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The Abercrombie Situation

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Comments

  • Registered Users, Registered Users 2, Paid Member Posts: 13,879 ✭✭✭✭kowloon


    A lot of designer brands are just that, 'brands'. They're essentially large marketing departments. Some have their own retail chains, others don't, but what most of them have in common is a total lack of manufacturing facilities.
    They sub-contract their production to places where the labour is cheap, it's not unique to clothing.
    An interesting result of this is that a lot of the knock offs can be made using the same materials, patterns and by the same people.

    The marketing, the sky high rental on high street retail space, the staff who get paid more than the people making the items they're selling (because wages in the west are so high), these comprise most of the cost.


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