Weekly News Brief
IT FINALLY HAPPENED
After months of speculation, Coach proved rumor-mongers right by buying Kate Spade for $2.4 billion in cash. Now the rumor mill has moved on to hype Coach's ambitions to become the first American fashion conglomerate and pitch itself headfirst against the likes of Kering and LVMH. The New York Times gives an overview of other groups who have tried and failed, as well as point out the challenges Coach would face in their grand ambitions.
In other acquisition speculation, Hudson's Bay is looking at snapping up Neiman Marcus, provided that they can handle the latter's $4.7B pile of debt.
THAT MILLENNIAL ATTITUDE
So you think you know American millennials? Check yes if you already knew this: Millennials' adopt poly-identities (not to be confused with multiple personalities). They think that sustainability, liberalism and progressive business practices should already be a common standard.
Outside of America, millennials in Asia are apparently struck with the habit of overconsumption. Quartz reports that 40% of China and Hong Kong consumers qualify as excessive, compulsive shoppers.
We at StyleSage fully admit our compulsive need to shop for vacation outfits, as documented in our recent post on key vacationwear for the summer. Sorry, not sorry.
A SECOND TRY
In the meantime, LVMH is not resting on its laurels. The luxury giant gives the scoop on 24Sevres.com, the new multi-brand luxury e-commerce site that is set to launch by June of this year. It would be the first ever online platform to sell Dior and Louis Vuitton. The key point of differentiation from competitors like Net-a-Porter and FarFetch, says Chief Digital Officer Ian Rogers, is the focus on visually-led merchandising over editorials.
Let's hope this endeavor turns out better than the last (2009 saw LVMH shutting down eLuxury.com).
MORE THAN JUST EXPERIENCES
It's not just about shifts in consumer behaviour to online retail and experiences that led to experts sounding the death knell for the brick-and-mortar retail world. CNBC gives new insight into why retailers are failing, and it has to do with:
Changes in Chapter 11 bankruptcy laws mean less time for retailers to restructure and turnaround their struggling businesses, forcing them to opt for liquidation.
Concessions (like reduced rent or loans) to keep retailers afloat and in malls during recession are coming due, and retailers are running out of time to cough up the cash.
Retailers are flailing under the weight of massive private equity debts. High-interest payments are a deterrent for retailers to invest more resources in establishing their e-commerce presence.
☀️ THIS WEEK'S BRIGHT SPOT ☀️
Sephora stores are always buzzing, holding fast to their position as one of the (few) winners in the current retail climate. Their secret sauce? The way they integrate technology into shop floors, allowing digitally savvy shoppers free reign in a hi-tech make-up playground.
Here's a fun piece just for laughs: Ordinary folk are taking the IKEA-Balenciaga look-alike bag one step further by designing their own original IKEA fashion statements. IKEA race-striped pants and bucket hats? Oh yeah, where can I buy that sh*t? Totally serious here.