Under Armour Looks for Growth in Athletic-Inspired Sportswear Trend

Under Armour Announces New UAS Line

Under Armour launches their newest initiative, UAS or Under Armour Sportswear September 15, at New York Fashion Week for immediate sale at Barney’s, Mr. Porter, their own brick and mortar stores and a dedicated UAS website. This upscale, fashion sportswear product is anything, but performance athletic apparel. The athletic-inspired clothing is targeting “ambitious Millennials” with “modern American sportswear, at home in a professional work place and not on the field.

UAS Under Armour Sportswear

Photo credit Under Armour

Why UAS Makes Sense for Under Armour

Some people may be scratching their heads over this move into sportswear, but it makes perfect sense for a several reasons.

In 1997, Under Armour was a pioneer that introduced expensive, fashion performance apparel to a market used to activewear as thoughtless, cheap basics from footwear companies. They were the first major aspirational athletic brand for men, as Lululemon was for women.

Under Armour created an athletic brand that sold strength, prowess and status in the mind of the wearer and by the way, sold comfortable, performance apparel. Fashion branding is about stirring emotion and they have been squarely in the fashion business, since the beginning. They upped the ante on the whole men’s athletic market.

Under Armour is an epic brand, at a time when it is getting harder to achieve mega-status in a niche-driven, individualist market. The appeal of their brand gives them license to branch out into other categories and price points, upscale, technically-inspired sportswear being one.

Consumers started wearing the higher quality, more stylish and comfortable clothing out of the gym. The use of performance fabrics and athletic details in everyday sportswear has been gaining steam for a while, as a natural extension of this trend.

The market is overflowing with spandex blended fabrics, polyester is no longer considered “low-rent”, performance properties abound and even merino wool has been “recast” as a technical fabric. Apparel startups Kit and Ace (former Lululemon founders) and Ministry (former MIT students) are two examples of this major trend. The new Van Heusen Flex Collection is selling comfort and technical properties to the men’s moderate wear-to-work market.

Sportswear is being inspired by athletic apparel and is experiencing a huge disruptive change to the look, feel and function of these categories.

UAS Under Armour Sportswear for men and women

Photo credit Under Armour

The Athletic Apparel Market Is Extremely Competitive

For more than a decade now athletic apparel has been the big growth story in a lack-luster apparel industry. Athletic startups and existing brand extensions have exploded. There is much less breathing room in the active market right now. Either you innovate, take risks, extend your brand in new categories or stagnate, shrink or die. Puma, Adidas and Nike are all responding to this market shift with collaborations and extensions.

This market explosion has blurred the lines of distribution away from sporting goods to all retail channels, not good news for apparel-dominated sporting goods stores.

Under Armour was born from apparel lineage, so it is an easier transition for them. Many strong athletic footwear or sporting goods brands have yet to even capitalize on the seismic shift that happened in active lifestyle apparel. They are missing a great opportunity and do this at their peril. UAS has now gone beyond athleisure to sportswear.

UAS won’t be Under Armour’s biggest initiative simply because of price points, certainly not the huge opportunity of their new moderate distribution to stores like Kohl’s; but it will allow them to capture the imaginations and wallets of new customers.

 

Some other posts you might enjoy:

Decoding Millennial Shopping Traits & Habits

Are Sporting Goods & Outdoor in a Death Spiral?

7 Common Fashion Brand Management Mistakes

The Dix & Pond Blog, by Stephanie Bernier is the blog of  Dix & Pond Consulting, a Boston-based, company that consults on business strategy, creative direction, brand experience, trends, product development and merchandising. Clients include retailers, apparel, footwear & consumer companies.  CONTACT US TODAY! 

Thank you for sharing with a friend, if you enjoyed the post! 

 

 

 

 

 

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Tough Retail: 7 Ways to Grow Your Consumer Brand

Seismic Changes Are Happening to Retail

Under-employment, stagnant wages, historically high school debt, credit card debt, large healthcare deductibles, staggering urban rent, first homes, weddings and new babies, is there any wonder why Millennials seek value in their discretionary purchases like apparel, accessories, footwear and home?

