News
Glossier is coming to Sephora
Glossier is coming to Sephora
What: Glossier signs its first major wholesale deal with Sephora.
Why it is important: The first major wholesale deal for Glossier since it was founded in 2014 will dramatically expand the distribution of this DTC brand.
As a trendsetter for DTC and digital brands, Glossier’s partnership with Sephora marks a shift in beauty retailing. Online-only products are no longer a disruptive strategy as e-commerce is now an expected convenience for consumers. This move into Sephora stores will assist in Glossier’s ambition to scale the business larger than it could have alone.
The partnership comes with some perils as Glossier will need to adapt their previous experiential pop-ups into Sephora shop-in-shops. The price point is another discussion point between the beauty brand and retailer due to the positioning and target consumer of Glossier being lower than Sephora’s.
For Sephora, the partnership will entice younger consumers into its store. While for Glossier, the deal answers its consumer’s demand for the ability to shop products offline.
Shanghai consumption dropped 18 percent from January to May
Shanghai consumption dropped 18 percent from January to May
What: Despite a decline in consumption, analysts expect fashion retail in Shanghai to recover by the end of 2022.
Why it is important: The apparel retail sector which accounts for 24.2 percent of total spending, fell 17.8 percent to 146.177 billion renminbi, or 21.86 billion USD, during a two-month lockdown. Shanghai’s foreign trade also dropped more than 14 percent in May to 275.934 billion renminbi or 41.26 billion USD. Dan Wang chief economist at Hang Seng Bank China believes that macroeconomic policies are expected to stay strong. Beijing has yet to abandon its growth target of 5.5 percent making a rebound more likely.
The fashion sector’s rebound is predicted to recover by the end of the year but will rely on the confidence of young and wealthy consumers. The second half of this year is likely going to show some acceleration in economic recovery, yet the labor market will remain weak. Luxury spending is limited by rising layoffs, slower income growth, and mounting employment pressure for younger generations as unemployment rates reach an all-time high in the last four years.
Discounts remain in line with the season, as many brands are hesitant to meet the current consumer confidence by lowering discounts further. Kenny Chan, chief executive officer of IT China, remains confident in brands tapping into mainland China.
Bain and Kantar has also released a recent report advising brands to use 2022 to prepare for a strong rebound in 2023 validating an overall optimism around the Chinese market.
Holiday promotions come early this year
Holiday promotions come early this year
What: Predictions for the coming holiday season leave retailers cautiously preparing for uncertain loss.
Why it is important: Uncertainty around inflation, geopolitics and labour market strain is making retailers especially cautious in their holiday season preparations.
Agility will be a key skill for retailers navigating unpredictable losses in the coming months. Interviews with retailers, vendors, consultants and industry analysts have indicated an extended season with increased promotions and price breaks starting even earlier than in 2021. Second quarter spending by American customers is decelerating as many took advantage of Amazon Prime Day and back-to-school sales to get ahead on holiday shopping.
Eveningwear, dresses, party outfits and related categories for jewellery, footwear and beauty are expected to see good sell-through while casual apparel, loungewear, electronics and home categories are predicted to drop. In addition, 83% of shoppers will seek out sustainable brands and products this holiday. Retailers will test NFT drops, and 46% of shoppers said they would consider purchasing NFTs.
Being able to respond to the replenishment of best-sellers and the ability to manage the quantity of merchandise that’s not selling, will determine which retailers succeed this holiday season. Department stores and nimble off-price retailers will be best positioned for stable performance during this unpredictable season.
Fashion sales remain low for the first half of 2022
Fashion sales remain low for the first half of 2022
What: Fashion brands in France struggle to return to pre-pandemic levels of activity for the first half of 2022.
Why it is important: New behaviours of customers that were induced by the health crisis still persist today and are leading to lower traffic and conversion rates as well as consumer trade-offs that are being made against clothing.
