Nikes joins rivals Adidas and Puma with big move into fashion via collaboration with Mathew Williams, the Alyx founder.
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 )
We all know that markups in luxury fashion can be ridiculously high. The journey from the factory to floor, gets items to be priced at higher than they cost.
Now E-commerce site Italic is betting that removing the branding and the mark-up will prove a hit with consumers. A big bet indeed!
The start-up’s members-only marketplace, which launched last Thursday, allows manufacturers that create products for luxury brands to sell directly to consumers without the LOGOs adding markups. Shoppers who pay a $120 annual membership fee can choose from a selection of unbranded luxury goods, from bags and wallets to prescription eyewear and leather jackets, produced by the same factories that count names like Prada, Givenchy, Celine and Burberry among their clients.
The company has raised $13 million in funding, from various top end investors. Over 100,000 people joined a waiting list to be notified when membership opens, with signups initially limited to the US, said company founder Jeremy Cai.
Upon launching, the platform will have nearly 60 styles live on the site, with a view to double this number by the end of the year. However, customers won’t find unbranded versions of the Gucci Dionysus bag or any of the latest Celine creations. All products sold on Italic will be unique and exclusive to the platform to avoid infringing on brands’ intellectual property / copyrighted designs.
The start-up joins a growing number of brands, including Everlane and Warby Parker, which provide a premium-feeling, minimally branded product at relatively affordable prices. Within the luxury sector, high-end retailers, including Mr Porter, Joseph and MatchesFashion, are expanding their private label collections, which tend to be priced below standard luxury fare.
Italic goes one step further, selling items that lack even the private label branding. The marketplace will instead focus on providing the infrastructure — from marketing, design and warehousing to customer support — to enable manufacturers to sell products directly. The company will take a commission on sales.
“We essentially do everything that brands do and more, but we do it for the manufacturers,” Cai said.
For example, Italic’s merchandising team will work with factories that have product and pattern libraries to tweak existing designs so they don’t mimic products already on the market. Italic also has two designers, alumni of Armani and Calvin Klein, to work with manufacturers that don’t have in-house creative teams.
“We are very careful about every single product that we sell being originally designed, you won’t find an exact product like it in the market,” Cai said. “We want breadth and coverage of a lot of different styles.”
Branding can be a powerful tool, especially in a sector like luxury, where purchases are emotional rather than practical. That’s especially true for “statement” products, like handbags.
“People buy branded products to be reassured of the quality and style of the item and also for their projected image: they somehow communicate to other people the style, sophistication and preferences of their owner,” said Mario Ortelli, managing partner of luxury advisors Ortelli & Co. “You want to feel and show that you are part of the brand story.”
But Cai doesn’t anticipate the manufacturers on Italic’s marketplace competing head to head with luxury brands.
“For a person who is going to buy a Gucci bag, we are never going to win them over with unbranded product,” he said. “That doesn’t mean in some avenue of their life, they wouldn’t be open to switching up their sheets or maybe a shirt, or a leather jacket, where they actually don’t like a logo on there.”
As well as geographical expansion and international shipping, the platform’s short term goals include expanding into product categories like activewear and beauty. The focus will remain on luxury, Cai said.
“The reason we want to start in luxury is because we can say to the customer: we can make premium product effectively and replace a lot of your aspirational shopping,” he said.
Calvin Klein is closing down its luxury collection business, closing its offices in Milan and making staff redundant in New York, according to a source. Michelle Kessler-Sanders, the president of the 205W39NYC ready-to-wear business, will leave the company in June 2019. Overall, about 100 people, or 1 percent of PVH's global workforce, will be affected.
After Calvin Klein parted ways with chief creative officer Raf Simons at the end of 2018, they said it was rethinking its approach to the luxury market, on a strategy that would “[offer] an unexpected mix of influences and moving at an accelerated pace."
In January, it was announced that the brand would close its 654 Madison Avenue flagship store, which Simons renovated in 2017, in addition to other changes, some of which came to fruition very soon.
The brand’s sales come from their underwear and denim lines, much of which is produced by third-party licensing partners. But chief executive Steve Shiffman still plans to develop what the source called "aspirational" products. The search for a new design director to lead that effort continues, but it's presumed that the designer won’t be as high profile as Simons.
YouTube is forming a new division dedicated to fashion and beauty content partnerships, led by Derek Blasberg. The appointment comes less than a week after Instagram launched its long-form video app, IGTV, in a clear bid to compete with the Google-owned platform.With him, YouTube has found a popular, well-connected frontman to court fashion and beauty leaders. A former columnist and editor for Style.com, Harper’s Bazaar and other fashion and lifestyle publications for over a decade, Blasberg is leaving his role as the host of CNN Style on CNN International after two years and heading to YouTube full time. He will retain a role as a contributing editor at Condé Nast’s Vanity Fair, where he was appointed the title of Our Man on the Street in 2015.
Blasberg will be based in New York and is tasked with cultivating relationships with brands and high-profile people in the industry so that they will use the platform more often, more effectively and build audiences there. A different division at YouTube will continue to focus on fashion and beauty influencers who built their followings on the platform.
