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The fashion eCommerce industry is an industry that has always proudly worn change like a model would wear Prada. Change is a key part of the fashion industry’s identity, occurring at almost every seasonal fashion show year on year. However, the year ahead may bring about the industry’s most drastic transformation yet. As consumers and fashion retailers navigate the aftermath of the COVID-19 pandemic, there are new looks for the industry to try on. Sustainable, yet affordable clothing is on the rise, and the reCommerce industry is booming with grounds to flourish further in the wake of global economic changes. The glossy fashion events that the industry has become synonymous with are going too, replaced instead by a growing market for seasonless items as consumers look to make the most out of each purchase.With more change occurring than that of a fashion retailer’s fitting rooms, we decided to get ahead and compile the 9 fashion eCommerce trends that are worth styling your eCommerce store around in 2022.

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Activewear sales in the US grew by just 8 per cent in the year ending March 2019 even though the most popular products still receive plenty of buzz.

Brands such as Lululemon and Athleta are looking to attract an older, more professional audience by designing relaxed-fit clothing that can be worn in a formal office environment.

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https://www.voguebusiness.com/consumers/the-future-of-athleisure

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Lululemon, which arguably pioneered athleisure, registered a 130 per cent increase in online searches in the three months ending March 2019 compared to the quarter before, per Lyst data provided to Vogue Business. Searches for performance clothing rose by 21 per cent.

However, double-digit expansion seems to be in the rearview mirror in the US, by far the largest athleisure market. Activewear sales there grew by 8 per cent in the year ending March 2019, according to NPD. Athletically minded consumers in the US are fully stocked up when it comes to activewear clothing, says Marshal Cohen, NPD's chief industry advisor. "To some degree, we've certainly reached saturation when it comes to the workout wardrobe, and now we've reached replenishment."

(In China, by contrast, year-on-year performance wear and sports-inspired fitness clothing sales increased by 15.3 per cent in 2018, Euromonitor figures show.)

To maintain higher growth, brands have to find ways of attracting new buyers. Existing athleisure brands are closely associated with comfort, and there are signs they are pivoting to relaxed fits with less of an outwardly casual look. One opportunity lies in serving professionals as the casualisation of the workplace continues. While yoga pants still aren't acceptable outfits at financial institutions, both Goldman Sachs and JP Morgan recently made suits optional for male employees.

To capitalise on this, Lululemon introduced its "Office, Travel, Commute" collection featuring more traditional cuts such as its ABC pants for men and On The Fly bottoms for women. Athleta also produces a "City Pants" range. Newer companies such as Dai offer office wear that uses the same stretchy fabric as yoga pants.

More traditional brands are meeting them halfway. Levi Strauss CEO Chip Bergh previously cited the rise of athleisure as a significant factor in the decline of the denim brand's womenswear sales. He instructed his designers to fix this problem by launching a stretchier, softer pair of jeans in 2015. Since then sales have increased by over $200 million.

Another new market is older, more conservative consumers who are starting to see the benefits of activewear, says Cohen. "Athleisure has crossed over into the non-athletic mindset. People who have no interest in taking a yoga class still have the desire to feel comfortable in a durable and sensible product."

While targeted marketing at more mature customers is still rare, there are notable exceptions. British athleisure label Sweaty Betty featured 63-year-old model Yazemeenah Rossi in recent marketing campaigns, while Athleta has become known for including older women in their design process.

"We are reluctant to continue calling [athleisure] a trend... much in the same way that denim is not a trend," says Mintel retail analyst Chana Baram. "Rather, sports clothing is embedded in the fashion world."
To receive the Vogue Business newsletter, sign up here. Comments, questions or feedback? Email us at feedback@voguebusiness.com.

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The future of athleisure lies in the workplace

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Lululemon, which arguably pioneered athleisure, registered a 130 per cent increase in online searches in the three months ending March 2019 compared to the quarter before, per Lyst data provided to Vogue Business. Searches for performance clothing rose by 21 per cent.

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https://www.yieldify.com/free-guides/fashion-ecommerce-trends/

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FREE GUIDE

What can marketers learn from the fashion eCommerce trends driving a $2.5 trillion industry?

Updated: Feb 8, 2023

Introduction

The fashion eCommerce industry is an industry that has always proudly worn change like a model would wear Prada. Change is a key part of the fashion industry's identity, occurring at almost every seasonal fashion show year on year. However, the year ahead may bring about the industry's most drastic transformation yet.

As consumers and fashion retailers navigate the aftermath of the COVID-19 pandemic, there are new looks for the industry to try on. Sustainable, yet affordable clothing is on the rise, and the reCommerce industry is booming with grounds to flourish further in the wake of global economic changes. The glossy fashion events that the industry has become synonymous with are going too, replaced instead by a growing market for seasonless items as consumers look to make the most out of each purchase.

With more change occurring than that of a fashion retailer's fitting rooms, we decided to get ahead and compile the 9 fashion eCommerce trends that are worth styling your eCommerce store around in 202 3.

Table of Contents

1. ReCommerce and rental
2. Sustainable and ethical fashion
3. Athleisure
4. AI and virtual assistants
5. Seasonless fashion
6. AR & VR
7. Omnichannel strategies and DTC
8. Genderless fashion
9. Delayed payment methods
What's next for fashion eCommerce

Fashion eCommerce trends for 2023:

1. ReCommerce goes mainstream

What is reCommerce? ReCommerce, or reverse commerce, is the process of renting, reselling, or thrifting previously owned apparel through online or offline stores. Consumers are increasingly searching for economical, sustainable methods of buying or owning new clothes instead of buying brand new.

As the fashion world moves toward a more sustainable model and post-pandemic spending preferences force brands to be more accountable, resale is a fashion eCommerce trend experiencing a rebirth. Up from $7 billion in 2019 to an estimated $36 billion by 2024 with a forecasted 39% annual growth rate, the online and offline resale industry has a new lease of life in its quest to remain an affordable, sustainable way to keep up with fashion.

"Before the pandemic hit, the resale market was on track to double. Now, this growth may very well accelerate. Resale sites are coming out big winners as the pandemic plunges the economy."
Business of Fashion

From 2008 to 2016, post-Great Recession, resale revenue in the United States increased by more than 50%. In conjunction with that increase, department store sales declined by 25% and history looks to be on track to repeat itself.

In 2019, resale was already growing 25% faster than the broad retail sector, and according to a report issued by First Research, around 20,000 used merchandise stores were generating $17.5 billion in annual sales across America.

Secondhand fashion eCommerce stores had also been estimated to grow 69% between 2019 and 2021 - long before online shoppers started actively seeking more affordable options from home whilst quarantining.

In fact, the rise of the now-major players in the fashion reCommerce industry began all the way back in 2009, when retailers like ThredUp, Vestiaire Collective, and Tradesy launched their brands. Luxury reCommerce retailer The RealReal spied a growing market and launched two years later in 2011, as did the more accessible and social media-based DePop.

Now, ThredUp is the world's largest fashion eCommerce thrift store, welcoming an average of 7 million monthly visitors to its site. At the higher end of the scale, luxury resale eCommerce stores like The RealReal also experience around 6 million monthly visitors.

Today with 88% of people surveyed during the Coronavirus pandemic admitting they had adopted a new thrifting hobby, and 79% confirming plans to cut their apparel budget in the next 12 months, 69% is beginning to look like only the tip of the iceberg in hindsight when taken into consideration that the sole purpose of reselling for 2 in 3 people is to make money.

Big fashion houses have remained abreast of these developments too. In 2019 both Burberry and H&M launched reCommerce and rental models, whilst Patagonia had also recently announced plans to open a brick-and-mortar shop specializing in their reCommerce collections.

In the influencer sphere, the Kardashian-Jenner family launched a resale apparel site, Kardashian Kloset, whilst Chrissy Teigen publicly voiced her support for The RealReal, a popular resale site for designer labels, admitting that she both buys and sells her clothing from the site.

Looking to the increasingly popular and profitable future, across the next 12 months ThredUp highlights the three main subtrends of reCommerce fashion being:

1. Sustainability: As brands transparent with their carbon footprint and ethics continue to see rising sales numbers.

2. Quality: As luxury brands like Louis Vuitton and Gucci become offerings for investable and high-quality pieces.

3. Nostalgia: As Generation X brands such as Doc Martens and Nike begin to appeal to thrift-store hunters by integrating throwback style fashion into their new releases.

If you're a fashion ecommerce store owner with the capability to sell goods that can be returned or resold whilst retaining their quality, now's the time to start exploring whether you could adapt to this growing trend.

If you believe you could have this capability, consider whether your customers would purchase used items - and if so, which ones? Develop ideas around reimbursement policies, whether in cash or store credit for those who would donate their clothes to your store and finally, examine any cost of refurbishing and preparing items for resale, versus the profit your store would make reselling it.

As more conversations continue to be had around protecting the environment, and the global economy attempts to rebuild post-pandemic, the reCommerce and rental market is only going to flourish further.

2. Sustainable and ethical are the new black

The fashion and aparel industry has long been criticized for its detrimental effects on the environment and hailed as one of the most pollutive industries in the world. On average, it costs the environment 75lbs of CO2 to make a pair of jeans, whilst 700 gallons of water is estimated to go into the production of a new t-shirt. Perhaps worse, 208m lbs of waste was generated in 2019 just by the buying and then subsequent destroying or disposing of single-use outfits.

However, there are signs emerging that suggest the interest in sustainable and ethical fashion is now a steadily rising upward trend. Global Fashion Search Engine, Lyst, has seen searches including sustainability-related keywords increase 75% year on year, recording an average of 27,000 searches for sustainable fashion every month.

Most recently, Lyst attributed the increase in sustainable searches to brands either launching sustainability initiatives, paying closer attention to, and being more transparent of, the materials used in their collections, or investing in the aforementioned reCommerce.

This is reflected in search data on individualistic levels. Girlfriend Collective's leggings, made from recycled plastic bottles, were a popular search with shoppers whilst brands Nudie Jeans and Bassike clothing, both advocates of organic cotton - a search term up 52% - saw increases.

'Vegan leather' has been a yearly steady riser, with searches increasing 69% year-on-year and searches for 'upcycled fashion' have grown 42% across the last six months.

The increasing rise in sustainability and transparency comes as a result of consumers choosing to shop with brands whose values and ethics mirror their own, and those ethics don't just stretch to the natural environment - they include issues around human rights and the natural world.

"Consumer demand can revolutionize the way fashion works as an industry. If everyone started to question the way we consume, we would see a radically different fashion paradigm."
Carry Somers, Co-Founder of Fashion Revolution

As an example, British fashion eCommerce behemoth Boohoo has seen more than $1.3bn wiped from its retail share price after being embroiled in a human rights scandal whereby it was found to be paying workers in a Leicester factory well under the mandatory national wage, with no COVID-19 social distancing measures in place. Next, ASOS, Zalando, and Very all suspended their sales of Boohoo items, whilst consumer boycotts raged on social media channels.

On the other hand, online American apparel company Patagonia has been achieving steady year on year growth of 13% due to its transparency in things like its products made from renewable or recyclable fabrics (45%), or its number of workers earning a Fair Trade premium (26,000) which it openly publishes in its yearly reports.

Elsewhere, Prada signed a $57m deal in order to meet three eco-friendly objectives, including using sustainable material Re-Nylon, a material Lyst recorded a 102% rise in searches for last year, whilst fashion houses Armani, Gucci and Versace have completely eradicated fur from their products in order to source more ethical solutions.

As fashion continues to incorporate ethics throughout its lines, so emerges another, new type of consumer: The conscious consumer.

The conscious consumer is aware of three things: The environmental cost of producing a product, the potential human cost of manufacturing a product, and the potential resale value of the item further down the line.

One brand that is not shy about having made the Conscious Consumer their primary target is fashion eCommerce retailer, Organic Basics. The brand has currently launched a 'low impact' version of their eCommerce site.

'Low impact' means that visitors are greeted by an almost bare site, free of graphics, videos, heavy scripts, and similar elements. The website only loads images whey they are actively requested by the user, informs the user of the impact of their browsing behavior, stores data locally on the user's device to minimize data transfer, and more.

