Uniqlo to increase prices as yen falls to 20-year low

Image: Uniqlo x Marni A weakened yen will see Japan’s Fast Retailing increase prices at Uniqlo. With added pressures from sourcing more expensive raw materials and other logistical issues, Uniqlo’s fall collection will see increases in some of its core items. Various newspapers reported the price of some fleece products rising to 2,990 yen (about 21 euros) in contrast to the 1,990 yen of the previous year. Staples including its men’s Ultra Light Down Jacket will be priced at 6,990 yen up from 5,990 yen; a women’s cashmere crewneck will rise to 9,990 yen from 8,990 yen. Currently the Japanese currency has fallen to a two-decade low against the dollar. Uniqlo, which previously increased the prices of some items, plans to improve the design and functions of its garments and then relaunch them towards the summer season, increasing their market value. In April Fast Retailing CEO Tadashi Yanai said raising prices was not easy due to the complicated economic situation and pressure on household spending. This news comes after a year of stellar growth for Uniqlo, which boosted Fast Retailing to close 2021 with revenue of 2,100 billion yen.
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Gap is launching a new credit card to booster loyalty, but who wants it?

Image: Gap x Mastercard Gap Inc is launching a new credit card partnership with Mastercard. It's a chic navy card, minimalist with degradé colour and a simple Gap logo. But the question is: who wants to take out a store credit card in 2022? The news comes as Gap only last year announced Barclays as its official card issuer. The fashion conglomerate, which also operates Old Navy, Banana Republic and Athleta, will migrate its current 10 million customers to its new suite of cards. Like most retailers offering credit options, the launch of Gap’s branded card is to boost its rewards programme. Here cardholders of its new Mastercard suite will earn 5 points for every 1 dollar spent on purchases spent at Gap’s brands and 1 point for every 1 dollar for purchases spent elsewhere. The rewards can be exchanged for perks like free shipping, member events, etc. “We are thrilled to partner with Gap Inc. and Mastercard to offer a suite of credit cards that elevates rewards and experiences for millions of loyal customers who love to shop at Old Navy, Gap, Banana Republic and Athleta,” said Bill Crabtree, Head of Retail Expansion, Barclays US Consumer Bank. “What’s more, through an annual contribution to Gap Inc.’s Do Good program, we are helping to strengthen communities through initiatives that empower and support women, youth, and the underserved to bolster our shared commitment to drive positive social change.” As a selling point, Gap’s credit cards will have a recycled card plastic core, which uses 33 percent ocean-bound plastic collected from areas within 25 miles of a waterway, the company said in a press release. Are branded credit cards lucrative for retailers? Many big brands and retailers have their own branded credit cards, from Apple to J. Crew, Brooks Brothers and Express. With digital payments the need for store cards has decidedly dwindled and today only one-third of adults aged 19-28 in the USA own a credit card. Millennials are the first generation to be very vocal of its antipathy to debt, making store cards seem a scheme from the past. The reason retailers offer branded cards is to boost customer loyalty and in turn shopping frequency at their stores. By making purchases and payments more seamless, however, retailers can build customer loyalty in other ways where a physical credit card is not the only option. In today's digital shopping landscape store cards are not e-commerce friendly and retailers must be transparent about card fees and the small print that comes with taking out credit. Often store cards come with high interest rates as credit checks are less vigorous, with the aim to sign up as many customers as possible, rather than focus on customers who are financially secure.
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Shein launches fund to help communities suffering from textile waste

Image: Shein The Chinese fashion group Shein has grown rapidly in Europe and the US in recent years, and with it the supply of inexpensive clothing churned out by the fast fashion chain has also grown. Shein has announced it has now entered into an agreement with The Or Foundation, a US and Ghana-based organisation that works to promote justice and sustainability in the garment industry. The Chinese fast-fashion giant has decided to set up the Extended Producer Responsibility (EPR) fund and is partnering with the foundation to do so, said Or co-founder Liz Ricketts at the Global Fashion Summit in Copenhagen on Tuesday. Over the next five years, Shein will pay 50 million dollars to the EPR fund to support communities suffering from the consequences of textile waste. The ‘Shein Fund’ will also contribute to the implementation of environmental and social sustainability strategies that focus on clothing that enters the global second-hand market and often ends up as waste, according to a joint statement made on Wednesday. Shein fights back against bad image Recently, the secretive group has come under increasing criticism for possible plagiarism and questions have been raised as to how sustainable the company is. Shein is working against the image with initiatives such as the fund and a new sustainable line. “Shein has set an ambitious goal and we are thrilled to partner with The Or Foundation, the first recipient of the groundbreaking Shein Fund, for the next step in our journey,” said Adam Whinston, global head of ESG at Shein. “Managing second-hand waste is an important part of the fashion ecosystem that is often overlooked. We have an opportunity to make a difference in this area and we look forward to working with The Or Foundation on this first of its kind project.” With the concept of extended producer responsibility, companies support the process that the product goes through when the customer has sorted it out – i.e. further processing or disposal – in financial or physical form. 15 million garments per week Ghana was the world’s largest importer of second-hand clothing in 2020, with a combined value of 182 million dollars, according to Ricketts. 15 million pieces of clothing per week end up in the Kantamanto market – the market in Accra is the largest site for resale by residents. 40 percent of these pieces, which are mainly shipped from the US and Europe, are not used and are disposed of. This puts a strain on the local communities. “Until we align EPRs with reality, we need brands that care and support communities like Kantamanto. There is one brand that has decided to do that,” Ricketts noted at the Copenhagen conference. The Or will receive five million dollars from the Shein Fund for each of the next three years and will use it to expand an educational programme for young women who carry bales of second-hand clothing on their heads and suffer from the heavy burden. It also aims to establish community businesses that turn textile waste into new products, pilot fibre recycling projects with Ghanaian textile manufacturers and make the Kantamanto market a safe and dignified place to work. This article originally appeared on FashionUnited.DE. Translation and edit by: Rachel Douglass.
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Bottega Veneta brings past collections back on sale

