Online trend: Between polarisation and the challenges of desirability

On Thursday, Zalando held its “Partners Day” in Paris, bringing collectively 280 executives and representatives of the platform’s French manufacturers and companions. The occasion provided a possibility to take inventory of French on-line attire gross sales, in addition to present traits in trend, from luxurious to price range.

Under the vibrant glass roof and gilding of the Hôtel d’Évreux, a big cross-section of the French attire and magnificence business convened, alongside a quantity of on-line gross sales specialists and commerce federation representatives. While the morning featured a number of experience-sharing classes from manufacturers similar to Salomon, Soeur and Kendo Paris, the varied market analyses lent the occasion the stature of an business summit. Zalando was there to exhibit its dedication to the business.

“In terms of our infrastructure, there are still many synergies to develop. The priority is to continue investing in the customer experience,” defined co-founder David Schneider, who travelled from Berlin for the event.

“We believe a new era is dawning for fashion retail. The customer experience will be very different in a few years’ time. Our ambition is to help shape this wave, because many innovations are emerging and there are many frontiers to push.”

Online trend gross sales in France have risen by 6% in quantity this 12 months, in response to figures introduced for the occasion by Guillaume Coudry, NielsenIQ’s e-commerce supervisor for Western Europe. Growth was additionally reported in sport (+10%), magnificence (+5%) and designer attire (+6%). He additionally notes that whereas the common basket worth has fallen to €48, this decline is offset by a rise in buy frequency, now at 8.2 per 12 months.

“Marketplaces continue to gain market share in online fashion sales, while direct-to-consumer is losing ground. The challenge for brands is to reposition themselves strategically within this ecosystem,” emphasises Guillaume Coudry, who flagged a brand new participant to observe carefully: TikTok Shop.

“It remains very limited in France, but it’s a real breakthrough for commerce, with inspiration and purchase converging. It’s a massive phenomenon that is gaining momentum,” stated the professional, who factors out that Puma is at present the solely clothes model to make it into the Top 30 best-selling manufacturers on the Chinese social community.

Luxury and the problem of desirability

Xavier Romatet, managing director of the Institut Français de la Mode, identifies two main challenges affecting the luxurious sector: on the one hand, the slowdown in the two markets which have lengthy been the fundamental drivers, China and the United States; and on the different, a difficulty linked to cost traits, with worth rises accounting for 80% of post-Covid gross sales progress.

“Behind this phenomenon lies the question of desirability: why would a customer agree to pay €3,500 for a product that previously cost €3,000?” analysed the specialist. For him, the two levers of desirability are creativity, stimulated by the current reshuffle of inventive administrators, and high quality: the client expects an costly piece to final over time.

The head of IFM additionally recognized a quantity of decisive social points for the sector’s future, chief amongst them the social and environmental accountability of merchandise, in addition to the affect of expertise — and synthetic intelligence particularly — on the worth chain. The specialist additionally pointed to a brand new relationship with possession and possession, which can make the model expertise all the extra central. “The problems are well identified; it is the answers that have yet to be devised,” confused Romatet.

Polarisation and ultra-fast trend

This evaluation of the luxurious sector chimed with the NellyRodi company’s statement that the market is changing into more and more polarised. Its director, Pierre-François Le Louët, pointed to a widening hole between entry-level and top-end merchandise, pushed particularly by the Chinese participant Shein, which is pushing entry-level costs down. And whereas the future of the fast-fashion invoice, criticised by the European Commission, stays unsure, the man who additionally co-chairs the UFIMH (Union française des industries de la mode et de l’habillement) notes that the finance invoice introduced on October 15 offers for a €2 tax on small non-European parcels, at present exempt from tax.

“Brands that believe that Shein has no impact on them are completely mistaken,” stated the specialist.

“Shein is imposing a new way of behaving and shopping online, and setting new benchmarks in terms of technology, pace, communication, pricing and consumers’ mindset. But there is also a modest revival among certain retailers: polarisation will, paradoxically, give a little breathing space to the various price tiers that invest in understanding the customer and the brand experience.”

In passing, the supervisor refers to the imminent arrival of Shein at BHV, “which now resembles an extremely empty department store under Brezhnev”.

This comes only a few weeks after the signing of an settlement between European federations in opposition to ultra-fast trend.

“Our small French initiative has triggered a wave of European initiatives,” stated Le Louët with satisfaction, citing measures taken by Italy, Sweden and Portugal, whereas the European Commission is step by step taking on the situation.