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T h e M a g a z i n e f o r Canadian Fashion Retailers Runway Review Business or Entertainment? Canada Post Agreement #41957515 Accessories Taking S/S 2020 by Storm Retail Success Small Shops - Big Ideas Top Ten Trends 2020 Retail Vision January - July 2020
CONTENTS trends The Magazine for Canadian Fashion Retailers J A N U A RY 2 0 2 0 S P E C I A L F E AT U R E S 38 Top 10 Trends Socially and ethically minded youth impact SS20 womenswear Vo l u m e 11 Issue 21 January 2020 trends and buying patterns. 58 Sustainability in Business A sustainability strategy to future-proof businesses in an age of informed and socially minded consumers. Publisher / Editor 8 Kait Walker kait@trendsmagazine.ca Editorial Contributors D E PA R T M E N T S 8 Kirsten Mogg 8 Lucy Lau 8 Naeme El-Zein 08 Industry News 8 Ani Nersessian Dawn of a New Decade - opportunities and inspiration amid environmental, political and business disruptions. Editor / Art Director 8 Kim Walker kim@trendsmagazine.ca 22 Retail Success National Sales Manager. Small retailers with new ideas make landlords and municipalities 8 kait@trendsmagazine.ca recognize that independents have an important role to play. 705-426-1712 Website Address 8 trendsmagazine.ca Email Address 8 info@trendsmagazine.ca 32 Accessories Canadian designers take 2020 Spring/Summer runways by storm. Subscriptions 8 subscribe@trendsmagazine.ca Head Office 8 Beaverton ON L0K 1A0 42 Runway Review Have entertainment and activism overtaken business interests? Circulation 8 trends@publicationpartners.com Spring 2020 runways deploy new strategies as they try to adapt. Toll-Free: 8 1-877-547-2246 50 Visual Merchandising Avoid the Stockroom Syndrome - how to display merchandise All rights reserved. effectively to tell a story and give shoppers a break. Trends is published biannually. Contents may not be reproduced in whole or in part without the consent of the publisher. The publisher is not responsible for the contents of any advertisement. Any representations or warranties are those of the advertiser and not the publisher. 52 Vancouver Fashion Week The advertiser is responsible for obtaining permission to use any photographs or VFW presents the major trends of the season. images used in an advertisement. The publisher is not liable for misprints that are not the fault of the publisher and in such an event the limit of the publisher’s liability will not exceed the amount the publisher charged for the advertising. 60 Show Calendar Subscription Rates: Dates and venues for 2020 Canadian, US & International shows. Canada 1 year CDN $22.00 United States 1 year $33.00 All other countries 1 year $44.00 Single Copies: Canada $11.00 Canada Post Agreement Number 41957515 Cover Photo 6 TRENDS 4 January 2020
Industry News By Kirsten Mogg Dawn Of A New Decade The ten-year post recession expansion cycle is either imminently doomed or just getting started, depending on whom you ask. Global politics, climate change, and technology continue to disrupt. Consumer activism is on the rise. Trade policies are a question mark although the USMCA (NAFTA 2.0) agreement seems finally to have bi-partisan approval and can proceed to ratification. The Color of the Year 2020: Classic Blue 19-4052 WTO is in disarray and trade agreements will need to be rewritten when the Courtesy of Pantone Color Institute UK leaves the Canadian European Trade Agreement (CETA). Pantone Color of the Year Climate Change Pantone suggests that its Color of the Year 2020, Blue 19-4052, is both Perhaps the most impactful challenge to the fashion industry, labeled as a futuristic and classic. Darker than the optimistic and peaceful sky blue significant global polluter, is a demand for urgent action on climate change led Pantone selected a decade ago, this blue is closer to cobalt derived pigments by sixteen year old Greta Thunberg. Consumers are responding by calling for used for centuries to tint glass, ceramics and paint. Being neither masculine political and corporate action. nor feminine it suggests a genderless trend while at the same time reflecting a trend toward highly contrasting points of view - either a refreshing yet United Nations peaceful colour referencing an oasis of calm in troubled times or a Mark Carney, the former investment banker and Bank of Canada chief is disappointing, moody safe choice more suited to cars, political parties, leaving his post as the head of the Bank of England. He has accepted a new technology firms and conservative men’s suits. role as United Nations special envoy on climate action and climate finance This blue will be successful in fashion when presented in modern materials reporting to Secretary-General Antonio Guterres. Carney takes over from in a contemporary way or enlivened by its complimentary colours of Michael Bloomberg, former Mayor of New York, and US Democratic Presidential orange, black and white. Expect to see it in dark jeans, suiting, sportswear, candidate. Carney will build on the Task Force on Climate-Related Financial shimmery metallics, lace or velvet and in beauty products for nails, lips Disclosures (TCFD) initiated by G20 leaders in 2015. About 80 percent of and hair. top 1,100 global companies already disclose climate risks aligned with those guidelines. Convincing companies to take up this global financial reporting framework is of great interest to investors who need to assess the corporate risks associated with climate change. Although there is heated disagreement over the price of carbon emissions, Canadian companies already operate in an environment that puts a dollar value on climate risk. The Canadian Securities Administration and the Office of the Superintendent of Financial Institutions issued new guidelines for accounting and reporting standards for public and regulated companies last year. Increasingly, taking climate related risks can reduce a company’s ability to raise capital. Preferred Fibre Production The Textile Exchange defines ‘preferred fibers’ as materials with an improved social and environmental impact, an important requirement for the UN SDGs. In their latest Preferred Fiber and Materials Market Report, La Rhea Pepper, managing director, outlined the scale of the challenge that could become even more daunting. “Global fiber production has doubled in the last 20 years, reaching an all-time high of 107 million metric tons in 2018. If business-as-usual continues, it is expected to grow to 145 million metric tons by 2030.” Polyester has the largest share, followed by cotton and man-made cellulosics, while linen, leather, silk and wool are a small and shrinking part of the global fibre pie. The share of recycled polyester grew from 8% to 13% in just ten years, although China’s ban on imported plastic waste caused a decline of 16% in 2017. More promising is the reported increased production of ‘preferred’ Juno Award winning artist Iskwe opened Canadian designer fibres. The share of other recycled synthetics and bio-synthetics remains very Lesley Hampton’s runway show in February 2019 small. Preferred cotton more than doubled over 2013/14 to reach 22% of global Hampton has Anishinaabe and Mohawk heritage cotton production in 2017/18. Photo : George Pimentel 8 TRENDS 4January 2020