This is the overhang from a deep recession, the Affordable Care Act and lackluster recovery. It has given rise to the Amazon-effect, outlets, successful discounters like TJX, fast-fashion, rental, consignment and intense comparison shopping. Who can afford to pay full-price?

Practically every retailer and brand is chasing the most cash-strapped generation in decades, because the Millennial generation, ages 15-33 is now the largest population in the US, finally surpassing the much wealthier Baby Boomers and Generation X.

A quote in the Wall Street Journal on May 12, really caught my attention. “Non-discretionary spending on health, insurance, education, and housing has taken an extra 4% out of personal consumption expenditures in 2015 compared with 2000, according to Craig Johnson, president of consulting firm Customer Growth Partners. That has reduced the discretionary spending available for traditional retailers by $500 billon, more than the combined annual sales of Walmart Stores and Costco Wholesale combined.” No wonder  we are seriously over-stored.

Traffic is down at brick and mortar retailers, everyone is trying to explain it, but the reasons are actually quite obvious. There are huge headwinds on spending, so consumers are chasing good deals or staying home.

Online retail, even though it represents less than 10% of all purchases is the fastest growing retail channel. This reflects the ease of comparison shopping, selection and simplicity for insanely time-strapped consumers. It isn’t the best way to browse or make impulse purchases. Who goes on Amazon, just to see what’s new?

Survival Strategies in Tough Times for Consumer Brands

What should apparel, footwear, home and consumer discretionary companies do to combat intense spending headwinds? Here are seven ways to grow in tough times:

Offer brand value. Brands with a consistent, clear identity and experience will rise above the clutter and command higher prices than weak concepts and me-too products. Think Apple, Nike, Under Armour, Kate Spade, Madewell and West Elm.

Be strategically focused on core strengths. It’s necessary to test new things, but focus on your sweet spots, invest in your strengths and best brands. Don’t get romanced with low-value, expensive projects and extensions.

Value great design. Creativity and innovation create demand and pricing power. Big marketing efforts without great products to back them up, won’t fool consumers, who value authenticity.

Look for untapped markets or niche opportunities. For instance, the  underserved plus-size markets for women and men, trending activities, hot fitness trends, growing sports, hobbies, etc..

Increase DTC efforts. Many stores will close, decreasing available doors for your apparel, footwear and consumer products. Your direct to consumer efforts online, with company-owned stores, pop-up stores, partnerships, direct mail etc., will help you control your brand message and destiny.

Think beyond Millennials. Brands with cross-generational “lifestyle” appeal will weather the competitive storm better than discretionary fashion brands just targeting Millennials. Baby Boomers have the greatest wealth in the history of the US and are due to inherit even more, even though they also took a hit during the Recession.

Take risks. This is counterintuitive in bad times. Hire experienced and visionary people who can execute a well-balanced strategy of taking creative risks while covering established business.

 

Some other posts you might enjoy:

7 Common Fashion Brand Management Mistakes

The New Definition of Athletic Apparel

Decoding Millennial Shopping Traits & Habits

 

The Dix & Pond Blog, by Stephanie Bernier is the blog of  Dix & Pond Consulting, a Boston-based, company that consults on business strategy, creative direction, brand experience, trends, product development and merchandising. Clients include retailers, apparel, footwear & consumer companies.  CONTACT US TODAY! 

Thank you for sharing with a friend, if you enjoyed the post! 

 

 

7 Common Fashion Brand Management Mistakes

Great Fashion Brands Sell A Promise, Much More Than Products

It’s easy to think of fashion, consumer or retail brands that have lost substantial brand value over the decades. A great example is Talbot’s, once a venerable specialty retail force that sold customers a promise of the well-bred New England costal life. They also happened to sell preppy clothes and accessories. Over decades and several owners, the brand has been diluted to a unremarkable chain of apparel stores, a mere shadow of it’s storied past.