"The internet is dirty. Data transfer requires electricity, which creates carbon emissions - and this leads to climate change. The Low Impact website reduces data transfer by up to 70% in comparison to our regular website."
Organic Basics

When taking the Conscious Consumer's values into account, eCommerce fashion retailers offering cheaply made, non-ethically produced products could suffer the most when compared to higher quality, longer-lasting garments. For example, if the piece is one-time wear, it will only eventually add to landfill if it has no recyclable value, and if it can be worn more than once, its resale value will diminish anyway through natural wear and tear, making it a non-profitable, non-sustainable piece to invest in.

With these factors in play, the next step for any fashion eCommerce retailer is therefore to appeal to the conscious consumer through the production of products incorporating values of sustainability, resale, and environmental, as well as human, ethics.

3. Athleisure transitions into mainstream luxury

According to a study by market research firm NPD Group, athleisure is set to lead the American shoe sale market through 2021, as it continues its steady 7% year-on-year rise. These findings support Lyst's most recent report, which revealed that luxury streetwear and sportswear continue to evolve their definitions.

Searches for both 'streetwear' and 'athleisure' powered the year's biggest trends with customers spending on average $192 on a new pair of sneakers - a 39% year on year increase.

"Consumers are looking for shoes that are less technical and instead more versatile and every day."
Matt Powell, Senior Sports Industry Advisor at NPD

But those themes of versatility and everyday comfort are ensuring it's not just the shoe market that athleisure is beginning to dominate. In their August report, data and analytics firm GlobalData predicted the global athleisure market will rise 9% in 2020, and outpace the total clothing and footwear market beyond 2023.

Comfort seems to be the key driving factor in consumer purchases of athleisure style goods, and more so in the post-pandemic climate with more people working from home than ever before. Data originally gathered from a 2019 RBC Capital Markets' United States survey had previously revealed three-fifths of respondents said that they used sporting goods for athleisure reasons while just 30% said they only used them for sports activities.

This divide gives explanation to not only the rise in the continued growth of companies who have doubled down on consumers' increased health and wellness pursuits like Nike and Lululemon - who in 2019 registered a 130% increase in online searches - but also as to why major online retailers Amazon and Target have both made recent entrances to the athleisure market by rolling out their own lines.

Athleisure has also been given a brand new twist: Luxury.

Influencer-led campaigns by celebrities like Beyoncé, Rihanna, and Rita Ora have all helped glamorize the use of activewear by displaying it as a key element of their 'behind the scenes' lifestyles, regularly being snapped looking comfortable in fitted tracksuits aboard private jets or expensive chauffeured vehicles.

As more and more companies adopt working from home policies, whether in rotation format or permanently, expect to not only see lines such as Lululemon's "Office, Travel, Commute" athleisure collections, or Athleta's "City Pants" range, but further expansions into the high-end side of athleisure in brands such as Under Armour, Fendi, and GymShark: An athleisure brand that grew solely through clever influencer usage and who just celebrated becoming a $1billion dollar company.

4. Artificial intelligence turns virtual assistant

With more shoppers choosing to purchase from retailers that align with their values, personalization and the act of relevancy are continuing growing trends throughout any eCommerce industry. To assist this new problem of how to put the customer at the heart of their marketing strategies, fashion eCommerce retailers are increasingly turning to one solution: AI, and most importantly, AI chatbots.

According to a survey conducted by Hubspot, 48% of consumers would rather connect with a company via live chat than any other means of contact, and 35% of consumers would be happy to see more companies using chatbots according to Ubisend.

Brands such as ASOS, Burberry, Levi's, and Tommy Hilfiger have all adopted retail chatbots in order to bridge the gap between the customer and the retailer in a more convenient and personalized way.

Tommy Hilfiger's chatbot engages you in a conversation, first introducing itself as a bot and then offering a variety of options: Shoppers can browse through the collections, proceed directly to the catalog of available items, or even get the bot to help in selecting an outfit. By asking questions, the bot filters the collections to suggest the items fitting your style - and all within Facebook Messenger.

Meanwhile, Epytom is another popular chatbot that is not tied to any one brand. It serves as a personal styling service, encouraging users to shop their own closets rather than driving them to an external point of sale. The bot works first thing in the morning and styles a user using clothes they already own based on their preferences, as well as external elements like the weather outside and their itinerary for the day ahead.

Epytom surveyed its users and found a plethora of positive feedback. From those surveyed, 64% wore what was recommended to them more than twice a week, 20% wore what was recommended three to five times a week, and almost all reported that their mornings were easier and less stressful.

Encouragingly for the future of AI bots, 80% of users loved the bot format and were glad to regularly receive notifications from the app because of practical, applicable advice given.

With 80% of businesses expecting to be using chatbots by the end of this year, plus Facebook's AI Research unit, FAIR, developing Fashion++ - a system that "reads" images of outfits submitted by users and then makes recommended fashion adjustments like untucking a shirt, taking off an accessory or changing a tops color to make it more stylish, it looks encouraging for the belief that automation technologies will most improve customer experience.

Whether it's just greeting visitors on a page, or creating recommendations through a conversational service, artificial intelligence has made itself indispensable through its effortless work nurturing and engaging potential consumers. Advancements in technology will continue to reverberate throughout the fashion eCommerce industry, but the ever-versatile artificial intelligence looks set to remain a must-have for fashion and apparel retailers of all sizes.

5. Seasonless fashion introduces slow fashion

In diary entries shared by Gucci's creative director Alessandro Michele, he stated that pre-fall, spring-summer, fall-winter "were all 'stale and underfed words" and that the fashion house would no longer be participating in the traditional fashion calendar, but would instead move to a seasonless schedule meeting twice a year.

Gucci were not the only ones. Saint Laurent also chose to opt-out of a calendar schedule, whilst Vogue agreed they would also take control of their own schedule.

Vogue editor-in-chief Anna Wintour spoke on the subject to say that the impact of the Coronavirus pandemic was giving everyone the chance to "rethink what fashion stands for, what it means, what it should be." She said: "I think it is an opportunity for everyone to slow down, produce less. [...] Maybe have less of an emphasis on things moving so quickly and emphasis always on what's new."

However, it is this emphasis that seems to have been trending upward long before the implications of the pandemic.

"We have definitely noticed a shift in the way in which designers are approaching the traditional seasons. Collections are more seasonless than ever, as brands take more of a considered approach to the longevity of a collection. This is strongly resonating with our customers who seek pieces that they can keep in their wardrobe longer than a season."
Rebecca Tinker, Womenswear Buyer at Selfridges

In 2019's core fashion events, items such as boots were promoted in Spring, while during the Winter shows, sleeveless and trench style coats took precedence over heavy wool outerwear. In Giambattista Valli's Fall collection, pastel pinks and floral colors adorned dresses, whereas traditionally those types of details would be reserved for Spring.

Reasons given for this upward turn in seasonless pieces included the business model many eCommerce afashion brands began transitioning to - the 'See Now, Buy Now' model. These pieces readdress delivery schedules by allowing consumers the chance to buy straight from the runway, instead of waiting until the appropriate season and then purchasing.

Another reason was that of the effects of climate change, with 86% of fashion retailers reporting that changing, and often unpredictable seasonal weather patterns were having impacts on their lines, and their sales.

But there's now another new, emerging reason: Slow fashion. Fashionable wear that lasts longer than one season and can be recycled or reused through as many different seasons or styles as possible.

This shopping habit is supported by statistics such as how extending the life of clothing by an extra nine months could reduce carbon waste and water footprints by around 20-30% each, as well as 12.5% of global fashion companies making pledges to change their processes in favor of adopting more sustainable practices by 2020.

It's good news if you're an eCommerce business that has traditionally held seasonal wear. If your products have the versatility to cross-function through unpredictable and ever-changing seasons, it's time to identify and market those USPs.

6. Fitting rooms try on AR & VR experiences

As the digital world continues to grow and change, more and more fashion eCommerce retailers are attempting to retain existing customers, and attract new ones through the use of Augmented Reality (AR) and Virtual Reality (VR) experiences.

In a 2018 Gartner survey, 46% of retailers surveyed stated they were planning to deploy either AR or VR solutions to meet customer experience requirements.

One avenue that fashion retailers are focusing on especially is the use of AR and VR dressing room experiences. These experiences allow visitors to see themselves in a brand's clothing, without necessarily needing to visit the store, in a persuasive attempt to buy.

A notable success story of VR experiences was Rhone Apparel, who partnered with Rakuten to implement a virtual try-on service, Rakuten Fits Me.

The service was just that: Made for consumers who were unsure of how a product would fit them. By tapping a button, they would undertake a series of quick questions, provide simple data points, and then be shown the most common body shapes for those unique inputs. Afterward, Fit Origin would generate a final recommendation for them.

Within its first month of implementation, the conversion rate of Rakuten Fits Me users on Rhone's website was 9.8% versus non-users who converted at just 3.7%. Twelve months on, Rakuten Fits Me user conversion rates still triple and some months even quadruple non-user conversions.

On the other hand, AR - Augmented Reality - can work just as effectively. eCommerce Fashion giant ASOS recently marked their first step into Augmented Reality experiences by launching their app, Virtual Catwalk. The feature was developed in partnership with London-based augmented reality firm, HoloMe, and allows customers to point their smartphone camera at any suitable flat surface, click the 'AR' button, and they will be able to view models as if they are walking in front of them.

Likewise, Zara found a way to bridge the gap between online and offline by introducing their AR app. The brand attempted to lure customers into stores by having AR experiences activated on certain store windows, or on sensor points dotted around their stores.

All customers had to do was hold up their phone to one of these points, and then watch as models came to life on their screens wearing selected items from the Zara range, with an option to click through and buy. Research has found that 44% of shoppers used their smartphones to shop or research while in stores, and this number is likely to rise. So this is a trend to keep an eye on.

There are notable other household names signing up for the technology of AR and VR too. Brands such as Burberry, whose app allows for digital redecoration of your surroundings with Burberry-inspired drawings by the artist Danny Sangra.

Balmain, whose app allows you to go behind the scenes and enjoy specialist augmented reality content including live streams of its runway show, and Puma who created AR sneakers covered in QR codes that allowed for a variety of AR experiences once scanned with a mobile phone camera.

California-based designer hat brand Tenth Street also offers an augmented reality option on their product pages.

Visitors can choose items marked with " Virtual Try-On," click the "Try it on in AR" button, and see how their chosen hat looks. It was a big hit with costumes too with engagement levels increasing by 33% thanks to the augmented reality feature.

As brands look to reinvent their methods of acquisition and conversion, AR and VR will continue to develop into must-have abilities for all major fashion eCommerce powerhouses.

7. Omnichannel will keep stores omnipresent

In a survey conducted by eConsultancy, data revealed a 21% YoY increase in online orders in comparing March 2020 to March 2019. In a separate survey, 41% of respondents said that they were currently shopping online for things they would normally shop for in-store.

Whilst the coronavirus pandemic is responsible for these significant changes, it adds more fuel to a growing dilemma puzzling and pressurising most fashion ecommerce retailers. What to do about their brick and mortar stores?

With the accessibility and convenience of online shopping having left notable impacts on retail spaces in high streets around the world, now more than ever retailers are under pressure to unify retail experiences both inside and outside of their stores. Especially if they wish to maintain a profitable high street presence.

To help solve this problem, fashion retailers are instead turning to omnichannel strategies, such as direct-to-consumer. These marketing strategies allow fashion ecommerce retailers to offer seamless shopping experiences both online and offline, as they navigate the world of balancing brick and mortar stores with surging eCommerce sales.

Back in January 2018, Zara gave a glimpse of what an omnichannel future could look like by opening a click and collect concept store in London. The space had a dedicated area for collecting online purchases but also had staff on hand with mobile devices that offered sizes, stock, and, collection information for a limited selection of items available inside the store. Alongside this, there were options to avoid payment lines altogether by paying through either the Zara or Inditex group app, as well as self-service checkouts.

