Retail Unwrapped from The Robin Report

Is Saudi Arabia the New Luxury Hotspot?

Glyn Atwal — Mon, 02 Mar 2026 05:01:00 +0000

Entertainment Hub

Every retail trade show now has a Saudi presence. It is on a mission to prove its relevancy and profitability for brands outside the Kingdom of Saudi Arabia (KSA). Customers of these brands? Local, regional and international. Growth in regional tourism has benefited the Kingdom, which has not traditionally been considered a bucket-list destination. In 2025, Saudi Arabia welcomed a record 122 million domestic and inbound visitors, an increase of 5 percent versus 2024. But the Kingdom has bigger dreams.

The ambitions of Saudi Vision 2030 are gaining traction as the country works to diversify its economy. Saudi Arabia has positioned itself as both a regional and global entertainment hub, hosting mega-events ranging from Formula 1 and MDLBEAST Soundstorm to the FIFA World Cup in 2034. According to Taqua Malik, Founder & CEO at Freedomvisory Ltd, “Saudi Arabia is no longer an emerging market story, it is a scale-and-influence market where consumer sophistication, cultural confidence, and national transformation are converging at pace.”

Why should luxury brands expand their footprint into Saudi Arabia? It’s no longer an “emerging market” story; it is a scale-and-influence market where consumer sophistication, cultural confidence, and national transformation are converging at pace. For luxury, this is a chance to build enduring relevance with a young, discerning audience in a country shaping the region’s next chapter in culture, entertainment, tourism, and retail.

Tourism Retail

Anyone with a sweet tooth knows that Dubai chocolate has an unmistakable taste. This global culinary phenomenon is yet another reason to visit the Middle East. Dubai is already one of the world’s most popular tourist destinations and is reportedly the most popular city on TikTok. In other words, Dubai is a hotspot.

The success of Dubai Mall is a blueprint for why luxury retailers are chasing tourist spending. According to Chalhoub Group, personal luxury sales across the Gulf rose 6 percent to $12.8 billion in 2024 and are projected to reach $15 billion by 2027. This is arguably a much-needed boost to the bottom line of both waxing and waning luxury brands. Prada, for example, reported a 21 percent increase in revenue in the Middle East for Q3 2025.

Malls in the region remain powerful tourist magnets. The recent opening of Solitaire Mall in Riyadh has attracted a mix of lifestyle and luxury brands, from AAPE to Zegna. Retail investment is set to accelerate further. Knight Frank estimates that Riyadh will add 2.3 million square meters of retail space by 2030, including flagship developments such as the Mall of Saudi.

While tourist spending is estimated to account for approximately 50 to 60 percent of luxury sales in the Middle East, domestic demand will be pivotal to future growth. An expanding base of ultra-affluent consumers will have even greater spending power. According to the UBS Global Wealth Report 2025, Saudi Arabia leads the region with nearly 340,000 millionaires and is forecast to rise to 480,000 by 2029. This trend is cascading down the income pyramid. McKinsey & Co. projects that the number of households earning more than $250,000 annually will double between 2025 and 2050.

Next Gen Dominance

Saudi Arabia stands out as a youth-driven consumption market, with 63 percent of its population under the age of 30. It is a demographic dynamic that luxury brands can no longer afford to ignore. Dolce & Gabbana’s flagship store in Diriyah, which includes the DG Caffè, is now one of the brand’s largest locations globally.

The true game changer, however, is the rapid transformation of the economy. Women now account for more than one-third of Saudi Arabia’s workforce and over 45 percent of new entrepreneurs. This shift has empowered women to express personal identity and style in increasingly visible ways. According to Chalhoub Group research, Saudi women are the most engaged consumers of makeup and fragrance in the region. As Taqua Malik notes, “For luxury, this is a chance to build enduring relevance with a young, discerning audience in a country shaping the region’s next chapter in culture, entertainment, tourism, and retail.”

Cultural Relevance

Success in Saudi Arabia will be determined not only by a brand’s retail footprint, but also by its ability to embrace cultural relevance. According to The Future Laboratory, more than three-quarters (77 percent) of respondents believe luxury brands should offer localized collections or seasonal exclusives. For example, Brunello Cucinelli’s abaya capsule and Loro Piana’s Ramadan collection celebrate and respect local cultural identity.

Cultural relevance also extends beyond product into service and engagement. Discretion and intimacy are central to the luxury experience. Loro Piana’s Riyadh boutique, for example, features a VIC room, a private, appointment-only space. Malik observes, “The Saudi luxury consumer is values-led and socially attuned: they invest in quality, heritage, and prestige, but they also look for meaning, local resonance, and a brand’s ability to show respect through detail.”

