Friday, 05 Aug 2016 11:20 GMT

A very profitable curse

“May you live in interesting times.” This is ancient Chinese curse is a very apt one for the age we live in, as no sooner have you got to grips with one set of technologies and the business models they spawn, then another young upstart fashion comes along to sweep away all in its path.

“May you live in interesting times.” This is ancient Chinese curse is a very apt one for the age we live in, as no sooner have you got to grips with one set of technologies and the business models they spawn, then another young upstart fashion comes along to sweep away all in its path.

Online retailing is chief among these culprits, with changes in this fast-moving sector having profound effects on industry’s such as ours. The closure of highs-street and small town businesses and the move to an online-only model for a huge number of start-up businesses has meant a significant loss of income for many sign-makers since 2000. Some of this has been replaced by the boom in demand for more expensive and high-quality signage for physical shops, restaurants, and fashion retail to retain their customers and set themselves out from the crowd. But inevitably if a shop is online-only rather than physical it means that it does not need a physical presence that will generate signage business, or does it?

Online retailing is chief among these culprits, with changes in this fast-moving sector having profound effects on industry’s such as ours”

Bonobos is a fashion retail chain based in the USA that has seen rapid growth through an innovative model that sees it sell its brands and designs online only, but still provide physical ‘shops’ where you can see the clothing and make sure of the right fit. It means each store does not need its own stock, distribution networks are centralised and very streamlined, and you do not need to employ more than a handful of floor staff. Just a few other notable examples of this hybrid system are shoe firms Paul Evans and Jack Erwin in New York, and the Zalora chain in Asia.

It is a business model that is already catching on the UK, with a growing number of London-based start-ups testing the model with both permanent locations and promotional pop-up stores. And if it catches hold firmly here, and many pundits think it will, then it could be very good news for the sign industry as the online entrepreneur goes in search of real-world branding.
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