Most interestingly, a virtual styling tool was trialed in-store using information screens embedded into mirrors. Customers were able to scan barcodes of items using sci-fi-sounding radio frequency identification technology. Once the item was recognized, the internal system would load " multiple choices for coordinating and combining the piece with other garments and accessories. "

Meanwhile, Nordstrom's DTC omnichannel strategy of "reserve online, try on in-store" was such a success that it is now available at 43 stores across the US, with 80% of shoppers who tried the service coming back to use it multiple times.

The service allows shoppers to select items through the Nordstrom app, notifies them when the products are available to be tried on in-store, and then sends a followup message upon their arrival which tells the customer where they can find a specialist reserved dressing room with their selected clothes.

Recently, Nike is the latest big fashion brand to see success with their implementation of direct to consumer. Seeking to climb aboard the tech-driven drop strategy of selling exclusive, limited-edition items - popular among apparel makers like Supreme to generate excitement and demand - it purchased predictive analytics company Celect.

Celect's cloud-based platform issues data to help retailers optimize their inventories with local demand predictions. These predictions then aim to forecast how and when consumers will buy certain styles, bolstering Nike's DTC strategy of being able to personally supply consumers at a global scale.

According to the company's annual report, the digital portion of Nike's direct sales grew 35% during the period and outpaced all other marketing channels. Nike attributed its growth rate to its digital DTC sales and hailed them as a key driver of its sales for the foreseeable future.

While online eCommerce has had undeniable effects on physical high streets, omnichannel marketing supports the theory that retailers aren't necessarily closing their doors, they're evolving the methods in which they can reach and supply their customers.

For physical retailers, strengthening their digital presence ensures they can drive traffic both to their physical stores, like Zara, as well as make their catalog easily accessible to larger, online audiences, like Nordstrom.

For eCommerce retailers having a two-pronged approach to driving consumers between both an offline and online presence could not only be a way of unifying brand experiences whilst helping to keep a brick and mortar store profitable, but also fulfilling different consumer needs through segmenting the approach to supply, such as making certain products online only in a direct to consumer strategy.

8. Genderless fashion means there's a fit for everyone

In 2018, the Council of Fashion Designers of America, the organization that organizes the week's calendar, added a new category: Unisex/nonbinary. At the time the addition was regarded as a major feat for the LGBTQ community and was widely praised by society as a whole.

Since then, more progress has been made in the understanding of gender norms and within the inclusivity of non-binary gender identities, and this is now being reflected throughout the fashion industry. Lyst recently reported a 52% increase in searches for the terms 'genderless' and 'gender-neutral' fashion.

Across the past year, eCommerce fashion brand Inhabit launched its first genderless collection, Norma Kamali changed her brand to a unisex label, Umit Benan launched a unisex line, B+, whilst Equipment followed on by launching their gender-fluid collection in the Spring of this year.

With the latest data suggesting 56% of Generation Z consumers shop outside of their assigned gender categories, fashion houses H&M and Zara also introduced genderless collections, while Tommy Hilfiger's loungewear section features pieces that appear across both men's and women's individual sections.

" We're already beginning to see a shift in the industry through multiple waves; through casting of androgynous, trans and gender non-conforming models, as well as combined women's wear and men's wear runways. We're seeing the shift take place through how products are being bought, whether it's unisex, gender-fluid items, or women's wear items on the men's wear side."
Brigitte Chartrand, Senior Director of Womenswear Buying at Ssense

According to the Pew Research Center, 35% of Gen Z are familiar with gender-neutral pronouns, followed by Millennials at 25%. Gen X makes up an additional 16%, bringing the total number of people familiar with gender-neutral pronouns to 76%.

That large consumer market is a predominant reason behind the likes of Louis Vuitton and Gucci using male celebrities to promote traditionally female clothing, such as in 2016 with Jaden Smith and Harry Styles in 2019 and forms the basis for brands adopting the language, describing their gender-neutral collections as genderless. Genderless pieces also contain greater potential through their ability to connect and appeal to two market segments.

Doug Stephens, an author and futurist of the retail industry predicts going forward, genderless clothing will influence a significant part of fashion's future. "The way we dress from a gender standpoint is, to a larger extent, a reflection of how we regard gender roles," he says. "As gender roles are blurring, the traditional fashion identities of both men and women are blurring along with them."

Already reflected in brands such as Selfridges, Totokaelo, and Vans, genderless and unisex fashion are trends that will continue to evolve all the time conversations around them continue to develop. Additionally, as companies aim to diversify their workforce, including those from BAME and LBGTQ backgrounds, influences on the design and development of styles could see brand new, exciting changes that allow fashion to return to its roots as a statement of identity.

For eCommerce retailers, now is a great time as any to truly tap into your audience's wants, needs, and values. If you've been wanting to expand your ranges outside of traditional gender norms, there's no better time to support an inclusive movement just finding its voice.

9. Buy now, pay (for luxury) later

In February of this year, Style360, a New York fashion week event organized by publicity firm A-List communications forewent celebrity guests in favor of a technological one: Swedish banking firm, Klarna.

Klarna took to the spotlight to advertise its recent partnerships with eCommerce brands that allow consumers to pay for products through installment plans, instead of potentially off-putting upfront costs. One example in action was a $140 Jeffrey Campbell shoe, available for purchase for four monthly installments of $35.

As economic ramifications are still to be navigated for fashion eCommerce retailers and consumers alike, a new purchasing landscape seems to be offering a potential solution to the question of just how luxury fashion retailers, in particular, are going to make their pieces affordable to a new range of savvy buyers going forward.

Enter: Buy Now, Pay Later, a new form of purchasing that is being embedded into a range of different fashion eCommerce retailers, both big and small.

Services such as Klarna, Afterpay, Affirm, and Openpay allow a shopper to purchase and receive the product upfront while financing a payment across a number of months. All of which are showing tremendous growth.

Whilst the aforementioned services have mostly been introduced into sites such as ASOS, Pagani, and Puma, luxury retailers have now also begun their foray into BNPL services.

Brands like Henri London, Burberry and Givenchy have all recently partnered with Klarna, and Henri London in particular have updated their site to state: "Quality comes at a price, no matter what you're buying. We want to make shopping an affordable option for everyone."

Gartner senior director analyst Derek Stubbs spoke on the subject to say that "Younger customers see new payment options as 'ubiquitous and necessary'. Consumers are going to places to make a purchase and not necessarily thinking about payments. But if a purchase can't be made by the platform they expect to use, they just won't go there."

During 2019, Klarna added 75,000 new merchants - one every 7 minutes and now boasts over 200,000 active merchants across 17 markets globally.

With recent reports suggesting that up to 65% of shoppers avoid credit cards for retail purchases, brands who choose to opt-in to installment payments lower the obstacles in making a purchase, such as those who are price-conscious and may be deterred by large, upfront purchase costs. This expands their audience and appeals to even the consumers who may be unable to initially afford the fashion brands they covet.

One such success story is the Canadian apparel brand Kotn, who opted to implement New York-based Quadpay. Kotn's chief digital officer Ben Sehl says the buy now, pay later scheme has led to better conversion rates as well as a slightly higher average order value.

"Yes, we are converting customers that we may naturally not have, because now we provide a new piece of the customer experience to them. But we are also seeing [that] even our customers who have been loyal to us for a very long time are also taking advantage of this alternative payment type."
Chad Miller, Senior Director of Digital Experience at DSW

Fintech startups are increasingly hopeful that eCommerce fashion retailers will continue to view buy now, pay later services as a gateway to making high-value purchases more affordable, and accessible to wider markets.

Going forward, eCommerce giant Shopify also has high hopes that its merchants will implement payment methods with installments including micro-payment and split payment options - the capability for which it is installing across its platform.

With fintech companies and selling platforms like Shopify making the means to implement these payment options easily accessible, retailers should prepare for the future of high-value purchases no longer needing to be specifically targeted toward a variety of affluent audiences.

This potentially exciting development opens a wealth of opportunity for high-end eCommerce fashion retailers, who could experience the chance to reach new audiences and scale new heights in their business by attracting a new market of consumers.

Fashion eCommerce: What's next?

Fashion will meet and conquer new frontiers. With every change, fashion returns to its roots of accessibility and identity, engaging new audiences with technology like Klarna and adapting its values and ethics to cater for genderless and sustainable fashion.

For eCommerce fashion retailers, it's time to try on these easily transitional changes. Merchant platforms like Shopify have made it easy to implement accessible payment options, and direct-to-consumer popularity means your eCommerce store can already get ahead of the rush if optimized correctly.

We hope these eCommerce fashion trends give you a taste of where the industry is headed - for ideas on how you can leverage them, check out our fashion showreel to see how Yieldify has helped leading fashion eCommerce brands, such as M.J. Bale, Marks & Spencer, and others improve their digital customer journeys.

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Fashion eCommerce: 9 Trends to Capitalize On In 2021 | Yieldify

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Discover 9 eCommerce fashion trends that are worth styling your eCommerce store around in 2021: from reCommerce to athleisure, seasonless fashion & more.

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Despite a dip in margins, discount and luxury outperformed the wider market in 2020, while the midmarket continued to be squeezed. However, performance was uneven, as countries with strong healthcare systems and economic resilience fared better than others. Among product categories, it was a breakout year for sportswear, with 42 percent of positive economic profit in the MGFI index coming from sportswear companies, amid strong growth for Chinese players.

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According to the Global Athleisure Market Report from Allied Market Research, athleisure is indeed still on the rise. In 2018, the athleisure market size was va

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According to the Global Athleisure Market Report from Allied Market Research, athleisure is indeed still on the rise. In 2018, the athleisure market size was valued at $155.2 billion, and by 2026, it is expected to reach $257.1 billion.

Everyone from Nike to Primark to Eres has launched athleisure lines to cash in on this $44 billion market (in the US alone), according to NPD Group. By many accounts, athleisure is the signature fashion trend of the 21st century so far. The expression comes from the contraction of “athletic” and “leisure”.

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https://www.whowhatwear.co.uk/fashion-by-the-decade/slide5

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When you think about it, in the course of human history, 100 years isn't a particularly long time. But in the course of fashion history, it's the difference between trying to get around in a bone-cinching girdle and ankle-length skirt, and the Nike leggings and Vans sneakers you might be wearing at this very moment.

In the intervening years, there have been major shifts in technology, politics, culture and social norms-and fashion has reflected that in its ever-changing cycle of trends. From the sky-high platforms of the '70s to the high-waisted bikinis of the '40s, we see plenty of the most popular looks of decades past serving as inspiration for designers today.
Below, take a look back at the most influential trends from the 1900s through to today (and see which ones you'd actually still consider wearing).

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The Most Influential Fashion Trends, Decade by Decade

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When you think about it, in the course of human history, 100 years isn't a particularly long time. But in the course of fashion history, it's the difference between trying to get around in a bone-cinching girdle and ankle-length skirt, and the Nike leggings and Vans sneakers you might be wearing at this very moment.

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he fashion industry is growing revenue in a very dynamic way. In 2020, the return of this market was approximately 1.46 trillion U.S. dollars. According to the Consumer Market Outlook, this value will increase to roughly 2.25 trillion U.S. dollars by 2025. To keep the revenue steady, retailers are introducing different types of modern technologies, tools and means like the Internet of things, facial recognition, autonomous delivery robots and store assistants, cashier-less stores, voice commerce and AI which replaced the traditional shopping experience.

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As the industry considers the shortcomings of its current means of operation, the future of the fashion show is being called into question. If clothes on the catwalk are immediately available to buy, the runway becomes less a practical resource for buyers and press to see new collections, and even more of an all-encompassing brand experience, designed to spawn a thousand social media moments. One thing to note – the end of this month will see the release of Oculus Rift, one of the world’s first consumer-aimed VR headsets, priced at $600 (that’s cheaper than a new iPhone). What this could mean for the future of the fashion show is yet to be seen – but it doesn’t seem unrealistic to expect that a few years down the line, we might all be getting up close and personal with fashion week from the comfort of our own headsets.

