10 top takeaways from magic 2017 august 17 2017 · 10 top takeaways from magic 2017 the fgrt team...
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August17,2017
DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
10 Top Takeaways from Magic 2017
TheFGRTteamattendedtheMagicconferenceinLasVegasonAugust14–16thisweek.Theeventcoversthemen’s,women’sandchildren’sapparel,accessoriesandfootwearmarkets.Therewasalotofpositiveenergyaboutthetransformativechangestakingplaceinretail.Manyofthesessionsweregearedtowardsnewbrands,providingroadmapsandhow-toguidesonnavigatingthroughthefashionspace,andemphasizedprovidingauniqueanddifferentiatedproductoffering.Theresoundingthemeweheardthroughouttheconferenceisthatgettingproductstocustomersfasterisimperative,andthecurrentfashioncycleisoutofdate.Retailisnotdead;itisjustdifferent!Here,weshareour10toptakeawaysfromthethreedays.
1) Retailisn’tdead,it’sjustverydifferent!
2) Sourcingisstrategicandrequirescollaborationandinnovation,nowmorethanever.
3) Datafromsocialmediacanhelpretailersmakebetterandfasterdecisions,includingtrendandinventoryforecasting.
4) Fitiscriticalinapparelsales,evenmoreimportantthanfashionorstyle.
5) Robots,overtime,canbetaughttomanufactureapparel,anddomesticproductioncanbemadeeconomicalusingleanmanufacturingandmanagement.
6) Fashionisseasonlessandmorecasual,creatingopportunitiesforfashioninnovation.
7) Theproductdevelopmentcyclemustbeshortenedinordertoremaincompetitive.
8) Chinaisnolongeraone-stopshopforsourcing;thingsaremorecomplicatednow.
9) Thego-tosourcingdestination:VietnamcontinuestolureUSfirms.
10) ThefinaltakeawayconsistsofcommentstheFGRTteampickedupwhileattendingseminarsandmeetingsatMagic2017.
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
1.RetailIsn’tDead,It’sJustVeryDifferent!ThissessionwaspartoftheNationalShoeRetailersAssociation’s(NSRA)educationconference,andthespeakerwasJamesDion,FounderandPresidentofChicago-basedDioncoInc.Dionisalsoaninternationally-knownspeaker,retailconsultantandauthor.DionbeganhisremarkswithaquotefromaWalmartCOOassayingtherehasneverbeenamoredisruptivetimeinthehistoryofretail,however,thereisnogoingback—wecanonlygoforward.Hethendeliveredapresentationtitled,“DoomandGloom,”inwhichhediscussedthenumerousdisruptivecontributingfactors,includingstoreclosings,desperateactionsbydepartmentstores,e-commerce,anover-malledUS,discountstores,ashrinkingmiddleclass,pressurebysuppliersandconsumers’changingpressures.DionthenintroducedRetail3.0,whichincludesofferingfoodandbeverageincombinationwithapparel,savingconsumers’attentionthroughintelligentadvertising,seizingattentionthroughauthenticstoresandthemindshiftrequiredtoleveragetechnologysuchasaugmentedreality(AR).Heforecaststhatfuturestoreswilloccupysmallerspacesandwillserveasshowrooms,fittingroomsordrop-offpoints.Finally,onapositivenote,DionnotedthatmillennialsandGenZersprefervisitingphysicalstoresandthatconsumerspendingremainshealthy.
2.SourcingIsStrategicandRequiresCollaborationandInnovation,NowMoreThanEverInthepanel,“SourcingShakeUp:HowtoSteerYouWayThrough2017&Beyond,”executivesfromleadingretailersdiscussedthecurrentretailenvironmentandthechallengesandcomplexitiesofsourcing.RajivMalik,SVPofProductsandSourcingatKohl’ssaidthatcost,qualityandon-timedeliveryweretraditionallythestandardsthatwereusedtomeasureperformance.Today’senvironmentismorecomplexanddynamic,addinginagility,speedtomarketandtechnology.EdGribbin,PresidentofAlvanon,saidthatalthoughfromamacroeconomicperspective,wearelivinginastableenvironment,theenvironmentismorecomplicatedfromaretailperspective.Forexample,millennialsare83millionstrongandthisgenerationpreferstorentclothesthanbuy;theywanttobuyahouse,butdonotwanttobuyacar.HealsopointedoutthatAmazonhas16primelabelsthatdidnotexistayearago.
