An Earthquake in the Fashion Industry

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What Happens to Luxury E-Commerce?

An earthquake is going on in the fashion industry, invisible to most. It’s about luxury e-commerce. Specifically, Farfetch, which was about to collapse.

The platform represents the e-tailer everyone talked about. For mainstream fashion shoppers, dazzled by the lights plus an excessive selection, being absent from it meant not belonging to the right circle. For retailers, it was a possibility to make a lot of money. However, the supermarket setting did not intrigue niche fashion enthusiasts at all.

What is Farfetch?

Farfetch is a marketplace that connects brick-and-mortar fashion boutiques. Therefore, people from anywhere in the world can buy their favourite items from a boutique on the other side of the globe and get them delivered to their doorstep. Afterwards, since focusing on the luxury segment, they have started offering services directly to fashion brands. Also, they bought the London boutique Browns.

Who’s behind the group?
Investors gather the Chinese Alibaba; Artemis, the holding company of the Pinault family, owners of Kering; and the Swiss luxury group Richemont.

How does the business work for Farfetch?

They take a 30% cut from all the retailers as they can connect to a worldwide audience. However, born in 2007, the company became profitable in 2014. But, they could hardly maintain the profit. The company shares, valued at about 20 billion dollars at its peak, lost about a third of their value, dropping to a record low of 60 cents. Now, the firm has a market value of $250 million. In fact, the platform was close to bankruptcy.

What happened?

In 2019, Farfetch acquired the Italian New Guards Group, license-owner of Off White and others, reporting unexpected losses of about 2 billion dollars. In other words, by abandoning its inventory-free marketplace strategy, Farfetch lost its original, cost-effective pattern. Yet, their business peaked during the pandemic. But, as the company pursued growth, costs increased simultaneously.
Indeed, the New Guards acquisition reported a 40% drop in sales.

Two more factors contributed to the downfall: brands wanted more control over their products and the discount policy. Moreover, a slowdown in the luxury market had an impact on sales.

Farfetch was supposed to buy a 47.5% stake in Yoox-Net-a-Porter Group, but perhaps we won’t see this deal.
After the share price plummeted, a white knight came to save the e.tailer: the Korean group Coupang, Inc.

What to expect from this earthquake in the fashion industry

For those who see fashion as creative expression and not a giant supermarket, Farfetch isn’t fascinating. Indeed, many call it the ‘Amazon of fashion’ – a destination thriving on relentless discounts.
A few freethinkers might wonder where on earth those exaggerated quantities of garments would be sold. Though it is good to witness brands talking about sustainability while partnering with a company that made overproduction in the fashion industry its business model!

Eventually, an invisible earthquake is happening in the fashion industry, which may result in a tsunami. All the brick-and-mortar retailers connected to the platform have lost their lucrative toy. But, planning to sell through Farfetch, they still have ordered immense quantities of fashion garments. Since local customers were just a tiny percentage of their business, where would they sell their huge stock? Where will they sell the unrealistic budgets pushed by the marketplace?

Now, what should we expect? Will brick-and-mortar ‘Farfetchers’ survive? Or will they fall under the tsunami?

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The Luxury Brands

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Unravelling the Psychological Effects on Consumers

Luxury brands hold a unique allure that extends beyond the possession of high-end products. These brands are not just about material possessions. In fact, they are about status, identity, and the dance between desire and fulfilment. So, I intrigue you to explore the complex interplay of emotions, perceptions, and societal influences that shape our relationship with luxury products.

The symbolism of status

Luxury brands often serve as symbols of social status and wealth. Indeed, a designer handbag, a luxury car, or a unique timepiece can elevate an individual’s perceived status in society. Psychologically, this association with prestige triggers a sense of accomplishment and reinforces one’s social identity. So, the external display of luxury items becomes a visual cue to others, communicating success and affluence.

But is it gold all that glitters?
It’s crucial to acknowledge that the status associated with luxury items is often a construct and may not necessarily reflect true personal achievements. Specifically, wealth’s display through luxury possessions might be more about perceived status than authentic accomplishments. This can contribute to a sense of superficiality in pursuing social recognition.

The pursuit of exclusivity

The scarcity and exclusivity associated with luxury products contribute to their allure. Limited editions, rare materials, and meticulously crafted designs create a sense of exclusivity that appeals to consumers’ desire for uniqueness. The psychological impact is profound, as individuals feel a deep feeling of importance and distinction when they possess something that not everyone can have.

Self-expression and identity

Luxury brands often serve as a canvas for self-expression. In fact, the choices individuals make when selecting luxury items reflect their personalities, tastes, and aspirations. Through these purchases, consumers shape their identity and convey aspects of their character to the outside world.

