magic day 1 2017 a february 22 2017 - deborah weinswig · 3 february 22, 2017 deborah weinswig,...
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February22,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
Top 10 Takeaways from Day 1 of Magic 2017 TheFungGlobalRetail&TechnologyteamisinLasVegasthisweektoattendtheMagicconference,whichcoversthemen’s,women’sandchildren’sapparel,accessoriesandfootwearmarkets.Here,weshareour10keytakeawaysfromtheevent.
1) PanelDiscussionwiththeDisruptorsModeratedbyDeborahWeinswig
2) TheTrumpTradeTeam:MemberBios
3) TrumpandTrade
4) ConsumersDemandingFewer“Rules”inRetail
5) RetailersShiftFocustoRetailFundamentals
6) PriceConsistentlyaKeyConsiderationinPurchasingApparel
7) FootwearIndustrySeeingDramaticChange
8) WhySpeedMatters
9) AuthenticityisParamountinSocialMedia
10) WGSNHighlightsTopTrendsforFall2017
1.PanelDiscussionwiththeDisruptorsModeratedbyDeborahWeinswigDeborahWeinswig,ManagingDirectorofFungGlobalRetailandTechnology,moderatedapanelofretailleaders,includingAndyBallard,CEOofQuadAnalytix;TomGlazer,PresidentofGiGiNewYork;JulieVargas,DirectorofDigitalSolutions,AveryDennison;NealKusnetz,FounderofRobertGrahamandBoardofAdvisorsPerchInteractive;andYaelVizel,CEOofZeekit.
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February22,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
Source:FungGlobalRetail&Technology
Muchofthediscussioncenteredaroundtechnologiestoimproveretailandtheretailexperience,specificallyintelligenttaggingandZeekit’snewplatformwhichallowsconsumerstobrowseretailcatalogsandthento‘try’eachoutfiton.Giventhatretailislessstraightforwardthanithasbeeninthepast,thegarmentisthemostconsistentpartoftheexperience.AveryDennisonworkedwithRebeccaMinkofftocreateuniquetagsforhandbagsthatturnedintoaninvitationforthebrand’sfashionshowthenextday.UserfeedbackonZeekit’snewplatformsaidthatitnevergotboring—consumerslikedlookingatthemselves,turningitintoagame—andwasentertaining.
2.TheTrumpTradeTeam:MemberBiosWeattendedapaneldiscussionfeaturingJonFee,SeniorCounsel,Alston&BirdandDavidSpooner,Partner,Barnes&Thornburg.AccordingtoForbesmagazine,PresidentTrump’stradeteamis“themosttradehostileandpotentiallydisruptivegrouptooccupytheWhiteHouseinmorethan100years.”
RobertLighthizer,USTradeRepresentative:RobertLighthizerwasDeputyUSTRunderRonaldReaganandhasledaninternationaltradepracticeatamajorUSlawfirmforthepast30years.HeisharshlycriticalofUStradewithChina,Chinese“mercantilism”andallegedcurrencymanipulation.LighthizeradvocatesharshlawenforcementactionagainstChinathroughantidumpingandcountervailingduties(AD/CVD).
WilburRoss,CommerceSecretary:WilburRossisaUSbillionaireinvestorknownforleveragedbuyoutsofdistressedbusinessesinthesteel,coalandtelecommunicationindustriesandsellingthemataprofit.In2004,hecombinedbankrupttextilecompaniesConeMillsandBurlingtonIndustriestoformInternationalTextileGroup,whichhesoldtoaprivateequityfirmin2016.In2008,Rossopeneda$100milliondenimmillinNicaragua,thencloseditforalossin2009.RossclaimsthatVATsemployedbyotherWTOmembershurtUSexportsandcharacterizesthemastradebarriers.
PeterNavarro,HeadofthenewWhiteHouseNationalTradeCouncil(NTC):PeterNavarrorecentlydirectedadocumentaryfilm“DeathbyChina”basedonthebookofthesamename.NavarroarguesthattradewithcountrieslikeMexicoandChinaisazero-sumgame,andarguesthatmassivetariffsagainstChina,MexicoandVietnamarenecessary,andwillcauseUSmultinationalsto“onshorenewfactories”,movingthemto“Charleston,Detroit,Houston,OklahomaCity,Savannah,YoungstownandToledo.”HeproposesthateliminatingtheUStradedeficitwillmathematicallyincreaseUSGDPbyanequalamount,raising$1.74trillionintaxesinadecadeandoffsettingtheeffectof
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February22,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
Trump’sproposedtaxcuts.GeorgeMankiw(economistforGeorgeW.Bush)andPaulKrugman(economistandcolumnistforTheNewYorkTimes)saythisviewisinconsistentwitheconomics.