Source:FGRT
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August17,2017
DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
ThePanelistsdiscussedsourcingandhowittoucheseveryorganization,anditsneedtobestrategicallycollaborative,andinclusiveofeverypartoftheprocess.CharlesMcMurray,SeniorDirectorofBrandedProductDevelopmentandGlobalSourcingatCabela’s,said,“ThankyoutoAmazonforthedisruption.”Headded,thatAmazonisalogisticscompanywithadigitalplatformforselling,andthattheyhavetappedintobabyboomersandthedigitalgenerationwithdifferentneeds.Hesuggestedthatifyoucannotbeatthem,jointhem,andlooktowhoAmazonissourcingwithandcollaborate.Theotherwayisonproductdifferentiation,hesaid.
Sourcingtransformationstartswithasourcingstrategy,accordingtoMichelleMatthews,VP/DirectorofGlobalSourcingatMonarchGroup.Retailersneedstofigureoutwhattheprojectionsaretodeterminewhattheywillneed,andtakeaholisticviewoftheorganization.McMurrayaddedthatsourcingisaservicetothecustomerandasagroup,inordertotransform,sourcingneedstochallengecurrentbusinessmodelstogetcross-functionalalignmentandgetoutsidecounselforapanoramicview.Malikaddedthattechnologyinnovationisontheforefront,andleveragingPLMsoftwaredataisverypowerfulandthatautomatedsewingisrapidlyprogressing.Technologyforfitisevolvingandhepredictsthatwewillseeitbeforedriverlesscars.
3.DatafromSocialMediaCanHelpRetailersMakeBetterandFasterDecisions,IncludingTrendandInventoryForecastingThespeaker,WendyK.Bendoni,AssistantProfessorandChairoftheFashionMarketingDepartmentintheSchoolofBusinessatWoodburyUniversityandaninternationalretailtrendforecaster,discussedconsumerbehaviorinrelationtosocialmedia,andhowthedatacanbeusedfortrendforecastingformakingbusinessdecisions.Driversofconsumerbehaviorintheonlineworldincludesocialconfirmation,visualconsumption,instantgratification,thesharingeconomy,insta-fashionanduber-connectedconsumers.BendonicommentedthattheaverageAmericanspendsfivehoursadayontheirsmartphone(uponehourfrom2016).Onlinecontributorsstartedasbloggers,andnowconsumersofdigitalcontentcanbeanalyzedas“tribes.”Theyseeksocialconfirmationonline,aremoreaccustomedtosearchingforthingsvisuallyandbenefitfromthepowerofacollectivevoice.
Source:Affinio.com
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
Therearenewtoolsonthemarket,suchasAffinioandEdited,thatempowerresearcherstosiftthroughtheenormousamountofsocialmediadata,forexampleanalyzingattendeesofmusicfestivalssuchasCoachella.Inparticular,thereareatotalof32millionfestivalattendees,ofwhich15millionaremillennials,and“thefestivallook”hashardlychangedin12years,whichoffersanopportunityfornewfashions.Bigdatacanbeusedtopredicttrends,determinewhichproductsaresellingoutanddeterminetheoptimaltimetointroducenewproducts.
Fashwireisanotherdigitalplatformthatprovidesaninteractivelinkbetweenfashiondesignersandconsumers,anddrivesuserparticipationwithacurateduserexperienceandrobustrewardsprogram.Usersgivetheirpreferencesviaa“swiperight,swipeleft”model,andarerewardedwithdiscountsfrome-tailers,independentspecialtystoresandlargerretailers.Designersgetreal-timefeedbackonuserpreferences.
Source:Fashwire.com
TheFashwireplatformalsoservesasacommunitywhereusersarefreetoexploreanddiscoverstylesfromthedesigners’collectionsaswellasinspireotherswiththeirownpersonalstyles.SimilartoInstagram,usersofFashwirecanfollowotherFashwireusersanddesigners,likeandcommentontheiroutfits,linkingeveryonetogetherthroughoneapp.
4.FitIsCriticalinApparelSales,EvenMoreImportantthanFashionorStyleThisseminartookplaceasapaneldiscussiontitled,“FoundationsofFitforFashion.”Fitiscriticalinapparelsales,evenmoreimportantthanfashionorstyle.EdGribbin,Presidentofretail,apparelandfashionconsultingfirmAlvanon,discussedaestheticversustechnicalfit.Helearnedaboutfitfromhisstintintheuniformindustry,whichmustfiteveryone,versusinretail,whichcanonlyoffersixtoeightsizes.Eventoday,retailersareconstantlystrugglingwithfit.
