The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Missing in Action
Milan Fashion Week is back to its pre-pandemic form, with two key exceptions: Bottega Veneta and Gucci remain off the schedule. Early in the pandemic, most of Kering’s fashion brands announced they were leaving the calendar behind to show when and where they wanted. But Saint Laurent and Balenciaga will be back in Paris later this month, while Kering’s two buzziest Italian brands, Gucci and Bottega Veneta, are sticking to their guns. Milan has plenty of other draws, including Prada’s first in-person show with Raf Simons on board. After a debut show that deferred to Fendi’s heritage, Kim Jones may put more of his own spin on the brand. And Armani’s 40th anniversary comes as the designer has rebuffed acquisition offers.
The Bottom Line: The shows in New York and London offered an intriguing and often retail-ready glimpse at post-pandemic dressing. Of the designers showing this week, Miuccia Prada in particular has had plenty to say about the role fashion has played during the pandemic.
No Shirt, No Shoes, No Sales
Nike’s strategy to sell most of its sneakers through its own ecosystem of websites and apps is playing out exactly as planned, with one small hitch: the company is struggling to source enough shoes to sell. According to Cowen, Nike manufactures 51 percent of its footwear in Vietnam, which went into lockdown in August. Factories have remained closed longer than initially expected, and brands ranging from On Running to Adidas are facing leaner inventory heading into the holiday season, analysts say. Cowen predicts the supply chain crisis could lower Nike’s sales this year by $1.3 billion. There’s an upside: fewer shoes means fewer leftover products at the end of the season, which means fewer promotions and fatter margins. Nike, which has pivoted much of its sales to its own channels, is in a better position than some rivals to control inventory and pricing as a result.
The Bottom Line: Supply chain issues aside, Nike is way out in front of the pack. But On Running’s impressive IPO — and the steady drip of elite athletes leaving Nike for other brands — is a sign the competition may be getting a second wind.
Third Time’s the Charm
Rihanna and her friends are back. This Friday, some of the world’s biggest musicians, models, drag queens and TikTok stars will appear in Savage X Fenty’s third special, once again streaming on Amazon. The brand has used its annual shows to draw a contrast with Victoria’s Secret, which stubbornly stuck to a vision of sexuality that was long past its sell-by date. The strategy has worked: Savage X Fenty now has a $1 billion valuation and ambitious plans to expand into retail. But that initial window of opportunity may be closing. Victoria’s Secret, now an independent company free of its old executives and much of its old baggage, is all-in on inclusivity, including a diverse roster of A-list brand ambassadors. The reigning giant’s turnaround ups the ante for Savage X Fenty, which will need to find new ways to maintain a hold on its customers now that even the most traditional lingerie brands are modernising their image, and a host of even newer labels are pushing the category’s boundaries further.
The Bottom Line: Savage X Fenty is no longer the new kid on the block, and it has $115 million in funding from L Catterton and other heavyweights to tackle Victoria’s Secret, Aerie and other large competitors head-on.
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While the campaign doesn’t yet feature products designed by Lee, the release signals Burberry is getting a complete creative overhaul under the stewardship of Yorkshire-born designer and new CEO Jonathan Akeroyd.
The outerwear giant’s London Fashion Week outing will also showcase new collaborations with Adidas, Alicia Keys and Pharrell Williams in a bid to broaden the initiative’s reach.
New York’s schedule is short on surprises as brands play it safe in an uncertain economy. Plus, what else to watch for this week.
This week, Ssense said it laid off 138 workers, and MatchesFashion received a $73 million cash injection from its shareholder. From more niche players to giants like Farfetch, the pressure remains high for luxury e-tailers.