Is Gucci Today’s Most Innovative Brand?

From a Wall Street Journal interview with Imran Amed, founder of Business of Fashion: “Without a doubt, the single most innovative brand of the moment is Gucci … Gucci has completely overhauled their e-commerce strategy and changed the way they communicate about the brand. They’ve embraced new channels like Instagram but also done beautiful events and interesting advertising campaigns.”

“They’re not doing any discounting on their main runway collection … We’ve kind of trained the consumer to wait for things to go on sale. Gucci’s stopped that. Fifty percent of their customers are millennials. Millennials are the drivers of success for the fashion industry now. Without engaging them, you can’t really operate a successful business today. Gucci has found ways of engaging with that consumer.”

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Sportsneakers: Performance Shoes Trip Up

Quartz: “As sneakers have grown into the everyday footwear of choice—even in the office—for millions of Americans, performance shoes have been pushed aside by styles that co-opt their looks and comfort but shed their athletic intent … In 2017, sales of performance shoes dropped 10% to $7.4 billion, while sales of sport leisure sneakers grew 17%, reaching $9.6 billion.”

“Some brands have capitalized better than others. While Nike is by far still the king of the US sneaker market, Adidas has made significant gains in the US by delivering the fashionable, athletic-inspired shoes shoppers want. Nike has a deep roster of these styles, but its newer shoes, such as the Epic React Flyknit, still emphasize performance.”

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Adidas Kicks are a Ticket to Ride

City Lab: “Starting January 16, Berlin transit authority BVG will release its own limited edition line of sneakers, a project that’s the first of its kind anywhere in the world. A collaboration with Adidas Originals, the sneakers’ tie-in with the subway will be immediately apparent to any Berliner: the heel counters feature the unmistakable seat upholstery pattern featured on the city’s public transit fleet.”

“The sneaker’s tongue will include a feature that’s arguably more striking—a fabric version of the annual BVG season ticket. That means the wearer gets free travel on subways, trams, buses, and ferries anywhere within Berlin public transit zones A and B— which cover almost all of the city—from January 31st to the end of the year.”

“Then there’s the price, which is a snip at €180 ($215) a pair. That makes them more expensive than the average sneaker, but much cheaper than a traditional annual transit pass, currently €728 ($869) for the same zones.”

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Stinky Cremes: The Odor of Authenticity

The New York Times: “Among skin-care enthusiasts, Biologique Recherche Lotion P50 has a formidable reputation for its exfoliating powers — and an extremely stinky aroma. Formulated decades ago, the French toner contains a hyperspecific blend of lactic acid, onion extract and plankton that loyalists swear will clear up acne and render your skin silky smooth. If you can withstand the assault on your nose, that is.” Danuta Mieloch of Rescue Spas comments: “It’s highly addictive because it helps to achieve healthy, glowing skin. You sort of can’t live without it …Women go to extremes to maintain their skin. A little smell — it’s a small price to pay.”

“P50 is not the only classic beauty product causing a (literal) stink. SkinCeutical’s brightening and firming C E Ferulic serum has a noticeable ‘metallic smell,’ says the New York dermatologist Dr. Dendy Engelman. ‘One of my patients told me it smells like dirty hot dog water’ … The phenomenon represents a sharp departure from fragranced creams and serums from other luxury purveyors … that leave behind a richly perfumed trail with every application. Yet not masking the au naturale aroma of ingredients lends a certain air of authenticity.”

Dr. Amy Wechsler, a New York dermatologist and psychiatrist, comments: “The thinking is that if something stings and smells bad, then it must be doing something … People associate medicine with a bad smell and bitter taste; so with skin care, they think there must be some really active ingredients in there … it’s like, ‘Oooh it’s supposed to smell bad,’ and it feels even more secret and special.”

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Perfumarie: The Nose Knows Retail

The New York Times: Mindy Yang’s Perfumarie in SoHo “specializes in blind perfume shopping, allowing customers to smell fragrances with all the branding removed … In her quest to encourage consumers to trust their noses, Ms. Yang decided to put perfumes on tap, labeling them only by number. She installed 32 identical fragrance spouts along the minimalist back wall of the space, removing any hints of branding, packaging or price information. Underneath each tap is a small gray stone tagine containing a white paper swan soaked in the mystery perfume”

“Customers are encouraged to sniff in numerical order, taking notes on a clipboard about the scents that set their synapses ablaze. The scents begin light, with airy and citrusy notes, and get progressively stronger. Ms. Yang likens this to beginning with white wine and graduating to a full-bodied cabernet. Shoppers are not permitted to know the name of the perfume they’ve selected. Instead, the vials are labeled with numbers, looking a bit like prototypes stolen from a chemistry lab … At the end of every month, Ms. Yang hosts a cocktail party to unveil the tap selections. She also posts the full list online so that customers can discover the truth about the perfumes they took home.”

