February 10, 2016
Photo: Burberry
Burberry shocks the industry, going direct from runway to consumer
Burberry last week shocked the fashion world by announcing that, beginning in September, its runway shows would feature “wear-now” items — product that can be bought by consumers immediately. Traditionally, consumers have had to wait four to six months until catwalk collections were available in stores.
Others have also been experimenting with showing in-season designs or not showing publicly at all until the season hits. But Burberry would by far be the biggest fashion house to do so. Should others follow suit, wear-now runways would dilute the influence of fashion magazines and change how buying overall is done.
“The show will become a big marketing and selling tool, not for department stores or glossy magazines, but for direct communication between the brand and the men and women who want to buy it,” wrote Vanessa Friedman for the New York Times.
The change has been prompted by a number of new trends: the live-streaming of runway shows; the enabling of purchases straight from runways; and social media campaigns highlighting runway looks which have already turned the presentations into consumer events.
Burberry chief creative and executive officer Christopher Bailey told Women’s Wear Daily, “You can’t talk to a customer and say, ‘We’re really excited, we’re going to stimulate you and inspire you, but you can’t touch it or feel it for another six months.’”
Selling items closer to runway hoopla is also hoped to discourage consumers from waiting for the inevitable sale to buy.
On the downside, smaller designers need the four to six months to secure wholesale orders and produce the goods. Burberry benefits from selling largely in its own stores and has its own factories and other means to handle quicker turnarounds.
But Burberry apparently won’t be promoted in the fat glossy fashion magazines detailing the season’s trends. Fashion magazines also traditionally help guide store buys and drum up excitement around the trends and designer names.
“It’s been the critics reporting, and the buyers responding to that,” Sarah Mower, the British Fashion Council’s ambassador for emerging talent and a critique of Vogue, told The Guardian. “Now the consumer is the critic.”
- Burberry announces changes to its runway and retail calendar – Burberry
- Burberry’s Bold Move: To Make Shows Direct to Consumer – Women’s Wear Daily (sub. required)
- Burberry to sell styles straight from catwalk in fashion shakeup – The Guardian
- Burberry’s Latest Move Could Change the Fashion System – New York Magazine
- Burberry Announces a See Now/Buy Now System for New Collections – The New York Times (tiered sub.)
BrainTrust
Paula Rosenblum
Co-founder, RSR Research
Mohamed Amer, PhD
Strategy Advisor, CEO & Co-Founder, BridgeCommAI
Recent Discussions
Discussion Questions
Should retailers welcome a move to show more wear-now merchandise at runway shows? If this trend takes hold, how do you see it changing brands’ relationships with the consumers?
Poll
We have another example of fast fashion disrupting the industry here.
The current scenario is that after the runway, the knock-offs appear months before the actual product shown (or its derivative).
This change will give Burberry (and its retailers) an edge in selling “the real thing.”
Make no mistake about it — it is the consumers that will be changing the relationships with brands and retailers.
The power has forever shifted to today’s omnichannel consumers. They are now in a position to trade off speed versus exclusivity. Yes, there will continue to be consumers that still want exclusive designs and and will wait for them. But Burberry is very smart in differentiating its fashion options that enable speed to consumers that want that choice.
Woe be to any brand that does not understand the power of the consumer — and the power of the vote of their “wallet”/card.
The real issue for me is, when will food retailers get on the new item bandwagon? Each year thousands of new items are present to food retailers and only a small percentage gain wide distribution. When a shopping experience is considered boring and with online shopping with store pickup growing in importance, where is the new item boardwalk? Manufacturers must consider expanding their direct consumer communication for advertisements to real relationships. Proof of sale for new items would be a far superior new item presentation than agreeing to pay a slotting allowance.
Paula’s correct. One effect of this decision will be to stymie the fast-fashion players who are stealing market share from just about everyone else.
Consumers who value immediate or near-immediate gratification should swarm all over this concept. Burberry knows that its customer base skews young, and this step should send them a message.
Disrupting the status quo is expected from young, brash start-ups. large and well established players are expected to protect existing structures and traditions.
Burberry is a visionary trail blazer when it comes to defining their relationship with the consumer. Anytime the retailer and brand get closer to the consumer, the more efficient the value chain becomes and the greater relevance they will garner with their customers.
If you think today’s “channels” are blurred, the near future will be positively dizzying!
Historically, the runway has never been for the consumer. It was the season’s coming out showing for the press and most of all the fashion magazines. The process was a long process. Flash the picture on the runway and at best four months later it showed up in Vogue.