For retailers, digital strategy must be equally culturally fluent. More than 90 percent of young Saudis actively use Snapchat, and high engagement combined with strong trust in peer networks makes the platform a vital touchpoint for luxury brands. Brands such as Givenchy were part of Snapchat’s 2025 AR Ramadan Mall. Malik adds that Saudis are “digitally fluent and globally aware, yet deeply proud of identity, rewarding brands that understand the nuance of Saudi social codes, family dynamics, and occasion-driven dressing.”

Saudi Arabia is still widely perceived as culturally conservative, but it is undergoing a shift not only in what consumers buy, but also in where they buy it. According to PwC, Saudi consumers make approximately 40 to 50 percent of their luxury purchases abroad. As luxury brands expand their physical presence within the Kingdom, spending will move closer to home.

Luxury brands can enter the Saudi market through multiple avenues. An investment license is primarily required when a brand intends to operate through its own Saudi entity, but it’s not the only route to market. Many luxury houses partner with regional operators such as the Chalhoub Group to navigate market entry, from securing prime retail locations to regulatory compliance and logistics. As Malik notes, “Partnering early can be an effective way to move quickly and de-risk rollout.” For example, Missoni recently opened its first store in Riyadh in partnership with Al Tayer Insignia.

The opportunity is significant. Riyadh offers luxury brand coverage of 65 percent, compared with 90 percent in Dubai. The viral success of Dubai chocolate is a reminder that the region’s vitality is deeply rooted in sensory pleasure and experience. Luxury has a natural resonance in Saudi Arabia, and according to Malik, the Kingdom “is building its own gravitational center, and luxury brands that approach it on its own terms will be best positioned to earn both trust and longevity.” There has never been a better moment for luxury brands to expand their horizons.

The Olympics Is a Runway Grab

Glyn Atwal — Mon, 23 Feb 2026 05:01:00 +0000

The Olympic rings are among the world’s most recognized symbols. Brands invest millions to be associated with the event’s values and global visibility. At the Milano Cortina Winter Olympics, legacy sponsors like Coca-Cola and Visa leveraged this platform to reinforce their brand stature. But a new gold medal contender has stepped onto the podium: luxury fashion. As Yuki Bi, CEO of Helios Worldwide, notes, “The ‘fashion as sport’ trend has been strong since the Paris Summer Olympics, and it is here to stay, at least for a while.”

What’s the latest shiny influencer strategy for fashion brands? And the answer is: Olympic champions.

Sportainment

The emotional pull of Brazilian skier Lucas Pinheiro Braathen winning South America’s first-ever Winter Olympics medal cannot be measured in social media metrics. It also helps explain why the Opening Ceremony, which featured not just Mariah Carey but also a runway show of white EA7 Emporio Armani and Ralph Lauren Americana-themed-uniforms, broke viewership records.

“It’s not new for brands to sponsor or design national team uniforms for major games,” says Bi, “but how it is being promoted, and the amount of attention they are garnering this Winter Olympics, is unprecedented.” This attention is driving demand for Olympic-themed merchandise. Polo Ralph Lauren’s Team USA Opening Ceremony Toggle Coat ($1,998) is already sold out in all sizes on the Ralph Lauren U.S. site. However, a key impact is the potential for brand earned media revenue (EMV), which can rival other sponsorship deals. According to data from Launchmetrics, Ralph Lauren had already generated $8.3 million in Media Impact Value (MIV) before the Winter Olympics even started!

This merging of sport and entertainment, or ‘sportainment,’ is a now-familiar formula across global events like Formula One. At the Winter Olympics, it is redefining engagement entirely. Clips of Snoop Dogg, Honorary Coach of Team USA, dominate feeds because sport has become storytelling for a new generation. According to Bi, “The popularity of the Olympic Games among Gen Z audiences stems from the vlog-like snippets of content across social media, especially TikTok and YouTube Shorts. In fact, most Gen Z audiences are watching the Winter Olympics via 15–30-second social media shorts.”

Fandom

Athletes have always been role models. Veteran skier Lindsay Vonn has been a Rolex Brand Ambassador since 2009. But recently, luxury fashion houses have been joining the race to sign the next sporting icon. At Beijing 2022, 18-year-old freestyle skier Eileen Gu’s gold medal tally led to a high-profile partnership with Louis Vuitton. The Winter Games have amplified celebrity endorsements into an entirely new form of influence. A game-changer is how fandom is creating a direct channel for brand storytelling at an unprecedented scale. Jutta Leerdam, who is an Omega Olympic ambassador, has over 6.2 million Instagram followers. Authentic content is driving engagement. Canadian speed skater Brooklyn McDougall’s unboxing her Lululemon gear went viral on TikTok.

