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IADS recently held a meeting all about the cosmetics, beauty and wellness brands to look out for in 2023. Based on market research, IADS and NellyRodi presented a curated selection of 10 brands that are trending right now.

Check out our selection of these brands, and the pictures, by clicking the button below!

explore the brands and pictures here

SKINCARE

TOPICALS

Topicals is skincare designed for flare ups. The effective, science-backed formulas address specific skin problems such as hyperpigmentation and eczema. The brand creates an inclusive environment by representing imperfect skin and designing their products to support every skin type and shade.

Check out the TOPICAL website here

CHECK OUT THE TOPICAL INSTAGRAM

DIEUX

Dieux is a clinically vetted skincare company that wants its consumers to know exactly what they are buying and how it works. Their products are rooted in science, price transparent, and responsibly sourced. .

Check out the Dieux website here

check out the Dieux instagram here

HERBAR

Berlin-based skincare brand, Herbar, takes a holistic approach to beauty that values plants and their benefits for skin, mood, and health. Using fauna, flora, and fungi-only formulations the brand champions sustainable beauty and the establishment of a responsible and transparent production and harvesting system.

Check out the HERBAR website here

check out the HERBAR instagram here

MAKEUP

YOUTHFORIA

Youthforia is a clean and sustainable makeup brand that creates makeup that acts like skincare. The brand has innovative and playful makeup that customers are able to sleep in thanks to its high quality, unique formulas.

Check out the YOUTHFORIA Website Here 

check out the YOUTHFORIA instagram here

ECLO

Eclo is formulated from vegan, organic, 100% natural ingredients that mostly come from regenerative agriculture. Their product range includes blushes, foundations, eye shadows, and lipsticks that come in compostable packaging. Not oly are their products good for the planet, but they are also good for the skin.

check out the Eclo website here 

check out the Eclo instagram here

19/99

19/99 is creating a new narrative in the beauty industry where individuals can define their own image of beauty. The brand has multi-use essentials that are easy to use, designed for people of all ages, and made with clean ingredients

check out the 19/99 website here 

check out the 19/99 instagram here

HAIR

OWAY

Oway uses naturally derived solutions for a variety of hair solutions. Their concentrated and multisensory hair and scalp products are rich in active ingredients and formulated according to the brand’s agrocosmetica principles which are put in place to improve the wellbeing of the Earth and others.

Check out the OWay website here

Check out the oway instagram here

PERFUME

NONFICTION

This lifestyle beauty brand sells products that offer moments of intimate well-being on a daily basis. They encourage customers to reset, refresh, and create a space for self. All products are formulated with high-quality and carefully curated ingredients to create unique scents that are inspired by natural environments, and the cultural traditions and lifestyle of Korea.

Check out the NONFICTION website here 

CHECK OUT THE NONFICTION instagram here

THE NUE CO.

The Nue Co. is an interhealth brand that is bridging the gap between health and the environment. With sustainability at the root of everything they do, Nue Co. is pro-science, pro-clean, and pro-planet. They are on a mission to redefin supplements, but also sell functional fragrances that have scents with proven efficacy on the body and mind, as well as skin and haircare products.

CHECK OUT THE NUE CO. WEBSITE HERE

CHECK OUT THE NUE CO. INSTAGRAM HERE

OTHER CATEGORIES

GESKE

Geske is a Germany beauty tool brand that is launching soon. They offer a wide range of multifunctional beauty tech tools at an affordable pricepoint that are designed with dermatoligists and aesthetic doctors. Additionally, the tools offer a personalized experience as they connect to the brand’s smartphone application.

Check out the GESKE website here

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IADS recently held a meeting on the home and decor sector. Based on market research, NellyRodi and The Style Pulse presented the most innovative brands from different segments in home and decor including furniture, tableware, decor, home appliances and electronics. The presentations had a large focus on tableware as it is the top-performing segment in home and decor at the moment.

Check out our selection of these brands and the pictures by clicking the button below!

explore the brands and pictures here

FURNITURE

MAISON DADA

Created in Shanghai, Maison Dada creates products that are bold, playful and daring. The brand fuses ancestral Asian influences, such as lacquer and ceramics, with a modern and colourful style to produce decorative furniture inspired by Surrealism.

Check out the Maison Dada website here

CHECK OUT Maison Dada's INSTAGRAM

HOUTIQUE

Houtique is a furniture and lighting editor that defines itself as a design incubator. Several designers work together to create its bohemian, colourful and joyful aesthetic. Products are subtly inspired by nature.

Check out the Houtique website here

check out the Houtique instagram here

POPUS

Popus furniture utilises vibrant colours, vintage prints and elegant materials. They allow customers to compose their own furniture with the opportunity to choose colours, fabrics and patterns.

Check out the Popus website here

check out the Popus instagram here

TABLEWARE

STUDIO ARHOJ

Fusing together Scandinavian and Japanese minimalism, Arhoj offers handcrafted creations made with passion. Designed to enhance the functional aspect of tableware, each product is hand-made and hand-decorated in Copenhagen.

Check out the Studio arhoj Website Here 

check out the studio arhoj instagram here

LA DOUBLE J

The Milanese brand offers its tableware line that consists of vintage patterned plates and maximalist ceramics and linens. The brand edits the very best of Italy and what was originally a shoppable magazine selling vintage clothing and jewellery, became a full lifestyle label now offering its own fashion and tableware.

check out the La double j website here 

check out the La Double J instagram here

MARIE DAAGE

Marie Daâge creates elegant and modern tableware to make every table a work of art. Each piece of porcelain is hand-painted and custom-made in local workshops, making it the haute couture of the table. The brand is an ode to the French art of living.

check out the Marie Daâge website here 

check out the Marie Daâge instagram here

ARTSENIAS DEL ATLANTICO

A collection of handcrafted pieces made by craftsmen in Colombia. Products are 100% made with local raw materials and artisan labour. They offer tableware, trays, placemats and more.

check out the Artsenias del Atlantico website here

Check out the Artsenias del Atlantico instagram here

MAISON FRAGILE

Maison Fragile produces porcelain tableware, made in France. The brand seeks to re-enchant the French art of living and the labour process consists of fifteen steps to make every piece. Maison Fragile has partnered with prestigious Michelin-starred chefs and the Élysée Palace.

check out the maison fragile website here

check out the maison fragile instagram here

MINVAL LIVING

Sophisticated pieces with sleek designs and elegant curves inspired by the art of the table of medieval monarchies. Minval uses noble and luxurious materials such as silver and marble to give tables a sense of royalty.

check out the minval living website here

check out the minval living instagram here

DECOR

ANNA + NINA

Anna + Nina use colourful designs to bring joy to interiors. The founders use inspiration from their travels to Bali and Thailand to bring rich colours and complex patterns into everyday life. The brand values every step of creation, from the manufacturing process to design to ensure all collections are made with love and attention.

Check out the anna + nina website here

Check out the anna + nina instagram here

PAPERMINT

Produced in Paris, France, Papermint offers made-to-measure and customisable wallpaper. The brand values creativity and explores all types of styles.

Check out the papermint website here 

check out the papermint instagram here

MATTINA MODERNA

Matina Moderna creates colourful lamps that bring life into every interior. Each lamp is handcrafted and hand-painted by a ceramist in Portugal and crafted in France by an artisan. The brand is a mother-daughter project and every product is one-of-a-kind.

check out the mattina moderna website here

check out the mattina moderna instagram here

ARETI

Areti is a collaboration of Swedish and German craftsmen to produce high-quality furniture and lighting. Areti values elegant and simple shapes and lines.

check out the areti website here

check out the areti instagram here

HOME APPLIANCES

STEAMERY

Steamery is a Scandinavian textile care brand. They make clothing care products such as steamers, fabric shavers and clothing brushes. On a grand scale, Steamery aims to slow down unsustainable processes and inspire a slow fashion lifestyle.

Check out the sTEAMERY website here 

CHECK OUT THE STEAMERY instagram here

ELECTRONICS

AMIBOT TECH

Amibot offers different types of robots adapted to the needs of every individual, ranging from vacuums to window cleaners. The brand is committed to local and eco-responsible production and all robotic vacuums are recyclable.

Check out the AMIBOT TECH website here

CHECK OUT THE AMIBOT TECH INSTAGRAM HERE

TRANSPARENT SPEAKER

The Swedish brand has made an innovative and differentiating design with a commitment to product circularity - all of its modules are forever upgradeable. They aspire to be the first circular tech brand and firmly believe that companies are responsible for removing electronic waste from the world.

Check out the transparent speaker website here

check out the transparent speaker instagram here

What: McKinsey reviews the impact of decision-making processes on companies’ performances.

Why it is important: 80% of respondents consider their organizations to be inefficient at decision-making.

A recent McKinsey Global Survey reveals that only 20% of respondents believe their organizations excel at decision-making, and most of their time spent on decision-making is considered ineffective.

The survey investigated three common types of decisions: big bets, cross-cutting decisions, and delegated decisions. Results indicate that good decision-making practices lead to high-quality and fast decisions. Organizations that excel in decision-making, referred to as "winners," are able to make and execute good decisions swiftly, leading to better financial results and growth rates.

The survey also highlights that even C-level executives spend a significant portion of their time on decision-making, with over half of respondents spending more than 30% of their working time on it. However, many consider this time to be inefficiently used.

Decision making in the age of urgency

What:  The month of July has seen a +6 points surge in terms of customer confidence

Why is it important:  Inflation is still a concern for all customers, but so far, so good as consumption remains strong.

In July, the Conference Board Consumer Confidence Index surged by nearly six points to 117.0, reaching its highest level in two years and driven by a significant increase of over 8 points in the future expectations component.

