Hello
I'm testing appetite for discount designer goods.
For instance, Tom Ford sunglasses that retail for $799 available for $249.
My friend runs one of the largest Amazon fashion stores in the USA and has access to wholesale clearance and liquidation sales. These ranges, goods and prices aren't available in Australia. So he is considering importing them to Aus.
Thank you for reading this far. Any feedback would be appreciated
Kind regards
Jeremy
Yeah I shop a lot of 'premium streetwear' and a little bit of luxury goods. So much of the clothes in the sales sections of these sort of websites sit for months if not years. Either it's unwearable by anyone but the most fashion forward or it's a mediocre item with a massive markup for branding.
Interesting feedback.
I disagree on the business waiting to fail comment.
Catch of the Day makes $50M profit by selling clearance stock at a discount to normal retail prices.
But consider how COTD got there, gaining traction in the market when they started off. Also, weighing in competition and warranty issues - you have to calculate risk vs reward. Sure, im not saying your model is flawed, but also worth investing time finding out why and how similar ventures failed whilst some succeeded. Im take is not saying you're going to fail - Im saying you need to have refinement over simpler thoughts than i get from A sell to B
I remember seeing a few ~$2K Junya Watanabe x North Face jackets on COTD recently. They were from about 4 seasons ago. They must have gone through so many hands before ending up on a site like COTD.
How familiar are you with the luxury market? Do you purchase many luxury goods yourself? If there’s any money to be made it will be by being able to identify overlooked goods with value and creating a store which is basically a curated collection of luxury sales goods (would probably need your own stylist and make your own look books). If you’re not a consumer of many luxury goods yourself then I would forget about it.
CotD sold more than fashion and "luxury" goods.
It's not comparable.
Talking about the business model. Buy low and sell high…..
Catch of the Day makes $50M profit
Did you pluck this out of your a*se? If not reference?
Got confused with Kogan.
From the Fin Review
Online retailer Catch Group's run at the ASX-boards is formally underway with its sponsor brokers sending detailed research reports to fund managers.
UBS analysts told clients Catch Group had about 1.5 per cent of the "fast-growing" online retail market (not including food) and 1.2 million active customers.
EBITDA was forecast to increase to $17.4 million next year.
So she'll be selling overstocked/last years fashion designs for discount prices. There is plenty of competition of large players in that market space already. How would your friend compete with the likes of Yoox? Effectively it's a second tier of sales to a compeletely different set of customers than she would be used to in her primary fashion business.
Big discounts on designer goods just scream fake knock offs, so there is this image you need shake off first
then secondly, how are you going to differentiate yourself to the already established TK maxx (TJX)
big franchise name backing their "Genuine/Authentic" tag
As a consumer, any competition to the market is good competition.
As an investor, I wouldn't put any money into this venture. Designer goods that get heavily discounted are the worst type of goods. These are goods that started off with a ridiculous markup to make them exclusive and by the very fact they are overstocked means they've failed to attract the market. They are now next to rubbish since their primary marketability has undeniably failed yet it still carries a premium price tag.
A business built upon selling failed concepts at a premium is a business waiting to fail.