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DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
February1,2017
Deborah Weinswig
Managing Director,
Fung Global Retail & Technology
US: 917.655.6790
HK: 852.6119.1779
CN: 86.186.1420.3016
1) Impactedbyrisingdigitization,thefashionindustryiscurrentlyinastateofrapidtransformation.High-endfashionbrandsareevolvingtowardsasee-now-buy-nowbusinessmodel,whichconsistsofrunwaystylesbeingavailableforpurchaseimmediatelyafterfashionshowsinsteadofthecustomarysix-monthwait.
2) Thechangingfashionindustryretailschedulehasfar-reachingimplicationsfordesign,marketingandsupplychains.Thissee-now-buy-nowdevelopmentpresentsadditionalchallengesandincreaseslogisticalcomplexity,asrealigningordersanddeliveryscheduleswithsuppliersisrequired.
3) Majorbrandsanddesignersthathaveintroducedcapsulecollectionsandturnedtheirrunwayshowsintosee-now-buy-nowformatsincludeRebeccaMinkoff,Burberry,TommyHilfiger,RalphLauren,CoachandMichaelKors,amongstothers.Todate,themajorityofdesignersthathaveadoptedinstantrunwayfashionmodelsfocusonpremiumandaspirationalpricepointsratherthanhigh-endluxuryproduct.
From Runway to Checkout:
The See-Now-Buy-Now Trend
in Fashion
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DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
February1,2017
IntroductionInthisreport,wediscussthetrendforinstantfashion,whichconsistsofbuyingstraightfromtherunway,ratherthanthecustomarysix-monthwaitingperiod.Weanalyzethefactorsthathaveemergedtoshapethissee-now-buy-nowtrend,aswellasensuingimplicationsfordesignersandretailers.Wetouchonthedebatebetweensupportersanddetractors,andintroducedesignersandbrandsthathaveembracedinstantfashiontodate.Finally,weshedlightonthefashionindustryandhowthesee-now-buy-nowmovementislikelytoevolveinthefuture.
See-Now-Buy-NowRevolutionImpactedbyrisingdigitalization,thefashionindustryiscurrentlyinastateofrapidtransformation.Growthinecommerceandsocial-mediashoppingisforcinghigh-endfashionbrandstowardaconsumer-facing,see-now-buy-nowbusinessmodel,whichconsistsofrunwaystylesbeingavailableforpurchaseimmediatelyafterfashionshowsinsteadofthecustomarysix-monthwait.
TheSpring/Summer2017fashionshowseason,whichtookplaceinSeptember2016,wasthefirstseasontoembracethesee-now-buy-nowmovement.Burberrywasthefirstmajorbrandtoannounceasee-now-buy-nowrunwayfashionshowwithproductssolddirectlytoconsumersafterthecatwalkshow.
Theinstant-fashionmodelcanbeconsideredlargelyapositivedevelopmentforconsumers.Thechangestakingplaceareenablingthefashionindustrytobecomemoredemocratic,inclusiveandaccessible,astheboundariesbetweentraditionalfashionbuyersandeverydayretailbuyersareeroding.
However,todate,mostsee-now-buy-nowfashionshowstookplaceduringNewYorkFashionWeekandincludedUSdesignersandaccessible-luxuryprice-pointbrands.Furthermore,mostofthesee-now-buy-nowproductwasconfinedtocapsulecollectionsandnotcompletecollections.Someinstant-fashionshowswerealsostagedduringLondonFashionWeekinSeptember2016,anditseemstheinstant-fashiontrendiscurrentlymoreprevalentintheUSandUKthaninItalyorFrance—atleastfornow.
TraditionalFashionIndustryModelThecurrentfashionindustrymodelfollowsatraditionalseasonalfashionretailcalendarthatconsistsofdesignerbrandsandluxuryhousespresentingtwoseasonalcollectionsperyear,whichareunveiledattwofashionweeksperyearinthecorecitiesofParis,London,MilanandNewYork.TheSpring/SummerseasonispresentedinSeptemberandFall/WinterispresentedinFebruary.Aselectgroupoffashionjournalists,department-storebuyers,celebritiesandindustryinsidersarepresentattherunwayshows,andcollectionitemsdonotappearforsaleinstoresuntilthefollowingseason,sixmonthslater.
Forexample,besidesafewsee-now-buy-nowfashionshowsheldinSeptember2016,mostdesignerswereshowingSpring/Summer2017collectionsthatwillbeavailableforsaleinthespringmonthsof2017.