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
Source:FGRT
Inappareldesign,thereisaconstantconflictbetweenthecreativeandtechnicalteamsduetoaninherentlackoftrust,andthereisnoclearownershipoffit.Moreover,therearedifferentdefinitionsoffit:aesthetic,commercial,technicalandpersonal.Productdevelopershavetoknowwhotheyaresellingtoandwhotheywanttosellto.Developersneedafocused,targetdemographic,asinglecorebodyandimplementtherighttools.Yet,designersandmerchantsdifferontheideaof“fitintent.”Itiscriticalthattherolesandresponsibilitiesbeassignedandacceptedwithintheorganization.
CrystalButtonisSVPGlobalSourcingandTechDesignofFullbeautyBrands,acatalog-drivenwebbusinessdedicatedtotheplus-sizecustomer—bothmenandwomen—inabroadrangeofcategories.Thecompanyproduces5,000private-labelitemsperyear.Herremarkscenteredonthecommunicationoffitand3Dfitting.Thecompanycreatedaninternaltooltoworkwithitsproductlifecyclemanagement(PLM)systemtomanagetheintentofagarmentandfit,ultimatelyleadingtocatalogandwebpages.Forexample,thecompanyhassixsilhouettesfortops,suchasshaped,straight,relaxed,A-line,trapezeandfit&flare.Therearealsooptionsforsleevelengthsandsleeveshapes.Thistoolhasreducedreturnratesandconversionrates,asthecustomerhasamoreconsistentandreliablefit.Buttonthenturnedto3Dfitting.Virtualfittingspeedsuptheoverallprocess,reducesthenumberofsamples,providestheopportunitytoviewthegarmentonanavatarandstrengthenspartnershipswiththefactories.
MarkCharlton,VPofTechnicalServicesatCalvinKlein,offeredapresentationtitled,“UnpackingFit.”Hisremarksbeganwithfitbeingafunctionofbodytype,comfortboundaries,easepreferencesandpersonaltaste.Successiswhenaconsumertriesonagarmentandcomments,“yes,itfits.”Theindustrymanagesexpectationsbyhavingtheconsumertryonthegarmentsanddecidewhethertheyfit.Oneportionoffitisscience—bodytypesvary.Oneportionisart—isagarmentbespokeormeanttofitarangeofpeople?Otherfactorsaffectingfitincludeglobalization,homogenization,obesityande-commerce.Thereisaninterestingcomparisonbetweenreturningfoodinarestaurantandreturningapparel—somehowtherestaurantdoesabetterjobof
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
managingexpectations.Insummary,fitisartxsciencexcommunication(thisisthemostimportantpart.)
5.Robots,OverTime,CanBeTaughttoManufactureApparel,andDomesticProductionCanBeMadeEconomicalUsingLeanManufacturingandManagementThissessionconsistedoftwopresentationstitled,“Robots,Automation:MadeinUSASourcing.”ThefirstpresentationwasgivenbyDr.MikeFralix,PresidentandCEOofClothingTechnologyCorporation[TC]2andTechnologyEvangelistforSoftWearAutomation,whichmakesautomatedsewingrobots.Dr.FralixdiscussedIndustry4.0,whichfollowedIndustry1.0(mechanizationandsteampower),Industry2.0(massproductionandtheuseofelectricity)andIndustry3.0(theuseofcomputersandautomation.)Industry4.0employstheInternetofThings(IoT),thesmartfactoryandmachinesthatcantalktoothermachines(andalsotohumans.)Hediscusseddisruptivetechnologiessuchas3Dprintinganddriverlesscars.Heclosedwithapredictionthatin18months,machineswillbeabletoassembleanentireT-shirt(whichisoneofthemostdifficultgarmentstomanage).
Source:SOURCINGatMAGIC
Thesecondspeaker,WillDuncan,CEOofapparelprocessimprovementconsultancyWillDuncan&AssociatesandExecutiveDirectorofSEAMSAssociation,discussedthegoalofthe“lights-out”factory,whichwillrequirenohumanworkers.Hecontinued,comparingatraditionalgarmentfactorywithoneusingleanmanufacturing,whichusesflexibleworkstationsandworkers,lessinventoryandlessfloorspace,resultinginhigherquality,betteremployeeinvolvementand,ofcourse,lowercosts.Leanmanufacturingtechniquescanbeappliedtomanagementandaswellasadministration.
