How Fashion Brands and Retailers are Looking to Drive Sales in 2021
Fashion brands are constantly coming up with new and innovative styles to appeal to either their intended niche or the masses. With the negative impact of the pandemic on the industry, executing effective strategies is more important than ever. Statistia, a provider of market and consumer data, recently projected year-over-year industry sales to drop 29% to $256 billion for 2020, putting the pressure on designers and retailers to identify new ways to drive sales.
With the new year arriving in the next few weeks, companies in this industry will be taking major steps to re-energize their marketing strategies to stay relevant – and profitable. Let’s take a look at some of them.
PVH Corp. (Tii:PVH)
You probably know this fashion company by its previous name, Phillips-Van Heusen Corporation. Its brands include Tommy Hilfiger, Olga, Calvin Klein, and Arrow. While overall revenues for the American fashion brand decreased 18% to $2.118 billion for its most recent quarter, revenue through digital channels grew 36%, with sales through its directly operated digital commerce businesses up 70% compared to the prior-year period. This exceeded expectations across all markets and channels. PVH added that it will continue to shift its focus to digital channels throughout the critical holiday season.
The TJX Companies, Inc. (Tii:TJX)
TJX has been a unique outlier when compared to other fashion brands. Offering affordable clothing through its flagship brand TJ Maxx, the company is focused on offering apparel mainly through brick-and-mortar stores. The leading off-price retailer of apparel and home fashions worldwide reported a better-than-expected 5% drop in open-only comparable store sales for its third quarter ended October 31. TJ Maxx is modestly expanding its online presence with a rollout of its HomeGoods.com e-commerce platform next year. Company leadership is optimistic about its strategy, having announced a 12% stock dividend increase.
NIKE, Inc. (Tii:NKE)
Unlike other players in the industry, NIKE is still experiencing strong sales with its footwear. The company reported that NIKE Brand digital sales increased 82% for its fiscal first quarter ended August 31, 2020, and that it paid dividends of $384 million to shareholders, up 11% from the prior year. One reason for NIKE's continued popularity may be due to its strong marketing campaigns and ongoing collaborations with such popular athletes as Stephen Curry, Anthony Davis, and others. It's likely that 2021 will be business as usual for NIKE, with a few new additions to its product line: its Cosmic Unity shoe and NIKE Air Force 1 NDSTRKT,
DICK'S Sporting Goods, Inc. (Tii:DKS)
Dick's Sporting Goods seems to be firing on all cylinders. The company reported strong sales in both its e-commerce (up 95%) and consolidated same-store sales (up 23.2%) for its third quarter. The company attributed the strong results to the strength of its diverse portfolio and favorable shifts in consumer demand. The retailer is looking to expand its presence and offerings, having announced Public Lands, a new store concept focused on the outdoors set to launch in 2021 with initial locations planned in Pittsburgh and Columbus, Ohio.
Tapestry, Inc. (Tii:TPR)
Who doesn’t want at least one luxury fashion brand in their closet for those special occasions? As a global provider of luxury accessories and branded lifestyle products whose brands include Coach, Kate Spade, and Stuart Weitzman, Tapestry looks to fill this market segment. The New York-based company recently reported stronger-than-expected top and bottom-line first-quarter results. The company also reported that its Acceleration Program resulted in nearly 800,000 new customers across its brands in North America through its e-commerce channels, significant growth in China, optimized marketing and an agile and scalable operating model. Shares of the company’s stock have also outperformed, up nearly 200% (as of Dec. 15, 2020) from its 52-week low of $10.18.
Despite the challenges that 2020 has brought to the fashion industry, these companies are rolling out new marketing initiatives and products to consumers, enabling consumers to find the apparel they need at the prices that work with their budget.