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business Podcast product Retail

Stadium Goods: Riding the sneaker culture boom

The success of Stadium Goods comes off the back of unprecedented consumer desire for sneakers and the need for a rich brand experience in which to buy them, says the platform’s co-founder and co-CEO, John McPheters, on the latest episode of the Innovators podcast. 

“For me the light bulb was that demand had never been higher. It was continuously growing, there were more and more people that wanted to buy our products, but there wasn’t a rich experience that consumers could go to to buy that stuff that was trusted, where they knew what they were getting, where they could really hang their hat on the brand experience and the presentation.” he explains.  

As a result he and his partner, Jed Stiller, set about creating a site that is focused on consignment – meaning it resells existing sneaker stock as well as broader streetwear – but it only does so with unworn and authentic styles. That focus on trust is the key, he says.  

Only launched in 2015, the site was acquired by ecommerce marketplace Farfetch in 2018 for $250 million. Very few emerging businesses have seen such rapid growth. It’s now considered such a market leader, it recently announced a partnership with auction house Sotheby’s to sell 100 of the rarest, most coveted sneakers ever produced.  

The site’s explosion aligns with the growth of sneaker culture worldwide. Expected to hit nearly $100bn in global sales by 2024, sneakers are outpacing much of the rest of the industry, including that of handbags. As a result, they have become the new ‘cash cow’ and awareness driver for all manner of brands, not least those in the luxury space, where such products are used as entry to otherwise more aspirational price points. 

In all parts of the market this has resulted in ‘cult’ or ‘it’ sneakers to own as a result. A rare pair of Nikes today can easily sell for as much as those from Gucci or Balenciaga as a result. This means it’s increasingly a race, with some limited edition styles going for $10,000 or more. 

Co-Founder & CEO, Current Global, Liz Bacelar and Co-Founder & Co-CEO, Stadium Goods, John McPheters

In this episode, recorded live at the British Fashion Council’s annual Fashion Forum, we chat to founder John McPheters about the cultural relevance of such products, the evolving role of exclusivity and desire in luxury today, and just how what he’s doing is really about teaching the industry to give up control.

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Catch up with all of our episodes of the Innovators podcast by the Current Global here. The series is a weekly conversation with visionaries, executives and entrepreneurs. It’s backed by the Current Global, a consultancy transforming how consumer retail brands intersect with technology. We deliver innovative integrations and experiences, powered by a network of top technologies and startups. Get in touch to learn more. 

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Editor's pick Events sustainability technology

BFC and Current Global host leadership event focused on industry growth

The British Fashion Council’s annual Fashion Forum curated and produced with Current Global, extended to two days this year with a focus on “Investing in the Future”.

A think tank dedicated to industry leaders from fashion, investment and technology, it invited experts to share knowledge and debate subjects ranging from business and growth, to sustainability and inclusivity.

Attendees also got to experience some of the latest innovations in the market up close, thanks to an innovation showcase pulled together by Current Global. This included some of the world’s best tech companies carefully selected for their focus on areas such as customer service, personalization, supply chain, traceability, AI, augmented reality and more.

The on-stage program was designed to both inspire and inform the audience, with sessions geared to key subjects such as driving efficiency in the supply chain, how new business models are affecting culture, the role of data and experience in retail, designing for circularity, creating a fair supply chain and more.

One of the keynotes of the event came from John McPheters, co-founder of Stadium Goods. In a fireside chat with Current Global’s Liz Bacelar, he spoke about how he grew his sneaker and streetwear marketplace to its successful acquisition by Farfetch in 2018. Current Global’s Rachel Arthur also hosted a keynote with Jo Malone about her experience growing global brands, including her latest, Jo Loves.

Victor Luis, CEO of Tapestry, opened day one talking to his role at the US luxury group, while Emma Grede, founder and CEO of Good American brought the topic of entrepreneurship to size inclusivity and Roland Mouret honed in on his sustainability journey.

Rachel Arthur of Current Global at the British Fashion Council’s annual Fashion Forum
Rachel Arthur of Current Global at the British Fashion Council’s annual Fashion Forum

Arthur also took to the stage to discuss investing in innovation. She broke down the evolution of big tech and what it means for brands today, including a deep-dive on how it is blending and bending our perception of reality, the role of data within the balance of experience and privacy, and where brand activism is stepping in over pure brand management.

Other key speakers at the event came from brands including Burberry, Rapha, Lululemon, Rixo, Timberland, Kering, Levi Strauss & Co, Lyst and more.

Christopher Wylie, director of research at H&M, and Tom Berry, director of sustainable business at Farfetch, joined Bacelar for a panel on how technology will shape the future of sustainability, covering topics from predictive analytics and AI to new business models. Another conversation focused on Google’s work in the sustainability space with Current Global. Ian Pattison and Maria McClay of Google both joined Arthur alongside Claire Bergkamp, sustainability and innovation director at Stella McCartney, to talk about the data analytics and machine learning tool powered by Google Cloud technology they are currently building.