44 INDUSTRY NEWS ................................................................................................................................................................................................................................................................... ................................................................................................................................................................................................................................................................... ................................................................................................................................................................................................................................................................... ................................................................................................................................................................................................................................................................... Science Based Standards The gold standards for textile sustainability are based on scientific measurements Canadian companies including Arc’terx, Aritzia, Lululemon and MEC sent and broad-based industry collaboration. The non-profit Textile Exchange has representatives to the roundtables organized for specific fibres such as facilitated working groups in specific textile sectors for years. Representatives polyester, cotton, cellulosics, wool and cashmere. There is much more from fibre to finished product within each specialized area work towards to be done. The next Textile Exchange Global Conference will be held in consensus and establish voluntary global standards for the industry. Dublin, Ireland during the first week in November, 2020. The issues are many and complex, but there is progress and public corporate commitments have been made by global players such as Kering, Ikea and H&M Group. At the 2019 Textile Exchange conference held in Vancouver last October, over 900 international industry product developers, production and sourcing executives from fibre producers, mills, manufacturers, retailers, NGO’s and standards organizations came together to discuss solutions and push forward toward the 2030 UN Sustainable Development Goals (SDGs). Scaling up is a priority and it’s clear that the leaders in the room were far ahead of the industry in general. Presentations emphasized how some fiber producers, textile and apparel companies and retailers are executing real, measurable changes to their individual and collective industries. Some, like Kering, are sharing open-source information and playing a leading role in convincing large players to sign up to the Global Fashion Pact launched at the G7 in Biarritz, France in August. The key take-away for a Canadian apparel brand or retailer is this: sustainability is no longer a single item, a marketing slogan, a compliance checkbox or a single department. Actual movement towards sustainability must be led from the top and operationally resourced with employees in every discipline who have Ikea and H&M Group made joint public empowerment, training and the tools to design a product that approaches carbon commitments on their SDG2030 goals neutral or carbon positive status as it moves through the textile pipeline. at Textile Exchange Golden Opportunties There are already many quality and compliance standards for textiles and apparel. However, there is no single global standard against which all products designed with environmental concerns in mind can be measured. Over the next decade for-profit companies will move to create, license and provide policing of environmental standards required by retailers and government authorities. Apparel companies offering products on the cutting edge of climate change standards are enjoying expanded business opportunities. Cruelty-free thermal fill insulates the brand against vegan activism Courtesy of Woodpecker Woodpecker makes a strong statement on giant new outerwear label Photo : K.Mogg Will Poho’s new Woodpecker premium outerwear brand launched successfully last fall with custom camo, a variety of vegan friendly ‘cruelty-free’ insulated puffer styles with slick wet-look fabrics. Instead of typical external branding, animal insignias adorn the sleeves. The neck labels on men’s coats sport a giant Courtesy of Nudnik Inc. burning white house while labels on the women’s line portray a Canadian children’s brand Nudnik more inclusive family of bears of all shifted from post to pre-consumer colours. Poho says the line did very organic cotton to ensure a circular Men’s Bumnester Wet Black Gold & Women’s red penguin coats well and he expects sales to catch fire source, control of product quality and Courtesy of Woodpecker for AW20/21. aesthetics, and the ability to scale. 10 TRENDS 4January 2020
