Apparel Online Bangladesh Magazine May Issue 2019 | Page 69

WORLD WRAP
Beyoncé is bringing
Ivy Park back with
Adidas!
and sustainability, the customers of
the future will look for ways to recycle,
resell or upcycle and will be drawn to
the incredible value of buying second-
hand and brands will need to partner
with resale sites and support the
circular economy.
The challenges…
Despite the upscale, the challenges
are many, as the business promises
a lot of uncertainties. The financial
statements of a number of second-
hand clothes stores are not that
attractive. Obviously, the store rents
are reasonably high and the quality of
products and price points which can
get overpriced or underpriced, become
a challenge.
The online businesses like thredUp,
MaterialWorld, TheRealReal,
Poshmark and many others, on the
other hand, are charming consumers
away from many other channels. But
the value proposition and experience
they offer is more like off-price than
any other retail channel; the fun is in
the hunt for great stuff at the lowest
price. The thredUP report claims that
TJ Maxx sells 359 brands, Amazon
sells 10,000 brands and thredUp sells
35,000 brands. The value proposition
for second-hand is bigger, as the
discount from list price is more than in
off-price, which for many consumers is
highly compelling.”
Growth in off-price would be higher
if the off-price retailers would get
into the second-hand business. It’s
a sensible expansion or acquisition
strategy for them as they understand
what the customer wants and how to
market that to them, but as of now,
these companies too have no response
to the growth of the second-hand
online apparel sales, which will impact
their market share.
On the other hand, the online retail
leader Amazon also does not have
the capacity and system to evaluate
each and every garment’s price so as
to effectively compete with the sector
right now. Even eBay that used to sell
second-hand products earlier has now
moved away from the segment and
almost 80 per cent of the products sold
on the site are new.
As the market for online second-hand
grows, there will be more companies
that are threatened. Macy’s has
expanded its effort in off-price and
Nordstrom Rack and Neiman are
putting more effort into it too. As
companies in larger number enter the
off-price market, they will be affected
by the increased competition and the
new business models like thredUP
that are taking up the market share.
Adidas and Beyonce are hitting the industry
with a powerful partnership as the activewear
brand is striking a wide-ranging deal with
the popular singer and actress for footwear,
clothing and an Ivy Park relaunch, causing
ripples among the huge fan following of the star.
The German sportswear giant shared that both
parties have high aspirations. “Neither ascribes
to the typical stereotypes of athletes and
what athleisure clothing and footwear should
be, and instead, will bring to life a shared
vision of inclusion that will forever alter the
opportunities and landscape for all.”
The co-collaborator is equally excited about the
deal. “Adidas has had tremendous success in
pushing creative boundaries,” noted Beyoncé.
She will continue to hold the ownership of Ivy
Park as Adidas wishes her to continue ‘her
journey as one of the first black women to be the
sole owner of an athleisure brand,” emphasising
on the power of women-led fashion brands.
“Beyoncé is an iconic creator and also a proven
business leader, and together, we have the
ability to inspire change and empower the next
generation of creators,” said Eric Liedtke, an
executive board member who is in charge of the
company’s global brands.
Launched three years ago, Ivy Park was a
collaborative venture of Beyoncé and Topshop
tycoon Philip Green. It had received such a
positive response on being launched that the
high traffic on the Topshop website caused
technical delays at checkout. It was also retailed
via Net-a-porter, Zalando and Nordstrom where
it captured the market as one of the top brands
during the week of its launch.
As Green became target of several sexual
and racial harassment allegations last year,
Parkwood, Beyoncé’s company, gained full
ownership of Ivy Park.
www.apparelresources.com | MAY 2019 | Apparel Online Bangladesh
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