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Discussions about the fashion industry thread

gdl203

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For one person willing to spend $1k for hot sneakers, there are many many more who want them as much (maybe more) but cannot afford that. People rotate out of their sneakers and look to ways to monetize stuff they don't wear to make room for the latest stuff they want. The second sneaker market is nowhere nearly as efficient as the BNIB resale market so there's unmet demand for a service that can operate that rotation. Added benefit: sneaker rental businesses could be both buyers and sellers of shoes that don't qualify for resale platforms (worn).

Ownership of goods is effectively dissociated from enjoyment for so much of what we spend already - I can see very few mental barriers, especially for younger consumers, to renting objects that are not expected to be used/worn for a long period of time.

Not saying that this particular business, its model or its pricing are right for that. No idea.
 

BlakeRVA

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The problem with sneaker rentals is the micro-trends and the rapid depreciation in perceived value when worn. Are people gonna really be interested in renting a pair of Yeezy's that released 7 months ago and have been worn 30+ times? Plus, the economics can make sense if you're able to get everything for retail, but would they really be able to buy 100, 200, or 500 pairs of hype shoes to make the service worthwhile? If not, they'll be playing into the resell game, which quickly drives up their service cost and makes it less attractive to prospective users.
 

blacklight

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$1,200 Dior sneakers, LV, and others appear to fly out of stores like Saks, BG, etc. Largely in cash sales.
I grew up with many of these guys. This isn’t a demographic would need to or even be interested in renting shoes. Sneaker heads more generally, sure.

Boosting culture still exists, it's just gone somewhat white-collar.
 

Epaulet

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The problem with sneaker rentals is the micro-trends and the rapid depreciation in perceived value when worn. Are people gonna really be interested in renting a pair of Yeezy's that released 7 months ago and have been worn 30+ times? Plus, the economics can make sense if you're able to get everything for retail, but would they really be able to buy 100, 200, or 500 pairs of hype shoes to make the service worthwhile? If not, they'll be playing into the resell game, which quickly drives up their service cost and makes it less attractive to prospective users.
For the first part, it looks like they're also a second-hand retail seller, so they could probably clean out old inventory once it becomes less desirable.

But your second comment... I was wondering the same thing. If the company can't acquire the product at retail, how do they maintain enough inventory? I guess that platforms like StockX make it simple enough to buy goods as long as you have the funds, but seems like a massive cash outlay for stock, and then considerable logistics and handling expenses.

My totally subjective and judgemental take: this is like taking everything that was once cool about sneaker culture and covering it in flaming manure. You could argue that Nike sucked the soul out of it it with their restricted production and distribution games, but watching this dude talk about sneakers on video was like hearing an in-depth scholarly analysis of DMX's songs on NPR.
 

sushijerk

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My totally subjective and judgemental take: this is like taking everything that was once cool about sneaker culture and covering it in flaming manure. You could argue that Nike sucked the soul out of it it with their restricted production and distribution games, but watching this dude talk about sneakers on video was like hearing an in-depth scholarly analysis of DMX's songs on NPR.
Sneaker culture has run kind of parallel to the evolution of art culture as written about recently by W. David Marx. https://culture.ghost.io/art-versus-commerce-in-the-nft-era/.

The appreciation of a sneaker within the culture is now impossible to separate from now much hype and resell it can command.
 

double00

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the secondary market acting as the primary distribution channel seems like one of the more perverse outcomes of the internet . markets no longer clear at some confluence of marginal cost and marginal utility , instead it's all about disembodied consumer surplus lol .

to me it's clearly unsustainable in a market sense , to say nothing of the ability ( willingness ? lmao ) of secondary markets to address externalities ( environment , equity etc ) .

renting sneakers is a further step away from consumers and producers communing directly in the marketplace , thus to me a further distortion of value . to put it another way the rental companies are extracting phantom value by propping up a mirage of scarcity that doesn't actually exist . the bubble will pop .
 

Fuuma

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Sneaker culture has run kind of parallel to the evolution of art culture as written about recently by W. David Marx. https://culture.ghost.io/art-versus-commerce-in-the-nft-era/.