Although the consumer mood is optimistic, concerns about a recession slightly increased, with around 70.6% of consumers viewing a recession as likely within the next year.

Purchase intentions varied, reflecting a pragmatic spending approach, with plans to spend less on discretionary services like travel and more on essential services like healthcare.

Consumer inflation expectations for the next 12 months dipped slightly to 5.7%, reflecting a decline in current headline inflation, but maintaining caution about ongoing inflation concerns.

US consumer confidence soars in july

What: A panorama of the main retail players in India.

Why it is important: Although incomplete, and potentially confusing the department store format with malls, this articles gives a good understanding of the current state of a market expected to boom in the coming years.

India's modern-format department stores began with Shoppers Stop in 1991, and others like Pantaloons, Lifestyle, and Central followed. Despite initial success, they faced challenges like limited selection and frustrating checkout experiences.

Globally, the department stores market is expected to reach USD 166.08 billion by 2028. In India, modern retail (including department stores) is projected to grow to USD 230 billion by 2030. Players like Shoppers Stop, Lifestyle, Central, Pantaloons, and Reliance Trends have expanded, adapted, and ventured online. However, challenges from e-commerce and changing consumer preferences are impacting department store popularity.

Taking stock of the department store situation in India

What: In an opinion piece, Coresight reviews what the reduction of Amazon’s number of private labels could mean for retail.

Why it is important: Private labels are a source of margin and traffic as long as the retailer is not growing too big, which is the case for Amazon, which was forced to shut down a number of labels for antitrust reasons.

Amazon is reportedly reducing its collection of private labels in the US market, consolidating from 30 clothing brands to just three: Amazon Essentials, Amazon Collection, and Amazon Aware.

This move is in contrast to the trend of many retailers embracing private label brands as a way to boost sales and margins. While private labels remain successful for some retailers like Target, others are shifting focus away from them, emphasizing branded products that resonate with consumers' lifestyles.

Amazon's private brands have seen significant penetration in the fashion category, with around one-quarter of apparel shoppers on Amazon.com buying from its private labels. The contraction in Amazon's private brands is likely to impact its appeal in the fashion sector, but the abundance of other brands on its platform may mitigate the effect.

There go Amazon’s Private labels

What: McKinsey advocates for organizations to be able to make faster decisions in order to boost productivity.

Why it is important: For them, it goes through facilitating productive debates, having a clear process to make decisions, and being able to delegate some of them. This however raises the question of the tools that need to be implemented to facilitate such a climate.

A survey conducted by McKinsey with over 1,200 managers from various global companies highlights growing dissatisfaction with decision-making processes. The slow pace, lack of effectiveness, and uneven quality of outcomes have frustrated senior leaders. Fewer than half of respondents believe that decisions are timely, and 61% consider at least half of their decision-making time ineffective. This inefficiency can cost a typical Fortune 500 company around 530,000 days of managers' time annually, equivalent to approximately $250 million in wages. The dissatisfaction arises from issues such as lack of real debate, convoluted processes, information overload, unclear roles, and consensus-driven cultures.

The study focuses on three main categories of decisions: big bets, cross-cutting decisions, and delegated decisions. For each category, the study identifies a standout practice that can significantly enhance decision quality and speed.

1. Big Bets - Facilitate Productive Debate: The study emphasizes the importance of fostering healthy debate in decision meetings, particularly for critical, future-shaping decisions. Encouraging diverse viewpoints, challenging assumptions, and creating a safe space for dissent can lead to better outcomes. Effective debate was found to be the most predictive factor for good and fast big-bet decisions.

1. Cross-Cutting Decisions - Understand the Power of Process: For decisions that involve multiple functions and departments, a well-coordinated process is crucial. Clarifying objectives, measures, roles, and responsibilities helps streamline cross-cutting decisions. Improving meeting discipline, distinguishing between decision-focused discussions and informative discussions, and managing participants' numbers are important steps.

1. Delegated Decisions - Make Empowerment Real: Empowering employees closest to the work to make decisions leads to faster, better, and more efficient outcomes. Creating an environment where employees can "fail safely" encourages experimentation and innovation. An "all-in" culture that encourages commitment from all levels of the organization enhances decision implementation.

The study also emphasizes the importance of fostering commitment after decisions are made, particularly in consensus-driven cultures. Encouraging an "all-in" culture and ensuring that decisions align with the company's strategy and value-creation agenda are essential for effective implementation.

Three keys to faster, better decisions 

What: A new category of tourists is emerging and some department stores have noticed.

Why it is important: Is wellness a new category bound to become as central as beauty and fragrance in department stores? Galeries Lafayette, Harrods and Selfridges think yes.

Wellness tourism is experiencing rapid growth as more people prioritize their wellbeing and seek health-focused travel experiences. The global wellness economy, which contracted during the pandemic, is predicted to reach $7 trillion by 2025, with wellness tourism expected to outpace the rest of the sector, reaching $1.1 trillion in 2025. This trend is prompting luxury brands, such as Dior and La Mer, to explore wellness activations as a way to engage customers. Urban spaces are also incorporating wellness solutions, with wellness centers and treatments becoming increasingly available in cities.

Luxury department stores are capitalizing on the appeal of wellness, with Harrods and Selfridges offering services such as IV drips, cryotherapy, and biohacking, or Galeries Lafayette dedicated 3,000 sqm to this new categroy. The landscape is shifting due to a cultural change where people openly seek wellness treatments as part of their self-care regimen. The expansion of wellness offerings in urban venues is reducing the need for remote spa destinations.

Resorts and spas are innovating by offering immersive experiences, cutting-edge treatments, and personalized services. Destination spas are capitalizing on their environments to provide full immersion in mental, physical, and spiritual health. Despite the growth of urban wellness centers, destination spas and resorts are expected to maintain their importance due to the unique experiences they offer.

The competitive wellness market also comes with risks, such as extreme treatments and technologies that lack proper regulation. Consumers must exercise caution and inquire about certifications and practitioner experience before seeking wellness treatments. Additionally, some wellness treatments are gaining popularity for alternative uses, such as aiding weight loss, which can have potential health risks if not medically supervised. Despite challenges, the majority of wellness providers aim to offer positive and beneficial experiences to their customers.

Wellness tourism is booming

What: a selection of 10 trends spotted by the Robin Report, including examples of application

Why it is important: Retail has grown extremely complex now and many aspects of the business need to be understood, considered and taken into account. Some are fads, but others are mere reflects of a restructured demand.

Here are the 10 points identified by The Robin Report:

1. Experiential Extravaganza: Retailers are transforming stores into adventure-filled spaces, turning shopping into an experience. Examples include sneaker stores with urban jungle themes and bookstores as mystery escape rooms.

1. Omnichannel Magic: AR/VR technology is blurring the lines between online and in-store shopping. Home Depot allows virtual tours, while Gucci's AR app lets shoppers try on designs virtually.

1. "Bespoking": Extreme personalization is on the rise, as AI algorithms curate personalised fashion boxes (Stitch Fix) and Starbucks creates personalized menus based on customer preferences.

1. Eco-Chic Revolution: Brands are embracing sustainability, with initiatives like Patagonia's Worn Wear and H&M's Conscious Collection. The focus is on reducing waste and using sustainable materials.

1. Hyper-Localization: Retailers are connecting with local communities, collaborating with local artists and hosting neighborhood events to engage consumers.

1. High-Tech Wonderland: Retailers are adopting advanced technologies such as customized sneaker production (Adidas) and robotics in stores (Lowe's) to enhance shopping experiences.

1. Wellness Oasis: Retailers are emphasizing well-being, with stores offering yoga classes (Lululemon) and self-care tips (Sephora's Beauty Insider community) to attract consumers.

1. Pop-Up Galore: Pop-up stores are becoming a consistent engagement strategy, not just for PR but as part of ongoing consumer interaction.

1. Social Shopping: Social media and shopping are converging, with Instagram's Shoppable Posts and Pinterest's visual search tool linking directly to retail.

1. SKIMs: Kim Kardashian's Skims brand is opening flagship stores, demonstrating the fusion of retail and celebrity influence, with plans for global expansion.

These trends represent the evolving landscape of the retail industry, emphasizing immersive experiences, personalisation, sustainability, and the integration of technology and social media.

Ten major consumer trends will dominate the retailosphere

What: An opinion piece about how Neiman Marcus has fared since the 2020 bankruptcy.

Why it is important: :  In department stores, focusing the organization on one given purpose is crucial. It seems that in the current world, there are increasingly a narrowing number of options for department stores: either to be a must-visit place for tourists and locals, or to be a temple of luxury. Both are not incompatible, but gone are the days for department stores to be “temples of everything for everybody”.

Since emerging from bankruptcy in 2020, Neiman Marcus Group (NMG) has undergone a transformation under CEO Geoffroy van Raemdonck which has largely remained off the radar.

The company has focused on enhancing the shopping experience in its luxury stores and online, making it a vital partner for premier luxury brands. NMG's emphasis on personalized experiences has helped build customer loyalty, with high-value luxury consumers driving a significant portion of sales.

The company's "Power of One" people project aims to empower its associates, resulting in increased engagement and retention, and a positive impact on its net promoter score. NMG's hybrid work model, centered around its hub concept, supports its "Way to Work" strategy, enabling employees to work smarter, be present, integrate work and life, and feel empowered.

An in-depth look at the Neiman Marcus HR reorganization

What: An opinion piece on the need to reconsider how loyalty is seen and managed in retail.

Why it is important: Retailers have to think of themselves as audience managers, and develop their own ways to capture and retain their customers’ fascination

In the midst of a volatile retail landscape, customer loyalty is being intensely challenged. Accenture’s recent survey highlighted that 85% of consumers are currently dealing with uncertainty. This, combined with price inflation, is influencing consumer behaviors, leading to the necessity for retailers to reimagine their loyalty strategies.

