Despite the pandemic and rising prices, the German fashion industry is optimistic at the Düsseldorf order days and many brands expect to exceed the pre-crisis level in the current year.
Order volume exceeds pre-crisis level
Despite the rising costs, the brands seem to be starting the current order season positively and are even expecting an increase in order volume for 2022. Rich & Royal and S.Oliver assume a level above the pre-crisis year 2019. S.Oliver sells the June collections and the outdoor area for autumn/winter.
“The numbers continue to rise. Due to the uniqueness of our collection and the good sales, the purchase volume is increasing again in many countries, including Germany and Austria,” said Rob Schalker, Managing Director of A fish Named Fred.
But the brands are also confident about pre-orders, which have fallen over the past two years due to Corona and are reporting a growing volume.
“In the last two years there has been a trend towards declining pre-orders, but we cannot confirm it at the moment. We’re growing!” said S.Oliver sales manager Daniel Schmidt. The decrease was mainly driven by the pandemic.
A fish named Fred plans that around 20 percent of the customers’ pre-order volume will be used as stock goods in order to be able to cover the needs during the season. According to the company, Rich & Royal relies on active merchandise management for its area partners with a share of 15 to 25 percent.
Düsseldorf remains the constant in the trade fair landscape
The Düsseldorf location has proven to be a constant, while other trade fairs like the one in Frankfurt have not taken place. Formats such as Supreme Men & Women, Fashion Rooms and numerous showrooms often offer many buyers the only opportunity to meet physically and order.
The Supreme Group is satisfied with its Düsseldorf event and is happy about a utilization at the pre-corona level. “We are optimistic about the Düsseldorf location, because it is being consolidated throughout the showroom scene, especially in Corona times,” said a spokeswoman.
The organizers of the Düsseldorf Order Days know that they will prove themselves as a location – in contrast to the trade fairs of the much-announced Frankfurt Fashion Week, which never took place. “We benefit from the fact that people are paying more attention to Düsseldorf again. That they notice that work is being done in Düsseldorf, the showrooms are being opened,” said Igedo Managing Director Ulrike Kähler. The format of the trade fair organizer Igedo Company Gallery Fashion was renamed Fashion Rooms for the new order season in order to open up spaces “for every possibility of creativity” with the concept.
But Düsseldorf has not been entirely spared from the pandemic either. The Fashion Rooms were held in just one large hall instead of two, meaning that two-thirds of the pre-Corona capacity was lacking in brands. In addition, the newly integrated “Core” order show, which focuses on manufactory brands, has been postponed to the summer date. The reason for this is, among other things, the Japanese and US brands represented there, which could not come.
From big to small: Rising prices everywhere
Inflation has spared no part of the industry. Large fashion retailers such as S.Oliver are raising prices, as is the sustainable label Má Hemp Wear, which makes casual wear from hemp.
The Hamburg label obtains its fabrics from China, which in addition to delivery problems also results in higher costs for container transport and raw materials. According to founder Ulrik Schiötz, Má Hemp Wear noticed the price increase at the European production sites even more clearly.
Schiötz, who spontaneously exhibited at the Fashion Rooms after the cancellation of Neonyt, was only able to present a third of his collection and therefore also brought the SS22 collection to the area again. The Greek label Mat Fashion, which offers a range of casual wear and formal wear for women in sizes 48 to 58, has recently increased its prices by 10 to 15 percent.
“Raw materials, energy costs, wages and even transport costs have risen sharply. We will moderately pass on the increased price. It is important for us that we can continue to invest, for that we need a certain margin. We will not compromise on quality and service,” says Rich & Royal.
A fish named Fred also had to raise its prices. The basic prices for shirts were increased from EUR 79.95 to EUR 89.95. According to founder Rob Schalker, the Dutch men’s brand has maintained its margins overall.
The Rottendorf fashion retailer S.Oliver has combined the further development of products with price adjustments. In the men’s area, for example, a T-shirt that had a retail price of EUR 9.99 a year and a half ago was switched to an organic cotton product, increasing the retail price to EUR 12.99. The product’s performance was even better than before, says Sales Director Daniel Schmidt. “We are clearly trying to keep our price points. We have one or the other shift, like many in the market. In the case of outerwear, we also consciously dare to go up a price group and expand the price range without leaving the existing one.”
Outerwear remains on course
The fashion suppliers also seem to be pulling in the same direction when it comes to product range alignment. Formal wear is slowly making a comeback, even if festivals and other occasions cannot yet be celebrated to the full. It’s getting tighter again. Blazers and waistcoats are in demand at A fish named Fred.
The Ahlers Group is also focusing on formalwear with its brands. With Pierre Cardin, the Herford-based clothing group breaks with the classic rules for silhouettes so that the looks can be used for different occasions. Patch pockets on jackets, cargo shapes on trousers and a variety of checks determine the look. With Baldessarini, the subject becomes more important again.
“With our premium brand Baldessarini, the customers are keen to experiment and everything that is not basic works great,” explains CEO Stella Ahlers. “Here, too, ready-made parts are gaining in importance again, albeit with innovative materials and new fits. It’s getting tighter again.”
But outerwear is very popular. At the same time, brands are expanding their product ranges even more and are also equipping themselves in the sporty area. The men’s retailer A fish named Fred is cooperating with the winter sports brand Sinner for ski helmets and ski goggles.
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But S.Oliver also sees a clear trend in the outerwear sector, “which has not been so extreme in recent years. This applies to sports as well as to wool. There are many material mix topics that are very well received,” said Schmidt. This area is currently generating double-digit growth at the Rottendorf fashion retailer.