Emotional fulfilment

The act of acquiring a luxury item is often accompanied by a surge of positive emotions. From the anticipation of making the purchase to the euphoria of possession, luxury consumption triggers feelings of happiness and satisfaction. Also, a sense of accomplishment. These emotional responses create a strong association between luxury brands and positive experiences, fostering a continuous cycle of desire and consumption.

In conclusion, luxury brands weave a complex orchestra of emotions, desires, and societal expectations, influencing consumer behaviour profoundly. The psychological effects range from the satisfaction of status symbols to the fulfilment of emotional needs and the expression of individual identity.

On the flip side, the psychological effects of luxury consumption spiral into a dangerous cycle of excess. The insatiable desire for status, exclusivity, and emotional gratification may propel individuals to continually seek the next opulent acquisition. This relentless pursuit fuels a voracious appetite for the latest trends releases. But also plunges society into the treacherous depths of overconsumption.

Ultimately, the pressure to maintain or increase one’s perceived status drives a culture on the verge of excess, promoting unsustainable consumption patterns that jeopardise responsible consumerism.

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Credit: Post written by Gabriela Preuhs, a Brazilian scholar pursuing studies in economics and psychology at Cattolica University in Milan; currently interning with suite123.

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Decoding Margiela’s Gallianification

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Exploring the Impact of Galliano’s Vision on Maison Margiela and the Fashion Industry

Decoding Margiela’s Gallianification, completed in the recent Artisanal SS24 couture show, prompts questions about the direction of the fashion industry.

As John Galliano fully embraces his creative role at Margiela, we witness a brand transfiguration under a new vision. The show, a clear display of Galliano’s aesthetic, raises inquiries about the essence of this transformation. Why not celebrate Galliano’s vision under his own brand name? What is the significance of reshaping Margiela into something it originally was not?

SS24 Haute Couture: Margiela’s Gallianification completed

A play of lights and shadows. In an underpass of the Seine, a theatrical representation showed the ritual of dressing, using the body as a canvas, attempting to express the emotional form of man. Like puppets moved by invisible strings, the models seemed to come to life step by step together with the clothes and accessories they wore. Lace, latex, very tight corsets, jackets and suits with visible stitching.
In fact, Margiela Artisanal SS24 couture show was one of the most beautiful during the recent Haute Couture Week in Paris. Definitely, Galliano knows what couture is. Yet, it was 100% Galliano and almost no trace of Margiela, if not for a few tabi shoes or the four-corner white-stitch of the logo.

A brief background

In 2011, Dior ousted John Galliano after a video emerged in which the British designer hurled anti-Semitic insults at a couple in a Paris bar. So, following the scandal, he was fired from his own fashion label, majority-owned by Dior.
In 2014, OTB – Only The Brave, Renzo Rosso’s company – appointed John Galliano as designer for Maison Margiela.
The news, to us, sounded like a joke. For instance, it was like asking Dolce & Gabbana to design Helmut Lang. Two different visions, opposite perspectives, indeed. Both should exist in the fashion industry, providing a diverse representation. Yet, each one under the creative guidance of a designer who can allow a specific sensibility to emerge.

Implications for the fashion industry

Of course, in the hands of Galliano, Margiela took a different turn. And now, with this Haute Couture skilful show, Gallianification of Margiela has been fully completed. Therefore, a reputable designer becomes the creative director of another label, taking just a few hints from the original designer. And in the end, celebrates his own vision of fashion, but under another brand name.

Perhaps, a revenge for Galliano in a field deprived of meaning. However, we wonder, what’s the point of this? Why doesn’t Galliano do Galliano under his own brand name? Why do they need to transform Margiela into what Margiela is not?

In the grand spectacle of Galliano’s creative takeover at Maison Margiela, the Margiela Artisanal SS24 couture show provided a poignant chapter in the ongoing saga of Gallianification. As the brand transforms under Galliano’s unmistakable vision, we’re left contemplating the broader implications for the fashion industry. In fact, this issue regards all the luxury brands in which the creative founder is no longer in charge. Specifically, we suffer for Margiela because we adore it, the original… Martin Margiela. In fact, we carried MM6 in our boutique in the past.

Decoding Margiela’s Gallianification unveils an absurd reality: an industry once celebrated for its idiosyncrasy now seems an empty vessel awaiting the next lucrative trend. Simply a game. But where is the fashion industry heading with these games?

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Couture: The Future of Fashion

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Crafting Tomorrow’s Wardrobe through Quality, Customization, and Conscious Production

On our journey to trace the future of fashion, Paris Haute Couture Week SS24 offers a chance to reinforce our viewpoint on the industry. What becomes evident is the link between couture and the sustainable paradigm needed to shape the industry’s trajectory.

