RETAIL BUSINESS IN NIGERIA: Focus on Clothing Retail
Yesterday evening, I stumbled on a fascinating post on 'stylecravings' blog. I gazed on my screen properly with full attention like i had seen my enemy inside a gutter. What i saw was something even more intriguing. Captured tweets of popular blogger/photographer Terence Sambo of "Onenigerianboy" about his complete irritation of how L'espace (Cloths retail store) run there retailing business. Using there recent business activity with his sister's fashion line Wana Sambo Clothings has the base. The blogger also posted some tweet reply from L'espace agent and there official statement. Check this link for details - http://uberchicmichi.blogspot.com/
I decided to touch this very critical and important angle of fashion which is MARKETING. But before i share my view on it, let me brief you about the company we are talking about.
Le'space is a retailing store situated off karimu Ikotun vi, Lagos. According to an agent, the store is on 670 sqm and cost lot of money to acquire such a space at victoria island. Let me say few things about retailing stores. Like New Look in the UK, Like Macys and Target in the US, Le'space offers oppurtunity to designers to market there products at a cost.
According to L'Espace, for a designer to have his/her designs in there store, you have to fulfill these terms and conditions:
1. Minimum of six pieces from your Line
I decided to touch this very critical and important angle of fashion which is MARKETING. But before i share my view on it, let me brief you about the company we are talking about.
Le'space is a retailing store situated off karimu Ikotun vi, Lagos. According to an agent, the store is on 670 sqm and cost lot of money to acquire such a space at victoria island. Let me say few things about retailing stores. Like New Look in the UK, Like Macys and Target in the US, Le'space offers oppurtunity to designers to market there products at a cost.
According to L'Espace, for a designer to have his/her designs in there store, you have to fulfill these terms and conditions:
1. Minimum of six pieces from your Line
2. N50,000 naira monthly rent
3. N15,000 as monthly service charge (Choose from either a 3 months or 6 months upfront payment option)
4. L'Espace gets 20% weekly on designers total sale.
3. N15,000 as monthly service charge (Choose from either a 3 months or 6 months upfront payment option)
4. L'Espace gets 20% weekly on designers total sale.
Okay those are the few terms i was able to gather. let me focus on my take on this. I'll be talking from a designers point of view and as an economist.
There's no way as a designer, you will breake even with such a deal. Now, let me express myself better i probably sound burnt in my previous sentence. Anyway, in all honesty what L'Espace have on the table for designers is just wrong in everyway. Just so you guys know, desinging is not easy job. Especially when your ideas are original. You’ve been through sketches, patterns, prototypes, samples, more prototypes, more samples and finally, the finished product.you’ve spent months, maybe even years turning your idea into a real, shelf-ready creation. Then after all that the retailers pulls a stunt on you.
I spoke with my cousin Funke who presently works at Macy's frangance section (she still owes me about 4 bottles) store in Minnesota. She told me Macy's mostly buys goods or products in large quantities from manufacturers or directly or through a wholesaler, and then sells smaller quantities to the end-user. I know you'll come up with "this is Nigeria", "Its an infant company" "Store is situated on the island" "Enviroment is different" "Office space is Killing" "Baba suwe hasnt been paid" bla bla bla. Okay!. I can defend my point again. I know a business venture's goal is to maximize profit so as to keep the business alive. But should keeping your business alive mean killing others?. The same reason company's like L'espace cant afford to buy products from the manufacturer is the same reason why the manufacturers cant afford to pay that much.
Okay..lets be practical about this. If i design a cloth and retail for 20k a peice. retailers include their cut lets say 10%. I still pay monthly charges to them for retailing my products, they make 20% of my sales weekly, they use my products for fashion shows, music videos and so on, they get paid for that, i dont receive a penny from that and might not even be aware of it untill i see my designs on Tiwa Savage in a video. Where do you think my fashion line is heading with all that?
So in all, its like I'm working for the retailing store all in the name of trying to sell my product. Pls note that i am not against retail stores. Its something the fashion industry really needs. But do not take advantage of the need of the designers/manufacturers.
My advice for fashion labels that are not yet big enough to factor in all those charges is focus on your immediate market. Advertise on social networks, try the garage sales if there are anyone around you, Your car boot can also take alot of clothes and to infant retailing stores, use your opportunity wisely. In the next couple of years, America’s foremost low-price merchandise retail store Walmart, Australian supermarket chain Woolworths would be in Nigeria for real business.
Cheers!
Pls feel free to use the comment box on what you feel about this sensitive topic.
There's no way as a designer, you will breake even with such a deal. Now, let me express myself better i probably sound burnt in my previous sentence. Anyway, in all honesty what L'Espace have on the table for designers is just wrong in everyway. Just so you guys know, desinging is not easy job. Especially when your ideas are original. You’ve been through sketches, patterns, prototypes, samples, more prototypes, more samples and finally, the finished product.you’ve spent months, maybe even years turning your idea into a real, shelf-ready creation. Then after all that the retailers pulls a stunt on you.
I spoke with my cousin Funke who presently works at Macy's frangance section (she still owes me about 4 bottles) store in Minnesota. She told me Macy's mostly buys goods or products in large quantities from manufacturers or directly or through a wholesaler, and then sells smaller quantities to the end-user. I know you'll come up with "this is Nigeria", "Its an infant company" "Store is situated on the island" "Enviroment is different" "Office space is Killing" "Baba suwe hasnt been paid" bla bla bla. Okay!. I can defend my point again. I know a business venture's goal is to maximize profit so as to keep the business alive. But should keeping your business alive mean killing others?. The same reason company's like L'espace cant afford to buy products from the manufacturer is the same reason why the manufacturers cant afford to pay that much.
Okay..lets be practical about this. If i design a cloth and retail for 20k a peice. retailers include their cut lets say 10%. I still pay monthly charges to them for retailing my products, they make 20% of my sales weekly, they use my products for fashion shows, music videos and so on, they get paid for that, i dont receive a penny from that and might not even be aware of it untill i see my designs on Tiwa Savage in a video. Where do you think my fashion line is heading with all that?
So in all, its like I'm working for the retailing store all in the name of trying to sell my product. Pls note that i am not against retail stores. Its something the fashion industry really needs. But do not take advantage of the need of the designers/manufacturers.
My advice for fashion labels that are not yet big enough to factor in all those charges is focus on your immediate market. Advertise on social networks, try the garage sales if there are anyone around you, Your car boot can also take alot of clothes and to infant retailing stores, use your opportunity wisely. In the next couple of years, America’s foremost low-price merchandise retail store Walmart, Australian supermarket chain Woolworths would be in Nigeria for real business.
Cheers!
Pls feel free to use the comment box on what you feel about this sensitive topic.
What a shame on both parties. L'espace on the condition of taking merchandise off the shelf without purchase if its true and onenaijaboy trying to ousted then in the manner he did, I read one of his tweets about freedom of speech, he censors comments posted on his site once its not favourable, Bella Naija is also at it too except for Linda Ikeji who doesnt give a tweet whatever you post on her blog.
ReplyDeleteBut back to L'espace if the allegations are true then you have just lost alot of goodwill to your business, you dare not go into Harvey Nicols or Macy's and use Jimmy Choos belt and replace for sale...thats totally out of order. and the whole lot of shame is, these are the new generation that should not repeat their father's mistakes but I guess the naija blood runs through young and old
Hello Anon,
DeleteThe fashion industry is just really complicated. Has for ONB, i'm not sure he screens comments but be rest assured we wont screen here. Thank you for stopping by.