California Apparel News

In a holiday retail season that is expected to remain murky, e-tail sales may prove to be the beacon for the economic recovery.

Forrester Research Inc. released a report on Nov. 2 stating that it expects online retail sales in November and December to reach $44.7 billion this year, an 8 percent increase over last year.

With the numbers swinging in their favor, most e-tailers are relying on the products they carry and their loyal customer base to get them through the “post-recession” holiday season. Online retailers also predict less aggressive discounting tactics during the shopping season.

Brooke Price, co-owner of the Beverly Hills–based e-tail site Stanton James (www.stantonjames.com), acknowledges the current climate that shoppers are expecting. “Customers are buying distinctive statement items, and everyone wants to get a great deal,” Price said. “Stores realize that the market is better than last year, but customers are still holding on to their cash and looking out for the best deal.”

To stand out, Stanton James is heavily involved in the blogosphere and with fashion bloggers. The site recently launched a blog network featuring a slew of style-savvy fashionistas. For the holidays, the site is also offering exclusive discounts to online readers of Refinery 29 (www.refinery29.com) and People magazine’s Stylewatch (www.peoplestylewatch.com).

Stanton James carries brands such as Mink Pink, Dace and Bridgid Catiis.

One issue that e-tailers weigh in on, especially during the holidays, is the incentive of offering free shipping and free returns.

Price said she is willing to take on the cost of free returns in order to ensure good customer service. “It can be difficult to budget for returns because you don’t want to raise your prices and discourage customers from buying, so we just bite the bullet on most return shipping costs,” Price said. “Our focus on carrying good products and giving the best customer service possible actually discourages returns. Our return rate is relatively low, and part of that is just the confidence that ’free returns’ gives customers.”

Rather than relying on discounts, e-tail site Moxsie (www.moxsie.com), based in Palo Alto, Calif., plans to focus on its coterie of independent and up-and-coming brands and designers, such as Hellz, DustieDoll and Lamixx. “It seems like everything has been on sale the entire year and having a special holiday sale is not going to differentiate you that much,” said Chief Executive Officer Jon Fahrner.

One added value Moxsie is providing to its shoppers is free gift-wrapping with each purchase. All items ordered will be sent in special boxes with unique wrapping.

“Common sense for me is the tougher the climate, the more you should offer the customer,” Fahrner said. “For Moxsie, the main driving force behind the purchase is the attractiveness of the product—not the price. We feel holiday is the time to maximize the chances of that happening and expand your product offering.”

Holiday advantage

E-tailers are using the holiday season as the perfect time to roll out new features. San Francisco–based fashion e-commerce site Tobi (www.tobi.com) will introduce virtual dressing rooms where shoppers can utilize Web cams to try on products by superimposing images of themselves onto the clothes.

Shoppers will be able to try out products from Tobi’s list of contemporary designers, such as Alexander Wang and William Rast, and denim brands, such as Habitual, Blank and G-star.

“We were able to bring in our holiday inventory on time, which means way in advance of Black Friday,” said Irene Chen, marketing and public-relations manager for Tobi. “From our experience and from industry research, we know that people start to prepare and shop for the holidays earlier and earlier each year, so even getting in most of our coats around October was great timing, and things were and are still selling well.”

Contemporary fashion e-tailer 80’s Purple (www.80spurple.com), based in Huntington Beach, Calif., changed its buying tactics going into this holiday season.

“We are moving in the direction of working closely with current brands to offer exclusive promotions and sales strategies,” said Director of Online Marketing and Operations Vick Tran. “We’ve also adapted to an in-house consignment program that offers us the ability to expand our product offering and gives new brands a chance to sell on our site to see how our customers respond to it.”

80’s Purple carries a roster of fashion-forward designers and brands, including Maxine Dillon, Anzevino and Florence and House of Cassette.

Online retailers are also utilizing social-networking tools to promote their holiday sales and offerings. According to Shop.org’s Oct. 22 “eHoliday Study” conducted by BIGresearch, 47.1 percent of retailers surveyed will be increasing their use of social media this holiday season. Retailers will look to sites such as Facebook and Twitter to promote their goods.

“We’re involved more with social media and new media platforms, such as Kaboodle.com, as users are moving to more interactive Web sites in search of clothing and style,” Tran said.

Costa Mesa, Calif.–based online specialty boutique Pink Mascara (www.pinkmascara.com) kept an eye on its inventory levels for the holidays, and co-owner and buyer Renee McCracken said she believes that e-tailers are better prepared on what to expect for the upcoming season.

“There will definitely be holiday discounts. However, the duration and depth of the sales will not be as aggressive,” Mc- Cracken said. “Retailers have curtailed the quantity of available inventory this year, and we suggest that if there is a ’must have’ item the consumer wants, order it early, as most retailers/e-tailers have a much lower inventory than previous years.”

Pink Mascara carries contemporary labels such as Current/Elliott, Elizabeth and James, Black Halo and Twelfth Street by Cynthia Vincent.

Pink Mascara is also enticing customers on a budget with more special promotions and incentives, such as gifts with purchase.

“We have looked for higher-value gifts at a lower price point and bought with designers that are willing to partner up with gift-with-purchase or two-for-one sales,” McCracken said.