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Omnichannel shopping demands a totally different approach to the customer and the way products and services are delivered. Customer experience demands the reinv

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Millennials and Generation Z values are different from Baby Boomers ones, and experience is what they want. Nownership and experience above materialistic stuff. Brandship and not Flagship. It´s in the Experience Economy and Curated Experience where Augmented Reality and Virtual Reality will have an impact in fashion retail. It´s Fashtech. As an example, in Feb 17, the affordable luxury brand Coach installed VR headsets in stores to provide consumers with full access to its latest runway shows. The virtual reality experience was a partnership with IMG, Simon Malls and Facebook.

Zara is already betting for Experience in the Digital and Omnichannel era. Zara opened a pop-up store in London to show how online and offline are integrated. The store’s design features technology-enhanced elements aimed at elevating the customer experience. Store employees will have mobile devices to aid customers, and there also will be a card terminal system that operates with Bluetooth technology (WWD  -1/25/2018).

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https://www.dazeddigital.com/fashion/article/30163/1/is-virtual-reality-the-future-of-the-fashion-show

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When Alexander McQueen teamed up with Nick Knight's SHOWstudio in 2009 to become the first designer to livestream a show, the way we consume fashion changed forever. Unfortunately, the industry's first stream didn't quite go as planned - Lady Gaga tweeted that her new track "Bad Romance" was to be debuted as the models took to the runway, crashing the host website. Still, a new frontier had been broken, bringing online audiences closer to fashion - and it's one that this season is being pushed to even higher technological ground.

This week, Balenciaga announced that they would be streaming their AW16 show - the first under new creative director Demna Gvasalia of Vetements - to a mobile and tablet app in the form of 360 degree, virtual reality footage. Calling it "a new panorama, for a new era of Balenciaga", the house described the gesture as "an egalitarian proposition, allowing a worldwide audience the unique opportunity to view a Balenciaga show like never before...immediate and real-time for the new creative identity of the maison." While details on how this will look are sparse, we can assume that giant VR headsets won't be necessary - viewers will most likely be able to simply move their phones or manipulate their screens to control the direction of the camera.

"I'm excited about it because it gives the viewer an experience removed from both space and time" - Hussein Chalayan on Virtual Reality fashion

And Balenciaga aren't the only ones. Yesterday morning, renowned runway experimenter Hussein Chalayan announced that shortly after his show today, a 360 video will be available to view online. "I'm excited about it because it gives the viewer an experience removed from both space and time," the designer told us - in other words, the technology allows an almost omnipresent view of fashion. For Chalayan, who is working in collaboration with Swarovski, it's far from the first time he's dabbled in the high tech and futuristic - he's previously shown LED-lit dresses, transformative robotic outfits, and last season, models wore garments that simply melted away beneath streams of water.

360 filming is a technique that's already been employed in several high-profile cases - last season, for what was later revealed to be Raf Simons' final show for Dior, the house made a post-show video available in this style where viewers could use a click wheel to view different aspects of the runway. Back in June, they also debuted Dior Eyes, a 3D printed virtual reality headset found in select stores that promised to "lift the curtain" on the house's latest ready-to-wear show, giving shoppers an immersive look behind the scenes. Björk also famously used the technique for her recent Dazed-premiered "Stonemilker" video, and (unsurprisingly) companies have started exploring the pornographic, first-person POV possibilities of VR headsets.

One question might be - how does it all work? According to Sol Rogers, Managing Director of REWIND - the London-based production studio behind Björk's video, the technology has a couple of different iterations. "Creators have a great deal of choice when it comes to selecting the hardware used to film with," he explains. "Standard cameras can be adapted for 360 degree shooting with the use of bespoke rigs, this footage is then put through a post production pipeline to 'stitch' the multiple videos together to form a single spherical video. There is also a growing demand for 360 degree cameras which remove the need for such a labour-intensive post production period, such as the Theta S from Ricoh." And although the term virtual reality is being used interchangeably with 360 degree filming, Rogers insists that "There's a big difference between immersive pre-recorded video content - 360 degree content - and 'True VR'...and many in the industry object to mixing the two."

So why the sudden surge of interest? Rogers points to Facebook, who bought forerunning VR company Oculus for $2bn in 2014 in an epic case of Kickstarter-turned-goldmine. "Interest in Virtual Reality has exploded in the last three years, mainly thanks to Oculus and their CEO Palmer Luckey," he says. "They have been at the head of the pack when it comes to HMD (head mounted display) development, and its innovations have been a driving force behind the adoption of VR; as the technology continues to improve, more people want to try it which further drives demand for better and better hardware."

"The end of this month will see the release of Oculus Rift, one of the world's first consumer-aimed VR headsets...it doesn't seem unrealistic to expect that a few years down the line, we might all be getting up close and personal with fashion week from the comfort of our own headsets"

That certainly seems to be the case in fashion. Before Instagram was even invented, livestreams broke down the elitist walls encircling the hallowed, secret space of the runway show, opening it up to new global audiences. As technology improved, so did the streams - to the point where watching a runway online might even give you a better view than being there in the flesh. One recent example is Kanye West's Yeezy Season 3 show - with its sweeping camera angles and intimate close-ups, viewers streaming had a kind of epic, cinematic experience that those sat up in the stalls in Maidson Square Gardens were physically distanced from. The adoption of 360 is evidence that this digital democracy is ever-expanding, and gaining pace - with brands increasingly prioritising fans and consumers over now seemingly archaic systems (as with the See-Now, Buy-Now trend embraced to different extents by everyone from Burberry to Prada).

As the industry considers the shortcomings of its current means of operation, the future of the fashion show is being called into question. If clothes on the catwalk are immediately available to buy, the runway becomes less a practical resource for buyers and press to see new collections, and even more of an all-encompassing brand experience, designed to spawn a thousand social media moments. One thing to note - the end of this month will see the release of Oculus Rift, one of the world's first consumer-aimed VR headsets, priced at $600 (that's cheaper than a new iPhone). What this could mean for the future of the fashion show is yet to be seen - but it doesn't seem unrealistic to expect that a few years down the line, we might all be getting up close and personal with fashion week from the comfort of our own headsets.

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Is virtual reality the future of the fashion show?

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Balenciaga, Hussein Chalayan and Dior are all flirting with 360 degree filming - so is the runway video as we know it a thing of the past?

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VR in the Fashion Industry

Similarly, in the fashion industry, extended reality has been experimented with long before the COVID-19 outbreak, but was unable to gain significant footing in the industry, with many designers still preferring to show their collections at traditional in-person shows. However, the need for virtual technology in the fashion industry has been felt particularly acutely in recent times.

In the most recent spring/summer events for Paris Fashion Week, held February 24th through March 4th, most of Europe and America were still operating normally. However, according to Vogue Business, travel restrictions from China prevented eight China-based designers from travelling to Paris to show their works. As a contingency, Tomorrow London Ltd chief development officer Julie Gilhart coordinated a backup, having each designer create a video showing their work. While effective as a stopgap, this incident exposed an acute need in the fashion industry for a more high-level technological approach to remote fashion. “We all think we are so technically connected,” says Gilhart, “but this has made us realise we are actually not. We are using [tec

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“The obvious first step in the apparel industry is designing and development tools, and we are working with a lot of brands and a lot of supply chain companies 

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The potential value of fashion’s circular economy could be as much as $5 trillion, according to a new report by a group of high-profile industry and academic sp

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he fashion industry is turning towards a circular economy model that embraces slow and sustainable supply chains, which favor quality over quantity, and prolong

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SocialGarments are produced in low-income countries where labour laws do not always protect workers. Labour rights violations have traditionally been commonpla

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The fashion industry is turning towards a circular economy model that embraces slow and sustainable supply chains, which favor quality over quantity, and prolong the longevity of well-loved garments.

Fast fashion has a reputation for being a significant contributor to climate change and water pollution, while often supporting questionable labor practices – all in the name of low-cost, disposable items that are quickly worn out and end in a land fill. This is because fast fashion favors profit margins above all else. While luxury brands and haute couture are also closely scrutinized, they are leading the ‘green revolution’ towards making sustainable fashion more accessible and mainstream.

Photo by Tom Fisk from Pexels

OUR COLLECTION PRIORITIZES CRAFTMANSHIP

Karim Guest New York and the collection of designers at THE GUESTLIST epitomize slow fashion that is gentler to the environment, supports social responsibility, and champions the United Nations’ Sustainable Development Goal of sustainable consumption and production by 2030. Our collection prioritizes craftmanship, quality over quantity, and is created on a made-to-order basis.

OUR COLLECTION PRIORITIZES CRAFTSMANSHIP

The collection of designers at THE GUESTLIST epitomize slow fashion that is gentler to the environment, supports social responsibility, and champions the United Nations'Sustainable Development Goal of sustainable consumption and production by 2030. Our collections prioritize craftsmanship, quality over quantity, and each piece is created on a made-to-order basis.

OUR COLLECTION PRIORITIZES CRAFTSMANSHIP

The collection of designers at THE GUESTLIST epitomize slow fashion that is gentler to the environment, supports social responsibility, and champions the United Nations'Sustainable Development Goal of sustainable consumption and production by 2030. Our collections prioritize craftsmanship, quality over quantity, and each piece is created on a made-to-order basis.

WE ARE ONE OF OVER 60 FOUNDING SIGNATORIES

We’re one of over 60 founding signatories that have committed to The 2020 Circular Fashion Pledge  that was launch at Fashion Revolution Week, which coincided with the 50th anniversary of Earth Day – all in the midst of the global COVID-19 pandemic.

This global movement collaborates on effective solutions for the fashion sector of the future.The pledge aims to drastically reduce waste by 2030 by encouraging a take-back or resale model, increasing fabric recycling measures, and inspiring durable designs that allow for life-long repairability.

WE ARE ONE OF OVER 60 FOUNDING SIGNATORIES

We’re one of over 60 founding signatories that have committed to The 2020 Circular Fashion Pledge  that was launch at Fashion Revolution Week, which coincided with the 50th anniversary of Earth Day – all in the midst of the global COVID-19 pandemic.

This global movement collaborates on effective solutions for the fashion sector of the future.The pledge aims to drastically reduce waste by 2030 by encouraging a take-back or resale model, increasing fabric recycling measures, and inspiring durable designs that allow for life-long repairability.

BUSINESS AND SUSTAINABILITY GO HAND-IN-HAND

THE GUESTLIST strongly believes that business and sustainability go hand-in-hand. This is why our operations support a circular model. Our sustainability practices are committed to a more transparent and shorter supply chain – from how our materials are soured to how they are manufactured and consumed.

Our ethically-made cashmere garments follow principles of renewability, so as to allow them to be revived to their original condition. This is why we founded the Cashmere Spa in the textile town of Mühlhausen in Germany. This treatment facility rejuvenates your beloved cashmere outfits each season or whenever they’re in need of some TLC.

In this way, each garment becomes an investment piece and treasured keepsake. One that has a longer ‘wear’ life and can be restored to last a lifetime. This is how the Cashmere Spa initiative reduces the production of large amounts of cashmere each season.

DOING THINGS THE RIGHT WAY WILL NEVER GO OUT OF STYLE

Because our business maintains ownership of all materials, resources and waste, we take utmost care to ensure that our waste-management and recycling practices are in line with international regulations, and prioritize the people at the heart of our operations.

We foresee that the COVID-19 pandemic and its global economic repercussions will witness a slow-down in excessive consumerism. It will turn consumers’ focus to prolonging the longevity of their well-loved garments to become an asset in any wardrobe.

THE GUESTLIST truly believes that sustainability and doing things the right way, by the book, will never go out of style.

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CIRCULAR FASHION OF THE FUTURE The fashion industry is turning towards a circular economy model that embraces slow and sustainable supply chains, which favor quality over quantity, and prolong the longevity of well-loved garments. Fast fashion has a reputation for bein…

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When you toss out your old jeans, have you ever wondered what happens to them?The average American citizen will throw away 81 pounds of clothing this year. Th

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In simple words, fashion products should be designed with the notion of resource efficiency, non-toxicity, biodegradability, and recyclability in mind. They sho

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In 2020, the sporting goods industry contracted for the first time since the financial crisis of 2007-08. Most brands, retailers, and manufacturers finished the year significantly in the red, despite a bounce back in activity after the first and before the second wave of COVID-19-related lockdowns. The exception was the Chinese market, which continued its role as the industry's growth engine after expanding at an average of 16.5 percent a year (CAGR) from 2015 to 2019. Sporting goods companies saw their market valuations fall in the early months of the pandemic. However, they tended to outperform the wider marker as the year progressed, with sports-equipment makers (particularly bicycle and digitally enabled fitness equipment) doing especially well. Sportswear companies were also more resilient than the rest of the apparel industry (Exhibit 1).