Great brands sell a relatable promise, values and even fantasies at an accepted value/price relationship. Products are number one, but it so much more than product. If you can’t identify and express this “magic quotient” in your fashion or retail brand, you have a serious problem. This is a big part of the “why me?” of a brand.

The “magic” is often so intangible that owners, managers, finance, merchandisers and even creative staff don’t get it. They find themselves stewards of a brand without the know-how to take it forward, without losing it’s soul. They collectively tinker with the recipe, ending up with a thin soup. Their individual actions are often random and lack a singular vision.

7 Common Fashion Brand Management Mistakes

Consumer goods, especially apparel, home and footwear markets are brutally competitive today. Brand relevance and management has never been more critical in these fashion businesses. Here are 7 common fashion brand management mistakes:

  • The brand doesn’t have a clearly understood brand promise that the whole organization works from.
  • The company targets the wrong persona for the brand.
  • The products aren’t compelling and/or full of mixed messages. They extend the brand into new categories without a shepherd with a consistent vision.
  • Companies have the wrong people in key positions. Creative directors are often the brand visionary and steward for brand integrity across the organization. Hiring a poor creative leader can have disastrous results. A great creative director can get the best out of an average design and marketing team. They have to be clear , motivational leaders and able to stand up to equally senior employees in the company.
  • Companies sometimes overly-empower newly-minted designers, assuming they innately know what customers want. Experience does matter.
  • Design, merchandising and sales teams continue to repeat the same products without evolving the products for modern needs and relevance. They may be blind to demographic and fashion trends that affect the brand. Some insiders resist change.
  • Sometimes management outsources brand reinvention to branding and marketing agencies without the experience or market knowledge to make sense of the real path to growth.

Sorel,  A Perfect Case Study in Brand Evolution

Whether a brand is two, five years or many decades old, it’s value and brand promise has to be continually monitored for current relevance. It’s difficult to turn around a flagging brand, not impossible, when things have gone too far. I perfect case study is Sorel of Ontario, Canada.

Sorel was a men’s and women’s winter boot brand owned by Kaufman Rubber Company started in 1962 in Canada. At one point, they were one of the largest suppliers of waterproof “outdoor” boots in the world.

In 2000, the brand was bought out of bankruptcy for $8 million by Columbia Sportswear, of Beaverton, OR. The line plodded along until 2008, when they decided to revamp the brand. Sorel is now a big growth story at Columbia and was projected to do $200M in 2015 sales. (sales were $60M in 2009).

Sorel president Mark Nenow is quoted as saying to Bloomberg… “We’re going to make it about style, we’re going to make it about premium, we’re going to make it about design, we’re going to make it impossible to ignore.” He also said it is going to be about women, women, women.”  They started to make more feminine boot styles aimed at urban, fashion conscious women. The strategy upped the fashion ante, within the framework of brand heritage. Design and marketing delivered a consistent message. Sales grew rapidly.

They tried a pop-up shop in Manhattan in December of 2014 and it was a hit. It became their first permanent store. They recently opened a store in Burlington, MA.

This store stopped me in my tracks. It put Sorel in a whole new light for me, from “that boot brand” to “I gotta have it”.  They didn’t take the expected route of an “outdoor” store with winter and mountain references. It has a nod to heritage with their polar bear logo in a fun wall patchwork, but the brand experience is a hip, fashion store with rustic contemporary displays and lighting.

They now design a complementary  collection of innovative, “active, boot-inspired” sandals and booties that would make any fashion lover swoon, whatever the season. The newborns have the DNA of the traditional classic boots. They’re sexy, edgy and rugged.

I think about the marketing journey I travelled to see the brand as fashion, instead of functional winter boots. Fashion credibility started by seeing the boots at Nordstrom, but experiencing their store and the unique shoe collection changed my perception entirely. I can’t say I saw anything on social or other media. It was the store and the shoes that changed everything.

