Morning Brew - ☕ Orderly fashion

Fashion week and a smoothly functioning supply chain.
March 15, 2023

Retail Brew

Flowspace

Hello, hello. Gone is the Like Mike fantasy of finding a pair of Michael Jordan’s sneakers in a thrift shop. A pair of Air Jordan sneakers the basketball legend wore during the 1998 NBA finals is expected to be the most expensive pair of sneakers to ever go on sale at an auction, projected to sell for between $2 million and $4 million. Unfortunately, the sudden magical ability to play basketball is not included.

In today’s edition:

—Jeena Sharma, Erin Cabrey

SUPPLY CHAIN

Falling apart at the seams

NY Fashion Week models Randy Brooke/WireImage

Among the many words that came to define the pandemic and the years that followed, “supply chain” would rank pretty high.

Raw materials shortages and port closures around the globe, particularly manufacturing hubs such as China, hit most retailers, causing inventory woes and ultimately impacting their bottom lines. Luxury fashion brands not only struggled with similar issues, but did so while having to put together fashion week shows.

Some, like Armani, decided not to present during the 2022 fashion weeks in Paris and Milan at all, while others simply struggled their way through it. Regardless, no other event underscored the importance of a smoothly functioning supply chain for fashion week as the pandemic.

Cal McNeil, director of program strategies at the Council of Fashion Designers of America (CFDA), called the supply chain the “foundation” of a designer’s business.

“A smooth supply chain will always be the most critical piece for a brand preparing for fashion week because no product means no show and no subsequent sales during market for that season,” he told Retail Brew. “Every step of the product design, development, and sampling process needs to be carefully mapped out and timed correctly to ensure a successful chain of events leading up to fashion week.”

Kerry Chrapliwy, founder of Wonder, a marketing agency that works with luxury designers like Vivienne Tam, said the designer closed most of her stores in China during the Covid lockdown and did not show any fashion collections on the runway at New York Fashion Week until September 2022.

“Last September was her first show coming out of Covid, and it was still a little bit different because we were normally showcasing maybe 1,000 people, and now we’re down to Spring Studios…where they have a 300–400 person limit,” he told Retail Brew.

Keep reading here.—JS

        

TOGETHER WITH FLOWSPACE

Feelin’ the supply chain pain?

Flowspace

Welp, you’re certainly not alone: The Brew surveyed our community of retail pros to better understand their current challenges, and a whopping 45% cited the supply chain as a topic that’s top of mind.

When asked about the biggest challenges the supply chain poses, 50% said inventory management, 44% said forecasting, and 27% noted excess inventory.

The folks at Flowspace, a platform powering fast, efficient e-commerce fulfillment for omnichannel brands, understand that meeting (or beating!) customer expectations is a competitive advantage nowadays.

That’s why their timely playbook offers the 411 on how merchants can overcome supply chain woes with insights and fulfillment capabilities that enable an excellent customer experience.

Grab your copy.

FOOD & BEV

Show and tell

Exterior view of the Anaheim Convention Center during Natural Products Expo West Erin Cabrey

With our walking shoes laced and our stomachs empty, we (it’s Erin, hi!) braved the halls of the Anaheim Convention Center last week to experience Natural Products Expo West, the natural CPG industry’s Super Bowl. Over 60,000 attendees—including retail buyers, investors, distributors, and even celebs like Gal Gadot and Vanessa Hudgens—hit the show floor to check out thousands of brands. Here are some of the most interesting food and beverage products and trends we spotted along the way:

Going greener: Many sustainability-focused brands used the show to zoom in on their sustainable farming efforts, particularly regenerative agriculture, which centers around maintaining ecosystem health, or as chocolate brand Alter Eco puts it, “farming like a forest.” At the show, Alter Eco showcased its new expanded line of chocolate bars and Truffle Thins (with fun flavors like creme brulee) made with regeneratively grown cacao.

