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Having experienced a slowdown in 2023, luxury store openings across the world are expected to rebound in 2025. With consumer spending appetite returning during the year, more properties are expected to become available during the year, according to a forthcoming report from international estate agents Savills.
The report recommends, luxury brands expand beyond capital cities and popular leisure destinations, and consider opening stores in emerging affluent regions across China, India, and Dubai.
Anthony Selwyn, Co-Head-Global Retail, Savills, emphasises, widening of the global luxury landscape will uncover new opportunities for retailers, encouraging them to further engage with their customers.
Despite a 13 per cent year-over-year decline in global luxury store openings in 2023, certain regions showed resilience as brands mostly targeted domestic audiences.
Luxury store openings in the Asia-Pacific region increased 31 per cent Y-o-Y, accounting for 17 per cent of global openings, during the year. This growth was led by China with 41 per cent of the global store opening. However, this pace later slowed to 12 per cent Y-o-Y due to weaker demand and fewer real estate opportunities.
Driven by higher tourist spending, a weaker yen and relaxed visa restrictions for the Mainland Chinese tourists, Tokyo and Singapore together accounted for 40 per cent of the store openings in the Asia-Pacific region
New stores across North America also boomed with New York leading with 12 per cent Y-o-Y growth compared to the previous year. This was followed by store openings in Los Angeles and other affluent cities, and leisure resorts around Atlanta, Dallas, Chicago, and Aspen.
However, store openings across lagged with a 17 per cent Y-o-Y decline in openings, primarily due to limited availability in key luxury streets after an 83 per cent surge in 2022.
Marie Hickey, Director-Commercial Research, Savills, attributed the 2023 slowdown to a normalisation after a significant post-pandemic expansion, particularly in China. She noted weaker consumer confidence and spending in China, coupled with availability constraints in prime luxury locations in Europe, North America, and the Middle East. Hickey expects this trend to continue into early 2025.
Despite the challenges, luxury brands continue to optimise their real estate portfolios, particularly in future growth markets in Asia and the Middle East. However, larger luxury groups with mature store portfolios are expected to be more selective in their expansion strategies.
Savills identified cities underserved by luxury brands relative to their market size and wealth. In China, cities like Shenzhen, Hangzhou, and Wuhan offer significant potential due to their growing affluence and lower occupational costs, compared to more saturated markets like Shanghai and Beijing. Other promising markets include Mumbai, Delhi, Jakarta, Bangkok, and Dubai, which all exhibit significant growth and affluence yet remain relatively underrepresented by luxury brands.
Copenhagen Fashion Week has unveiled its lineup for the SS25 season, featuring 46 brands and institutions set to showcase their collections in August 2024. This edition promises to continue the momentum of previous seasons with a diverse range of runway shows and presentations.
Notably, for the first time, the official schedule will merge runway shows and presentations, allowing for more expressive formats and reflecting the evolving creative landscape of the Nordic fashion industry. This change underscores Copenhagen Fashion Week’s position as a leading global fashion event.
Among the highlights is the introduction of Berner Kühl to the CPHFW NewTalent program He joins Alectra Rothschild / Masculina, Stamm, and Rolf Ekroth, who will present his third and final showcase within the scheme. The schedule also includes established names like A. Roege Hove, Jade Cropper, Latimmier, and Rabens Saloner, alongside an exciting mix of new designers over the four-day event.
Sinéad O’Dwyer has been awarded the prestigious Zalando Visionary Award 2024. This annual award recognises exceptional creativity, social impact, and innovation in fashion design. O'Dwyer was chosen for her innovative and avant-garde creations that challenge traditional boundaries, celebrating themes of identity, body positivity, and self-expression.
As part of the award, O’Dwyer will receive a €50,000 prize and support from Zalando for her show production. Her collection will debut at Copenhagen Fashion Week in August 2024, marking her runway debut in Copenhagen. The recognition emphasizes her dedication to diversity and innovation in fashion.
Global leader in athletic apparel and footwear, Adidas has officially entered the burgeoning market of Bangladesh with the inauguration of its flagship store in Dhaka’s Gulshan district. This milestone, involving a 4,000 sq ft retail space, was made possible through a collaboration with DBL Group.
