meaning “serving as an instrument.” Maybe things in our world would be different if we did everything that way.
For bottom-line driven folks, I’m pleased to say that oddly enough there is a direct relationship between meaning and money just like there is between purpose and prosperity.
Seeing Wal-Mart take a page from Whole Foods by advertising organic foods on network TV, it’s not a reach to watch the mass appeal of “organics” develop in other categories including apparel. The trend needs a push from a couple of directions in order to develop more critical mass:
1. Other national marketers besides Levi need to put product development and advertising emphasis behind the category. Consumers need to understand why organic apparel is “good for you” — after all, you don’t eat it so its benefits are harder to communicate. Brand credibility can go a long way to help — think back many years ago to how yogurt evolved from a health food category to a mass-market staple through branding.
2. Long-term, the trend needs convenient broad distribution at value prices — which Wal-Mart can help to accomplish through its sheer mass. But the trend first needs the “buzz” factor that higher-end retailers can start to provide; it’s perhaps surprising to see a mass retailer jump on this ahead of higher-end department stores.
Consumers want everything. Consumers buy everything. Consumers have many interests. Switching products or making a wholesale switch is not necessarily going to be profitable. Which consumers have which interests, want what things, and will pay for which things? Knowing your consumers is the guideline for deciding whether to sell these new organic products. Determining what has “meaning” for your consumers is not easy but, without that determination, you may be stocking products that won’t sell.
For a growing group of shoppers who have unlimited choice, a way to “filter” the marketplace is to make purchases in places where in addition to filling their needs they are give a “feel good” about their purchase or an “I am a smarter shopper” feeling. For some doing good and shopping intelligent is real and who they are, for others it is about fashion and image. Stores who understand these customers and their needs stand to benefit. As environmental issues grow the number of customers in these target groups will be growing proportionately.