The Debrief

Kim Kardashian’s ‘solution wear’ line was recently valued at $3.2 billion. BoF correspondent Alexandra Mondalek charts the rise of the brand, and details what challenges lie ahead. Background:  Founded in 2019 by Kim Kardashian and retail veteran Jens Grede, ‘solution wear’ line Skims has taken the fashion industry by storm, disrupting the sleepy shapewear category and fetching a $3.2 billion valuation following its Series B funding round in January 2022. Now, the brand is looking to launch new categories and in new geographies, and is eyeing brick-and-mortar and a potential IPO.  “Investors particularly like to talk about founder-product fit, and this really felt like a business that accomplished that,” said BoF’s Alexandra Mondalek.  Key Insights:  Skims has seen non-stop momentum since its launch. Going forward, the brand will have to find a way to keep up with lofty expectations based on its early performance. As Grede told BoF in March, “[Skims] doesn’t have the luxury of failing.”A big challenge Skims has faced is managing unrelenting demand, especially amid the global supply chain crisis. Core items are often out of stock on the brand’s site — a huge problem for getting and keeping customers, and a reason for the business to take on funding, raising a $240 million round in January. Additional Resources:   Skims Plots Its Next Moves: ‘We Don’t Have the Luxury of Failing’ The BoF Podcast | Jens Grede on Building Skims, Frame and the Future of Fashion Building a DTC Challenger Brand | Download the Case Study  Join BoF Professional today with our exclusive podcast listener discount of 25% off an annual membership, follow the link here and enter the coupon code ‘debrief’ at checkout.  Want more from The Business of Fashion? Subscribe to our daily newsletter here. Follow The Debrief wherever you listen to podcasts. Hosted on Acast. See acast.com/privacy for more information.

BoF’s Daniel-Yaw Miller unpacks why — and how — sports stars including Russell Westbrook and Megan Rapinoe are running their own labels, with full financial and creative control. Background: Athletes have long been part of the fashion conversation. In the past, they’ve capitalised on their influence by inking brand endorsements with the likes of Nike and Adidas. Now, stars like the NBA’s Russell Westbrook, soccer player Megan Rapinoe and runner Allyson Felix are taking it a step further and launching their own labels in pursuit of more financial and creative control. Key Insights:Tennis champion Rene Lacoste’s namesake label is one of the earliest examples of an athlete starting a brand. One of the latest is NBA star Russel Westbrook’s Honor the Gift, which just showed its Spring 2023 collection at Paris Fashion Week. Founding a brand gives athletes more control over creative direction, finances and their future; whereas endorsement deals often mean athletes have little say, are restricted in what they can wear and will expire upon their retirement. Many athlete-founded brands are imbued with a sense of purpose. After leaving Nike, track star Allyson Felix founded footwear and apparel label Saysh — which just closed an $8 million funding round led by Gap’s investment fund — with a nod to her advocacy for maternity rights baked in, allowing mothers and pregnant women to trade in shoes as their foot sizes change. Though many athletes, including Westbrook and Felix, are pushing out brands toward the end of their playing and running careers, younger players are starting their careers with the mindset that they will eventually run fully-fledged businesses like Honour the Gift or Saysh.Additional resources: How Athletes Went From Selling Merch to Building Fashion Brands How NBA Star Russell Westbrook Is Changing How Men’s Fashion Works Why Luxury Brands Want in on FootballJoin BoF Professional today with our exclusive podcast listener discount of 25% off an annual membership, follow the link here and enter the coupon code ‘debrief’ at checkout.  Want more from The Business of Fashion? Subscribe to our daily newsletter here. Follow The Debrief wherever you listen to podcasts. Hosted on Acast. See acast.com/privacy for more information.

