The year 2016 was a very difficult one, especially for retail, as consumers struggled to keep their ‘shopping’ mood in place. Weak economies, terrorist attack, political instabilities, Brexit and finally the US presidential elections kept the retail scenario ‘dull’. Though the predictions for the year 2017 are also conservative, there are many factors that could change the scenario and among them is the resilient consumer who likes to shop when happy and also to drive away the blues.
As we look back upon the bestsellers of 2016, a year that can boast (or mull) about much less ups than downs, we combine sales reports, price points, economic settings and an actual conversion of runways into retail, in order to round up the top grossing trends under colours, products, silhouettes and fabrics that performed well in the 5 fashion capitals of the world, namely New York, London, Tokyo, Milan and Paris.
As seasons continue to become more and more transitional with every passing year, gender-specific and season-specific clothing trends head towards blurred boundaries. Resortwear, daywear, eveningwear, loungewear, sportswear and formalwear have started intermingling as the concepts of geographics and demographics change. Key season trends bank upon mixing and layering up products, styles, fabrics and even prints.
Universally, bestsellers like velvet, bomber jackets, pleated skirts and sneakers sold out at Godspeed, with obnoxious numbers of re-stocking being entailed. Velvet reigned the fabric scene by popping up on everything from pants to shoes to bags. Bomber jackets continued to rock the retail sector second year in a row in 2016, with 61,000 bombers being launched in the US and US alone. It comes as no surprise then that the bomber has been revealed to be the most-searched trend of 2016. Yoox ranked as the trend’s most-stocked retailer with 9,400 different styles to choose from! This was followed by Farfetch, ASOS, House of Fraser and Walmart.
Sneakers have had their moment under the sun last year and show little to no signs of backing down just yet. A figure boasting of more than 3,31,000 new pairs of sneakers came online alone, in 2016. The point of interest over here, is that more than 2,40,000 of these retailed outside the sportswear category, mainly focusing on fashion and not performance.
TOKYO
General Climate
Preparation for the 2020 Tokyo Olympic Games is fuelling both expectations that Japan’s economy will grow and fears of an asset-inflated bubble. But because the economy still faces uncertainty, all that glitters may not be gold. The recent influx of foreign tourists, largely helped by the weakening yen, will likely continue to support the economy in the coming years by propping up retail sales and encouraging investment to capitalize on the tourism boom, while the Bank of Japan’s monetary stimulus will keep borrowing costs at rock bottom.
However, property sales in Tokyo, a barometer of the underlying tone of the economy, are showing signs of slowing as major developers are delaying projects due to a labour shortage, which raises personnel costs, and shrinking demand as a result of weak wage growth.
The currency depreciated from ¥103 against the dollar to ¥118 following Donald Trump’s victory in the US presidential election and an interest rate hike by the Federal Reserve, gave new hope in the battle against chronic deflation. The weaker yen makes Japanese exports more competitive and raises the price of imported goods.
Retail Best Sellers
Luxe velvet and faux fur were arguably the most versatile products of the season with both high-end designers and high-street brands embracing the trend with much aplomb. These fabrics were generously used on everything from tops to shoes to accessories to bags! A dose of romanticism was in order with details like ruffles and flares adorning top silhouettes. Calf-grazing elements made a case for the outerwear category in coats, dresses and culottes alike.
| TOP FABRICS Velvet Wool Faux Fur Tweed |
TOP PRODUCTS/SILHOUETTES Bomber Jacket | Flared sleeves Calf-length dresses/Coats/Trousers Maxi length coats Plaid shirt Turtleneck |
| TOP COLOURS Purple Blue Rose quartz Yellow Red |
Milan
General Climate
WThe monthly indicators (in December 2016) suggest that the Italian economy maintained a slow but broadly steady pace of growth in Q4 after it had accelerated slightly in Q3, mainly on the back of stronger fixed investment, which offset a more negative contribution from the external sector. In the political arena, a lengthy political crisis was averted, yet the new Government faces an immediate challenge as the clock ticks towards a year-end deadline for Monte dei Paschi di Siena, Italy’s third largest bank by assets, to raise EUR 5 billion in capital after the European Central Bank rejected a petition for more time.
Going forward, the Italian economy faces a number of important challenges, one of which is unemployment. Since the country’s manufacturing sector is specialized in high-quality goods, Italy plays an important role in the global market of luxury goods. Though there are now about 18 million online shoppers in Italy, but still the number of Italian companies selling products or services online is lagging behind. This will definitely be a growth area.
