Why a Women’s Resale Clothing Franchise?
As a professional franchise consultant, I like to keep my finger on the pulse of current marketing trends. Whenever I can, I attempt to get feedback from real people about their buying habits that might give me some insight into current trends of the franchising industry. I was looking for some feedback about a franchise I was curious about, a women’s resale clothing franchise.
Every Tuesday morning I start my work day as many small business people do, by attending a business networking meeting at a local restaurant. This particular group is predominantly professional women in many fields. Recently, I asked the group to give me feedback on whether or not they would shop at a resale clothing franchise. OVERWHELMINGLY the response was “YES”, they do or would shop at resale clothing stores.
These are professional women in the Washington DC suburban market, a very economically stressful, “keep up with the Jones’s” environment.
Yet, the answer was overwhelmingly “yes”.
As we all know, this market is flooded with high fashion women’s clothes retailers. Quality brands like Coach, Michael Kors, J.Crew, Tory Burch, Kate Spade and Louis Vuitton are represented in virtually every corner of the shopping world. According to market research, this is a vibrant, $42 billion dollar industry. The women’s high fashion market is steaming!
So, if my not very scientific survey is even close to representative and the market is saturated with high fashion quality retailers, my next assumption is why wouldn’t a high fashion women’s resale clothing franchise be an excellent business model for this area…or any area for that matter? I went searching and found NTY Brands. (NTY, as in New To You).
Introducing Clothes Mentor: Top Women’s Clothing Franchise Opportunity
NTY offers 5 different women’s resale clothing franchise concepts, but the one that really attracted me was the Clothes Mentor franchise, a reseller of women’s high fashion brands.
The brand names I am talking about live in expensive real estate, the large suburban Malls and pricey haute couture urban corners. Certainly these are a shopper’s paradise of selection and assortment. But for retailers in these centers the margins are tightened with outrageous real estate costs, exorbitant overhead and excessive competition in these select centers. In this game of high risk and high reward retailers place their bets on high revenues and volume to drive bottom line profitability. Gross Profits of only 20-30% are standard.
At Clothes Mentor selective purchasing programs and site selection are the keys to high gross profits and low overhead. NTY helps new Clothes Mentor franchisees engage in a precise process to determine ideal locations along the same traffic patterns that the Mall shoppers are traveling on. However, Clothes Mentor offers a much lower cost per square foot keeping the real estate costs in line.
Clothes Mentor owners are trained to use proprietary technology to identify the highest quality in popular local clothing lines. CM then pays local patrons cash for their lightly used garments to stock their inventories.
Clothes Mentor customers craft a diverse and dynamic marketplace. NTY VP of Franchising, James Wollman, described the consumer activity in the store as broken out into 3rds. About a third only sell to the store, another third only buy from the store and the final third enthusiastically buy and sell.
The end result is a retailers dream: high volumes, low overhead with typical gross margins as high as 64%.
The consumer experience is similar to any high end retail experience. Clothes Mentor provides great selection in brands they are already buying, but at prices up to 70% off Mall pricing. In addition, Clothes Mentor shops are NOT consignment shops with dingy lighting, sloppy merchandising and low volumes. CM offers brightly lit, modernly and professionally merchandized stores.
The executive leaders at Clothes Mentor are retail pros. NTY Franchising President, Ron Olsen, boasts a long and successful career. Beginning in retail with Dayton–Hudson Corporation, owners of Target and Marshall Fields to name a couple. Ultimately, in resale franchising with successful brands such as Once Upon A Child, Plato’s Closet, Play It Again Sports and Music Go Round. Today Clothes Mentor has grown to over 140 units and earned a #210 ranking in the Entrepreneur Top 500 franchises in America.
From a Franchise Consultant’s perspective, Clothes Mentor offers everything a new franchisee could ask for:
- a well-known brand in a hot market
- professional training and support
- state of the industry technology
- great unit level economics
- the lowest franchise fees in the industry.
I Rate Clothes Mentor a CHOICE PICK.
As an independent franchise consultant, I engage in franchise development with over 300 growing franchises. I look for specific attributes that are similar among industry leaders and successful franchises overall. The Clothes Mentor resale clothing franchise has them all.