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 CHEAT SHEET
Does Victoria's Secret's Owner Have a Plan B?
Bath & Body Works | Source: Shutterstock
Early Returns From America's Reopening
Inside a mall in Atlanta, Georgia | Source: Shutterstock
Health concerns are surely keeping some shoppers at home. But the pandemic is changing retail in other ways that could reduce brick-and-mortar foot traffic for the long term. Many consumers have undoubtedly gotten used to shopping online. And a Piper Jaffray analyst compared visiting a newly reopened luxury department store in Houston as "jarring" and "more akin to shopping in a warehouse."
The Bottom Line: Scenes of crowded stores and lines snaking through malls also mask the turmoil happening behind the scenes, including rent disputes, major mall tenants in financial peril and the prospect that tens of thousands of stores may never reopen.
China's Halting Recovery
Cai Xukun Stars in Prada 520 Campaign | Source: Courtesy
China's retail rebound has been uncomfortably slow. There's even talk of a "W" shaped recovery, where the economic momentum sparked by stores and factories reopening falters as consumers fail to turn up. The marketing around the May 20 holiday (the date sounds like "I love you" in Mandarin) reflects the uncertainty of the times. Prada, Louis Vuitton and others are rolling out their 520 campaigns, the first major marketing opportunity in months, since Covid-19 crushed spending around Chinese New Year and Valentine's Day. The campaigns mainly centre around relatively affordable items and more muted styles that sell well in a weak economy. And though some luxury brands can count on lines around the block outside their boutiques, they are putting new emphasis on digital marketing as well, including livestreams featuring top influencers.
The Bottom Line: Another trend emerging out of China is the bifurcated nature of recovery. Luxury brands appear confident of a quick rebound, while the rest of the fashion industry is bracing for a long, slow return.
SUNDAY READING
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BoF Careers provides essential sector insights for fashion professionals in retail this month, to help you decode fashion’s retail landscape.
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Small stores can remain competitive by scaling their private labels, testing new store concepts, and offering brands consumers can’t find on Farfetch or in Selfridges.
Investing in a VIP resale platform is another play from the e-commerce pioneer to win over luxury buyers and sellers.