Explaining Licensing Deals: BAPE and Anti Social Social Club Tease Their Forthcoming Collaboration

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https://hypebeast.com/2017/4/bape-anti-social-social-club-teaser

John 3 minutes ago

Can you elaborate on what paying for “licenses” in street wear is? By the way your insight on street wear is intriguing. I’ve lurked here long enough to know your post have the most substance most days

Syndicate The Hypebeast Critic a few seconds ago

Okay so a license to get like Marvel or Looney Tunes or some shit is about $20-30k and you can use all their content. I’m going to assume Bape because it’s Bape would charge around $30-500k plus a percentage of whatever he sells. Notice that it’s not Bape or MMJ making the t-shirts, it’s always Neek’s Gildan just with the logo slapped ontop. When I saw that I concluded he’s probably just paying them the licensing fee to use their logo, then slapping it onto his Gildan’s and charging 3x as much. That’s a straight licensing deal. Bape or MMJ could also make the t-shirts for him but ask yourself first why would either of those labels want to collaborate with him in the first place.

Notice he’s not getting his own ASSC Bape Shark or anything fancy, it’s always just a shitty logo slap. MMJ and Bape have incredible facilities, but they never give him access.

1.) MMJ is old as shit and this introduces them to Generation Z and also gets them a major payday. Even if Neek breaks even on the pop-up shops after the licensing deal, he’ll make it back in e-commerce sales due to the hype. Realistically, I think MMJ might have only charged him like $50k for that. Neek pisses that on a car, I wouldn’t put it past him.

2.) Bape can obviously charge more but they’re losing relevance since Nigo left. He could probably pay them like $100K now that MMJ already cosigned him, run the pop-up, probably break even on that after flights, shipping, staff, import taxes etc. Again, it keeps Neek’s hype high and sustains his label.

Neek pretty much is running a marketing company. His brand is sustained off hype and a shitload of collabs, clever almost like Supreme. Unlike Supreme, Neek has no massive factory backend to make complicated garments. That’s why it’s always just Gildans. So if he can’t make quality clothes, all he can pretty much do is collab with every major brand you can think of until he runs out of brands and the hype dies down. Making $10-20M in profit in a few years is no easy feat but sustaining this beyond Bape I have absolutely no idea how hes’ gonna do that. Hey man, even Edison Chen fell down to $50k in his bank account at one point. Anybody can be king then fall off after 5 years.

Deleted Comments from Dover Street Market Ex Employee of 4 Years Defending a 6 month old post: Cactus Plant Flea Market Gets Experimental for 2016 Fall/Winter

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This guy claims to have worked at DSM before and was trying to school me on how Cactus Flea Market is killing it because they allegedly made a $40k wholesale order to DSM for this shitty drop.  I told him to redo the math.  He then deleted all of his comments which is such a bad look because I have them all saved on my discus for you to view.  You can’t run from me bro I save everything you send me lol.  Here are some golden nuggets:

cccc a minute ago

i worked at dsm for nearly 4 years. you’re 100% wrong.

yes, in retail markup can be up to 75-80%, but not in this case.

regardless, let’s entertain your ignorance. if it were 80% markup, that $22 per shirt. at 700 shirts, that $15k. add in $5k for the hats and you get to my more conservative $20k estimate that you chose to completely ignore since it was easier to argue against the $40k figure. as in any young, small brand thats blowing up, you just cant accept how much money they actually make. it pisses you off that someone who’s making something you don’t like is doing better than you, so you try to minimize it and deny the truth. denial is what addicts and depressed people use to cope. they also lash out with name calling and twist arguments away from the actual point being argued (like falsely assuming someones employer or age). you should consider getting help, you’d prob be much happier.

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Syndicate Critiques: Bobby Hundreds and Josh Vides on What It’s Like to Start a Brand From the Bottom-up

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I’m still not a huge fan of the Hundreds, but generation 2: Braindead, Pleasures, Chinatown Market, and Carrots are all shit rated brands. If Hundreds was a B- rated brand, those 4 new brands are like C-. They’ll never get as big as Hundreds, maybe if they started 12 years ago. They’ll always be the Lil Bro of Bobby Hundreds, and won’t be able to sit at the big kid table with him and his vast empire of flagships.

Read the rest of the interview, basically CLSC went from $1M a year revenue at their peak down to the 2014 retail crisis when literally everything started closing. I’ve never been a fan of CLSC but I think one of the issues is that it never gained it’s own distinct art style and aesthetic as a brand. It just ended up looking like the other dozen Fairfax printed t-shirt brands. No mind blowing graphics, no interesting fits, no real innovation. How could they compete? They ran their own flagship too like everybody on Fairfax but as well all know, the internet will kill all retail stores eventually, especially smaller ones.