While many retailers are still emphasizing discounts and promotions, leveraging data analytics can enable hyper-personalized offers. However, loyalty should encompass more than just discounts; it’s essential to meet consumers’ broader expectations such as product variety, convenience, swift deliveries, and excellent customer service. Retail subscription services are becoming popular, with some viewing them as the new form of loyalty.

It’s essential for retailers to focus on understanding individual consumers, simplifying their shopping experiences, and offering memorable interactions. There are emerging examples of this, such as the British menswear brand, Percival, that provides exclusive engagements with its top customers. Another opportunity lies in offering hyper-personalized advice tailored to health and wellness goals in grocery retail.

Brands like Best Buy are shifting loyalty from just purchases to broader brand engagement. Gamification is another method to deepen customer connection, rewarding them with exclusive offers and experiences.

Successful loyalty strategies rely heavily on data and analytics to provide a tailored experience. While technology is crucial, human touchpoints remain indispensable in shaping loyalty, with frontline workers translating brand ethos into tangible experiences.

In this uncertain period, retailers need to be innovative, focusing on a broader range of consumer needs and building strategies beyond traditional loyalty programs. Emphasizing comprehensive brand narratives, personalized offers, and genuine human interactions can guide consumer loyalty into a new era.

Reinventing retail loyalty

What: A piece on the evolution of the retailing landscape in India.

Why it is important: Are we about to see a change in paradigm just like what is happening in the US where malls are falling from grace? The arrival of Galeries Lafayette as a European-style, city centre store, will provide an entirely new option to India customers.

Department stores have historically played a significant role in the success of shopping malls by attracting foot traffic and generating revenue. They offer a diverse range of products under one roof and often serve as anchor stores, benefiting both the mall and retailers. These stores have advantages such as offering a wide range of choices, discounts, and loyalty programs that enhance customer appeal.

However, the role of department stores in malls has evolved due to emerging trends like food courts, entertainment centers, and online shopping. They have faced challenges from e-commerce and competing anchor stores like popular fashion brands. During the COVID-19 pandemic, department stores also experienced decreased footfall.

Despite these changes, many experts still consider department stores valuable to malls. They continue to generate foot traffic, revenue, and customer satisfaction. Their significance remains strong, especially in growing markets like India.

The allocation of space to department stores varies among malls. Some malls dedicate around 12-25% of their total retail space to department stores, depending on factors like mall size and layout.

While department stores have traditionally been anchor stores, this trend has shifted in some cases. Theme-driven malls may prioritize high-end boutiques and designer flagship stores as anchor tenants, aligning with their unique identity.

Maintaining a balance with multiple department stores involves strategic tenant selection, diverse offerings, and targeting various demographics. Varying brands, price ranges, and product categories prevent redundancy and contribute to a successful mall experience.

Are department stores still relevant in Indian malls? 

What: There are benefits for luxury goods in the secondary market both for sellers and for consumers.

Why it is important: While the luxury resale market holds significant promise for sellers and consumers, there are challenges related to authenticity, profitability, and the lack of commitment from brands and luxury clients that still need to be addressed.

The benefits of the luxury resale market include providing sellers with cash and offering a wider segment of consumers the opportunity to buy luxury brands they may not be able to afford. It allows consumers to give their unused luxury goods a new life. Additionally, the resale market has the potential to become more structured and mature over time, similar to the car market.

However, there are several challenges in the luxury resale market. One major challenge is ensuring the authenticity of secondhand luxury goods, as it is labor-intensive and prone to errors. At present, no secondhand player can offer a 100% guarantee of authenticity. Managing secondhand inventory is also costly and requires a critical mass of sellers and buyers for a significant "network effect". There is a lack of commitment from brands to participate in the secondary market, with some brands using it to offload unsold products or limit demand spillover to competitors. The emergence of a small secondhand market can reinforce the consolidation of mega-brands and push middle-class consumers towards more established brands.

Technology, such as blockchain and RFID, has the potential to address the authenticity issue in resale. However, the adoption of these technologies is still in its early stages.

The state of luxury resale

What: Fashion brands are under much pressure to reduce their emissions. However, the complexity of the problem might also very well challenge their business model.

Why it is important: While it is unlikely that de-growth will be accepted by stakeholders, brands might be under increasingly intense regulation that might, ultimately, bring such changes to the business model. Private labels will be no exception.

The fashion industry, often celebrated for its glitz and innovation, currently grapples with a significant environmental issue—excessive production leading to increased greenhouse gas emissions. Many brands have pledged to reduce their carbon footprints, but the push for rapid expansion often undermines these eco-friendly initiatives.

Several renowned companies are trying to reduce their overall emissions, but even if emissions per product drop, the cumulative effect might be an increase if the number of items produced rises. Additionally, only a small fraction of top global companies are on pace to reach their self-proclaimed sustainability targets. This disparity highlights a complex challenge: the age-old business success marker of growth seems to be at odds with the planet's sustainability needs.

The concept of 'degrowth' is emerging as a potential solution. This doesn't simply mean a reduction in economic activity. Instead, degrowth is about building prosperity through a balance between nature's resources and human necessities. Here, the well-being of communities would be more valuable than profits. But, suggesting a reduction in growth can be controversial for brands and stakeholders, making it a challenging proposal to promote.

A common counterargument posits that it's possible to separate growth from its environmental repercussions. However, this idea, termed 'decoupling', is debated among experts, with many questioning its feasibility.

Despite optimistic targets set by companies, actual data shows a concerning trend. For example, recent studies indicate that emissions from some leading fashion brands could surge by up to 80% by 2030 compared to 2019 levels. Merely shifting manufacturing to countries with cleaner energy doesn't address the root of the issue and fails to provide an equitable solution for all nations involved.

One promising approach towards understanding and tackling the environmental impact of fashion is by fostering transparency. If companies were more open about production figures, factory locations, and transportation methods, it would give a clearer insight into areas requiring the most improvement. Initiatives in regions like the EU are pushing for standardized assessment methods and mandatory disclosure of unsold merchandise. But beyond regulations, brands must genuinely address and rethink their growth strategies for the sake of our environment.

In essence, as we move forward, it's crucial to scrutinize the intertwined relationship between industry growth and its carbon footprint. It's not just about economic prosperity anymore; it's about ensuring the well-being of our planet for future generations.

As emissions rise, fashion grapples with growth

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IADS recently held a meeting all about the Women's Fashion brands to look out for in 2023. Based on market research, IADS and NellyRodi presented a curated selection of 10 brands that are trending right now.

Check out our selection of these brands, and the pictures, by clicking the button below!

Explore the brands and pictures here

FORMAL WEAR

RECTO

Recto is named for the right hand page of a book, alluding to what is yet tobe written. The word is formal and neutral, which is reflective of the brandsidentity. The RECTO label focuses on sleek staples with neurtral tones,making the pieces ideal for a minimalist or capsule wardrobe.

Check out the Recto website here

CHECK OUT recto's INSTAGRAM

TOVE

Tove curates a collection of elevated feminine pieces that transcendseasons and transition easily between occasions. They set out to create aminimal and refined wardrobe for the modern woman using expertcraftsmanship and luxury fabrics that are of the finest quality, natural,organic, and recylced with environmental and social certifications.

Check out the tove website here

check out the tove instagram here

THE GARMENT

The Garment is founded by a duo who have been inspired across decadesand have a deep affection for vintage garments. This can be seen in theirpieces which feature impeccable knitwear and precise tailoring in achromatic palette balanced between gray, white, and black. They focus onmaking beautiful garments in a more responsible manner through sharingtheir fabric and garment makers, offsetting CO2 emissions, and usingresponsible fabrics.

Check out the garment website here

check out the garment instagram here

DAILY WEAR

ALÉMAIS

ALEMAIS is a contemporary band that focuses on artisanal techniqueswhile respecting traditional craft. They use natural, durable and organicfibres to create unique pieces with fun and colorful prints.

Check out the alemais Website Here 

check out the alemais instagram here

7115 BY SZEKY

7115 is a design studio founded in New York City with a focus on creating an artful and robust wardrobe. They create classic and timeless pieces with a minimal and raw aesthetic in a neutral color palette. With each piece being expertly crafted and tailored, the brand aims to provide functionable and comfortable clothing that will last for years to come.

check out the 7115 BY SZEKY website here 

check out the 7115 BY SZEKY instagram here

TRENDY / CONTEMPORARY WEAR

PALOMA WOOL

This Barcelona-born brand is inspired freely by the act of getting dressed. Paloma Wool blends notions of community with artisanal qualities and a distinctly elemental aesthetic inspired by land and cityscape. Pieces are locally produced and often desgined in collaboration with local artists.

Check out the Paloma wool website here

Check out the paloma wool instagram here

ESTHÉ CLOTHING

ESTHE is a contemporary fashion brand based in Greece with a curated range of unique pieces. The brand is committed to sustainable practices and invests in local communities. Their pieces are feminine and relaxed, featuring nique pleating techniques, sophisticated shapes and dynamic textures.

Check out the esthe website here 

check out the esthe instagram here

INNOVATIVE WEAR

PH5

An advanced contemporary women's brand that aims to to inspire people to completely rethink knitwear and tell the world that knitwear is more than just a winter fabric. The brand leans towards edgy with a touch of feminitiy, combining whimsical designs with architectural dimensions of knitting techniques and even features UV reactive pieces.

Check out the PH5 website here 

CHECK OUT THE PH5 instagram here

OCCASION WEAR

MINUIT

MINUIT is a combination of industrial NYC, classic Paris, androgynefeminine, past and future. Their pieces are minialmist and sophisticated, with a delicate and feminine approach. With pieces that are full of texutre and functional, the creators share their love of art and architecture through their clothing.

