Cool Sells

Trendsetter Ben Sherman buttons down its retail identity


 

From August 2008

By Len Lewis

 Sponsored by
                     

It was the swinging ’60s in London, a time when “mods” and “rockers” shook up the establishment, British rock ruled the airwaves from Liverpool to Leeds and a groovy place called Carnaby Street became the Mecca of the fashion world.

In the midst of this cultural revolution another icon — Ben Sherman — was born. The British shirt-maker’s button-down Oxfords, skinny ties and slim-fitting suits became a fashion staple for young musicians and the “in crowd” on both sides of the Pond.

But the company, whose origins can be traced to the seaside town of Brighton in 1963, is moving to the beat of a new generation with a broader product line and a global reach. “We’ve changed from a shirt brand to a lifestyle brand with international expansion — and we are metamorphosing into a retailer,” CEO Miles Gray recently told the World Retail Congress in Barcelona.

Paul McAdam, president of the North American division, is just as enthusiastic. “These are exciting times,” he says. “We’re doing very well in the U.S. and, after a challenging couple of years, we’re ready to expand globally.”

The expansion is taking two primary forms: into the bricks-and-mortar retail business and a diversification of the product line to include women’s and children’s apparel and accessories.

Wholesaling still represents 90 percent of business in the U.K. and about 70 percent of stateside revenues, McAdam says, but the company is focusing on the development of as many as 250 stores by 2012 (Ben Sherman currently operates about 25 stores worldwide).

Much of the proposed expansion will take place in Asia, with the first unit in China scheduled to open next year. “We have three very good partners in China, Japan and Korea and we expect to open 100 to 200 stores in the Far East alone over the next three years,” McAdam says.

Depending on the country, Ben Sherman is working with franchise partners, distributors, agents or licensees. “We have been fortunate to align ourselves with strong partners in that region that are capable of opening standalone stores,” he says, “and they have significant marketing dollars to allocate toward the brand.”


Expanding the brand

Ben Sherman currently has stores in Las Vegas, Los Angeles, New York and San Francisco, and another 35 to 50 stores may be in the offing. The company is looking to open in Boston, Chicago and Miami this year. Ideal size for the stores, which will be a mix of free-standing and mall locations, is 3,500 sq. ft., McAdam says.

The company also is expanding the brand through strong long-term relationships with retailers like Macy’s, Nordstrom and about 8,000 specialty stores in the United States.

Eventually, “I’d like to see sales break down as 30 to 35 percent in retail, 30 to 35 percent wholesale and the remainder from our licensed partners for product development, sales and marketing in categories like accessories, suits, dress shirts and eyewear,” McAdam says.

This expansion is being bolstered by a broader collection which, for the past several years, has included women’s and children’s apparel in addition to more menswear offerings.

“We didn’t want to be overly reliant on one product category like shirts, so we decided it was time to diversify the range,” McAdam says. “And because we’re opening a lot of retail stores, we felt it was necessary to have not only a credible men’s offering, but also women’s, a solid footwear business along with some great accessories” like leather goods, hats, watches, eyewear and neckwear.”

All new stores will carry men’s and women’s clothing, but inclusion of the children’s line “will depend on individual markets and whether there is space,” he says.

Going global
Building the brand doesn’t necessarily mean tailoring stores or merchandise to individual marketing areas, however. “All of our design work and sourcing comes out of the U.K.” McAdam says, “but we are trying to bring out a global range with global consistency, not just chase trends. We probably did three or four years ago and didn’t stay true to what the brand should represent. Now, we have a very strong viewpoint and it’s been working well for us for the past 24 months.”

The result is that Ben Sherman’s style, which McAdam terms “British with an edge” is as distinctive now as it was 40 years ago. “I think that if you look at our product offering, you’ll see that we are bringing relevant fashion-forward pieces to the U.S. market at very competitive prices.”

Men’s shirts retail for between $79 and $129. “I think we’re mid-priced,” he says, and “that goes for the women’s line, as well. In fact, we’re pretty consistent with pricing across the board.”

What doesn’t seem to change for Ben Sherman is a style that still catches the attention of a relatively young customer base. “I think the sweet spot is 18- to 30-year olds, but we generally attract consumers 20 to 40 years of age,” McAdam says.

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