Some thoughts on why #Covetique has #closed I couldn’t believe it...
Some thoughts on why #Covetique has #closed I couldn’t believe it today when I heard from my best friend that Covetique had closed. I actually told her that she was wrong - until I went to the site and saw for myself. I know that officially they would be considered a competitor of mine but to be honest I understand the blood, sweat and tears that it takes to make a business work and I just feel really sad for them. The reasons behind their closure have yet to be announced but having my own re-sale boutique TIMPANYS and also recently opening up online I would hazard a guess at some of them…..The margins on resale are a lot lower than they are on new goods, you’re looking at about 30 - 40% for an online seller. Out of this you have to pay rent, rates, wages, photography, postage, packaging and returns. You might say that every online clothes company experiences the same costs but in actual fact a site like netaporter sells say 50 of the same dresses by victoriabeckham whereas a re-sale site is selling lots of individual items. You still need a model and a photographer whether you are selling one or fifty dresses. It is therefore a greater cost in percentage terms per item.
Returns are also a huge cost to companies. Last year for example ASOS had an approximate returns rate of 40% on clothes (it is for this reason that whilst I sell clothes in my bricks and mortar boutique I decided to only sell accessories online - it is harder for a bag not to ‘fit’ than a dress). They mentioned on their message that they were ‘unable to meet the quality level of service that customers rightly demanded’. I can understand this. They were re-selling top quality brands for very wealthy clients. Clients such as these are by their nature more demanding. They receive the highest quality of service in every aspect of their life. For example I have collected Chanel bags from a customer’s house at 10pm at night - despite living 2 hours away from her and woken up at 5am to discuss matters with a foreign client. It is my business and I do not resent this, but finding staff to deal with this without paying an extortionate wage is very very difficult…..At the end of the day you have to weigh up the long hours you are putting in with the money and job satisfaction you are getting out. If it is not a balanced equation then you need to close the door. I admire them for doing this. When you love something and have poured your time and effort into it sometimes it is tempting to keep on trying until it dwindles and dies. Covetique went out with a bang, they were a wonderful whirl-wind and I will miss browsing their rails.
What are your thoughts?