California Apparel News quoted Retail Group Co-Leader Ron Friedman in an article about how the demise of Dressbarn underscores the need for new manufacturing business models.
California Apparel News
By Andrew Asch
Going digital is a good idea, said Ron Friedman, a partner at Marcum LLP, a retail consulting and accounting firm, but it has pitfalls. Successful direct-to-consumer ventures can make a lot of money because they keep their wholesale gross profits and their retail gross profits.
But the direct-to-consumer retailers that realize the most success are typically the ones with well-known brand names or who create brand equity through heavy marketing campaigns. For those who don’t have wide brand-name recognition, it might be hard to carve out a niche.