Fashion Forward: Sustainability and the Battle for Luxury Dominance.
Digest #3 From Copenhagen's Green Runway to AI's Billion-Dollar Promise.
Fashion
The world’s most sustainable fashion week: Copenhagen leading the way by embracing zero-waste shows and recycled fashion.
Who should pay the cost of sustainability in the Fashion Industry?
As the push for sustainability grows, questions arise. Only a combined effort from brands, governments, investors, and consumers can ensure a fair and sustainable industry. Just 19% of major brands have invested in supply chain decarbonization.
A look behind the scenes of Zalando returns. Reselling, donating and wholesaling.
Farfetch is shutting down its Beauty Division, launched in April 2022. The company faced challenges in gaining traction in the beauty market.
From “Should we be doing this?” to “How do we do it?”. How Luxury Finally Cracked TikTok.
Tapestry to acquire Capri (Michael Kors, Versace, and Jimmy Choo) for $8.5B. Combined revenue of $12B aiming to compete with European luxury giants LVMH ($79B) & Kering ($20B).
American brands like Michael Kors target a broader audience with affordable options, whereas European brands prioritize exclusivity and high price points. This European strategy sidesteps brand dilution and margin issues, casting doubt on the American growth model.
Other operations:
Advent $1B deal for Zimmermann.
Douglas plans IPO at $7.7B valuation.
Bain & Company Infographic about luxury resilience.
Brands maintain entry-level prices while emphasizing exclusivity.
Visible discounts limited; loyal customers get special deals.
Luxury brands adapt quickly, focusing on differentiation and shorter lead-times.
Fashion Tech
Fashion execs can’t stop talking about AI. Brands extensively exploring AI's potential, frequently mentioned during earnings calls. Broader adoption or a strategy to impress investors?
McKinsey estimates generative AI could boost profits in the fashion sector by up to $275 billion in the coming years.
The dilemma of luxury innovation. Some pioneering in new tech spaces, many are cautious in digital transformation, but all need a coherent content strategy to align with brand values and user needs.
Digital product creation (DPC) is reshaping the fashion industry, enhancing products & consumer experiences. While many start with 3D tools, true leaders see the bigger picture, integrating with PLM & addressing challenges.
Meanwhile:
Crocs & NFT Doodles Collaboration.
Fashion gaming platform Drest has spotlighted CPHFW by introducing Scandinavian brands as avatar wearables.
Giant Barbie in Dubai.
Until next time.Thanks for reading.
