Even though Anna Wintour is staying, but the once deep pockets of the Condé Nast faced a $120 Million loss last year.
The brand behind Vogue, New Yorker and Vanity Fair are forced to take some austerity measures after losses of up to $120 Million last year. They have taken measures to cut spending and be more digitally savvy, but it is expected to adopt strategies to ensure that it does not disappear completely.
After Boston Consulting Group did a monthlong audit of their internal systems, Robert A. Sauerberg Jr., the chief executive of Condé Nast, plans to address senior staff members on August 8th.
The company having lost more than $120 million last year, plans to put three of its 14 magazines — Brides, Golf Digest and W — up for sale, three executives said. The marquee titles, including Vogue, Vanity Fair and The New Yorker are safe, for now.
The decades-long magazine boom that made the ostentatious possible, is a thing of the past. A shift in media-consumption has elevated Instagram, Snapchat and YouTube above the printed page. Before Time Inc. was sold to the Meredith Corporation, it experienced sharp declines in annual revenue. The ad buying firm Magna projects print magazine ad sales will fall by a double digit rate this year.
The $120 million loss in 2017 came about because of a sharp decline in ad revenue generated by the print magazines. Gains in the digital arena have helped offset the loss, but not enough to make the company profitable. Condé Nast reached its decision to entertain offers for Brides, Golf Digest and W partly on the recommendation of Boston Consulting Group.
This story appeared in the New York Times.
Video platforms like Zoom have rekindled the technology side of businesses, and helped reimagine how retail can target everyone working from home, to shop from home and new creative partnerships are springing up.
In June, Frame entered into a four-month pilot agreement with Bambuser AB to bring its consumers a new kind of shopping experience through live video shopping.
“This partnership allows us to create an even more immersive shopping experience and engage with our customers in real-time in circumstances when we can’t interact in-person,” said Jens Grede, cofounder and creative director of Frame. “We’re always looking for ways to enhance our shopping experience and Bambuser’s live shopping video feature allows us to blend our off-line and online channels in an engaging and entertaining way that more prominently highlights our current collections.”
Bambuser was founded in Stockholm in 2007 as the “world’s first company with a platform for interactive mobile live video broadcasting” though introduced live video shopping just last year. The company’s proprietary streaming technology is an end-to-end solution that enables mobile livestreaming directly on a brand or retailer’s web site.
“With the live shopping videos, we’re taking a leap into the future of retail and allowing brands to interact with their audience in the way they interact with each other, online or via smartphones,” said Sophie Abrahamsson, chief business development officer at Bambuser. “As the e-commerce space has grown over the past few months, retailers are looking for more efficient ways to deliver their products and brand experience to their consumers while they’re unable to interact in-person.”
“Brands like Frame are interested in taking their e-commerce channel to the next level by creating an even more engaging digital shopping experience where consumers can shop their latest pieces while also asking everything they want to know about it and getting feedback in real-time,” Abrahamsson said.
“We’ve seen an increase in e-commerce sales over the past few months and believe that consumers will continue shopping online even as some cities begin to reopen,” Grede said. “We pride ourselves on providing authentic and seamless customer experience and believe that brands need to create an e-commerce platform that helps consumers shop on their terms. Right now, consumers are looking for seamless and contactless ways to shop their favorite brands whether it’s shopping online, curbside pickup or one-on-one virtual shopping appointments — and our biggest priority is to continue to ensure the health and safety of our customers and workforce.”
Through the new functionality, Frame will be hosting live shopping videos on a monthly basis tapping into its large base of influencers and stylists to present the newest products and collections. The videos will highlight clothing fit, fabric technology and styling.
“Working with influencers and stylists has been a part of Frame’s DNA since Day One having collaborated with notable names in the industry like Imaan Hammam, Karlie Kloss and Tamara Mellon to name a few,” Grede said. “It only made sense to continue providing our customers with the best content and insight into fashion with stylists and influencers who’ve been longtime friends and supporters of the brand.”
The first live shopping video was hosted by Zanna Roberts Rassi, E! News style correspondent. During the session, Roberts Rassi walked through how to style various looks from the brand’s latest products and answered questions submitted by viewers.
According to Bambuser’s web site, its live video shopping technology sees an average of 6.2 times engagement rate compared to the industry average and 4.7 times the add-to-cart rate.
“Technology is a driving force that’s helping consumers and businesses alike navigate through the new normal we’re living in. It can help us now more than usual, as it allows us to connect people, products and data together, as well as give you access to share information around the world practically instantaneously so that everyone can stay connected. For businesses, this is crucial in order to survive during these unprecedented times by efficiently connecting virtually with their teams and customers,” Abrahamsson said.
On July 10, Bambuser announced a new partnership with Moda Operandi.
Nike is partnering with Matthew Williams, the founder of luxury streetwear brand Alyx, in a conscious move to make its performance category more fashionable. Matthew's work takes cues from the current youth culture and is recognised for his more practical approach to fashion, will launch his 18-piece fashion collaboration with Nike in mid July, which includes outerwear, monochrome leggings and a wide range of accessories such as logo-ed socks, face masks and towels.
Matthew's partnership with Nike, which has men’s, women’s and unisex collections, will be within Nike’s Training category, making this one of its first major collaborations with a fashion designer within the division. He founded Alyx in 2015 and has been working on the collaboration with Nike for the past year and a half.
He has a young fan base, and his brand's roots in merging street culture with practical garment construction, fits well with Nike’s Training division. But the collection also symbolises a wider strategic shift in the sport firm’s ambition to join its performance and lifestyle divisions, as it responds to the buying behaviours of young consumers, who often see less of a distinction between the two categories.
Nike still remains the world’s leading sportswear player in terms of revenue, but its performance-driven approach to apparel and footwear has lost some degree of “cool” in the eyes of young consumers, who often favour aesthetic and lifestyle features over performance and still make up a majority of the company’s clientele. Nike’s designer collaborations, including those with Kim Jones, Olivier Rousteing and Riccardo Tisci, also made a smaller cultural impact than those launched by Adidas.
( Photos Credit: Nick Knight )
Struggling brand Marc Jacobs is shrinking its presence in Europe as other direct to consumer brands expand. While you will still be able to find the brand at multi brand retailers like Selfridges or Harvey Nichols, the brands own store at Mount street will be no more. Business of Fashion sources claim that presently only a handful of store remain throughout the world, a far cry from its glory years.
Macy's is launching a women's line of clothing aimed at Muslim shoppers.
The chain announced it has teamed up with a boutique called Verona Collection and will sell the collection of "modest" dresses, tops, cardigans and hijabs online. The collection will launch on Macy's website on Feb. 15.
The brand was developed by Lisa Vogl, a graduate of Macy's minority- and women-owned business development program, which aims to offer more fashion diversity.
Though Macy's is the first major U.S. department store to sell hijabs, it joins brands like Nike, for example, who aim products at Muslims. Nike launched a high-performance hijab last year made for athletes.