Fashion "Weak". From Burberry's Streets to Gucci's Metaverse.
Digest #8 Shein vs. Temu, Inditex vs. H&M and the Tech Innovations Shaping Fashion.
Fashion
Burberry for Breakfast. The brand took over London streets during LFW, transforming various elements of the cityscape into brand's symbols, including renaming Bond Street tube station to "Burberry Street,". The change led to confusion and complaints, as people missed their stops, mistaking the newly branded station for a different location.
A new era and creative vision for Burberry: How Burberry evolved from humble raincoat.
Fashion week or Fashion “weak”? New York's fashion scene faces criticism for its lack of innovation, as established designers increasingly stick to tried-and-true formulas instead of pushing creative boundaries.
In Milan, independent labels are rising in prominence as Sabato de Sarno's debut marks a new sober chapter for Gucci: timeless and classic aesthetic.
While the collection offered versatile pieces, it lacked a “wow” moment and fell short in the accessories. Is this Kering's strategic reset following a 14% sales drop in the last quarter?
In London, Chinese designers steal the spotlight at London Fashion Week, and JW Anderson innovatively transforms hardened plasticine clay into wearable hoodies.
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Shein ramping up UK expansion. Reportedly in talks to acquire UK-based Missguided from Frasers Group. This comes just two years after Shein entered the British market, where it has recently reported £1.1 billion in sales.
On the legal front, the company is taking its competitor Temu to court in London over allegations of copyright infringement. To optimize its supply chain, Shein has overhauled its shipping strategy for quicker deliveries to the U.S.
The brand unveiled new collections through a special live stream: “SHEIN Live: Front Row”
“Top 250 Fashion & Beauty Retail Europe” Report ranks Shein sixth among European e-retailers, closely following Zalando and ahead of Vinted.
H&M sales flatlined (LC) in the latest quarter after its biggest rival Inditex cheered a stronger performance (profit +40% in H1).
Inditex's strong financial position will allow it to keep prices stable or even cut them.
The flexibility in pricing could be a strategic move to gain market share as consumer spending weakens.
The Swedish company to extend it’s “pre-loved” experience in the UK and reverse course on charging UK shoppers for in-store returns just two days after the initial announcement.
Note: Retailers lose US $100 billion annually to return fraud.
Primark to upgrade profit outlook driven by strong Barbie T-shirt sales and a strategic 7% price increase.
Spanish retailer Mango has brought its online e-commerce platform to 22 new countries, predominantly Africa.
Meanwhile:
Golden Goose's H1 sales up 21% to €276.4m.
Zegna H1 net profit +148% to €52m. Sales +24%.
Mytheresa reports 15% GMV growth as it focuses on big-spending clients.
Puig plans a 2024 IPO with a valuation of up to €8 billion.
Secret Sales acquires Spanish retailer Dreivip, expanding in Europe.
Monica Vinader was named Jewellery Brand of the Year.
Pandora and Thomas Sabo rank as the second most successful e-commerce brands in the Premium and Luxury category.
Fashion Tech
Technology gets a spotlight at the Fashion Week. Both London's Digital Fashion Week and NYFW are treading carefully with Web3, yet the digital frontier remains promising.
From blending gamers with high fashion (Twitch streamers sitting in Gucci front row) to leveraging Web3 technologies, digital pioneers are setting the pace for the industry's future.
Within the emerging innovation stage, cosmetics recommenders, 3D garment modeling, and in-store theft monitoring are disruptive technologies that are in the early stages of application and should be tracked closely.
Bain & Company's “Toward the Boutique of the Future” report highlights the role of technology in enhancing luxury retail.
Customers prefer physical stores for personalized service but dislike waiting times, which tech can reduce. However, there's resistance to self-service technologies in luxury settings, as customers value human interaction
Algorithmic solutions are increasingly used for efficient stock allocation as retailers face the complex task of managing inventory during seasonal transitions and the aplication of generative pricing strategies.
One last bite:
Sabato de Sarno debuts as Gucci's creative director at Milan Fashion Week with a metaverse collection called 'Ancora' in the Gucci Town on Roblox.
Diesel teams up with DressX to launch new digital wearables in DressX.
Panerai banks on the blockchain as a counterfeit solution.
Snap unveils AR tools to attract more beauty brands to its AR experiences.
eBay offers luxury consignment service in a direct challenge to The RealReal.
10 Predictions for the future from the CEO of Roblox.
Until next time.Thanks for reading.
