DTC Dispatch #033

LATEST NEWS

Can a Members-Only App Solve Luxury Fashion's Inventory Problem?

Discussing excess inventory may not be the most glamorous topic, but luxury fashion brands, like all modern businesses, must address this issue. Managing surplus stock is particularly challenging for high-end brands, which must balance inventory reduction with maintaining their exclusive image. The founders of Mile, a new online platform backed by prominent investors, believe they have found a solution.

Historically, outlets and sample sales were the go-to methods for offloading excess inventory. More recently, websites like The Outnet have provided an online alternative, offering past and in-season designer items at reduced prices, backed by the credibility of well-known industry players. Mile, which launched on Wednesday, aims to bridge the gap between these approaches. This tiered subscription app features curated merchandise from brands like JW Anderson, Prada, Balenciaga, and Brunello Cucinelli. While some items are sold at full price, most are available at up to 90% off retail—but only to those who receive an invitation to join.

Our take: The issue of excess inventory in the luxury fashion industry, though not often discussed, is a pressing one that these brands must tackle. High-end labels face the dual challenge of reducing surplus stock while preserving their aura of exclusivity. The launch of Mile, an innovative online platform, presents a promising solution to this conundrum.

Mile’s approach—using a tiered subscription model that offers curated merchandise from top brands like JW Anderson, Prada, Balenciaga, and Brunello Cucinelli—strikes a balance between exclusivity and accessibility. The platform's invitation-only model ensures that the allure of exclusivity is maintained, while the significant markdowns (up to 90% off retail) make luxury fashion more accessible to a broader audience. This strategy not only helps in clearing excess inventory but also attracts new customers who might later become full-price buyers.

Why online shoppers are crossing international borders

Rising prices are pushing consumers to seek deals globally, not just within their own countries. A recent study by the commerce experience platform Nosto, which surveyed 2,000 consumers across the UK and US, found that 52% of shoppers had bought at least one item online from an overseas store in the past year.

The study also revealed that 70% of online shoppers are likely to buy fashion products from international brands. For 41% of respondents, lower prices were the primary reason for shopping across borders.

Lower prices even led some consumers to stray from their preferred brands. In fact, 29% of shoppers said they would purchase counterfeit brand items if they were cheaper.

However, not all international shopping is driven solely by the hunt for bargains. About 23% of those surveyed said their purchases were influenced by social media, with 33% of Gen Z consumers citing social media as the main reason for shopping abroad.

Our take: The rising tide of prices has driven consumers to cast a wider net in search of deals, increasingly looking beyond their national borders to make purchases.

The trend of consumers seeking deals globally underscores a significant shift in shopping behaviors. It reflects a growing discomfort with domestic price increases and a willingness to navigate the complexities of international shipping and currency exchanges to find better deals. This behavior is not just about frugality; it also speaks to the increasing savviness of consumers who are adept at leveraging the internet to find the best value for their money.

The implications of this trend are multifaceted. On the one hand, it puts pressure on domestic retailers to remain competitive, both in terms of pricing and product uniqueness. On the other hand, it opens up opportunities for international brands to tap into new markets and grow their customer base. For consumers, this shift brings more variety and potentially better deals, but it also raises concerns about the quality and authenticity of products, particularly when counterfeit goods are considered acceptable alternatives.

On TikTok, Gen Z are Jane Birkinifying their luxury bags like there’s no tomorrow

There's no trend like a TikTok trend, and the latest one captivating Gen Z involves personalizing luxury fashion in unprecedented ways. Welcome to the era of Gen Z remixing and restyling luxury bags. Celebrities like Dua Lipa, Lily Allen, and Yunjin from K-pop group Le Serafim have embraced "dopamine dressing" by adding stickers, charms, jewelry, and keychains to their handbags. This creative personalization quickly caught on across the internet.

The inspiration behind this trend can be traced back to Jane Birkin, the original icon of bag accessorizing. TikTokers have coined the term ‘Jane Birkinifying your bag’ to describe the act of decorating luxury handbags with charms and trinkets. At the time of writing, the search term ‘Jane Birkinifying Bag’ boasts 60.6 million posts, highlighting the widespread appeal of this personalization trend. Countless creators are paying homage to one of fashion’s most iconic figures by sharing videos that showcase their unique takes on this phenomenon.