The report is designed to present the latest thinking on themes that will be the cornerstones of the emerging new reality for the sporting goods industry.

The COVID-19 pandemic had a profound impact on the global sportswear market in 2020, with most companies posting weaker sales. Specific sports were impacted with varying degrees, depending on how accessible they were in a locked-down environment. Outdoor individual sports and home workouts both saw increased participation. Team sports and indoor sports struggled, due in part to the postponement or cancellation of major sporting events. Among emerging opportunities, women's clothing came to the fore amid increased focus on activities such as home workouts, running, yoga, and Pilates.

The impact of the pandemic goes beyond temporary performance-it has also accelerated changes that will have long-lasting impacts on companies throughout the sporting goods value chain. COVID-19 has ushered in the next normal for the industry, defined by factors including digital commerce, rising demand for sustainable products, and increasing participation in individual forms of sports and exercise. To win in the new environment, the industry needs to adapt both its customer proposition and its operational capabilities.

A look ahead: 2021 outlook

The coming 12 months will likely be characterized by a more positive outlook, albeit amid uncertainty caused by an unfolding second wave of COVID-19 and the relatively slow ramp-up of vaccinations. Executives are cautiously optimistic and are focused on growth opportunities: 64 percent of respondents to the WFSGI-McKinsey Sporting Goods Survey expect "better" or "much better" market conditions. The biggest challenges for the coming year are seen in supply chains and COVID-19-related issues, including ongoing challenges relating to physical-activity levels and indoor- and team-sport participation. The greatest opportunities, meanwhile, are associated with the potential return of large sports events, including, potentially, the Olympic and Paralympic Games and the ongoing rise in popularity of outdoor and home-based sports. Categories that did well in 2020 (including outdoor individual sports, home exercise, yoga, e-sports, and virtual races) are expected to remain popular in 2021. Categories that saw a limited increase in participation, or a decline, are likely to make a partial recovery, but at a lower rate than 2020's winning categories (Exhibit 2). The great unknown for 2021 is the trajectory of COVID-19. Successful players, however, will be defined by an ability to make smart moves to leverage the opportunities highlighted in the "trends" section of the report.

Trends set to shape the industry in 2021

The report presents eight key themes set to shape the sporting goods industry in 2021 and beyond. Most were already emerging ahead of COVID-19, but the dramatic events of the past year have accelerated their introduction and heightened their impact. The research shows it will be critical for sporting goods players to align with these evolving dynamics in order to succeed in the next normal. The trends can be broadly described under three banners: consumer shifts, digital leap, and industry disruption (Exhibit 3).

Consumer shifts

1. Athleisure-the new default and a competitive battleground. Athleisure was a megatrend before COVID-19, but the pandemic has served to further blur the lines between work and free time, and there is a rising acceptance of comfortable wear in previously more formal contexts. With fashion brands increasingly entering this segment, sporting goods players need to leverage their innovation abilities and market knowledge in order to win in this increasingly contested battleground.

2. Physical-activity gap-an opportunity to put healthy lifestyles within reach of all. COVID-19 has triggered significant shifts in physical-activity levels. Around 40 percent of people are less active, while around 30 percent are more active. Unfortunately, a physical-activity gap linked to income levels already exists, with less-affluent households tending to exercising less. The crisis will drive more households into lower-income groups, and thus widen the physical-activity gap. The sporting goods industry should therefore embrace a multistakeholder approach to tackle physical inertia, particularly in the communities left behind.

3. Sustainability-the COVID-19-accelerated next normal. Sustainability has become an increasingly urgent consumer priority, and companies have responded by introducing more sustainable products-a trend accelerated by the pandemic. The onus is now on companies to secure sustainable supply chains. Since recycling is likely to be a bottleneck, brands need to engage with innovative concepts, such as direct-to-consumer circularity.

Digital leap

4. Digital-enabled fitness and exercise communities take center stage. The past year saw a drastic shift toward digital fitness, driven by physical-distancing and stay-at-home requirements. Digital fitness won't fully replace traditional sports and exercise but rather will enhance them in a "bionic" hybrid model. Digital workouts will continue to be a hot trend for 2021 and beyond, particularly when they offer an engaging and inspiring element and allow remote exercising in a simulated community setting.

5. Leap forward in online-an accelerating business-model shift to direct to consumer. COVID-19-related store closures lifted the online growth curve to a new level, enabling multiple brands to grow e-tailing and even direct-to-consumer sales. As a result, the past year has seen a leap forward in online shopping, and many first-time shoppers will stick with their new habits. With online penetration expected to stabilize at around 25 percent in 2021, six times higher than before the pandemic, brands and retailers need to adjust their business models fast. Brands need to put digital commerce at the center and accelerate direct to consumer, and retailers need to deliver seamless and integrated omnichannel experiences.

6. Marketing shift from assets to influencers-an opportunity to make digital pay. Digital marketing traditionally focused on assets with broad visibility (for example, club, league, or event sponsorships). With sporting events cancelled, postponed, or played in empty stadiums, and consumers spending even more time online, sporting goods industry players need to shift to digital. Furthermore, to build awareness, credibility, and engagement, brands need to increasingly work directly with individual athletes as influencers, who have a much longer reach than events or associations. However, as athletes are role models, and consumers expect them to take a stance on topics important to them, brands needs to ensure alignment with these messages.

Industry disruption

7. Retail under pressure-but a critical part of the future channel mix. Brick-and-mortar stores were already under pressure pre-COVID-19, and lockdown measures have accelerated the retail crisis amid widespread closures and increasing financial pressure. To attract consumers back to stores, retail needs to find new purpose, new experiences, and new levels of convenience that cannot be offered digitally.

8. Supply chains-the flexibility imperative and a raised bar on agility. More agile supply chains have become a permanent feature on company agendas. In a post-COVID-19 world characterized by shorter demand cycles, e-commerce, and closer direct-to-consumer relationships, they will be table stakes in some markets. Amid persistent uncertainty, it will make sense to both build stronger supply-chain partnerships and explore alternatives such as near-shoring.

Winning in the next normal

Pre-COVID-19, many companies were riding a wave of increased sports participation. COVID-19 has also raised the bar for winning, amid tougher market conditions, pressure on physical retail, and the need for investment to align with an increasingly dynamic industry landscape (Exhibit 4). In the next normal, winners will be characterized by:

a strong presence in growing segments and sports categories, including women, China, and athleisure (which we predict together will account for around two-thirds of growth in 2020 to 2023), as well as running and biking

an excellent direct-to-consumer business model, including a proprietary e-commerce and seamless omnichannel offering, powered by a cutting-edge back end (expertise, fast development cycles, and omnichannel capabilities)

direct connection to consumers, through digital communities, loyalty programs, and the like

a purpose-driven retail footprint, with specific formats for different store types

credibility on sustainability, either as a differentiator or on par with industry, at a minimum

revisited supply-chain relationships, with built-in agility (for example, local-for-local sourcing and closer partnerships)

sports marketing optimized for digital channels, with a focus on influencers (for example, individual athletes) who are aligned with brand values

agility in planning and budgeting, to respond quickly to changes in the market environment (including a potential reemergence of COVID-19)

Winning players will not necessarily possess all these attributes. However, those that can get a grip on most of them will be best positioned to create a virtuous cycle of commercial excellence, increased sales-leading to higher fixed-cost degression-and more cash for investment. Players that fail to make the necessary changes, conversely, may find themselves stuck in a vicious cycle of worsening commercial performance, higher relative costs, and decreasing investment potential that will undermine their ability to realize opportunities.
Download Sporting Goods 2021: The next normal for an industry in flux, the full report on which this article is based (PDF-9.39 MB).

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Sporting goods 2021: The next normal for an industry in flux

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In 2020, the sporting goods industry contracted for the first time since the financial crisis of 2007-08. Most brands, retailers, and manufacturers finished the year significantly in the red, despite a bounce back in activity after the first and before the second wave of COVID-19-related lockdowns.

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HOLLI ROGERS  FROM BROWNS May 26th, 2022.  Farefetch cheif brand officer as well as browns.  

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HOLLI ROGERS  FROM BROWNS May 26th, 2022.  Farefetch cheif brand officer as well as browns.  

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With the digital acceleration we're witnessing, and the great Metaverse movement. That is a conversation everyone is enrolling to. Do you live? Do you believe the future of fashion will exclusively be built up by technologists such as CGI imagery AR and VR? To what extent do you agree or disagree with this matter? And if so, what would this mean for physical stores?

Very good question, reggae and thank you everybody for having me and for taking the time out of your day.

I mean, you have to talk about Metaverse, right? I mean, I think it's actually a must at this point.I do think that it's an interesting balance. I think we've got

how long is the internet been around for quite a while? How many? How long is ecommerce been around at least 20 years.

And ecommerce is right now still only, like 20% If you talk about luxury goods 20% of the market. And it grew exponentially in the last two years because of the stores being offline, essentially,the physical stores. So while I 100%. Think you know Metaverse is something we talk a lot about here at Farfetch in general, what it means how to engage with it. We just launched beauty collection a month ago. And it was very important that we started playing in the more in the gaming space that obviously fits in nicely to that. But knowing that that is a customer is interested in that, makes it important. It's to like two worlds kind of converging. And the gaming world is absolutely massive. The Metaverse has so much potential, understanding people's appetite for ownership, but of digital goods versus physical goods. And you know, for those of us that have been around a little while, we still love the concept of owning physical.

But I don't live my life in the digital space, per say. But I do know that increasingly more and more people do and you want to personalize what you look like where you're where you live, you know if it's a space and sandbox, you know, whatever that looks like whatever you want it to be. And I think that's what's super exciting about it is like, right now there are no parameters around what it is, it's being built in front of us. And I think that's what's super exciting and why it's super exciting for I think fashion in general has a tendency to lean into the space of, of the revolutionary the pioneering the willing to test and do different things. And I think that that's something that obviously we are all drawn to I mean, I'm sure all of you guys find it incredibly interesting.

But then ultimately, there's a whole bunch of people that don't care, can't understand it can't wrap their head around it, don't want to do want dining to do with it much like a lot of people felt about the internet and EECOM shopping. So I think every like interestingly, this definitely has a place. And I think for the more advanced it will have more of a place and for those less advanced, it'll be just like, oh, isn't that funny what those kids are doing?

And you know, and those guys and those players will probably be fine for a while because I think my point of bringing up how long these

like E commerce been around is that it takes actually a lot longer than we think for people to adopt new ways of engaging of consuming and yeah, there's some very fast movers but I think if you're talking about the vast majority of the world, it does take a lot longer and you know a lot of that's technology dependent, you know, do they have Wi Fi Do they not do they have 5g 4g, 3g You know what types of apps are enabled or not so there's like there's a lot of considerations in regards to that. But

I find it incredibly exciting. I know Joe's a finds it incredibly exciting and there's we've got a team dedicated to it here, who's kind of exploring what it means. We've started taking cryptocurrency as a payment form at BROWNS, which is very exciting. Got to see the first transaction done through

actually Sandrine who runs our luxury retail store

sort of the future component, she has

crypto wallet and she actually bought something and paid with the new terminals that we have in the store. And it was very seamless and very quick and like you would have never guessed you were plate paying with crypto. Not that I know what to expect. But you would think it actually would be probably very easy. But that was actually very exciting. And off the off white stores are now taking crypto as a form of payment. And I think I just read yesterday that Balenciaga is as well. So obviously, we're starting to see some adoption as we move forward in this space. But was there anything else specifically? Was that a static answer? You people answer and I have to say, I totally agree with you. You know, asking the similar question to Caroline Issa thank magazines do because initially, I was a bit sceptical about this matter of the metaverse. And she just told me as you did, you know, it's exciting, you have to tackle and embrace it. And, you know, see where, how you can implement it, even in the fashion world in the editorial side. And overall, see how you can develop on these notions. And yeah, so it was perfect. It was so thank you, it was so interesting. We did a focus group, a couple of focus groups at the end of last year with

like a handful of Gen Z, because I was very curious, as we were going into beauty, I wanted to understand a bit more specifically. And you know, legally, I can't ask in my office, how old people are. So I couldn't actually get them together in the office per se. So we had to go out and talk to a bunch of different people kind of in the fashion space as well, because I wanted a particular type of viewpoint. But one of the questions I specifically asked or had the team ask was, what do you think of the metaverse? And it was fascinating, because all of them said they pretty much don't care. So it was really enlightening to me. Because here we are like going oh my god, what does this mean? Like? How do you wrap your head around it? How's it all connected? And like a whole bunch of them going down? I don't really care.