Check out the MINUIT website here

CHECK OUT THE minuit HERE

MIRROR PALAIS

Mirror Palais is an NYC-based brand most known for its dresses which arevintage inspired, delicate, plafyul, and feminine. The brand features piecesthat are lingere-inspired and unique yet timeless.

Check out the Mirror palais website here

check out the mirror palais instagram here

CHRISTOPHER ESBER

Christopher Esber is an Australian designer who has built a globalreputation for contemporary tailoring with a sophisticated approach. Hiscollections are innovative and radiate confidence with elegance,minimalism, and laid back sensuality.

Check out the CHRISTOPHER ESBER website here

Check out the CHRISTOPHER ESBER instagram here

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The IADS attended the 2023 edition of the Global Fashion Summit which took place from June 27th to the 28th in Copenhagen. This year’s theme was “ambition to action” and was an opportunity for industry leaders and professionals to share their knowledge, tools and experience to help shift the industry from vague aspiration towards concrete implementation to achieve a net-positive industry.

The overall tone of the summit was rather ominous - the clock is ticking, as 2025 sustainability targets are approaching quickly and seem unachievable, 2030 targets are the new focus as the global climate emergency becomes more pressing, and the fashion industry is not moving fast enough. In efforts to push the industry forward, the conference was an opportunity for industry leaders to share actionable case studies, step-by-step guides and conversations aimed to simplify complex topics. The IADS highlights the key takeaways and important resources for our members below.

Collaboration is key

The topic of collaboration when it comes to sustainability is nothing new as the industry has already established that working together is vital in order to see real progress. The crown princess of Denmark opened the first day of the summit and urged the industry to “work together locally and globally.”

Efforts to collaborate across the industry have already been established in recent years, one of the most notable initiatives being The Fashion Pact. Eva von Avensleben, Executive Director and Secretary General of The Fashion Pact, highlighted the importance of adopting unified methods and fostering a collaborative mindset throughout the entire value chain. She stated, “This means we need to include all stakeholders in conversations from suppliers and manufacturers to retailers and brands.”

Conversations regarding the inclusion of all voices from the value chain were a major talking point across both days. Hakan Karaosman, Professor at Cardiff University described supply chains as social economical ecosystems and explained how supply chains and social justice go hand in hand. In his talk, he further discussed how inclusive decision-making from retailers, suppliers and supply chain workers is vital in order to achieve a just transition in decarbonising the supply chain and an overall more sustainable and equitable industry.

Strategic partnerships were also showcased heavily throughout the summit. Integrated logistics company, Maersk, joined Puma and H&M on stage to display the ways in which these alliances have helped reduce scope 2 and scope 3 emissions by making shipping and transport logistics more efficient. Thomas Liske, Global Director of Puma, shared that even though its increase in transport efficiency would cause Maersk a 10% decrease in its business, Maersk has adopted a bigger picture vision for the industry and showed its commitment to long-term goals when it comes to its sustainability promises. For H&M, finding relevant partners, as they did with Maersk, who aligned with their goals was a necessity on the greater sustainability journey to see true progress.

Other industry alliances have come together to promote circularity and transparency, such as the Vestiaire Collective, Chloé and EON collaboration. The alliance announced earlier this year, that the Chloé Vertical initiative sets to roll out EON-powered Digital IDs for each Chloé product including ready-to-wear, bags and shoes. The Digital ID allows consumers to access information regarding the product and material, assistance for repairs and resale options with Vestiaire Collective. The initiative is an industry first, and in doing so Chloé is making resale easier for customers while also offering them the opportunity to make informed decisions about the transparency, traceability and circularity of their products.

On a wider scale, LVMH’s Antoine Arnault called for a luxury-specific sustainability pact to create a space that allows actors in the luxury sector to aggregate together to exchange best practices, share suppliers and more. He believes that if the luxury sector wants to see meaningful change when it comes to sustainability, coming together – even as competitors – as necessary.

LVMH wasn’t the only one offering an olive branch to competitors in an effort to work collaboratively. Allbirds unveiled their zero-carbon shoe, "M0.0NSHOT", along with an online toolkit, "Recipe B0.0K", which provides detailed information about the shoe's creation process to allow other businesses and rivals to draw inspiration to make their own sustainable products.

Crafting the narrative: How to communicate around sustainability

Setting targets and shifting business operations to achieve a sustainable business model is only one piece of the puzzle, and retailers and brands are now considering what the best practices are when it comes to communicating their sustainability efforts to consumers. In today’s world, taking a stand on sustainability is no longer a nice-to-have, but rather a necessity, and green hushing, when organisations stay silent regarding their sustainability efforts in an effort to avoid greenwashing accusations, is no longer acceptable.

In a talk titled ‘What comes next for communicating sustainability?’, the panelists discuss the ways organisations can properly communicate this complex topic to their consumers effectively. The impacts of greenwashing are damaging, and consumers are pushing back on greenwashing claims and are demanding to be informed by retailers.

According to Shakaila Forbes-Bell, Founder of Fashion is Psychology, consumers do not want brands flooding them with information and policies, but rather they want accurate information allowing them to be well-informed. Furthermore, she states that consumers desire the power to make informed decisions and require positive reinforcement that they are making good decisions by choosing sustainable products, and retailers who provide positive reinforcement can differentiate themselves from the competition in the eyes of the consumer.

When it comes to avoiding sharing misleading information, the panellists urged retailers that they ensure their statements are science-based and must include accurate and robust data in order to substantiate their claims.

Other panellists reiterated the importance that businesses should not treat sustainability as a marketing trend and instead need to make a commitment to make sustainability marketing systemic and to avoid getting caught in the cyclical marketing trends.

To further help businesses communicate around their sustainability efforts and actions, the United Nations Environment Programme (UNEP) and the UN Climate Change launched The Sustainable Fashion Communication Playbook, a guide designed to outline how to align fashion communication with global climate goals. It offers actionable frameworks for communicators to counter misinformation and greenwashing, reduce messaging the perpetuates overconsumption, redirect aspiration to more sustainable lifestyles and empowers consumers in their role as citizens to demand greater action from businesses and policymakers.

UNEP also presented The Eight Principles for Sustainable Fashion Communication, which includes a list of dos and don’ts, checklists and case studies for communicators to reference.

Resources like the ones provided by UNEP are key as the era of superficial sustainability claims and unethical practices are nearing its end as policies will compel companies to take full responsibility and accountability.

Regulation and profitability: An age-old question

The industry is subject to regulation coming down the pipeline, especially in Europe. The conference featured various conversations on policy, attempting to make complex regulations easier to understand.

What was of consensus, however, was that regulation is needed – the fashion industry will not change unless this happens. So now the industry acknowledges that regulation is needed what next?

Many businesses are struggling with the incoming regulations as there is a huge lack of resources. Not all brands and retailers have equal access to resources and businesses are operating in different countries with different policies coming from all directions, and many are finding it hard to stay afloat, unless they are a big industry player that has ample access to resources. So, what could help mend this unequal playing field and lack of resources? Harmonisation from policymakers can help, but a vital resource that many businesses need for survival is money. Investment and cash flow will be necessary for businesses to keep their heads above water as the slew of regulations ensues.

For brands and retailers, in a talk titled, ‘The Race to Net Zero: Decarbonising the Supply Chain’, panellists emphasised the importance of investing in tools that help measure sustainability efforts. For example, Marks & Spencer and Target are harnessing impact intelligence platform, Worldly, that delivers data specific to supply chain, products and operations to help retailers improve its product sourcing, carbon footprint and more. James Schaffer, Chief Strategy Officer at Worldly, discussed how platforms like Worldly can be the key needed to help the industry close the data gap by providing data, and in turn, insights.

We have also rounded up a selection of interesting startups that may be worth investing in for our members to support their path to sustainability:

• Carbonfact: Scalable life-cycle assessments to help brands and retailers lower their carbon emissions.
• IDFactory: End-to-end global supply chain traceability solution made to address the following challenges: lack of traceability, lack of transparency, supply chain disruption risk and supply chain sustainability risk.
• Reverse Resources: SaaS platform to match textile waste with the best possible recycling solutions, enable predictive transparency and build data-driven supply chains.
• Retraced: Platform that supports fashion and textile companies to digitise and trace their supply chains, efficiently manage their compliance data and gain full transparency down to the raw materials.

Conclusion

While we have seen little pockets of progress over recent years when it comes to sustainability, it is safe to say that the fashion industry is not moving fast enough. The overall mood of the conference was somewhat ominous as business leaders feel the pressure of facing crack-down regulations in the EU. While regulation is needed to see real progress and change, the transition to comply is no easy feat for businesses as they try to remain profitable.

2022 White Paper

Credits: IADS (Kaitlyn Lim)

DE PRATI STORE PICTURES

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Following the IADS CEO meeting in Mexico City last May, where IADS members were able to visit the latest developments in El Palacio de Hierro’s flagships (Coyoacan, Polanco and Perisur), the IADS had the opportunity to travel to Ecuador to discover the De Prati stores. The purpose was to understand more about the market, the company and the vision of the CEO, Priscilla Altamirano.

A rather small country when compared to its neighbours (Colombia and Peru), Ecuador is classified as an upper-middle-income country, with a developing economy dependent on exports (agricultural products, oil). The country regularly topped the South American GDP growth charts in the 00s and even ranked the second most performing country in 2022. Since 1999, extreme poverty decreased significantly, and employment increased, fueling the growth of the middle class which aspired to consume.