Sorel is the perfect example of a heritage fashion brand with a modern evolution. Genius!

 

Some other posts you might enjoy:

Are The Sporting Goods & Outdoor Industries in a Death Spiral

The New Definition of Athletic Apparel

Decoding Millennial Shopping Traits & Habits

The Dix & Pond Blog, by Stephanie Bernier is the blog of  Dix & Pond Consulting, a Boston-based, company that consults on trends, creative direction, brand experience, business strategy, product development and merchandising. Clients include retailers, apparel, footwear & consumer companies.  CONTACT US TODAY! 

Thank you for liking and sharing this, if you enjoyed the post! 

Are Sporting Goods & Outdoor in a Death Spiral?

Vestis Retail Group Files for Bankruptcy

Another one bites the dust. The Vestis Retail Group, owner of  Eastern Mountain Sports, Sport Chalet and Bob’s Stores of Meriden, CT is filing for bankruptcy. This follows the high-profile bankruptcy filing of Sports Authority of Englewood, CO and the recent closure of Boston-based City Sports stores. Prediction, the sporting goods graveyard will have more big-name corpses by year-end.

I also believe the outdoor, wood beam and hunter green team, Cabela’s, Bass Pro ShopsL.L. Bean and Dick’s Sporting Goods are seriously challenged these days. Because of the uniformity and proliferation of these outdoor/active mega stores, they are no longer the hot destination stores they once were. They’re surely feeling competitive headwinds from many directions. Dick’s will benefit from Sports Authority closures, but you can’t really say you’re a good student, just because the class average goes down.

In my view, the outdoor and sporting goods channels have reached saturation point and every niche has a ceiling. They will have to get smaller and find serious points of differentiation to thrive.

They also have an aging demographic and won’t have the same appeal to Millennials. 45% of this important demographic belong to a minority group (according to the US Census) unlike the Boomers and Generation X before them. The Millennial generation has more varied taste and less money to spend on apparel and accessories.

Apparel on clearance at EMS.

Apparel on clearance at EMS

What’s Happening in The Sporting Goods Channel?

Why is this happening in the sporting goods channel when sneakers are red-hot and athletic apparel has been biggest bright spot in apparel for almost a decade?

1. Amazon is an elephant in the room. According to a Slice Intelligence survey of 3.5 million consumers Amazon had a 43% share of all online sales last November and December. Their enormous selection, comparative deals, fast speed and free shipping are hard to compete with. According to Cowen & Co They are also on track to become the largest seller of apparel in the US, probably beating Macy’s by next year.

2. Sporting goods stores are no longer a key destination for women to buy athletic apparel. As the “athleisure trend” grew, so did the sources women and men have to buy these looks. Lululemon and Under Armour were the pioneers that challenged the category with fashion, quality and higher prices. Now the competition is fierce with traditional retailers increasing their assortments, specialty retailers like Athleta, brand-owned stores, online specialists and many wholesalers adding active to their assortments. Since women buy 80% of all consumer purchases, there is lot less traffic in sporting goods stores.

3. “Athletic inspired”, lifestyle apparel is far more important than performance apparel. The big expansion of active is wearing these clothes out of the gym. Many sporting goods stores and some apparel brands seem to think it is primarily about functionality and sweat reduction, not fashion and compelling design. Frequently, their lifestyle apparel offering is only the classic “outdoor” brands.

Many sporting goods stores devote enormous square footage to apparel and they generally don’t have the fashion chops to compete in a brutally competitive, rapidly changing apparel sector. Who needs another purple mock half-zip?

4. Sporting goods stores used to be the preferred place to buy sneakers. Performance sneakers,” sport-inspired” vulcanized cousins and fashion variations are the trending casual footwear today. Sporting goods retailers have not kept up with sneaker specialists and have treated the category as important as golf equipment. Women can buy “athletic-inspired” footwear from any of their favorite retailers from Forever 21 to Nordstrom today.

