Private Label Fashion Out of Style

While private label packaged goods are steadily stealing market share from CPG’s, private label fashions are losing momentum. Stores like JC Penny and Macy’s are scaling back their private label fashion lines in favor of more well known brands. The proliferation of sales and markdowns offered by retailers during the fall and holiday season, have made pricier brands more affordable. Private label is at a disadvantage in the fashion business because of a more generic quality of style. In fashion, differentiation is key and private label just can’t compete.

In an article for Reuters India, Christine Chen, an analyst for Needham & Co said, “Most department store private label brands don’t offer anything too exciting on a fashion level.” Chen cited Bloomingdale’s Aqua line as an exception.  What could this mean for the fashion retail experience? How could increased interest in lower priced designer brands be maximized in the store environment while maintaining the cache of the brand? 

Walmart is even getting in on the branded fashion surge, increasing promotion of girl’s denim brand l.e.i. and surf-inspired apparel line Ocean Pacific (OP). Discounters like Walmart and Target should consider highlighting these high-style, low cost brands by taking a cue from department store configurations. The store-inside-the-store concept could work well inside a big box to draw attention to designer labels and relieve big box fatigue.