After a pandemic pivot to e-commerce, many brands are back to working with third-party retailers, this time, with better terms. Background: The wholesale model, while offering exposure and some upfront revenue, did not always have the best terms for vendors. Department store bankruptcies, pandemic-induced store closures and the boom in online shopping pushed brands further towards their direct-to-consumer and e-commerce businesses to drive revenue.  But that’s beginning to change. As shoppers return to stores, brands are seeing value in ramping up their partnerships with multi-brand retailers — this time on better terms. “What I'm hearing across the board from both brands and retailers is that this vendor-retailer relationship is more collaborative than ever,” said BoF retail correspondent Cathaleen Chen.  Key Insights:  There are multiple factors pushing brands back to wholesale. Among them, the growth of e-commerce, which has slowed after spiking in 2020, and the growing consumer appetite for curated, in-person shopping experiences that allow them to stumble upon new designers. “That discovery is still so important, and now [shoppers are] relying on a cool third-party retailer to sort of facilitate that discovery,” said Chen.Both parties are also increasingly open to exploring other models like concession, consignment — more typical to European department stores — and drop-shipping, where the brands themselves are responsible for fulfilling orders made through retailer’s websites.  Brands are returning to wholesale, but not at the expense of their direct-to-consumer and retail offerings. “I think we're at a point where everybody has a more well-rounded business so that if things do go bad again in whichever channel, they can be agile and adapt very quickly,” said Chen.  Additional resources:  How to Take a Brand From Local to Global | BoF  Searching for the Next Barneys  Inside Neiman Marcus' Post-Bankruptcy Playbook Join BoF Professional today with our exclusive podcast listener discount of 25% off an annual membership, follow the link here and enter the coupon code ‘debrief’ at checkout.  Want more from The Business of Fashion? Subscribe to our daily newsletter here. Follow The Debrief wherever you listen to podcasts. Hosted on Acast. See acast.com/privacy for more information.

BoF correspondents Chavie Lieber and Daniel-Yaw Miller discuss why fashion brands are making products for sports like pickleball, padel, rugby, boxing and skiing.  Background:  Two decades ago, Lululemon built its brand around yoga — then considered counter culture. Today, it’s a $6 billion behemoth that makes products for everything from running to swimming and tennis, becoming a model for upstarts like Gymshark and Nobull hoping to filch market share from giants like Nike and Adidas. Now, as sports like pickleball, padel and skiing are gaining traction, there’s yet another opportunity for start-ups to disrupt the activewear market.“If you go niche and focus on a very specific customer base with a very specific niche following, that might be a better way to crack activewear as opposed to selling everything for the masses — then you’re going head to head with Lululemon and Nike,” said BoF correspondent Chavie Lieber.    Key Insights: Instead of going after the activewear space in general, brands are serving underrepresented groups or making noise with differentiated products and price points. A few brands, like Gymshark and District Vision have succeeded by identifying strong communities and putting themselves at the centre of them. The activewear market represents a massive opportunity for brands: global sportswear is expected to grow to $395 billion by 2025, at an annual rate of 8 to 10 percent, according to McKinsey. Brands are tapping into the desire to look good while playing sports like pickleball, rugby and boxing. They are poised to benefit from and buzz surrounding events like the 2028 Olympics and 2031 and 2033 Rugby World Cup, which will be held in the US.  Additional resources:  The Hunt for Activewear’s Next Big Category Activewear’s Biggest Disruptors The Race to Develop the Best Sports Bra  Follow The Debrief wherever you listen to podcasts.  Join BoF Professional today with our exclusive podcast listener discount of 25% off an annual membership, follow the link here and enter the coupon code ‘debrief’ at checkout.  Want more from The Business of Fashion? Subscribe to our daily newsletter here. Hosted on Acast. See acast.com/privacy for more information.

The vice president of fashion and shopping partnerships at Meta and BoF technology correspondent Marc Bain join Lauren Sherman to discuss the company’s new marketplace — which sells digital items from Thom Browne, Balenciaga and Prada — and the future of fashion on the platform.    Background:  Social-media company Meta has launched a virtual clothing store, and Balenciaga, Prada and Thom Browne are the first major designers to create looks fit for avatars in Mark Zuckerberg’s metaverse.The designs, available for use on Instagram, Facebook and Messenger, include a Balenciaga motorcycle suit, Prada shorts and one of Thom Browne’s signature grey suits. The move marks Meta’s formal entry into the virtual high-fashion business after Zuckerberg declared his ambitions to build the metaverse in late 2021.Key Insights: Meta’s virtual goods represent an opportunity for consumers who may not be able to afford physical items from the labels, to own a piece of the iconic brands. Chen said the designers already are masters of creating their own immersive worlds — whether through shows or clothes — so it wasn’t hard to get them interested in the experience. Translating real-world texture and detail to virtual items, however, was a challenge. Right now, the metaverse doesn’t represent a huge revenue stream for fashion companies. But, being a first name to the nascent space has a branding advantage. Eventually, when brands are able to make virtual items into NFTs, they’ll be able to create true ownership and scarcity, which could create the same dynamics of exclusivity and hype that drive fashion today. Additional Resources: Balenciaga, Prada and Thom Browne Will Be the First Brands on Meta’s Virtual Fashion Store  Facebook’s Vision for Fashion in the Metaverse Join BoF Professional today with our exclusive podcast listener discount of 25% off an annual membership, follow the link here and enter the coupon code ‘debrief’ at checkout.  Want more from The Business of Fashion? Subscribe to our daily newsletter here. Follow The Debrief wherever you listen to podcasts.  Hosted on Acast. See acast.com/privacy for more information.

