Flashback to your favorite 90s rap artists on television flashing their ice and cash flow. They were so cool. Some would make a fan out of their stash while others would “Make it Rain” to show us money wasn’t a thing. It wasn’t until recently that I realized that money was the decoy and money only has value because we give it just that. But money isn’t the end all, having equity and assets is truly where its at. The silly diamonds and fancy cars shining kept us blinded. I call them perishables because from the moment you buy a car or a nice piece of jewelry, the value decreases. Money as most of us know is a printed piece of paper. We then as humans give it value based on what society tries to influence us has the most value. This is why marketing and audience reach is more important than ever. As vain as it may sound, Instagram influencers’ are a great example. Before you judge, let me explain. Social media gives us a chance to have content and ideas shared around the world in an instant and have access to a huge audience. Instagram users who have actually taken time to understand the algorithm of the app are able to grow their following and increase their audience. The bigger the audience the more influence the person has. The more buzz created is exactly what businesses are looking for. Businesses capitalize on this so much that they even have business tools that help them to measure this “buzz”. So the value that is created is quantified and businesses partner with “influencers” for paid advertisements and marketing. Influencers are super valuable to brands that want to maximize profit, but they’re also the tastemakers that provide a relatable aspect that a lot of brands cannot provide on their own.
Money can never be the end all. When it gets to that point, the purpose of the business gets cloudy and the audience becomes disinterested. Many fashion retailer brands are shutting down business and leaving shopping in New York City a thing of the past. Once fashion became about profit margins and less about the art, I knew there would be a shift. I just didn’t ever think some of the most iconic retailers and brands would fall victim. Where did they go wrong? What could have been done differently? Everyone wants to go straight to the numbers but let’s be honest fashion is changing. There are so many amazing new brands that believe in the art of fashion that they’re willing to sacrifice to keep the integrity of their small brand making a big impact. Sometimes big brands get comfy and forget they too have to keep their market stimulated and not just with product and a household name.
Aside from e-commerce crushing brick and mortar, what other reason is there that retailers are suffering today?