Gwyneth Paltrow closed the event in a conversation with British Vogue’s editor in chief Edward Enninful. She shared lessons from her entrepreneurial journey launching Goop, the successful lifestyle brand she founded in her kitchen in 2008.

Edward Enninful and Gwyneth Paltrow in conversation at the British Fashion Council’s annual Fashion Forum
Edward Enninful and Gwyneth Paltrow in conversation at the British Fashion Council’s annual Fashion Forum

Throughout the event, our Innovators podcast team was also onsite, recording upcoming episodes with experts including Adam Brown, founder of Orlebar Brown; Nicolaj Reffstrup, founder of Ganni; John McPheters, co-founder of Stadium Goods; and designer Roland Mouret. Stay tuned for the first of our new series in July.

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How are you thinking about innovation? We’re all about helping you build innovative integrations and experiences. The Current Global is a consultancy transforming how fashion, beauty and consumer retail brands intersect with technology, powered by a network of top startups. Get in touch to learn more

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e-commerce Editor's pick Retail sustainability

3 ways brands are experimenting with the resale market

From partnering with resale websites to facilitating consignment selling, brands are increasingly exploring ways to be more involved with their products as they continue through their lifecycles.

Part exercise in brand control and part push for more sustainable consumer habits, the move is of course also an enormous opportunity for extended revenue streams.

The secondhand market is projected to double in value over the next five years, skyrocketing from $24bn to $51bn, according to a report from resale site, thredUP.

We’re also seeing heavy investment in the resale space as a result. Foot Locker just put in $100m into GOAT, while Farfetch recently acquired Stadium Goods for $250 million. There’s also a round of funding coming up for sneaker marketplace StockX, which will turn the company into the first sneaker reseller valued at $1bn, according to Recode.

Here are three ways brands are otherwise experimenting with and promoting the resale market:

1. PARTNERING WITH RESALE WEBSITES

Starting this April, & Other Stories started selling pre-owned garments. The project was created in partnership with second-hand platform Sellpy, which manages and operates its sales. When clicking on the new “pre-loved” section on the & Other Stories’ website, clients are redirected to sellpy.se. For now, the service is only available in Sweden.

“We’re exploring different ideas on how our long-lasting designs can find their way to new owners. With that in mind, we decided to do a small second-hand test project with Sellpy,” explained Sanna Lindberg, managing director of & Other Stories.

Stella McCartney made history last year as the first luxury brand to promote the consignment of its products on The RealReal. Anyone selling Stella McCartney products on the platform receives a $100 voucher valid at any of the brand’s stores or via its website.

2. DRIVING RESALE SELLING AND BUYING THROUGH STORES

Neiman Marcus recently invested in Fashionphile, a high-end consignment boutique. It has plans to have Fashionphile drop-off locations inside select stores, allowing shoppers to get paid right away for their pre-owned items. For now, Fashionphile is offering an increased buyout price for those who opt to receive payment as a credit at Neiman Marcus.

Meanwhile, just last month, Galeries Lafayette introduced a second-hand fashion platform called Le Good Dressing, which combines online shopping with an in-store experience. Vendors on the site sell products and then drop them off in the store, where buyers can come in to get their purchases – with no commission charged.  Sellers also receive a voucher that can be redeemed at any Galeries Lafayette store or its online shop. Attracting both buyers and sellers into the store, this initiative translates into a host of new sales opportunities.

Added to the list is the new Levi’s flagship in New York City’s Times Square, which has a section dedicated to selling pre-owned garments. Here, it’s possible to find not only newer styles, but also refurbished items from past decades, going as far back as the 1930s and 1940s.

3. FACILITATING THE CONSIGNMENT ITSELF

West coast brand, Reformation, is the first brand to partner with resale website thredUp on a project called UPcycle. When customers shop on the Reformation website throughout May 2019, they all automatically receive an UPcycle kit in their orders. These kits enable customers to shop the clothes they want to consign to thredUP, taking away the hassle of sorting out the inventory to do so.

But that’s not all, when a customer decides to consign any product from any brand via thredUp, they also have the option to get paid with a gift card for Reformation. This is a way to create more circularity, while also promoting Reformation’s brand. ThredUp expects to establish similar partnerships with 10 more companies this year.

How are you thinking about retail innovation? We’re all about finding you the perfect partners to do so. The Current Global is a consultancy transforming how fashion, beauty and consumer retail brands intersect with technology. We deliver innovative integrations and experiences, powered by a network of top technologies and startups. Get in touch to learn more. 

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business Campaigns data digital snippets e-commerce product Retail social media sustainability technology

ICYMI: Farfetch acquires Stadium Goods, the UN’s fashion climate charter, ASOS profit warning

A round-up of everything you might have missed in relevant fashion, retail and tech industry news over the past week.