Ambulance

polarisation of answers, I guess. Yeah. Perfect, then that's that was my question from my side. And now I'll hand the virtual microphone to Chiara following online. Thank you. Thank you, Enrique. And hello, Holly, and thank you for being with us today and sharing some of your time with us.

So without further ado, I will just go ahead with the next question. So we asked you a similar question last time you came. But now since you launched the beauty department, we wanted to ask you so in how did you reboot fashion? When you acquired it when you became the fashion chair? And what was the process like? And if you could describe if there was any experience or any challenges? And how did you overcome these challenges? Oh, my God. Thank you, Kara. That's a very loaded question.

I've now it's actually interesting. This year marks my seventh year in the business and

I feel it's gone by very quickly and at times very slowly. But

I think it was super exciting. When Joe's a asked me to join, they just acquired browns and they asked me to join to run browns. And

something I had never done before physical retail my entire previous 12 years of experience had been in digital retail. And so like getting getting an understanding of what physical actually meant was was was a real challenge to me to start with.

And then dealing with physical stores and the staff in stores and understanding who the customer was, I mean, I think it was literally all so new and like how do you engage in the physical space? And I know how to like I knew all the digital elements of how to engage with customers, but the physical becomes something very different and you need you really need to play into that in a different way. And I think that's one of the reasons why for me when we started talking about all the different layers to the business and you know, you get somebody might the head of my tech team was like, okay, so Holly, it's omni channel, we're just talking omni channel and I'm like, No, actually, we're not talking omni channel. Like what is omni channel mean? I'm like it's multi channel, because each one of these channels has its own nuances. And yes, it brings you together and can give you if you do it well a single source of truth in terms of the customer and what their purchase behaviour is, and maybe even viewing browsing behaviour, but it each needs to be handled in quite a different way.

And he and I went back and forth on this one for quite a while it was really funny. Interestingly enough, as a CEO, I won that conversation, but

it was definitely I think, and he finally got it after, after a little bit of time he finally understood like, you're right, actually, because we do need to address, you know, the people that walk physically into the store. And one way the people that shop online and another way the people that weave between the two and another way, and I think that's been a big part of my journey through Browns is understanding how do you make it the most engaging, you can through each one of those channels. And with

opening, so I had to shut a couple of stores. So I ended up shutting, there was a store on Sloane Street and a store on South Molton Street, which was the first flagship store. And I think honestly, Kara, one of the most challenging things was telling Bernstein's who started the store that we bought grounds from telling them that I was going to shut that store down, because I was just like, Oh, my God, they've been they had the store, it was, I think, at that point was like, 48 years old. And I remember speaking to a very famous architect about maybe working with us on revamping that store space. And she was very funny. She's like, you know what, you just leave it, she was very, very fast with me on the phone, she's like, you just leave it as it is. It's perfect the way it is. There's nothing wrong with browns, and I was like, oh, maybe she hasn't been in in a while.

And so you start questioning yourself and where you're going and what you think is right. And but I ultimately knew this space was no longer adequate for what we needed to do and what we stood for and where we were going. And a lot of that being technology enabled and needing to be technology enabled, meant that this crazy layout of five different townhouses, sandwiched together wasn't allowing for the technology and the Wi Fi to play into the customer journey. And so we needed to move and telling the Bernstein's I was petrified, honestly, so petrified. and Mrs. B says to me, because it was very important to me through the whole the whole time as being very respectful of heritage and what they built, but knowing that we were taking it into the future, and but always knowing that they had, that I was a partner to what they had started. And I think that was for me, very important. And when I told her, she looked at me, she goes, What's taking you so long? And I was like,

okay, great, thank you. Anyway, we had a great new space down the street, when we got really lucky in finding the new location on Brook Street. And it was I always say, when we got shown the real estate, I was like, yes, like without hesitation. And I was like, This is honestly, this is a gift, a gift from

the world to us on in terms of like the proximity to the previous location. And then also, interestingly enough, just putting us that little bit further in to an, I guess, a more relative audience to who we were speaking to, from a luxury standpoint. So, you know, Claridges is just a few doors down now. And then the other direction is Bond Street, and there's, they're opening a Mandarin Oriental Hotel. And then there's the main restaurant that just opened not too long ago. So it's like, literally all the right kind of people and even the team in the store now talk about the fact that the types of people that come in the store now are very, very different than when it was just up the street. So I think it's, you know, there's a lot about kind of doing your due diligence in terms of what makes sense for you as a business and the future but then also trusting to a degree the gut instinct of what's right and knowing when you need to move and being respectful but maybe needing to do it a little bit sooner.

Yeah, I mean, I could talk forever about it. So I don't know I don't know it's amazing work you guys.

It's great. Thank you. It's it's actually very very helpful for us especially second year students. So the buying pathway has to open the concession inside bronze east

and then the business pathway has to open a whole store for matches fashion.

So it's actually are in house.

So the challenge is to open a new point of sale for matching blinded so in your area. Oh.

Very interesting to your answer was super helpful also in terms of customer experience, and I love them how you said that you need like a different experience for each channel so that the customers have different needs. So very helpful. Thank you so much.

And continuing on this topic. So as I'm, as I mentioned, like the East London is a big part of our projects, especially for second year term. So in October 2017

European brands east in Shoreditch, so we would like to know what decided you and what were the goals and objectives of this new store?

Yeah, I can't believe it's already been that long. It's, I think, for us, it was to try and get

a different for people to have a different perspective on what grounds was. So back to like the fact that the store had been in existence for 40 plus years. At that point, everybody just thought of the flagship store. And what I was really trying to do, by opening Browns East was changed the narrative around what brown stood for. And instead of something that sat in the past, instead, something that sits in the future. And for me, it was like, how do you bring the you know, the online and the offline, hopefully into one space. And

so hunted around for ages, it felt like for that space of almost got another space, like literally a block away. And that did not end up playing out because of the landlords were incredibly difficult. And then we ended up taking that space that we're in now, which actually, I'm quite thankful that we ended up there, because actually, the footprint of the building is not gigantic, which I quite like, because you can make it you know, for me, it's always been important that brown stays in the consumers eyes of boutique, a very interesting, like BG boutique. And so they feel like they get more attentive customer service that they feel like it's kind of just for them. And I think going into short it. What I had found out after we decided we were going to do it was that actually, so many luxury brands had been looking and shortage because I think everybody understood, but there were so worried about footfall and how you would actually make a profit in that part of town and what it meant what it meant for me, though, in terms of stick changing the narrative around browns, but it was also about,

you know, quite frankly, I knew I wasn't going to have anybody complaining to me that no, you can't sell my product in your store, because they had there was no one else selling there, you know, the Gucci and the salons and all that in that part of town. And so I did something that probably not too many other people do, and I and it was definitely not arrogance, it was kind of speed to market to be honest with you. But it was like, we're just going to open this store, we're going to tell three brands, give them some in depth ideas around what we're doing.

Because we know they'll kick up a bit more of a fuss because of course they sell luxury product. And they should be very protective. But we're just going to see how it plays out and who wants to participate in this space. And we had a few of them go, no, no, no, you can't put you can't put our product in that store. And then after about two months of selling, they were like, can you please put our product in your store? It's really cool. And we're so upset that we didn't open a store over there. You did it first. You know, and I think we've subsequently seen like Gucci takeover

that one house and do a pop up there for quite a long time. And then Bottega Veneta down wretched Street as well. So it's been, you know, obviously host has been there for a while. So that's, it's been really interesting. And I probably missed a few in there too. But it's been really interesting to see what's gone on in that space. And I think for us also it was the place where we could truly start to weave in the

technology into the customer journey. So that was where we kind of did the store for one concept where you could take the upstairs was two has been up until we launched beauty was the idea that you could come in and have an e book an appointment with a stylist to actually order in whatever products you wanted. So hence the store for one and then you could open the Mikado pod to open them up and you could actually have your friends come and it could be like a party up there if you wanted it to be that, but just a real like one on one kind of customer service area, but then, you know, more accessible product downstairs. And something that was important to me was like being very conscientious of the neighbourhood in which you exist and not wanting to be like just a direct copy of like a Mayfair store in Shoreditch that would make absolutely no sense really speaking to the audience and the community around you trying to engage and it was really interesting because we have people that come in the store like every week, they just they live they live locally and they just love coming in and they're like I can't believe you did this and put the store over here and they really love like Nick Grimshaw is in there all the time. He loves browns. You

He lives right around the corner. But that and I think another part of it for me. So besides the technology, and trying to move the narrative forward around Browns was also part of that narrative was like, what do we stand for from a values perspective. And the

one thing I have noticed, since I've been able to spend a bit more time on the shop floor was the fact that this idea of

gendered clothing was becoming less and less important. And while we have, I think we have it all set up that way, because that's just historically how it's been set up. You've got your department set up and the back end of your inventory system. So it's actually really hard to break out of, but one of the things I wanted us to do when we opened that store was just mix, mix clothes for men's and women's all together. Because for me, it was like, it's actually not about that it was about and this was five years ago. So I mean, I think, you know, decently forward thinking, but like mixing it together, because it's not about that. It's about what you like, and then what suits you. And I remember,

he's actually the guy who's running the business. Now, Paul, he's the MD, and he was our CEO at the time. And he was so funny. We were standing on the shop floor just not long after we'd opened. And I think it was a wide project shirt that I've been looking at. It's quite oversized. And I've been looking at it. I was like, Oh, I thought it could be a shirt dress. And I actually don't even know, because we had men's and women's and white projects. I don't even know what it was. And he picked it up. He's like, I tried this. On the other day. I was like, me too. And he was horrified.

He was absolutely horrified. And I was like, why is that a problem. I mean, it's just a shirt. Anyway, it was quite funny. But I think it's been really interesting. And I think and interesting. Also like our labels, when we did the rebrand.

One of the concepts was to split rounds into two tags, and one was bro and the other was wn s. And it actually plays out perfectly. So all the tags in the store that our men say bro, and all the women's, say wn s. So like, if you really want to know, you can actually just look at the tag and see. And that literally just played out by accident, I'd love to say that was by design. But that was not necessarily the case. But

But yeah, so that was really important for me was that piece of it. And then the experiential because we also have had an immersive room, which changed every couple of months, which we now actually adopted into the Bourke Street store because it was a concept that customers really loved. And it's a talking point, which is really important, I think when you're talking about retail and engagement of customers. But we've now since moved that into our beauty space for brands and that shortage store. So it's immersed you in beauty now.

Leave it like the entryway is another great space in terms of drawing people in. And it was like something we I think notoriously retail has always been so stuck to Windows, the idea of windows and like, what are you going to do in your windows for Christmas or holiday or whatever. And so it was a conversation we had to have like we're moving into stores that really don't have windows? And actually it's kind of freeing when you think about it, because it's like, actually it makes it more about what's actually going on inside as opposed to like this. People go, I know what you're all about keep walking. It's like now they have to engage and come in. So

So yeah, there's I mean, it's a I think it's ends up being like, even though it's not a huge space ends up being quite an engaging space.

