Are we witnessing the death of the independent retail brand?

[philophile]

Are we witnessing the death of the independent retail brand?​

What the ‘trending’ closures of independent brands say about the state of the industry.
By Rachael Akhidenor

Is it STILL POSSIBLE to run a FLOURISHING INDEPENDENT BRAND in 2024?

While not having enough money is the struggle that almost every business contends with, this is particularly poignant for independent brands and particularly relevant now.

For one, it’s never been more costly to run a retail brand. While many independent brands boomed in the early 2010s thanks to Instagram, easy access to social media user data, and no algorithm, much has changed since the direct-to-consumer heyday. Today, securing new customers via social media — or even (sadly) reaching your own followers — requires money. And lots of it. Digital ads are expensive. And due to changes to accessing social media data, those ads generate far less of a return.

Add to this a heavily saturated landscape. Independent brands are not only competing with other indie brands, but industry veterans and celebrity brands.

The recent closures reflect a grim reality; independent brands need more money than ever, and yet, it’s never been harder to secure funding. Investors are reticent to put money into consumer retail. Dion Lee’s collapse is a primary example of this. For Arnsdorf, they “explored acquisition… but that path didn’t eventuate during the current economic climate”.

While the drying up of funding is reflective across the entire consumer industry — even Kim Kardashian’s private equity firm, Skky Partners, has struggled to hit its targets — indie brands are, perhaps, suffering the most. “You think a brand is flourishing on social media but you really have no idea,” Watson says. “I think just being able to cover overheads like rent, bills and some sort of salary is the priority for a lot of us right now.”

Source: Harper's Bazaar Australia

 

[JohannesL]

I think part of the reasons is those labels bite off more than they can chew where they just don't have the prestige to back up their prices and acctract those high end customers. Having worked in the garment production sector for more than 10 years, I actually see a lot of SMEs and their small labels(I am surprisrd to learn that one of the clients business have more than 80 years history) last for many years and have a healthy business with reasnable priced and quality products. Sometimes, I think if those independent designers were able to run their labels like Jil Sander back in the days with good products and resonable price, they would have been able cater the contemporary market. But nowadays most of the independent designers just want to be The Row.

 

[Annhedonia Beretta]

Ah, I'd been wondering what happened with Arnsdorf. I mean, I still wonder what happened with Arnsdorf in a way, because many other indie Melbourne brands seem to be doing ok, especially if you look around somewhere like Fitzroy/Collingwood. I had gotten to the point of wondering whether there were rent controls for small retail spaces for local independent brands, because I just feel like there aren't many places like that in other Australian state capitals. It's like its own little retail ecosystem around inner Melbourne (although it has had its casualties regardless).

I think local/state legislation to impose rent controls in shopping areas/high streets would be the most likely thing to help independent brands at this point, rather than trying to take on the impossible challenge of getting people's attention online. And private investors these days are more demanding and cut-throat about ever-increasing return on investment, so no surprises there that they aren't going to geniuinely nurture smaller brands or will force attempts at unstable growth on those brands.

 

[philophile]

I think part of the reasons is those labels bite off more than they can chew where they just don't have the prestige to back up their prices and acctract those high end customers.

This is true for some independent labels, but definitely not for all nor perhaps even the majority. There is indeed a certain kind of niche of independent minimalist labels that want to attract The Row clients, i.e. Fforme, Rohe Frames, Co, etc, which are more like basics brands disguised as 'minimalism' taking advantage of the 'quiet luxury' trend and wanting to profit from it. I honestly find sad that this is the kind of independent label having the spotlight nowadays, when it wasn't like that a few years back. Furthermore, the article mentions that many of these indie brands are struggling to pay rent and the basics, so accussing all independent fashion designers of overpricing their products like The Row does, doesn't make any sense.

Independent labels were known for their experimental work several years ago (as the article mentioned, the 2010s were a golden era for independent designers, and this was not because they were designing basics) and this work was ripped off not just by the high street, but also by industry giants. Many independent fashion designer labels (see A.W.A.K.E. Mode, Aganovich, Dion Lee, Mara Hoffman, Tome, Sid Neigum, and wayy too many I'm forgetting) last decade were thinking out of the norm and some of them were even dictating trends and shaping the fashion landscape. Sadly, everything has been now replaced for the safe and boring, by big logos and status symbols, instead of focusing not on names, but on the design per se.

The more the big luxury fashion conglomerates monopolize fashion, the more fashion will become homogenous. This is why I find the fact that independent fashion designer labels are becoming extinct quite alarming, especially when we ask ourselves nowadays why fashion has become so boring and samey.

 

[LenaLena]

independed brands are the future of fashion
they just need to do business in their own way
aim small, stay small , make it happen