Is J.C. Penney soon to close for good?

J.C. Penney, founded in 1902, was once a powerhouse department store that was home to women and men fashion, home appliances, bedding, auto center, and even ammunition and guns. However, within the last decade J.C. Penney has been fallen into a state of ruin, as it faces branding and marketing problems.

The Texas-based department store was a victim of bad guidance on behalf of their CEO. In November 2011, Ron Johnson, former retail boss at Apple and Vice President at Target, was named CEO of J.C. Penney. Once recognized as a retail genius, Johnson is known predominately known for the demise of J.C. Penney due to his new strategies implemented through his time.

Within his short amount of time at J.C. Penney, Johnson got rid of coupons, launched a new pricing strategy, and even created a new logo, which was the third one in three years. Though Johnson thought he was doing more good than damage, his advice and governance was too similar to that of Apple’s.

Many critics claim that although Johnson’s new strategies were great, it did not fit the criteria needed for a department store. According to the Business Insider, Johnson even introduced his new plan in an “Apple-style conference”.

Consequently, J.C. Penney results were detrimental. Sales were horrible, claiming that the company lost $1.3 billion in 2013, which caused thousands to be fired, from retail associates to high CEO corporate employees. It also caused over a thousand store locations to be closed.

Once the company saw that Johnson’s strategies were not working, the company switched to “everyday value”. Margins, was and still is one of J.C. Penney’s biggest problems they face today. According to CNBC, “the back-and-forth between coupons and every day low price (EDLP), the company could not catch a break as comparable store sales dipped below 20 percent.” With horrible margins and an overstock of clothes, J.C. Penney had no choice but to put everything back on sale and were victims of repeat clearances, thus lowering the name of their brand. Although, consumers love a bargain, when a company is always on sale, it is seen as a cheap brand and undesirable.

Due to margins and low cash flow, it was no surprise that costs were beginning to become a problem for J.C. Penney. Without making a significant change to store numbers and their limited utility/maintenance account, the customer service in J.C. Penney also took a turn for the worst. A Huffington Post article shows the J.C. Penney department store not looking up to par with display cases disorganized or not full of merchandise, little to no assistance nearby, and clothing on the floor. The visual presentation was not attractive, thus not attracting any customers as well. Personally, seeing messy racks and not finding any retail associates around, tell a lot about how a company wants to be represented, and leaves a mental image in my head before entering the location ever again.

Although analysts say that J.C. Penney is not completely ruined due to the latest earning release, they still have a long way to go to get back to the prime department store that they once were.

http://www.fastcompany.com/3008059/ron-johnsons-5-key-mistakes-jc-penney-his-own-words

http://www.cnbc.com/id/100627721

http://www.huffingtonpost.com/2014/02/19/jcpenney-photos_n_4810896.html

The Man. The Myth. The Legend: Giorgio Armani

Giorgio Armani has made his mark in the fashion world, and is now taking over the contemporary art world. Giorgio Armani is famously known for his "ready-to-wear" collection, but also his expensive fashion lines that have equally been made accessible to the public. Armani is notorious for making an extravagant impression upon both the public, and his celebrities friends likewise. How many collections does a fashion designer have to make a museum of their own? Well, with collections of haute couture, ready-to-wear, shoes, accessories, leather goods, cosmetics and now home interiors, it is no surprise that Armani has made the grand move of making his very own museum dedicated to his works of art, which will now literally be "works of art." With the creation of the Silos Museum, his legacy will now physically live forever. The museum represents a living art show, and most importantly to the fashion industry, a living fashion show. His fans will now be capable of visiting his museum to indulge themselves in Armani history and arts, that may not have been accessible to him if it were not for the museum. Emporio party was Armani's bridge to the future, but the Silos museum is Armani's bridge to his legacy. The Silos museum also adds to Armani's mysterious, yet strike of genius, that characterizes him and his brand. The creation of this museum is breaking all the rules, something that he is known for doing and only further's his legacy of thinking outside the box, when it comes to his events. This adds to Armani's popularity and "cool" factor, upping his fashion marketing brilliance to an all time max, as he is one of the few fashion designers that have the honor of having a museum solely dedicated to them. In true Armani fashion, the future is always a work in progress. For the future, Armani can utilize his museum for future fashion show events, and even use it as a location to establish or highlight some of his newest fashions. According to the Silos Museum website, the exhibition tells a story and shows the style divided by themes that inspire and continue to inspire to creative work of Armani. In order to create public buzz, something that Armani has conquered and established precedent for, I would not hold it against Armani if they would use the museum to show some new unrevealed pieces, causing a frenzy. The Armani brand is truly iconic. With their exceptional lines that offer comfort to both the public and celebrities alike, and their meticulous yet fun marketing strategies, I do not see the end of Armani, nor his legacy to end soon.

