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Ivanka Trump's fashion brand may be closing, but who will take all the remaining merchandise bearing the name of the main advisor on the label?
Gary Stibel, Founder and General Manager of New England Consulting Group Articles will have a different future from ordinary celebrity brands.
"The rest of the product is usually donated or sold at fire prices," he said. "This will be an exception."
Stibel thinks that merchandise "will sell the current price several times", whether or not people like clothes or trumps.
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"The fact that his products did not sell as well is a fact," said Stibel, blaming issues like brand marketing. "President Trump, his daughter, and the brand have a very strong following from a tribe (not a small tribe) that will support everything that a Trump has supported.They will pay a premium for products that bear this name and that are rare. "
The news broke Tuesday that Ivanka Trump's clothing brand would close, with her namesake chef choosing to focus on government politics.Her recent efforts have focused on developing the hand -d.
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The clothing brand launched in 2014 and "climbed" in 2016, The year of the presidential election, according to The Wall Street Journal.But this has also caused controversy.Nordstrom Inc. was one of the retailers who stopped selling the brand, citing sales. The mark had 18 employees.
Usually, and a firm brand, the items end up at non-price retailers, like Marshalls, a part of the TJX Cos.
TJX, + 0.41%
portfolio, or be significantly depreciated at retailers like Macy's Inc.
M, + 1.78%
where the goods are sold.
Brett Rose, founder and CEO of United National Consumer Suppliers (UNCS), a company focused on the worldwide distribution of surplus inventories and closures of manufacturers, does not see many reasons why this mark would not be dealt with this way, even with the name of Trump attached.
"Certainly some people will collect the goods, there is a collector for anything," says Rose.
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But it also sees the value of the brand, and leave the door open for a raise.
"Maybe for the moment it will be tidy, but I do not think it's the last time we'll see Ivanka."
The trademark of Ivanka Trump is part of the portfolio of licensed and owned brands of G-III Apparel Group Ltd.
GIII, + 1.30%
MarketWatch reached out to G-III, who had no comments about it. G-III shares are down 1% since the beginning of the week, but they are up 26.8% since the beginning of the year.
The S & P 500 index
SPX, + 0.76%
earned nearly 6% for the period
Neil Saunders, managing director of GlobalData Retail, thinks that a future stimulus is possible.
disappear in the short term, copyright and intellectual property will be retained, "writes Saunders in a note.
He attributes the closure to a lack of time for Ivanka to devote to the mark and the "political challenges" that the company faces.
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"Brand views have become very polarized and became a lightning rod for protests and boycotts. While the company is still viable, doing business has become much more difficult and these problems will only increase. "
As for the upcoming brand, it's finally hard to tell what will happen, Rose said.]" She was a merchant before she was a politician. Same with the president, "he said." It's a new political moment. There is nothing in history to say how it will really work. "
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