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TH E UP S I DE O F D O W N The implementation of standards and labeling for responsible down, recycled down and sustainable down alternatives is a tribute to progress over the pursuit Updated Responsible Down Standard of perfection. The Responsible Down Standard appears to be gaining global acceptance over the Traceable Down Standard and the Downpass Standard. The RDS Stuffing Regulations first introduced in 2008 was written by the Textile Exchange, Control Union Policy is easy to implement, but hard to reverse. Quebec’s enforcement of (a certification body), and The North Face. Last year, an updated RDS 3.0 antiquated Upholstered & Stuffed Articles regulations is “outdated, standard was released with input from global stakeholders. arbitrary and punitive” and “a barrier to free trade”. So says a report to the U.S. China is the source of 70% to 90% of the 270,000 metric tons of down Trade Representative by the American Apparel & Footwear Association who produced annually. Supply is highly fragmented with many small and worked for years with the Canadian Apparel Federation (CAF) to remove medium-size producers, however the Textile Exchange has certified over 6,000 this regulatory requirement on apparel. farms and 904 processing sites in 2018, a significant increase since 2014. Bob Kirke, CAF executive director, puts it a little more bluntly, “It’s a zombie Over 70 brands have certified supply chains using RDS, including Canadian regulation. It serves no purpose for apparel and should be removed.” companies Arc’teryx Equipment, Aritzia, Indygena, Lululemon Athletica Quebec is the only jurisdiction that still has decades-old rules with an ambiguous Inc., Mackage, and MEC. and unenforced ‘health and safety’ rationale. What’s more, the restrictions Patagonia remains a committed global leader when it comes to down traceability represent a cost to Canadian manufacturers, importers and retailers. Rules and standards. The company started to trace down in 2007 and today their fall require any product made for Canadian distribution using recycled materials 2017 virgin down-filled products meet the advanced Global TDS standard. such as polyester or down to have a label identifying the garment as a “second hand article”. “It was neither cheap nor easy. And we had to re-examine our strategy and business operations in the process. But building a long-lasting product that Most affected are companies creating and selling insulated outerwear such as helps you stay warm in good conscience is a legacy of which we are extremely parkas and puffer coats. The trend to more sustainable recycled options leaves proud.” the government of Quebec behind the times and out of sync with the industry and eco-conscious consumers. CAF is seeking an end to the requirement A proposal to merge RDS and Global TDS was dropped due to different in early 2020 so that production of AW 20/21 winter outerwear can be stakeholders and areas of concentration. unencumbered by outdated regulations. Fall/Winter 19 Aritzia Super Puff coats wear Responsible Down Standard tag Aritzia SuperPuff display Photo : K. Mogg Photo : K.Mogg RE:Down© email campaign, Sept 2019 Courtesy of Tommy Hilfiger Indygena is a sustainably-driven outerwear company founded in Montreal in 2014 by three design and outerwear veterans: Jean-Pierre Ferrandez, the Recycled Down former head of international development for Orage and co-founder of Lolë Several European companies have developed methods to collect and produce and Paradox labels; Isabelle Vigneault, the executive director; and Stéphanie recycled down. Allied Feather and the Neokdun brand from Navarpluma SL of Noël, who studied at Jean-Charles de Castelbajac in Paris, is vice president Spain created a feather and down re-processing system sourced from the food of creation. The brand is available at MEC, Altitude Sports, Monod Sports industry in 2001. In September 2019, Navarpluma and Applied DNA Sciences in Banff, Trailhead Paddle Shack in Ottawa and Arthur James Clothing announced a partnership for a DNA based traceability project. The same month, Company in Newfoundland, among others. In August, the Canada Economic Japanese company Toray announced a collaboration with Uniqlo to reclaim Development for Quebec Regions granted a $250,000 repayable contribution and recycle down from apparel collected in Uniqlo stores. to Indygena to develop new markets in the U.S. The company places design at Meanwhile, the French company RE:Down has built a commercial system that the centre of sustainable solutions while recognizing the challenges. achieves 97 percent of their zero waste goal that did meet the Global Recycled “The complexity of the supply chain and multiple components of a garment lay Standard (GRS). Re:Down partners with textile waste collectors, charities and great challenges in our quest for sustainable measures.” retailers to collect post-consumer down products (clothing, stuffed articles, bedding). Their energy-efficient and re-usable water facility in Hungary The company has published specific sustainability goals to be achieved by separates, sterilizes and re-processes down without the use of chemicals to 2025. “Indygena is committed to replace synthetic fibers with recycled plastic produce recycled down that retains its natural insulating properties. Other polyethylene terephthalate (PET), recycled nylon, natural and/or organic fibers materials are recycled into non-woven insulation and broken feathers are turned by 2025 in its entire collection. 100% of our materials contain polyester or into organic fertilizer. In 2019, brands such as Tommy Hilfiger began to nylon, where our greater environmental impact takes place right now in the promote the use of re:Down in their products. supply chain.” 12 TRENDS 4January 2020
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TO O L CHE S T Use The Free Library Achieving sustainability may seem overwhelming for a small fashion company free access to a searchable library with extensive information from vetted trying to do the right thing with limited resources. At the World Ethical resources that include reports, guidelines, standards, articles, podcasts and case Apparel Roundtable (WEAR) in 2019, the host and organizer, Fashion Takes studies. The goal is to make information ‘findable’, which will help companies Action, published The Sustainable Fashion Toolkit with the help of PWC. and individuals in the industry make progress toward sustainability. The online resource (sustainablefashiontoolkit.com) gives apparel companies FTA Sustainable Fashion Toolkit BCorp: A Fashion Status Symbol At the WEAR conference in Toronto last October, Ethan Song, co-founder Trust Tools of Frank & Oak, explained why he took his company through the process to Truepic is a secure imaging pipeline. At the moment a photo or video is taken, become a Certified B Corporation. its origin, contents and metadata are verifiable. The company offers digital “From the beginning we were involved in sustainability, community forensics to organizations in need of certainty throughout their supply chain. involvement. We always felt we were doing the right thing as a business, but how do you know you are taking the right actions? BCorp offers a framework.” Second Hand Stigma Fades Song was confident, but the process was tougher than expected. The fees