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As companies like the Real Real, 1st Dibs and DePop continue to make market share inroads when it comes to overall apparel and accessory sales, two key areas of conversation have emerged.
One focuses on who has the right in a secondary market to sell certain brands. Most notably, Chanel has filed three lawsuits against The RealReal and 15 cease and desist orders. Their core contentions are that they should have complete control over who sells their product; they should always benefit from the sell of their product; and finally, that they are the only ones able to ensure authenticity. While Chanel, and other luxury brands, have long been sold at secondhand stores throughout the world, the difference here is The RealReal’s scale and control.
The other conversation focuses on that of fashion sustainability and the shift of consumer behavior towards buying something used, rather than something new. In fact, this has been a marketing strategy that The RealReal has been using in its television ads. And while there are clear benefits to selling and buying secondhand products, for many this claim seems to be more greenwashing than true. After all, The RealReal relies on a heavy back and forth shipping scheme to receive and sell product. What’s more, the pay out for customers is fairly low, as the company sets the sell price—and therefore potentially undermines the customer’s reason to be part of this transaction
What’s largely missing in these conversations, is a discussion about the long view of brand engagement, especially post-purchase. Typically, marketing strategy is focused on getting a customer back in the door to buy new product, not sell or purchase used product. And yet, by embracing secondhand sales, there is real potential for fashion brands, luxury specifically, to rethink and reengage customers in a more lifelong experience—that recognizes the twists and turns of trends and social behaviors.
For the full transcript, visit: FCNewsBytes.com
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Joshua Williams: Hello Sass, who are we featuring this month?
Sass Brown: We're talking about VOZ.
Joshua Williams:Ah, VOZ. They're based in New York City, but do a lot of their work in Chile. Can you tell us a little bit about them?
Sass Brown: Absolutely. They're an amazing brand. They were founded back in 2012 by Jasmine Aarons. And their mission is really to honor and empower artisans, to support them economically and culturally by showcasing their traditions of hand weaving and hand dying. So the collection is built around core items that are handwoven by the Mapuche and hand-dyed; vegetable-dyed through the long tradition of hand weaving and artisanship with cotton and with alpaca from the region.
Joshua Williams: And can you tell us a little about the Mapuche people because that's quite unique, their story, and why she's chosen to work with this particular group?
Sass Brown: For sure. Well then the Mapuche are actually the largest indigenous group in South America. And we never call them cooked by the Spanish. And they have a very long heritage of working with natural fibers, local materials, both animal and vegetable and hand weaving, hand spinning the product. So, they have a very long tradition of it. Like many indigenous groups, there's stories and meanings behind the patterns and the symbolism that's embedded within the things that they weave. It's very graphic visually. Often, it's black on a off-white or a beige base, but it can be and other colors. And if you look at Jasmine's work, she often incorporates all sorts of different shapes. But usually very graphic patterning on a hand-woven base.
Read the full transcript at FCNewsBytes.com.
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Sustainability in the fashion industry is the topic du jour, and rightfully so. The adverse effects of fashion on our environment and on humans themselves cannot be overstated. Over the past ten years, this topic has shifted from the world of academia and NGOs to business and consumers. In fact, consumers now identify sustainability as one of the key criteria for determining which brands they shop, forcing brands to adapt. And yet, the reality is far more complex. Just because consumers say sustainability is important pertaining to their shopping habits, doesn’t mean that it truly makes a difference at point of sale. And just because brands say they are sustainable, doesn’t mean they are in practice.
Values are often separate from action--because values can be hard to pin down or define quantitatively, and because they are contextual. But rather than giving up, it’s a reminder that more education is needed, and that knowledge will empower brands and consumers to make more informed and sustainable choices and demand ongoing change.
Maria Soubbotina, a graduate student and research assistant at Parsons School of Design, focuses her time on parsing how people use language as it pertains to fashion and retail. And for the past year, she has been deciphering the conversations happening at our sister podcast, “Retail Revolution.”
“Over the past year, I’ve noticed a shift in how retail issues, including sustainability, are discussed. Sustainability, in general, was primarily a catch-all conversation for anything wrong with the fashion industry, or it was specifically referring to the effects of fashion production on the environment. And rightfully so, since that is a large part of it. For example, water pollution is just one part of the environmental aspect and 20% of industrial water pollution comes from textile manufacturing.”
But now, she says, the pandemic has begun to shift the language around sustainability towards the effects on the individual. For example, the extent of the impact that chemicals and dyes used to create clothing have on our skin. “Around 8,000 chemicals are used to turn raw materials into clothing, but the average consumer wouldn’t be able to name even one chemical that’s used in the production process, because it’s not something that’s discussed as frequently.”
Read the full transcript at FCNewsBytes.com.
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The pandemic accelerated e-commerce sales in 2020. Pre-Covid, e-commerce sales accounted from between 10 to 20% for fashion retailers, depending on the sophistication and reach of their online platforms. At the height of Covid, these numbers doubled to 40% and beyond, and have now averaged out around 26% with the roll-out of vaccines and the ability for people to move around in public more freely. These numbers are indeed impressive and underscore a true customer shift towards buying a wide range of products online—from groceries to furniture to clothing. And companies like Amazon, Target and Walmart, that offer a wide range of products all in one place, have led the pack.