HeintroducedtheReshoringFashionInitiative,whichaimstoreintroduceleanmanufacturingandbringmanufacturingandassociatedjobsbacktotheUSfrom
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
overseas.HecitedanarticleestimatingChina’scostadvantageatjust4%,duetohigherproductivityintheUS,whichisasmalladvantage.Duncanconcludedhisremarkswith“Ifallowedtodevelopandsucceed,theReshoringFashionInitiativewillcontributetobrands’andretailers’bottomline,whilebringinghigh-qualitymanufacturingtoareashardhitbythelossofjobsinrecentdecades.”
6.FashionIsSeasonlessandMoreCasual,CreatingOpportunitiesforFashionInnovationWeheardfromseveraldifferentretailersandcompaniesinvolvedintheretailspacethattheseasonsarebecomingblurredandthatconsumersarenolongerfollowingfashionrules.Someexamplesincludeseasonlessclothingwheretherearenolimitationsintermsofstyle,colorandmaterials.EdGribbin,PresidentofAlvanon,aretail,apparelandfashionconsultingfirm,suggestedthatwithfastfashion,therearenoseasons,withproductflowingintostoreseverytwoweeks,ratherthanthetypical,fall,winter,springandsummer.Forexample,bootsareworninthesummerwithdresses,traditionalwintermaterialssuchasvelvetandbrocadearenowfeaturedinsummerstyles,andpastelcolorsarewornallyearround.
AccordingtomarketresearchfirmtheNPDGroup,themostsuccessfulshoebrandshaveseasonlesssilhouettes,includingsneakers,mules,strappysandalsandankleboots.Forexample,thetopgrowthsilhouettesyear-to-dateJune2017includesneakers,comprising63%ofgrowth,fashionsportslides(18%),strappysandals(11%),ankleboots(9%)andmules/clogs(4%).
Seasonlessdressingisalsocreatinginnovationinthefashionspace.AccordingtotheNPDGroup,thereisinnovationinfootwearwithhybridsincluding“EspadrilleSneakers,”NikeAirHuaracheGladiators,”andpeep-toeboots,tonameafew.
Consumersarealsoincreasinglymorecasualandareseekingeaseandcomfortintheirwardrobe.Thistrendisevidencedeverywhere—withMen’sFashionfeaturinganarticleon“10waystowearsneakerswithsuits”andthesneaker-with-everythingtrend.PanelistSteveHawkins,SVPofSalesforAmericanTextile&ApparelofGrupoKarim’s,alsohighlightedthatthetrendintheUSismorecasualthanever.Hesaid“Billionairesaregoingtoworkwithhoodiesandflip-flopson.Itisn’twhatitusedtobe.”
7.TheProductDevelopmentCycleMustBeShortenedinOrdertoRemainCompetitiveInapanelpresentationtitled,“YouWantFasterFashion?You’reCloserThanYouThink:SourcingfromTheAmericas,”EdGribbin,PresidentofAlvanon,suggestedthatthereasonthatretailersarestrugglingandthattherehavebeenmorebankruptciesin2017thansincetheglobalfinancialcrisis,isthattheproductdevelopmentcycleisbroken.Today’sprocurementprocesshaschangedbasedonconsumershifts;consumersaretechnology-drivenandunpredictable,andassoonasatrendhits,theywanttobeabletopurchaseitimmediately.Today,retailersareoperatingonacycletryingtopredictwhataconsumerwantstobuy18monthsfromtoday,whereasaresponsivesupplychaincanrespondwithin2–3weekstocapturethatdesire.
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
Source:FGRT
Gribbindescribedfast-fashionretailerZara’svalueproposition,whichisnewnessandscarcity;onceitsproductisgonefromthestores,itisgone.GribbinhighlightedasurveyperformedbytheNPDGroupthatfoundthattheaverageshopperthatisbrandloyalvisitsthestore4.1timesperyear,whereastheaverageZarashoppervisitsaZarastore17timesperyearbecausetheyareafraidtheyaregoingtomisssomething.AccordingtoGribbin,65%ofZara’sproductionisbasedonproximity—allofitsproductscanbedeliveredfromthefactorybyairwithinonedaytoanyofits4,400stores.Zarahasthehighestinventoryturninthebusiness,andGribbinemphasizedthattakingalessonandshorteningthefront-endtimeacompanytakes“fromdesigntoontheback”willsavemoneyonmarkdownsinthelongrun.