Traditionalfashioncapitalscustomarilyhadamonopolyonfashionweeksandwerehighlyinsulatedandexclusive.Department-storebuyerswouldseecollectionsontherunwayandthenorderdesiredstylesfortheirstore
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DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
February1,2017
network.Thiswouldallowbrandstotestdemandfortheirdesignswithretailersbeforecommittingtobigproductionvolumes.Historically,lower-pricedretailersandhigh-streetchainswouldalsocopyluxurybrandcatwalkstylesfromtherunway.
Thefashionindustry,especiallytheluxurygoodsindustry,wastypicallyslowtoembraceecommerceandsocialmedia.Somefashionhouses,suchasItaly’sSalvatoreFerragamo,areonlynowofferingready-to-wearrangesforpurchaseonline.Previously,Ferragamoofferedonlyaccessoriesandfootwearthroughitsecommercewebsite.NewYorkandLondonfashionweeksareconsideredmoreinnovativeandcommercialthanthoseinParisandMilan.
CatalystsforChangeTraditionalfashioncyclesnolongerreflectconsumers’demandsforimmediategratification,andindustrychangesfollowgrowingconsumerdesiretopurchasecollectionpiecesstraightfromtherunwayinsteadofwaitingforsixmonths.Consumersloseinterestthemoretimepassesbetweenproductviewinganddelivery.Nowadays,consumerscanorderandreceivemeals,movies,transportationandvariousservicesattheclickofabutton,andareincreasinglyexpectinginstantconsumptionfromfashion.
Digitizationandsocialmediahaveinfluencedretaileradvertising,andconsumersperuseFacebook,Instagram,SnapchatandTwitter,aswellasvariousappstomakeinstantproductpurchasedecisions.
Globalizationiscontributingtotheirrelevanceofseasons,asproductsareavailableglobally,includingthroughecommerce.Manufacturingefficienciesanddigitizationtechnologieshaveallowedcompaniestosupplycustomerswithproductmorerapidly.MultinationalcompaniescatertostoresintheNorthernandSouthernhemispheres,andtotravelers,whichhavesimultaneouslydifferingneeds.
Weatherpatternshavebecomevolatileandunpredictable,andseasonalcollectionsarebecominglessandlessrelevant.AccordingtoaVerdictRetailsurveyconductedintheUKinJune2016,85.6%ofapparelconsumers
Source:nyfw
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DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
February1,2017
preferpurchasingclothestowearforthecurrentweather,and51.4%statedthattheydonotlikepurchasingapparelbeforethenextseason.
Fast-fashionretailercyclesareinfluencingthehigher-endfashionmarket.Manyfast-fashionretailersintroducenewproducteverycoupleofweeks,andconsumershavecometoexpectsimilarproductnewnessfrommostretailersandserviceproviders,evenluxurygoods.Furthermore,department-storebuyersarelosingpowerandinfluenceinthefashionindustry,asdepartmentstoreshavebeenpostinglowersalesgrowththanmonobrandstoresandecommerceplatforms.
ImplicationsforDesignersThechangingfashionindustryretailschedulehasfar-reachingimplicationsfordesign,marketingandsupplychains.Thesee-now-buy-nowdevelopmentpresentsadditionalchallengesandincreaseslogisticalcomplexity,asrealigningordersanddeliveryscheduleswithsuppliersisrequired.Instantfashionnecessitatestighterproductionschedules,evenforluxurybrandsthatproducesmallerbatchesofproducts.Movingproductionanddeliverydatesiseasierforfast-fashionretailers,especiallyasthesedonothavetodealwiththewholesalechannelandbuyers,asmanydesignerbrandsdo.
See-now-buy-nowisalsoriskyfordesignerbrandsinthesensethatdesignersareunsureofcollectionproductdemandandruntheriskofunder-orover-producingpieces.Withtheinstant-fashionmodel,designhouseswillnothavetheopportunityandtimetoascertainwholesaleandretailbuyerdemandfortheirproducts,asmerchandisewillhavetobereadyforsaleimmediatelyafterthefashionshowthatintroducestheirnewcollections.Fashionhouseshavetoplantherightinventorymixandvolumestoavoidunsoldgoodsendingupindiscountstores,whicherodesbrandimage.
Aspreviouslymentioned,somedesignersarecreatingsmallercapsulecollectionstoaidwiththelogisticaldifficulties.
CriticismsTheinstant-fashionphenomenonisnotwithoutcritics.Creativebrandsthatfocusoncraftsmanshipanddetailneedadequatetimefordesignandproduction.
Somefashionpunditsbelievethatthesee-now-buy-nowmovementmayleadtodesignerburnout,ascreatingin-seasoncapsulecollectionsinadditiontotraditionalseasonalcollectionsonlyincreasesthedemandsonthedesigner.Theendresultcouldbeareductionincreativityandbranddilution.
Furthermore,manyemergingbrandsdonothavethefinancialmeanstomanufactureseasonalcollectionsunlesscustomerdemandiscertain.
