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I appreciate the discussion, but I don't really see the evidence in the numbers for these companies over the last decade or so, maybe it appears on a 20-30 year

I appreciate the discussion, but I don't really see the evidence in the numbers for these companies over the last decade or so, maybe it appears on a 20-30 year timeframe. Their gross margins and SG&A haven't changed significantly, although they have for others like Columbia Sportswear. American Apparel, just to pick out one of your examples, was bankrupted with MiUSA. I'm wondering about the impact of ecommerce now though, especially higher return rates.

owenversteeg 5y ago
I'm not sure who you're finding data for, but most of these businesses are private and you have to look at other indicators. For LL Bean, for example, I was a loyal customer for years and paid close attention to their website, stores and social media. It was obvious when they dramatically cut the quality of their clothing and increased the gloss and marketing, to the point that an employee at a local store commented on it to me. You can't just cut quality and rest on your laurels, or the brand will slowly die (see American Apparel) - you have to cut quality and increase marketing spend, exploiting your former good name (see LL Bean - quality far down, but revenue way up.) I don't think that American Apparel was bankrupted by MiUSA - now that they've switched away from MiUSA they seem to be a shadow of their former self. In any case, from 1989 to 2014 was a solid run, and their 2014 demise was quickly followed by other MiUSA companies copying a similar model. I think MiUSA can work - Darn Tough, LA Apparel, New Balance, Allen Edmonds, etc. I think you may have a point with return rates - with lower markups you'd be more affected.