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Interesting to reminisce about jeans. Wrangler was brand leader in the 1970s with Texas "regular fit" the no 1 jean. Jeans were on the decline later not helped by Boy George & trend away from jeans. 501s were an "anti-fit" cut to maximise yield on the production line but tight under the crutch, uncomfortable & many youngster had to belt them up to stay up.Then came Nick Kamen & the laudrette ad...the rest is history! It amuses me to see the prices charged for a 14.5 oz. Denim by some brands but in fashion as in cosmetics you're selling "confidence" to many people who get their self-worth from brands. Thank heavens for early adopters/trend setters/"fashion victims" who helped make my companies more profitable!
Appreciating some of the advice & recommendations now being shared. One of my properties not giving a return & with an Eviction order being challenged, legal costs mounting, rent not being paid & free legal aid for my "vulnerable pot-smoking tenant" share trading after a lifetime in business makes more sense. Ecclesiastes 3 v1-8 was the clincher for me.
Bad experience on rental income over last 15 months so have decided to sell one house in Nottingham as BH offers better returns, less hassle & minimal admin & servicing. Appreciate some of the analysis!
Still unclear how new site will be utilised but new job & volume projections seem to be reducing & wonder if Boo merely plan to import basic Ts in large volume & just print them up when orders in with only a small amount of production capacity for better quality clothing. Volume high end could be flown in to EMA Freeport from othe destinations such as Turkey & N.Africa.
Years ago I had footballs stitched in the Punjab. The British consumer wouldn't pay more than £5-£10 for a football kicked about in the garden so I went to India for cheaper labour costs. The majority of balls were stitched in a moden factory but some were stitched by children after school sitting communally in the village square. The Indian government asked us not to develop ball-stitching technology in the UK as the kids' earnings bought extras for the family & the government had millions of people looking for jobs. It's easy being an armchair socialist and opinionated but real life requires a balance. I'm not some greedy speculator...I give away nearly 20% of my income to good causes...but my conscience is clean on this one.
I found comments by "Ragtrade" helpful. Having worked in branded sports & jeanswear industries at director level I am heavily invested in Boohoo as although no longer in the target market I have been impressed by their precise targeting, general marketing & flair for design. I have ordered 4 of their products but the shoes were narrow-lasted ( oriental feet are smaller), cushioning minimal & skimpy. The coat used cheap basic materials made to a price so I am hoping, as an investor, that the sales increase is due to a mix of customer loyalty (returning customers) & new consumers. The new brands & more discerning consumers need much better quality.....I hope they can deliver it. Younger, body-beautiful people might be happy with a 90 gram T-shirt but older folks need a 220 gram T-shirt....basically better quality materials.
"Losing"...not "loosing" my friend!
Wouldn't it be lovely to read more reports with good English? Taught for 9 years after a lifetime in business & am saddened by level of abuse on social media & levels of illiteracy. The difference between "your" (possessive) & "you're" (you are) not understood..."called" not caled... "plonker" not plonka...."a lot" not alot...."attitude" not altitude...putting commas on plurals just as the old market traders did down Chapel Street when I was young. The Book of Proverbs says "Even a fool is deemed wise if he keeps his silence". That said there are some wise people on this site full of integrity.
Much expertise in Board re: Sourcing which is my main concern in short term. End of short runs, higher cost of goods & time gap before thicker margins of more upmarket BC1 middle England market come on board needs to be handled well. Time to consider a new umbrella name for Boohoo group as doesn't fit well with some of the brands acquired so short term problems significant but medium term prospects good. Don't be spooked by BBC, Guardian, PC Brigade & armchair socialists
Topped up yesterday, will hold till £4 then sell clearing +36% return which will suffice for me till convinced they have expertise in developing long established brands, understanding more complex consumers & getting better quality materials for middle-England market. I know from my time marketing brands at United Biscuits, Wrangler, Trebor, Mitre Sports International that growing brands needs the proper application of the total "Marketing & Promotional Mix" & the "7 Ps". Am not convinced they have the mangerial capacity to assimilate & develop all their new brands in the short timescale required. Some of the "brands" required are in the latter stages of their Product Life Cycle and their positioning & USP (if any) are highly questionable. Long term might be more risky than one thinks to hold so I will be spreading risk.
Have been in Boo 4 years & good move to enter BC1, "middle-England" markets where RSPs higher & margins potentially better but have concerns that they have overstretched already fragile supply lines & taken on too much. Hope they have recruited new teams who can build some tired brands they have acquired but as a retired marketer have some concerns.