Henri Bendel Couldn't Keep Up

Over the years, trends come and go, technology is advancing faster than ever, and consumers have a different mindset. So naturally, the fashion industry has been changing, and will continue to change. If companies don't get on board and adapt to these new changes as soon as possible, they will simply get left behind. That's exactly what happened to the famous luxury company, Henri Bendel.

Believe it or not, at the beginning of the 20th century, Henri Bendel was ahead of their time. This store was known for its in-store luxury qualities and phenomenal customer service. According to the article, "'A warning sign': Why Henri Bendel Lost its Way in the Changing Retail World", by Danny Parisi[1], they were the first to do in-store makeovers and host their very own in-store fashion show. But fast-forward to today, and it simply cannot compete with online retail. Their biggest online retail competition is Net-A-Porter and brick-and-mortar stores, like Bergdorf Goodman and Saks 5th Avenue, were taking all their business. Net-A-Porter, Bergdorf Goodman, and Saks all have relatively the same target market. The brick-and-mortar stores were carrying famous, modern fashion like Louis Vuitton and Gucci and Henri Bendell couldn't compete with that. They were frozen in time and stayed true to their traditional approach. Consistency in a brand is key, but if you are losing business at an alarming rate, it's time for a change.

Another problem Henri Bendel faced was expanding too quickly. They had 23 stores that they had to manage. Instead of opening more stores, they should have focused on how to compete with other retailers. They could have worked on their online presence or focused on how to make their brick-and-mortars more appealing to consumers in 2018 and for the future. But staying the same and relying on tradition is not going to cut it anymore. The fashion industry is constantly changing and innovation will make a brand stand out amongst competitors.

L Brands owns Henri Bendell and had to close this 123-year old retail brand, after operating at a loss for the last two years. This is a wake up call for the global retail industry because Henri Bendell was a huge stepping stone in luxury fashion history. Now that they are out of business, other retailers might step up their game before it's too late.

[1] Parisi, D., Manoff, J., Milnes, H., Weiss, M., Flynn, K., Bhattacharyya, S., & Seb Joseph. (2018, September 14). 'A warning sign': Why Henri Bendel lost its way in the changing retail world. Retrieved from https://digiday.com/marketing/warning-sign-henri-bendel-lost-way-changing-retail-world/