Retail Int. for the Trade Alliance reports that sales are down 5% compared to the same period in 2019 for fashion brands in France. Store turnover is at a decrease of 9% compared to 2019. While the rise of e-commerce is up 68% compared to 2019, the trend’s plateau in 2021 only offsets the decline in physical stores by half for this year.
January of this year saw poor performance due to new variants of Covid-19 and a hopeful recovery in February was stamped out by the start of the Russian-Ukrainian war. May saw a spring upturn helped by favourable weather. However, the month of June showed a drop-in activity of 13% (vs. 2019).
The beginning of the discount period (from June 22 to July 2) saw a drop in sales of around -19% (vs. 2019), accompanied by a drop of 28% in traffic. While an increase in the average basket is observed (+12%), there is no visible increase in the conversion rate. The Alliance du Commerce reported that men’s fashion performed well, the children’s segment performed decently, and complicated trends for the women's and lingerie departments. Footwear is having a difficult period.
Consumer behaviour remains affected by the pandemic with consumers going in-store less frequently and favouring shopping outside cities. Outlets have seen an increase in sales of 8% over the period. Retail parks are also holding up well. And as tourism begins to increase, popular city districts are seeing an improvement in foot traffic and sales.
On average, fashion players have increased their selling prices by 4.1% as consumers are in search of good deals. Yet with brands still reeling from increased costs within the supply chain, the challenge to meet the consumer in the middle becomes a difficult balance.
The new minister of trade, SMEs, crafts, and tourism is looking to tackle investment support for brands, changes in taxation (additional depreciation, reduction in CVAE and Tascom, tax credit), capping of commercial rents, and financing assistance (reinforcement of loans offered by the BPI in particular).
Selfridges’ Formula One experience in London flagship
Selfridges’ Formula One experience in London flagship
What: An unique Formula One experiential retail space inside Selfridges to draw in fans, collectors, and visitors.
Why it is important: Selfridges will be the first to have a location of this kind. The space will include a real F1 car that will be available for purchase, a distinguishing attraction for high-paying customers. Selfridges plans to tap into Formula One’s growing audience which has increased 13% since 2020 to a global TV audience totaling 445 million people.
Following the British Grand Prix in Silverstone, Selfridges unveils a Formula One experience to tap into the F1 frenzy. The permanent retail experience is meant to be a destination for fans, collectors, and visitors. Smarttech Retail Group and The Memento Group have linked together to include a 2022 season F1 show car with unique memorabilia and collectibles to draw interest and visitors to the Selfridges London flagship. There will also be a virtual F1 driving experience in-store.
Sephora teams up with Complex Networks
Sephora teams up with Complex Networks
What: Sephora and the BuzzFeed Inc.-owned media brand are partnering for six months to produce beauty-focused content that can be found on Complex’s channels.
Why it is important: Sephora is tapping into the audience of Complex with the intention to uplift minority communities and show a commitment to their diverse brands and clients.
The “Beauty Beyond the Surface” hub will feature editorial and video series from recognizable names and faces in the lifestyle and sneaker space focused on the storytelling of personal beauty and style journeys. Bringing style and beauty together, this is Complex’s first official venture into the space. Sephora sees Complex’s lack of beauty coverage to date as an opportunity as opposed to a hindrance.
The partnership will entail a mix of online articles and videos, with content published on a weekly basis centred on a non-traditional approach to beauty journalism that targets BIPOC women.
Slow retail recovery due to China’s weak GDP
Slow retail recovery due to China’s weak GDP
What: The Chinese government plans an economic support package to stimulate the economy into recovery after strict lockdown measures have left market growth across sectors in contraction.
Why it is important: The luxury retail market is expected to see lacklustre growth as the housing market suffers and COVID-19 restrictions continue to affect China’s overall GDP.
According to a Barclays report, the investment bank continues to favour luxury names with a strong portfolio such as LVMH and Richemont. Luxury sales in Asia-Pacific are expected to climb by around 5% in the second half of 2022. However, cities such as Shanghai, Xi’an, Macau, and Hainan’s Haikou started imposing COVID-19 lockdowns in recent weeks, as the Chinese government is sticking to its zero-COVID-19 policy.