Finally,atarecentWWDSummit,fashiondesignerDianevonFurstenbergexpressedherdislikeofthesee-now-buy-nowtrend,proclaimingit“vulgar.”
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DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
February1,2017
TheFuture?Itisverylikelythatthefashionindustrywillgenerallycontinuetoevolvetowardamorestraight-to-retailmodel.Morebrands,evensomehigher-endluxurybrands,willbecomemoreopentosellingsomecollectionitemstoconsumersdirectlyfollowingfashionshows.Moreandmorebrandswillpresentandsellclose-to-seasonorseason-lesscollections.Fashionhouseshavenochoicebuttoadapttotheconsumerdemandforinstantgratification.
Improvementsinshipping,transportationandpackage-handlingwillhelpbrandsdeliverinstantfashion.Retailerswillincreasinglymakeuseoftechnologicalinnovationssuchas3-Dvirtualfittingroomstofacilitatesizefitting,aswellasleveragesocialmediatoolssuchasFacebookMessenger’schatbottoservicecustomers.
However,see-now-buy-nowwilllikelynotbeagoodmodelforveryhigh-end,veryintricatedesignercollectionsthatrelyontime-consumingandmeticulouscraftsmanship.Forothers,wheretheproductiontimecouldbeshortened,themodellooksmoreadaptabletosee-now-buy-now.Thereisroomforbothmodels,anddifferentbrandsanddesignerswillhavevaryingstrategies.
Source:fxgear.net
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DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
February1,2017
DesignersAvarietyofbrandsanddesignerssuchasRebeccaMinkoff,TommyHilfiger,RalphLauren,Coach,MichaelKorsandTomFordhaveintroducedcapsulecollections,andturnedtheirNewYorkFashionWeekrunwayshowsintosee-now-buy-nowformats.Todate,themajorityofdesignersthathaveadoptedinstantrunwayfashionmodels,focusonpremiumandaspirationalpricepointsratherthanhigh-endluxuryproduct.
AlexanderWangUSdesignerAlexanderWangfollowedthetraditionalfashionmodelforhisSpring/Summer2017collection,butunveiledanewcapsulecollectionincollaborationwithAdidasOriginals,whichimmediatelywentonsaleonlineandthroughaNewYorkpop-uptrucktourthefollowingday.
Emergingandlesser-knownhigh-endandaspirationalluxurydesignersthatjumpedontheinstant-fashionbandwagonduringNewYorkFashionWeekincludedTanyaTaylor,Thakoon,OpeningCeremonyandAlice+Olivia,amongstothers.
BurberryUKluxurybrandBurberrypioneeredthesee-now-buy-nowmovementwhenthecompanyannounced,inFebruary2016,thatfollowingitsSeptemberLondonFashionWeekrunwayshow,consumerscouldpurchasecollectionitemsonlineandinstores.Thecollectionincluded250men’sandwomen’spiecesandsomeitemssoldoutonlineshortlyafterthecatwalkshow.Burberryalsolabelsproductbymonthsratherthanseasons.
Burberryhaslongbeenconsideredadigitalleaderinthefashionindustry.Thebrandwasamongthefirsttolive-streamrunwayshowsandtosignpartnershipswithsocialmediaplatforms.
CoachUSaspirationalluxurybrandCoachmadethelimitededitionofitsbagcollectionavailableforsaleadayfollowingitsfashionshow.
MaybellineMaybelline,themass-marketUSbeautyandcosmeticscompany,hasalsojumpedontheinstant-fashionbandwagon.ThecompanylaunchedtwoeyecolorproductsonmodelsatRebeccaMinkoff’sSeptemberrunwayshow.TheproductswentonsaleimmediatelyaftertheshowviaanexclusivepartnershipwithAmazon.
MichaelKorsAfewhoursfollowingMichaelKors’fashionshow,certainFall2016itemsweremadeavailableforsaleinlimitedquantitiesonlineandinUSstores.Thedesignercommentedthathethoughtconsumerdemandforsee-now-buy-nowproductwouldfocusmainlyonaccessories,butthereadytowearpiecesavailablewerealsowellreceived.Inresponse,thebranddecidedtoextendthesee-now-buy-nowready-to-wearofferavailableinSpring2017.
MoschinoItalianfashionhouseMoschinocreatedacapsulecollectionthatwasshownalongsideitsSpring/Summer2017runwayshowthattookplaceinSeptember2016,whichappearedinthedesignhouse’sstoresoneday
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DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
February1,2017
followingthefashionshow.Moschinowastheonlydesignhousethatembracedsee-now-buy-nowduringMilanFashionWeek.
OliverSpencerUKmensweardesignerOliverSpencerallowedcustomerstoorderitemsusinganappfollowinghisLondonFashionWeekAutumn/Winter2016show.Productscouldbedelivered48hourslater.