De Prati, which was founded in 1940 in Guayaquil, the trading centre of the country, managed to fulfil these needs, becoming the largest department store company in the country, with 16 stores and an e-commerce website. Unlike its European counterparts, which had available resources to learn from each other and innovate (thanks to organizations such as the IADS, but also through a vast array of suppliers and brands, and the lack of regulation at the time which allowed unrestricted data exchange), De Prati, while always being the leader in the country, had to invent each step of its development by itself, by developing in-house what was needed and finding solutions on its own.

The result is a company that has been posting an average EBIT margin of 20% and a net profit margin of anywhere between 13 and 15% for the last decade, with a much-loved retailer brand and strong social involvement. This is not too bad for a business that has developed almost in a closed circuit, which makes it an interesting use case to review the company’s competitive advantages, as well as the stores that we visited.

Company history and background

De Prati was founded in 1940 by Italian entrepreneur Mario De Prati and his wife Domenica Cavanna, as a fabric store, which later also included homeware and tableware. After a fire destroyed the initial location, the first department store per se opened in 1951 in Luque Street, in Guayaquil, a location still in operation today. The company was a pioneer in many ways: it introduced the first payment card in the country, Credito De Prati, in 1968, the first national private label business in 1973, with local production, and the first Ecuadorian e-commerce website in 2007 (the website had already been launched in 2002).

The Credito de Prati card proved instrumental in establishing De Prati as a leader in the market, as it allowed it to capture and retain a significant share of the clientele who has access, in addition to credit, to special offers and perks (for instance, customers get a 30-day full guarantee with the possibility to return the product with no questions asked, a much-loved option that explains why, in the country, brands such as Apple and Samsung perform 80% of their business with Credito De Prati). Today, the program involves 1m active customers (Ecuador’s total population is 17m but the truly addressable target clientele base is much lower than that).

Also, when it comes to fashion, Ecuador has long remained isolated from the international brands’ sphere of attention, for its relatively small size as a market. For instance, Inditex came to Ecuador only in 2015 (introducing a new logic in the market based on markdowns and high-frequency seasonality). For that reason, De Prati’s private label business allowed them to develop a faithful client base, looking for interesting designs at low prices. 18 in-house designers develop the Women’s, Men’s and Kids’ private lines which are then manufactured in the country.

Today, the company operates 16 stores (7 in Guayaquil, 7 in Quito, the capital city where De Prati started operating in 1986, one in Manta and one in Machala, which opened in April 2023), and a website, to accommodate the needs of 18 million yearly visitors (online and offline), all powered by 2,300 associates. 50% of the total business is made in the historical location of Guayaquil, while Quito, more upmarket, represents 40%, and e-commerce close to 6% (this does not include digital activities related to stores, such as WhatsApp sales or instore iPad ordering, which are all attached to stores).

Every single store is positive and contributes to the final result of 20% EBIT margin on average, for a total turnover of $270m in 2022 (the same amount as the previous record in 2019) and an expected $305m in 2023. The whole business is 100% wholesale, as the company does not operate concessions or consignment (for big-ticket items, such as domestic appliances, the company “showrooms” the products and dropships them from the suppliers’ warehouses). In terms of categories, fashion represents 80% of the business, home 9% and tech 8%.

During the visit in Guayaquil, it was clear that each store had been developed according to a specific context, and for that reason, was perfectly adapted to its environment, while always keeping a very identifiable layout and branding.

Policentro: making the most of the opportunities in the company’s most profitable location

Policentro is the oldest mall in Guayaquil, and by far the most profitable location for De Prati. The specificity of this mall is that locations are not rented by retailers, but owned, which means that the mall itself is very similar to a condominium in terms of management (and this can create some inertia when it comes to renovating it or making sure that the brand and product offering remains relevant which raises some questions for the future).

For historical reasons based on real estate opportunities, De Prati operates three different units in the mall, each dedicated to a category: a women’s store (RTW, accessories, shoes and beauty), a men’s and kids one, including sport and electronics, and a home & decor store, for a total of 5,000 sqm. The core business is fashion (women, men and shoes), of which 70% is done with private labels. Women’s fashion itself represents 27% of the business, and Cosmetics and beauty 11%. For that category, even though brands are supplied by third parties, De Prati keeps firm control of the brand selection, price point, quantities in stock and promotions.

All three units have been designed with standardization and flexibility in mind, in order to be able to change the store overnight. This approach proved instrumental in dealing with the Covid-19 pandemic and allowed them to transform stores in e-commerce fulfilment centres during the 3 months of lockdown-related closures.

In the women’s store (due to be refurbished next year), most of the RTW space is dedicated to private labels, but third-party brands, such as Springfield or Veromoda, are presented in either dedicated branded spaces or a multi-brand testing space for the smaller ones.  In shoes, 80% of the business is achieved with third-party brands (Steve Madden, Michael Kors).

The men’s store was recently refurbished with the help of a Mexican designer and includes more visible third-party brands, such as Springfield or Aeropostale, presented in a very dynamic and airy concept, that slightly differs in the formal section, compared to the contemporary or the sport ones. The kid’s section is a mix of branded locations and generic displays. The category is extremely competitive in the country. Finally, a small electronics location presents a selection of products, completed by an “infinite aisle” option on digital screens, where customers can order from a wider selection and then pay at the cash desk.

The home stores are located on the first floor of the mall, where many services are available (banks and post offices). The location used to be the kid’s store in the past and that was the most profitable location of the whole mall. In the home category, 40% of the business is made with home textiles.

Overall, Policentro is a surprising location as all categories are spread over the mall in different locations. The fact that De Prati was able to purchase the locations (and amortize them) explains the high profitability of these operations overall, however, the disadvantage of split spaces is felt in terms of cost of people and refurbishment.

San Marino: a “lab” store in an upmarket mall

San Marino is a mall located 5 minutes away from Policentro by car and is very different. While inertia related to the ownership is felt at Policentro in terms of overall customer experience, San Marino feels much more dynamic, thanks to a very different set of tenants (including fashion names ranging from Pull & Bear, H&M to Polo, Tommy Hilfiger or Esprit) and a permanent renovation that allows the mall to look very modern, even though the mall layout is very disconcerting in terms of brands adjacencies.

The brand assortment implies that in that mall, the competition is harsher than in Policentro, which is why the De Prati store is relatively small, 2,500 sqm (vs. 6,000 sqm on average for the rest of the stores), and pushes a “curated’ assortment, only focused on women, men and young fashion.

Here again, the store fixtures are very flexible but they allow customers to understand where they stand in terms of product categories, which is not specifically the case in Policentro.

This store, significantly smaller than the others, is mostly used to show De Prati’s relevance in terms of fashion in a mall where the brand offer is one of the edgiest in the country. For that reason, this is where the company tests new brands, and also new ideas for its own private labels. This is also where De Prati can test the adequacy of its basics offer, which is planned to grow by a double-digit rate of up to 30% of the business in fashion, in order to make the most of the fact that these items are never marked down.

Plaza Navona: build-a-store

Plaza Navona is a real estate program that has been developed by De Prati, up north in the city on the way to Samborodon, a very wealthy suburb. This is why the relatively modestly sized mall (26,000 sqm) is positioned as a family shopping centre, aimed at the posh neighbourhood but also the middle class that started to relocate to Samborodon a few years ago. The mall is managed by De Prati itself, with a new team that has been created on the spot.

This also explains why the De Prati store concept of 7,000 sqm is slightly different from the other ones visited so far, and it is the most recent one (the new store in Machala, opened in April 2023, takes on this concept). The fixtures are lower and allow visitors to embrace the whole store easily, while also giving an impression of lightness and modernity. Third-party brands are much more visible than in the other stores (and in higher proportion), including some specific to this location (Oscar de la Renta, Chaps for men).

Plaza Navona is also the store where De Prati tests its innovative processes, both in customer-facing solutions and in behind-the-scenes improvements:

-    In customer-facing solutions, digital screens allow them to scan a barcode and check the stock availability of the product in all De Prati stores, book it, and pay for it with a nearby salesperson. Also, mobile POS is being tested in the store.

-    In the behind-the-scenes improvement, the store has been the one in the chain to have real-time visibility on its stock updated every 15 minutes thanks to a system developed internally from an SAP platform. The development team is currently deploying a solution allowing store staff to be able to immediately locate a product in the stockroom, which also gives useful data in terms of forecasts and auto replenishment, in addition to significantly reducing the waiting time for customers when asking for a specific size or colour.

Plaza Navona being closer to a place where many wealthy customers live, is a store destination for them when they want to equip their homes. For that reason, the share of home and electronics is higher in that store when compared to the other ones, with the pick-up section for online purchases is on the first floor, in the home and electronics section. In terms of stock management for these two product categories, De Prati only buys on firm conditions a certain stock amount in order to be able to display products in stores, and also guarantees larger stock quantities in the supplier’s warehouse. In that way, the stock imported for Ecuador will be reserved as the first priority given to De Prati.

This store represents the state-of-the-art savoir-faire at De Prati today, as well as a first incursion in the domain of mall development and management. A larger project of 90,000 sqm, is planned for 2026 and will also be a premiere in the country with such a scale.

Downtown: where everything started

We had the opportunity to visit the first historical location of the company as well, which allowed us to measure the level of innovation and progress made by the company between its first location and the latest store in Guayaquil, Plaza Navona.

The nature of the location has changed with time, as the area evolved, from being mainly residential in the ‘40s, to being more of an office and banking area. As a consequence, traffic patterns are different from the other stores which are close to the places where customers live.

Due also to its history, the store is spread across different buildings with different levels, leading to having floor differences on some floors. Only one building has windows, which also explains why the feeling is different, less airy than the other stores, an impression reinforced by the low ceilings and the rather old concept.

