ClickZ Luxury Fashion Newsletter - 10.31.2024

PLUS: Perfect Moment amps up U.S. luxury skiwear with new Dallas hub!

Author

Sophie Bruxner-Randall
October 31, 2024 • Estimated Reading Time: 6 minutes

Insight of the Week 📖

Couldn’t make it to Chicago for Shoptalk Fall? In this post, Jamie Bolton gives us a rundown of the key trends and strategies brands are betting on in Fall 2024: 

🔑 Invest in Brand: Investing in brand has never been more important. Full-funnel strategies on Paid Social are now crucial, allowing brands to both build awareness and drive conversions in-platform. As Kyle Leahy from Glossier puts it, “People want to be part of something bigger.”

🛍️ Go Omni for Growth: As D2C growth hits limits, embracing an omni-channel sales approach is key to staying resilient. Brands like Solo Stove and Chinese Laundry are leading with strategies that don’t replicate D2C on third-party retail, finding unique advantages in each.

✈️ Go Global: With lower CPMs and wide-open markets, the EU offers significant growth opportunities. Effective localization strategies are essential for US brands looking to expand abroad.

For a deeper dive, check out the full post here!

Niche Nuggets 🔎

Off-White's sale to Bluestar Alliance marks a shift from its luxury roots, raising concerns about brand dilution. Bluestar aims to honor Virgil Abloh's legacy while exploring luxury opportunities. The fashion industry faces challenges as brand management strategies prioritize short-term gains over long-term brand value and design integrity.

Perfect Moment, a luxury skiwear brand, has opened its first North American distribution center in Dallas, Texas. This strategic move, in partnership with Quiet Platforms, aims to enhance the customer experience by offering faster shipping options like two-day and overnight delivery. This development is part of Perfect Moment's broader expansion strategy, which includes opening a physical store in New York's SoHo District.

The new distribution center is expected to significantly reduce import duties and shipping costs, boosting Perfect Moment's eCommerce margins. Quiet Platforms' AI-powered delivery system will streamline order fulfillment, supporting the brand's growth in the U.S. market. This initiative reflects Perfect Moment's commitment to meeting customer needs and optimizing its supply chain for long-term success.

Hermès outperformed competitors with an 11.3% rise in Q3 sales, driven by its luxury handbags' appeal to wealthy shoppers. Despite global uncertainties, Hermès maintains its growth outlook. Its classic designs and production management reinforce exclusivity, making it a consistent industry leader, even amid a sector-wide slowdown.

Kering's luxury brands, including Gucci, faced a 25% revenue drop, signaling a need for strategic shifts. Meanwhile, Jacquemus opened its first NYC store, and Moncler launched a star-studded collaboration in Shanghai. Other highlights include Shawn Stussy's SDOUBLE relaunch and new collections from Wales Bonner and BEAMS x Polo Ralph Lauren.

The Q3 Lyst Index highlights a blend of luxury and accessible brands, with Miu Miu reclaiming the top spot. Alaïa and Ralph Lauren saw significant growth, driven by innovative designs and sportswear trends. Contemporary brands like Skims and Toteme also gained traction, reflecting evolving consumer preferences.

Discover Aligne, a boutique London fashion label gaining attention for its limited stock approach, avoiding oversaturation. Katie Holmes recently wore their chartreuse Clay cardigan, priced at $119, sparking interest. This strategy ensures exclusivity, making their pieces highly sought after. Explore this trendsetting brand and its impact on the fashion industry.

Performance Pulse 📈

Google Performance Max enhances eCommerce campaigns by utilizing multiple Google platforms, offering increased reach and automation. It provides an 18% conversion boost, real-time insights, and efficient ad targeting. Businesses should leverage audience segmentation and automated asset creation to optimize results, maximizing return on ad spend and campaign effectiveness.

Every performance marketing campaign can incorporate brand elements to reinforce brand identity, while brand marketing efforts can successfully leverage performance metrics to refine messaging and engagement strategies - but getting the balance right is where the magic happens.

Amazon Marketing Cloud (AMC) offers a suite of tools to enhance your campaigns. Use Amazon Ads for product visibility and create cost-per-click ads. AMC centralizes campaign management, providing near real-time metrics. For assistance, contact Amazon Ads; budget minimums apply. Cookies are used to improve services.

ClickZ is a Contentive publication in the DTC Ecommerce division