5. Youth participation is down trending for many sports. See this chart from Sports Business Journal in August 2015. There are many things going on here from the cost participation, fear of injuries, lack of interest, over specialization in one sport, etc. The drop in participation naturally creates less demand for equipment and related apparel:Youth sports participation rates.

What Should Brands do to Survive in This Climate?

What is an apparel, footwear brand or store to do in this highly competitive market? It demands creating real brand value, innovation, differentiation, targeting and understanding your competitive advantage in the market.

Competing just on price is a fool’s game. Fashion is emotionally driven by fantasy, hope or self-fulfillment, not just technical features or price. Wearable tech optimists, be warned.

Consumers want simple and exciting shopping experiences from brick and mortar or online stores. It’s time for the sporting goods and outdoor retailers to reimagine their stores for today, with nothing being off-the-table. Well conceived and executed brand experiences will turn this negative outlook positive.

 

You might enjoy these previous posts:

The New Definition of Athletic Apparel

Sports Authority Teeters on Bankruptcy- See The Reasons

Decoding  Millennial Shopping Traits & Habits

 

The Dix & Pond Blog is the blog of  Dix & Pond Consulting,  a Boston-based, company that consults on trends and creative direction, brand experience, business strategy, product development, merchandising and provides executive coaching for retail, apparel, footwear & consumer companies.  CONTACT US TODAY! 

Thank you for liking and sharing this, if you enjoyed the post! 

Color Trends 2016/2017 Going Green

The green color family is trending for spring 2016/17.

The green color family is trending for spring 2016/17.

It’s time for change. Green is the color of renewal and rebirth. Going green is a huge fashion color trend for spring 2016/2017. Especially alluring is lady-like, retro pistachio, my vote for color of the season. Also important are rich emerald, olive, dried basil and deep-woods green.

Olives are highly versatile classic neutrals. They are important for safari and military inspired looks and make perfect foils for a range of colors. They pair well with reds, yellows, oranges, pinks, blues and  purples. Olives looks especially sophisticated with the fashionable ultra-pales.

The olives will be key anchors for bottoms, outerwear, tops, shoes and bags. Emerald and pistachio sing on active, tops, career, dresses, accessories, swim and lingerie.

The Dix & Pond Blog is the blog of  Dix & Pond Consulting,  a Boston-based, company that consults on trend and creative direction, brand experience and business strategy, product development, merchandising and provides executive coaching for retail, apparel, footwear & consumer products companies.  CONTACT US TODAY!  or call 617.733.7411

Thank you for liking and sharing this, if you enjoyed the post!  Follow me to get the latest posts!

A “Dear John” Letter to J. Crew

To Mickey Drexler

Dear Mickey,

I write you with a heavy heart. You promised me that things were going to get better between us, but you still seem to be lost. The news around town is your sales are down and your debt rating isn’t great.

For years, I have been faithful to you, buying into your ideas, filling my closet and heart with tees, shirts, pants, dresses and even suits. You were my reliable love, a high-quality guy consistently offering the expected, with enough fashion surprises, that I kept coming back for more. I could always count on you. You made my life easy.

Mark down tee shirts at J Crew.

Markdown tee shirts at J. Crew.

No one could do it better. I never missed a chance to stop by in the mall. I toss most catalogs, but always save J. Crew for my next cup of coffee. Inevitably, I would grab my cell and buy into your fantastic stories once again. You were my Svengali.

When I wrote you months ago, you promised to change, go back to the old Mickey. I think you forgot who you are, the quality, pedigreed guy with colorful new ideas. You were the diamond-in-the-rough, in a sea of mall stores with similarly dismal apparel offerings. You don’t understand the unique place you had in my mind or the mall.

Did you hang with the wrong crowd? Do you think you should play with the fast-fashion girls to be cool? You played their cheap tricks and confused me with your reckless behavior.

As casual apparel got more athletic, you missed putting a J. Crew spin on it. This revolution was about sportiness, comfort and new materials, not the same old fits and fabrics.