Despite being the world’s second-largest economy, China has the weakest GDP growth since the coronavirus outbreak, only 0.4% year-over-year in the second quarter. Retail sales grew 3.1% in May compared to the same time last year, while in the first half of this year, retail sales contracted 0.7% year-over-year. Apparel retail (clothing, shoes, hats and knitting textiles sales) rose 1.2% year-over-year to 119.8 billion renminbi, or 17.7 billion USD in June, but dropped 6.5% for the first half of 2022. Due to COVID-19-related lockdown measures in recent months, Beijing’s GDP dropped 2.9% in the second quarter from a year earlier, and Shanghai’s contracted a sharp 13.7% in the same period.
To reach the goal of 5.5% GDP growth for 2022, the Chinese government has unveiled a broad package of economic support measures to stimulate the economy, including tax cuts and funnelling money into public infrastructure projects.
H&M teams up with Camp for activation
H&M teams up with Camp for activation
What: H&M teams up with Camp to create a family experience centred around sustainability.
Why it is important: With the importance of consumer engagement combined with H&M’s growing family customer base, the retail chain decided to partner with another children’s retailer, Camp.
Two attractions, “The Style Cabin” and “The Upcycler”, will be housed in Camp’s Columbus Circle store where families can upcycle materials into toys and accessories. “The Upcycler,” a pedal-powered station that uses kinetic energy, will tally up accrued mileage in support of donations to The Learning Tree. The two brands surprisingly don’t have any goals for sales generation or brand interest but instead are focusing on education and engagement. There won’t be any H&M merchandise sold at the Camp Columbus Circle location
It is unclear if H&M will partner with different retailers for future installations. The focus, for now, is on this initiative and its reception. The word-of-mouth metrics and physical attendance will be used as key barometers to measure the success of the activation.
LVMH growth slows
LVMH growth slows
What: LVMH is struggling to offset Chinese lockdowns with European and US sales leading to a slower growth compared to 2019 quarter reports.
Why it is important: Despite strong performance in Europe and the US, LVMH fails to offset declining sales due to China’s Zero-Covid policy.
Sales in fashion and leather goods rose 19% in the second quarter compared to a 30% rise seen in the first quarter. While sales in Europe and the US were up 48% and 22% respectively, Asia dropped 8%. Normal levels still seem uncertain for LVMH in China.
LVMH is still optimistic about the US dollar strength and American tourist shopping, but will remain vigilant regarding geopolitical tensions, health restrictions and recession trends.
K11's new Shenzhen retail precinct
K11's new Shenzhen retail precinct
What: K11’s first flagship project in the Chinese mainland will bring art and culture into a retail hub covering 228,500 square metres.
Why it is important: Located in Prince Bay, Nanshan, Shenzhen, the new 'K11 Ecoast' serves as K11’s first flagship project in the Chinese mainland to comprise the K11 Art Mall, K11 HACC multi-purpose art space, K11 Atelier office building and the 'Promenade.’
The K11 HACC multi-purpose art space will combine a variety of contemporary arts and creative culture to offer an exhibition and activity platform for artists, designers, and art organizations. So far, partnerships have been established with leading art and cultural institutions like MoMA PS1, the Centre Pompidou, the New Museum of Contemporary Art, and the Palais de Tokyo.
The complex’s projected completion is set for 2024, boasting it will be dedicated to promoting a sustainable, circular lifestyle and the integration of environmental protection.
Partnership between Ulta Beauty and Allure magazine’s retail store
Partnership between Ulta Beauty and Allure magazine’s retail store
What: Ulta is bringing a curated selection of products to Allure’s in-person and online beauty stores.
Why it is important: The importance of immersive and experiential retail is demonstrated by this partnership between two beauty industry leaders, Condé Nast’s Allure magazine and Ulta Beauty.
