Listen up, aspiring designer brands, create products at a price people are willing to pay

Too many young designers are falling into the trap of position pricing rather than what consumers are happy to pay. It’s time for a rethink.

Adrian Joffe, CEO of Comme des Garçons, said something rather honest and interesting recently. It’s also something fairly obvious, but then again fashion has lost much of its common sense and rationality over the past few years.

Upon the opening of the new Comme des Garçons-owned Dover Street Market in Paris, he said, “A lot of the young designers now, their prices are ridiculous — and they don’t have to be. You don’t have to multiply your costs by five like the big brands do.”

Speaking to the Business of Fashion he acknowledged the rising costs of production but said the system fails to emphasise one of the most basic principles of entrepreneurship: create products at a price people are willing to pay.

Eureka!

Speaking as one of the world’s most famous multi-brand retailers, Dover Street Market is always hungry for the new and does support independent designers, but it also must run a commercial enterprise despite being heavily supported by its parent brand.

For young designers and brands, just because X is charging Y for Z, it doesn’t mean that your brand has to charge to same to be seen in the same ‘luxury’ category. It’s important to make a healthy margin and profit, but it’s rare that a consumer will drop considerable sums on a brand they have never heard of and you’ll always be out-muscled by the big boys, who seriously over inflate their prices but having the marketing to go with it.

If you lower your prices or sell items that aren’t as expensive to produce then you’ll probably sell more, get your label out their faster and, hopefully, grow the business. There’s a reason most designer brands are built on underwear, perfume and basics.

You also don’t want customers feeling ripped-off or feeling the lack of value in your products. They won’t return. They will also tell their friends.

Designers should try working backwards, decide what consumers will pay for something and then work out how to design and produce.

“The hunger for [independent fashion] for sure is out there — I feel it,” added Joffe. Niche brands can still succeed at selling more high-end items, of course, but the price needs to be backed up by a special product, he said.

I’ve noticed that too many young brands or designers don’t sell enough (or sometimes any) items that people can easily buy. Some don’t even have a recognisable logo, the most basics in branding.

An example to follow is JW Anderson. Whatever he does in his catwalk show, there is always a tee with his anchor logo on it somewhere. This is your bread and butter and what retailers, buyers and consumers want.

Ask yourself what is a reasonable price for a designer T-shirt and work backwards and you could just have the beginnings of a business.