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The man re-tailoring Hugo Boss


Interesting point here regarding BOSS selling direct. This is the elephant in the room that nobody really likes to talk about. Initially, brands said they would use their websites to showcase their product to help their wholesale network. Then they started to sell their product, but at full margin. Then the discounting started and so fourth. There is quite clearly a conflict of interest, which ultimately can only go one way in the end. Either you wholesale and respect that network, or retail. You cannot credibly do both unless prices are held firm by the brand. Call it leading by example. Account managers can be incredibility uncomfortable about talking about this subject, because to defend can challenge their integrity and credibility. Some brands websites on an annual basis pitch themselves somewhere between wholesale and retail price once all their discounts, promotions etc have been factored in. This in turn means the existing retail network cannot compete on anything other than an ad-hoc basis, which is ultimately not viable.

Posted date

7 December 2018

Posted time

3:10 pm