The Ulta shop-in-shop will be open from July to September in Allure’s New York bricks-and-mortar store. This partnership will be the first time Allure has partnered with a retailer, however, they have already hosted 500 in-store events like masterclasses and panels. Along with a curation of products that change month to month, Ulta will host and plan events to generate consumer visitation.
Allure’s move to retail is representative of an increasing trend among media outlets focusing on converting readers into customers. While Ulta’s strategy is to meet customers across channels beyond traditional retail. This has been demonstrated since August 2021 as they began a rollout of Ulta shop-in-shops in Target stores across the U.S.
This partnership will expand Allure’s retail selection while widening Ulta’s audience.
Partnership between Ulta Beauty and Allure magazine’s retail store
Harrods to open Hennessy boutique
Harrods to open Hennessy boutique
What: Cognac brand Hennessy will launch a permanent retail shop in London department store Harrods next week, with an exclusive ‘one-of-a-kind’ bottling up for grabs.
Why it is important: The brand’s first standalone Hennessy Boutique will open in early June 2022 on the lower ground floor of the department store in London’s Knightsbridge.
The boutique will feature the brand’s entire collection, including rare Cognac blend Hennessy Paradis.
Hennessy will also unveil a new expression, crafted exclusively for Harrods using some of its rarest eaux-de-vie. It will be presented in a limited edition dame jeanne bottle, created in collaboration with artist Nelly Saunier.
The boutique will also provide an exclusive personalisation service, called Hennessy Hands. The service will offer leather bottle tags that can be added to the neck of a bottle, and a collection of personalised and handmade options and colours, including embossed gold or silver initials.
Target and Walmart are considering dramatic return-policy changes
Target and Walmart are considering dramatic return-policy changes
What: Major retailers may be on an Amazon-like path when it comes to returns, allowing customers to keep refunded merchandise.
Why it is important: With fuel prices at record highs and ongoing supply chain turmoil, retailers are struggling to adapt and are doing whatever they can to lessen the pressure on themselves.
Retailers are struggling with excess inventory, and sorting it all comes at a high price. Returns add a significant burden to that storage challenge. According to a survey by the National Retail Federation and Appriss Retail, retail returns hit an average of 16.6% in 2021 — up from 10.6% the year prior — adding up to more than $761 billion of merchandise that's likely to end up back in stores and warehouses.
Target, Walmart, Gap, and American Eagle Outfitters are among the retailers that are toying with the idea of letting customers keep refunded merchandise, following Amazon’s ‘returnless retuen’ policy for cheaper items years ago.
Target and Walmart are considering dramatic return-policy changes
5 things Neiman Marcus’ CEO discovered about luxury shoppers
5 things Neiman Marcus’ CEO discovered about luxury shoppers
What: Neiman Marcus is lifted up thanks to a refreshed base of luxury shoppers.
Why it is important: Younger, omnichannel and shopping in all stores, sensitive to marketing and buying leading brands: the dream?
Geoffroy van Ramedonck, the CEO of Neiman Marcus, has noted that upper-income shoppers have lifted results in the department store company, and took note of 5 new traits :
- They are on average 7 years younger (60% of the customer base is Gen X, Millenials or Gen Z),
- Acquired customers spend at least $10,000 a year, and 1 out of 6 comes back within 90 days,
- They are buying top 20 brands that are up 70% from prepandemic levels,
- They are everywhere (no store is left behind),
- They are sensitive to brand activations such as the Prada popup which generated $10m in 2 days.
According to van Ramedonck, overall sales are up +30% vs. Q1 LY.
5 things Neiman Marcus’ CEO discovered about luxury shoppers
The impact of the D-to-C Subscription Market
The impact of the D-to-C Subscription Market
What: Report reveals a surge in the direct-to-consumer subscriptions market during the pandemic-induced e-commerce boom.
Why it is important: There are a total of 225 million subscriptions in the U.S. from USD 61 million consumers, which is 3.7 subscriptions per person. The total annual revenue of the d-to-c subscription market is now USD 27.6 billion.