Instagram hired Eva Chen, the former editor-in-chief of Lucky Magazine, in 2015 to play a similar role as head of fashion partnerships at Instagram. Since then, the platform has deepened its connection with the fashion and beauty sectors by working with designers, brands, stylists, makeup artists and influencers to ensure they get the most out of Instagram. Chen’s team assists in creating content and helps these industry players engage with their audiences.
Blasberg is a smart hire, but he has his work cut out for him. Instagram has an outsized influence in the highly visual fashion world. The platform and its fashion partnerships team have become an active part of the industry scene, most recently sponsoring a table at the Met Gala and supporting tentpole events like the CFDA Awards by installing and running Instagram-friendly photo sets. With the launch of IGTV, brands and influencers have a new outlet for vertically aligned videos for up to one hour in length, edging closer to something more typically found on YouTube.
“Vertical video is ideal for fashion and it’s a format that younger audiences are really comfortable with,” said Jim O’Neill, principal analyst at Ooyala, a video and analytics technology company. “The whole idea of up to an hour-long option is potentially really big for Instagram influencers, more so than even brands.”
YouTube has some advantages, including a larger user base — 1.8 billion unique monthly visitors to Instagram’s 1 billion — who are already trained to search for videos on the platform. On YouTube, Chanel has 1.1 million subscribers; a recent campaign video for its Bleu de Chanel Parfum was seen 3.8 million times. On Instagram, where the house has 28.5 million followers, the same commercial was viewed 250,000 times in the feed post format.
“In this newly created role, Derek will collaborate with our incredible creators and diverse portfolio of brands to achieve even more success," said Merryman in a statement.
YouTube already has some fashion trailblazers: model Karlie Kloss launched her own channel, Klossy, in 2015 and now has over 700,000 subscribers. She recently released a series sponsored by Ford as part of a partnership with her nonprofit Kode with Klossy, that features her interviewing trailblazers in science and technology.
The platform is also more popular with younger users. According to a recent Pew Center study of teens ages 13 to 17, 85 percent of teens said they use YouTube — the most commonly used platform — while 72 percent said they use Instagram. In terms of frequency of use, 35 percent of respondents said they use Snapchat more than other social media platforms, while 32 percent use YouTube the most and only 15 percent use Instagram the most.
Chriselle Lim, a fashion and beauty influencer who is often found in the front row at fashion shows around the world, said YouTube is a better platform for her tutorials and narrative videos. She’s been posting on the platform for almost 10 years and said her Instagram audience (1.1 million followers) and YouTube audience (761,000 subscribers) are completely different, with the latter being younger.
“I don’t see YouTube going away because it has such a separate audience and community there,” she said.
Lim is interested to see if Instagram users actually watch longer videos on the platform, because she knows that many users flip through Instagram Stories quickly. “We are so used to quick, bite-sized content on Instagram and YouTube really is for the long-form,” said Lim. She is going to save her more highly produced content for YouTube for now, but adds that it’s too early to say how she will approach IGTV.
Deepica Mutyala, an influencer who got her start after a YouTube beauty tutorial she posted in 2015 went viral, said her audiences on both platforms are about the same size. But her YouTube viewers are more global and younger, and brands pay higher rates for branded video on the service than on Instagram, in part because the platform is better suited for high production quality content. (She has 192,000 subscribers on YouTube and 168,000 followers on Instagram.)
“[For brands], it’s not always about getting the views,” said Mutyala, adding that this might change with the launch of IGTV. But she hopes the vertical video format, which resembles a FaceTime video call, will be a place for looser, more experimental videos. “I naturally film with my phone vertically anyways.”
“[IGTV] is sort of making [Instagram] a one-stop shop,” she continued. “You’re getting YouTube, Snapchat and Facebook all in one.”
Luxury conglomerate LVMH Moët Hennessy Louis Vuitton SE has reached a $16.2 billion deal to buy American jewellery giant Tiffany & Co.
The companies announced that they had entered an agreement for LVMH to acquire Tiffany for $135 a share.
“We strongly believe that LVMH is not only an ideal owner for Tiffany but also that this iconic brand is a perfect addition to our portfolio and perfect complement to our existing model,” LVMH Chief Financial Officer Jean-Jacques Guiony.
The all-cash acquisition is one of the largest ever for the French conglomerate known for its hard-charging deal making and surpasses its $13 billion deal for Christian Dior in 2017.
The storied American brand has resisted acquisition for years, but as one of the few independent global jewellery houses remaining in the market, analysts had long speculated that it would make an attractive, if expensive, target.
But Tiffany has had a difficult time lately. In the first half of 2019, worldwide net sales at Tiffany decreased 3 percent to $2.1 billion. The American jeweller is facing weak demand at home and abroad, and will likely need heavy investment to re-energise its brand and business.
The deal will bring LVMH’s substantial financial and market clout to help support Tiffany’s ongoing transformation efforts. At the same time, it boosts the French company’s presence in the US market.
The deal also allows LVMH to gain further ground on Swiss conglomerate Richemont, which has long dominated hard luxury with its ownership of Cartier and Van Cleef & Arpels. Jewellery was one of the best-performing luxury categories in 2018, according to Bain & Co, which predicts that the global $20 billion market will grow 7 percent this year.
Tiffany employs more than 5,000 artisans to cut diamonds and craft its jewellery, rather than buying from middlemen.