Today I can watch that runway show live. The pictures are instantly Instagrammed. Not within months, weeks, days or even hours, the world knows what the latest fashion is now.
I see it. I like it. I WANT IT! Why should I wait six months? Heck, I probably will forget about it by then. The internet has changed everything and the retailers’ relationship with the customer just keeps getting closer and closer. It can not be ignored.
This is a great idea! First, it brings more value to the shows by bringing it closer to the sales. Second, this will create interest in a much wider audience for the shows getting more people interested in watching them.
The consumers spending the bigger bucks deserve to have the item before the knock-off. Kudos to Burberry on this one. Their consumers will love them for doing this and I would expect to see more come on board. Will it stop fast fashion? Not a bit. These are very different shoppers.
For my 2 cents.
I’d be shocked if any retailer welcomes this move. Retailers will need to adapt to this new scenario where to avoid being scooped by the brand when the customer buys directly, they must commit to a buy without the benefit of the feedback from critics and consumers, which is normally available before retail buyers place their orders.
The balance-of-power has been shifting away from retailers toward brands for a long time. This continues that trend and further strengthens the connection between the label and consumers.
Despite all the retail disruption and challenges (store closings, revenue goals not met, boring assortments) Burberry shows us that retail can still be fun and offer surprises. Good for them!
Runway fashions typically are over dramatic and frequently are changed somewhat for wearability for regular people before they hit stores. I am not talking here about knock-offs, but changes made by designer labels themselves or customized at the request of fashion department buyers. I wonder how that’s going to work in this scenario. Will customers flock to the over-the-top runway fashions or will runway fashion gradually just become less over-the top from the get-go? In short order, will store buyers be shown to have had considerable value in helping designers customize fashion for salability to regional tastes, or will the buyers be shown to have been part of the problem in neutralizing some of the designers’ art and making everything look the same?
I can’t wait to see how this turns out!
Absolutely. Consumers play/shop in the “now,” and waiting six months is given them the ability to shop for alternatives or have another brand win the consumer’s dollars.
Consumers have and will continue to change the purchase dynamics and relationships with brands. In a time sensitive category like fashion, eliminating the lag can only be beneficial.
The consumer is today’s CEO — they live in a digitally connected world that provides instant access to information, products and services. The old runway model that showed seasonal collections and six months later made those products available is no longer a viable option for today’s always-on, digitally-savvy consumer. The see-now/buy-now collection model closes the gap between runway experiences and when customers can buy, allowing brands to seize the moment when consumers are excited about what they are seeing and experiencing. Not only does the see-now/buy-now model lead to potential new revenue opportunities, it also allows brands to build deeper customer relationships based on real-time customer insights into what products and experiences speak to them.
I do believe we will see this trend advancing as retailers and certain brands seek to further engage, excite and strengthen relationships with the consumer. As businesses look to bridge the gap between physical and digital realities, they need to think about how to provide greater significance to the shopper’s journey. This transformation involves connecting a ubiquitous channel of consumer experiences to decode what is relevant to the customer and an ability to deliver not only that, but more.
Smart move! Why stir up demand for products you can deliver? And why let other more nimble cons, ie: fast fashion, steal your buzz, products, customers (sales and profits). Fast Fashion indeed!
More Discussions
How Timely Is the Planned Lowe’s Website Renovation Focusing on Personalization?
Is Lowe’s being timely with its website reno, and is it right to be placed as…Should Costco Be Opening Members-Only Gas Stations?
Is this the right move for the warehouse club?As Boomers ‘Age Out of Peak Purchasing,’ How Can National Brands Retain Interest With Gen Z?
According to a recent First Insight study titled “Is Gen Z Still Choosing Your Brand,” while…
We have another example of fast fashion disrupting the industry here.
The current scenario is that after the runway, the knock-offs appear months before the actual product shown (or its derivative).
This change will give Burberry (and its retailers) an edge in selling “the real thing.”
Make no mistake about it — it is the consumers that will be changing the relationships with brands and retailers.
The power has forever shifted to today’s omnichannel consumers. They are now in a position to trade off speed versus exclusivity. Yes, there will continue to be consumers that still want exclusive designs and and will wait for them. But Burberry is very smart in differentiating its fashion options that enable speed to consumers that want that choice.
Woe be to any brand that does not understand the power of the consumer — and the power of the vote of their “wallet”/card.