Retailerswillhavetotransformthemselvesinordertobecompetitive.SteveHawkins,SVPofAmericanTextile&ApparelofGrupoKarim’ssaidthatreducingturnaroundtimestakesalotofcollaborationandcommunicationbetweentheretailersandfactoriesbecausethefactorieshavetoplanforequipment,staffingandoverallinfrastructureneeds.
8.ChinaIsNoLongeraOne-StopShopforSourcing;ThingsareMoreComplicatedNowApparelretailershavedecreasedtheirrelianceonChinaandincreasedtheirrelianceonotherpartsofAsiaformanufacturing.TherearefourchallengesintheChinabusinessenvironmentthataremakingsourcingmoreexpensive,accordingtoaPwCstudy:
1) Wageincreases:WageratesinChinaare2x–8xhigherthaninSoutheastAsia.Therehavebeenincreasesofapproximately8%inrecentyears,andgovernmentpoliciesconcerningminimumwageandsocialwelfarearebecomingstronger.
2) Realestateappreciation:Realestatevaluationshaveincreasedinthepastdecade,withrentalratesrisingasmuchas11%yearoveryear.
3) Renminbiappreciation:TheChinesecurrencyhasappreciatedbyapproximately25%relativetotheUSdollarinthepast10years.
4) Stricterenvironmentalregulations:Weareseeingincreasedgovernmentalregulationsbeingimposedonhigh-pollutionindustries.
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
TheresultofthesefourchallengesisthatthecostofsourcingfromChinaisgoingup.WeareseeingfashionmanufacturingmovingoutofChinatoSoutheastAsiancountries,includingThailand,VietnamandIndonesia.AccordingtoKlein,manufacturersarefollowinglowerwagesandloweroperatingcosts.ThechallengesthatneedtobeovercomebymovingoutofChinaincludelowerworkerproductivity,underdevelopedinfrastructureandculturaldifferences.Thefigurebelowwasbasedona2015benchmarkingsurveybytheUnitedStatesFashionIndustryAssociation(USFIS),whichshowsthetrendofretailersdecreasedrelianceonChinaandincreasedsourcingfromotherpartsofAsia.
9.TheGo-ToSourcingDestination:VietnamContinuestoLureUSFirmsThepanelistsincludedDr.ShengLu,AssistantProfessorfromtheDepartmentofFashionandApparelStudiesattheUniversityofDelaware;AvedisSeferian,PresidentandCEOofWorldwideResponsibleAccreditedProduction(WRAP);StevenDiBlasi,VPofGlobalSourcingforLanierClothes;andChrisWalker,ApparelProductionAdvisor/AuthorandVietnamGarmentInsider.
Source:FGRT
1. Vietnamisthesecond-most-usedsourcingbase,behindChina.However,Vietnamhasbecomeincreasinglyimportantoverthepast10years.Retailerscontinuetofocusonadiversifiedsourcingbasemodelinordertodiversifyrisk.
2. The“new”sourcingmodelisonewhereretailersuseChinaforthemajorityoftheirsourcingportfolio,typically30%–50%,Vietnamfor10%–20%,and“manycountries”fortherest,witheachcountryatunder10%each.
3. VietnamisverybalancedandoneofthemostcompetitiveAsiancountriesintermsof:i)speedtomarket;ii)sourcingcosts;andiii)compliance.
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
4. Vietnamremainsarisingstar,butUSfashioncompaniesaremorecautiousaboutthecountry’sgrowthpotential.Thisisduetotwoprimaryfactors:growinglaborcostsandthedefeatoftheTrans-PacificPartnershipagreement(TPP).
FactoriesinChinawillcontinuetoholdtheNo.1spot,dueto:i)speedtomarket;ii)capacity;andiii)theirverticalnature.