Image: Tasmin Blanchard, Kering CSO Marie-Claire Daveu and Bottega Veneta CEO Leo Rongone (from left to right) at Global Fashion Summit 2022, Photo by FashionUnited Report Italian fashion house Bottega Veneta has opened a new section on its website where products from past collections are once again available for sale. ‘Bottega Series’ was launched Tuesday, June 7, as reported by Leo Rongone, managing director of the Kering subsidiary, on Wednesday during the 2022 Global Fashion Summit in Copenhagen. Currently, the Cabat and Banana bag models are offered in three colours each. The archival pieces, the oldest of which is about three-years-old, will be updated monthly on the website and are available for the original price the product had at the initial launch of the collection, according to the Bottega Veneta boss. The pieces do not come as second-hand products from customers, as is often the case with similar concepts, but from the brand's own stock. "We are so excited about these products that we want to offer them to our customer’s with the drop principle," Rongone said. The strategy as a unique selling point To reintroduce past collections into the assortment without a price change is a rather atypical approach for a fashion house. However, the brand, which does not rely on striking logomania and whose braided handbags have become a trademark, stands out for its unusual and sometimes radical strategies. With former chief designer Daniel Lee, who left the label in November, came the “Bottega Green”. Not only did the colour grow from the fashion house's assortment to one of the most popular colours of the past year, it also graced various buildings and landmarks in major marketing campaigns - including the Great Wall of China. Bottega Veneta also attracted attention in the German capital last year, when, following the brand’s fashion show, a party was said to have taken place, which did not go hand in hand with the covid-19 rules at the time. However, on social media Bottega Veneta decided to pull out completely, deleting all of its social media channels. Instead, it launched its own digital magazine. Overall, Bottega Veneta has been a bit quieter following the designer changeover, but the label still seems to have an idea or two in its bag of tricks with CEO Rongone. This article originally appeared on FashionUnited.DE. Translation and edit by: Rachel Douglass.
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Drest launches partnership with Josh Wood

Image: Drest Luxury mobile fashion game Drest has announced an exclusive beauty collaboration with global hair colour expert Josh Wood to lead all hair colour direction within the styling app. As part of the partnership, Wood will be Drest’s permanent hair colour expert, working with the game’s in-house avatar team to bring “a new level of fashion authenticity to Drest’s market-leading beauty offering”. Wood has designed three new and exclusive colourful hair looks inspired by his work with Miu Miu and Marc Jacobs, which have been reviewed by experts from the Fashion Minority Alliance to ensure all hair types are accurately represented. Additionally, Drest players will also have the opportunity to win real-life prizes when taking part in dedicated hair colour challenges, including a digital colour consultation with Wood himself and bespoke Josh Wood hair colour product hampers. Lucy Yeomans founder, co-chair and chief brand and product officer at Drest, said in a statement: “Josh is one of the beauty and fashion industry’s most in-demand experts, known for creating beautiful, stand-out, high-fashion colour looks on both the runway and red carpet. I am thrilled that he has joined Drest this June to give our players access to his expertise and his elevated runway styles so they can discover the power of hair colour and its ability to transform a beauty or fashion look. “Our goal in Drest is to create a styling experience that makes our players feel as though they are collaborating with the very best in the fashion and beauty industry. With Josh adding his colour expertise to Mary Greenwell’s makeup and Sam McKnight’s hair styling, as well as our 5 world-renowned supermodels, Drest stylists really do have the best fashion world talent at their fingertips." This new beauty collaboration follows the launch of Drest beauty mode in 2021, a hyper-realistic 2D close-up gameplay feature that enables players to showcase their make-up-artistry skills and explore their creativity with cosmetics on Drest’s model avatars. Drest x Josh Wood limited and exclusive hairstyles run until June 30.
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Educational resources and meaningful connections: how Asos is attracting Gen Z

