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2019 highlights: The year in innovation news

2019 was a big year for innovation and the Current Daily has been tracking it all throughout – from the rise of 5G-enabled experiences to the continued push towards a circular economy. 

Here, we highlight some of the most interesting stories from the year, outlining why they are an important indication of where the industry is moving in 2020 and beyond.

5G will drive 100m people to shop in AR

Augmented reality took center stage this year as its user-friendly features meant a growing number of brands – and social media platforms like Instagram – started adopting it as a core engagement strategy.

In April, a Gartner report highlighted that 100 million people will shop in AR once high-speed 5G mobile services roll out more extensively. This means the experience is going to be more seamless than ever, giving it better real-time rendering, shorter download times and reduced latency. Retailers seem to be on board, as 46% of them plan to deploy either AR or VR. Check out our piece exploring what other benefits 5G will bring retail.

Fashion brands have only met 21% of their circularity targets for 2020

If there’s one thing to be sure, there’s no escaping the growing momentum around shifting to more sustainable practices as an industry. But is there really progress being made? In July, the Global Fashion Agenda (GFA) launched its second yearly assessment of fashion brands and retailers to find that only reached 45 (21%) of the 213 targets the industry has set for 2020 will be met. 

This means the 90 signatories of the GFA’s 2020 Circular Fashion System Commitment, which includes fashion companies like adidas, PVH Group and Inditex, will have to hurry if they want to achieve more in the next year. We talked a lot about the need for action in this space when a further collaborative group was announced: the G7 Fashion Pact. If you ask us, it’s time to say enough to the pledges, rather give us some tangible outputs.

H&M to trial clothing rental for the first time

Talking of sustainability, one are where we have seen a lot of action and experimentation this year is in new business models. Rental is making serious strides at all ends of the market, but perhaps most interestingly within fast fashion just recently as the H&M Group announced it will trial clothing rental at one of its H&M Stockholm stores. Members of its customer loyalty program can now rent selected party dresses and skirts from its 2012-2019 Conscious Exclusive collections.

Recently, its brand COS also launched a pilot where it is renting out clothes through Chinese subscription rental platform YCloset, which customers can access through a monthly flat rate. We also published a deep-dive into the different opportunities we see for the industry in rental, here.

Allbirds CEO calls out Amazon product copying

In November, Allbirds’ co-founder and CEO, Joey Zwilinger, wrote an open letter to Amazon’s Jeff Bezos after discovering the e-commerce platform was producing its own wool sneakers similar to the brand’s most popular style.

Instead of going the usual lawsuit route, the founder took this as an opportunity to highlight his brand’s sustainability mission. In the letter, Zwilinger highlights that Allbirds’ sustainable philosophy is open source, and it has thus far helped over 100 brands who were interested in implementing its renewable materials into their products, suggesting Amazon might like to do the same. It was a bold move but one that sparked a conversation around the role of collaboration once more, and its critical place in true innovation.

Gen Z loves TikTok. Can fashion brands learn to love it too?

Gen Z quickly adopted Chinese social media platform TikTok as their app du jour this year for its bite-sized video content. Currently, 66% of the platform’s 500 million global users are under 30, according to data analytics firm, Business of Apps.

Brands have started to follow suit, tapping the app to drive engagement and ultimately sales. Content varies from crowdsourced, as in a recent Burberry campaign that saw users challenged to create the brand’s logo with their fingers, through to more refined, such as in a snippet of an interview with singer Shawn Mendes for Calvin Klein. We explored various other brands setting TikTok precedent, here.

Lush abandons social media

While TikTok has been taking off, elsewhere social media is slowing for some. Vegan cosmetics brand, Lush, for instance decided to shut down all of its activity in the UK as it became “tired of fighting with algorithms” or paying to appear on news feeds. Instead, it suggested a hashtag where fans would still be able to speak to the brand.

Lush’s bold move speaks to fight playing out for anything still resembling organic reach. As consumers become jaded over being ‘sold to’, brands are having to find novel ways to reach them, beyond the influencer route. One other area we’re tracking here is those owning their own conversation channels, as with both Glossier and H&M of late.

Coty acquires majority stake in Kylie Jenner’s beauty business

2019 was the year of major acquisitions in both beauty and fashion. While LVMH recently announced it was snapping up Tiffany & Co for $16bn, other names included Farfetch buying New Guards Group, which operates streetwear favorite Off White for $675m; Shiseido acquiring cult skincare brand Drunk Elephant for $845m; and more recently, Coty acquiring a majority stake in Kylie Jenner’s beauty business, Kylie Cosmetics, for $600m. 

The latter served as particular confirmation of how brands build and grow in this day and age. Jenner, who was 18 when she started a single ‘lip kit’ line, used Instagram to form a direct conversation with her audience. In 2019, this seems like an obvious strategy, but the reality star’s foresight to do so in 2015 has undoubtedly been her recipe for success.

How luxury fashion learned to love the blockchain

Amid growing concerns over the proliferation of counterfeit goods, luxury brands also began to embrace blockchain as an important authentication tool this year. 

Earlier this year, we heard about how LVMH launched its own platform, Aura, which is currently being piloted with some of the brands in its portfolio and will further expand in the future. Kering and Richemont meanwhile are said to be exploring this too, while De Beers is using it to trace its diamonds. Once matured, the technology will undoubtedly make its way into the hands of the consumer, who will be able to better understand where their possessions are coming from. We also tracked some of the other innovations in the transparency space; an area that continues to heat up.

