By Andria Cheng
Trying to cut back on what you spend for your closet? How about
loading up on more pink pieces?
It turns out that the color of what you wear matters when it
comes to cost and how much retailers can make, according to a study
by retail inventory management firm Stitch Labs.
The study, compiled from data of 2.5 million pieces of clothing
or accessories from 2,100 retailers across the country over 12
months, shows that pink commanded an average final selling price of
$20 per item, compared with $35 for navy. Other colors such as
purple and yellow also sold for less than shades including brown
and gray.
On average, retailers got $26 apiece for chromatic colors,
compared with $30 for neutral shades like black and white.
Among total units sold, black outsold every other color,
including No. 2 white, by 2.4 times. Blue, often cited as people's
favorite color, came in third place. Overall, neutral tones made up
63% of all units sold, compared with 37% for brights, according to
Stitch Labs.
"If you want to save money, buy brighter clothes," said Bridge
Mellichamp, a data analyst at the firm who compiled the study. As a
retailer, "anything I would make I would include blue. Black and
white are sure thing. Businesses should think about whether to sell
yellow."
To be sure, the data, while providing an overall picture, aren't
scientific. They span a gamut of fashion for men, women and
children and include categories from jackets and dresses to
accessories like scarves and earrings. It also doesn't explain why
black doesn't command the highest selling price per unit if it
outsells every other color, and how much retailers are at fault
because they order too much of a certain color.
"Colors are going to vary by apparel," said Barbara Kahn, a
professor of marketing at The Wharton School and director of its
Jay H. Baker Retailing Center. "There are a lot more suits (which
cost more) that are made in navy and brown than there are pink
suits. Pink is a blouse or a scarf and could be a little girl's
clothes, which cost less. You really have to go underneath the data
to figure out what's going on."
Still, despite neutrals outpacing brights in unit sales,
industry experts say color remains crucial for retailers.
"What you need in fashion is new," Ms. Kahn said. "Bright drives
people to stores. It works, but that doesn't mean people just go
out to buy all the colors. They may buy one or two and they go on
to buy the basics. It takes a certain personality to wear color.
It's much easier to wear neutral. It's less risky."
In the fickle and cyclical world of fashion, the bright-colored
story seems to be fading out. For instance, Gap Inc. (GPS), which
unveiled a "Be Bright" campaign in 2012, now features clothing with
neutral tones on its website. Color firm Pantone Inc., whose
database has 2,100 shades to help fashion designers determine the
next new hot shade, forecast that "understated brights, pale
pastels and nature-like neutrals" would take center stage in stores
come spring 2014.
"It's very important to have color," said Todd Blumenthal, an
adjunct professor in fashion merchandising management at Fashion
Institute of Technology and a 30-year industry veteran at companies
including Nike Inc. (NKE), Aeropostale Inc. (ARO) and Victoria's
Secret LB. "Color does sell. It's the thing that has consumers
noticing the change season over season. It gives people the
emotional connection to buy something new. Even with neutrals,
there are shifts. To be trend right in your new color allows you to
sell more neutrals in your assortment."
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