Image: Asos Gen Z is more diverse, better educated and far more digitally savvy than any generation before. Born between 1995 and 2010, they make up almost 30 percent of the world’s population. For online retailers like Asos, the fashion-loving, 20-somethings age group already accounts for half of their target audience and will completely overtake Millennials in the future. “We need to understand this new generation if we want to be successful and grow in the future as a business,” said Sandra Kampmann, director of insight and analytics at Asos, during a panel discussion on how to adapt brands for the Gen Z market at Shoptalk Europe on Tuesday. Going through the shift from Millennials to Gen Z is something the retailer has been actively working on for the last couple of years. “It used to be about finding the customers, bringing them to the site, servicing them. You used to win with things like delivery options and payment options that would give you a competitive advantage,” Kampmann continued in conversation with the president of consulting company January Digital, Sarah Engel. “Now, obviously none of that does the job anymore. It's really about the emotional connection.” While Millenials had very few access points to fashion through magazines or TV, Gen Z is getting inspiration from everywhere. “Whether it's taking a picture of strangers or screenshotting Instagram, all these things are coming out from both qualitative and quantitative research. And so you need to find these different access points,” explained Kampmann. A lot of these access spaces are taken up by social media, allowing companies to reach and target their customer group 24/7 anywhere, at any time. “Every Gen Z that I know has more social media followers than I think I have met humans in my entire life,” joked Kampmann. “So then it’s already clear, this is a channel that we need to be present on.” Morphing shopping and social media “What this is creating is a demand for almost the morphing of a shopping experience and a social media experience,” explained Kampmann. By incorporating social media-like features on its website, such as ‘Buy the look’ or ‘You might also like’ suggestions or allowing users to upload inspiring photos and share their wish list with friends, Asos is already successfully connecting the two spaces. The retailer also collaborates with influencers, who serve as a great means to connect with its audience. “What this generation and social media influencers allow is that we find role models that actually apply to us – so all shapes and sizes, no matter what you look like. The internet and social media really allow that connection,” Kampmann said. According to her, Gen Z uses influencers not only for inspiration but also to see what looks good on them as well as to feel good about themselves and what they buy. “We're about to launch a nano influencer network, specifically in the US,” Kampmann announced. “It is truly exciting, this is essentially tapping into our customer base. There are already people who are loyal to Asos – they have a few thousand followers – and they create that connection between us and the consumers.” Emerging social media platforms such as TikTok cannot be ignored when attempting to successfully attract Gen Z, as they offer unique ways to engage with a brand’s community. For Black Friday 2021, Asos created the ‘#AsosAlterEgo’ campaign, challenging users to show off their best and scariest transformations over Halloween to promote its line of face and body products. The retailer tapped into different ad formats and solutions that TikTok has to offer, such as a custom ‘Branded Effect’ TikTokers could use for their challenge to stand out. By working with professional creators and sparking engagement, Asos managed to achieve a 219 percent increase in relevant engagements as well as a 7.8 percent increase in brand awareness, according to TikTok for Business. “There was this massive hype which allowed people to be part of the experience which is a really big deal,” Kampmann concluded. Asos’ director of insight and analytics saw one more opportunity in attracting Gen Z that could transform the whole brand image. According to Kampmann, the group starts very early on in the creation of their own paths in life and they’re seeking our educational sources, far beyond what would be considered traditional. “I think companies have an opportunity here to take a stance when creating their own strategies in the space and use their platforms to educate and share their knowledge, their research, and what they're learning. They will definitely tap into a large proportion of this generation, the ones that are seeking out the information and the education,” she explained. Shoptalk Europe 2022 takes place in London between 6-8 June and brings together more than 3,000 attendees from more than 70 countries. Keep an eye on further coverage of the event from FashionUnited here.
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The RealReal founder Julie Wainwright steps down as CEO and chair

Image: The RealReal Luxury resale platform The RealReal has announced its founder Julie Wainwright has decided to step down from her role as CEO and chair after 11 years at the company’s helm. She said in a statement: “I am deeply proud of the company we have built and am honored to have worked with a team that champions our founding vision of creating a more sustainable future for fashion.” Wainwright founded The RealReal in 2011 from her home in San Francisco. The company, which found itself at the forefront of the burgeoning second-hand fashion industry in recent years, went public in 2019. Road back to profitability But the company has faced challenges recently. Last year, it reported a widening net loss of 236 million dollars, up from 176 million dollars a year earlier. In May, it posted a first-quarter loss of 57 million dollars, compared to a loss of 56 million dollars in the prior year period. That was despite a 48 percent increase in revenue to 147 million dollars. But Wainwright said Tuesday that The RealReal “continues to make progress on its path to profitability” and she feels it is “the right time for the next generation of leadership to guide the company through its next chapter”. President and chief operating officer Rati Sahi Levesque, along with chief financial officer Robert Julian, will step in as co-interim chief executive officers while a search for a permanent chief executive takes place. Outgoing chief Wainwright will stay at the company in an advisory role until the end of 2022 to “ensure a seamless transition”. Today, The RealReal has more than 27 million members, with 19 retail locations worldwide.
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