How transparency will kill aspirational fashion
The more consumers learn about product components, the less likely they are to pay a premium. This is why transparency solutions like digital product passports (DPP) or supply chain breakdowns such as those pioneered by Everlane et al. are going to backfire long-term for aspirational brands and product segments. We have first seen this with the rise of direct-to-consumer businesses that offered basics without the premium “made in the same factory as xyz”. Consumers were willing to “trade-off” a brand’s logo and customer experience when being told that they could get the same quality without having to pay the brand premium. Now, being made in the same factory means almost nothing, but it was a clever line to convince the uninitiated to part with their money (looking at you Italic). The supply chain dissection that listed a bunch of factories is a similar tactic to convince consumers that they are getting a good deal by providing them with fairly useless information - which make many feel better about their purchases. The issue is that consumers have no reference points for either the factories or the price of components. You can buy 1m of cotton jersey for $3 and $15, and it’s the same with cashmere for $80 and $250 per kilo.
If we now fast forward to a point in time, which we will inevitably encounter, where all production steps and components are logged in digital product passports, whether those are on the blockchain or in a more flexible database - what are consumers going to do with that information ? As someone who comes from consumer goods/meat products, which is about a decade ahead of fashion in this regard, consumers either trade down based on price or trade up based on factors such as convenience and brand. This left all those well-intended middle-of-the-market manufacturers high and dry. And we are seeing the same in fashion. Every new brand that isn’t luxury launches with as much transparency as possible to justify its existence and build trust with consumers. Yet all that information is provided without the aforementioned context. Thus, for the time being, it is enough to be different but not enough to differentiate a brand. This is the issue A LOT of brands will face when every new entrant builds their brand around transparency while established companies offer the same level of insights into their supply chain. Why would anyone still choose the small aspirational brand ? Why would anyone still choose the LVMH, Kering, or Zegnas of the world ?
You will be able to get all those basics and good-enough items made from the same high-end fabrics (because don’t tell anyone, but Loro Piana cloths aren’t actually thaaat expensive) at close to wholesale prices through some DTC business—I refuse to call most of them brands. At the same time, luxury brands can no longer justify their brand premiums for the same basics, like t-shirts or simple round-neck sweaters, to aspirational buyers who dedicate more than other cohorts to learning to make informed purchase decisions.
Design and physical availability will favor big brands that can afford them these costs centers. However, pricing and years of consumer education through transparency and sustainability efforts will eventually contribute to a further bifurcation in fashion’s product landscape. For now, there are still brands that can justify being in the $300-$1000 range because of the market’s opacity—but for how much longer?
Fun in fashion
One recurring theme in conversations with people who work in fashion on a daily basis and aren’t beholden to conglomerates is that there is nothing fun about fashion these days. Men’s Warehouse launched a humorous TV campaign earlier this year - and sure, this type of humor works better for a low brow brand like Men’s Warehouse than your average Paris Fashion Week participants that only sell in boutiques .
Watch the video
The Michino - Lutece PM
(pronounced Lutess)
Michino Paris sent over a few bags, and once again - this isn’t a paid ad , which I thought was nice and deserving of a hands-on video - following the first video about Michino that hit a nerve on TikTok.
5 picks from the Mr Porter +15% off 70% sale
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