Our take: The latest TikTok trend captivating Gen Z—personalizing luxury fashion—exemplifies the generation's unique approach to self-expression and creativity. This era of remixing and restyling luxury bags signifies a refreshing departure from traditional notions of luxury, which have often emphasized exclusivity and untouchable perfection.

Platforms like TikTok have become incubators for creativity, allowing trends to emerge organically and gain rapid popularity. The ‘Jane Birkinifying’ phenomenon is a testament to how digital spaces can democratize fashion, making it more accessible and relatable.

Too Faced joins Amazon’s premium beauty store

Too Faced Cosmetics has officially launched on the Amazon Premium Beauty store, as highlighted in a recent news release. This marks a significant move for the brand, positioning it within one of the largest e-commerce platforms in the world. This strategic decision follows in the footsteps of Clinique, another Estée Lauder brand, which expanded its reach by joining the Amazon marketplace earlier in March. The addition of Too Faced to Amazon's Premium Beauty lineup underscores Estée Lauder's commitment to broadening its digital presence and accessibility.

To mark this exciting launch, Too Faced has collaborated with prominent lifestyle content creator Darcy McQueeny, appointing her as the brand’s official ambassador. McQueeny's role is pivotal in driving engagement and awareness for Too Faced's presence on Amazon. Throughout the month, she will host a series of events at Too Faced's headquarters, inviting fellow influencers to learn more about the brand’s innovative products, unique formulations, and the creative inspiration behind their bestsellers.

Our take: The launch of Too Faced Cosmetics on Amazon Premium Beauty is a significant move for the brand, expanding its reach on a major e-commerce platform.

Too Faced's partnership with lifestyle content creator Darcy McQueeny as their official ambassador is a smart marketing strategy. McQueeny will generate buzz by hosting events at Too Faced's headquarters and engaging fellow influencers. Her strong social media presence on Instagram, TikTok, and YouTube will attract followers to explore Too Faced products, further bridging the gap between product discovery and purchase.

This collaboration showcases Too Faced’s skill in blending traditional beauty branding with modern digital influence. By leveraging McQueeny's influence, Too Faced connects with a younger, tech-savvy audience that prefers online shopping. This move not only boosts the brand's visibility but also reinforces its commitment to innovative customer engagement.

The impact of the Olympics on Paris Fashion Week: Professionals tell their stories

To accommodate the Paris Olympic Games, the Fédération de la Mode et de la Haute Couture (FMCM) has advanced the dates of Men's Fashion Week to June 18-23, 2024. Despite this preemptive move, the fashion event, traditionally organized around FHCM's official calendar and supplementary off-site events, is anticipated to face disruptions from the global sporting event, which kicks off with its opening ceremony on July 26.

In an interview with FashionUnited, multiple press agencies noted logistical challenges and observed a decrease in brand participation in Paris Fashion Week dedicated to men's spring/summer 2025 collections. This trend is particularly noticeable at the Lucien Pagès agency, renowned for managing runway shows for several prestigious luxury brands. Daniel Urrutia, a fashion PR specialist at Lucien Pagès, attributed this decline to escalating costs and potential logistical hurdles associated with the Paris Olympic Games. "We anticipate these challenges," Urrutia explained in an email, emphasizing that the agency has no immediate plans to implement specialized systems during the Olympic period. "Our strategy will be to adapt and maintain operational efficiency despite any constraints that may arise," he affirmed.

Our take: The decision by the Fédération de la Mode et de la Haute Couture (FMCM) to reschedule Men's Fashion Week in Paris due to the upcoming Olympic Games reflects a proactive approach to navigating the city's busy event calendar. Moving the dates to June 18-23, 2024, is a strategic move aimed at minimizing potential disruptions from the global sporting event, which begins with its opening ceremony on July 26.

However, despite this adjustment, challenges loom for Paris Fashion Week, especially for events centered around men's spring/summer 2025 collections. According to reports from FashionUnited and various press agencies, there's a notable decline in brand participation anticipated during this crucial fashion period. This trend is particularly evident at agencies like Lucien Pagès, responsible for orchestrating runway showcases for numerous high-end luxury brands.