3.TrumpandTradePresidentTrumpsaysWilburRosswillrenegotiateNAFTAwithMexico.PresidentTrumphasmentionedchangingtheNAFTAautomotiverulesoforiginandthedisputesettlementmechanism,buthassuggestednootherspecificchanges.Intermsoftradetariffs,thereareseveralwaysPresidentTrumpcouldimposetradetariffs,including:1)Section201safeguard(aglobalsafeguard);2)Section232oftheTradeExpansionActof1962(tariffsifimportsthreatennationalsecurity);3)theInternationalEconomicPowersAct(authorizesthePresidenttotakeextraordinarymeasuresifa“nationalemergency”withrespecttoathreat);4)BalanceofPaymentsAuthoritysurchargeofupto15%foruptofivemonthsintheeventofaBOPcrisis);and5)self-initiationoftraderemedycases.Inall,noneofthesethingsaregoingtohappeninahurry,socompaniesandretailershavetimetoplanhowtheyaregoingtoreactandadapttoanumberofdifferentscenarios.
4.ConsumersDemandingFewer“Rules”inRetailWeheardfromseveraldifferentretailersandcompaniesinvolvedintheretailspacethatconsumersnolongerwanttobetoldhowtodressandwhattowear;theywanttochooseforthemselves.Theywantmoreflexibilityandanincreasedeasinessabouttheirwardrobe.Someexamplesincludeseasonlessclothing,wherevelvetandbrocadearefeaturedinsummerstylesandpasteljacketsareshowninwintercollections,andmicroseasonsintermsofhowoftenproductisflowedintostoresratherthanthemoretypical,fall,winter,springandsummer.Someconsumertrendsarealsoshiftingtoandrogynouslookswhicharelessfocusedonmoretypicalgenderstylesandmoregenderneutral.AccordingtomarketresearchfirmNPD,themostsuccessfulshoebrandshaveseasonlesssilhouettes,includingstrappysandals,peeptoes,bootiesandslingbacks.Forexample,thesekeyseasonlesssilhouettesgrewinaleastthreeoffourquartersin2016,particularlypeeptoeboots,whichgrewby70%inthefallseason.
Source:FungGlobalRetail&Technology
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February22,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
5.RetailersShiftFocustoRetailFundamentalsAccordingtoDovCharney,ownerofLosAngelesApparelInc(andformerCEOofAmericanApparel),“theproductisnotdead.”Retailersneedtofocusonofferingcompellingproducttoconsumers.Fastfashionisnotthebeallendallforconsumers.AccordingtoCharney,GenZiswelleducatedintermsoffashionandapparel,theyaremoreintelligentthanpreviouscohortsandtheydonotwantpoorqualityproducts.Amidincreasingcomplexityandchangeintheretailspace,theproductitselfiscomingbackintofocus.Thereisrenewedimportancebeingplacedonofferingadifferentiatedproduct,particularlyasAmazonandotheronlineretailershaveallowedconsumersanincreasedlevelofpricingtransparency.Thathasresultedinmorechallengesforretailersandbrandsthatoffercommodityproductsand/ortrytocompeteonprice.Retailersneedtoboosttheemotionalcontentoftheirproductsandexperiencesinordertobetterengagewithconsumers.
6.PriceConsistentlyaKeyConsiderationinPurchasingApparelspendinghasremainedchallengedwith2.9%ofconsumerspendingdoneintheapparelandfootwearcategory,downfrom3.5%10yearsago.Thatcouldbeinpartdrivenbylowerpricesinthecategory,butconsumersalsohavemorespendingalternativessuchastechnology(whichinsomecasescomeswithamonthlyrecurringbill)aswellasfoodandeducation.Thefactorsthatmattermosttoconsumersarefitfollowedbypriceandthenstyle.Thatisunchangedoverthepastseveraldecades,andisconsistentformen,womenandacrossdemographics,aswell.Intermsofprice,consumers,inmanycases,havebeentrainedtowaitforsalesandtowaitforpricestogodown.Some70%ofclothingpurchasesareplannedandarenotimpulsebuys.
