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Roula Khalaf, the editor of FT, selects his favorite story in this week’s newsletter.
Street wear is worn thinly. Sales at PUMA increased only 4 % last year. German sneaker makers lost more than 20 % of market capitalization after not reaching the analysts last week.
Companies and clothing are on the side. First VF Corporation sold Supreme to Essilorluxottica for $ 1.5 billion. It was not paid in three quarters in the latter half of 2020. Many.
Call it a fashion task. The mainstream brand thrives when exposure. Like REISS, it was flooded with a flock order worn by Kate Middleton in an engagement photo of Prince William in British. Niche brands like streetwear get better as you have less. The best thing was that it was once able to sell brand bricks, but it turned out that corporate ownership and excessive exposure have been sucked into the roots of the street.
Luxurious brands play the niche market best because they understand the rare power. Supreme has brought a short -lived collaboration between Tiffany & Co and Burberry. Last week, investors cheered on unpredictable slides over the celebration.
Collaboration is a more hit and miss for small partners, whether it’s a street wear or another niche. From National Geographic to NASA, look at the van with your partner for many years. The old squall trainer of the “transcendental fashion” lost cache when shaking more than cool children. Six months until September, sales under the VF Corporation brand decreased by 16 % year -on -year.
The secret trick is to move on to the next necessity before existing things become mainstream. However, small brands have no capital to expand and continue to innovate. According to Bernstein’s analyst Luka Solka, the newcomer invention is only a year before a major brand march on the lawn.
Keeping the relevance is easier for a large brand and can be used quickly. If you dislike it or dislike it, Shain, a retailer in online first fashion, has accused you of the accusation that many litigation from a particularly independent artist have broken the design. Proof of the master.
For their small friends, following a suit means investing in innovation. Instead, temptation is to reduce costs. Sportswear provider Under Armor believes that the restructuring cost is $ 160 million to $ 160 million, or almost one -quarter of the shrinked marketing budget last year. It may be more pleased with investors in the short term, as they are mostly looking for profits. It is difficult to measure the tastes of shoppers.
louise.lucas@ft.com
