Paper Denim & Cloth Premium Denim

Paper Denim & Cloth Premium DenimSaw an article interviewing the CEO of Paper Denim & Cloth, Chris Gilbert.For Fall 2006, they are transitioning from the premium denim market because they believe it’s oversaturated and no longer commercially viable.  They will be reducing denim & sportswear prices by 45 – 55 percent.  This will make the retail for men’s jeans around $100.

Paper Denim & Cloth say the design philosophy remains the same.  They will still also use Italian & Japanese fabrics.  The only difference is that they will use laundries outside of the U.S. in Mexico and the Dominican Republic instead of Kentucky and L.A.

Concerning distribution, it it ensures a wider customer base for Paper Denim & Cloth.  Safe to say, most of the high-end accounts will drop them. On the up-side they will find exposure in stores where they were once too expensive.

Paper Denim & Cloth are the first out of the blocks here but many other premium denim brands are bound to follow.  The premium market is saturated.  Additionally, the Paper Denim & Cloth brand has its historically premium denim reputation and high status so the new customer will see Paper Denim & Cloth jeans as a real bargain — Very smart Chris!

One Response to “Paper Denim & Cloth Premium Denim”
  1. I’m not exactly sure how smart this move actually is, and I don’t believe others will follow. In fact it seems to me that they are being hurt significantly by the introduction of new players because Paper, Denim and Cloth doesn’t set itself apart from its peers in any way possible.

    The fact of the matter is that by saying they will be moving to lower end markets, they are admitting their high end product is not selling. And it doesn’t make sense for other brands to follow. It would only make the brand worth less. There’s a reson companies such as Coach, Gucci, Louis Vuitton, etc. are regarded so highly. They don’t sell them at a cheaper price so more people can afford them. They build a quality product, and people are willing to pay a price for it.

    Personally, I feel that any company that moves its focus from the high end market to a lower end market is saying that their design is not being accepted by the marketplace. According to the theory of supply and demand, in order to offset this loss of market share, they must lower their price points.