Posted on 06/30/2010
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By Paul Pannone
Very early indications suggest that the men’s formal wear category will continue to erode into nothingness, as the 2011 selling season approaches. The information comes from retailers, suppliers and advertising sources that say the glamour days of a guy in a tux are gone forever.
In 2009 heading into 2010 we announced there would be no new styles for the 2010 season. It was around this time that interviews conducted with buyers of the formal wear business gave strong indications that all buying and support of new items would cease due to the collapse of the economy. In addition, many buyers said they would no longer support new fashion products that were not properly supported by an advertising and marketing campaign from the manufacturer.
The article that was widely read by trade members and more impactfully by consumers, caused a stir, especially to wedding couples that were to be wed this year, in 2010. Concerned brides wanting new styling, fashion or at least fresh formal wear for their husband-to-be were unhappy to learn they would probably get garments that were from one-to-ten years old.
Some manufacturers tried to positively slant the bad news by saying, “True, people (stores) didn’t put in anything new but many did replace worn sizes in existing styles.” Objections within the tuxedo business that exposed the information to brides was heard loud and clear but a year later, it is doubtful that anything will change.
At the store level, rental prices of $150-200 to rent a tuxedo were hard to swallow, given the poor quality and age of goods being offered to consumers. Concerned customers that reacted to the information asked what alternatives were possible and concluded they would probably purchase their groom’s outfits, rather than risk items that were old or outdated.
As a result, eWedNews surveyed the formal wear business by asking stores how their peak season was. Responses were mainly asked to be kept off the record. In the northwest one formal wear operator reports, “Our industry has changed so much it hardly exists. I miss it! Now After Six drops. Hardly anyone left to lose. We keep struggling and making it. Our prom season was fairly good. Most schools increased numbers or stayed close to the previous year. Our average sale increased by $7 - very nice! Men's Wearhouse changing their pricing really helped us with this. Our wedding registrations are down and the weddings are smaller. We have moved a bit into dry cleaning school uniforms and hope we can recoup a few dollars that way.”
In the south a major operator reports, “Almost without exception every school was off in prom units. Granted, only 3% to 5% is not the proverbial "train wreck" so the significance is not in the how much but the fact that ALL were off regardless of the area or whether the units were wholesale or retail. We track about 135 individual schools with data going back to 1994. Several large 6-A public schools moved their prom events from Saturday night to Thursday night confirming our fears that proms are just not as important to kids as they used to be for whatever reason.
Units for weddings can be deceiving since we're seeing some brides and grooms choose only partial units such as coat only or accessories only further indicating that formalwear and proper dress is just not as high on the list as it once was.
Generally we, as a company, feel big enough or maybe savvy enough to stand toe-to-toe with any of our competitors on a rental / wholesale basis but it's a different matter to combat the loss of units due to shifts in trends. The change in trend is an enemy that we feel is far too big to combat on our own but it is not so much that we're inept or have no ideas we just don't have the answer yet.
Strangely, the good news is that college "Greek" formal events continue to rise significantly in unit count per event and in number of events.”
In the southwest and west coast operators report declining interest in traditional formal wear, especially the scratchy wool feel of hot, bullet-proof products. Operators say a highly Latino population now demands new, updated looks that speak directly to them and identifies their culture in a new, free and easy fashion.
In the north east, one store reports, “We went toe to toe with Men’s Wearhouse with an opening price of $45.00 and I can tell you we saw more budget minded customers this year than ever before. Calvin Klein and Ralph Lauren were a yawn at best the label didn’t matter; the style and fabric did. Stale management has eroded a proper conception of how to service this industry; (driven) only by profit theories that affect the store’s ability to service customers and get what they want to boost sales during the height of the season.”
Other northeast operators report, “Peak season was a mixed bag. Prom business held its own, both in numbers and price. The kids still went to the prom and were for the most part willing to spend their money (or their parents even more easily). Plus the parents were usually willing to spend to make their son happy.
Wedding business remains soft and a continuous struggle. While the number of weddings has not gone done significantly, the wedding parties have gotten smaller. Remember, just one less usher per party can account for up to 15% of business (based on a wedding party of 6).
I will say that I do not believe the lack of new styles has anything to do with the numbers. I have to reiterate that we do not need to reinvent the wheel, just go back to what works, meaning bow ties to show a tuxedo is special; this year the kids leaned more toward bows than at anytime in the past 5+ seasons. Let's give the award shows credit for that! Hmm, should we forget the print advertising and let's just pay the stars to wear what we want them to?
And, and this is a big and (which you heard me say before.......produce the styles and fabrics that were successful in the past. The reason we still rent the Vails, Hudsons, Tallias, Estates of the world is that they work. Stop trying to force-feed us with CRAP we don't want and know we don't need. Reintroduce those that work. We are not Apple Computer that needs the latest gadget (or gimmick) every six months. Sometimes, we really do know more than the experts (manufacturers?). I will not buy just for the sake of buying.”
The northeast remains the most affected area where sales and general decline in the use of formal wear prohibits suppliers from finding an adequate sales person to travel the region. Reports say credit remains a core issue of why most stores cannot purchase new products.
Recently, discussions with three-of-four suppliers are again promising innovation at the product level. But to date, none have given any solid plan of reaching consumers and creating demand for any new items sold. None will step up and say they will commit hard dollars in advertising to support new product launches; they simply dismiss traditional advertising as “ineffective”. Yet, no supplier will admit they haven't a clue to how new technology could help create interest, demand and finally sales. Again, none will commit dollars towards updating their outdated systems, thus killing sales from store owners and never reaching the general public with any sort of significance.
The catch-22 was discussed this week with major advertisers and onlookers that say they have not had any type of support from the men’s formal wear category. Some say they’ve offered special rates, additional editorial support and promotional opportunities. “We try to do whatever we can for them but most never even get back to us; some string us along past deadline that we now call dead ends when dealing with tuxedo people,” it is reported. Most say they have given up on the tuxedo industry and plan to turn their back, as it withers away.
eWedNews will continue to monitor the death of the tuxedo, interviewing suppliers that are felt to be at the brink of bankruptcy.
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