http://www.architecturaldigest.com/story/armani-silos-museum-opens-in-milan

http://gotham-magazine.com/two-new-giorgio-armani-lines

http://www.wmagazine.com/culture/2015/08/giorgio-armani-museum/

With almost 50 years in the business, Ralph Lauren is still incorporating itself into today’s society. As said by Mr. Lauren, himself, “Fashion is about changes, youth, aspirations, about what’s going on around the world – a blend of all things happening.” Ralph Lauren Corporation has taken accountability of their founder’s words and has done exactly that.

Although Ralph Lauren is under new supervision, their sales have continued to increase. Mr. Ralph Lauren stepped down from his role in November 2015, and appointed Stefan Larsson as the new Chief Executive. Larsson has an extensive knowledge of fashion and the retail business, making him a force to be reckoned with. Former H&M executive is credited to reviving Old Navy from the dead and has a proven record of creating company growth and profits. The appointment of an experienced fashion executive, as CEO would be a sign that Ralph Lauren may be a part of the growing retail trend.

2016 so far has been a major year for Ralph Lauren attracting millennials. It is obvious that social media platforms is the way to reach young consumers, especially if their clothing are featured in prominent celebrities pages. In the beginning of the year, a custom Ralph Lauren bomber jacket was made and sent to Kim Kardashian and Kanye West’s newborn Saint. There have also been rumors that Drake is going to partner with Ralph Lauren for his OVO line. If this were to happen, this would definitely put millennials on board with Ralph Lauren, and gain the brand ultimate recognition.

The fashion brand is expected to make appearances in worldwide events, as well as on the movie screens. Ralph Lauren is an official partner of the worldwide-anticipated 2016 Summer Olympics. This partnership has become a small tradition within the Olympics, and is surely to bring a lot of attention to the fashion brand. The very talked about movie, Zoolander 2 has also made some mentions of Ralph Lauren. In a cover ad of US Esquire, Ben Stiller, who plays Zoolander is wearing Ralph Lauren’s Purple Label 2016. In the Vogue Zoolander cover ad, Penelope Cruz is wearing the infamous “Blue Steel” dress alongside Ben Stiller.

http://www.nytimes.com/2015/09/30/business/ralph-lauren-creator-of-fashion-empire-steps-down-as-ceo.html?_r=0"

http://www.highsnobiety.com/2016/02/05/ovo-2016-spring

http://www.teamusashop.com">

Straying Away

Haute couture is known for their strict rules and procedures. From only having two dozens designers who are allowed to use the label haute couture, to regulating how products are made, only being handmade and in Paris – it is one of the hardest and most exclusive groups to be a part of. However, even within these severe regulations, without change there is no way that a house or brand can simply survive.

I do not believe that modern couture fashion shows are consistent with their legacies. The truth is haute couture was created as a necessity “for high-class Parisians in the 19th century”, according to Lisa Armstrong’s article “Inside the rarefied world of haute couture shopping in the Telegraph. However, their consumers have been opening to a new crop of clients – American working women. Not only is haute couture available to different women, but haute couture fashion shows as well. Typically fashion shows were only meant for billionaires and the top elite.

Probably the most important aspect of haute couture is the creation of the fashion pieces. With each item, it is carefully and precisely constructed, to ensure that the piece is completely flawless and spectacular. As said in the Wall Street Journal video “Haute Couture: Working Women Entering Fashion Pinnacle”, part of the experience is to go in for fittings – especially for the price the consumer is paying. However, within the haute couture culture, fittings may be a thing of the past. For example, Dolce & Gabbana now use a wooden mannequin with their frequent customers and their specific measurements. With the new mannequins, the customer is no longer required to come and get personally fitted, thus losing part of the haute couture experience.

Like Ungaro and Ferragamo, haute couture constantly has to add licenses or add new unconventional items to their brand in order to stay interesting and relevant. Due to their continuing loss of profits, they have opened their minds to licensing and even opened up to using technology to create an un-traditional haute couture.

http://www.thedailybeast.com/articles/2014/01/27/the-new-queens-of-haute-couture.html

http://www.metropolismag.com/Point-of-View/May-2014/Its-Electric-Wearable-Tech-Goes-Haute-Couture/