Postal Service plans all-weather clothing line: Smart move or desperation?
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| New York
Well, we can鈥檛 say we saw this one coming.
The US Postal Service, known more for its stalwart reputation 鈥 and financial woes 鈥 than its vanguard fashion sense, announced Tuesday it is launching a fashion line as part of an effort to generate revenue and build brand reputation. The surprise move has retail analysts impressed 鈥 and doubtful.
The announcement certainly hasn鈥檛 left Gucci and Prada shaking in their stiletto-shearling boots. But considering the focus of the aptly named 鈥淩ain Heat & Snow鈥 line 鈥 all-weather apparel 鈥 the venture starts to make sense. After all, who knows more about dressing for the elements than the Postal Service鈥檚 hale and hearty letter carriers, for whom 鈥渘either snow nor rain nor heat nor gloom of night鈥 thwarts achievement of their solemnly sworn duty. (No word yet on whether the apparel will be pit bull-resistant.)
Fortunately, the Postal Service is sparing us the baby blue button-down shirts and navy pant-shorts. It is working with Ohio-based apparel company Wahconah Group Inc. to create a line of innovative 鈥渇unctional fashion鈥 that should hit stores in 2014.
鈥淭his agreement will put the Postal Service on the cutting edge of functional fashion,鈥 corporate licensing manager Steven Mills said in a statement Tuesday.
鈥淲e鈥檙e talking all-weather, all-seasonal attire,鈥 says USPS spokesman Roy Betts. 鈥淎 man鈥檚 jacket which could be wired for you to click in your iPod and listen to music, control the volume, and make selections, all from the sleeve of your jacket.鈥
In other words, the kind of hip athletic/tech/all-season apparel that might appeal to say, a computer-programmer-tech-enthusiast who enjoys listening to Linkin Park on his iPod while snowboarding with his buddies 鈥 in a Postal Service-emblazoned jacket, of course.
Besides jackets, the line will include headgear, footwear, and clothing that incorporates smart technology, says Mr. Betts.
鈥淚t鈥檚 incorporating technology that originated in the military ... and is now available commercially,鈥 he says. 鈥淏eing able to put wiring in fabric and other material that will allow you to monitor, respond, listen, and connect to your devices.鈥
(Interestingly, this isn鈥檛 the first time the Postal Service introduced a retail line. It rolled out a line of T-shirts, mugs, and neckties in the 1980s, which were sold in post offices until Congress complained that it was competing with private businesses.)
This time, perhaps recognizing its place in the natural order of things, the Postal Service is staying out of the actual designing of the clothing. Wahconah Group will design, manufacture, and place clothing in retail locations, including department and specialty stores, while the Postal Service will simply license its name, and hopefully, collect royalty fees.
The move, says Betts, is as much about re-envisioning the Postal Service鈥檚 brand as bringing in revenue.
鈥淚t鈥檚 brand reputation with revenue generation,鈥 he says. 鈥淭he Postal Service is facing challenges, and we are looking to be more innovative and responsive to the marketplace.鈥
In recent years the Postal Service has faced more than rough weather and choleric canines. The beleaguered agency reported losses nearing $16 billion last year and is scrambling to close a $20 billion budget gap in 2013. As part of that plan the Postal Service recently announced it will end Saturday mail delivery this summer, a move that will cut 22,000 jobs and save $2 billion.
The Rain Heat & Snow clothing line looks to be part of the agency鈥檚 effort to plug its yawning budget gap 鈥 and revamp its listing reputation 鈥 but retail analysts are divided on the venture鈥檚 potential for success.
鈥淭he Postal Service is not going to be successful with this whatsoever,鈥 says Hitha Prabhakar, an author and retail analyst. 鈥淭he USPS is not a sexy brand 鈥 and has been losing its brand gravitas for so long, I don鈥檛 know who would want to wear a US Postal Service shirt or pair of shorts.鈥
Retail expert Doug Fleener sees the clothing line as a relatively risk-free move for the Postal Service that dovetails with its image.
鈥淲hat I thought was smart, what I like about it, is it鈥檚 all-weather gear,鈥 says Mr. Fleener, president and managing partner of Dynamic Experiences Group, a retail and customer experience consulting firm in Lexington, Mass. 鈥淚f I think about battling the elements, there鈥檚 probably no other company or organization that stands out more than the post office. To some degree, that鈥檚 kind of smart of them.鈥
鈥淭he Postal Service gets so much criticism. Their hands are tied and they don鈥檛 have a lot of options,鈥 adds Fleener. 鈥淚 give them credit 鈥 they found a way to drive risk-free revenue.鈥
Both Ms. Prabhakar and Fleener say the move is a form of brand extension not uncommon in the market for struggling labels.
鈥淚 think whenever you have a struggling brand 鈥 whether it鈥檚 the USPS or a designer that was once really luminary and has since lost its luster 鈥 I think brands [reinvent themselves] by starting alternate clothing lines,鈥 says Prabhakar. 鈥淚t鈥檚 brand extension in the form of clothes.鈥
As such, says Fleener, the Postal Service is 鈥渇ollowing the lead of a lot of brands out there that do licensing deals.鈥
Will the Postal Service鈥檚 latest venture reap rewards?
In fact, licensing has revived some companies, like Sharper Image, which went out of business and came back due to licensing deals, says Fleener.
Still, he doesn鈥檛 expect the agency鈥檚 new clothing line will rake in huge profits.
鈥淚t鈥檚 not going to generate a lot of revenue,鈥 he says, 鈥淚t will give them some nice publicity around an area of strength for the Postal Service.鈥
His advice for the agency as it tests the fickle waters of fashion? Stick to what it does best.
鈥淒on鈥檛 try to overextend,鈥 he says. 鈥淚鈥檓 not sure I want to wear Postal Service swim trunks.鈥