RalphLaurenUSdesignerRalphLauren’sfashionshowinSeptemberwasheldonthestreetoutsideofRalphLauren’sboutique,andshowattendeeswereinvitedtoshopthelooksinthestorerightaftertheshow.Theshowwasalsolive-streamedonsocialmediaplatformssuchasFacebookandChineseandSouthKoreanmessagingservices.OnFacebook,consumersweredirectedtoRalphLauren’swebsitetomakepurchases.Thedesignerisalsoworkingonasee-now-buy-nowmenswearshow.InFebruary2017,RalphLaurenplanstostageaspring2017runwayshow,asthecompanywillhavecaughtuptoitsnewsee-now-buy-nowschedule.
RebeccaMinkoffInSeptember2016,USdesignerRebeccaMinkoffhostedasee-now-buy-nowfashionshowatherNewYorkboutique,withshoppingallowedimmediatelyafterwardandconsumerscouldvirtuallytryonstylesthroughanapp.Thecompany’swebsiteadvertisedthelive-streamingofthefashionshowinthedaysleadinguptotheeventandanhourafterthestartofthefashionshowabuyfunctionbecameavailablewithalmostallrunwaypiecesinvarioussizesavailableforpurchase.TheRebeccaMinkoffwebsitealsoinvitedcustomerstoshopandpurchaserunwaylooksattheSoHoNewYorkstoreimmediatelyfollowingtherunwayshow.Storesalesthatdaydoubledyearoveryearande-commercesalesincreased50%yearoveryear.
TomFordUSdesignerTomForddidnotpresentaFall2016collectionatFashionWeekinFebruary2016,inordertofocusonashoppablecollectioninSeptember2016.TomFord’sSeptemberFallsee-now-buy-nowcollectionapparentlyresultedinadditionalsalesinthebrand’sbeauty,fragranceandaccessorycategories.
TommyHilfigerTommyHilfiger,ownedbyPVH,streameditsfashionshowliveonitswebsite,andcustomerscouldpurchasetheTommyHilfigerGigiHadidcollaborationcapsulecollectionstraightofftherunwayforthefirsttimeinthecompany’shistory.EverysingleitemshownontherunwaywasinstantlyavailableforpurchaseonTommy.com,at300TommyHilfigerstoresgloballyandat150wholesalepartnerswithin24hours.ViewersofthelivestreamedTommyHilfigershowcouldpurchasepiecesthroughthebrand'sFacebookpagethrougha"ShopNow"button,andsomeitemsweresoldoutovernight.Pop-upshopswerealsosetupneartherunwayinManhattan.Thecapsulecollectiongavethecompanyanextraseasontomoveitsmanufacturerstothenewretailschedulewithoutmissingarunwayshowseason.InFebruary2017,TommyHilfigerwilldebuthisfullSpring/Summer2017collectioninlinewiththenewinstantretailcalendar.
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DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
February1,2017
TopshopMass-marketapparelretailerTopshopalsohostedaSpring/Summer2017UniqueCollectionrunwayshowduringLondonFashionWeek,andconsumerscouldpurchaseitemsrightaftertheshow.TopshopUniquehostedapop-upmarketstall,whichwasopenimmediatelyafterthecatwalkshow.Topshopisararehigh-streetretailerthatpresentsatLondonFashionWeek.
KeyTakeawaysImpactedbyrisingdigitization,thefashionindustryiscurrentlyinastateofrapidtransformation.High-endfashionbrandsareevolvingtowardsasee-now-buy-nowbusinessmodel,whichconsistsofrunwaystylesbeingavailableforpurchaseimmediatelyafterfashionshowsinsteadofthecustomarysix-monthwait.
Thechangingfashionindustryretailschedulehasfar-reachingimplicationsfordesign,marketingandsupplychains.Thesee-now-buy-nowdevelopmentpresentsadditionalchallengesandincreaseslogisticalcomplexity,asrealigningordersanddeliveryscheduleswithsuppliersisrequired.
Majorbrandsanddesignersthathaveintroducedcapsulecollectionsandturnedtheirrunwayshowsintosee-now-buy-nowformatsincludeBurberry,TommyHilfiger,RalphLauren,CoachandMichaelKors,amongstothers.
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DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
February1,2017
DeborahWeinswig,CPAManagingDirectorFungGlobalRetail&TechnologyNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@fung1937.comJohnMercerSeniorAnalyst
EvaK.SeniorResearchAssociate
HongKong:8thFloor,LiFungTower888CheungShaWanRoad,KowloonHongKongTel:85223004406London:242-246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988NewYork:1359Broadway,9thFloorNewYork,NY10018Tel:6468397017
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