In this discussion, Sheena Butler-Young, BoF’s workplace and talent correspondent, unpacks the unique challenges managers face with Gen-Z employees in the fashion industry. Sheena highlights how Gen-Z's high expectations around remote work and salary are amplified by a labor shortage that grants them leverage. Unlike Millennials, this generation demands transparency and real communication over traditional sales tactics. The conversation also emphasizes the need for brands to understand these desires instead of relying on stereotypes.

Luxury editor Robert Williams from The Business of Fashion dives into Chanel's bold move to open exclusive boutiques for its top-spending clients. He discusses how this strategy aims to secure loyalty amidst economic uncertainties and rising store traffic. With Chanel's remarkable 50% sales growth in 2021 and a focus on personalized service, Williams highlights the brand's delicate balance: appealing to affluent customers while not alienating occasional shoppers. He also touches on the broader trend of private luxury boutiques across the industry.

BoF’s chief sustainability correspondent Sarah Kent discusses the rise of mycelium leather in fashion, with brands like Stella McCartney and Balenciaga leading the way. The potential $2.2 billion market for alternative materials hinges on scaling up production and reducing prices, as the industry strives for more eco-friendly options.

After years of analyst anticipation that the leg-squeezing silhouette would soon go out of style, market research firm NPD Group found sales for the skinny jeans fell behind straight leg jeans in 2021. Skinny jeans are far from dead though — still accounting for 30 percent of sales. Retailers have already felt the effects of the shift: Pacsun pulled the style from its stores because no one was buying it.  “It really just speaks to the changing of the times and how styles are evolving within fashion,” said BoF correspondent Chavie Leiber.   Key Insights:  Skinny jeans are no longer the most popular denim silhouette, according to data from NPD Group. But, that doesn’t mean no one is buying them.  As consumers come out of the pandemic, they don’t just want comfort. Shoppers are either skewing toward raw denim with no stretch or athleisure and leggings — but jegging and stretch denim styles occupying the in-between have started to fall to the wayside.  The world is in the midst of a “denim Renaissance,” says Marie Pearson, senior vice president of denim at Madewell, who added she’s never seen so many different types of fits and shapes selling. Additional Resources:  The Style That Finally Dethroned Skinny Jeans Why Skinny Jeans Will Never Die Fashion Drives New Denim Momentum   Join BoF Professional today with our exclusive podcast listener discount of 25% off an annual membership, follow the link here and enter the coupon code ‘debrief’ at checkout.   Want more from The Business of Fashion? Subscribe to our daily newsletter here. Hosted on Acast. See acast.com/privacy for more information.

BoF’s Chavie Lieber dives into the elaborate and secretive way luxury brands court their high-spending clients with trips to exotic locales and entry to exclusive events.  Background:  In the midst of a post-Covid luxury boom, brands are going the extra mile to lavish top spenders — known as very important clients, or VICs. To court and keep VICs, who often account for the majority of their sales, names like Givenchy, Balenciaga, Alexander McQueen and Chopard fly clients out to ritzy charity galas and film festivals, organise exclusive runway shows and extended stays in five-star hotels and even grant access to designers and executives.    “It's really about access to a designer, keeping them in the inner rings of the fashion world, so they feel seen and appreciated,” said BoF correspondent Chavie Lieber. “And then, obviously it leads back to more sales.”  This week on The Debrief, BoF’s Chavie Lieber takes Lauren Sherman inside the cloistered world of luxury clienteling.  Key Insights:  VICs, who can range from being very private to Insta-influencer status, are the engine powering luxury. Luxury e-commerce platform MyTheresa said 3 percent of its customers account for 30 percent of its business. In response to consumer appetite in the wake of Covid, brands have upped the ante on experiences for VICs and potential new big spenders. Much focus has been on the US, where spending in tertiary cities like Palm Beach and Austin — rather than New York and Los Angeles — is redirecting luxury’s attention. In the midst of economic turbulence, VICs are becoming even more important to brands, as entry level consumers hold off on spending-up.   Additional Resources:  How Luxury Brands Court the 1 Percent The Crypto Wealthy Are Luxury’s New Big Spenders The Two Hottest Cities in America  Join BoF Professional today with our exclusive podcast listener discount of 25% off an annual membership, follow the link here and enter the coupon code ‘debrief’ at checkout.  Want more from The Business of Fashion? Subscribe to our daily newsletter here. Follow The Debrief wherever you listen to podcasts.  Hosted on Acast. See acast.com/privacy for more information.