Supply and demand

Now that the last of the major international fashion weeks draws to a close in Paris, attention in the fashion world will shift shortly back to New York. In less than three weeks, Sir Philip Green will unveil his Topshop flagship in New York, at 478 Broadway. Having already spent many millions of pounds and dollars on the project, he is hardly likely to skimp on a few more in order to give the store opening the burst of publicity that will guarantee it headlines and TV coverage across New York, the US and probably beyond.

Without doubt, US retailing and international fashion retailing needs events and openings like this to remind people that retailing - fashion or otherwise - is about inspiration and innovation as much as anything. But what is also significant about this imminent opening is some of the comments made by Sir Philip on what he thinks will guarantee Topshop’s success in probably one of the most challenged retail markets around the world. When asked that question directly at a recent press conference, he stated without hesitation that it was because: “We can work at speed, we have in-house design teams and we are trend-driven”.

What he meant and was really describing was fast fashion and a speed to market wth fast changing collections which many international apparel retailers have mastered. But very few American ones. In a recent publication: “US Fashion Report 2009″ published by global trend analysts WGSN, it states the US fashion retailers have “some way to go” before they match European fast fashion retailers. Yet it is something that has to change if they are to survive.

What this also focusses on is the development of labels and supply chain. The last few weeks have seen a number of significant companies around the world announce that a key area of growth is coming from private label ranges. Allan Leighton, President and deputy chairman of Canadian chain Loblaws, said recently at a conference that: “There is a flight to value and the flight to value is long-haul and not short-haul. This is not going to be a temporary thing that happens for two or three months”. For Loblaws, as with many retailers, the best way to offer value and to build loyalty and a point of difference is through private label. Its President’s Choice brand does just that, as does Topshop for Sir Philip’s customers.

To get that speed, exclusivity and the all important margin, retailers are having to put renewed focus on their supply chain. The supply chain is always key but never more so than now. The currency swings around the world and the strengthening dollar are really hurting retailers that bought forward when the dollar was weak. Their only place to go - apart from looking for further help from suppliers - is to look for great speed and efficiency from the supply chain.

And from Sir Philip’s comments on what makes the difference at Topshop, this is clearly what he understands too.