February 24, 2015

MAGIC Marketplace Trends

DBI, DECK, FOIB SS, HMB SS, KATE, NKE, URBN, VFC
By Priscilla Barker
Sentiment was mostly upbeat at the MAGIC Marketplace Show in Las Vegas during Feb. 17-19, despite ongoing, harsh winter storms that have hurt initial spring sales.

Most of the fall collections shown by vendors at MAGIC were updates of current trends. “Ath-leisure” remained the dominant look for fall 2015, with apparel and footwear vendors making updates to popular silhouettes while focusing on the comfort and functionality of individual pieces. Artisanal looks also remained a mainstay trend and were helped by the wide assortment of heavily textured and mixed-fabric pieces. Vendors and buyers were mostly upbeat at the show, although some footwear and apparel vendors admitted February sales of spring merchandise have been hurt by ongoing winter storms. "Clearance boots are selling strong, but sales of spring sandals are nearly nonexistent. It's hard to buy sandals when you have five feet of snow piled outside your door," one national brand footwear vendor said.

Apparel
Despite the swell of wide-leg denim recently shown by designers at New York Fashion Week, skinny jeans remained the staple of fall denim assortments. “We have one wide-leg style, but only one buyer has gone for it. They’re still sticking Men's joggers with moto-inspired details.with skinnies, so it probably won’t catch on until next spring,” one independent denim sales rep said. Most vendors sported one or two wide-leg silhouettes, but distressed denim remained a key trend, along with such updates as contrast stitching or patchwork. OTR Global believes the lack of a new silhouette in denim could be troublesome for the denim space in 2015, which saw a category sales decline of 10% in 2014 (source: The NPD Group/Consumer Tracking Service).

Joggers remained a popular bottoms silhouette (which OTR believes should bode well for athletic names, such as Nike Inc., and fast-fashion retailers, including Hennes & Mauritz AB’s H&M), and men’s styles were refreshed with moto-inspired zippers and stitching details. High-waisted denim gained additional momentum in women’s assortments, a part of the growing ’70s-inspired styles sported by vendors. OTR believes that trend, coupled with popularity of bohemian and artisanal looks in women’s, continues to favor Urban Outfitters Inc.’s Free People and Anthropologie chains.Free People's fall looks showcased at MAGIC.

The “urban outdoorsman” look grew in men’s apparel, which OTR expects should benefit VF Corp.’s The North Face and Timberland brands. Timberland apparel had a strong collection at MAGIC, merchandising layered, urban outdoor looks for both men’s and women’s in key fall hues, such as navy and burgundy.

In outerwear, styles were dominated by puffy, quilted down or synthetic pieces trimmed with fur, similar to looks sported in 2014.

Footwear
Most apparel vendors included sneakers in their fall 2015 collection, a nod to the continuing ath-leisure trend. OTR expects Nike to remain a beneficiary of ath-leisure, as well as athletic lines, with lifestyle styles such as New Balance Athletic Shoe Inc. and Brooks Sports Inc.

One buyer said athletic styles remain a key item, but dress shoes are expected to slowly regain popularity in the fall with the introduction of platform pumps featuring a chunky high heel. We believe the update in women’s dress shoes could slightly aid retailers that have struggled with the ath-leisure trend, including DSW Inc.

Suede (often in plum, burgundy, navy and gray) was a key material for fall, particularly on ankle booties that are expected to be the hot item for fall. In addition to suede, many vendors sported footwear in mixed fabric and textures. TOMS Shoes LLC featured a wool and tweed bootie, while Kate Spade & Co. had a leather and tweed pump, as well as a tweed sneaker. Some women’s brands (including Kate Spade) included whimsical or glittery details A Tevas flatform sandal.on slip-on styles, giving comfort shoes a dressy feel.

The rising popularity of the urban-casual look resulted in multiple vendors including lace-up boots in their collections. OTR expects the trend to again benefit Timberland, as well as Dr. Martens AirWair USA LLC.

Multiple vendors at MAGIC also showed flatform styles, which were included in many of this spring’s sandals assortments. One large national brand vendor said buyers had focused on white and silver flatform styles for spring and summer, but the trend could dissipate after fall and be taken over by other platform styles. OTR believes this could be a disappointment in 2016 for brands such as Deckers Outdoors Corp.’s Teva, which has taken advantage of ath-leisure and “normcore” trends over the last year.

Handbags and Accessories
There were no major new silhouette introductions in the handbag category, as designers instead focused on updating backpack, bucket bag, and tote styles in key blue, burgundy, magenta and dark-green hues. Fringe detailing and quilted handbags remained popular in multiple collections, and brands, such as Rebecca Minkoff LLC, continued to include mini-sized handbags in their assortment.

Although there was little newness in the category, OTR believes smaller, less-known brands could benefit from the urban outdoorsman and artisanal looks. Backpacks remain a strong trend for fall, which could help Herschel Supply Co. and Fenix Outdoor International AG’s Fjallraven, and OTR expects to see unique leather or waxed-canvas styles grow in popularity like those sported by Will Leather Goods.

 

OTR Global photos