ClickZ Luxury Fashion Newsletter - 09.26.2024

PLUS: Join TikTok, Seraphine and Sweaty Beatty for Fospha's BFCM live discussion on October 3

Author

Sophie Bruxner-Randall
September 26, 2024 • Estimated Reading Time: 6 minutes

Editor’s Pick 🌟

Peak season is the single best opportunity for D2C brands.

To help you capture it, Fospha has assembled a panel of industry experts. Join them for a live discussion featuring leaders at Sweaty Betty, Seraphine, and the Head of Measurement at TikTok.

📅 Date: Thursday, 3 October 2024

🕒 Time: 11 AM EST / 4 PM BST

P.S. You'll have the chance to ask the experts questions about peak season strategies in real-time!

Gain exclusive insight into:

  1. Proven tactics to maximize peak period opportunities, shared live by experts

  2. Strategies for capturing customers efficiently through a full-funnel approach

  3. Insights on growing your customer base profitably with effective measurement

  4. Methods for identifying and capitalizing on growth headroom for efficient scaling across channels

Specialty Bites 🍪

Carlo Capasa, president of the Italian Fashion Chamber, opens Milan Fashion Week with optimism, emphasizing that tough times spark creativity. Despite a market slowdown, he believes resilience is key and anticipates a rebound. Capasa aims to spotlight emerging talent, fostering innovation in the fashion industry.

Chanel has acquired 42 Avenue Montaigne in Paris, enhancing its prime real estate portfolio. This purchase follows other significant acquisitions in major cities. Owning such properties allows luxury brands to create unique shopping experiences. Chanel plans a major renovation for the boutique in 2029, continuing its strategic expansion.

Michael Kors testified in a federal court case where the FTC seeks to block Tapestry Inc.'s acquisition of Capri Holdings, arguing it would dominate the accessible luxury handbag market. Kors discussed his brand's history, competition, and pricing strategies. The case's outcome will impact Kors' future and the handbag industry.

Burberry's recent collection at the National Theater failed to impress amid ongoing corporate turbulence. Despite new leadership and fresh talent, the show lacked the wow-factor needed to revive the brand's fortunes. Creative director Daniel Lee's designs, particularly the parkas and trenches, appeared forced and uninspired, leaving much to be desired.

Hermes International is recommended as a defensive investment amid a luxury sector slowdown, according to BNP Paribas Exane analysts. Upgraded to outperform, Hermes is expected to maintain above-average growth due to its resilient business model, despite declines in other luxury stocks like LVMH and Kering SA.

Seoul Fashion Week's spring 2025 edition showcased a vibrant array of new domestic brands and innovative off-site programs. The event, held at Dongdaemun Design Plaza, highlighted creative collections and collaborations, attracting global media, buyers, and fashion enthusiasts. Notable debuts and expanded trade shows underscored South Korea's burgeoning fashion scene.

Performance Platters 🍽️

Brands like Belgian Boys and Olipop are shifting their focus to reach U.S. shoppers in smaller cities. They are investing in retail media networks and hyper-localized marketing to connect with busy parents and larger households. Platforms like Hummingbirds help brands create targeted campaigns, driving sales in specific regions.

Perplexity, backed by Nvidia and Jeff Bezos, is in talks with brands like Nike and Marriott to revolutionize AI-powered search advertising. They aim to replace Google's auction-based system with sponsored questions featuring AI-generated answers. This shift promises unbiased answers while enhancing user experience and advertising effectiveness.

VTEX's survey reveals that 45% of U.S. consumers have engaged in live shopping, with men leading in participation. Social video commerce is also popular, especially among Gen Z and millennials. Brands should leverage these trends, focusing on consistent, engaging experiences to boost consumer engagement and sales.

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