Fashion and the cycle of change. FBR Brief #3
From virtual shows to live commerce, what China can teach the world.
Hello readers!
“Fashion is above all an art of change” - John Galliano
Stepping outside after three months of lockdown feels weird. Shopping for clothes while wearing plastic gloves and face masks kills all the vibe. At least for me. But this "downtime" didn't go in vain: I’ve learned a lot. We all did. The amount of live-streamings and Zoom conferences attended, courses taken and books read (I’ll list below some personal favourites).
We're just about halfway through 2020. The vicious cycle of fashion industry was interrupted. And the wind of change is now blowing from the East.
Resetting the Fashion Cycle: What is the future for fashion weeks?
“Who is the target audience: buyers, press or the end consumer? Is it a marketing event or is it a business for buyers? Of course, there is no clear answer – every designer or brand is different and prioritises business in different formats.”
The pandemic will bring lasting change to the way fashion weeks are presented. Fashion houses may choose a combination of digital and physical presentations, and the catwalk show as we know it may no longer be as big a marketing tool or status symbol. Fashion has the chance to opt for a more sustainable approach that retains the industry’s famous creativity.
The world’s first fully digital fashion week took place in Shanghai, when more than 150 designers and brands livestreamed their collections on Alibaba’s Tmall. The event had over 11 million views and generated over $2.82 million in gross merchandise volume. To drive the sales, Shanghai Fashion Week leveraged both influencer marketing and live commerce, which are booming in China.
The first of the four major fashion capitals to stage a digital fashion week was London, which had run a three-day event over the last weekend. Catwalk shows were replaced with films, playlists, podcasts and livestreamed panel discussions. As stated by WWD, London’s content was repetitive and mostly revolved around conversations, rather than new collections, this ending up in low engagement from viewers. Paris and Milan will host their digital fashion shows in July, so we will see how the future of fashion weeks unfolds.
Related reading: Who Will Win the Digital Fashion Week Battle?
Recommended reading:
BOOK #1 - Digital Luxury: Transforming Brands and Consumer Experiences by Wided Batat
Surviving the Fashion Retail Apocalypse
From smaller brands to large retail chains, the list of store closures and company bankruptcies caused by the pandemic keeps growing all over the world. More companies turn to digital channels: last week Italian department store Rinascente launched its e-commerce site.
In China, even before the pandemic, e-commerce landscape was thriving on social buying and live commerce. According to Jing Daily, Western department stores can navigate through post-COVID-19 crisis by following the China’s “New Retail” model:
developing digital capabilities
transitioning from offline to online
creating additional streams of income
retailtainment
Recommended reading:
BOOK #2 - New Retail Born in China Going Global: How Chinese Tech Giants are Changing Global Commerce by Ashley Galina Dudarenok and Michael Zakkour
Thanks for reading,
Assiya Assanbayeva
More news and articles on Fashion & Luxury industry on Linkedin
Tapping Russia’s Booming E-commerce Market
Luxury department store Tsum now offers a fast courier service (same day or next day) that allows customers to try on pieces before they pay for them, and then pay the courier just for the items they don’t return. This mimics the store experience of trying on in a fitting room with no financial ties and appeals to older consumers who don't like to buy things on credit. (Vogue Business)
Will Luxury Groups Persist With Brands That Lose Money After The Virus?
LVMH and other luxury groups are notoriously loath to sell their maisons and prefer to take a long-term view, hoping that a new creative director or management team, and some clever marketing, can turn things around. However, given the impact of the health crisis on the luxury industry these groups could end up smaller, holding fewer brands but ones that actually perform. (SCMP)
The ‘Black’ Economy: How Protests Will Influence Shopper Spending
Whilst economic boycotts have long been a peaceful way of protesting in the long-term (as seen with anti-Trump organizations), the reformed retail scene in Hong Kong is evidence of the impact protests have on the economy. Ever since, protests paired with selective consumerism had effectively pushed the city to the brink of a recession. (Forbes)
China’s New Technologies Are Making Retail More Sustainable
China has learned from past environmental tragedies and is currently stepping up its efforts to safeguard the environment. (Jing Daily)
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