Retail news that keeps industry pros in the know
Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.
LVMH and H&M are at opposite ends of the fashion spectrum, but they went shopping for the same customer this week.
At LVMH...Luxury Ventures, the conglomerate’s venture capital arm, led a $1.8 million funding round for the streetwear label Madhappy. It’s not the usual LVMH brand: Madhappy primarily sells hoodies and sweatpants. It’s generated $1 million in revenue since opening in 2018.
At H&M...it invested just over $5 million for a majority stake in Sellpy, a resale platform that processes and sells used clothing. It’s hoping Sellpy can become a global secondhand fashion site.
The common thread? Gen Z. LVMH and H&M’s investments focus on streetwear and resale, two retail trends e-girls and e-boys love.
- Trendalytics values the streetwear market at around $309 billion, and its top brands are hugely popular with 15.8 year olds.
- In a thredUP survey, at least one in three Gen Z respondents said they expect to shop secondhand this year.
My takeaway: Millennials, our time to shine with retailers is over. Gen Z’s $830 billion in spending power is the new shiny object.