As we gladly turn the page on the many lockdowns and curfews, summer is already bringing its share of challenges. At Hast, we are approaching it with serenity. But we wanted to revisit the Covid crisis and its impact on the way fashion brands operate. The crisis has disrupted many established patterns, in terms of production, sales and communication alike. That is why Samy agreed to be interviewed. He wanted to speak out, to tell you how we are getting through this period and why we acted as we did. And, of course, to tell you about the direction we are taking next.
How does production at Hast work under normal circumstances?
We operate on a just-in-time system. The idea is to produce as close to demand as possible in order to avoid overproduction. To do this, we try to forecast future sales in advance and plan our collections accordingly. This system enables us, in particular, to always have appropriate stock and excellent value for money.
Every year, we adapt according to what we consider to be our customers’ expectations, but also according to our own expectations for certain products or the analyses we have been able to make of the previous season. The idea is also to always keep prices accessible.
We are of course aware that we could sell more by building up more stock, but we are committed to controlling our production and avoiding the vicious circle of permanent promotions and the mass clearance of increasingly lower-quality products.
Another important point is interries. At Hast, we work without retailers – resellers. If you want to buy our products, it will be either on the website or in our own shops. Production is therefore easier to manage. If we had advance pre-orders from department stores, for example, we would have to produce more, at the risk of taking back the goods and producing at a loss.
Why is this approach incompatible with the very principle of sales?
When a brand produces in measured quantities and with low margins, discounts have less of a place. At Hast, we apply a margin multiplier of between 2 and 2.5 times the production cost. A traditional fashion brand operates more around 5, or even more. This allows us to offer a price that we consider fair for the garment, but it also gives us less room for manoeuvre. If we run promotions, we partially or entirely remove this margin, which hampers our future capacity for growth (less money will be available to invest in subsequent collections, for example). It is also a matter of principle: we want customers to be able to buy a Hast product all year round, not only during the sales.
The strategy of certain brands, which consists of increasing margins and prices only to make customers believe they are getting a good deal during the sales, does not really appeal to us. We do not want to devalue our products by selling them more cheaply, but rather to always offer them at the price they are truly worth. Nor are we going to mislead our customers.
We may occasionally run small promotions (which is what will happen during the upcoming sales: 10% off purchases from 100€). This is possible thanks to economies of scale in logistics (when we send several products at the same time); it allows us to generate a little cash flow and then gives us an opportunity to thank our customers. Because our very way of operating leaves us few possibilities in terms of customer loyalty.
How did you adapt to the health crisis and the closure of shops?
Our way of operating was inevitably called into question by the crisis, but we are proud to say that we weathered it very well. Managing our business soundly enabled us to withstand the shock. We did not have to carry out massive stock clearances – as was the case for many brands – and all our customers remained loyal.
We had estimated a production level based on the previous year’s sales and our growth expectations. The closure of shops for several months inevitably unsettled those forecasts somewhat. We found ourselves with more stock of certain products and much less of others (which sell equally well online and in shops, particularly our more casual range).
A brand generally operates on a rational model, while a crisis is, by definition, irrational. We therefore had to adapt. For example, by prioritising the production of timeless formal shirts that sell throughout the year (despite remote working), at the expense of seasonal collections. If we do not sell the latter, they quickly become unsuitable (fabrics unsuited to the season, for example).
What means do you envisage in the long term to transform consumers’ relationship with clothing?
This is a subject close to our hearts since the brand was founded. We try to explain things in an educational way. Why do we use one material rather than another? Why is using natural materials or seeking local craftsmanship more ethical?
For the past 8 years, consumers’ relationship with clothing has been a subject we have wanted to address. We want to talk about care, offer style advice and explain how to restore damaged products. That is why we have developed several projects simultaneously. In particular, we have worked with upcycling and on home-compostable packaging with the company TIPA (we are also proud to be the first French fashion brand to offer this alternative on the market).
The fashion industry is often singled out for its excesses, but it is a sector that will always continue to exist, since people will always need to get dressed. We are part of this generation of brands that recognise the mistakes of the past and want to place fashion within a framework of sustainability and responsibility. To show that it is possible to produce less, but better. And to stop encouraging people to buy things they do not need.
We also try to offer ideas, especially during this difficult period. That is why we have rigorously calculated our carbon footprint; we will soon share the results, we are seeking B Corp certification, and we are increasing the proportion of certified organic fabrics… We hope, and are fairly optimistic, that fashion will move in this direction. Hasta la vista!