were At WEAR, Chris Homer, co-founder of Calfornia-based reseller ThreadUP’ not substantial, but it required significant human and other resources to implement said, “We started with a mission to inspire a new generation of consumers to organizational improvements in order to achieve the points needed to reach the think second-hand first. When we started there was a stigma - over time it has BCorp standard. evaporated.” ThreadUp designed and built its own software technology and in-house “It took us two years to get certified and it gets more challenging as you get bigger. The more complex your business, the more complex your supply chain processes and has the first data set in the world able to price items, add tags and put attributes on those items, and determine which products should be available and governance, the harder it is to get certified. I put together a cross-disciplinary squad and we met for 2-3 hours every single week until we got it.” online or at physical retail. ThreadUP’s success lies in the ability to offer shoppers a tailored treasure hunt covering 35,000 brands in 100 categories. Hot A growing number of Canadian clothing companies of all sizes have become retail brand Reformation partnered with ThreadUP on a give-some-get-some BCorps, including Kotn, Tentree, Grey Rock Clothing Co., and Poppy Barley, Reformation x ThreadUP campaign to help burnish their eco-credibility. all of which have been part of previous Trends Magazine stories. Over the past year, ThreadUP’s business in Canada has grown by 70% before its official launch. EVE NTS & AWA R D S Winter Sports Apparel & Gear Combo Marisa Nicholson, Outdoor Retailer's senior vice president and show director, and 12 months of business mentoring. Last year, two promising Canadians were announced in August the merger of the Winter Market and the Snow Show. short-listed: 3.Paradis men’s streetwear brand and Marie-Ève Lecavalier the Renamed the Outdoor + Snow Show, the combined trade shows for winter winner of the CAFA/Swarovski Award for Emerging Talent in 2019. gear and apparel will run from January 29 to 31, 2020 in Denver. Canadian Arts and Fashion Awards has set April 30, 2020 as the deadline for nominations. The 2020 CAFA Awards gala at the Fairmount Royal York will be Fashion Career Fair Returns to Toronto in March held on May 29, 2020. The Suzanne Rogers Designer Grant for International After a successful one-day event in 2018, the Canadian Apparel Federation Development is a $20,000 prize that includes mentorship, one of the best and the City of Toronto will again co-host a Fashion Career Fair and Expo financial opportunities for emerging designers in the country. However, it pales on March 10, 2020. They plan to expand on the event, which drew over 350 in comparison to similar prizes for similar talent such as the LVMH Prize or qualified candidates from area fashion schools and showcased speakers and the CFDA/Vogue Fashion Fund in the U.S. which hands out US$400,000 for exhibits from some of the leading industry employers in the GTA. the winner and $150,000 to the two runners-up. A jury will select an outstanding Canadian fashion designer or brand that has demonstrated significant impact, The seventh edition of the LVMH Prize for emerging designers is open for growth, and maturity and is poised to expand internationally. In 2019, the submissions until February 2, 2020. The most substantial award for emerging Suzanne Rogers grant went to Sid Neigum, who also received the CAFA designer talent presents the winner with €300,000 Euros in financial support Womenswear Designer of the Year Award. 14 TRENDS 4January 2020
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RETA I L TREN D S Super Winners A Modern Underwear Index According to the 2020 State of the Fashion Industry Back in the 1970s, former U.S. Federal Reserve report by McKinsey, only a few public global fashion chairman Alan Greenspan suggested an ‘underwear companies are ‘Superwinners’ while the rest struggle index’ to predict where the economy is headed. to make a profit. He based it on the premise that men buy new briefs Increasingly, profit is gained at the retail extremes of when they felt confident about the future. The luxury or discount. With the exception of Inditex informal index tracked Hanesbrands stock against (Zara, Massimo Dutti), those in the middle are the Standard & Poors whereas the closest weaker fiscal performers. The report identifies comparable public company in Canada today would among the Superwinners LVMH on the luxury end be Montreal-based Gildan Activewear, which makes with H&M and TJX (Winners, Marshall’s) in the basic t-shirts and socks. If Greenspan were around, discount arena. he might note a divergence in the performance of private high-end companies versus those dressing Giant Tiger celebrated 50 years since opening in the middle market. Ottawa’s Byward Market. The company has stepped up its fashion and moved into the void left by Sears, Despite the collapsing fortunes of Victoria’s Secret, Target and Zellers by opening 201 stores in cost- two Canadian underwear companies do provide conscious secondary markets. Its profitable business promising predictions of the economic future. model competes with Walmart. Saxx men’s underwear became the fastest growing “By keeping our costs low, we compete on price and underwear brand in North America. Founded in still make a profit,” Vancouver in 2006, it is known for its patented ~ Andy Gross, President and CEO of Giant Tiger ‘ballpark’ pouch. Trent Kitsch, Saxx founder, has moved on from underwear to construction, cannabis Giant Tiger men’s ACX reversible packable puffer High Cost of Returns and wineries in the Okanagan after selling Saxx in 2015. Courtesy of Giant Tiger The volume and costs of returns are staggering. In the U.S. and probably in Canada, 11% of total Knix (Knixwear) is a body-positive brand for women Digital Disruptors Weakening annual retail sales are returned and of those returns started by Joanna Griffiths in Toronto in 2013. For some time, bricks and mortar retailers have 13% are apparel items and 9% are footwear, according She led her company’s growth by acquiring highly raced to join direct-to-consumer sales on digital to the National Retail Federation. engaged customers and adding a range of specialized platforms. To compete with lower overhead, wire-free products that address parts of the market Another statistic from Shopify should give endless aisles and free shipping, traditional retailers