The direct-to-consumer subscription model has been around since 2004 with smaller businesses using this as an opportunity to test the model out, but no massive story or success came from it. The next noticeable subscription was the launch Birchbox in 2010 which allegedly put subscription boxes on the map.
The report revealed that between 2010 and 2012, similar companies emerged, which included Ipsy, Blue Apron and Dollar Shave Club. From 2011 to 2015, d-to-c subscription companies experienced a 4,461 percent increase in revenue.
The report also analyzed the current composition of d-to-c subscriptions in the market and classified it into three segments:
- Replenishment services: (32% of the market) grocery, grooming, toiletries and pet supplies. Ex: Dollar Shave Club, Olipop, Quip
- Membership subscriptions: (13% of the market) subscription to a product plus access to membership perks. Ex: Peloton, Thrive Market, NatureBox
- Curation-type subscriptions: (55% of the market) curated monthly boxes of apparel, accessories, snacks and cosmetics. Ex: FabFitFun, Birchbox and Cratejoy
The report also provides some insight on the triggers for consumers to subscribe, to continue to pay, or unsubscribe. The triggers for remaining involved in the subscription model are mainly experience-based and financial incentives. Triggers for cancellations include a preference for buying the product on a need basis, finding a better subscription, and dissatisfaction with the product or service.
Walmart plots 4 new ‘next generation’ fulfillment centers
Walmart plots 4 new ‘next generation’ fulfillment centers
What: Walmart plans to build four new high-tech fulfillment centers over the next three years that would include automation, machine learning and robotics while also collectively employing more than 4,000 new workers.
Why is it important: Through the four new fulfillment centers alone, Walmart could offer next-day or two-day shipping to 75% of the U.S. population.
Walmart has partnered with Knapp, a fulfillment tech company that will develop an automated high-density storage system that streamlines a manual, twelve-step process into just five steps.
The centers use an automated storage system to house products — once they are received, unpacked and placed in specialized “totes” — in millions of designated locations. When a customer purchases an item, the system retrieves it automatically and creates a custom-fitting box.
Fashion brands stop using sustainability index tool over greenwashing claims
Fashion brands stop using sustainability index tool over greenwashing claims
What: An alliance of major fashion brands including H&M have announced that they are pausing the use of the Higgs Index tool to measure garments’ sustainability after critics described it as greenwashing.
Why it is important: The Higg Index was once seen as a creditable label that many brands are using to promote sustainability efforts. It is now being criticized as an aid to greenwashing and being advised against as it does not enable consumers to make more informed decisions.
The Norwegian Consumer Authority (NCA) warned H&M Group two weeks ago against using the Higg Index to support its environmental claims. It added that if it was still using such marketing by 1 September, it would risk economic sanctions.
Even though the NCA did not investigate H&M they did investigate another Norwegian brand Norrøna who was also using the index on their website. The NCA concluded that the data was in fact misleading to consumers and the claims unsubstantiated.
Many sustainability activists have been rejoicing after the announcement as they felt this methodology does not cover all aspects of product sustainability.
Other retailers that are currently using the index are: Nike, Primark, Walmart, Boohoo, Amazon and Tommy Hilfiger.
Fashion brands stop using sustainability index tool over greenwashing claims
Browns continue to support young fashion designers
Browns continue to support young fashion designers
What: Browns focus continues to support London’s new and emerging designers
Why is it important: The boutique “Browns Focus: Series Two” will spotlight seven fashion designers. Each designer has curated an exclusive capsule collection for the brand that’s available from Thursday online and in-store at Browns East.
The London boutique has partnered with Black-owned art space Home by Ronan Mckenzie and R.O.T.A., a Browns-created community with a mission to achieve diversity and representation across the business.
Browns Focus made a comeback last year, where designers were given creative control to produce small collections and visual imagery that best represented them and their community.
Browns has been instrumental in underpinning the future brands of tomorrow by mentoring talent with substantial sustainable and inclusive credentials. They were one of the early stockists to take Bethanny Williams under their wing.