However, what’s particularly fascinating about these numbers is that even at the height of the pandemic, 60% or more of sales were still transacted in a brick and mortar store. And instead of online sales holding at 40%, they have decreased, suggesting that in-person shopping still holds sway among customers. While customers appreciate the utility and perceived ease of shopping online, shopping is not just about the purchase itself, especially when it comes to buying fashion—which is often less about the piece we’re buying and more about the experience of finding something, trying it on and buying it.
However, this is not to suggest that in-store versus online is an even comparison. The reality is much more complex and harder to truly track. Many experts estimate that 65% or more of in-store purchases involve a digital component—meaning customers are engaging online first, whether it’s searching for the perfect dress or trousers, finding a store location, or even purchasing online—before, they head to the store to pick up an item. Or, the customer is online while shopping in a store; they might be listening to music, getting style advice from a friend via FaceTime, or even shopping a competitor.
What’s more, the primary way in which customers interact with brands now—on a daily basis—is online. This interaction starts first thing in the morning, when a customer picks up their phone, checks their emails, and scrolls through Instagram. This mostly 2D brand experience, often on a small screen, is the most common way customers interact with a brand. And they are doing so from their personal space, rather than in a fully branded space like a store, where the brand is in control. In other words, while customers might still prefer shopping and engaging with brands in a physical store, digital is defining and driving the overall experience.
This reality requires a major shift from retailer leaders, where most decisions about online shopping have been based on traditional, brick and mortar store models; where online was seen more as an “add-on” than the driving force behind customer purchase behaviors. And it necessitates a realization that the interaction between the brand and the customer is fundamentally different and difficult to maintain. After all, the start of a customer journey probably begins with a Google search or a request to Alexa. Ultimately, this shift to a digitally-led business also requires a new type of employee skillset, that merges technology and data know-how with traditional roles in merchandising, buying, planning, logistics and management. And it requires agility and flexibility in order to stay competitive, beyond seasonal trends.
Read the full transcript at FCNewsBytes.com.
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Joshua Williams: Welcome back Sass. Who are we featuring this month?
Sass Brown: We're talking about Tonlé. They're a Cambodian brand that does a contemporary collection,
Joshua Williams: This is such an interesting brand, because they really are involved in so many different things. But at the core, they are a womenswear brand led by founders who are very activistic in terms of how to approach design and how to be part of the world as global citizens.
Sass Brown: Absolutely. Rachel Faller, who's the founder, she's based in California. The brand itself is produced and operated out of Cambodia, which is where she splits her time with. And she is very impressive in terms of, she really understands the place that the fashion system has played in neo-liberalism, colonialism, the whole sort of white savior type mentality. And she really is extremely conscious of that and sees her role as developing a brand and a company out of Cambodia as an honor; that she is able to give back, that she is able to enable the population, to show their capabilities instead of continuing a rather long and messy past between the U.S. and Cambodia. So, she's very much aware of the role that she plays.
Joshua Williams: Can you talk a little bit about her design aesthetic, how she approaches her work?
Sass Brown: It's a very contemporary, wearable, easy wear collection. They're very relatable clothes. They are at a median price point, so they're quite accessible.
A lot of the collection is made out of jersey, although they utilize a number of different techniques. One of the things that is really quite special about them is their focus on worker training. First of all, all their workers are full-time employees. They don't do piece work. They don't subcontract. They encourage their employees to train, to upskill, to learn, which is quite the reverse of your usual sort of workshops, factory setting, particularly in a place like Cambodia that does significant fast fashion production, where it's all about the de-skilling of workers and the underpaying of workers. She does the complete reverse. She operates in a lean manufacturing model, which means workers work in a circle. They don't work in straight lines, looking at the back of the person in front of them. They're encouraged to learn new techniques, to try new machines. They are paid to up-skill They're encouraged to progress employment-wise towards managerial positions and so on. So it's much more of a humane model, or an ethical model of production, if you will. And in a country that's renowned for fast fashion and the reverse of that.
Read the full transcript at FCNewsBytes.com.
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Fashion has always existed at the nexus of art and commerce. It is an endeavor that strives to balance emotional connection and profitability. And it requires a left and right brain approach to be successful.
For years, capturing and analyzing data has supported fashion companies in their efforts to better understand, target and engage their customers. This data mining operation--driven by complex algorithms and information engineers--has largely been under the auspices of financial and marketing departments. But over the years, the world of big data has creeped into the creative process.
Schanel Bakkouche, founder and creative director at SFB Creative, as well as editor and stylist for Vogue International Publications, says that this shift to data provides fashion brands with a competitive advantage. “Data can provide access to key market insights that allows a creative director to focus on what’s important to the customer, thus increasing speed to market, efficiencies and overall engagement.” She emphasizes that fashion can be very subjective, but data can help point creative teams in the right direction. “Data can help eliminate confusion internally and create consistency and transparency across all channels. It can also help to set manageable expectations, even optimize what works best.”