previously ignored, like leak-proof fashionable e-commerce retailers pause: in just four years, the had to change their distribution platforms, reduce underwear and a range of sizes more fitting for the total expected cost of return deliveries swallowed their store footprints, and build a seamless and whole population. by U.S. retailers is up by over 75% and forecast to exciting shopping experience. reach US$550 billion. In the fall of last year, Knix opened its first retail Headlines still tout the death of traditional retail but Recovering expenses on returned merchandise sold locations as long-term popups in Vancouver and now there are signs that Amazon, the king of digital at a discount costs retailers 4.4% of total revenue, Toronto where it introduced loungewear, maternity disruption, has fallen on hard times as the costs of according to DHL. That plus lost sales is why some and Knixteen, a sub-brand of underwear for teens. e-commerce returns, delivery, and digital marketing retailers are reducing the window for returns from Griffiths has raised $1 million through a record- take a toll. 30 to 14 days or less. Others are trying the subscription setting crowd-funding campaign and small In addition, Quebec and Saskatchewan introduced model or asking consumers to pay higher ‘restocking’ investments from advisors like Bravado Designs new local sales taxes for foreign sellers a year ago, fees. These policies might help, but they may not go plus a partnership with Nordstrom. Last year she something the Retail Council of Canada and local over well with customers used to more leeway. raised $5.7 million towards the next phase of growth retailers such as Larry Rosen have been seeking The competition is just one click away. through Action Capital. for a long time. Cut To The Future Graysha Audren, BA Textile Design, presented the design concept “Seamless Woven Workwear For The Automated Future” as part of the “Designing in Turbulent Times” exhibit at the University of Arts in London. The weaving techniques bypasses traditional cut and sew processes to create seamless garments of organic cotton and natural indigo engineered directly on the loom. Seamless workwear design by Graysha Audren UAL exhibit, London 2019 Photo : K. Mogg 16 TRENDS 4January 2020
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Stores With Nothing To Sell Luxury brands display minimal stock in highly controlled environments. Canada Goose, for example, has opened a theatrically frozen but empty store at CF Sherway Gardens in Toronto. There is a crevasse, fake ice and a room resembling a snow globe, but almost no inventory. CEO Dani Reiss expects to attract customers in search of an experience who then shop and post online and tell their friends all about it. The new store is a marketing exercise to link the brand with the harsh, cold north and to distinguish it from the increasing number of premium coat competitors with high-end retail stores. Reiss told the National Post, “You’re entering a new world. You’re entering the world of Canada Goose. You’re entering the Arctic.” He also explained that the store is not accountable for achieving the typical performance metrics Ribbit app used by BIA’s in Toronto to encourage local shopping with rewards at other stores. Delivery Too expensive To Be Disruptive “There are measurable objectives to do with this store, but they don’t have to do with store performance or sales per square foot or any of that stuff. I think that In the online food marketplace, delivery costs are the reason 37% of people would drive the wrong behaviour.” choose not to order. Where market demand exists but rental rates are prohibitive, restaurants are turning to ‘cloud kitchens’ to cook up better profits with no Luxury brands regularly introduce new, exquisite products and accomplish that front-of-house and no wait staff. Similarly, shoppers abandon online shopping by hiring star designers who inject new concepts and bring along their followers. carts at clothing retailers when they see the additional shipping costs. So far, Canada Goose is taking a marketing approach. Amazon and Shopify are both building last mile distribution centres in proximity Fast-growing luxury reseller The RealReal posts an annual list of the top 10 to some of Canada’s larger markets, but free same day or next day deliveries is most-searched-for brands. Gucci and Louis Vuitton are the top two followed expensive. In search of a solution that lets the company stock more product and by third place Chanel with less than half the interest. Demand for Gucci fulfill faster, Nordstrom has partnered with two robotics startups, Attabotics and increased by 78 percent but Balenciaga had the most impressive gains taking Tompkins Robotics, in a test of a new type of automated distribution centre in it to tenth spot for the first time. In the report issued in August, Sasha Skoda, San Jose, CA. category director for women’s, said that when young visionary designers are brought on board it helps heritage labels reach the top ten. “Balenciaga brought in Demna Gvasalia, Louis Vuitton brought in Virgil Abloh in men’s, and Gucci brought in Alessandro Michele. They all re-imagined the brands in ways that speak to the Millennial and Gen Z customer base in a way they previously have not.” NRF 2020 Preview Every January, the National Retail Federation hosts the “Big Show” in New York. Technology suppliers offer retail tools to improve every aspect of merchandise planning, store operations, e-commerce, distribution and delivery services to AMEX shop small campaign for the Saturday after Black Friday 2019 packaging, in-store display, consumer tracking and engagement. One of the challenges retailers have is evaluating which tech is right for them Digital Marketing Costs Soar and how to affordably integrate the new cloud-based ‘big data’ options into Search advertising has slowed globally, according to research by WARC. Global their legacy systems in a way that will give them a competitive edge. A full search ad spend will rise 9.6% this year ($135.5 billion), the slowest rate since roster of candid guest speakers and an Innovation Lounge full of interesting 2015. The share of search internet advertising remains about the same proportion startup ideas provide an opportunity to gather valuable retail insights. at 45.8%. Google controls 95% of search in Canada, but increased search competition from Amazon has prompted testing of new revenue sources: increased ad prominence in search engine results