Amazing. Great, thank you so much. This was really helpful for our project. And also I love the tag story.

But also, I love how this feeling of yes, you have closed there. And you just choose whatever you like, and whatever will fit you and suit you. And it's great. Thank you so much. That's all for my side. So I'm going to pass pass on to Sam, for the last questions. But thank you again for being with us. Thank you, of course, I have to leave thank you for being so tap into what you said about needing a new outlook for East London. How do you enhance brands, physical retail stores to make it more sustainable and conscious? And also since brands brands and also digital, how do you translate that digitally?

Very good question.

So I think generally our approach

is, I mean, actually for a little while I had until COVID basically hit. We had delivered local deliveries we were doing

With electric bikes, and it was also because of Brexit but why we had to stop doing it but

on electric bikes and guys on skateboards because I was like That way they can make use of public transport and keep it really, you know, like from

pollution standpoint not continuing to pollute and the process of of getting your product. Because with Brexit we actually had to move our warehouse to the Netherlands because it became too costly to actually keep it in this country. Unfortunately, we have a small one now. But

yeah, so we, you can't really skateboard too quickly from the Netherlands to London,

we might have a few unhappy delivery men if we did that, or delivery people.

But circularity and

the environment are really big conversations that we're constantly having, I think little, little things that we did very early on was like, you know how when you go into stores, a lot of times people offer you something to drink, and a lot of times they'll offer you a bottle of water that's in a plastic bottle. So we made sure that we did not do that anymore, we started getting filtered water.

And just explaining to the customer that this is actually filtered water, because we don't want to we want to reduce the rubbish that we're actually generating as a business. We went in and we looked at like all of our packaging, from the email, our email from the IE concession or E commerce to many verb to many different terminology for me to keep in my head, the E commerce orders, really looking at, you know, box sizes, inner box, outer box, the tissue paper, all the different components that you usually include. And it's like this really interesting balance between what's considered luxury.

And it's different for everybody. It's so vastly different. And do people want another box? Do people want another interlining? Do they feel guilty about getting that piece? Do they feel like they have to hold on to it and then feel terrible if they throw it in the trash. And so I think it's like, if we are giving them something, maybe give them something they can reuse. And I think that was really important to me when we were developing the boxes. Because you are a luxury store that sells very high end product. So you also don't want people to have

an experience with you that feels maybe to throw away as well. So I think there's there's just a really interesting place you have to sit and giving people the option of whether or not they want conscious packaging or not, I think sort of helps in that conversation when they're shopping online. But I remember when we did the little bags that we put the product and we put it in the box and ship it so we got rid of tissue paper altogether. Because again, wasteful, you can't really reuse it as a consumer. So we we got the drawstring bags, and I remember talking to our head of visual experience. I said can we get this made out of recycled material? So she went back to the supplier? The supplier was like no.

And I was like, Are you you gotta be kidding me at this point. I mean, this was several years ago. This is like five years ago now. And I was like, Are you sure? Like that just doesn't even seem logical to me. There's got to be fabric made out of recycled materials that we can actually utilise. Okay, yeah, then they sent me something offs, terrible quality, like it felt like a you can't put you can't pack

a really expensive dress in that. So we went back and forth. And eventually, you know what they found something that was like, quite felt quite high end. And it's what we've been using ever since. And I think that then we also realised that maybe people were getting too many of these. So we actually have it so that you can, if you feel like it and you're sending back a return, you can actually just return any unused

bags, and we'll take those back. So I think it was it, there's a lot about like reducing, maybe reducing where you can and then reusing what you can. And then obviously recycling, which is also a big a big component of what we do with what we have in the warehouse and then also in the stores. And I think I remember walking one day I was walking home from from South Melton Street, and I happen to walk because I couldn't. I didn't really like walking on Oxford Street too much because at the time was way too busy with people. But one street, just south of there is I guess maybe where Primark puts all of their bins because it's like right along there on Oxford Street. And I remember walking past three containers the size of probably a lorry of just hangers, plastic hangers and I was at

absolutely mortified. And realizing, obviously, that's the scale of their business, but also recognizing what can we all do to make that difference. So I think, you know, that's in that space. And then the restaurant that we actually decided to work with the new store on Brook Street is called native. And there is a zero waste concept. So you can't do every not everything is possible to do that. But they will take stuff from the previous day, reuse it and make whatever the menu items are for the day, they'll go and use parts of of a fish that maybe other people are a vegetable that other people wouldn't use. So I think that was playing into it as well. A lot of the interiors were either vintage pieces, and or we didn't change some of the original features from the store when we redid it. So really kind of embracing the past, and holding on and holding on to the past, but trying to make it modern, but recognizing that with the history there is so much more story to tell, so recognizing that there is beaty in that, in also the product that we sell.

# data[].attributes.body
So, which are the trends that we believe will shape the fashion system. So, we backward them in three main categories and out the global economies affecting Of course, the overall fashion and also the lifestyle market. Number two, how the shift from a consumer perspective is a core is is affected the behaviour, the perspective and also the retracing, and of course, the merchandising that the fashion company and the fashion system should be rapidly adapting. And, of course, overall, our deficiencies thing is rapidly evolving according to channels according to a country of origin and mixed effect technology, and also the bread racing nation now, as is happening us, but it's also very meaningful in Europe and in Asia. So, all in all, I think, what is important to mention, let's go one by one better for the global economy, and either recover or neither recovery or logistic gridlock of effective strongly and practice from the the margin contribution for all the fashion system for our fists of the fashion CEO that in that we interview for the new state of fashion, and reported an uneven recovery for 22 inflammatory given the global turmoil given the worrying of course, also given the logistic gridlock that is affecting the supply chain. If we take for example, the most important raw material like the pattern like nylon, feather, leather, and so on and so forth, cashmere and wool, let me say the variation between 2020 or end of 2019. And today, it range from 60 to 250% increase. Of course, these affect a lot the buying is affects a lot the margin of the products, which doesn't mean and this is important because sometimes I see in a random Financial Times that oh my god, raw material is increased 1% So people believe that the product would buy one 50% more. Of course, it's not because a t shirt is composed by different kind of raw materials different kinds of costs, which imply a Cox impact of cotton for example, less than 1/3 and the cotton part for that part of the cotton is less than 1/4 itself. So which means that at the end of the day 250% increase in the fibre price for the final costs for a T shirt in cotton is around 6%, CMT included and that's number one. So, in terms of output and in terms of take away the key initiatives and the key priority for the CEO is secure the recovery secure the recovery is time that the majority of the fashion MCs today there is no control tower for all the cost control and at the same time of course they are putting in place procurement strategy and procurement excellence department to renegotiate create all bi spreadsheet and also a flying team that go from rest of words to forest which are the bases they usually procurement are divided into two secure quality and cost, consumer shift consumer shift, it's something that probably we perceive closer now to the more traditional fashion world wide global economies, more CFO CEO driven mother consumer shift, we identified three main themes. So number one is the reputation of the leader of the laxer into the domestic market. And of course you are aware of the fact that the Chinese economy due to the MO to Chinese tourists due to the COVID have been ranked by trading a lot this spending this luxury spending and also with the opening of China in

free tax zone, the suspend quite an important trend for all them. So just to give you an idea the overall Chinese spending abroad has been diminished from Mark for 80 to 80% in value, value 2020 Value 2021 We're the remote of quietness and I think one more important thing is and this is that the global footprint in the in the retail of the luxury and fashion, the fashion brands has been impacted a lot because the return per square metre incidents that they add this is dramatically change now. So these were stores that were ranging from 30 to 40 to 45,000 units

because a workload is dirty Yeah, that's the people I just remind everyone to the microphones after two years of COVID almost

I this is impacting a lot their capex and it's impacting a lot their geographical footprint, what are their report, what are the report is totally changing from a merchandising strategy perspective. The assortment is now change from one more time from athleisure. And let's say less occasion where tomorrow occasion where so the aisles and and the shoes are back on track, the more formal things are back. And of course, this is going to become one of the major event into the merchandising strategy and community assortment evolution for fashion competent companies meet diverse mindset is becoming definitely central in all the consumer shift. And, of course, especially with the advent of Gen Zed playing video games, and also we record the more than seven hours per day. Sorry, more than seven hours per week played on the game is becoming a fundamental and pivotal role for attracting the Gen Zed and actually onboarding them on this fashion world that is attracting a lot of a lot of brands to create and design products for the gaming and products for the retailers. The in terms of actions, so the new shape of demand has to be redesigned, both in from from a geographical footprint for the retail and both from Merchandising perspective. And of course, strengthening the digital adoption, which doesn't mean anymore that companies and only to buy or sell online, but they have to interact, they have to use the channel as a channel for dialogue to create a dialogue with the consumer and with the final consumer fashion system. The third big trends and the third big bucket we discover is that social shopping is becoming more and more important that there's been a surge into the saris not this one. Let me report Yeah, there we go. I'm sorry. There we go. So is becoming more and more important, and 37% of the fashion executive we work with, they believe that is going to become one of the most fundamental channel and go to market for engaging in for distributing and selling the product in the very short term. What is important to say is that one more time, the differences between US, Europe and China is becoming more and more long in terms of adoption shopping in in the premium and mass market in the US is now around 40% of the adoption of the sales while in Europe and while in Asia, it's still below 10% sustainability will not be something that we avoid to talk of course but it's a little bit different. In the in the in the past we were talking about how to become to create a sustainable business model how to create something that could pollute less and to create less greenhouse emission. Now we're talking for more sophistic and we are advocating for a more sophisticated business models with any business model, which basically mean typical or close loop textile business model. This is important because the leftover of the within the Metro of the brands will not be of course discarded or incinerated anymore. And there is a value of the array, which is another item of value for the balance sheet but it was a value for usage there is a value for companies that need of course, to adopt large scale collection certain processes, were going to times partner with startups and process them into something more useful and convenient for the society. And for the mission perspective, I think of this part on this point that we are advancing more and more in the fashion system. So, we are not talking anymore about sustainability per se, but it's becoming something more related into responsibility. So, taking care of the planet taking care of business model and brands, which are taking care of the people

together with the mission together with them with the sustainability of the environment is becoming something bonded into that is going really together with with sustainability and simpler textile that we are exploding here. So, and also this is reflected from some of the most emerging brands which are playing this game and I think they're becoming very close to the majority of the of the Gen Zed consumer blockchain product passport is important, there is an anti authentication boost of transparency, which is of course related to sustainability and that this is required from consumer and also of course, from the brands which are requiring scope tree transparency and sustainability. Try trust at the same time, product passport now with the with the with the COVID. One more with the worry is becoming less actionable. And sculpture is becoming more demanding, especially from fashion back then the other Copenhagen fashion agenda that is requiring more transparency, which unfortunately is not, which was lately, concrete action. So I think we are lagging behind a little bit between the comparing sorry, with the timeframe that the fashion bank was given to the fashion system overall, cyber resilience is a little bit less sexy trend. And the cyber resilience is actually on the CFO and the chief risk officer agenda. Now, I don't know if you've seen that, more than 35% of the listed companies, all fashion companies all over the world all over the world, in the last eight months, add at least one cyber attack, which implied the shutdown of commerce shut down the Wi Fi in stores, shut down the iPad for the storage system, and so on and so forth. I know it's definitely less sexy topic. But of course, the cybercrime is going to backwards regulation and also GDPR in Data Management, which at the end of the day is our the data of the consumer, which can from the consumer and customer base of the company. So, of course, this is going to impact sales, but also leakage in privacy information. Grant raishin nation or talent crunch is the last of the most impactful trend in the fashion. We in the past, we were talking a lot about attracting, developing and retaining talent. Today we're talking about purpose and talking about purpose require fashion system to really explain the consumer but also being the employees, which are the first consumer have the branded set per se, why they are doing something why they are what is the responsibility and the X they're doing versus the society and also men is important, especially related to the Agile way of working that the employees are required more and more to the fashion brands. This is going to become very important. I remember a very cool conversation last year, one year and a half ago with luxury brands. And I will say look, we've seen especially us that we have a lot of problem in retaining talent because on top of the attraction part because us people are about valuing some give you more attention to some of the values then you are not that you were not seeing in the past now like the flexibility like the purpose like the camaraderie like the sense of belonging, right. And nowadays, and basically they term that luxury brand, which a dispatcher or business partner with Express of that brand. Were telling me you know, Andrea, we are not kidding about this because the power and influence of our election events is so strong that I could afford any challenge in the world. I could pay how much money I want and I could ever throw now. I met him a few weeks ago. anywhere, Sandra, you are right, because we are not capable anymore to attract this kind of talent. And we are even if we are paying them, they are valuing other dimensions so much more than before. Right? So of course, this is putting tension on the overall business model. But let me, let me stop here and understand if there's any passion from your side, or if you want to deep dive more in some of these dimensions that we believe are going to share the 2020 the fashion system.