The last floor of the store is dedicated to the outlet section, as well as the customer service desk.

The specificities of the business at De Prati

De Prati is special for many reasons, as it has developed its own way in several areas of operation, to reach efficiency: private labels, BOPIS, and social commitment.

Private labels represent 70% of the total business and are designed in-house, fabrics are bought in Asia and products are made in Ecuador. Collections are kept in store according to a very simple calendar: they remain at full price for 90 days (in fashion) or 120 days (in home), then they are automatically marked down at 30%, 50% and then 80%, before being taken out of stores. This scheme allows the company to avoid having seasonal sales in the store (including third-party brands): during seasonal events, it is not about product clearance, but a maximum of 30% discount off fresh products, to which customers can add an additional 10% discount if they own the De Prati card. Given the size of the private label business in the fashion category, which represents 80% of the total business, this system allows them to have a very healthy margin structure, as overall the company enjoys 70% of sales at full price and promotions capped at 30% of the business. However, in order to remain relevant with the younger clientele, the plan is to introduce more third-party brands (international labels), from 19% today to 55% in 2026.

When it comes to picking up online sales, the store pick-up is the only free option, which allows 60% of all e-commerce orders to be picked up in stores. For that reason, e-commerce operations are profitable and total logistics costs for the company are limited to 6% of total sales. Also, returns are kept at an extremely low level (less than 1% in-store and 3.3% online) thanks to this approach and in spite of the 30-days-no-questions-asked return possibilities offered by the De Prati Credito card.

Finally, De Prati is also very much involved socially speaking, in addition to remaining committed to Ecuadorian production for its private labels. In 2014 it launched the ‘Mujeres Confeccionistas’ training program which allows women to grow and become independent. The program focuses on 3 pillars:

-    Improve self-consideration and provide a way to generate new life opportunities,

-    Teach entrepreneurship and basics in management,

-    Teach how to use social media to develop a business.

This program is open in every city where De Prati has a store and less than 5% of graduates work in factories after attending it, as they prefer launching their own activity and becoming more empowered. De Prati has also made agreements with national and Latin American universities in order to help its employees to validate their knowledge with diplomas.

Going further: for the sake of evolution

The most striking point about De Prati is the notion of permanent adaptation. The context is challenging: more brands are entering the country, prices are becoming an issue for most customers, and from a social point of view, violence is increasing, to the point of influencing customer behaviour as they now come earlier in the day and avoid staying until 6:30 pm when it is unsafe in the streets.

In order to face those realities, the company bets everything on its teams and their capability to develop and deploy new ideas, from customer processes to new systems. De Prati is currently developing an app which will provide a new purchase option for its customers, while also sticking to the needs of the younger clientele it wants to attract, in complement to a new brand offering including more international labels.

That permanent capability of adaptation has created a sentiment of pride to belong to such a company, which is palpable when discussing with the teams, and reinforced by the larger commitments of De Prati, which announced in 2022 a commitment to invest $80m in the country, in order to contribute to its development. Feeling this pride was probably the most impressive during the visit, as it really appeared as a true competitive asset for De Prati in the future.

Credits: IADS (Selvane Mohandas du Ménil)

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The IADS attended the 2023 Viva Technology conference that took place from June 14th to 16th in Paris to scout the key trends and interesting startups that could be of value to our members. We have highlighted the most relevant retail trends, topics and solutions that were strongly featured in this year’s edition of VivaTech.

VivaTech 2023 reflected the current state of the world – AI is all the buzz! Meanwhile, AR and web3 technologies are also still a significant focus as businesses gain a better grasp of how to leverage these technologies properly. And of course, businesses cannot write off the topic of sustainability, as the impending regulations are looming over their heads.

AI: the main attraction

AI undoubtedly dominated the show during this year’s edition. As Artificial Intelligence, specifically OpenAI, has taken the world by storm, ChatGPT has almost become synonymous with AI. This is not surprising as many retail organisations are harnessing this technology in a variety of ways. For example, Zalando has launched a ChatGPT assistant, and Hyundai department store is testing an AI system similar to ChatGPT for their copywriting. Other retailers have also been tapping into ChatGPT to make their chatbots smarter and VivaTech was the occasion to show off some of these interesting use cases.

Case study: Carrefour teams up with OpenAI to harness the powers of generative AI

In a rather timely manner, Carrefour announced its plans to launch a generative AI-powered shopping experience with OpenAI one week before VivaTech. Inside the exhibition, Carrefour had its own booth showcasing the ways in which it aims to utilise generative AI to enhance the customer experience and transform its working methods.

The retailer introduced a new AI Chatbot based on ChatGPT, called Hopla, which has been integrated into its website to assist customers with their daily shopping. Customers can seek assistance from the chatbot when it comes to selecting products within a specific budget, considering dietary restrictions and food constraints, or generating menu ideas.

Through the collaboration with OpenAI, Carrefour is also employing AI to enhance its product descriptions and streamline internal procurement procedures. These initiatives form a crucial component of Carrefour’s plan to enhance overall customer satisfaction and revolutionise its operational practices.

Although ChatGPT and AI are somewhat synonymous, AI overall should not be reduced to ChatGPT alone. Below is a selection of AI-powered startups scouted at VivaTech that may be of interest to our members.

• ChatLabs: AI-powered social experience platform that generates a unique, personalised journey for each customer based on the creative context of social media and level of engagement with brand content. ChatLabs was a finalist for the 2023 LVMH Innovation Award.
• Safira.ai: AI-based solution that generates, optimises and enhances online retailer’s product data to create an engaging shopping experience. It automates and professionalises the steps required to run an e-commerce shop.
• Vrdrobe LLC: Mobile app that harnesses AI technology to enable the user to try on clothes, shoes and glasses with their camera, thanks to AR models.
• Neobrain: Digital platform with three solutions based on AI to help companies match talent to opportunities, turning skills into collective performance. The platform was awarded the number one talent marketplace solution in Europe.

AR and virtual experiences: the future is digital

Augmented Reality and other digital experiences were also heavily present throughout the exhibition, likely due to the fact that businesses now have a greater understanding of how to leverage the Metaverse and other Web3 applications. Notably, many luxury brands like Dior, were showcasing their digital experiences as a means to provide distinct consumer experiences.

Case study: Emperia: Creating an immersive virtual store for Bloomingdale’s

Emperia is an immersive virtual store platform for retailers and fashion brands to create their own virtual and Metaverse experiences. Some of their clients include Ralph Lauren, Lacoste and Dior Beauty, as well as a department store client – Bloomingdale’s.

Bloomingdale’s launched their first-ever virtual store with Emperia in celebration of the company’s 150-year anniversary. The virtual store featured games, special surprises and a Bloomingdale’s exclusive collection for its anniversary celebration.

It also included rooms dedicated to brands, allowing Bloomingdale’s to sell virtual spaces to brands such as Chanel, Ralph Lauren, Nespresso and others. Essentially, it recreated the traditional retail concept of the concession model and transformed it into an e-concession in the virtual world.

Launching a virtual experience proved successful for Bloomingdale's as it was crucial in creating a new, innovative online shopping experience for customers and providing a platform for concessions.

It was evident that digital and innovative experiences remained at the forefront of businesses' minds at VivaTech, as AR and other virtual experiences were prominently featured in the exhibition. Here is a selection of intriguing startups in the sector that we discovered at this year's salon:

• Kivisense: AR-powered solutions that provide hyper-realistic try-ons for various store categories, including clothing, footwear, watches, handbags, eyewear and jewellery.
• BryanThings: Digital ‘retailtainment’ company that designs digital point of sale solutions for global and luxury brands, counting L’Oréal, Dior and Le Bon Marché among its clients.
• Cobalt: Merges digital and physical retail through a 3D immersive Metaverse experience for VR, desktop and web. It links real products to NFTs with NFC C-link chips, ensuring authenticity, supply chain transparency and data integration with logistics and CRM systems.
• GK Concept: Agency that creates bespoke interactive experiences in-store, strengthening the connection between consumers and brands. They design, develop and manufacture their own retail technologies.
• Veris Behavior: Develops VR, neuromarketing and data technology to conduct immersive consumer studies, assisting companies in the retail, consumer goods and hospitality sectors in validating their commercial and marketing strategies before launching to the market.
• Vyking: 3D and virtual try-on technology with an end-to-end platform, enabling fashion retailers to seamlessly create, scale and track 3D and AR shopping experiences both online and in-store.

Sustainability: still a pressing topic

Sustainability remains a pressing topic across all industries, with upcoming regulations driving businesses to prioritise their Scope 3 emissions and daily operations. However, the focus on sustainability was somewhat less prominent at this year’s conference than the last.

Kristen Davis, CEO of CinqC, chaired the panel discussions titled ‘Shifting to a Sustainable Business Model’. The panel included Julie Linn Teigland, Area Managing Partner EMEA at EY, Marie Ekeland, Founder and President of 2050.DO and Claire Martin, VP of CSR at CMA CGM. Together, the panelists discussed the importance for businesses embarking on a sustainability journey to look beyond individual countries or specific sectors and to consider ecosystems. Why? Examining ecosystems offers greater access to talent, resources and knowledge, and serves as a crucial avenue for businesses to observe how larger companies are collaborating with startups and other organisations to pave the way towards achieving a more sustainable business model.

Here is a selection of interesting startups in the sustainability sector that we pulled together from this year’s edition:

• EON: A product cloud platform that delivers business value with a digital ID for every product. This enables retailers to trace products from end-to-end, unlock and scale new business models, instantly authenticate their products, and engage customers long after the sale.
• Finds: A solution that serves as an overstock matcher, connecting fashion brands with surplus inventory to resellers, NGOs, and recyclers. Its aim is to maximise monetisation and achieve circularity.
• Carbon8: A circular impact company that converts carbon and industrial residues into sustainable value streams. Through its solution, it seeks to assist heavy industries decarbonising while transitioning to a more circular operation.
• Woola: A company that takes waste wool, material that would otherwise be discarded, and transforms it into a sustainable alternative to plastic bubble wrap.