page; increased number of Food for Dinosaurs ads in the same auctions; and forced search placements to other properties like Department stores and malls have been referred to as retail dinosaurs. YouTube and Google Maps. Some are successfully avoiding extinction by selling off real estate (HBC) or That last trend could impact independent retailers. Implementing automated battling back with smaller urban formats supported by smart warehousing and ‘smart’ formats for shopping and local campaigns takes control and distribution (Ikea). Some profitably sub-let space to brands and other retailers. transparency away from advertisers. Some retailers looking for shoppers with Events, private brands and ‘discovery’ merchandise help to draw traffic. ‘search intent’ may do better by migrating their ad spend to Pinterest, Food also draws shoppers as evidenced by fine dining at Collette inside Holt YouTube, Quora or Facebook where consumers spend more time researching Renfrew at Yorkdale Mall. Even the smallest retailer can add hospitality to the before making a purchase decision. shopping experience by setting up a beverage barista, offering packaged foods In November, Pinterest announced a new profile page in the U.S. called or take-out treats. Pinterest Shop. Seventeen small brands were ‘selected’ to upload their For inspiration look to the great food halls of the world like the one at Harrods with catalogues as part of Pinterest’s strategy to offer marketers an alternative to its robust multisensory experience. Harrod’s Motorcar Garage and Workshops Google, Facebook and, increasingly, Amazon as a destination for their digital actually functioned as a warehouse from 1911 to 2016 when it was transformed ad buys. If the initiative is successful the roster of businesses may expand to into luxury residences, offices and small ground-floor retail in close proximity include both USA and international brands. to Chanel, Joseph, J. Crew and Stella McCartney. 18 TRENDS 4January 2020
44 INDUSTRY NEWS ................................................................................................................................................................................................................................................................... ................................................................................................................................................................................................................................................................... ................................................................................................................................................................................................................................................................... ................................................................................................................................................................................................................................................................... IN SP I RATI O N & I N S I G H T High Fashion Fabrics A newly refreshed Musée des Tissus de Lyon has “reinvented itself as a place of inspiration and reflection celebrating the textile industry through fashion, design and digital technology” An exhibit on until March 8, 2020, showcases works of the late Yves Christian Louboutin Pigalle shoe, Saint Laurent featuring a replication © Christian Louboutin of his studio with colour charts and Photo : Jean Vincent Simone fabric sample books along with 25 pieces from his haute couture Christian Louboutin collections from 1962 to 2002. On February 26, the Christian The exhibit features sketches, muslins, Louboutin L’exhibition[niste] opens photographs, and finished garments in Paris at the Palais de la Porte seen only on the runway. Stunning Dorée. Olivier Gabet, director of the jacquards, chiffon, taffeta and velvets Musée des Arts Décoratifs, with the created by renowned silk weavers financial sponsorship of Nordstrom, from the area will also be on display. has curated an exhibit from the designer’s The show stopper is a gold and private collection. Yves Saint Laurent jewel-encrusted ‘Shakespeare’ wedding During his adolescence, Louboutin Shakespeare wedding dress dress from 1980 designed by YSL. lived near the museum that was to play an influential role in his early designs beginning in 1991. Forms and motifs, such as the metallic leathers of Yves Saint Laurent Cleopatra Dress his Maquereau shoe, were inspired Spring Summer 1990 haute couture © Yves Saint Laurent by the iridescent fish in the museum’s Photo : Pierre Verrier tropical aquarium. A cartoon of a shoe with a red ‘X’ forbidding visitors to wear high-heels was the inspiration for his iconic Pigalle shoe. Yves Saint Laurent Yves Saint Laurent silk suit (detail) Cleopatra dress (detail) Spring Summer 1990 haute couture Photo : Sophie Carré © Yves Saint Laurent Photo : Sophie Carré Canadian Design Excellence In 2017, Avyn Omel, in St. Mary’s, Ontario, launched her brand of ageless apparel designed with a dancer’s understanding of the body in motion and an approach to excellence in craftsmanship. In March 2018, she showed her first collection in Paris. In 2019, she won the RBC Foundation Design Exchange (DX) Award for an emerging Canadian fashion designer. The collection is produced in Veneto, Italy, using Italian and Japanese fabrics, leather and down. Avyn styles are a minimalist contemporary merge of masculine and feminine Silk and cotton sateen overcoat and silk plisse dress that draws on earlier work at conceptual fashion design studios in London and SS20 collection by Canadian designer Avyn Omel Berlin. Her collection for AW 20/21 will show in Paris in February. The collection Photo : Marina Denisova Courtesy of Avyn Studio Inc. is sold at INK in Hong Kong and Zoven Boutique in Shenzen, China. 20 TRENDS 4January 2020