The real issue for me is, when will food retailers get on the new item bandwagon? Each year thousands of new items are present to food retailers and only a small percentage gain wide distribution. When a shopping experience is considered boring and with online shopping with store pickup growing in importance, where is the new item boardwalk? Manufacturers must consider expanding their direct consumer communication for advertisements to real relationships. Proof of sale for new items would be a far superior new item presentation than agreeing to pay a slotting allowance.
Paula’s correct. One effect of this decision will be to stymie the fast-fashion players who are stealing market share from just about everyone else.
Consumers who value immediate or near-immediate gratification should swarm all over this concept. Burberry knows that its customer base skews young, and this step should send them a message.
Disrupting the status quo is expected from young, brash start-ups. large and well established players are expected to protect existing structures and traditions.
Burberry is a visionary trail blazer when it comes to defining their relationship with the consumer. Anytime the retailer and brand get closer to the consumer, the more efficient the value chain becomes and the greater relevance they will garner with their customers.
If you think today’s “channels” are blurred, the near future will be positively dizzying!
Historically, the runway has never been for the consumer. It was the season’s coming out showing for the press and most of all the fashion magazines. The process was a long process. Flash the picture on the runway and at best four months later it showed up in Vogue.
Today I can watch that runway show live. The pictures are instantly Instagrammed. Not within months, weeks, days or even hours, the world knows what the latest fashion is now.
I see it. I like it. I WANT IT! Why should I wait six months? Heck, I probably will forget about it by then. The internet has changed everything and the retailers’ relationship with the customer just keeps getting closer and closer. It can not be ignored.
This is a great idea! First, it brings more value to the shows by bringing it closer to the sales. Second, this will create interest in a much wider audience for the shows getting more people interested in watching them.
The consumers spending the bigger bucks deserve to have the item before the knock-off. Kudos to Burberry on this one. Their consumers will love them for doing this and I would expect to see more come on board. Will it stop fast fashion? Not a bit. These are very different shoppers.
For my 2 cents.
I’d be shocked if any retailer welcomes this move. Retailers will need to adapt to this new scenario where to avoid being scooped by the brand when the customer buys directly, they must commit to a buy without the benefit of the feedback from critics and consumers, which is normally available before retail buyers place their orders.
The balance-of-power has been shifting away from retailers toward brands for a long time. This continues that trend and further strengthens the connection between the label and consumers.
Despite all the retail disruption and challenges (store closings, revenue goals not met, boring assortments) Burberry shows us that retail can still be fun and offer surprises. Good for them!
Runway fashions typically are over dramatic and frequently are changed somewhat for wearability for regular people before they hit stores. I am not talking here about knock-offs, but changes made by designer labels themselves or customized at the request of fashion department buyers. I wonder how that’s going to work in this scenario. Will customers flock to the over-the-top runway fashions or will runway fashion gradually just become less over-the top from the get-go? In short order, will store buyers be shown to have had considerable value in helping designers customize fashion for salability to regional tastes, or will the buyers be shown to have been part of the problem in neutralizing some of the designers’ art and making everything look the same?
I can’t wait to see how this turns out!
Absolutely. Consumers play/shop in the “now,” and waiting six months is given them the ability to shop for alternatives or have another brand win the consumer’s dollars.
Consumers have and will continue to change the purchase dynamics and relationships with brands. In a time sensitive category like fashion, eliminating the lag can only be beneficial.
The consumer is today’s CEO — they live in a digitally connected world that provides instant access to information, products and services. The old runway model that showed seasonal collections and six months later made those products available is no longer a viable option for today’s always-on, digitally-savvy consumer. The see-now/buy-now collection model closes the gap between runway experiences and when customers can buy, allowing brands to seize the moment when consumers are excited about what they are seeing and experiencing. Not only does the see-now/buy-now model lead to potential new revenue opportunities, it also allows brands to build deeper customer relationships based on real-time customer insights into what products and experiences speak to them.
I do believe we will see this trend advancing as retailers and certain brands seek to further engage, excite and strengthen relationships with the consumer. As businesses look to bridge the gap between physical and digital realities, they need to think about how to provide greater significance to the shopper’s journey. This transformation involves connecting a ubiquitous channel of consumer experiences to decode what is relevant to the customer and an ability to deliver not only that, but more.
Smart move! Why stir up demand for products you can deliver? And why let other more nimble cons, ie: fast fashion, steal your buzz, products, customers (sales and profits). Fast Fashion indeed!