Our latest research highlights an intriguing shift: despite Facebook's decline in social popularity, Gen Z is flocking to Facebook Marketplace. This platform has become more than a mere online bazaar; it's their go-to for securing unparalleled bargains. This shift is not solely driven by savings but also by a conscious move towards sustainable living, transforming secondhand items into coveted possessions. The attraction lies in significant cost reductions and the excitement of the search, establishing Marketplace as the premier spot for cost-aware, environmentally conscious consumers. Was this a strategic genius of Zuckerberg or a fortunate twist?

Is this resurgence of Facebook among Gen Z a calculated genius move by Zuckerberg or a fortunate twist? The secret may be in the platform's adaptability and focus on meeting the changing preferences of its audience, demonstrating that innovation and a user-focused approach can lead to a resurgence in relevance.

Adidas reports its first annual loss since 1992, with a deficit of $63.4 million for 2023, reflecting a difficult period for the sportswear behemoth amid global economic and geopolitical challenges. The cessation of the profitable Yeezy collaboration, which previously contributed $2 billion annually to Adidas, has been particularly detrimental. The Yeezy line, once a pivotal cultural asset for Adidas, propelled the brand forward, leaving the company now searching for a new strategy in the face of stagnant sales and substantial inventory cuts. Adidas CEO Bjorn Gulden commented, “2023 ended slightly better than expected at the start of the year, though it’s still far from satisfactory.” He attributed this to the rising popularity of low-profile court shoes, which led to increased demand for Adidas Gazelles and Sambas, mitigating what could have been a more severe downturn. It remains to be seen how Adidas will steer through this challenge, especially as they move beyond the retro court shoe trend, a shift they have previously found challenging.

Decathlon is undergoing a dynamic rebranding, striving to shed its image as the affordable sports equipment destination in Europe. The launch of the 'Orbit' emblem signifies a bold move towards innovation, sustainability, and a higher-tier market presence in the sports retail sector.

Previously seen as a value-focused store with limited allure, our research indicates that although Decathlon is a well-known shopping venue, it seldom attracts the youth demographic. Given its wide array of economical products, Decathlon's initiative to integrate a lifestyle element into its brand and climb the ladder in the aspiration economy is impressive. This approach seeks to incorporate more premium products from leading brands like Nike and adidas, aiming to boost its social standing, a method similar to that employed by Sports Direct in recent times. From Nike's perspective, it would be prudent to support Decathlon's brand enhancement and secure exclusive partnerships to broaden their product exposure.

With a bold international strategy that encompasses modernizing over 1,700 stores and refining its product range, it will be intriguing to observe how Decathlon revolutionizes the sporting goods industry.

I'm thrilled to announce that I've partnered with schuh on a consumer research, segmentation, and profiling project that will culminate in an updated and refreshed cultural selling proposition.

I'm really excited to be working with Stephanie Legg and the team.

Watch this space.

👊

In my latest piece for the Drum, I explore Nike's current market challenges from a personal perspective, shedding light on the intricate dynamics of cultural shifts, competitive pressures, and strategic missteps that have contributed to a discernible decline in the brand's once untouchable market position.

Key Highlights:

• I discuss the cultural disconnect created by Nike's decisions, such as dismantling NRG teams and phasing out fashion-forward Nike Labs, especially in key cities. This move has weakened Nike's cultural impact, transforming it from a brand that once felt local and community-centric, particularly in places like London, to one that now seems more like a distant global corporation headquartered in Beaverton, losing touch with the grassroots cultural movements it once flourished in.
• From my research, it's evident that Nike's Air Max franchise is fading in appeal among Gen Z consumers. They are shifting towards skate and Y2K aesthetics, preferring low-profile silhouettes and alternative lifestyle brands, making the iconic swoosh less appealing.
• I highlight the competitive landscape in performance footwear, where emerging brands like ON and HOKA are presenting strong alternatives to Nike, challenging its dominance.
• In terms of lifestyle appeal, I've noticed that retro styles from Adidas and New Balance are surpassing Nike, indicating a shift in consumer preferences away from the brand.
• I suggest that Nike may need to reconsider its retail strategy, particularly its pivot to Direct-To-Consumer (DTC), as consumer behaviors evolve.
• I identify strategic focus areas for Nike, including a renewed emphasis on running, the women's segment, and the Jordan brand, which could potentially mark the beginning of a strategic turnaround for the company.

With Nike's shares dropping by 20% over the past year and only modest projections for sales growth, it's evident that the brand is at a pivotal crossroads. The question remains: Can Nike reinvent itself and reignite its cultural relevance and market position? Dive into the full article for an in-depth analysis of Nike's current predicaments and the potential paths forward for the brand.

https://www.thedrum.com/opinion/2024/02/29/has-the-nike-air-bubble-popped-gen-z

The realm of luxury fashion is experiencing a fascinating divergence, serving varied beliefs and socio-economic demographics. In 2023, there was a significant tilt toward 'subtle elegance', with North American outlets witnessing a 40% dip in sales for items adorned with prominent logos.