Louboutin launches beach-themed pop-up at Selfridges
Louboutin launches beach-themed pop-up at Selfridges
What: The luxury footwear and accessories brand taking over a prime space in the London branch, Selfridges' 'Corner Shop'.
Why it is important: The initiative comes as more and more foreign tourists return to the UK after the pandemic period and British consumers are once again turning to seaside getaways.
Even with the current issues with flight cancellations, holiday bookings are continuing apace.
The core of the collection on display in the shop is the Greekaba summer collection, but the 'Loubi's on the Beach' theme also includes exclusive pieces, as well as some preview products.
Louboutin launches beach-themed pop-up at Selfridges (French)
Sustainable goods see decline due to high cost, yet luxury sales grow
Sustainable goods see decline due to high cost, yet luxury sales grow
What: Inflation is affecting the purchase of sustainable goods but luxury continues to grow.
Why it is important: Financial anxiety is a top concern in updated data released from Deloitte’s Global State of the Consumer Tracker project that explores consumer priorities on a monthly basis. Concerns about high prices were expressed by over 80% of respondents in both the US and the UK as of May.
Consumers skipped sustainable options as 41% deemed them too costly, 24% responded that sustainable products were not a priority, and 13% cited unwillingness to wait longer to obtain such products.
Even though inflated prices are a top concern worldwide, the luxury sector appears immune. American consulting firm Bain released that global luxury goods sales are set to rise at least 5% this year to 320 billion dollars in the conservative version of their estimation.
Luxury sales have remained strong during the pandemic recovery due to demand in Europe and the US. In 2021, the US was the single largest national luxury market, even as Forbes noted that luxury fashion brands like Louis Vuitton, Hermès, and Chanel raised prices substantially, without much consumer resistance thus far.
There are thousands of independent brands and emerging designers around the world operating more and more sustainably from inception: they source locally while supporting regional ecosystems, upcycle materials, use dyes with natural ingredients, produce less waste due to their size, represent a more diverse range of creators and workers, and yes, their items typically cost more than similar alternatives.
During the height of the pandemic in 2020, all businesses suffered setbacks as entire economies shut down, the independent brands, even faced bankruptcy. 40% of the members of the Council of Fashion Designers of America (CFDA) were brands worth under USD 1 million. In contrast, a brand like Chanel had an operating profit of USD 2.05 billion that year, even after a 41% decline from suspended operations.
If the world economy shrinks, it will likely be the less recognizable independent brands, the emerging talents of the industry who take the largest hit again, especially those, as indicated in the Global State of the Consumer Tracker, who use responsibly made materials with fewer environmental impacts that cost more, as all brands large and small are implored to do to reduce emissions.
Quality and sustainability have taken a backseat to the desirability of high price just for the sake of it. A study that focused on consumer motivations for accepting high luxury brand prices in both Western and Eastern cultures explained “Unexpectedly, the pursuit of high quality is not a driver. Instead, obtaining status and exclusivity is what moves buyers to justify the expense, not anything about the environment.“Price functions as a fee for the right to exhibit the logo of a well-known brand and co-brand oneself.”
Sustainable goods see decline due to high cost, yet luxury sales grow
Target is looking to clear out overstock of merchandise from shelves
Target is looking to clear out overstock of merchandise from shelves
What: Due to an aggressively large over stock of retail inventories, Target is cancelling orders with suppliers and slashing prices on merchandise in store.
Why it is important: In an attempt to clear out the large inventory, the company is slashing its prices ahead of the critical upcoming fall and holiday shopping seasons.
It seems that there is a shift emerging amongst Americans as they are no longer spending on home renovations or home decor they are now shifting towards travel, night outs, etc. The shift that has emerged in Americans pivoting away from pandemic spending was laid bare in the most recent quarterly financial filings from several major retailers.
Target reported last month that its profit for the first quarter compared to the same time last year dropped by 52%.
With the decision to cut prices Target is looking to clear out the unwanted merchandise to make more room for in-demand products like groceries and makeup products.