ReasonstobeinVietnam1. Compliance
2. Machineryinvestment
3. English-speakingmanagement
4. Pro-businessculture
5. Experienceingloballogistics
6. Vietnamhasmadeacommitmenttothetextileindustry;itiseasytogetinandout
7. Environmentalcontrols
8. Factoriesaremovingfromcitiestoruralareastoreducewagesandturnover
9. Increasinglyverticallyintegrated
ReasonsNottoBeinVietnam1. CompetitionforworkersfromSamsung,LG,Panasonic
2. Minimumwageincreasesofapproximately8%–10%(6.5%in2018);thepotentialtoincreasesocialwelfarepayments(thisisat24%)
3. RawmaterialsstillimportedfromChina,althoughmoreavailableinthecountry
4. Lackofmillsanddyeinghouses
5. Nofree-tradeagreementwiththeUS
6. Thefree-tradeagreementwiththeEUreducestheneedtosupplytheUS
10.CommentstheFGRTTeamPickedUpWhileAttendingSeminarsandMeetingsatMagic2017(SortedAlphabeticallybyCategory)
Apparel• “Thereisahugeopportunityindressyathleisurewear.”
• “HowdowethinkaboutthemoveofNiketoAmazon?”
• “WewanttoworkwiththesupplierthatsuppliesAmazon(privatelabel).”
Consumers• “Weareusingabarbellstrategywithourcustomers.TheyareeitheraVVIP
(i.e.,veryVIP)orweletthemservethemselves.Itisdrivingthetoplineandmargins.”
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
• “Consumershavemoneytospend—wejusthavetomakeiteasyforthem.”
• “HowaboutChineseconsumersshoppingintheUS(fromChina)?Howdoweservethembetter?”
• “Wheredowegetthebestbangforourmarketingbuck?”
• “ThinkabouttheBonobosin-storeexperience—howcanretailadoptmoreofthat?”
E-Commerce• “Anonlineexperienceinthestoreiswhatconsumersdesire.”
• “Howdowedecreasereturns?”
• “Itisabigchangeintrendtopresentbyclassificationversusbrand.Presentingbyclassificationandbybrandisgettingdoubleexposure.”
• “Howdoweknowwhichinfluencerstopartnerwith?”
• “Incertaincategories,wearenowat30%–40%e-commerce.Ithasfarexceededourexpectations.”
Innovation• “Manyoftheseteststoresarestillretoolingatagreatexpense.”
Magic• “Ijustgotanewbuyer,”wasthemostfrustratingsentenceheardatMagic.
• “Iamtheanti-MarthaStewart.Weallhaveourimperfections,”saidonecelebrity!
RealEstate• “Shoppingcenterrealestateinvestmenttrusts(REIT)arejustgettingstartedin
turningthingsaround.”
Retail/PhysicalStores• “Whentheseretailersarecompingnegative5%eachyear,theirstoresare
actuallygetting5%biggereachyear.”
• “Whycan’tsomethingbedonewithalloftheemptyshopwindows?”
• “Weneedmoresee-now,buy-nowtodrivethetopline.”
• “Wethinkthereisstillalotofopportunityforpop-upstores.”
• “Whatpercentageofshoeswerenotondisplayandavailableforsale—Iaskedseverallargebrandswhentheyvisitedretailerstheyworkedwith.Theanswer:Atleast33%.”
• “Thereismoreopportunitytosupportretailersinthestockroomtodriveavailabilityofproduct.”
• “Thereisamovetoself-service,eveninhigh-enddepartmentstores.Theconsumerdoesnotseemtomind.”
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
• “Experientialretailisthefuture.”
Source:FGRT
Technology• “Mirrorsthatarepoweredbyartificialintelligence(AI)thatcanhelpyou
chooseyourwardrobeanddetermineyoursizearewhateveryretailer,brandandconsumerisstilldreamingofonalargescale.”
• “Weneedstandardsforshoppablevideobecausewhathappenswhenalloftheseappscomeoutatthesametimethatarenotcompatible?”
• “Thereisahugeopportunityforradio-frequencyidentification(RFID)infootwear.”
• “Beaconsarelessofafocus.”
• “Howcanwereallyuseaugmentedreality(AR)?”
• “Thefutureistrulyomnichannel.”
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
DeborahWeinswig,CPAManagingDirectorFGRTNewYork:917.655.6790HongKong:852.6119.1779China:[email protected],CFASeniorAnalyst
ErinSchmidtResearchAssociate
HongKong:2ndFloor,HongKongSpinnersIndustrialBuildingPhase1&2800CheungShaWanRoad,KowloonHongKongTel:85223004406London:242-246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988NewYork:1359Broadway,18thFloorNewYork,NY10018Tel:6468397017FungGlobalRetailTech.com