R ETAIL Many shop windows have gone dark in big once avoided. An additional incentive comes from cities and small towns, in malls and on main streets. consumers who are willing to pay more for a Cheap capital, e-commerce competition and perverse shopping experience and personal services from SUCCESS tax incentives have combined to make it difficult interesting and locally connected shops. for some retailers to operate profitably. Some This confluence of market forces might just make Canadian municipalities and commercial property the best conditions for independent retailers to thrive. owners have begun to reassess the important role A Bounty of Policy shifts can go some way to lifting barriers, but small retail plays in sustaining their communities. for independent fashion retailers, competition remains Municipal policies, such as vacancy tax rebates and intense and success requires astute identification Boutique highest use valuations, have resulted in raised rents, of opportunities, investment in innovative concepts which hastened the demise of many independent and products, and nimble execution. Ingenuity retail businesses. While low interest rates have Here are five retailers achieving success in very helped real estate investors enjoy escalated real different ways. One thing they all have in common estate values, e-commerce has affected large tenants is a founder with international experience: By Kirsten Mogg of mall and commercial real estate owners who now NARCES - a petite glamour spot face their own vacancy challenges. BRIKA - a popup provider Savvy small retailers launch new business ideas Some landlords have always embraced small unique STYLEARTIST - a cottage industry innovator while landlords and municipalities begin to recognize retail concepts and even large Real Estate Investment INDOCHINO - a rising star in mass customization that retail independents have an important role to play. Trusts see the rationale for including retailers they BANK & VOGUE - a remarkable recycler and reseller. Narces Atelier New boutique on Davenport Rd. Toronto Photo : K. Mogg NA RCES AT E L I E R Narces Atelier Photo : George Pimentel A Petite Glamour Spot Narces Atelier Canadian designer bridal and eveningwear brand, are on the other. A satin-draped change area is Photo : George Pimentel NARCES, newly opened a street-front shop on busy toward the back. The overall effect is friendly, fun Davenport Road, just north of the Bloor-Yorkville and intimate. It is definitely less intimidating than “I love having direct contact with my customers. area in Toronto. many other bridal and eveningwear boutiques. They tell me what they like.” Wirthenson always listens to learns. Relationships and a fitting service The petite space used to be an artist studio, complete “It fits with how I want my customer to feel: are important in this kind of high fashion retail. with brightly coloured paint splatters on the floors. comfortable when wearing my gowns and enjoying Narces designer, Nikki Wirthensohn Yassemi, herself themselves.” “I have been surprised at the amount of walk-in traffic a painter, wanted to keep the artistic impression. She and husband/business partner Stefan Wirthenson we have had when the boutique is open to the public.” She added her own splashes on the floor, some neon chose the location because it serves clientele who Like many Canadian designers, even though she has lighting, velvet benches and enormous mirrors have a lifestyle that requires formal eveningwear a built considerable international business and decorated with flowers. and cocktail dresses for weddings, social events and regularly participates in runway shows, it is tough to Her sumptuous contemporary bridal gowns are galas. She offered custom fittings by appointment get local attention. Already she believes that having hung in alcoves on one side, and colourful, at her old studio and continues the practice at the a street-front retail presence helps to increase shimmery statement-making eveningwear pieces new location. awareness of the NARCES brand. 22 TRENDS 4January 2020
B RIK A A Transition to Turnkey Retail Solutions Artisan curator Brika announced plans last summer to reposition as a B2B marketplace provider. Since 2015, their POS, marketing, distribution and retail platforms have been proven in-house, at street popup events, at large retailers like Hudson’s Bay, and at shopping centres like Yorkdale and CF Square One. Brika now offers its own turnkey temporary retail solution covering staffing, interior design, inventory curation, merchandising, reporting, moving and storage. Brika can source appropriate vendors as part of a short-term shopping experience with a collective theme for customers planning to revitalize or fill vacant or low-traffic space. Brika created the ‘Wool Land’ popup in Yorkville Village Photo : K. Mogg Nordic Themed Mini Market Brika partnered with Yorkville Village to craft the ‘WoolLand Nordic & Noël Edit’, a popup mini market from late October to early January. A complimentary woolland.ca e-commerce site accompanied its launch featuring style influencer Liv Judd and Brika co-founder Jen Lee Koss who both have family connections to Norway and the Nordic lifestyle. Campisi said the event successfully combined a cold-weather theme with active outdoor fashion. “Winter weather was the synergy this time for the Wool Land brand from Norway and the related Nordic-themed products have done very well.” Forough compact tote by Zvelle, the Toronto-based brand of fine leather handbags and stylish shoes was among the retail pop- ups in Yorkville Village in late 2019. Canadian-made Apres sweater Brika's ‘Wool Land’ popup in Yorkville Village Photo Courtesy of GOGO Sweaters Photo : K. Mogg First Capital Realty Inc. Temporary Retail Is Ongoing The enclosed renovated shopping centre at Yorkville Village in Toronto is The popup retail phenomenon is not going away. As a mini-market curated by Canada’s premium retail mecca. Much of the nearby street-front retail space is providers such as Brika or as a retail space dedicated to an individual brand, owned by First Capital Realty Inc., one of Canada's leading developers owning popups are becoming the market expansion tool of choice for online retailers and operating mixed-use urban real estate. The company is also an active because it is a competitive solution in an era where digital marketing costs and co-owner and host of Toronto Fashion Week. Still, even a luxury mall owner clutter have escalated. It also benefits both the vendor and the property owner needs to drive steady foot traffic to its stores and to maximize rent on vacant or by combining physical and digital retail to conduct test marketing that leads to underutilized common space. a compelling product suited to the location and its shopper audience. “We have been working with Brika since 2016 to bring new brands and products Campisi expects Yorkville Village to continue to have popups in the smaller retail in short leasing inside Yorkville Village common areas.” ~ Melissa Campisi, spaces promoting brands that compliment but do not compete with other tenants. manager of strategic partnerships and event marketing at Yorkville Village “We have popups right now with Zvelle (fashion footwear and handbags) and First Capital has assets of $10.6 billion and an interest in 166 properties, about The Good Goddess (nutrition products, chic workout and après-gym wear), 25.1 million square feet of gross leasable area. The company reported a 96.7% which fit perfectly with the fashion and health and wellness interests of our occupancy rate on September 30, 2019 with a net rental rate increase of 11.8% clientele. They each have a strong online presence, but are not available over the previous year. anywhere else at retail in Toronto.” TRENDS 4January 2020 23