This movement toward minimalism is reshaping the definition of luxury, with esteemed labels like Gucci and Bottega Veneta embracing a less formal tone in their advertising. The trend also promotes 'uniform dressing', prioritizing quality and sustainability, encouraging the inventive repurposing of attire.

Conversely, 'bold luxury' remains attractive to those aiming to express affluence and status with striking logos and classic symbols of wealth. This trend indicates that certain groups, possibly from varying economic strata, are inclined towards overt displays of luxury as a means to signify upward social movement.

As 2024 unfolds, the fashion industry finds itself at a juncture, striving to cater to both the understated and the extravagant. This dichotomy in luxury fashion mirrors the wide-ranging tastes and changing identities across society.

The realm of sneaker reselling is witnessing a marked downturn, underscored by a report from @Neustreet that points to a slump in the resale prices of sneakers beyond their original retail tags. Platforms once at the peak of their game, like Restocks and Kikikickz, find themselves grappling with insolvency. This trend mirrors a wider shift in the industry, as heavyweights such as Nike and Adidas step back from their limited-release strategies, opting to make coveted OG sneakers more accessible, thereby reshaping the supply-demand equation. This strategy has made sneaker culture more inclusive, yet it has also diminished the value of collectors' items.

Adapting to these evolving landscapes, resale behemoths such as StockX and GOAT are broadening their horizons, venturing into new categories to stay pertinent in the market. Amid these industry waves, emerging brands like On and Salomon are capturing attention with their top-tier offerings that marry performance with trend-setting aesthetics. These products, being both highly coveted and widely available, have significantly impacted the resale values of items from giants like Nike, Adidas, and Jordan.

In the ever-changing landscape of youth culture, staying relevant is not merely about keeping up; it's about leading with intention and understanding. Brands that make a lasting impact are those that connect genuinely and contribute to shaping societal cultural dialogues—spanning social and environmental concerns to the forefront of technology, entertainment, and artistic innovation.

Grasping the cultural terrain requires more than a reactive stance to emerging trends; it involves identifying which currents are in harmony with your brand's foundational principles and aspirations. This entails anticipating how shifts in the wider cultural spectrum—encompassing politics, music, and technology—might influence your audience and taking proactive steps to address these evolutions, thereby sidestepping potential pitfalls and maintaining relevance.

When a brand adeptly sails through these complexities, it achieves more than mere adaptation—it gains the capacity to steer and redefine the cultural narrative, breaking through industry confines and weaving itself into the societal fabric.

Louis Vuitton Men's is set to unveil a groundbreaking collaboration between Pharrell Williams and Tyler, The Creator for its Spring 2024 capsule collection, due next month. This partnership represents their first major foray into fashion collaboration, heralding a transformative moment in the realm of luxury fashion. Now more than ever, top-tier luxury brands are integrating with creative cultures, stepping away from luxury's traditionally exclusive narrative.

Tyler's innovative "Craggy Monogram" along with his unique reinterpretation of LV's design language - ranging from pastel knits to mechanic jackets and distinctive luggage items - marries the authenticity of streetwear with the sophistication of luxury. While the melding of streetwear with high-end fashion isn't unprecedented, Tyler's vibrant and playful aesthetic emphasizes Louis Vuitton's readiness to embrace a more laid-back and approachable style. This collection is a tribute to uniqueness, illustrating the way contemporary luxury is weaving together the rebellious spirit of skate culture and streetwear's boldness with an approachable and personalized design ethos.

As the luxury fashion landscape continues to evolve, collaborations such as this one highlight a shift towards a more inclusive and engaging direction, targeting a younger, street-fashion-conscious demographic. It mirrors Louis Vuitton's progressive stance on luxury, aiming for inspirational and culturally relevant fashions that resonate with the avant-garde of the creative fashion community.

Kath Smith, who has held influential roles as an independent director at JD Sports Fashion, former Adidas UK Managing Director, and General Manager at The North Face, is now part of the Liverpool-based sportswear startup Montirex. This collaboration signifies a pivotal development for Montirex. Together with Monterrain and Technicals, Montirex is at the forefront of the technical lifestyle apparel sector, rapidly gaining popularity among the youth drawn to sportswear influences—a movement rooted in Liverpool and Manchester.

These brands, which include both independent names and those developed by retailers, are capturing the hearts of consumers more effectively than established technical and outdoor brands like Berghaus and The North Face. Their nimble nature, ability to swiftly adapt, and focus on crafting products that resonate with the JD Sports audience endow them with a formidable edge against the traditional giants. This strategy is expected to dramatically influence their financial success in the near future. Today's sportswear aficionados prioritize brands that align with their aesthetic tastes and functional needs over those with a storied heritage.

The flexibility and streamlined decision-making of these burgeoning technical labels afford them a significant advantage. As brands like Represent perfectly tune into consumer desires, the landscape of brand hierarchy and ecosystems is set for ongoing upheaval.