TOP STORIES
  • Farfetch acquires Stadium Goods: Why sneaker resale is becoming big business [Forbes]
  • Milestone fashion industry charter for climate action launched [UN]
  • ASOS issues profit warning as Christmas sales falter [The Industry]
TECHNOLOGY
  • China’s retailers turn to real-world surveillance to track big spenders [Wired]
  • Alexa wants you to answer questions [Cognition X]
  • Is the face-swapping robot with multiple ‘personalities’ cool or just plain creepy? [Mashable]
  • Racist, sexist AI could be a bigger problem than lost jobs [Forbes]
  • Is tech too easy to use? [New York Times]
SUSTAINABILITY & PURPOSE
  • Kering launches first ‘regenerative sourcing’ standard for fashion suppliers [Edie
  • Francisco Costa is back—with the chicest sustainable beauty brand you’ve ever seen [Vogue]
  • The first “plastic-free” supermarket aisle [BBC]
  • Lacoste joins list of brands banning mohair  [Fashion United]
  • Companies used to stay quiet about politics. In 2018, social causes became integral to their branding. [Vox]
  • Is online shopping better or worse for the environment? [WWD]
RETAIL & E-COMMERCE
  • Here’s how Nike, Alibaba and Walmart are reinventing retail [Wired]
  • The future of fashion is made-to-order, according to Farfetch CEO José Neves [Fast Company]
  • Amazon Go eyes London’s West End for first UK store [Retail Gazette]
  • Why Starbucks is experimenting with experience-based retail [Digiday]
  • E-commerce is thriving in Africa despite hurdles to the “last mile” [Quartz]
  • ‘It’s a big data game’: Startups compete to reinvent the convenience store [Digiday]
  • Lululemon expands test for 1st loyalty program [Retail Dive]
MARKETING & SOCIAL MEDIA
  • You can try on the latest Adidas sneaker drop on Snapchat [Engadget]
  • Mall of America debuts holiday AR scavenger hunt [Mobile Marketer]
  • Mr Porter launches gift assistant with Facebook Messenger [Fashion Network]
  • Lululemon and Strava team up to launch a series of virtual races [Runners World]
  • Calvin Klein kills print ads — will other fashion brands follow suit? [Footwear News]
PRODUCT
  • H&M teams up with cult brand Eytys for unisex collection [Fashion United]
BUSINESS
  • Millennial consumers rule the luxury market – how are brands coping? [SCMP]
  • Samsung’s Supreme collaboration in China is with a “counterfeit organization,” Supreme says [Quartz]
  • LVMH expands portfolio with $2.6B Belmond travel deal [Retail Dive]
  • H&M says full year sales increased by 5 percent [Fashion United]
  • Alberta Ferretti under investigation by Italy’s antitrust authority [Fashion United]
CULTURE
  • Self-Portrait is growing in the age of streetwear — without flashy logos or sneakers [Fashionista]
  • Prada pulls monkey designs following outcry over racist imagery [Complex]
  • Diversity on magazine covers increased by a record double-digit percentage in 2018 [Fashionista]

How are you thinking about innovation? We’re all about finding you the perfect partners to do so. TheCurrent is a consultancy transforming how fashion, beauty and consumer retail brands intersect with technology. We deliver innovative integrations and experiences, powered by a network of top technologies and startups. Get in touch to learn more.

Categories
business digital snippets e-commerce product Retail social media sustainability technology

ICYMI: Macy’s buys Story, Gucci’s new flagship, AI and the future of fashion

Futuristic fashion by Tim Walker
Futuristic fashion by Tim Walker

A round-up of everything you might have missed in relevant fashion, retail and tech industry news over the past week.

TOP STORIES
  • Macy’s buys Story concept [RetailDive]
  • Gucci plants its flag in Soho [BoF]
  • How artificial intelligence will impact the future of fashion [Vogue]
TECHNOLOGY
  • Can AI and AR turn your prospects into customers? [Inc]
  • How beauty brands like Coty and Shiseido are using voice assistants [Glossy]
  • Ticketmaster to trial facial recognition technology at live venues [Venture]
  • Verisart brings blockchain certification to the global art auction market [TechCrunch]
SUSTAINABILITY
  • Fast fashion goes green with mushrooms, lumber scraps, and algae [Bloomberg]
  • Applied DNA Sciences confirms traceability of leather [WWD]
RETAIL & E-COMMERCE
  • Walmart.com redesigns as the anti-Amazon [Co.Design]
  • Farfetch partners with Stadium Goods on sneaker hub [WWD]
  • Brandless’ pop-up is focused on community engagement rather than selling products [AdWeek]
  • China’s live-streaming fashion boom changing the way Gen Z shops [SCMP]
MARKETING & SOCIAL MEDIA
  • Inside the bitter war to bring Tupac and Michael Jackson back to life [Wired]
  • Diet Prada unmasked [BoF]
  • Instagram quietly launches payments for commerce [TechCrunch]
PRODUCT
  • Amsterdam is solving its gum litter problem by making shoes out of recycled gum [AdWeek]
  • ElektroCouture: Inside the fashion house behind Swarovski’s $60,000 light-up dress [Forbes]
BUSINESS
  • Over 400 startups are trying to become the next Warby Parker. Inside the wild race to overthrow every consumer category [Inc]
  • Prada: Making the most of its moment [BoF]
  • Alibaba’s anti-counterfeit group now has 105 brand members, including L’Oréal and Bose [TheDrum]