The newly opened store is designed to cater to both dedicated athletes and lifestyle enthusiasts, offering a premium shopping experience. The state-of-the-art store represents a dedicated space for discerning athletes and enthusiasts seeking to elevate their active lifestyles and everyday wardrobes.
The store features a thoughtfully curated collection of Adidas Originals apparel, appealing to those who value a seamless blend of comfort and sophisticated style. From iconic streetwear classics to trend-setting pieces, the store offers patrons can deal ensemble to express their individuality in any setting.
This flagship store marks a significant step for Adidas in expanding its presence in South Asia, aiming to meet the growing demand for high-quality sportswear and fashion in Bangladesh.
ColossusTex continues to lead the fabric production sector, setting new benchmarks in sourcing, marketing, and logistics. With a meticulous approach, ColossusTex simplifies the complexities of the global fabric market, offering customers a superior experience.
ColossusTex excels in sourcing premium Aramid Yarn from India, renowned for its exceptional strength and heat-resistant properties. This high-quality yarn is vital for industries like aerospace and defense, ensuring reliability and confidence in innovation.
ColossusTex unveils Graphene Yarn, revolutionizing fabric crafting. This innovation boasts antibacterial properties inhibiting growth and eliminating odors. Additionally, its far-infrared technology enhances circulation and exhibits impressive antiviral properties, including against SARS-CoV-2, H1N1, and HFMD.
ColossusTex's Sewing Threads meet the highest industry standards, enhancing product quality and durability, whether for fashion or industrial applications.
ColossusTex's advanced infrastructure and global network ensure seamless logistics, minimizing lead times and costs while enhancing customer satisfaction through efficient product delivery.
As an industry leader, ColossusTex simplifies the textile journey with its expertise in sourcing, marketing, and logistics. Elevate your fabric experience with ColossusTex, where excellence is woven into every aspect of the process, delivering unparalleled value to customers worldwide.
In 2023, luxury store openings worldwide experienced a slowdown, dropping by 13 percent says a report by Savills, a global estate agency. However, prospects for 2025 appear promising as more properties become available and consumer spending rebounds.
The report advises luxury brands to explore beyond traditional locations like capital cities and leisure destinations, suggesting opportunities in affluent regions like China, India, and Dubai.
Anthony Selwyn, Co-head of Global Retail at Savills, emphasized the potential for growth, urging brands to seize opportunities in an expanding luxury landscape. Despite the overall decline, certain regions saw increased activity. The Asia-Pacific region witnessed a notable 31 percent rise in luxury store openings, with China dominating despite a slowdown in activity.
North America also experienced growth, particularly in cities like New York and Los Angeles. However, Europe lagged behind with a 17 percent decline, attributed to limited availability in prime luxury locations following an 83 percent surge in openings in 2022.
Marie Hickey, director of Commercial Research at Savills, attributed the slowdown to the normalization of markets following the pandemic-induced surge in store expansions, especially in China.
Despite short-term challenges, Hickey noted an enduring appetite for luxury brands to optimize their real estate portfolios, especially in emerging markets like Asia and the Middle East.
The report identified cities such as Shenzhen, Hangzhou, and Wuhan in China, along with Mumbai, Delhi, Jakarta, Bangkok, and Dubai, as underserved markets ripe for luxury store openings due to their size, growing affluence, and relative lack of luxury brand presence.
Overall, the report underscores the resilience of the luxury retail sector and the importance for brands to strategically expand into emerging markets to capitalize on future growth opportunities.
Edited has unveiled its Education Partner Program, aiming to integrate its Retail Intelligence Platform into educational curriculums worldwide.
This initiative empowers students and educators by providing access to real-world retail data, fostering practical skills for the dynamic fashion industry.
Sheng Lu, Director of Graduate Studies at the University of Delaware's Fashion and Apparel Studies program, lauds the partnership, highlighting how Edited transforms learning experiences.
By leveraging Edited's analytics tool, students gain insights into industry trends and business strategies, honing their analytical prowess.
CMO Shellie Vornhagen underscores the program's significance, emphasizing Edited's commitment to nurturing future retailers.
Through collaborations with educational institutions, Edited seeks to equip students with essential skills for thriving in retail and fashion careers, bridging the gap between academia and industry.
Retail giant Gap has launched a new collection of women’s and kids’ apparels and accessories in partnership with California-based clothing label Dôen.