Automation in retail: an executive overview for getting ready

Automation was another big tech focus this year, particularly for its potential impact on retail, from supply chain management to last mile delivery. This shift is putting pressure on retailers to rethink their operating models, distribution centres and headquarters, with McKinsey warning that brands that fail to implement it into their strategy risk falling behind. 

Automation is something we’ve long been talking about for the sake of efficiency, but there also comes a significant ethics conversation to be had here, which the industry is exploring. We agree, now is the time.

What Fortnite could mean for fashion

The global gaming market is expected to reach $180bn by 2021, and fashion brands are realizing the valuable potential in this. Free-to-play video game Fortnite has grown into a multi-million dollar business by selling clothing to image-conscious gamers, for instance. This monetization of player aesthetics, more commonly known as ‘skins’, has opened the door for retailers to cash in on the virtual world. 

Going forward, we expect more brands to invest in digital garments or utilize gaming to drive product discovery. We accordingly explored how gamification is being used in the shopping journey by brands like Kenzo and Nike to both increase engagement and build brand loyalty.

How are you thinking about innovation? The Current Global is a transformation consultancy driving growth within fashion, luxury and retail. Our mission is to solve challenges and facilitate change. We are thinkers and builders delivering innovative solutions and experiences. Get in touch to learn more.

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From holograms to responsible packaging: 10 must-read retail innovation lists

This year has seen continued breakthroughs in retail innovation, with brands exploring new ways to interact with consumers, whether that’s through the physical store, virtual spaces, or new touchpoints like vending machines. 

2019 has also been an impressive year for sustainable innovations, with everything from creative store design and technological transparency, to responsible packaging solutions and the rise of rentals.

Here, we reflect on 10 of our must-read retail innovation articles from the year.

8 brands deploying vending machines as smart retail solutions
Mulberry x Current Global Vending Machine

Artificial intelligence, social media buzz and customer acquisition tools are just a few of the strategies behind vending machines being used as a key part of today’s retail experience. In this story we explore how the technology has been applied to brands including Mulberry and Adidas.

4 technologies aiding in-store navigation
Gatwick’s in-app navigation

Big box retailers including Walmart’s Sam’s Club, Home Depot, Lowe’s and Target are using a variety of interesting wayfinding technologies to improve customer navigation inside the physical store. This piece dives into the role of innovation for more efficient customer journeys.

5 brands pushing conversions through virtual storefronts
Lego’s AR-activated experience

Brands including Macy’s and Lego are using virtual experiences in physical locations to provide shoppers with the benefit of an interactive in-person experience without needing to carry inventory. Here, we look at how these “invisible” or augmented reality storefronts are driving sales, collecting data and boosting branding efforts.

7 ways fashion brands are harnessing hologram technology
Alexander McQueen’s hologram show

The fashion industry has been experimenting with holograms for some time, using them as both elaborate marketing techniques, as well as more immersive in-store opportunities aiming to drive brand engagement. In this piece, we take a look back at some of the best use cases from the likes of Alexander McQueen and Ralph Lauren.

9 brands pushing sustainable store design
Ganni’s sustainably designed store

With sustainability an increasing priority on the agenda for fashion and retail businesses around the globe today, attention is also turning to their brick-and-mortar stores – how they’re resourced, designed and constructed. Here we explore how the likes of Stella McCartney through to Ikea are approaching it.

4 innovative retail fulfilment methods to know
Ford’s delivery robot

With the on-demand economy continuing to fuel consumer desire for instant gratification, innovation in delivery continues to rise, from crowdsourcing to the latest in robotics. Explore how tech solutions are shaping efficiency in the last mile, here.

7 brands regaining consumer trust through transparency
‘I made you clothes’ campaign

Enabling transparency is a key focus for fashion businesses today, but with rising concerns of greenwashing – from misleading PR-led campaigns to the increase of fake news – consumer trust is at an all-time low. As a result, brands are having to work harder than ever to prove their authenticity in the matter.

5 brands using gamification to drive shopping
Nike’s React Land game

Brands and retailers are jumping on the growth of the gaming market and increasingly using ‘play’ mechanics as a way to encourage shopping. Here we dive into why gamification is estimated to be a $40bn market by 2024 and explore those making the most of it already.

4 effective ways brands are tapping into the rental market
Ba&sh’s NY store

The rental market boom is sending a clear signal to brands struggling to survive in the current retail climate: it is time to adapt to changing purchase behaviors, or risk losing market share. In this piece we look at the varying benefits of stepping into this space, from sustainability to data capturing.

8 brands turning to responsible packaging solutions
Toad&Co partnered with LimeLoop

The rapid rise of the e-commerce era has seen an equally colossal increase in plastic packaging used by brands around the world, something those at the forefront of sustainability are now looking to change. Check out some of the best alternatives introduced by the likes of PVH to MatchesFashion.com.

How are you thinking about innovation? The Current Global is a transformation consultancy driving growth within fashion, luxury and retail. Our mission is to solve challenges and facilitate change. We are thinkers and builders delivering innovative solutions and experiences. Get in touch to learn more.