The success of Stadium Goods comes off the back of unprecedented consumer desire for sneakers and the need for a rich brand experience in which to buy them, says the platform’s co-founder and co-CEO, John McPheters, on the latest episode of the Innovators podcast.
“For me the light bulb was that demand had never been higher. It was continuously growing, there were more and more people that wanted to buy our products, but there wasn’t a rich experience that consumers could go to to buy that stuff that was trusted, where they knew what they were getting, where they could really hang their hat on the brand experience and the presentation.” he explains.
As a result he and his partner, Jed Stiller, set about creating a site that is focused on consignment – meaning it resells existing sneaker stock as well as broader streetwear – but it only does so with unworn and authentic styles. That focus on trust is the key, he says.
Only launched in 2015, the site was acquired by ecommerce marketplace Farfetch in 2018 for $250 million. Very few emerging businesses have seen such rapid growth. It’s now considered such a market leader, it recently announced a partnership with auction house Sotheby’s to sell 100 of the rarest, most coveted sneakers ever produced.
The site’s explosion aligns with the growth of sneaker culture worldwide. Expected to hit nearly $100bn in global sales by 2024, sneakers are outpacing much of the rest of the industry, including that of handbags. As a result, they have become the new ‘cash cow’ and awareness driver for all manner of brands, not least those in the luxury space, wheresuch products are used as entry to otherwise more aspirational price points.
In all parts of the market this has resulted in ‘cult’ or ‘it’ sneakers to own as a result. A rare pair of Nikes today can easily sell for as much as those from Gucci or Balenciaga as a result. This means it’s increasingly a race, with some limited edition styles going for $10,000 or more.
In this episode, recorded live at the British Fashion Council’s annual Fashion Forum, we chat to founder John McPheters about the cultural relevance of such products, the evolving role of exclusivity and desire in luxury today, and just how what he’s doing is really about teaching the industry to give up control.
Big issues such as sustainability, rising technologies and the changing role of the consumer were major topics of conversation in 2018, as evidenced by the top shows on TheCurrent Global’s weekly Innovators podcast.
Throughout the year, we explored far and wide what those leading the industry are doing to tackle some of the most pressing issues it faces today. Here, we highlight 10 of the most interesting conversations had as we look forward to 2019 and providing even more food for thought for our listeners.
Ian Rogers, chief digital officer, LVMH
Speaking to co-host Liz Bacelar at The New York Times International Luxury Conference in November, LVMH’s Ian Rogers rang the death knell for the chief digital officer, a role he himself holds. The title, he argued, is merely a transitional one as brands become accustomed to a future where there is a digital layer to every consumer interaction. He also talked about how it makes sense that luxury took so long to jump into e-commerce; why CEOs don’t need to know technology intrinsically; and what he’s driving at LVMH to keep up with the level of experience the customer expects online.
“We only have one planet, and the toll [the fashion industry] has on resources today is simply unsustainable,” H&M’s Anna Gedda told co-host Rachel Arthur. With that in mind, the Swedish group is pushing towards an ambitious goal of being 100% circular by 2030. The sustainability expert also talked about how collaboration in the industry is critical and the important role artificial intelligence will play in this field.
A leading woman in the STEM industries, Laurence Haziot, global MD at IBM, believes blockchain will have the same long-term impact that the internet has had on commerce. During this conversation, she broke down what this technology means for fashion, why she is bullish on the efficiencies it could drive throughout the supply chain, and how it’ll play a major role in sustainability and transparency.
“When you’re trying to do something that really creates an impact and is somewhat revolutionary, then you’ve got to put all the chips on the table,” said Tommy Hilfiger’s Avery Baker. For the chief brand officer, who has been with the company for 20 years, risk, authenticity and understanding your consumer are the keys to innovation. She also talked about how the brand has translated its American roots and values to a global audience, how it overcame the unexpected lull, and why magic and logic need to work together.
