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ABOUT THIS BLOG
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This blog will look at the winners and losers in the retail space. Who has the right strategy to capture consumer dollars? It also will look for trends in consumer spending and how that will impact the economy.
Cody Ross Goes From From High Finance To Chic Fashion
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CNBC Reporter
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Courtesy of Cody Ross |
Designer Cody Ross is one of those former hedge fund guys who got out of the financial business at just the right time and is now using that business acumen to help launch his true passion--design house Priestess.
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Courtesy of Cody Ross |
While Ross designs out of his West Village studio, most of the Priestess line is manufactured in China. Recently though Ross has moved some sourcing to Vietnam. The same rising labor costs that are increasing the price of business for toy manufacturers are also inflating prices for apparel companies and design houses.
Ross says that labor costs are causing 10-15 percent price inflation. While designers have the option of avoiding this increase by pushing sourcing to factories outside the major Chinese commercial hubs, Ross says he finds these cheaper alternative plants often lack the production knowhow and skill set.
More expensive clothing isn't just a story for high-ticket lines like Priestess. Consumers - expect pricier t-shirts, jackets and staples at your local Macy's [M
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Courtesy of Cody Ross |
One retail executive told me recently that clothing price inflation can actually be a good thing for stores. Why? That higher-ticket means the store gets to register a bigger, more impressive sale when it comes to monthly same store sales results.
Also, the current level of price inflation simply means a small bump up in ticket price. Consumers won't trade down to cheaper stores when prices jump a few dollars. It is an entirely different story when the hike is significant (greater than 10-15 percent.) An interesting counterintuitive perspective.
Anyhow, check out Cody Ross' site at: www.priestessnyc.com. We'll be interested in following how his career develops.
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