H&M Gives Power to The People and Retailers Are Losing Billions With Sold Out Inventory

H&M GIVES POWER TO THE PEOPLE

H&M's new millennial brand /Nyden will be collaborating with indie designers, artists, and influencers to capture what customers truly want in their clothing.

The retailer has long been a strong performer on social media amongst fast-fashion brands and engages with followers for design feedback. In a recent collab, H&M took to Instagram Stories for opinions, attracting more than 425,000 viewers over two weeks and brought in more than 35,000 votes via IG polls. According to industry research, Millennials and Gen-Zers express loyalty to brands who share and listen to their suggestions. H&M, amongst other fast fashion retailers, is laying the groundwork for direct consumer interaction and ultimately, a more appealing product offering.

IVANKA SAYS FAREWELL

Ivanka Trump's run in fashion has come to an end. The namesake label sold items nationally in hundreds of department stores and boutiques, only to fall to its demise after negligence and the backlash of political affiliations. There is potential for the label to relaunch, however, despite its political challenges and sales decline after being dropped by many retailers.
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RETAILERS SLIP INTO RIVAL'S E-COMMERCE PACKAGES

New ad service UnDigital is making package insert marketing easier for retailers. The startup gives companies access to more than 300 million packages for ad insert opportunities. As retailers search for e-commerce fulfillment solutions and new marketing avenues, insert advertising may very well be a win-win.
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OUT-OF-STOCKS CAUSING BILLIONS IN LOSSES

E-tailers could potentially lose billions in sales annually when products aren't available online for purchase. In a research report conducted by the Grocery Manufacturers Association on non-food online retail categories, out-of-stock rates were 15% online, compared to 8.3% in physical stores.

“The findings should encourage retailers and brands to collaborate and enhance online availability in the fast-growing area of online retail," says Keith Olscamp, director of industry affairs and collaboration at GMA. Managing availability across the supply chain is an age-old problem that causes consumers to seek alternatives.

AMAZON IS NOT THE BAD GUY

On the contrary, Amazon is not as much of a threat to the retail industry as you may think. In terms of stocks, the retail sector, as a whole, is rallying. David Seaburg, head of sales and trading at Cowen & Co., "sees retail possibly breaking through previous highs to notch new records well above the old."
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THIS WEEK'S BRIGHT SPOT

The RealReal will be charting new territories and expanding its brick-and-mortar footprint after closing a $115M Series G funding round. "Re-commerce" is growing 20x faster than the overall retail market and five times faster than off-price retailers, leaving The Real Real in a real advantageous position. Congrats!
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