Lego seeks feedback from six year-olds, and often breaks into moments of play in order to shift siloed thinking. That, believes Martin Urrutia, is how the company remains focused on the relationship between the user and the brick. In this passionate chat, the head of retail innovation also spoke about the importance that technology and a knowledgeable staff both play in creating elevated retail experiences.
Direct-to-consumer luggage brand, Away, received its first round of funding without even having a product, which is a testament of how clear its vision was from the get-go. Co-founder Jen Rubio talks about how she built a brand based on making travel more seamless, how they overcame their first major hurdle, and why listening to customer feedback and constantly iterating is key to innovation.
The future of e-commerce may not be about a traditional website at all, but about existing on multiple other platforms, said NET-A-PORTER’s Matthew Woolsey. One of the luxury retailer’s most expensive sales, a watch, was completed entirely on WhatsApp, for instance. This shows the importance of a customer centric strategy, he explained, from what platform to use to how to integrate data and AI into every process.
“Design is best when it serves people,” said Walmart’s now former VP of design, Dan Makowski. He spearheaded the world’s largest retailer’s e-commerce redesign, explaining that it all came down to focusing on elevating the shopping experience for the changing customer of today. With so many brands now under its umbrella, such as ModCloth and Jet.com, there was a new focus on having a wider conversation in order to cater to different types of consumers, he noted.
Sandrine Deveaux, MD of Store of the Future, Farfetch
The store of the future will solve consumer problems in innovative and meaningful ways, said Sandrine Deveaux, MD of Farfetch’s division dedicated to such a cause. Technology, she said, should not be deployed just for the sake of it, but to create better shopping experiences driven by personalization. She referred to the experience of Apple, but the convenience of Amazon, and why she’s on a quest to change the way luxury brands think.
Guive Balooch, global VP of L’Oréal’s tech incubator
L’Oréal is on a mission to marry technology and beauty in order to enhance customer’s lives, said Guive Balooch, global VP of the beauty group’s tech incubator. From the connected hairbrush to the customized formulas or augmented reality makeup apps his team has created, the key is thinking about how to personalize all interactions and solutions for consumers, he explained. “In 10 years time there’s no question to me that every person will have the ability to have the perfect product for them,” he noted.
The store of the future is about solving the problems of today in an innovative and meaningful way for the customer, says Sandrine Deveaux of Farfetch, on the latest episode of TheCurrent Innovators podcast.
Speaking to guest host, Rosanna Falconer, at a live FashMash Pioneers event in London, the managing director of the e-commerce company’s store of the future division, explains that her focus in not just on new technology for the sake of it, but on creating better shopping experiences driven by personalization.
Following the announcement of Farfetch’s Store of the Future concept in April 2017, Deveaux has been building a series of beta tests in place in Browns East in London, Thom Browne in New York and Chanel in Paris. But the result doesn’t mean big flashy screens or variations on augmented reality, as she is so often asked about.
Instead, it’s about better servicing the customer; understanding what they want when they walk into stores thanks to data, but also making things like the payment experience a much more seamless one.
She says the store of the future is really about offering the experience of Apple, but the convenience of Amazon, so as to keep in line with increasing consumer expectations.
And so the end goal,for her team, she says, is to provide brands and boutiques with full visibility around customer behavior and customer intent, mirroring what’s possible online in the offline space.
“85% of customers, we don’t know anything about them. So that’s what the store of the future is really getting to – it’s about how we leverage the platform we have with Farfetch, and try to really look at online behavior and take that online behavior into an in-store context,” she explains. This is something Farfetch calls “enabling the offline cookie”.
On this episode, Deveaux also talks to driving disruptive innovation through healthy internal tension, how she’s changing the way luxury brands think, and why the ultimate sales associate for the store of the future might just be a unicorn.
Catch up with all of our episodes of TheCurrent Innovators here. The series is a weekly conversation with visionaries, executives and entrepreneurs. It’s backed by TheCurrent, a consultancy transforming how consumer retail brands intersect with technology. We deliver innovative integrations and experiences, powered by a network of top technologies and startups. Get in touch to learn more.