Target is working with their suppliers to cover costs for those vendors whose orders are being cancelled.
Target is looking to clear out overstock of merchandise from shelves
Farfetch unveils second conscious luxury trends report
Farfetch unveils second conscious luxury trends report
What: Consumers are choosing to shop more consciously, according to Farfetch’s second annual conscious luxury trends report, which reveals that the number of its customers who purchased a product from its conscious collection increased 60% year-on-year in 2021.
Why it is important: France experienced the strongest growth globally in conscious shopping on Farfetch with an increase of 149% year-on-year in gross merchandise volume (GMV) from conscious products and South Korea demonstrated the biggest increase in pre-owned spend per item (ASP), up 116% year-on-year.
Customers are continuing to shop more consciously and brands and boutiques on Farfetch’s platform are responding to rising consumer demand by consolidating and increasing their commitments to improve their impact on people, planet and animals.
Farfetch now sells 220 brands that are rated highly by Good On You, up 13% year-on-year, and the amount of conscious products on the platform supplied by its network of boutiques grew 40 percent, while GMV from conscious products from boutique partners was up 46 percent.
Farfetch adds that its shoppers are wanting to be more responsible, as searches for conscious product terms on Farfetch increased by 93% year-on-year, and the sale of conscious products grew 1.8 times faster than the marketplace average over 2021.
Customers also have a new focus on buying quality pieces with longevity in mind, with 79% adding that they are now buying a higher proportion of luxury fashion because they believe it is more sustainable than fast fashion, being of higher quality and longer-lasting.
Farfetch’s circular fashion initiatives are resonating with customers and these services and are “attracting new and valuable customers,” looking to extend the life of their items. 22% of survey respondents said that in the last 12 months, they have started selling fashion items they no longer use, while 20% added that they have donated a used fashion item in the last year, and 13% said they have repaired one.
Multi-brand boutique Machine-A to open a location in China
Multi-brand boutique Machine-A to open a location in China
What: The first international location for the London-based multi-brand retailer.
Why it is important: Physical retail and wholesale operations are still strong enough for businesses to expand internationally. There is also an global appetite for specific concept-stores which is only growing now that customers are eager for physical experience to differentiate from online.
Machine-A, the London-based multi-brand luxury retailer has announced its first venture out of the UK by opening a location in Shanghai in September.
The store, planned to span over 245 sqm, will host Raf Simon’s first direct to customer location in the country. They also stock names such as Maison Margiela, Rick Owens and Comme des Garçons.
Multi-brand boutique Machine-A to open a location in China
AR’s road to fashion
AR’s road to fashion
What: The state of play for AR in fashion, including how Snap's work and that of recent innovators will drive retail in the virtual world.
Why it is important: While the reality of augmenting retail has literally put virtual try-ons front and center for makeup, sneakers, eyewear and furniture shoppers, the consumer proposition for apparel has really only just begun. The challenges are steep, but interest in AR clothing has been gaining momentum in recent years, especially as NFTs and metaverse mania have put a spotlight on 3D digital fashion.
One of the most visible players in this space is social media behemoth Snap Inc., as its investments for Snapchat double down on cloth simulation and body tracking technology. The company revealed that it’s been working on these efforts last year, and it’s clear they’re key priorities, as it has been refining them and expanding the scope of materials.
Enticing people to buy products is an obvious benefit of letting them try on goods, and so then making that easier by allowing them to check out the experience at home is likely to boost sales.
The company released new data this month that casts AR as a highly effective tool for slashing product returns. A survey found that two-thirds of consumers are less likely to return merchandise after using AR. As for fashion, nearly three-quarters said they were likely to buy clothes after using AR in the future. The figure for beauty, where AR is already well-established for makeup try-ons, is 69%.
With the massive push behind AR applications for fashion, it’s more than likely that someone will figure out how to crack it before long, and that means that AR for fashion may finally arrive, ready to connect the massive real-world business of retail and fashion to the emerging virtual world.