Any questions even from the third year you're having?

You actually would like to ask a question if it's possible. And it's regarding exactly the current industry trends that are booming within the fashion industry. And since I'm doing a product, business plan for my honours project that is in line with the latest trends in the fashion industry. I was going to ask if in European considering the topic of the metaverse and the latest trends of digitalization, and digitalization that, as you know, are currently booming within the fashion industry. If you think in your opinion, do you think that consumers would like an application in which the shopping experience of the customers would be a mix between real life and the digital world? And what do you think this? Let's say a new topic, a new panorama of the metaverse will evolve in the future, shaping the retail industry and how we are going to purchase our products.

It's an interesting question. I think immediate versus, of course, is is a critical point. And I think we rallied point out here in this in this chart. I love some of the answers that I've seen in the in the last month, which we don't know, we didn't know, this is what's one of the most answered question from from the CEO. So I give you my perspective. So my perspective is that number one of the adoption is now very linked to the AR, and especially stores, but especially from an experiential perspective. So the AR, and the Oculus that has been developed in the last and the most recent year, is currently the only real application that could create Traffic Conversion and digital adoption and the sales at the same time. There is no other at the moment, which will link the omni channel interaction, right. So if you see also the fourth from Mita exotica group, right? The only things they are doing and developing together are the glasses, right? Unfortunately, these glasses have limited storage. And at the end, they have limits in connectability. So they are only connecting you for eight to four months to eight to 12 minutes according to the application that you're opening at the same time or the band that you require for connection. So which of course, is limiting the power of the application. Also, the conversion is that if you're using them in stores, and a lot of retailers, both from fashion and furniture are really advanced in this, they could ask you, for example, to take a picture of your house, in case you're choosing your new upholstery or your new sofa. And then if you bring them into the furniture shop, they could load to the VR or to the Oculus and basically could choose the sofa to bury prefer for him from your house, you with the actual link in the eyes with the touch that is going to provide Of course, nada on how this could fit to the to your house in terms of design, but at the same time, also the comfort that you're going to test of course with your body filling and so on from the rest of the dynamic that I'm seeing the market, I think what we're doing is a little bit of testing trial, because sandbox in particular or the creation of licences and concession or on Farfetch or on some other application is still very early stage and that the application you could do is Oreo try to translate into nfts for the better a storable licence to make money or to actually create a profit out of it. Why otherwise you can create a digital wardrobe in, in the web trade. Now in the metaverse the ladder, it's definitely less adopt. And there's no anticipation except for Versace, Gucci and a little bit return which made some capsule. The first one, the former is actually much more distributor and you see from the NFT emission from Gucci, for example, Obi Wan saga that does create a lot of bots. But we are really under stage and creation. And the mission of this is very volatile. And it's very linked to the defy or to the blockchain creation, which, of course, is under turbulence, I think, know better than I do. What's happening for you study Lunada, and so on. So that's basically the situation. But I think what we are less advanced for in is the web three part, which is definitely unexplored, it's more something that is not is an equation that is not be sold.

Also, because considering the fact that I'm doing the trying to develop this type of new, let's say, a new brand, the problems that comes when trying to operate on the web three and on the metaverse are also regarding sustainability, because like the consume of energy required for mining and mining this kind of products is is a lot as you know. And so I was wondering if in the future, because we are all waiting for Aetherium 2.0 that maybe will allow us to work within the web three and the metaverse in a sustainable way using renewable energy. But right now for the like for Fiji vitality, let's say if you consume a product that will real life and also life within the digital environment, making it sustainable in real life. It's doable, but mining it in the in the metaverse would be

very energy consumptions for many out there.

And so I'm wondering how the soul like the soul system will be embedded within supply chains in the future, also, because if we can't about fast fashion companies and like companies that are used to mass produce and all these kinds of things, I don't think that will be a very easy shift to make in order to make a sustainable jump, let's say. So yeah, I wanted your opinion regarding this. And also regarding the fact that we are we are forced to to find sustainable solutions, because for the Sustainable Development Goals agenda, we will be soon required to make a shift that is not an openable, let's say but it's a must for the industry. No,

I totally agree with you. But I have my personal opinion on this that, unfortunately, actually, luckily for them. The trade off between mass production that you were mentioning, and eth, version one is definitely net positive, which means that better way to go on Aetherium right now than to wait for the toilet zero because from an environmental perspective is less polluting and is preventing that or is actually accelerating the sustainability adoption, right. So if I were them, I will not be constrained on the sustainability part more on the actual track track consumer in fast fashion the way they did with the mass market business model. Real fast lane reactivity supply chain reinvention copy base of some Luxury Collection at the very affordable price. This would be I think, a strong concern for them. And this is a point of no return also, because if they lose the trip, if they lose the traction if they convert the 20% of consumer, from the physical to the digital, the digital I mean, the web 2.0 for them could be a great loss even if it could be an advantage advantage from sustainability perspective and point of view. So this is basically the trade off and the strong point. They are the debate, the debate that are discussing at the moment.

Thank you very much. That was so interesting, and so big project. So I don't know if any others or other questions regarding the topic that I was discussing with you right now.

Yes. I'm very I'm fleetness meteo. Yes. Actually have also question regarding, not the metaverse but NF T's. And I was wondering if you like do you think NF T's in fashion could help brands build a community or forming more brand loyalty around them? And if so, in what ways

Yeah, no great question. I don't think he's going to create loyalty, but he's going to track consumer and that they were not interested in the fashion system before, or they were not fashion savvy before, like before? So for this definitely yes. The real question is, could they trade up America, they convert the physical with the digital spending. That's the real point. But loyalty wise, the creation of a ecosystem and compass, going and designing a collection, at the same time designing an NFT, because you are a lifestyle company and being a lifestyle company means that you have to be present in a bulk domain to really attract consumer, especially in that specific age.

Yeah, no, I agree. Yeah. Because also for my project, it's basically around the brand that works in fit in the phygital. area. So they will have a physical and the NFT version of the product of that product. And now I agree, it's, it's very interesting how brands are trying to implement and using the, to try to convert these customers.

The real point is that for now, they're using an FTS tracker consumer, which basically means they're using these as levers to sell more clothes. Yeah. If this is going to become a revenue stream, per se, we don't know yet. Because if you see the open See, market variation on selected the best seller and if this is decreasing over time, and of course, there is a exogenous market drivers, which is affecting them, but at the same time means also before the word that the consumer, we're not appreciating over time, the fact that the NFT is worse cars, and one of a kind product for this brand, you know, and they want exclusivity, like they were buying the new dress, or they were buying the new leather goods, specific bags, right. So I think this is something they didn't crack at the moment. So they also stopped basically the sign that amazing, thank

you very much. Thank you very much for your insight.

I don't know sir. If there's any other question.

I can't see any other question in the chat. I was checking the chat. I have also another one where I can check but I didn't receive anything. So the reps have more power because they have the WhatsApp group that I don't have. So I don't know if the student reps they receive the messages on your whatsapp groups that I don't belong to obviously

questions about the other student trips but if possible, I can ask another question that it was curious about. So as we were talking about how the possible shift will happen of sustainability within the market that can be fought during the mass production the fast fashion companies I wanted to ask in your opinion how these companies in general we will make sustainable materials affordable. And I must go for companies risk replacing destructive fabrics inside their supply chain. So from what they say is making let's say the circular closed loop supply chain as definiton like pillar base at the base of the supply chain. So for everyone, and not only like of certain brands

you will excuse me, as you know in Italian when we ask another question after you receive a question, is that example like so? I'll ask you a question. Yeah. Are you meaning for fast fashion or luxury? What you're saying

actually would be would be beneficial thing for everyone since we are doing projects that are different projects that some are based on luxuries, fashions, others are based on nice written fast fashion, I think. So.

I tell you the difference. So unfortunately, luxuries hasn't solve this dilemma. So balancing the purpose with profit for them is has not been easy and is now easy because the circular loop given the quality of the raw material. And given the technology advancement so far of the of the machinery. It doesn't allow them to take five to 10 to $15 leather bags. and reuse the ladder into another another product the same is forgotten. If you take a 300 350 T shirt and a percent cotton pad is impossible to recycle, like h&m does with renewal in in the Nordics right? Because when h&m recycle the eight euro t shirt the technology renew so allows h&m to have the same T shirt, but with the 85 to 92% of the same quality as before for the for the laxer instead that specific neck technology drops quality of the cotton pulp to 64 E also sometimes percent because the fibre is so thin and the fibre is a different specification that are not made from that machinery so that the reason why I was asking that one is a little bit provocative because unfortunately for mass market and low price the scheme works now and works for cotton worse for wool. Worse For denim works also for leather for until some extent but for Laxmi, unfortunately doesn't that's why if you look at LVMH if you look at that mess, they are not doing circular loop, they are not adopting circle loop business model. They are investing in solving a netzero equation but providing other let's say sort of plugging the gap without a sources of greenhouse emission to get to the net zero right? At a mason conversely is doing a little bit of upcycling now together with some of the brands of the caring group and also with Barbary. But again, this is just more scale now because if you go to our mes website and you search for potash, these are products which are going beyond the fashion which is something admirable but these are very tiny collection that cannot afford the leftover and venturi, let's say recycling or upcycling. No, entirely. So these very fragmented and I think fast fashion is definitely more advanced, even if even if it's more cause of the problem. While luxury and affordable accessory doesn't ever wrote yet no one or it rejects a clear trajectory to overcome this problem.

# data[].attributes.body
interaction through social media, where consumers could interact with them, making e-commerce about the people, community first, created an ocean of interaction, this will help the purchasing decisions for consumers. This is the most important part for us.

Creating a network, with influencers, 2015 is where genz comes to age and you see them buy things online, so it became a home for an audience, who wanted to buy things online and try something else, build a platform for a place they can make it their own on this digital world, where young users are very natural to promoting themselves, finding economic opportunities.

be aware of what consumer’s needs, change of values and needs, such as sustainability and its impact and drive in fashion, a few years ago it was not as important, it was not a part of the discussion back then, its becoming a part of who we are.

this is very important for the audience, to help drive decision making and help shape the business,

stay close to the community was a very important part for the business

Key strategy for marketing for second hand?

very hard to answer, we have a unique opportunity to make second hand, especially when we have such a nice community, there is real value in the clothing, that might no longer be aware, we are on a journey, the beginning is to realize is to have an audience of sustainability consumsion, however price will be the most important drive for consumers, sadly enough, we cannot win on price, and convince, when consumers are more addicted, especially after the pandemic, where you can get it delivered on your door the same day or next day

you feel better when you shop from depop because sustainability, but it should be more of a experience,

promote the value of circulation, we need to build the value of that in consumers mind, its important to realize that good intention will not make us sell, so we need to look at other factors

marketing practices have change and why, is it true that brands Charing the value is key?

media landscape has changed in a massive way, try to bring people to the real world, create a relationship, brands need to think about interacting with people, partner up with different brands, try to show viability and visibility. expanding the market. we are all about bringing together people. Covid made us look at marketing different, meaning the inspiration was solid from the screen, so social media became key, working with influencers, videos, engaged to reach different audiences through social media.

we see celebrities wanting to join into express sustainability, where they want to wear depop. marketing mix is important

cultural experience is important, be more transparence å

research engagement, looking at data, emerging trends, like tiktok, what is happening on the digital world