“When customers pay for their first blind smelling, they have the option to become a Perfumarie Explorer’s Club member. Their scent notes are scanned into a database and saved for future reference … Ms. Yang hopes that by offering membership and stressing the community aspect of the store, customers will return month after month. She wants them to treat their past smelling notes like a library, learning how their taste evolves over time … she hopes it will be equally attractive to the industry as a street-level test lab.” She comments: “I am no longer interested in traditional retail. People need to learn how to be empowered to have a point of view and choose what they like for themselves.”

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What Does Luxury E-Tail Look Like?

The New York Times: “High-end e-commerce remains a bright spot in the shopping landscape: flooded with more cash than ever before and with bubblelike sky-high valuations to boot. It’s a world dominated by two behemoth competitors … Yoox Net-a-Porter, the largest luxury e-tailer by sales, is one of them. It owns the e-tailers Net-a-Porter, the Outnet, Mr Porter and Yoox; it also operates the e-commerce sites for over 30 luxury brands including Stella McCartney, Dolce & Gabbana and Chloé.”

“Farfetch, the other big name, is an online marketplace for 500 independent luxury boutiques and 200 brands as well as the owner of the bricks-and-mortar store Browns in London … Little wonder that during the past year barely a month went by without Yoox Net-a-Porter or Farfetch unveiling a snazzy new strategy or service in a thinly veiled bid to outmaneuver the other. In April, for example, Yoox Net-a-Porter introduced ‘You Try, We Wait’: a same-day try-on-and-wait premium delivery service with at-home shopping consultations. Six days later, Farfetch started a ‘store-to-door service’ in 90 minutes with Gucci in 10 cities worldwide.”

“Then Farfetch revealed a suite of technologies based on responding to consumers in the ‘Store of the Future.’ Yoox Net-a-Porter promptly responded with ‘Next Era’: a partnership with brands that debuted with Valentino giving customers access to Valentino products wherever they are, and however they want them.”

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What’s Next in Luxury Ecommerce?

According to The New York Times, here are three “next wave” luxury e-retailers: “Secondhand luxury (often known as the ‘recommerce market’) is fast becoming big business. The RealReal, an online marketplace that sells pre-owned and authenticated luxury items, was founded by the former Pets.com C.E.O. Julie Wainwright in 2011 and is expected to generate $500 million in revenue for 2017. It has raised $173 million in funding, and last month it opened its first store, in SoHo.”

Depop: “A mobile marketplace that says it has 350,000 active daily users, Depop has been described as “part Instagram and part eBay.” It is particularly popular with teenagers, who like the way users can personalize their digital storefronts.”

The Modist: “The so-called modest fashion market is booming, with the global Muslim clothing market forecast to be worth $368 billion by 2021, according to the latest Global Islamic Economy report. The Modist, poised to take advantage of the wave, started earlier this year.”

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Retailers Miss Mark With ‘Targeted’ Emails

The Wall Street Journal: “Traditional retailers were once pioneers of using data to zero in on what customers want. But as the importance of their catalogs and mailings have been overtaken by email and other online media, they have struggled—sometimes to the frustration of their customers.”

Brendan Witcher of Forrester comments: “Nearly 90% of organizations say they are focused on personalizing customer experiences, yet only 40% of shoppers say that information they get from retailers is relevant to their tastes and interests. The ugly truth is that most retailers haven’t done the (hard) work of understanding how to use the data.”

“At no time is that more evident than during the year-end shopping bonanza, when retailers deluge customers with messages. During last year’s holiday season, retail emails increased 15% compared with the rest of the year, but shoppers opened 15% fewer of them, according to a study of eight billion messages by marketing-services firm Yes Lifecycle Marketing.”

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Everlane Experiments with Community & Commerce

The Washington Post: Everlane founder Michael Preysman “has spent the past two years experimenting with different types of formats … to find the right approach for Everlane stores. One concept, called Shoe Park, required customers to take off their shoes at the door … Shoppers were encouraged to try on a pair while they grabbed coffee or sipped a cocktail. It turned out to be fun, Preysman said, but not very practical.” He adds: “We turned it into such a playground that at the end of the month, we ended up with all sorts of damaged shoes.”

“Last winter’s ‘Cashmere Cabin,’ a six-week pop-up in New York’s West Village, allowed shoppers to browse sweaters while they drank mulled wine and hot chocolate. Cozy and enjoyable, sure. But a long-term business model? No. Other experiments, which the company called open houses, were built around Everlane’s mission to be as transparent as possible. Evening events showed customers where products were sourced and how they were made but didn’t offer many items for sale. That didn’t work, either, Preysman said.”

“That just confused everybody,” he said. “We learned that while people want experiences, they also want to shop. It’s got to be a mix of both community and commerce.”

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