Other retail solutions

Department stores are complex, centuries-old organisations who are constantly on the market for new solutions to help them stay relevant and work efficiently, here is a selection of startups that we scouted at VivaTech that we believe are relevant for department stores:

-    Alpha: A clienteling platform that simplifies and enriches the sales associate-client relationship. Sales associates can offer a "Red Carpet" like shopping experience to their clients thanks to a communication channel filled with product inspiration, client requests, style sessions and one click buy & try capabilities.

-    Fabriq: An app that combines digital tools for improving shop floor management, aiming to enhance the efficiency of shop floor staff, expedite the resolution of operational issues, enable seamless information flow, and leverage operational data to enhance daily decision-making.

-    Bloom: A business intelligence platform that analyses discussions and engagement and harvests data on social media to generate strategic insights for decision-makers to help brands leverage opportunities and detect risks.

This year’s VivaTech was also an opportunity for influencers to discuss the major advancements taking place in the wider technology industry. Among the overall 150,000 attendees, influencers such as Elon Musk, Bernard Arnault and Marc Benioff were in attendance, including French President, Emmanuel Macron, who discussed the AI landscape in France. This is a small piece of the fruitful exchange that VivaTech 2023 offered, and we can't wait to see what the next edition of VivaTech holds. See you in 2024 VivaTech!

Credits: IADS (Kaitlyn Lim)

THAT CONCEPT STORE PICTURES

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The IADS recently had the opportunity to visit THAT Concept store, located in the Mall of the Emirates, which represents a new breed of retail in a region dominated by malls and department stores.

THAT Concept store, taking on many of the concept-store codes known elsewhere in the world, includes many of the recent innovations spotted here and there across the planet, often made by department store companies looking to reinvent themselves through smaller formats, acting as showrooms located closer to communities of customers. Interestingly enough, this concept store is owned and operated by the Majid-Al-Futtaim Group (MAF), which uses it both as a window of its retail savoir-faire and also as a testing ground for brands.

For all these reasons, we review our store visit below, in order to understand how a mall owner turned franchise operator is using a concept store to deepen its retail expertise in all formats and test brands for further expansion, and share learnings for department stores across the world, especially for the ones currently experimenting new formats.

Company history and background

The eponymous individual founded the Majid Al Futtaim group (MAF) in 1992. Majid Al Futtaim (1934 – 2021) was the cousin of Abdulla Al Futtaim, head of the Al-Futtaim group, founded in 1930, an integrated commercial, industrial and services organization in the UAE, Qatar, Egypt, HK and Macau, and specialized in automotive, consumer electronic retail, and franchised retail (Robinsons, IKEA, Toys’R’Us and Marks & Spencer). Both cousins split in 1992 with Majid willing to focus on retail real estate.

MAF is now divided into 4 divisions:

-    Properties, including ownership and operations of 29 malls (including the Mall of the Emirates in Dubai, the Mall of Egypt in Cairo, the Mall of Oman, the Mall of Saudi, City Centre Bahrain, Mirdif City Centre, City Centre Muscat and City Centre Suhar commercial centres) for a total of 1.8m square meters, and 13 hotels and communities,

-    Retail, including 450 Carrefour franchised hypermarkets and supermarkets,

-    Entertainment, including 580 cinemas and 4 brands such as Ski Dubai,

-    Lifestyle, including a selection of brands ranging from Lego to Lululemon, to All Saints, Hollister, Abercrombie & Fitch, and THAT Concept store.

MAF reported in 2022 a revenue of AED 36.3bn (€9,96bn, +12% vs 2021) and a net profit of AED 2.4 bn (€0.6 bn, -2% vs 21), of which the lifestyle division, to which THAT Concept store belongs, represented a revenue of AED 801m (€199m, +38% vs ’21) and an EBITDA of AED 25m (€6.24m, +317%).

The Mall of Emirates was opened in 2005 and boasts 245,000 sqm of retail spaces, with an occupancy rate of 98%. It includes 630 retail outlets, 80 luxury stores, 250 flagship stores and more than 100 restaurants, as well as Ski Dubai, a 500-seat capacity Community Theatre and Arts Centre, as well as Magic Planet, an indoor family entertainment centre.

THAT Concept store initial promises

THAT concept store was opened in January 2021 on 4,500 sqm and two floors, in an area of the Mall of the Emirates (Via Rodeo) which was previously dedicated to luxury mono-brand stores, now relocated either on the ground floor or in a new luxury section.

The promise of this opening was to bring a new perspective in terms of the shopping experience, in a market where immersive retail is omnipresent. Just like a true concept store, it is all about bringing a very special experience, combining fashion, beauty, art, and lifestyle products under one roof, completed by a full set of services, in order to cater for the needs of a demanding clientele. For those reasons, THAT Concept store is built on the following 6 key pillars:

1. An innovative shopping experience: the goal is to provide a fresh and immersive shopping experience by showcasing a wide range of handpicked products from both international and regional brands, usually (but not systematically) not available elsewhere in the UAE.
2. A curated selection: the store features a carefully curated selection of fashion, beauty, home, and lifestyle items, with the ambition to cater to a diverse clientele.
3. A platform for local talent: local and regional designers are able to showcase their work and connect with shoppers.
4. An art and culture scene: Art exhibitions, cultural events, and other interactive experiences are hosted, fostering creativity and promoting a sense of community.
5. Personalization and customer services, such as styling consultations and beauty treatments, are here to enhance the overall shopping experience and cater to individual needs.
6. Design and ambience: The store boasts a visually appealing interior design, with contemporary aesthetics that encourages exploration and discovery.

In addition to that, according to the store CEO, MAF also uses this store as a lab to test brands candidates for further expansion in case of success. Potential successful brands are assessed by gathering data in terms of try-ons, selection and purchases so that the group can engage in conversations with such brands in terms of distribution enlargement (MAF has the possibility to engage in franchised development in the region).

Visiting the store: how to bring something new on an oversaturated market?

First of all, one can say that the location of the store is not exactly the easiest, even though MAF (which owns the whole commercial centre) has implemented clear signage across The Mall of The Emirates in order to guide customers: THAT Concept store is located at the end of Rodeo Drive, in a space which used to host luxury boutiques flagships.

In that area, one can find a mix of luxury and fashion brands, such as Isabel Marant, Roger Vivier, Etoile, as well as gourmet food such as Ladurée, so the issue is not so much the immediate adjacencies, which all make sense. What is more problematic is on the one hand the series of hoardings still installed (Thom Browne, Bvlgari or even generic hoardings) which suggests that the revamping of the area is not yet finished and on another hand the proximity of Harvey Nichols (which has a clear high-end positioning) and Bloomingdale’s (more mass), which makes it difficult for something intermediate to position itself and capture market shares. In other words, it is difficult to get there, and there are many distractions on the way including competing value propositions.

However, once customers are in the store, the look and feel is radically different from anything available in the mall and probably in the whole of Dubai, with a profusion of innovative and edgy brands (more than 150 fashion brands such as JW Anderson, Simone Rocha, Paco Rabane or Vetements) all displayed in a holistic, proper and specific concept that reminds a bit of what Galeries Lafayette did in their Champs Elysées location.

The store concept is all about contemporary décor, making nods to the Arabic culture in a giant suspended display designed by local artists. It can be a little disconcerting as it is thought to be a space for exploration, so many retail codes have been reshuffled. The goal is to display a great edit in a uniquely designed space, thought to be versatile and adaptable to different situations (brands, popups, new spaces, etc..).

The store, which opened on January 21, was initially designed to be fully genderless and tried unprecedented ways of displaying products (e.g. shop by colours), however, this proved tricky for the region, which is why this approach was dropped during the summer of 22 when a new management team took over. The new GM, who boasts an extensive experience at Al Tayer Group and Emaar, worked closely with the Creative and Visual Director at MAF (also an Al Tayer alumni), and reviewed the zoning, with areas divided into categories and brands sometimes mixing gender (a nod to the initial intention).

The first floor directly leads to the jewellery area (the second best performing area after fashion, which represents 70% of the business) where brands are presented with THAT-specific signage (a common trait across the store which again reminds of the Galeries Lafayette Champs Elysées location). The product category is coupled with the very large and extensive sunglasses area, both presented on generic wall units and coloured carts, which really encourage customers to touch and try the products. A sushi restaurant completes the space, which will be replaced by a tea room with sweets in order to encourage all-day long lounging.

On the other side of the floor (as the very large Atrium divides the space and provides a great visual perspective on both the upper floor and the ground floor giving access to the carpark, even though it also complexifies the in-store journey), women’s fashion, shoes and accessories are presented in clearly divided spaces, with a special mention to the shoe space, which encourages try-ons and product exploration.

Private shoppers and salons are also available in this space and can be booked for now on the premises. An app allowing customers to book such services and also to connect THAT Concept Store to the MAF group loyalty program is on its way.

A very surprising element on this floor is the access to the elevator: to enter it, customers have to go across the recreation of a local supermarket (a ‘baqala’) selling only very typical brands resonating with every Middle East young customer (Oreo cookies, Lay’s and Pringles snacks, etc…). As a consequence, it really is a visually enticing magnet, and a smart way to upgrade this otherwise dead space. For now, the monetization of the whole installation is still to be fine-tuned, and ideas to connect this space to MAF-operated Carrefour hypermarkets were discussed during the visit.