Slated to release on May 17, 2024, the collection spans 51 clothing pieces in denim and khaki. The collaboration encapsulates the essence of both brands, blending Gap's timeless essentials with Dôen's feminine, California aesthetic. From matching sets to dresses, denim, loungewear, and accessories adorned with floral motifs, eyelet detailing, and flowing silhouettes, the collection embodies understated elegance and charm.
Available in adult sizing, the assortment features shared styles and prints in kid, toddler, and baby sizing.
Mark Breitbard, President and CEO, Gap, says, the brand’s collaboration with Dôen celebrates a feminine aesthetic brought to life through some of its most-loved essentials.
The collection launches with a campaign fronted by model Lily Aldridge and her sister, singer and model Ruby Aldridge, alongside 11-year-old twin sisters Levia and Zahar. Captured by photographer Dan Martensen, the campaign imagery and accompanying film capture the playful bonds between sisters.
In response to the Biden administration's announcement on the U.S. Trade Representative Office's review of Section 301 tariffs, Kim Glas, President and CEO of the National Council of Textile Organizations (NCTO), emphasized the urgent need for stronger measures against China's trade practices. The administration's decision to uphold penalty tariffs on finished textiles and apparel imports from China and to escalate tariffs on specific personal protective equipment (PPE) imports was deemed a necessary step by Glas.
However, Glas lamented the missed opportunity to address China's continued dominance in the US textile market and its detrimental impact on domestic manufacturers and workers. With market conditions rapidly deteriorating due to China's dumping practices, Glas urged the administration to take action to level the playing field. This includes further increasing tariffs on finished textile and apparel imports and certain inputs to counter China's unfair advantages.
The statement highlighted the critical role of the domestic textile industry in national security, particularly as a supplier of essential PPE items. Glas warned that unchecked Chinese trade practices, coupled with ineffective enforcement and trade policies, are jeopardizing the future of domestic manufacturing.
Glas underscored the alarming trend of increased Chinese textile and apparel shipments to the US, compared to significant declines from key trade partners in the Western Hemisphere. This trend signals China's growing dominance in global markets through subsidized and illegal exports.
While acknowledging the administration's efforts to increase tariffs on various Chinese imports, Glas urged for similar action on finished textile and apparel imports to safeguard the American textile industry. The statement emphasized the need for meaningful measures to address China's predatory behavior and protect critical jobs in the industry.
In conclusion, the NCTO called for decisive action to ramp up tariffs on finished textile and apparel imports from China to restore competitiveness and counteract China's destructive trade practices.
In a move aimed at bolstering domestic industries, the Mexican President signed a decree on April 22, 2024, establishing temporary import tariffs on textiles, apparel, and footwear. These tariffs, ranging from 5per cent to 35per cent, are intended to level the playing field for Mexican manufacturers facing competition from cheaper imports. This decision comes after the Mexican government expressed concerns about unfair competition faced by domestic manufacturers in these sectors.
The decree applies to a total of 544 tariff item. The specific tariff rates vary depending on the product category. For textiles, apparel and footwear 35per cent tariff have been imposed. Other products (including wood, plastics, steel, aluminum) it varies between 5per cent and 50per cent. The temporary tariffs will be in effect for two years, expiring on April 22, 2026. This timeframe aims to provide domestic producers with a window of opportunity to strengthen their competitive edge. The new tariffs are essential to create a level playing field for our textile, apparel, and footwear industries, say industry experts.
Impact on consumers and trade relations
The increased tariffs are likely to lead to higher prices for consumers who purchase imported textiles, apparel, and footwear. Additionally, this move could strain trade relations with countries that export these goods to Mexico, particularly those without existing free trade agreements.
The decree also offers some exemptions. Goods imported from countries with free trade agreements with Mexico, such as the US and Canada, will not be subject to the new tariffs provided they meet the agreements' stipulations. Proponents of the tariffs believe they will stimulate domestic production, create jobs, and foster the growth of the targeted industries. However, critics argue that the tariffs could ultimately harm consumers and lead to higher inflation.