Your career team is on a losing streak too, poor fabrics and skimpy fits. They clearly need a new coach.

J Crew career dress.

J. Crew career dress.

Sadly, you are addicted to cropped pants, cashmere cardis and slubby tees. You don’t recognize that even classic girls evolve. Your not thinking clearly. I know you have good genes. Your kid-sister Madewell, is on track to become a star. She has a clear brand direction and a bright future.

I’m sorry to say there is someone else, named Club Monaco. I get contemporary classic fashion-with-a-twist again. I’m willing to pay higher prices for quality in a hipper environment. I’m tired of the dark-paneled woodiness and your chaotic behavior. My current love is handsome, sexy and takes me to new places. He “gets” me.

Club Monaco spring trench.

Club Monaco spring trench.

Maybe someday we will be together again? Good brand management and design is about evolution and reinvention. You need an intervention and to hang with a better crowd. Your loving family hasn’t forgotten the good man you are.

 

You may enjoy these previous posts:

7 Common Fashion Brand Management Mistakes

Color Trends 2016/2017 Going Green

The Dix & Pond Blog, by Stephanie Bernier is the blog of  Dix & Pond Consulting, a Boston-based, company that consults on brand experience, business strategy, trends, creative direction, product development and merchandising. Clients include retailers, apparel, footwear & consumer companies.  CONTACT US TODAY! 

Thank you for liking and sharing this, if you enjoyed the post! 

 

 

 

 

How to Increase Traffic & Conversions on Your Ecommerce Website

Most ecommerce companies say they their number one goal is to increase visitor traffic and conversions.

The Internet is enormously competitive and crowded today. BTC and BTB ecommerce companies need to be doing everything possible to be found in searches and from online and offline marketing techniques. This is equally important for startups, established brands and long time retail websites.

Some startup entrepreneurs have a great looking website and are surprised by how few sales they are making. They frantically wonder, “How can I get more viewers to my site?” Some retailers have been selling online for years and see visits to their site down trending and bounces rising. They are in panic mode asking “Why is my site getting less traffic and conversions? Should we be trying new marketing strategies or a redesign?”

There are many things you can do to improve your traffic. Here is an eight point checklist on the best ways to increase visits to your fashion apparel, accessory, footwear, home or consumer product site. CLICK TO READ THE CHECKLIST.

How to increase your web traffic

The Dix & Pond Blog is the blog of Dix & Pond Consulting,  a Boston-based, company that consults on business and brand strategy, product development, creative direction, merchandising and executive coaching for apparel, footwear, home & consumer products companies.

Thank you for liking and sharing this, if you enjoyed the post!  Follow me to get the latest posts!

Decoding Millennial Shopping Traits & Habits

Decoding Millennial female shopping habits has become an obsession for companies, marketers, researchers and bloggers alike. Because this group is so large, the Millennial female is seen as the present and future of retail and understanding her is key to their success. There is endless hypothesis on what she wants and how she shops.

Millennials represent almost a quarter of the US population.

Millennials represent almost a quarter of the US population.

Who are Millennials?

According to the US Census Bureau Millennials are people born between 1982 and 2000. That makes them 33 to 15 years old. This group represents 83.1 million people and is more than one quarter of the US population. Baby Boomers, the formerly largest population group, is those born between 1946 and 1964. They are ages 69 to 51. Obviously Baby Boomers are getting smaller as the group ages. However they are still a large group and the wealthiest population in US history, so cannot be overlooked, by retailers.

Defining Millennial people ranging in age 15-33 as one homogeneous group, has it’s pitfalls. The life stages of teen priorities versus a young adult building a grown-up life, are quite different.

Teen’s lives focus on their school career, friends, social events, sports and maybe a part-time job. They generally want to “fit-in” with peers. Their money is mostly spent on fashion, technology and entertainment.

Young adults post-college, are socializing, building careers, getting married, setting up first homes and having children. They are socially influenced, but with maturity, they lean more toward more individualism. They are entering the part of their lives when they start to be adult consumers for wedding services, home goods, cars, insurance, housing, etc.