Source:FungGlobalRetail&Technology
7.FootwearIndustrySeeingDramaticChangeAsthetitlefortheNPDpresentation“AnIndustryinTransition:FootwearYear-EndReviewandLookAhead,”suggests,thefootwearindustryischanging.Footwearcontinuedtogrowby1%in2016,levelingofffromthepastfewyearswhichsawgrowthat6%in2015.Women’sfootwearrevenueisdownby1%,whilemen’sfootwearisupby2%andisnowalmostasbigasthewomen’smarket.Thekid’sfootwearmarketisalsogrowing,with15%ofthemarketandhalfofthevolume.Additionally,consumersareshowingstrongpreferenceforleisurefootwearoverdressandperformancefootwear.
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February22,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
8.WhySpeedMattersAccordingtoBrittonRussell,ChiefSupplyChainOfficeratCharmingCharlieInc.,thereareseveralbenefitstospeed,includingtheabilitytoreacttotrends,althoughthatistheleastbeneficialtoaretailer.Moresignificantare:1)theabilitytoknowwhat’sinyourstorewhenyouareplacingorders;and2)theabilitytounderstandwhichproductreallyresonateswithyourcustomer.Itislessabouttrendsandmoreaboutyourcustomer.Insomeareasofthebusiness,speedreallymatters,forexample,inseason,whereitcanimpactaretailer’sopentobuy,whileinothercasesithasnoaffect.Inaddition,thebenefitsofspeedarenotlinear.
9.AuthenticityisParamountonSocialMediaDuringthepanelsession,“SocialMedia,BestPracticesforyourBrandInfluencer,”DemiMarchesasaidthatconsumersarerespondingtorealcustomerswearingclothes.Brandsthatshehighlightedasdoingagreatjobofthiscuration/contentmixisReformation.Brandsthatarecapturingthe“everyday”“typical”girlandarewomenthateveryonecanrelatetoarealsoexperiencinghighengagementfromfollowers.MarchesasaidthatwhenshecreatedherbrandonInstagram,shewasfreshoutofcollegeso“mydemographicwasme.”Understandingtheaudienceisveryimportantandstayingauthenticwiththefirstclickisimportantforconsumerstofeelengagedwiththebrands.Thefirst12postsonInstagramarethebrand“lifestylebook”takingusersonanarrative.Theinfluencersallemphasizedtheimportanceofrepresentingthebrand’sauthenticself,andthatlifestylecontentisverysuccessful.Duringthepaneldiscussion,“HowInfluencerMarketingisBecomingMoreIntegrativeThanEver,”VicStylessaidthataudiencesconnectwithrealstoriesandengagementishigherwhenshesharesinformationaboutherlife,herbreakups,etc.Followershavebecomeacommunityoffriends.
Source:FungGlobalRetail&Technology
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February22,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
10.WGSNHighlightsTopTrendsforFall2017FashiontrendforecasterWGSNidentifiedseveralmajortrendsforfall2017,including:1)blurringgenresandcategorieswhichincludehigh,lowstyling,balancingluxuryproductswithlow-pricedgoodsaswellasgenderbendingandandrogyny;2)trans-seasonalandseasonless—forexamplepastel-coloreddustercoatsforfall;3)minimalmaximalismfeaturingtoneddownvolume,ruffles,notalotofprints,andfluidandrelaxedlooks;4)downtownfemininity;5)80sinfluence,whichincludespowerdressingandblazers;6)modernutility;7)thriftedeccentricity,whichwasinspiredbytheGuccieffectinamoreladylike,grown-upway;and8)FarEastinspired.
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February22,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
DeborahWeinswig,CPAManagingDirectorFungGlobalRetail&TechnologyNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@fung1937.comShoshanaPollackSeniorResearchAssociate
ErinSchmidtResearchAssociate
HongKong:8thFloor,LiFungTower888CheungShaWanRoad,KowloonHongKongTel:85223004406London:242-246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988NewYork:1359Broadway,9thFloorNewYork,NY10018Tel:6468397017FungGlobalRetailTech.com
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