The Business of Fashion Podcast

Many fashion brands are realising that operating across multiple cultural sectors is a business necessity. In our social feeds, fashion competes with music, film, and sports for our attention.Learning how to tap into other cultural sectors is something that many fashion brands are trying to do, but few have done it better than this week’s guests.At BoF VOICES 2024, BoF founder and CEO Imran AmedI spoke with Jens Grede, co-founder and CEO of Kim Kardashian’s Skims, the shapewear brand and David Allemann, co-founder and executive co-chairman of the Swiss sportswear company On, to learn how they’ve tapped into the cultural zeitgeist, especially at the growing intersection of sports and fashion. Key Insights: For both Grede and Allemann, the foundation of a successful brand lies in creating exceptional products. Grede emphasises the critical importance of innovation, crediting Skims’ success to years of fabric development before launching the brand. “Before a brand, there are products, and you can’t build a great brand without a great product,” he explains. Similarly, Allemann shared On’s origins, which began with a makeshift prototype crafted from a garden hose to test their signature “cloud tech” soles. Sports and fashion have become deeply interconnected, reflecting how cultural and personal identity have evolved. Allemann notes that, over the past 15 years, sportswear has transitioned from functional equipment to an extension of one’s personality, becoming a new uniform. “Because it becomes part of our personality, it’s elevated to a whole different level, and so in a sense, [sport] becomes fashion.” Athletes now use fashion as a platform to build their personal brands, with Grede describing it as “a superpower” that amplifies their influence beyond their sport. Tapping into culture is essential for brands looking to stay relevant and expand their influence. Grede describes building a brand as finding “a little part in this moment in popular culture,” which requires an understanding of the zeitgeist. For Skims, partnerships like their recent collaboration with Dolce & Gabbana push the brand into uncharted aesthetic territory while providing customers with something entirely new. On takes a similarly thoughtful approach, having turned Roger Federer from an ambassador into an investor. As brands grow, the decision to go public can be a significant milestone, but timing is critical. Grede acknowledges that Skims will eventually become a public company but stressed the importance of focusing on expansion and building away from the scrutiny of the public eye. Allemann shared advice from On’s IPO journey, describing the need to stay close to the customer: “On really tries to be very close to the consumer and be the brand that helps the explorers and the dreamers and probably even the rebels to ignite their spirit. I think that's what's really important right now.”Additional Resources:BoF VOICES 2024: Global Culture and Creativity The BoF Podcast | Jens Grede on Building Skims, Frame and the Future of FashionWhy On Running Could Be Worth $6 Billion | BoF Hosted on Acast. See acast.com/privacy for more information.

Resale is no longer confined to thrift stores or niche platforms; it has grown into a roughly $50 billion industry in the U.S. alone, by some measures. Platforms like Poshmark, The RealReal and Vestiaire Collective have transformed the experience, making it more accessible and attractive to consumers at every price point. At the same time, brands are increasingly stepping into the space, with some launching their own programs to resell returned or used merchandise, transforming what was once a reactive practice into a strategic business opportunity. And new start-ups hope to create a new secondhand market out of brands’ returned merchandise. Retail editor Cat Chen and e-commerce correspondent Malique Morris join senior correspondent Sheena Butler-Young and executive editor Brian Baskin to unpack the evolving resale landscape. Key Insights: The destigmatization of secondhand fashion is closely tied to convenience. “A large part of the equation is how easy it is to shop and sell secondhand,” explains Chen. “There are dozens of platforms that do peer-to-peer shopping options where you can buy something secondhand for, you know, at a fraction of the cost of retail where you can sell something that you've had for a while.… When resale is top of mind like that, I think the market adapts to that acceptance mentality.”But establishing a leading position in the market has proven difficult, despite rapid adoption. “The learning for operators of these platforms is that there’s very little consumer loyalty in this space,” says Chen. “When I consider selling something, I’m going to look at every single platform - whichever one gives me the quickest sale, the easiest sale, and the most money.” This dynamic has created a fiercely competitive landscape, with platforms racing to attract sellers by offering the best incentives. Bazar is taking a different approach to resale, stocking its marketplace with returned, goods brands would struggle to restock without refurbishment, including some fast fashion. “Bazar doesn’t go through the trouble of necessarily fixing items. It’s kind of listed as is, and customers get a ‘what you see is what you get’ experience,” says Morris. Additionally, Bazar allows fast fashion brands like Cider to offload inventory, which many traditional resale platforms avoid. “There is a level of transparency there which is supposed to be a part of the proposition of sustainability and a part of the proposition of resale as well.”As the industry develops, Morris envisions brands taking more ownership of resale, as platforms like Revive are already helping brands create their own resale programs to handle returned merchandise. Such efforts could turn resale into a sustainable, profitable venture, making it a key part of brand operations. “If resale can prove that it is an avenue for [brands] to achieve profitability … I can see it becoming a bigger priority brands which will make the shopping experience all the better for consumers."Additional Resources:Fashion’s Big Opportunity in Reselling the Unsellable | BoFShould Brands Stop Offering Free Returns? | BoF Hosted on Acast. See acast.com/privacy for more information.