There are some generalizations you can make for all Millennials:

  • They are very budget conscious and serious deal seekers. Obviously, teens have limited spending power. Young adults are coping with weak employment, stagnant wages, unprecedented school debt and dealing with rapidly rising rents, as they start making larger, adult life purchases.
  • They are digitally savvy. The younger Millennials have grown up with technology all their lives.
  • Because of technology they access information and discover new brands continuously. They are very informed, brand aware and also brand agnostic for many items. They move on quickly to the next big thing.
  • They are very influenced by peers through social media and word-of-mouth.
  • They love to “share” the shopping experience.
  • They are more racially diverse than previous generations, because of immigration and higher birth rates in some groups. According to the US Census, 44.2 percent of Millennials are part of a minority race or ethnic group (other than non-Hispanic white).

Big Shifts in Retail Because of Millennials

It is no wonder why certain shopping channels or habits, have risen dramatically in the past several years, as they are driven by Millennial shoppers:

  • Fast Fashion: This frugal, diverse group has driven the meteoric rise of fast fashion stores such as Forever 21, H&M, Zara, Old Navy and will ensure the success of US newcomer Primark. These fast turning, cheap stores are just what the budget conscious Millennial wants. She can find a wide range of looks to meet her diverse cultural tastes. Being brand agnostic for apparel, the deal is more important than the label.
  • Online and brick and mortar consignment stores: The market for consignment of apparel, handbags accessories, jewelry and shoes is booming. This is a perfect solution for the budget conscious and brand aware Millennial. She can consign her discards on the same site as she picks up used, pricey branded items at a fraction of the cost. See sites such as Poshmark, ThredUp and Tradesy.
  • Rental fashion sites: Millennials drive the sharing economy. These tight-fisted, brand aware females get the brands they love on rental or rent to purchase sites of designer, everyday, wedding, plus size and maternity clothes such as Rent The Runway, Le Tote, Mine for Nine, Gwynnie Bee and Borrowing Magnolia.
  • Mass customization: The individualist Millennial has driven the trend of brand customization online for apparel, sneakers, handbags, jewelry, etc.
  • Social shopping: Millennials love to share… their photos, purchases, experiences and thoughts, like no generation before. Social sharing sites like Instagram, SnapChat, Pinterest, Facebook, etc. give them a platform for approval or to boast about their fashion finds. They can shop while simultaneously sending photos to friends for approval. They can see what friends are already wearing, too.
  • They do their research: This is the information generation. They do their homework online before making a purchase. They scout out the best deals, look for coupons and comparison shop to stretch their budget. More often than not they make the final purchase in-store however. E-commerce has grown tremendously, but brick and mortar sales still represent over 90% of retail sales.

In review, if targeting the Millennial customer you have to consider her life stage and culturally diverse tastes. She can’t be thought of as like-minded thinkers. Millennials  like to engage with brands that share their values, but can be brand agnostic and fickle. This is the greatest information and sharing generation, that loves to score a great deal.

Dix&Pond is the blog of Dix & Pond Consulting, Boston-based, product development, creative, branding, business consulting and executive coaching for apparel, footwear, home & consumer products companies and retail analysts. Follow me to get the latest posts

Thank you for liking and sharing this, if you enjoyed the post!

Flaming Hot – Warm Color Trend in Home & Fashion

Go from the frying pan into the fire. Flaming hot maraschino, tomato, mandarin and pumpkin colors are trending in home décor and fashion accessories for fall 2015. These in-your-face, sizzling shades are creating fashion flare-ups everywhere they go.

This powerful fall color trend is best used in small does for maximum effect. In home furnishings warm, bright colors are on pillows, sheets, towels, lamps, rugs, vases, tabletop, etc. They add a playful pop and seasonal update to neutral rooms and tablescapes. They look especially good when paired with greys. clean white and navy.

Warm colors add serious pop to home décor and fall 2015 fashion.

