Nili Lotan Nili Lotan
In recent years, luxury commerce in fashion capitals like Paris, Milan, and London has been heavily dependent on tourist traffic from China, Russia and the Middle East. Co, as Covid halted high-spending tourist visits to these fashion hubs, luxury retail sales fell sharply to 2014 levels. According to a recent McKinsey report, "the department store of French luxury Galeries Lafayette said it was facing a perte of 1 billion euros (about 1.17 billion dollars) in 2020, while its Italian counterpart La Rinascente predicted a drop of 20 to 25% of its annual revenues ". .
Empty cafes in Paris during Covid19
As international travel restrictions are still in place, destination shopping activity will remain low. Several airline analysts have projected that international travel will not return to pre-pandemic levels until the end of 2022. As vaccinations ramp up and local restrictionof Covid fades, consumers will opt for domestic travel.
This paradigm shift pushes the luxury industry to "glocalize". Glo Luxury prom brands need to market in their own territory and locate in markets like China, as wealthy Chinese consumers will travel less and spend more locally. Bain & Co has indicated that China is on track to become the most important luxury market by 2025.
As mega brands locate and market in China, they must be very careful with cultural differences and sensitivities. Some of the disastrous campaigns have been Burberry's Chinese New Year (2019) and Dolce & Gabbana's "Chopstick " TV (2018); both received harsh reactions and criticism from the media andChinese consumers. Gartner L2 study reveals that Dolce & Gabbana's social media engagement in Q1 2019 was down 98% from the same quarter last year. When Chinese consumers account for more than a third of luxury retail sales, this type of PR error is damaging.
A man walks past a Dolce & Gabbana store in Beijing on November 22, 2018. - Dolce & Gabbana has canceled .. . a long-planned fashion show in Shanghai on November 21 after an outcry over racist posts on its social media accounts, a setback for the company in the world's largest luxury market. (Photo by Nicolas ASFOURI / AFP) (Photo credit should read NICOLAS ASFOURI / AFP via Images) AFP via Images
Brands can drive more online sales by investing in a better online experience to counter lost sales due to travel disruptions and declining international tourism. Nosto, a global online marketing company, recently compiled a survey of 1,100 consumers and 50 top DTC brands.63% of consumers surveyed want to see social media reviews onsite, compared to only 42% of brands have content reviews onsite. 65 % of consumers surveyed n / awant to have live online chat and one-on-one online experience with the brand. Only 57% of consumers said their experience was seamless when interacting with multi-channel brands.
Small local brands that are not heavily dependent on tourism spending could well stand for recovery. These brands need to be very niche focused with precise assortments, high margins, agility and create a personalized shopping experience that will appeal to their customers.
A Local production supply chain could take advantage with shorter lead time, react much closer to trends in sale, avoid overproduction and reduce carbon footprint. Another advantage of local production is a transparent and quality controlled supply chain. There are also opportunities with the support of the council.il municipal, like MadeinNYC.org, which helps with marketing, procurement and community development.
Nili Lotan - Timeless luxury designer brand founded in New York City
Leather jacket with fringes Carter - Spring 2021 Nili Lotan
I met Nili Lotan, a luxury designer brand for women based in Tribeca, Manhattan, and she knows how to grow in her local market. After college in Tel Aviv, Israel, Nili Lota came to the United States and pursued successful design careers withc Ralph Lauren and Nautica. Nili launched her eponymous label in 2004 with $ 25,000 in a small studio in Tribeca. She was a 50 year old swine immigrant with three children. The odds were not in his favor. Seventeen years later, she remains the sole owner of her business, still in Tribeca, where she is quietly building a profitable and successful business. Today it employs 60 people, 90% of whom are women; Nili operates three retail stores in New York City, a website and a wholesale business in 250 stores around the world. An expansion plan is also underway. It will include a recycling initiative called the NL Archive , where it will buy back, authenticate, renovate and resell its used clothing through its technology platform. Through NL Archive , she can offer these one-of-a-kind items for resale.
Troy shirt Spring 2021 Nili Lotan Collection Nili Lotan
ANGELA: While the economy is starting to pick up, do you see a better spring and summer season and expect a brighter fall?
NILI: After this hiatus, retail will be healthier. Israel is ahead of the US immunization schedule, and its economy is open and recovering well. The US will be phenomenal with the reopening of retail stores; our three New York stores have already exceeded thepre-pandemic sale. We just opened a new store in Palm Beach with plans to open in LA and a pop-up in Aspen.
AC: Has the decline in international tourism affected your business?
NL: The shutdown of international tourism had an impact on our activities when New York was in lockdown; however, this did not affect our business in spring 2021. And in fact, our international business grew during Covid because we added global technology to our e-commerce site.
Our brand is timeless and women want to invest in durability, quality materials and fit. Our clothes are not disposable; it is a continuous collection that evolves and lasts. Our best-selling items this season are the most expensive items retailing between $ 1,000 and $ 2,500.
Web sales are strong, but I find our vente retail is even stronger because our customers want interaction, advice, see and touch the material, the whole experience of the Nili Lotan brand. It 'sa personalized indulgence .
AC: The pandemic has pushed the precarious trend even further; What are your thoughts?
NL: In general, consumers opt for casual styles but with purpose. I find our customers are looking for unique items that are unpretentious and durable . Event dressing will be vital upon exiting Covid. Weddings and special occasions will return, and women will want to get dressed again. But overall, consumers are more aware of what they are buying and what they are buying. Life will go on but in a different way.
AC: You were in the Israeli army when you were 18 years old.Tell me about your experience and how it has influenced your career.
NL: The military recognized leadership skills that I didn't know I had and I placed in a command role at age 18. It taught me discipline and confidence in being a commander at such a young age. During my time with the army, I lived in the desert; the minimalist and silent lifestyle opened up my design sensibility and my approach to life.
The bluesy hues of the Mediterranean seas and the sandy neutrals of the desert inspire my color palettes. Army green is always an intense color in my collection. These are the colors I grew up with, and they are in my designs.
AC: The pandemic has been particularly hard on working women and has pushed many people out of the workforce. It has also become aopportunity for women to start a business. As a successful self-taught entrepreneur, what advice do you have for women during this time?
NL: My parents are my model. They were Holocaust survivors who instilled values of strength and perseverance into my life. They taught me to never give up, and these are the elements that have survived in life. My advice to women today is to trust yourself and your gut. The pandemic is a break for everyone to reassess what we want in life. If you listen to yourself, find what you want to do, and focus on it, you will be successful. Don't let anyone change their mind.
When I asked what advice she would give her children today, Nili replied, "My life motto is: when in doubt there is no has no doubt . Sometimes life takes you to a place you least expect; believe in yourselft follow her. "