Table: Tariff rates
|
Industry |
Tariff rate |
Valid until |
|
Textiles |
35% |
April 22, 2026 |
|
Apparel |
35% |
April 22, 2026 |
|
Footwear |
35% |
April 22, 2026 |
Mexican textile, apparel, and footwear manufacturers have welcomed the move. “This is a positive step towards protecting Mexican jobs and revitalizing our domestic industries,” says Gabriela Martinez, President of the Mexican Textile and Apparel Association. “The temporary tariffs will provide us with the breathing room we need to invest in innovation and improve our competitiveness.” However, concerns have been raised by importers and foreign businesses. They argue that the tariffs will ultimately lead to higher prices for consumers and potentially disrupt established supply chains. “These tariffs will create uncertainty and make it more difficult for businesses to plan,” said David Hernandez, a spokesperson for the National Chamber of Importers. “The increased costs will likely be passed on to consumers, putting a strain on household budgets.”
The Mexican government maintains that the tariffs are a necessary measure to protect strategic domestic industries and create a fairer trade environment. The two-year timeframe is intended to provide a temporary boost while allowing domestic producers to invest in long-term competitiveness. The ultimate impact of the tariffs on the Mexican economy and its trading partners remains to be seen.
The world of luxury fashion has long held a complex relationship with outlet stores and malls. While some high-end brands like Louis Vuitton, Hermès, Chanel remain fiercely independent, others have embraced the outlet model with varying degrees of success. Coach and Ralph Lauren serve as cautionary tales, their over-reliance on outlet discounts tarnishing their brand image.
However, the tides are turning. The pandemic, coupled with growing inflation and supply chain disruptions, has forced a re-evaluation. Luxury brands, both established and emerging, are finding a renewed purpose for outlets within the luxury retail landscape.
Outlet sales surge, bright spot in luxury retail
Bain & Company data shows since 2021, luxury outlet sales have skyrocketed 35 per cent, reaching a staggering $50 billion. This meteoric rise makes it the fastest-growing segment within the $387 billion global personal luxury goods market.
While outlets still represent a smaller slice of the pie compared to dominant channels like monobrand stores and online sales (13 per cent vs. 56 per cent combined), their growth trajectory is undeniable. Notably, monobrand/online channels, though significant, grew at a slower pace (27).However, outlet malls have emerged as a solution, allowing budget-conscious consumers to access coveted brands at discounted prices.
Meanwhile, outlet mall traffic has grown steadily, rising 11 per cent year-on-year in March 2023 reveals Placer.ai. Notably, this outpaces the growth observed in traditional indoor malls (10 per cent) and open-air shopping centers (10 per cent). Interestingly, outlet malls attract a broader audience, including "Promising Families" - young couples with rising incomes - according to Placer.ai.
A Bank of America survey highlights Gen Z's (aged 18-26) growing budget consciousness due to inflation. This generation prioritizes value without compromising on quality, making outlet malls a compelling destination for acquiring coveted brands at discounted prices.
The driving force behind this resurgence lies in changing consumer behavior. Today's shoppers crave the thrill of a luxury purchase, but with a healthy dose of financial prudence. Inflation has pushed prices upwards by 15 per cent since 2021, prompting a strategic shift. The Wall Street Journal even suggests luxury goods have witnessed price hikes far exceeding average inflation rates.
While outlet malls traditionally attracted lower-income shoppers compared to traditional malls, Placer.ai identifies a new demographic driving the trend: ‘Promising Families’. These young couples, on the cusp of higher earning potential, are strategically utilizing outlets to access quality brands at a discount.
Adapting to the evolving retail landscape
"Coming out of Covid, the customer shops completely different than they did before," observes Stephen Yalof, CEO of Tanger Outlets, a leading player in the premium outlet mall space. Yalof recognizes the need for a holistic shopping experience. He acknowledges the drawbacks of traditional outlet locations and the importance of catering to the entire family.
Tanger's solution, Introducing experiential amenities typically found in open-air shopping centers, like restaurants and cafes. Their newly opened Nashville outlet in the US boasts of a Shake Shack, a brewery, and a coffee shop, alongside the usual shopping options. This strategy goes beyond mere discounts, creating a destination experience that attracts a wider audience.
The jury is still out on whether this is a permanent trend. However, data suggests a clear opportunity for luxury brands to reach new customers and boost sales through strategic outlet partnerships. As the retail landscape continues to evolve, outlet malls could become a more prominent fixture in the luxury fashion ecosystem, offering a unique blend of affordability and brand aspiration.
