For years we’ve talked about the 72-million strong millennial generation (born between 1981 and 1996) as the next-gen customers for luxury brands. But now there is an even younger generation on the horizon, Gen Z (born from 1997 to 2012), 67 million and counting. Note to self: immigration continues to add to their numbers. Similar But Different Like siblings born in the same family, millennials and Gen Z share similarities, but the greater the age difference, the greater the differences in the worlds they grew up in. Sixteen years …
NRF, Come and Gone
NRF’s 2022 Big Show was far from big but it was the first in person gathering at a scale that the industry has seen since early 2020. Similar to what happened at CES this year, most of the big tech companies such as Intel and SAP did not show. Many of the medium sized firms also opted out. This opened up the opportunity for younger, smaller Innovators including tech startups to shine. Their show footprint and density were consistent with prior years, whereas the main exhibitor space had major gaps. The State of Retail The uneven …
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 …
One Step Closer to Circularity
As an industry, we have long averted our eyes from the nasty environmental side effects of the manufacturing processes and the distribution of the things we sell. We continue with business as usual, giving a nod to sustainability as the overwhelming scale of the problem has stunned us into inertia. Our immediate business survival overrules the difficult systemic change that climate change and environmental pollution demand. But honestly, how can any of us sidestep the issue (while munching on avocado toast) as we operate in a period of …
The Supply Chain Remains Broken in ‘22
Predictions about the end of worldwide pandemic conditions – and their impact on global supply chain logistics – have been ridiculously wrong. Every time “the experts” thought the worst was over and things would start to calm down again they’ve turned out to be incredibly incorrect. So, to everyone who was saying 2022 would see a return to more normal shipping times – and costs – perhaps it’s time to rethink that premise. Of course, the recent spike in Omicron Covid cases means all bets are off on more normal conditions, but several …
Five Takeaways for Retailers from CES 2022
Well, that was interesting. When CES 2022 came to a close, one day ahead of schedule; attendees were dismissed early as “an additional safety measure” for minimizing the risks of Covid-19. (Apparently the brain trust at the Consumer Technology Association – the entity which produces the annual Las Vegas extravaganza – didn’t think that the risks of Covid-19 would be all that high on the first few days of the show.) The Show Must Go On Granted, show organizers were pretty much in a no-win situation. The pandemic had already forced the …
A Perspective on Luxury from a Global Citizen
Let’s talk context. The origins of luxury goods go back to the 18th century when the retail model was developed for an aristocracy – the landed gentry with money to spend. In France, Italy, Spain, and England, aristocratic wealth spawned a category of high-quality expensive goods. Jewelry and clothing were just the entry points. Look at the history of Gucci, Rolex, LVMH, Rolls Royce and you will see the clear link between money and privilege. In their brand origin stories, money had a peaches and crème complexion. First Generation …
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 …