44 RETAIL SUCCESS ................................................................................................................................................................................................................................................................... ................................................................................................................................................................................................................................................................... ................................................................................................................................................................................................................................................................... ................................................................................................................................................................................................................................................................... S T YLEART I S T Style With Service Port Carling is the municipal centre of the District of Muskoka Lakes and has an established population of 6,588. The local Chamber of Commerce lists 38 shops. One might think the only fashion finds in Muskoka are casual t-shirts, shorts, boat shoes, and the occasional fleece hoodie for cool nights. So why did Catherine Abela open her first fashion-conscious StyleArtist retail location there? Photo Courtesy of StyeArtist The challenges of a short season, short-supply employees and online competition were some of the issues recently tackled at an event hosted by the Muskoka Small Business Centre featuring longtime retail consultant, Barbara Crowhurst. Corey Moore, the communications and economic development specialist for the Township of Muskoka Lakes, says that there isn’t much in the way of data or economic development grants to assist local business owner’s who are directed to the Chamber of Commerce for resources and training or to The Small Business Centre for loans through Muskoka Futures. The municipality along with two others in the area (Lake of Bays, Georgian Bay) and three BIA’s (Bracebridge, Gravenhurst and Huntsville), applied jointly and won a $60,000 grant from the Ontario program for digital transformation of small main streets. “The group received the Digital Main Street grant and we will be launching a program with a local squad in early 2020 to help local businesses develop their online presence,” Corey Moore confirmed in December. Testing the Waters - Timing Store Openings Abela is ahead of the game having first tested her retail concept online. “StyleArtist launched in 2017 as an online only shop, yet after the first year StyleArtist fashions on the dock of business we received many requests for an in-person shopping experience. at Duke’s Marina, Port Carling In 2018 we tested a couple of pop up shops, one in Muskoka and one in Photo Courtesy of StyeArtist midtown Toronto, and both proved successful.” “Spending a good part of my summers in Muskoka over the years, I recognized In 2019, Abela leased her first permanent small space in Port Carling’s historic an underserved market and the opportunity to bring a Toronto store to the Lakes. Duke’s waterfront marina, a busy hub of activity during the summer. The women spending their summers in Muskoka are largely my target customers, The 1930’s building was originally a boat repair workshop purchased in 2011 including existing clients.” by Kathy McCarthy and Jeremy Fowler who restored the building and divided it into several commercial spaces. Abela’s retail instincts were right. The Muskoka lakes are a summertime play- ground for Toronto area and international folk who have enjoyed the area’s Abela chose a location off the main shopping street as StyleArtist would be open waters and natural wonders since roads, steamships and railroads made the area only during the peak summer and shoulder seasons. Last spring, the opening more accessible around the time of Confederation. was delayed due to record flooding, but the store was busy every day - not just on weekends. Today, a more sophisticated Muskoka offers Pilates classes, shopping at marinas and popular dockside lunch spots. It boasts high-end associations such as ‘Cottage Country’ and ‘Hamptons of the North’. More luxury waterfront homes Social Shopping than rustic cabins now perch on the rugged landscape dotted with rocks, trees As a buyer for Town Shoes and Hudson’s Bay, Abela understood how today’s and historic retreats like the Victorian-era Windemere House on Lake Rosseau. customers prefer to shop and she developed a keen eye for spotting fashion that will sell. A travelling executive with a busy family life, she has developed some Local Knowledge and Resources practical tips for building a closet that makes getting dressed for work, leisure In summer, the population swells to 27,000. One can expect such a seasonal or travel less stressful. Above all, she recognized a need by some women to be boom of cottagers and visitors to benefit local businesses and, anecdotally fashionably dressed at work or on the dock without wasting time shopping for at least, tourism and residential construction businesses are booming. clothes. Not everyone enjoys endless scrolling online to find a suitable fashion However, data on tourist spending and consumer shopping patterns is lacking. and fit. Understanding such a highly seasonal market is critical to any retail business “Our business model is a little unique. A significant amount of our revenue plan and to retailers attempting to assess prospective locations. is generated through shopping parties and personal shopping appointments.” 24 TRENDS 4January 2020
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