Meanwhile, Lundberg Family Farms became the first US-grown rice brand to debut a regenerative organic certified rice with a white basmati rice product that’s hitting Whole Foods in April. The company said it’s working to certify all of its organic rice products as regenerative by 2027.

  • Fun fact: Some of its regenerative practices include flooding a portion of its fields each winter to give a habitat for wintering fowl.

And New Barn Organics debuted what it says is the first regenerative organic certified almond milk at the show.

A new generation of sodas: The soda category has gotten a lower sugar, functional facelift in recent years, led by brands like prebiotic soda brand Poppi (which was, of course, at the show, in an expansive, hot pink booth). Other brands have followed their lead: Functional beverage company Rowdy Mermaid debuted its line of Good Mood Sodas offered in flavors like cola, lemon lime, and orange, featuring 200 mg of ashwagandha per can, which NYC shoppers can find at Pop Up Grocer.

Keep reading here.—EC

        

COMMUNITY

Coworking with Shobhit Khandelwal

Shobhit Khandelwal, co-founder of Minoan Experience Shobhit Khandelwal

On Wednesdays, we wear pink spotlight Retail Brew’s readers. Want to be featured in an upcoming edition? Click here to introduce yourself.

Shobhit Khandelwal is co-founder of Minoan Experience, a “native retail” platform that allows short-term rentals and boutique hotels to buy furniture below retail prices, and, in turn, allows consumers to order products they see in the properties by scanning a QR code. Learn more about Khandelwal and Minoan Experience below.

How would you describe your job to someone who doesn’t work in retail? With a decade of experience in data analytics and digital transformation, I help brands better reach their customers through customized data-driven solutions, while creating real-world shopping experiences that aim to change the way consumers interact with and purchase products.

One thing we can’t guess about your job from your LinkedIn profile? So much of being a founder and leading a company relies on more than having the technical skills to build a product. Very often, the key to success lies in bringing as much passion and eagerness to the table every day to create sustainable solutions which will benefit businesses in the long run, while having a great team that can expedite the process.

What’s your favorite project you’ve worked on? I would say the content and order management platform for our shoppable sites. This platform powers all the shoppable sites from the same centralized platform.

Which emerging retail trend are you most excited about this year, and why? I’m very excited about “phygital retail,” which blends the physical and digital elements of retail to allow brands to reach shoppers more holistically, providing a more personalized, immersive experience.

Keep reading here.—EC

        

SWAPPING SKUS

Today’s top retail reads.

Big cheese: Comparing the “personal pizza purchases” across recent Domino’s executives, including former CEO Ritch Allison, who apparently expensed $6,000 worth of pizza in 2020, per SEC filings. (Financial Times)

Breaking the bank: The SVB collapse sent some already-busy food start-ups into a panic on Friday as they exhibited at Natural Products Expo West. “All of this was, I think, entrepreneurial life on a large scale, just kind of compressed within the two or three days, where the roller coaster of emotions was going up and down like Six Flags,” MeliBio CEO and co-founder Darko Mandich said. (Food Dive)

Second hand: As more brands jump into resale, these are some things to consider when picking a partner. (Business of Fashion)

Propel with Excel: Tired of trying to keep up with all those expenses, inventory, and everything in between? Our Excel Dictionary Bundle can make you a master at Excel and help get your business back on track. Get yours now.

Docs for days: The collection of documentaries on Curiosity Stream has every other streaming service beat. With countless topics and new shows added every week, there’s entertainment for every interest. Get 25% off your subscription.* 

*This is sponsored advertising content.

WHAT ELSE IS BREWING

  • Grocery prices were up 10.2% year over year and 0.3% month over month in February, per the Bureau of Labor Statistics.
  • Glossier revamped its executive team with new chief commercial, marketing, and creative officers.
  • Zara owner Inditex reported its 2022 sales were 15% above pre-pandemic levels.
  • Bed Bath & Beyond said it secured a deal with investors to receive another $100 million in funding.
  • Grubhub CEO Adam DeWitt stepped down from his role.

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Written by Jeena Sharma and Erin Cabrey

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