Retail Bestsellers
Frilly fabrics and details proved a strong affair with ruffles that continued throughout the season. Vintage was king – from Google to Nasa – logos and monograms were paired with everything from gowns to ripped denims, layered articulately. Quirky slogans and motifs found their way onto outerwear and sporty silhouettes adorning the season with nostalgia, while bombers revived the sports-luxe trend with experimentations on velvet and silks.
| TOP FABRICS Velvet Tweed Faux fur Faux leather Wool blend jumpers/ Knits/Sweaters |
TOP PRODUCTS/SILHOUETTES Bomber jackets Plisse skirts Off-the-shoulder & One-Shoulder Logos Ruffles Plaids/Ginghams Maxi coats |
| TOP COLOURS Red Olive Smoke grey Navy Black |
LONDON
General Climate
Consumer spending has been the main driving force behind UK’s relatively strong economic growth since the EU referendum. But the slowdown in retail sales in December, wherein sales volumes dropped by 1.9 per cent fanned fears that consumers will struggle to keep up that support to the economy. More so as this was the biggest drop since April 2012 and far worse than forecasts for a 0.1 per cent dip in a Reuter’s poll of economists. Compared with a year ago, sales were up 4.3 per cent, below a forecast for 7.2 per cent growth.
However, industry experts cautioned against reading too much into a single month’s figures and instead pointed to news of continued growth for the final three months of the year as a whole, as sales from October to December were up by 1.2 per cent on the previous quarter. Also a positive sign is the fact that British workers saw their pay grow at the fastest pace in more than a year in the three months to November, adding to signs that the country’s economy ended 2016 strongly despite the shock of the Brexit vote.
Retail Bestsellers
Pinks, metallics and ornate prints elevate the festive atmosphere of the season, ushering in a celebratory vibe. Military green rules the space for outerwear as patchwork dominates the denim and bomber arena. Bardot style pieces were the rage this year and off-the shoulder tops proved to be the most popular way to make the trend come alive. 2015’s lace-up shoe trend saw 2016 adding the detail to tops, bodysuits and dresses while oversized gear popularized the no-pants trend. Frayed, patchwork and ripped denim all had their moments this season.
| TOP FABRICS Denim Velvet Metallic Faux fur Soft knits |
TOP PRODUCTS/SILHOUETTES Puffer jackets Silk bombers with patchwork Off-the-shoulder Lace up Patchwork denim Hoodies |
| TOP COLOURS Pink Military green Golden yellow Black Camel |
Paris
General Climate
The major issues impacting French retail in the recent past have been negative macro factors – sluggish economic growth and terrorism – and according to industry watchers these are likely to continue to affect the industry in the near future also. France has been beset by low economic growth for a number of years. However, the picture improved in 2015, when the country posted its strongest annual economic growth in four years, with GDP rising by 1.3 per cent. The improved performance carried into 2016, with first-quarter GDP increasing by 0.6 per cent quarter-over-quarter, compared with 0.4 per cent growth in the previous two quarters. However, quarter-over-quarter growth slipped back to zero in the second quarter of 2016.
Shopper traffic declines appear to have eased relatively quickly after terror attacks, while tourist numbers have taken a few months to bounce back. The problem for French retailers is that the newly emerging pattern of frequent attacks makes it much more difficult to return to normality. The dominance of premium names in the French department-store sector has resulted in it being highly Paris-centric and heavily reliant on overseas tourists.
Retail Bestsellers
Sporty separates make a fine balance with eveningwear where textures and trans-seasonal duality come alive through layered looks. Flared details in sleeves, trousers and skirts that graze the calf make a case for the season. Plisse details, mixed with pleating and ruching, knit coats and faux leather detailing and trims abound.
| TOP FABRICS Tweed Faux fur Velvet Knit Jacquard |
TOP PRODUCTS/SILHOUETTES Plisse skirts Plaids/Ginghams Flared trousers Maxi coats Turtleneck |
| TOP COLOURS Wine Camel Smoke grey Navy Black |
New York
General Climate
With major policy shift expected in 2017, as the political landscape takes on a new face, retail experts are predicting that more upheaval is ahead for retailers. Retailers are keeping an eye on potential policy changes under a Trump administration next year. One particular topic they’re monitoring is a proposed border-adjustment tax for goods that are brought into the US.
After a year in which several bricks-and-mortar players made big strides on the web the competition is getting fiercer. With real estate becoming expensive, retailers will be re-evaluating their needs for space.
Selling merchandise through a department store is a lower-risk, less expensive way for brands to grow their sales. Yet as these shops have become more promotional, labels including Michael Kors, Ralph Lauren and Coach are dialling back their exposure, in an effort to wean customers off of discounts. As income gains benefit the wealthy and the stock market soars to new highs, well-to-do shoppers will drive much of the spending boost in 2017; this could deliver a much-needed lift to personal luxury goods, which have been seeing downtrend.
Retail Bestsellers
Ruffle detailing, subtle sparkles, knotted neckerchiefs and scarves signalled a return to femininity. The ’90s were revived with slip dresses making a huge comeback and the sales state the trend is here to stay. Brands continued to recreate the trend, selling out styles at super speed. A mashup of old-school tweed with new-age sparkle, varied stripes and colours like cotton-candy pinks, lemony yellows, deep emeralds and cobalt blues were a focal point.
| TOP FABRICS Faux Fur Faux Leather Cable and Aran Knits Cable knits Tweed Velvet |
TOP PRODUCTS/SILHOUETTES Slip dresses Bomber jacket Knit sweaters Metallic outerwear Plaid shirt Biker jacket Logos |
| TOP COLOURS Cotton Candy Pink Lemon Yellow Dark Charcoal Purgundy Military Green Earthy Browns |