In 2024, luxury e-commerce faced a harsh reckoning. A pandemic-era boom gave way to a bruising downturn that exposed deep-seated weaknesses, as rising marketing costs, excessive discounting, outdated technology management and intensifying competition hit profitability. MatchesFashion went into administration at the start of the year, shortly after it was sold off in a fire sale to Frasers Group. Farfetch’s share price plummeted by 98 percent, bringing the company to the brink of bankruptcy, only for it to be rescued by South Korea’s Coupang. Richemont sold off Yoox Net-a-Porter to rival luxury e-tailer Mytheresa in October, ending a years-long effort to offload the struggling business.This week on the podcast, Mytheresa CEO Michael Kliger and Lauren Santo Domingo, co-founder and chief brand officer of Moda Operandi, join BoF Founder and CEO Imran Amed on stage at BoF VOICES 2024. Together, they explore what went wrong in the luxury e-commerce sector, how they are navigating the ongoing luxury slowdown, and what comes next for the industry.“We didn’t know that this big slowdown in aspirational demand would happen, but we were well prepared,” Kliger said.Key Insights: What separates the winners and the losers in the luxury e-commerce reckoning comes down to preparedness, said Kliger. Mytheresa also “felt the pressures,” but the business was better suited to handle an environment laden with high inflation, high interest rates and middle-income shoppers retreating. Kliger added that he still believes in the viability of the luxury e-commerce model because “there is a consumer that wants to shop like that.” “Rumours of our demise have been greatly exaggerated,” added Santo Domingo. Despite the challenging market environment, some customers are still spending. E-tailers need to create desirability and find ways to attract shoppers to their platforms through curation, storytelling and other forms of differentiation. “They want from us more experience than just access to product,” said Kliger. “That’s why the brands want to be with us. We are brand enhancing,” echoed Santo Domingo. Mytheresa has also invested in optimising its marketing funnel to identify customers who are more likely to remain loyal over the long-term. “We’re not bidding for traffic. We’re not bidding for revenue. We’re bidding for customers,” said Kliger. The business built an algorithm to predict based on past purchases, addresses, types of payment, and time of purchase, whether a customer is likely to return, and they focus their marketing efforts accordingly. Additional Resources:BoF VOICES 2024: Fashion's Next Moves: Industry insiders including designers Simon Porte Jacquemus and Glenn Martens, H&M CEO Daniel Ervér, e-commerce executives Lauren Santo Domingo and Michael Kliger and more spoke about key challenges and opportunities for their businesses and fashion at large. Meanwhile, McKinsey provided an outlook for 2025. Hosted on Acast. See acast.com/privacy for more information.

When Simon Porte Jacquemus came on to the scene in 2009, he did so with a bang. The French designer’s playful take on Parisian fashion draws inspiration from 20th century sculpture, the French New Wave, and sunny afternoons in Marseille. His creations have catapulted him and his label into stardom, with the brand’s campaigns often going viral on social media. “It’s [all about] having fun,” said Jacquemus. “Having fun is being creative, it's going one step aside and it's playing with the system.”Jacquemus has been able to build on the social media buzz and create an independent label garnering more than 200 million euros ($210 million) in annual turnover. His fashion shows have been staged in picturesque locations across France, including the Chateau Versailles. In October, he opened his first store in New York City, drawing crowds akin to those mostly reserved for movie stars. This month, he opened another location in London, part of the designer’s plans for a global retail expansion. At VOICES 2024, BoF founder and CEO Imran Amed sits down with Jacquemus to discuss how the designer has been able to build a successful independent business in the competitive luxury sector and amidst a consumer downturn. Key Insights: Jacquemus credited creating attention and buzz in unconventional ways for the success of his brand and his ability to remain independent for 15 years. The designer recalled staging his debut runway show disguised as a fake protest outside of a Dior boutique on Avenue Montaigne as a media stunt that gained him notoriety early in his career. “I only had one rule when I [started]. I need to be visible,” he said. Jacquemus said his love for imagery and the hit TV show “Sex and the City” inspired to go into fashion. “I wanted to build images and create the sensation of a young boy looking at magazines,” the designer said. This fascination with imagery has translated to the brand’s social campaigns, namely the CGI versions of the label’s signature purse Le Bambino roaming through the streets of Paris. The brand’s design codes deviate from traditional luxury fashion, in that Jacquemus wanted his designs to appeal to ultra-luxury shoppers as well as mass consumers. “I [wanted] to do something everyone can understand – the post guy, my grandmother. And references to niche things.”Now, the designer wants to transport his feelings of familial bliss and his childhood in the south of France to his retail locations around the world. “I want them to feel like home,” he said. The design elements of the brick-and-mortar stores call back to Provence with soft linens, high windows and traditional furniture. As the CEO of the brand, Jacquemus said he finds he may often lean more toward the business side than the creative side. This is something he wants to balance in the near future. “I’m interested in everything,” he said. “I wake up every morning looking at the sales, not because I love money but because I want my work [to become] something real.”Additional Resources:Jacquemus: A Fashion Star's Business VisionJacquemus Is Seeking a Minority InvestorThe Debrief | What Makes Jacquemus So Successful? Hosted on Acast. See acast.com/privacy for more information.