Sorry, mall-based retailers… Gen Z is just not that into you. Yet don’t take this to mean that they don’t visit your stores. Gen Z still prefers to browse online and purchase in store –– particularly when shopping for clothing. They’re also still willing to pay a premium for memorable, unique in-store experiences. Notable variances in generational shopping behavior have emerged during the pandemic. Namely, the fact that Gen Z and millennials are more interested in connecting with brands than retailers. But brands can’t be passive in the …
Makers Dominate the Entry Level Luxury Market
The luxury market has been built on exclusivity. The U.S. is still the largest global luxury market and luxury sector sales continue to soar – even through the pandemic. But how we define luxury is changing. First of all, the very tenets that the legacy fashion houses hung their hats on –– exclusivity, high price points, etc. –– are proving less relevant to younger customers. Luxury has always been about status. The concepts of craftsmanship, style, innovation and the desire to be “the person in the know” still resonate with today’s young …
No Clothes in the Resale Closet
I went to a local thrift store yesterday and noticed a phenomenon that can be seen across resale stores worldwide. Complete shelving fixtures were empty. Home décor was sparse. Bare clothing racks stood like stranded trees. But it’s not just physical resale shops where you can see this phenomenon. Online apparel resellers are equally pressed for inventory. It’s funny to think back to just three years ago, when thrift stores were overrun due to the “Marie Kondo Effect.” Apparently, customers got their closets cleaned out before the …
Where Rent the Runway Went Wrong
“Designer rentals starting at $30,” Rent the Runway’s website proclaims. A quick scan of the site shows free rental coverage, free dry cleaning… what’s a customer not to love? But the fizzling response to Rent the Runway’s IPO and recent sales snafus speak of a different company trajectory. Where did the home delivery apparel rental megalith –– that dared to do what so many start-up founders only talked about –– go wrong? The answer to that question is more complex than it would appear at first glance. Let’s take a look at how RTR grew from …
Generation Alpha Steps Up to the Plate
Members of Generation Alpha were born after 2010, so the oldest members of this generation are about to enter their teen years. They’ve been dubbed “mini-millennials” because of the similarities in purchasing behavior between this demographic and their millennial parents. (Not unlike the similarities between Gen Z and their Boomer grandparents.) As the most educated generation, Generation Alpha is already highly opinionated and activists, with a fully developed position on most current issues. In a 2019 survey published in Business Wire, Gen …
Prioritizing Brand Protection Before the Holiday Rush
Counterfeits pose a dangerous threat to any retail brand. Since every single sale is a pivotal branding opportunity, especially for young, burgeoning eCommerce brands, an online marketplace flooded with counterfeits can be particularly dangerous. One in five customers will boycott a brand after mistakenly purchasing a counterfeit product, and that’s not the kind of ratio that any retailer –– from the smallest Direct-to-Consumer (DTC) site to the behemoths like Amazon –– can afford to ignore. In the age of online reviews, it’s especially …
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Are Facebook and Instagram Toxic for Young Consumers?
Social media can be toxic for young consumers, and some platforms are worse than others. The Facebook empire, in particular, has been in the hot seat lately due to the recent release of a few studies that point to the destructiveness of Facebook and Instagram for teen girls’ perceptions of body image. In investigating claims, Facebook found that “one in five teens say that Instagram makes them feel worse about themselves.” Not a good look for the largest social media platform. Advertising on Facebook and/or Instagram is a given for most …
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Psycho Bunny Doubles Down on Physical Stores
What can we make of a brand that’s taking a look at everything else that’s happening in the retail industry and doing the exact opposite? Psycho Bunny is a men’s and children’s retailer that’s doing just that. The company actually opened in two mall locations in the past few months, when the rest of the retail world was shuttering stores, with plans to open more than 15 new mall stores throughout the year in 2021. It’s an interesting turn of events, with so many signs pointing to the death of traditional malls. Especially from such a booming …