Retail brands must earn their customers respect, which is not easily given

BY STEVEN KASZAB

One can tell how the economy is doing by watching the progress of celebrity brands. Nike has been floundering for years now. Retail outlets opened by celebrities often fail within three years, or less. While celebrities are wealthy, they also count their nickels and dimes, so if sales drop, so do the number of stores they open. Celebrities NDA can only control so much of their indiscretions, and therefore retailers having a business relationship with a celebrity can be exceedingly challenging.

“The large store chains and department stores once viewed celebrity bands as an attraction that drew customers into the stores, but not anymore.”

The retail ombudsman of America (CFPB) reports that after careful consideration of the top 500 celebrity brands in America, they found over 50% to be substandard in wear, quality and well overpriced. That is a damaging result to brands everywhere

The banks are becoming more standoffish about investing in these brands for fear of celebrity scandals or spend thrift attitudes that could bring a personality down and bankrupt. The large store chains and department stores once viewed celebrity bands as an attraction that drew customers into the stores, but not anymore. Department stores charge a substantial tariff upon these brands per square foot of space used to merchandise their products. There is a chance the products will sell at full price before being discounted.

I once spoke to the owner of a clothing brand who sold their blouses for a low of $55.00 to a high of $125.00 each. It landed in Vancouver for $2.99 each, so even if discounted the retailer made a bundle of cash. Expectations are high when someone buys a celebrity brand. Is the quality there? Will it last 3-5 washings? Will the fabric dye run? Never a guarantee, but always an exciting experience buying and showing off a celebrity branded shoe, clothing, or item.

Celebrities can face many challenges, as many may act badly. Men and women who have achieved much, expect much from those who work for them, and even their fans. Abuse, misunderstood expectations can result in disaster for a celebrity and their company brand. Retails are thinking about that all the time and how it would affect their investment in the brand of a celebrity. Consumers have begun to realize celebrity as a brand is not as cherished as it once was.

With consumers determined intentions of purchasing quality over superficiality, brands must evolve and quickly. Consumers have enough difficulty paying for necessities these days, so a $350-600 sneaker will often be out of touch.

Perhaps consumers will center their desires upon more meaningful pursuits, enquiries and items to own. Who knows?