Fashion People – Episode: Keep Spending Alive in 2025
Release Date: January 3, 2025
Host: Lauren Sherman
Guest: Sarah Shapiro, Retail Correspondent
1. Episode Introduction
Lauren Sherman kicks off the episode by welcoming listeners to Fashion People and introducing Sarah Shapiro as today’s guest. She highlights recent personal experiences, including her early morning routine and reflections on social media interactions, particularly focusing on targeted advertising in the beauty sector.
Notable Quote:
"Pros. That hair care line that is probably targeting you with ads or will after you listen to this." — Lauren Sherman [00:08]
2. Personal Updates and Recent Purchases
Lauren and Sarah share updates about their recent activities and purchases. Lauren discusses her experience shopping for a Carla Welch Michael Starr T-shirt, praising its fit and discussing its unique color—a subtle nod to post-wash discoloration. Sarah shares her family trip to Hawaii, emphasizing the positive shopping experiences her daughter had at Lululemon.
Notable Quotes:
"I bought it that day and it arrived. I wore it yesterday. That's incredibly fast." — Lauren Sherman [10:39]
"She is very much a real customer of Chanel. I mean, I am wearing one of my Chanel ballet flats at the moment." — Sarah Shapiro [24:09]
3. The Future of Pricing in Luxury Fashion
The discussion shifts to the pricing strategies of luxury brands. Lauren references an opinion piece by Catherine Zarrella from the New York Times about the saturation of overpriced luxury goods. She brings up recent market intelligence indicating potential price hikes by brands like Hermès and Loro Piana in Korea, questioning whether this trend will continue globally.
Sarah analyzes the elasticity of high-end brands, suggesting that while some luxury brands may implement price increases, they are doing so strategically, considering consumer and retailer responses. She compares this to price hikes in the consumer packaged goods sector, where aggressive increases led to pushback.
Notable Quotes:
"The price value equation is lot is off." — Lauren Sherman [19:19]
"There’s like full on divisions that are just analyzing this and all they do is they're looking at the commodity pricing and everything." — Sarah Shapiro [22:27]
4. Chanel vs. Hermès: Brand Dynamics and Market Positioning
Lauren and Sarah delve into the competitive dynamics between Chanel and Hermès. Lauren speculates on whether Chanel views Hermès as a direct competitor and discusses Chanel’s efforts to emulate Hermès' operational strategies. Sarah confirms her avid support for Chanel and discusses her personal experiences with the brand, including secondhand purchases and collaborations.
They also touch on the potential impact of leadership changes at Chanel, particularly with the departure of key designers. Sarah expresses excitement about seeing how Chanel will evolve while maintaining its iconic elements like tweed and pearl details.
Notable Quotes:
"Chanel is trying really hard to be more like Hermès in the way it operates." — Lauren Sherman [24:09]
"I want to see kind of the impact from that, but also take into account all the Chanel identities." — Sarah Shapiro [27:02]
5. Retail Store Evolution and Consumer Experience
The conversation shifts to the transformation of retail stores amidst declining foot traffic and increased theft. Lauren discusses the transition of the Saks store in San Francisco to an appointment-only model, attributing it to security concerns and the need to streamline operations. Sarah elaborates on how retailers are experimenting with different store formats to enhance the shopping experience, such as integrating omnichannel strategies and focusing on customer-specific needs.
They also explore the challenges faced by retailers in balancing discovery with practicality in inventory, highlighting the difficulty in catering to immediate consumer needs while maintaining a diverse product range.
Notable Quotes:
"The last couple of collections, you know, their new reason for searching it on the RealReal or something." — Sarah Shapiro [28:35]
"They have a really loyal customer base and you can keep a business if you don't go nuts and you don't open like 14 stores." — Lauren Sherman [35:59]
6. Mergers and Acquisitions in the Fashion Industry
Lauren reviews significant M&A activity from the previous year, including Farfetch’s acquisition by Coupang, YNAP’s acquisition by Mytheresa, and the merger of Saks with Neiman Marcus Group. She seeks Sarah’s insights on how these consolidations will impact consumer experience and the broader fashion landscape.
Sarah reflects on the necessity of these mergers to address industry challenges, such as overexpansion and the need for enhanced shopping experiences. She anticipates that these changes will lead to more innovative retail strategies and better inventory management, ultimately benefiting consumers.
Notable Quotes:
"I think the industry needed something to happen and whether or not this is the right thing, we'll see unfold." — Sarah Shapiro [32:33]
"The stores need to change format. They need to think about what should the inventory in store be." — Lauren Sherman [36:20]
7. The State and Revival of Mall Brands
The discussion moves to the resurgence of traditional mall brands like Gap Inc., Abercrombie, J.Crew, and Alex Mill. Lauren highlights the strategic moves these brands have made to stay relevant, such as J.Crew’s marketing turnaround and Alex Mill’s focus on wearable, everyday clothing. Sarah emphasizes the importance of inventory management and maintaining brand equity to navigate the competitive retail environment.
They also touch on the challenges these brands face, including tariff threats and consumer wariness, suggesting that successful niche targeting and efficient operations will be crucial for their continued success.
Notable Quotes:
"These brands don't charge an arm and a leg but that still have some equity." — Lauren Sherman [43:53]
"I think the biggest part is making sure they can manage inventory really well and handle the P and L." — Sarah Shapiro [45:18]
8. Closing Remarks and Future Predictions
As the episode wraps up, Lauren and Sarah discuss upcoming topics, including affiliate marketing and beauty industry insights. They express enthusiasm for the evolving landscape of fashion and retail, anticipating further innovations and strategic shifts in the industry.
Notable Quote:
"It's going to be so much fun." — Sarah Shapiro [55:57]
Conclusion
In this episode of Fashion People, Lauren Sherman and Sarah Shapiro explore the intricacies of the fashion industry's current landscape and future trajectory. From pricing strategies of luxury brands to the transformative impact of mergers and the revival of traditional mall brands, the conversation provides a comprehensive overview of the challenges and opportunities facing the sector in 2025. Their insights offer valuable perspectives for industry insiders and fashion enthusiasts alike, making it a must-listen for those interested in the behind-the-scenes dynamics of the multi-trillion-dollar fashion business.