SS24 Haute couture

Haute Couture for luxury houses serves as a mere reaffirmation of brand power. With an endless array of outfits, it appears evident that luxury brands – and the fashion industry as a whole – fall short of comprehending the essence of sustainability and adopting a long-term perspective.

This season, collections managed to break away from monotony. Gaultier by Simone Rocha impressively redefined the designer’s DNA, while Chanel exuded loveliness. The Gallianification of Margiela seemed finally completed. Beautiful, but no trace of Margiela anymore, if not for some tabi or the logo. Yet, it’s Pierpaolo Piccioli for Valentino, who earns the title of a true couturier, always impeccable in his superfine tailoring and magnificent creativity.

However, among the most elaborated and creative silhouettes typical of Haute Couture, more clean and perfectly tailored pieces completed the collections. Which translates into timeless, meaningful garments for everyday style. In fact, beyond the glamour, Haute Couture provides an opportunity to reflect on the future of fashion.

Couture & sustainable fashion

In its essence, couture means made-to-order garments of impeccable quality produced in limited quantities. Therefore, it inherently embodies sustainability. In this tailoring realm, quality takes precedence over quantity, focusing on the meticulous creation of timeless pieces that embody the ethos of minimalism.

Specifically, this sustainable essence of couture is a pattern that represents the future of fashion.

At its core, couture’s commitment to made-to-order garments, crafted with unparalleled quality, shatters the notion of disposable fashion. The bespoke nature of these creations allows for customization, fostering a connection between the wearer and the garment that transcends the fleeting trends of fashion.

Indeed, by opting for fewer pieces produced in limited quantities, artisanal production aligns with conscious consumption. It’s a departure from the relentless pursuit of newness. And a testament to the idea that true luxury lies in the careful curation of one’s wardrobe. Less but better.

As we trace the steps and missteps of fashion brands, one aspect becomes apparent. The future of fashion lies not in the mass production and fleeting trends but in the intentional creation of timeless pieces that endure beyond seasons. Couture serves as the vanguard and back to the past, revealing tomorrow’s wardrobe through quality, customization, and conscious production.
A blueprint for a fashion industry where sustainability and style seamlessly coexist.

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Behind the Seams: Fashion Industry & Forced Labour

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Understanding the Joint Roles of Brands and Consumers

Let’s delve “behind the seams” to unveil the link between the fashion industry and forced labour. The connection is robust, a topic often discussed yet incredibly overlooked by consumers despite the information.

In a recent post, we exposed the symbiotic relationship between luxury brands and fast fashion, both operating within the capitalistic framework. Today, we peel back another layer, examining recent cases.

Behind the seams of luxury brands

First, we happened to read a BOF post: “Luxury brands lag on efforts to reduce forced labour.” Reduce? But isn’t it appalling that brands discuss reducing forced labour instead of eliminating forced labour? By the way, the graphic in the attachment gathered luxury brands and fast fashion brands. All the most popular ones! (see it here).
Second, these days, the news reported the case of Alviero Martini. The company is under investigation for starving wages.

These two elements confirm our thesis: luxury brands and fast fashion share the same pattern, just for different pockets. But, above all, they highlight how deeply this issue is rooted in the fashion system, revealing it as a consolidated practice to maximise profit.

Also, it is interesting to notice that luxury brands often blame fast fashion while hiding their practices that are no different! Luxury brands exploit people’s work precisely as fast fashion does. Whatever the “made in” label says.

According to “Knowthechain” – a non-profit organisation:
“Today, an estimated 24.9 million people around the world are victims of forced labour, generating $150 billion in illegal profits in the private economy.”

Forced labour & modern-day slavery

Forced labour refers to individuals compelled to work against their will, under threat of punishment or coercion. In other words, individuals suffer exploitation as they are deprived of their freedom, coerced into labour without fair remuneration, and subjected to conditions over which they have no control. Forced labour can take various forms, including human trafficking, debt bondage, and other forms of modern slavery, and it is a violation of fundamental human rights as well as international labour standards.

Although condemned and prohibited by national and international laws, the practice is widespread. What’s worse? People, through their purchases, endorse this despicable system.

The fashion industry has no moral fabric, just as individuals who ignore the issue despite the available information.

Are you willing to shut your eyes when buying a logoed bag?
Did you know there’s an alternative? Small, independent brands offer luxury handbags with the finest materials, quality and skilled craftsmanship, all at just 1/3 the price of a branded bag. But while the logoed ones may be easy to sell, only a niche audience can appreciate true quality.

Your decisions as a consumer can shape an industry that values humanity over profit. Don’t compromise ethics over status.

What happens “behind the seams,” the dark connection between the fashion industry and forced labour, is extensively covered in the media. Read, share, and take action. But do not close your eyes. Ignorance is not an option; it’s time to confront the truth.

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