Jens Grede, CEO of Skims and serial fashion entrepreneur, shares insights on the brand's explosive growth, its new flagship in New York, and collaborations with celebrities like Kim Kardashian. He also discusses the challenges of working with a spouse in business. Joining him is Dan Frommer, founder of The New Consumer, who reveals trends from his report, including the rise of TikTok shops and changing alcohol consumption patterns. Together, they explore the evolution of the luxury market and the importance of authenticity in branding.
The success of Skims underscores the importance of aligning celebrity collaborations with genuine brand values and ethical practices in luxury.
The rapid rise of TikTok Shops highlights the power of social commerce among Gen Z, transforming how shopping experiences are designed and executed.
Insights from consumer behavior reveal a shift toward e-commerce convenience, signaling a major transformation in retail dynamics and spending patterns.
Deep dives
Polestar 3: Luxury and Performance Redefined
Polestar 3 is a luxury electric performance SUV that highlights the brand's commitment to both design and sustainability. The vehicle uses sustainably sourced materials, such as Napa leather and certified animal welfare wool, to create an opulent interior without compromising on environmental responsibility. Its design is crafted to be visually striking while also ensuring high performance, positioning it as a competitive player in the electric SUV market. This careful balancing of luxury and sustainability underscores Polestar's innovative approach to modern automotive design.
Consumer Trends in Retail Dynamics
The latest Consumer Trends Report highlights significant shifts in consumer behavior and spending patterns, particularly emphasizing the power of e-commerce. Data reveals a dramatic increase in online shopping, particularly during events like Black Friday, where e-commerce sales rose substantially compared to in-store shopping. This trend reflects changing consumer preferences that favor convenience, particularly as many shoppers opt for online experiences to avoid crowded physical stores. The rise of mobile shopping and buy now, pay later options further facilitates this shift, illustrating a transformation in how people approach their retail habits.
The Impact of TikTok on Shopping Behavior
The introduction of TikTok Shops has transformed content into commerce, capturing the attention of Gen Z and redefining shopping experiences on social media platforms. Over 60% of Gen Z respondents report using TikTok daily, suggesting that engagement on the platform translates into buying behavior, with significant dollars being spent on products showcased there. Interestingly, TikTok Shops have surpassed legacy brands like Sephora in sales, even while consumer skepticism regarding trust and product quality persists. This paradox reflects a new landscape where familiarity and ease of access on TikTok outweigh concerns, creating a burgeoning social commerce ecosystem.
Lifestyle Choices and Consumer Habits
Consumer attitudes toward health and wellness continue to evolve, showcasing a complex relationship with products like Ozempic and alcohol. Surveys indicate that while some users of GLP-1 medications plan to drink more, their experience on the medications often suppresses cravings for alcohol. This trend suggests a disconnect between intention and action, as many individuals on these medications may end up drinking less based on physical reactions. Overall, the broader narrative indicates that health supplements and lifestyle preferences are heavily intertwined with market dynamics, influencing consumer behavior in unexpected ways.
The Future of Fashion Retail and Celebrity Influence
The retail landscape is undergoing a significant transformation, driven by consumer demand for integrity and authenticity from brands, especially within the luxury segment. As younger consumers become increasingly discerning, the perception of brands based on their commitment to ethical practices and product quality has grown in importance. Collaborations and the relationship with celebrities can enhance brand visibility but must center on genuine connections and a shared ethos, rather than mere influence. The success of brands like Skims illustrates that understanding cultural relevance and maintaining a clear vision are crucial to thriving in this ever-evolving marketplace.
Lauren and Skims C.E.O. Jens Grede discuss the brand’s rapid rise and so much more: the new New York flagship, the sold-out North Face collaboration, Kim Kardashian, celebrity brands, working with your spouse (his business partner is his wife, Emma Grede), and the state of the luxury industry. (They also touch on all the I.P.O. speculation.) On the subject of spouses: Lauren’s husband, Dan Frommer, the founder of The New Consumer, stops by to discuss his “Consumer Trends: 2025” report, which features fresh intel on TikTok shops, and America’s enduring love of alcohol.