LSN : News : Stat: US consumers are putting the brakes on apparel spending

Snøhetta builds urban farm for residential calm in Hong Kong

The Pavilia Farm by Snøhetta. Photography by New World Development, Hong Kong

Hong Kong – Pavilia Farm is a newly built urban farm in a residential development intended to be a serene sanctuary in the bustling city. Designed by Norwegian architecture studio Snøhetta, the 'green lung' farm is surrounded by clubhouses that offer residents of one of the world’s busiest metropolises the type of Rurban balance that many urbanites crave, as we have observed in Equilibrium Cities.

The design of the first clubhouse, the Tea House, is centred on water, with an exterior waterfall created for its calming sound and an indoor swimming pool. There is also the Farm House, a communal kitchen and dining space where residents are encouraged to share produce grown on the farm. The large open dining area helps foster connection through food, letting residents interact daily and feel like a community. In Neo-collectivism we highlighted how urbanities are keen to get to know their neighbours, to treat their corner of the metropolis like a village and want the opportunity to slow down and dig into values of togetherness and spontaneity. A third clubhouse, the Sky House is expected to open later in 2023.

Strategic opportunity

For many city dwellers it is no longer acceptable that city living is all bustle. They expect balance and want to inhabit emotionally healthy spaces. Living in a busy city doesn’t mean sacrificing close community but is about finding the places that foster it

Yayoi Kusama’s total takeover of Louis Vuitton

Global – Louis Vuitton has orchestrated a retail coup for its second partnership with world-famous artist Yayoi Kusama. Unmatched in scale and scope, Creating Infinity is sparking conversations online and turning heads in many cities.

Known for her Infinity Rooms and signature polka-dotted pumpkins, this supersized activation has placed the 93-year-old Japanese artist at the top of many social media threads – and buildings. Stretching the limits of brand collaboration, the campaign takes OOH marketing to the next level, from a giant sculpture of the artist on the façade of the brand’s flagship Champs-Élysées store to an animated robot painting a shop window in New York, countless landmarks have been covered with Kusama’s face or brush strokes. Alongside the supersized store merchandising efforts and a celebrity-backed social campaign, Louis Vuitton launched over 400 products revisited by the artist.

While Creating infinity is undoubtedly viral and is sure to make luxury players rethink how they collaborate with artists, some art critics and fashion experts call it gimmicky, or express unease about the ubiquitous representations of the expressionless face of Kusama.

Louis Vuitton and Yayoi Kusama pop-up store, Japan

Strategic opportunity

While artist or celebrity partnerships are a valuable co-creation and marketing tool, brands should act cautiously as consumers expect integrity and are becoming more invested in knowing the story behind collaborations. Expect such marketing initiatives to face intense scrutiny

Stat: US consumers are putting the brakes on apparel spending

Gucci Detroit, US

US – American consumers are being more considered about how they want to spend their hard-earned dollars and the soft goods market is taking the hit, according to recent research by UBS.

New data suggests that the apparel, footwear and accessories categories are set for a challenging year ahead as US consumers intend to cut back on fashion purchases. The apparel and footwear sectors have grown more slowly than other categories in the US due to the lack of special occasions to dress up for during the pandemic, and the normalisation of casual attire in the workplace.

UBS notes that this applies to all income levels, with even higher-income consumers planning to cut their clothing budgets by 13.3% in 2023 and delaying apparel purchases at a higher rate than last year. What this means for retail is that US consumers are more likely to shop during sales, they will favour store brand products, take fewer shopping trips and shop in local outlets closer to home.

At LS:N Global, we are monitoring how business can navigate the cost of living crisis, from Retail-flation responses to the rise of the Inflationary Loyalty Market.

Strategic opportunity

Squeezed budgets are pushing consumers to be creative to keep up with their lifestyles. This is an opportunity to build loyalty. Be transparent about price changes and act as an ally to help your clients find the best deals

The Future Laboratory Events Calendar 2023

The Future Laboratory's Trend Briefing 2023 at the Royal Academy of Arts, UK

Join us in 2023 for a series of inspiring video presentations, guest speaker panels and live Q&A sessions as well as our industry-renowned Trend Briefing in London.

Members of LS:N Global get free access to our full programme of online events in 2023. You can RSVP to these events via The Future Laboratory Community. Not yet a member? Get in contact with your account manager to set up your free account.

Join us online or in person this year and get inspired to make a better future happen with trends from Beta Boardrooms, Deep Work Dens and Polywork Campuses to embracing longevity as a core pillar in selling and synthesising tomorrow’s category innovations.

We hope to see you there.