High Performances

Luxury fashion partnering with sport isn’t new, but the Winter Olympics gives brands a stylistic signature and mass reach. Armani outfitting Team Italia makes cultural sense, but the Games also offer a platform for function-first brands such as Lululemon with Team Canada and Uniqlo with Team Sweden to elevate their fashion credibility.

“Fashion brands are realizing that their audiences and sports fans are no longer mutually exclusive,” Bi says. “In fact, Gen Z finds sports a very cool topic that adds social credibility to their lives. So, when brands invest in the Winter Olympic Games, they are also acquiring a brand new, aspirational young audience that they can grow in the future.”

The Winter Games are a live product demo under some of the most extreme conditions imaginable. When Lucas Pinheiro Braathen won gold wearing a white Moncler race suit, it was a victory for Moncler’s technical innovation. The brand extends the message with Moncler Grenoble’s “The Beyond Performance” exhibit in Milan. As Bi notes, “Younger audiences are learning from this year’s Milan Winter Olympics that competition gear can be fashionable and attractive while maintaining functionality.”

Brands are also replicating the Olympic experience in their retail environments, from the snow-white Armani jackets at Milano Linate Airport to experiential formats such as Ralph Lauren’s Olympic-themed pop-ups stretching from Cortina d’Ampezzo to Aspen.

Inclusivity

As the Winter Paralympics approach, inclusivity is emerging as a defining narrative. This is less about logo-first branding and more about meaningful design. Brands like Lululemon have introduced “Paralympian-approved” adaptive gear with magnetic zippers, seated-fit silhouettes, and braille details. It’s a powerful message that fashion and sport have no boundaries.

The Winter Olympics in a fashion capital is more than a natural convergence of sport and style. The Games have become a global podium for luxury brands. The result is a boost in brand prestige and reputation. Brand Finance reports that luxury apparel buyers who followed the Paris Olympics rated Louis Vuitton more highly for ‘reputation, social commitment, brand I love, trust, and recommendation.’

It’s a return on investment that can translate into long-term revenue growth. The 2028 Summer Olympics in Los Angeles will be even more of a spectacle and will put pressure on luxury brands to up their game. Which brands are ready to go for the gold?

Eyewear Outperforms Luxury Categories

Glyn Atwal — Wed, 18 Feb 2026 05:01:00 +0000

Why do the Kardashians always wear sunglasses? TikTok may have its own addictive answer, but celebrity influence has given luxury eyewear renewed life for aspirational customers. While the global market for personal luxury goods stagnated in 2025, eyewear continues to outperform other categories; Bain & Co. is projecting growth of 2 to 4 percent. And there are no signs of slowing.

Is luxury eyewear a growth opportunity? And the answer is: Eyewear outperforms other categories, projected to grow two to four percent, and design innovation no longer comes from a single creative vision; it is the result of an ongoing dialogue between design, data, and culture.

Licensing Leaps

Customers can now own a piece of the celebrity-driven luxury lifestyle as wannabe style setters, whether they wear prescription glasses or not. Licensing eyewear deals have made luxury logos accessible to an expanding base of consumers, many of whom are first-time luxury buyers. This business model continues to reap rewards. EssilorLuxottica, the world’s largest eyewear company, manages licenses for luxury brands including Giorgio Armani, Brunello Cucinelli, Burberry, Chanel, and Dolce & Gabbana. In Q3 2025, it reported its best quarterly performance ever, with revenue rising 11.7 percent to €6.9 billion. The consumer investment is significant, with luxury eyewear ranging from $202 for the A$AP Rocky Ray-Ban Wayfarer Puffer to $6,721 for the diamond edition.

The allure of the logo remains a critical decision point. According to the EY Luxury Client Index 2025, 42 percent of “prestige aspirational” luxury clients buy luxury fashion as a marker of status. That said, the global success of South Korean eyewear brand Gentle Monster is a reminder that for Gen Z, eyewear is less about status and more about self-expression as a statement of identity.

As luxury brands scale up eyewear operations, including launches like Victoria Beckham Eyewear with the Safilo Group, the landscape will only grow more crowded. This market demands agility as brands compete for consumers’ wallets and eyes amid unprecedented competition through social media exposure and expansive product choice.