Now Josh is running a brand development agency instead. Here’s the real question for all your industry guys, if you’re doing brand development for all these new brands, and the streetwear scene is shifting and closing slowly, is that really a safe area to head into? That’s like working as an oil broker as earth slowly moves onto solar panels. I feel like eventually, it’s just going to be Zara VS the high fashion world vs Techwear for quality and all the other brands inbetween are going to get killed off. High fashion will always exist because of the skill level, techwear will always exist because of the R&D on the product, and Zara will always exist because they’re fast fashion logistical gods. Streetwear has merged into high fashion, and contemporary has become Zara. The next generation of kids will wear cheap basics paired with luxury staples and sneakers.

But where the hell does streetwear fit into this? It’s mostly a bunch of guys who are into skateboarding and hiphop who can’t really do any of the above 3 very well at all. I feel like it’s becoming a dead end industry.

 

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Why Nigo and Fujiwara were never really “real designers” (Syndicate vs Stuci)

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Nigo creative directed his own shit, he didn’t design any of those graphics of draw any of that shit himself. That’s where the real work was done. I’d like you to prove now that he actually did design his own shit, Sk8thing is my evidence, where the fuck is yours?

Creative directors typically guide the junior designers in submitting and curating what the collection will be. Legitimate creative directors working at the fashion house level were typically designers originally, then graduated up and are then credible enough to guide the juniors. That is not the case for Nigo or Fujiwara.

Nigo and Bobby Hundreds are just two dudes who subcontracted designers and never climbed that ladder themselves. They were never real designers. They never did fucking runway or even drew their own shit past their first draft shitty logo. If you consider that being a “real designer” you don’t know shit about this industry.

I don’t care if either of them are praised in the industry, so is Kanye, and nobody is willing to call him a “real designer”. Fujiwara is only a god because he was a solid tasteful businessman who paved roads for guys like Nigo not because he was the McQueen of Japan.

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Syndicate speaks to Mega of Blackscale: What Does Rob Garcia’s Return to Black Scale Mean for the Brand?

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https://hypebeast.com/2017/1/rob-garcia-return-black-scale-mega-yabut

Rob is going back to Black Scale because he’s unemployed and En Noir couldn’t stay afloat due to major logistical issues and their factories fucking them over, not entirely his fault to be honest. Rob is a competent guy, but everybody faces some kinda bad luck in the industry. Mega on the other hand had some cool ideas but now has a dried up ass brand that he’s hoping Rob can come and inject some actual design thought into.

Two old ass guys trying to save their labels. I hope when this drop comes out, it’s actually innovative enough to make us all think they know what they’re doing again. Adidas had a massive comeback and now I rock Adidas instead of Nike for the first time in my life, but it’s because the product is actually doper. Not hating on Rob or Mega because they’re clearly both hard working guys but please give us a good show or just fucking quit. There’s been enough bullshit releases in 2016, last thing we need is two industry vets spoonfeeding us more garbage.

Release fire or gtfo. If you guys still remember how to that is.

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Syndicate Whistleblows: YEEZY Season 2 Will Not Be Releasing This Summer

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https://hypebeast.com/2016/4/yeezy-season-2-will-not-be-releasing-this-summer

Let me shed some light on this situation.

First season everybody bought it up, but it didn’t sell well in retail stores at all, despite what everybody thinks. Check the actual retail store numbers, it sold like shit, and and all the listed retailers bought the absolute bare minimum to be listed as a stockist to ride the Yeezy credibility wave. I’m talking 1-3 of each piece in as few sizes as possible. I have confirmed sources on this, don’t question it. Kanye blew through $8M of Adidas’ money last collection just for the sake of running a massive vanity project. Adidas still profited it off this through making back their money in the Tubulars and other Adidas variant sneakers. There is nothing special about the clothes, they are made in the Adidas factory and use typical product production methods. This isn’t like Visvim where you have guys literally hand dying every strip by hand using 16th century methods. The pricing is bullshit, and you all know that.

The sneakers and boots sold amazingly, but they always have so that’s not news. They were also limited so they couldn’t serve as a cash grab to recover the costs of doing an $8M promotional line. Right now, they’re stating they’re releasing it in a seasonless model to spread it out but the real reason probably is to get their production margin and minimums up high enough to not lose as much money this time around when producing such small quantities for that many stores.

Going seasonless is bullshit, the fashion distribution system does not work that way. You can break it up into quarters but anything more than that and the retailers will be too rushed to be able to turn products around fast enough, and thus make buying Yeezy a huge risk for them. Stores need minimum 90 days from point of delivery to flip products. The shoes will definitely have ridiculous camp outs but the clothes won’t. For E-Commerce maybe he can drop every week, but that’s putting him more in the category of a brand like Supreme, when he wants to be treated like Wang or somebody else high end.

If you don’t believe me, when the list of stockists holding Yeezy 2 comes out, see if it’s twice as big as the first year list, the same size, or smaller. It will probably be smaller, because no decent retail store wants to spend $20k on bullshit product that doesn’t move. Laws of the jungle, real fashion is forever. Hype is temporary bullshit. He may have done one season so far and got everybody to buy, but if the retailers aren’t actually making money off it they logically won’t do it again if they care about their bottom line.

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