Warm colors add serious pop to home décor and fall 2015 fashion.

Hot, bright colors say uber-sexy or athletic, like no others, on fashion accessories or apparel. A red-hot handbag, pair of shoes, lingerie, dress, puffer, jean, top or nail color has the power to steal scenes. Again, restraint is key here, overdoing can send you down in fashion flames. Pair best with neutrals, denim, navy and black.

Dix&Pond is the blog of Dix & Pond Consulting, Boston-based, product development, creative, branding, business consulting and executive coaching for apparel, footwear, home & consumer products companies and retail analysts. Follow me to get the latest posts

Thank you for liking and sharing this, if you enjoyed the post!

Primark’s Boston Store- a Retail Force to Be Reckoned With

Primark, the UK-based discount retailer opened their first US store in Boston this month. The low-cost, low margin, fast fashion retailer, is located in the 70,000 square foot, historic Filene’s department store building in Boston’s Downtown Crossing section. They have plans to open 10 more locations on the East Coast by Easter 2016.

Well designed floor sets at Primark

Well-designed floor sets at Primark

I visited the store on Saturday the 26th and found it mobbed with urban shoppers. The location is a tour-de-force for a company that targets 18-35 year old, cash-strapped Millennial demographic. The Washington Street site, of recent decades has been a decaying, retail wasteland. Surrounded by the Financial, entertainment districts and Chinatown. It is far from other residential neighborhoods, but directly across from the highly central Park Street subway stop. The daytime walkable population swells dramatically, from the Financial District and other nearby employers.

Boston is home to three major upscale shopping areas, Copley Place, Newbury and Charles Streets. Many of the world’s best retailers open test stores here, because of the many universities, large population of wealthy international students and tourists, as well as a cosmopolitan, well-heeled population. The mass customer has been grossly underserved in Boston proper, so Primark, H+M and Macy’s in Downtown Crossing offer a strong trifecta for budget-conscious customers.

Seventies items at Primark

Seventies fashion items at Primark

I’m blown away by Primark’s well-merchandised assortment, attractive floor sets, and incredibly low prices, e.g. cotton tees for five dollars, jackets for thirty-five, seven dollar jeans, trendy shoes for ten…The assortment is compelling with strong key item basics and on-trend pieces like Bohemian, seventies-inspired items. It is wearable and stylish, including men’s,women’s, children’s and home.

The offer is more “adult”, less “teenage” than Forever 21 and Old Navy, less contemporary than Zara and less trendy than H+M. They also have a particularly strong intimate apparel department, which could eventually take a bite out of Victoria’s Secret. I couldn’t help thinking, why a frugal customer would scour discounters like TJX, when they can find such depth of selection at Primark?

Sometimes foreign-based retailer’s brand aesthetic doesn’t fit with American styling, color and taste levels. (I think this will hamper Uniglo’s future US expansion.) Primark’s Dublin-designed products feel comfortably appropriate in the US market.

A well done athletic assortment

A well done athletic assortment

Primark is another game changing player in the seismic shift of the Teutonic plates under US retail. The Millennial customer’s high debt levels, surging rent, transportation, entertainment expenses and the cost of staying connected, have had a deflationary effect on apparel pricing. To a great extent this customer is brand agnostic and sees apparel as a commodity. Fast-fashion, discount stores, consignment and apparel rental retailers, have been the beneficiaries of this mega-trend.

I spoke to an eagerly observing Primark executive. He was leaving in a few days to open the King of Prussia store in PA. I said, “Forever 21, Zara, H+M, Kohl’s, Target and J.C.Penney have a lot to worry about with Primark“. He wryly replied “That’s what we hope for.”

Men's clothing is wearable and compelling.

Men’s clothing is wearable and compelling.

Dix&Pond is the blog of Dix & Pond Consulting, Boston-based, product development, creative, branding, business consulting and executive coaching for apparel, footwear & consumer products companies and retail analysts. Follow me to get the latest posts

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