Eyewear as a Proxy for Luxury

Accessories have historically been entry products for aspirational luxury customers, and eyewear is no exception. An impressive 71 percent of luxury clients are primarily driven by a desire to own high-quality products. Quality and provenance matter. Persol, for example, has been crafting sunglasses by hand since 1917 with artisans at its Lauriano plant in Turin, Italy, ensuring its Craftsmanship Campaign.

Sustainability gives luxury consumers the confidence to signal purpose. Nearly one-third (31 percent) of luxury clients rank sustainability among the top five factors influencing purchase decisions. Savvy eyewear brands merge sustainability with innovation. Balenciaga’s Blackout sunglasses (€1,200, made in Italy) use Eastman Acetate Renew, combining cellulose derived from wood pulp with recycled plastic that would otherwise end up in landfills.

Eyewear is also a visual extension of a brand’s DNA. Here’s where the ephemeral influence of emotion, identity and possibility play critical roles. Longchamp, for example, says its sunglasses “reveal the allure of the Longchamp Parisienne.” Maybe that’s true, but brands sell when they excite and surprise. According to Mor Margalit, Director of Brand Merchandising at GlassesUSA.com, “Design innovation in eyewear today no longer comes from a single creative vision. It is the result of an ongoing dialogue between design, data, and culture.”

Successful eyewear also rivals the versatility of today’s designer handbag collections. Gentle Monster is redefining the category through collaborations such as Tekken 8 and its Pocket Collection with Bratz, transforming culture and community into eyewear icons. Coach x GlassesUSA.com’s limited-edition Milky Pink Frame for 2026 embraces the concept of fusion fashion, which, according to Mor Margalit, is “recognizing that people don’t dress according to one fixed aesthetic. They blend moods, styles, and personal expression throughout their everyday lives.” For fashionistas (and the easily bored), multiple branded eyewear is the norm, similar to a closet full of handbags.

Celeb collabs are table stakes for luxury brands. Identifying eyewear-specific brand ambassadors creates emotional connections akin to those in beauty and fragrance. Orlando Bloom, for instance, is a brand ambassador for Porsche Design’s timepiece and eyewear collections.

Visionary Innovation

According to The State of Fashion 2026, smart eyewear is “poised for a breakout in 2026.” Despite Mark Zuckerberg’s infamous failed Meta Ray-Ban demo, consumer interest remains high, with waiting lists for AI-enabled glasses that take photos, record videos, make calls, play music, and access Meta’s AI assistant. Yet smart eyewear is not only about technology. BoF and McKinsey & Co. survey data show that style influences one-third of smart-glasses buyers. It’s a wake-up call and an opportunity for luxury brands to differentiate.

Eyecare is a new, cool, integral to both the fashion runway and the everyday wardrobe. Fashion and lifestyle brands without a core eyewear business may be leaving brand equity on the table. Visionary creativity is essential to capture a share of this growing market. After all, in the world according to the Kardashians, staying relevant and relatable may simply come down to how you frame the future.

Will Luxury Bow to Masstige?

Glyn Atwal — Mon, 08 Dec 2025 05:01:00 +0000

There’s a memorable scene in Emily in Paris where Emily carries a striking yellow Le Pliage Filet while shopping at a Parisian market. While Longchamp may not carry the same designer cachet as the Fendi Baguette or Lady Dior, which also appear in the series, it’s a reminder that masstige never goes out of fashion and may be the ultimate winning hand for aspirational luxury customers.

Masstige Growth

Masstige brands don’t have it easy being stuck in the middle between exclusivity and accessibility. They are mass-produced, relatively inexpensive goods that are marketed as luxurious or prestigious. The road to success for masstige brands can be fragile. Michael Kors, the original poster child of masstige, was a victim of its own overexposure, lack of focus, and brand erosion; it has yet to fully recover. Capri’s Q2 Fiscal 2026 results showed that Michael Kors’ revenue was $725 million, down 1.8 percent year over year, improving from a 5.9 percent decline in the previous quarter. A similar trend has played out for Kate Spade, which has already launched a Kate Spade Outlet Black Friday Preview Sale. Tapestry announced that the label recorded a 9 percent decline in sales to $260 million in Q1 fiscal 2026.

Brands that get the balance right, selling aspirational luxury at accessible prices, can deliver impressive returns. According to media reports, Longchamp’s revenue grew by 44 percent in fiscal 2023 and by 20 percent in fiscal 2024. Similarly, Ralph Lauren’s revenue rose 17 percent to $2 billion in Q2 of fiscal 2026, while Coach’s sales increased 22 percent to $1.4 billion in Q1 of its fiscal 2026.

