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    The Service Life Of Fashion Products Is Constantly Extending.

    2019/1/8 15:09:00 125

    FashionLuxury BrandMarket

    With the development of second-hand, renovation, maintenance and leasing business models,

    fashion

    The service life of products has also been continuously extended.

    For many categories of products, consumers have shown strong interest in pforming from traditional product ownership to updated product acquisition.

    According to the world clothing and shoe net, in the fashion industry, because of the growing demand for diversity, sustainability and affordability, the process has been speeded up, and news shows that, for example, the scale of resale market in ten years may be over fast.

    Aware of this shift in consumption, start-ups will not be the only winners in such market segmentation. Well-known fashion brands will accelerate their pace and adopt new ownership patterns to further enhance their relationship with consumers.

    In more and more product categories, consumers prefer the leasing mode to their own products directly.

    Think of it, Spotify takes the place of CD's sales and downloads, and Netflix takes the place of speakers' stores. In big cities, many young people choose ZipCar instead of owning their own cars.

    This is a fundamental evolution of consumer behavior, and we expect that it will have an impact on the fashion industry in the coming years.

    This trend is partly due to the desire of the younger generation for new things and the recognition of sustainability at the same time.

    Research shows that compared with fifteen years ago, today's average clothing purchases increased by 60%.

    But consumers spend only half of their clothing time in the past.

    For example, a survey conducted in Britain found that 1/3 of young women thought they were "old" after one or two times of wearing clothes.

    1/7 of the respondents said they were two times wearing pictures of the same clothes and ignoring fashion.

    In short, today's young people are hungry for freshness, and this group of people is more receptive to the renewal of wardrobes.

    At the same time, compared with older consumers, the younger generation shows more interest in sustainable clothing.

    Leasing, resale and refurbishment extend the life cycle of products and satisfy consumers' need for freshness.

    Meanwhile,

    Luxury brand

    The price is rising substantially.

    Since 2005, the price of boutique watches and jewellery has almost doubled.

    Tracking the global price of Louis Vuitton Speedy 30 handbags can be found that the price of the bag has increased by about 19% a year since 2016.

    Therefore, even six digit income consumers want to get a discount and a more preferential purchase substitution mode.

    These demands are driving the success of the leasing and secondhand mode.

    We anticipate these

    market

    Practitioners are able to satisfy consumers' keen desire for freshness and increasing non availability, and make them the focus of attention in 2019.

    For example, luxury consumers can avoid the price increase of Speedy 30 packages through The RealReal.

    The RealReal, founded in 2011, has enjoyed a valuation of US $450 million in assets as of May 2018.

    It sells high quality second hand luxury goods through consignment mode, known as top fashion brands, with a discount of up to 90%.

    The RealReal has recently completed its $115 million G round of financing and plans to expand its entity business in the US.

    China's Ycloset clothing two or three has taken another way, using subscription leasing mode to provide customers with a range of clothing and clothing permissions without additional charges.

    If customers like specific products, they can choose to buy them directly.

    Although famous brands have always ignored or belittled the second-hand retail industry, they are now gradually involved in second-hand and rental markets.

    For example, Stella McCartney established a partnership with The RealReal in 2017 to provide consumers with $100 coupons to consign its products on the platform.

    In this way, we can create a flow cycle, encourage the growth of Stella McCartney, and also establish the confidence of consumers in the quality and life of Stella McCartney products.

    In addition, the circular nature of this cooperative relationship also enhances the social and corporate responsibility of fashion brands.

    Other luxury goods practitioners, such as Richemont, have directly bought resale or leasing business to control their product and brand marketing status in the two tier market.

    Some practitioners use the sustainability of their products to enter the refurbishing market.

    Eileen Fisher, through its "new life" plan, reclaims slightly damaged products, renovates or adds materials to make new products.

    Patagonia has become a pioneer of refurbishment and resale mode by repurchasing its own product and selling it at a discount price.

    "The best thing we can do for this planet is to make our clothes wear longer and reduce consumption," Patagonia said on its official website.

    Express hopes to place it on the rental market and launch the "Express style trial", allowing consumers to rent up to three products at a specific time in a monthly fee.

    In an interview with CNBC, Express's chief customer experience officer, Jim Hilt, said, "consumers are more interested in the right to use than ownership. Now this is happening in many industries.

    We look at this trend and ask ourselves, "how should we participate?" in New York, the French brand Ba&sh launched weekend free rentals as part of the North American expansion strategy.

    Looking ahead to the new year, we expect three aspects of development to shine in 2019.

    First of all, the number of brands involved in leasing, resale and refurbishment will increase significantly. Through the new collaboration mode with retailers or start-ups in related industries, well-known enterprises will gradually consider the substitution of ownership as the force they need to accept, or at least the power needed for trial.

    This requires careful business model thinking and a clear choice between cooperative relationships, internal development or mergers and acquisitions.

    Secondly, we expect that the number of "local leasing" brands that will be built specifically for renting or subscription modes will increase significantly.

    We also expect that there will soon be unicorns in this field.

    Finally, more and more consumers will find their wardrobe occupied by second-hand or rental products, especially expensive clothing and accessories.

    Although traditional practitioners need not worry too much, it is still necessary to fully understand the new signs that consumers prefer to own and lease.

    More interesting reports, please pay attention to the world clothing shoes and hats net.


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