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.
THE GRADUAL RETURN OF PHYSICAL FASHION SHOWS
Coronavirus restrictions are easing in France, but men’s fashion week will still be a largely digital affair this season in Paris. Hermès and Dior are among the few brands planning to stage physical shows with guests.
Those will test the water for couture week in July when more houses — including Chanel and Balenciaga — are scheduled to stage physical shows, and when more international guests are expected to make the trip in to see the collections. A number of firsts may give guests another reason to show up. Balenciaga’s show marks Demna Gvasalia’s couture debut. And Alaïa’s first runway show since Azzedine Alaïa’s death in 2017 is also on the schedule for July, marking the debut of creative director Pieter Mulier.
But there are also signs the recent fashion week fragmentation may be more permanent. There are still plenty of brands sticking to digital formats or eschewing organised fashion weeks altogether, including Saint Laurent and Gucci.
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The Bottom Line: As fashion’s capitals look beyond the pandemic, the industry will be watching to see if, and how, fashion weeks return to a successful physical format.
WHAT’S NEXT FOR NIKE?
Nike is a pandemic winner. The company’s stock soared to record highs over the last year as investments in e-commerce and direct retail paid off faster than originally anticipated. Analysts expect Nike to report year-on-year revenue growth of more than 15 percent when it publishes earnings for the 12 months to the end of May this week.
But investors are also looking for information on the brand’s strategy beyond 2020 under chief executive John Donahoe. Nike missed analysts expectations in the quarter ending February 28, citing shipment delays due to the pandemic. It’s undergone a reorganisation that’s seen several executive departures amid wider reports of cultural issues. And in recent months, Nike has faced other difficult headlines from a more consumer-facing perspective. The company drew backlash in China after disavowing the alleged use of forced labour in the country’s Xinjiang region, and gymnast champion and former ambassador Simone Biles defected for Gap Inc’s Athleta, citing better alignment on values.
The Bottom Line: Most analysts don’t believe these hiccups will cause real problems for the company, but the upcoming results should provide insights on how Nike plans to navigate the end of the pandemic.
AMAZON PRIME DAY
Amazon’s annual discount bonanza is back for the summer. Prime Day launched in 2015 to encourage shoppers to sign up for Amazon membership but is now marked by hundreds of competitors, too. Revenue from the sale in 2020 exceeded that of several other shopping holidays, including Black Friday and Thanksgiving, according to the Adobe Digital Economy Index.
Last year, Prime Day was moved to October because of the pandemic, but it’s back to its normal schedule this year, in time to boost Amazon’s second-quarter sales. Sales jumped 40 percent during the same period in 2020 as online shopping surged in the first months of lockdowns in the US. There are unconfirmed rumours Amazon will host another Prime Day in the autumn that could set a powerful precedent for retail discounting. (A spokesperson for Amazon did not respond to request for comment.)
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Amazon is expected to use this Prime Day opportunity to push fashion and cosmetics, categories it already dominates in the US. While the depth of those promotions is typically deeper in other categories like electronics, Prime members will be able to buy Lady Gaga’s Haus Labs beauty brand at 60 percent off and Calvin Klein items at 20 percent off, among many other deals across categories. They’ll also be able to try Amazon’s curated “Personal Shopper” box of apparel for free.
The Bottom Line: Amazon is already a formidable competitor and the more members it attracts, the harder it becomes for department stores, boutiques and brands that are trying to control their distribution and pricing online.
The Week Ahead wants to hear from you! Send tips, suggestions, complaints and compliments to brian.baskin@businessoffashion.com.
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