Sosander: Quick question re customer base positioning

Thursday, Oct 18 2018 by
8

Hello

I bought shares in this around the dip in first half of year. Not a lot compared to full position and plan to hold for the long term to see what happens. Not a very sophisticated view.

Anyhoo, I've loosely followed their product material, marketing and imagery since. My feel is that two things have happened over the course of this year:

1) The presentation of the product has moved more confident with a more middle class and even professional focus over the year, from a position that was perhaps a bit less affluent and Next-y middling middle office or mummy dressing a bit smart day (really dodgy description - sorry - hopefully it is relatable rather than viewed as offensive). Perhaps you could say less Loose Women and your aunties having a barney and more aspirational drama/sitcom with powerful or more edgy women in it.

2) I feel the imagery and maybe the clothing is perhaps moving younger

Any views? Do you think I have spotted correctly? If yes, does it have implications for trajectory of company (short and long term)?

Ciao

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Sosandar PLC, formerly Orogen PLC, is a United Kingdom-based company that operates an online women’s wear platform. The Company’s clothing categories include dresses, jackets and coats, knitwear, shirts and blouses, tops, skirts, trousers, jeans, leggings, footwear, leather and suede, occasion wear, work wear, autumn trends, velvet and holiday shop. Its footwear products include Pewter Metallic Chelsea Boot, Red Leather Ankle Boot, Velvet Cylinder Heel Ankle Boot, Black Leather Stud Detail Ankle Boot, Black Suede Closed Toe Mule, Grey Velvet Court Shoe With Jeweled Brooch, Black Suede And Pewter Metallic Court Shoe, Black Leather Front Zip Ankle Boot, Leopard Print Leather Chelsea Boot, Steel Blue Leather Snake Print Ankle Boot And Black Suede Knee Boot. It also offers latest edit of day-to-night dresses, on-trend separates, luxe leather and outfit-topping shoes through its platform. more »

LSE Price
22p
Change
 
Mkt Cap (£m)
25.6
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n/a
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  Is LON:SOS fundamentally strong or weak? Find out More »


5 Posts on this Thread show/hide all

JohnEustace 18th Oct '18 1 of 5
4

I do think they have sharpened up the look. Hopefully that's based on more real world experience of what is selling. It looked to me previously as if they were designing for their own tastes, perhaps now they are designing for the market.

If they can crack the workwear market surely there must be more money there than in the stay at home watching ITV  crowd.

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mojomogoz 19th Oct '18 2 of 5
1

In reply to post #410124

Hi, I suppose what I wondered was whether they may have narrowed their appeal to a subset of wealthier women with a result that short term growth is quicker and easier...but in doing so may be alienating themselves from the bigger market.

Its a fairly casual and non expert perspective but just what occurred to me.

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mrosbiston 19th Oct '18 3 of 5
2

In reply to post #410354

i would say it is a great market they are aimed at.

Toast - but cheaper
Reiss - but cheaper
Zara - but more expensive and less fast fashion
Next - but more expensive and a more stylish proposition

i generally believe workwear is a big and very important market and there is a clear target in their proposition (which is why i believe in the high price/sales ratio is justified and likely to be maintained). One aspect that might be worth adding to their lines would be an eco-fashion proposition, this is surely to be a growing (if slightly niche) trend.

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mojomogoz 19th Oct '18 4 of 5
3

In reply to post #410374

Interesting perspective.

Do you think they are targeting professional and/or senior level women at work and smart after work sort of clothing? Not too expensive so as not to be budgetary problem and so can afford quite a few different outfits?

If yes, would there could be a problem with this: 1) As that is a limited market compared to something broader which all 4 comparators have above and 2) This is perhaps the most savvy and able to shift loyalty crowd due to relative affluence and the ongoing amount they are willing to spend on appearance.

The above is thinking out loud and I'm not claiming great understanding - just interested in perspective from those that might have better appreciation. I'm middle aged man with a simple concept of dressing smart being mail ordering nice shirts from trusted supplier and occasional tailored suit. Pretty sticky on this and no inclination to change/freshen-up (which I think is different vibe from what Sosandar (LON:SOS) are targeting in women).

I've got an experiment going on...my wife (smart expensive-ish dressing lawyer) really trashed SOS when I asked her about it earlier in year as I bought a little and really argued me down on why it was a bad idea. I still bought as I saw a little differently...for example, my 'aspirant working class' sister liked it more and I could imagine and see some appeal/overlap with female cousins and aunties. But since SOS jazzed it up a bit (in my perception) I've left the catalogue out so as my wife can see it. I've not asked her about it as that would be counterproductive and definitely weigh against getting a genuine uncomplicated response...but I am waiting and interested to see if she says something positive or even orders something. However, if she did, I'm not sure whether that is a good or bad sign for future long term growth!

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IGotPoesJacket 20th Oct '18 5 of 5
1

The marketing to me constantly states, in précis, great for the office and easily jazzed up for partying. I like this as this is pretty much how I by clothes even though I’m a dude.
As an IT consultant I visit a lot of banks, retailers and other professional places. The middle ranking people, whether they’re male or female, tend to look smart and casual and you can usually tell straight away whose bought something moderately expensive and whose gone to Primark. For me a work outfit is 60-80 quid trousers, 100ish quid shoes and 40-60 on a shirt. The Sosandar stuff seems to be priced a bit cheaper than this but then I believe (no evidence other than what I see and hear anecdotally) women’s wardrobes are a bit more varied than trousers and shirts so I guess their budgets have to stretch more.

The comments under the posts on Facebook are predominantly encouraging though growth in “likes” doesn’t seem to be taking off as I expected, maybe that’s a demographics thing?

I work for a big company and the better half  deliberately and wilfully buys a competitors products. If I worked for Coke she’d drink Pepsi, so I don’t bother with her opinion on clothes companies. I don’t know why she thinks it’s clever to work against me, maybe I should be doing something about that!


I hold and plan to keep this for the long term, barring any disasters.

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