The appreciation of a sneaker within the culture is now impossible to separate from now much hype and resell it can command.
David Marx (can't call him just Mark cause I mean....) seem to need to erase previous steps related to art mimicking a commercial enterprise (the easiest to spot being Warhol as failure and his successor Murakami as a success) so as to obtain clean breaks between his phases.
 

Parker

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he probably should have mentioned warhol in that, but it was still pretty insightful.
is that the same guy who wrote Ametora?
 

cb200

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Q1 earnings call from the GAP had some interesting comparables.
Can Kanye move the needle for them?

----------------------------------------------------------------------------------------------------------
Old Navy:

* Net sales of $1.8 billion, down 19% compared to last year. Sales in the
quarter were negatively impacted by size and assortment imbalances,
ongoing inventory delays, and product acceptance issues in some key
categories.
* Comparable sales were down 22%.

Gap:

* Net sales of $791 million, down 11% compared to last year. The brand was
slightly impacted by slowed demand stemming from inflationary pressures
impacting the lower-income consumer as well as continued inventory
lateness to last year. Growth at Gap Brand was also negatively impacted by
the COVID-related forced lockdowns and slowed overall demand in China.
* Global and North America comparable sales were both down 11%.

Banana Republic:

* Net sales of $482 million, up 24% compared to last year. The brand is
realizing the benefits of last year’s relaunch which is resonating with
consumers particularly in light of the near-term shift into occasion and
work-based categories.
* Comparable sales were up 27%."
 

Texasmade

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Q1 earnings call from the GAP had some interesting comparables.
Can Kanye move the needle for them?

----------------------------------------------------------------------------------------------------------
Old Navy:

* Net sales of $1.8 billion, down 19% compared to last year. Sales in the
quarter were negatively impacted by size and assortment imbalances,
ongoing inventory delays, and product acceptance issues in some key
categories.
* Comparable sales were down 22%.

Gap:

* Net sales of $791 million, down 11% compared to last year. The brand was
slightly impacted by slowed demand stemming from inflationary pressures
impacting the lower-income consumer as well as continued inventory
lateness to last year. Growth at Gap Brand was also negatively impacted by
the COVID-related forced lockdowns and slowed overall demand in China.
* Global and North America comparable sales were both down 11%.

Banana Republic:

* Net sales of $482 million, up 24% compared to last year. The brand is
realizing the benefits of last year’s relaunch which is resonating with
consumers particularly in light of the near-term shift into occasion and
work-based categories.
* Comparable sales were up 27%."
I usually don't shop at any of those places but have started shopping at BR again. I'm mainly buying casual chinos from them since they're decent enough without being too expensive.
 

jah786

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Q1 earnings call from the GAP had some interesting comparables.
Can Kanye move the needle for them?

----------------------------------------------------------------------------------------------------------
Old Navy:

* Net sales of $1.8 billion, down 19% compared to last year. Sales in the
quarter were negatively impacted by size and assortment imbalances,
ongoing inventory delays, and product acceptance issues in some key
categories.
* Comparable sales were down 22%.

Gap:

* Net sales of $791 million, down 11% compared to last year. The brand was
slightly impacted by slowed demand stemming from inflationary pressures
impacting the lower-income consumer as well as continued inventory
lateness to last year. Growth at Gap Brand was also negatively impacted by
the COVID-related forced lockdowns and slowed overall demand in China.
* Global and North America comparable sales were both down 11%.

Banana Republic:

* Net sales of $482 million, up 24% compared to last year. The brand is
realizing the benefits of last year’s relaunch which is resonating with
consumers particularly in light of the near-term shift into occasion and
work-based categories.
* Comparable sales were up 27%."
Kanye probably can move the needle short term but is GAP expecting Kanye customers to become GAP customers? GAP probably should have hired Jerry Lorenzo if they really wanted to remake the brand for a new generation of consumers for the long term.
 

Homme

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interview with the Antwerp 6 on BoF:


(you need an account to be able to read it)
 

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