Read the full transcript: FCNewsBytes.com
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In today’s world, leading a fashion company is a complex undertaking, involving a vast global supply chain, a highly competitive landscape and an ever evolving consumer with access to more options than ever. And the skills needed to operate such a company must also be balanced with vision, creativity, transparency and authenticity.
It’s a tall order, agrees Renee Cooper, a professor at the Fashion Institute of Technology, who focuses on management and leadership development. “These days, I think the qualities that set a fashion leader apart from execs in other industries is a bit unique.” When asked if there are any particular fashion leaders that she believes set the right example, she quips, “I suppose I should mention John Donahue or Mark Parker of Nike, but I have to go with a leader who has built a fashion brand that is becoming more and more formidable every day. And that brand is Harlem's Fashion Row, built by owner and founder, Brandice Henderson.”
Read the full transcript at FCNewsBytes.com
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As the fashion industry continues to corporatize and globalize, it requires executive leadership that understands the complexity of turning design into product; that understands the emotional and functional needs of the consumer and balances that with the financial objectives of the shareholder. It requires someone with creativity, vision, practical skills and flexibility. And now more than ever, it requires an understanding of an omni-channel framework driven by digital engagement and cutting-edge technology.
And while in the past, it was typical for a merchant or buyer to move up through the ranks into management roles and then the executive offices of a fashion brand, it’s now just as likely to see MBA graduates in the C-Suite, often without any fashion experience at all. Both scenarios come with their own pluses and minuses. However, according to Renee Cooper, a professor in the School of Business at the Fashion Institute of Technology, the ability to lead is fundamental. She states, “After all, a leader influences people to follow, whereas a manager gets people to work for them, thereby executing the leader's mission.”
Renee believes that in today’s evolving fashion industry the key challenge for any business leader is building a sustainable, competitive advantage beyond products and services. “It's not just about members sitting at the board table or majority stockholders. Today, the C-suite must ensure the demands of the customers, employees, and the communities in which they operate.” And they must do with this more transparency, authenticity and empathy. For example, she says, “Fashion business leaders should recognize the benefits of diversity and inclusion and put initiatives into action. Not only talk the talk, but walk the walk.” She emphasizes: “Look at your executive team leaders. Look at your candidate pool. Look at the current committed members of the organization who have never been given the recognition, title and salary for their contributions over the years.”
Read the Full Transcript at FCNewsBytes.com
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Joshua Williams: Hello, Sass! And welcome back. Who are we featuring this month?
Sass Brown: We're talking about Kur Collection.
Joshua Williams: Based in New York city. Can you tell us a little bit about them?
Sass Brown: Sure. The founder is based in New York, but the production is done out of Sri Lanka. And they're a young contemporary women's wear, mostly dress collection, dresses and separates. Really pretty. That incorporates handmade Portuguese lace or Dutch handmade lace, but from Sri Lanka. It's called Biralu lace there. And it's really beautiful.
Joshua Williams: It's very interesting because as you said, they're producing out of Sri Lanka, but they're also using Portuguese techniques. How did this sort of interesting combination come about?
Sass Brown: Well, traditional material culture is often just like culture itself, a response to immigration, to colonialism, all of those things. So Portuguese handmade lace was adopted in Sri Lanka through Portuguese colonialism and then Dutch colonialism, both of which countries ladies of leisure, used to do handmade lace in their own time. And so that was transmitted to the local population and taken up by them. And now it's part of their culture and part of their history.
Read the full transcript at FCNewsBytes.com.
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Sustainable fashion is now front and center in customer’s minds and purchase behaviors, as well as business logistics and planning. It’s been a precipitous philosophical shift over the past 20 years, as the impact of the industry on the environment and the people it employs has become more visible to the public. Talk has turned to practice, as both a means to ensure long-term viability and meet customer demand. And yet this shift can be daunting to companies--as sustainability encompasses so many different moving parts in a complex supply chain.
According to sustainability expert and founder of The Knew Purpose, Sydney Price recommends that companies adopt a circular economy model. This model is quite literally a supply chain that operates like a circle and is based on three core principles.
The first principle Sydney says is designing out waste and pollution points.
The focus here is on transitioning to more effective and efficient waste elimination processes that require fewer resource inputs such as fossil fuels, chemicals and even water. It also seeks to adopt more energy efficient resources such as renewable energy.
The second principle is keeping products and materials in use.
The idea here is to transform the way clothes are designed, sold and used to break free from their disposable nature. Companies can start by creating more durable clothes. They can also change their business models to short-term rental subscriptions, resale and on-demand purchasing. Brands can also offer repair services.
Sydney points out that focusing on this principle can add to overall brand / consumer engagement, and augment the perceived quality of product, experience and convenience, or what creative strategist AJ Lacouette refers to as the new trinity.
The third and final principle is regenerating natural systems.
A circular economy avoids the use of non-renewable resources and preserves or enhances renewable ones, for instance by returning valuable nutrients to the soil to support regeneration, or using renewable energy as opposed to relying on fossil fuels.
Read the full transcript: FCNewsBytes.com
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