The second floor is dedicated to unisex and male fashion, including streetwear and sneakers, beauty & cosmetics, as well as the home and design category (the third-best performing category). Again, special care has been brought to the overall experience and feeling, with strong visual designs and attention to detail (such as decorations integrated into the concrete flooring). The home and décor area, in particular, is extremely appealing and presents a selection of products and brands which is unmatched in the country.

On that floor, customers can also find an on-site hair salon, a barber, a nail and brow bar, as well as a yoga and fitness studio, with classes starting as early as 6:30 am in order to cater for working customers. When it comes to services, THAT proposes a very wide palette of options, from the tailoring service to the possibility to drop off laundry or ask for dry cleaning.

Finally, tech is all across the place, with smart mirrors in fitting rooms (allowing shoppers to ask for other colour or sizing options from the cabin), and interactive pop-ups for shoppers to try new tech. The idea is to further invest in tech in order to gather more data about brand successes and be able to leverage that data to consider further investing in brands (for instance, Santa Maria Novella is being tested that way).

Like it or not, one must say that the value proposition of the store is very different from what can be found elsewhere in the market, and would not even be out of place in any European capital (a feature that could raise the question of knowing if such a proposition is not too edgy, or perhaps early, for Dubai).

Are all promises fulfilled?

There are some elements in the concept that might be questionable, such as the location of the store as already mentioned, but potentially also the name itself, which might prove difficult to market on a larger scale (and which made writing this article difficult).

But the special sauce at THAT concept store is that it is run as a department store (in terms of back-of-store operations or brand purchases, all merchandise being own bought) but creatively managed like a concept store. This, completed by the size of the space (4,500 sqm), puts THAT Concept store in a category of stores which include department store companies-backed concept stores, such as Galeries Lafayette Champs Elysées as already mentioned, but also SKP-S, Coin Excelsior in Italy, U-Plex in Seoul, WOW in Madrid, Showfields in NY or, to some extent, the concept-store part at la Samaritaine in Paris or Bloomie’s in the US. THAT Concept store captures this current trend within department stores of having smaller formats, thought to be fully immersive and experiential, with a special display that takes distance from the traditional approach.

Having said that, the store promise is yet to be completed, as the perspective of being a lab to test brands is great but not yet fully operational, and probably very expensive to run if the purpose is only to test them. This is why it will be interesting to follow the evolution of the space in terms of tech equipment and additional experiential spaces, such as F&B offers, to assess to what extent MAF is ready to innovate in a market which is not particularly in demand of such innovations.

THAT Concept store is not a department store and does not claim to be. However, its approach in terms of the customer journey (especially by proposing a lifestyle approach rather than a category one) and store feeling is resonating with department stores’ efforts to reinvent the way they curate and present their offer, as well as their efforts to create a concept store feeling in order to assess their fashion credibility. It is a great inspiration for companies looking for ways to revamp their multi-brand areas with a specific brand identity and a compelling customer journey and visit.

For that reason, the store is an interesting visit, even though a bit frustrating when it comes to its present capability to gather data and truly act as a lab for brands, which is now the main focus of the managing team. However, it already managed to propose a radically different way to sell brands on the market, which has not gone unnoticed. While some are wondering if this is not too innovative for an otherwise conservative clientele, THAT Concept store provides a new option on the market and a refreshing take on how brands can enter Dubai and the GCC countries

Credits: IADS (Selvane Mohandas du Ménil)

What: A piece about why major US department stores are embracing tech to reduce the size of their stores.

Why it is important: Showrooming and smaller stores fleet might be the next step for department stores in the future.

The retail industry is shifting towards small format stores, as major department stores like Bloomingdales and Nordstrom open smaller locations to address revenue challenges.

These stores offer lower rents, fewer employees, and less inventory, resulting in lower overhead and higher profit margins.

However, to be successful, retailers must strategically curate their merchandise based on real-time customer behavior data. Understanding local audience preferences and offering the right products in the appropriate quantities is crucial for customer satisfaction and loyalty.

As customer behavior evolves, businesses should prioritize meeting individual customer needs to thrive in the changing retail landscape.

Department stores are getting smaller (and smarter) 

What: An opinion piece exploring the benefits of teaming up to build a better loyalty program.

Why it is important:  This is exactly what Central Group offers to Thai retailers with its own The One loyalty program.

Retail has embraced the concept of "poly-loyalty," where shoppers are loyal to multiple retailers rather than just one. As a result, "poly-reward" programs have emerged, where various loyalty initiatives form open partnerships to share member perks and insights, benefiting all involved. These programs offer several advantages:

1. Partners gain insights into each other's customers' purchase data, enhancing merchandising and marketing strategies.
2. Brands can partner with organizations that bring complementary capabilities and resources, opening up new growth opportunities.
3. Sharing operational costs and combining promotions across channels reduce expenses and increase customer touchpoints.
4. Offering flexibility in earning and redeeming points across multiple retailers and payment methods motivates members to be more active.
5. Faster redemptions in poly-reward programs encourage higher engagement and better accounting practices.

Poly-reward programs provide an attractive solution to the growing number of loyalty programs, offering more excitement and opportunities for all involved in the retail ecosystem.

Should retailers team up with their loyalty program? 

What: McKinsey’s latest consumer sentiment survey in Mexico reveals the lasting effects of the pandemic on consumer behavior.

Why it is important: The survey results show that the pandemic has had lasting effects on consumer behavior in Mexico. As optimism about the economy rises, businesses need to maintain their agility and respond quickly to meet the changing demands of consumers.

Consumers in Mexico are feeling more optimistic about the country’s economy and their ability to meet financial commitments in the coming year, but are still persistently looking for ways to spend less.

Looking forward to better days

30% of Mexican consumers expect their finances to be in better shape this year than last year. Unemployment rates have returned to pre-pandemic levels and real growth in consumption was significant at 6.5%. Additionally, the percentage of Mexican consumers who are optimistic about the country’s economics has increased to 46%.

In search of cheaper options

67% of respondents reported cutting their spending in the past year, which is 20 percentage points above pre-pandemic levels. 23% of respondents are trading down across their entire shopping basket, especially in commoditized categories. The trade-down trend has become more pronounced across all economic segments.

The pros and cons of e-commerce

While online shopping is no longer the main purchasing channel, its share is still higher than before the pandemic. Consumers report looking to e-commerce for better prices and convenience but worry about receiving faulty items.

Buying low-risk categories online

Mexican consumers are increasingly comfortable buying cosmetics, electronics and toys online.

Opting for home-cooked meals

Consumers are engaging in healthier eating habits such as eating at home, cooking from scratch, and buying locally sourced products.

Mexican consumers seek value and convenience

What: Coresight review the department store situation in China and tries to define a general direction for the market.

Why it is important: China continues to remain opaque and it is difficult to have an accurate and precise vision of the market. This report is no exception as, while it provides interesting data, it mixes several store formats and therefore does not fully address the department store situation. It is interesting also to note that Beijing Hualian Group (SKP) is not mentioned in the report, while SKP is the leading department store in the world.

In 2022, sales of department stores in China declined by 7.9% to $126.5 billion due to factors such as the shift towards e-commerce and increased competition from domestic and international retailers. In the coming years, department store sales are expected to grow at low-single-digit rates annually, resulting in a CAGR of 0.6% from 2022 to 2027.

Despite the challenges, there are positive factors driving department store sales in China, including cultural traditions and festivals, government policies supporting retail sector development, and consumers' urbanization. However, department stores also face hurdles such as lower consumer traffic, sluggish economic growth, and a high youth unemployment rate.

The department store sector in China is fragmented, with Shanghai Bailian Group leading the sector, followed by Chongqing Department Store and Easyhome New Retail Group. Many of the top 20 department store groups in China experienced declining sales in 2022.

To innovate and enhance offline shopping experiences, department stores are adopting various technologies, including self-service payment systems, member recognition systems, and interactive screens.

Looking ahead, department stores in China are expected to focus on growing their online sales, leveraging data-driven insights, and increasing online reach and shopper engagement. Embracing digital transformations and meeting evolving consumer demand will be crucial for their success in the future.

The report includes data from Shanghai Bailian Group, Chongquing Departmznt Store Co, Easyhome New Retail Group, Rainbow digital Commercial Co, Wangfujing Group, AEON, Liqun, Dashang Co, Chang Chun Eurasia Group, Wushan Group Co, Hefei Department Store group, Golden Eagle, Inzone, Wuxi and others.

The state of department stores in China 

What: Now that tourism has resumed, some wonder if it should not be limited, or capped.

Why it is important:  Opposition often come from locals. This could be soon a problem with department stores trying to attract at the same time local customers and tourists.

As international travel resumes after the pandemic, the issue of overtourism is becoming a concern again, especially in popular destinations like Venice and Fiji. European cities, including Amsterdam, are starting to take action to address overtourism.

Tourist transportation contributes to about 5% of global emissions, and the increase in international tourist arrivals has put a strain on cities' infrastructure and resources.

Some cities are considering reducing tourism or focusing on attracting "quality tourists" who spend more and have a positive impact on the local economy.

Others are implementing measures to spread tourists to less crowded areas. Amsterdam, for instance, is rebranding itself as a cultural destination, aiming to limit the number of visitors and move away from the image of a party destination.

The city has already started initiatives to reduce overstimulated tourism, such as closing sex workers' windows in the red-light district and banning outdoor pot-smoking in the city center. The Netherlands' government is also cooperating to cut the number of flights at Schiphol airport on environmental grounds.

Cities are facing the challenge of finding a balance between tourism's economic benefits and managing its negative impacts, seeking ways to ensure sustainability and preserve their heritage and quality of life for residents.

Tourists are back, is it time to tell them to stay away?