In Chicago, shoppers can pick up an affordable logo-emblazoned polo shirt at a Ralph Lauren store, enjoy a $6 latte at Ralph’s Coffee, and have a $43 lobster roll at RL Restaurant. Accessibility is experience-driven: For aspirational consumers, “being there” gives them a taste of luxury.

Trading on Aspiration

Aspirational customers are a complex mix of behaviors. They buy products not necessarily for their function, but rather to project a desired status or lifestyle, typically associated with luxury or success. They are willing to pay for selective higher-end goods to reflect their taste and financial status. They are motivated by the symbolic value of brands that align with their self-identity. And they are big business. According to recent BCG & Altagamma research, 55 percent of the luxury market can be attributed to aspirational consumers who spend less than €2,000 per year.

Masstige is rich in symbolism; status combined with self-expression. According to The Lyst Index Q3 2025, which ranks fashion’s “20 hottest brands,” masstige brand Coach was ranked fifth and Ralph Lauren ninth. For many first-time buyers, Longchamp’s (not among the top 20) Le Pliage is an entry point to a luxury-like experience. These universally recognizable nylon bags with leather trimmings symbolize “French chic” and have created a brand community that is active and engaged on social media (#LongchampBagGirl).

Aspiration sells products, such as Taylor Swift’s striped Ralph Lauren engagement dress and social media coverage of Bella Hadid carrying a Coach Tabby bag during Paris Fashion Week. However, survey data suggest that Gen Z and Gen Alpha prioritize distinctive products that are self-expressive. This is how the Coach Brooklyn and Empire bags made a market impact. Aspirational products thrive on a concoction of marketing, social media and timing, delivering the right product at the right cultural moment.

Affordable Ersatz Luxury

Masstige is about building and nurturing relationships. It is often easier to do so through a $150 Le Pliage bag than through a $11,000+ Chanel classic. Price always remains a barrier for many aspirational and luxury buyers. According to the EY Luxury Client Index, 62 percent of luxury clients considered buying a luxury product but decided against it, primarily due to price. Masstige bridges the gap to luxury. The WWD x BCG Future of Fashion Report notes that next gen wants to impress others but is less willing to pay a premium for that right. Competitive pricing gives masstige brands a natural advantage at a time when discerning consumers are increasingly questioning both the perceived and real value of luxury. Masstige brands like Ralph Lauren provide access to offerings at various entry points to own a piece of the more coveted Lauren luxury brand.

However, price is only one factor in the value equation. Consumers expect masstige brands to deliver beyond the average product and service performance. For example, customers can customize a Le Pliage bag online, Coach offers complimentary leather care and cleaning service for life, and Ralph Lauren has recently launched Ask Ralph, an AI styling and shopping assistant. In each case, masstige brands work to exceed customer expectations and redefine the traditional boundaries of value. It’s worth the investment to try to retain customers. According to the WWD Report, next-gen consumers are 20 percentage points less likely than older generations to buy the same brand consistently.

Accessibility

Masstige is more democratic than luxury. It reaches a broader audience, although masstige retail is strongly prestige driven. Brands are deliberate about location. For example, Longchamp invests in flagship stores in prime locations that evoke luxury and style, such as SoHo in New York (La Maison Unique, reopened in April 2025) and the Champs-Élysées in Paris. Keying into ROE (return on experience), the savvy masstige brands offer customers the ability to experience the brand across different cultural contexts. In Chicago, for instance, shoppers can pick up a $110 logo-emblazoned polo shirt at a Ralph Lauren store, enjoy a $6 latte at Ralph’s Coffee, and have a $43 lobster roll at RL Restaurant. Accessibility is experience-driven: For aspirational consumers, “being there” gives them a taste of luxury.

A Delicate Balance

The success of Longchamp, Coach, and Ralph Lauren lies in selling accessible luxury to aspirational customers without compromising their brand image. Younger cohorts drive both current and future growth. According to Tapesty’s 2024 annual report, Coach gained over 6.5 million new customers in North America over the past year, with Gen Z and millennials accounting for more than half of that number. The masstige segment in fashion is highly competitive, and tariff pressures mean that these brands must adopt creative strategies to preserve their sense of prestige and still attract customers. As aspirational customers reflect on their spending priorities, the future of luxury will depend on how brand executives can translate desirability into sustained growth. Ask any fan of Emily in Paris, and they’ll tell you that luxury can be exclusive, yet still feel just within reach.

The Digital Product Passport: Regulation or Revolution?

Glyn Atwal — Mon, 03 Nov 2025 05:01:00 +0000

Regulation is no longer just a compliance issue that keeps corporate lawyers awake at night. It’s becoming a catalyst for market disruption and opportunity. A prime example is the European Union’s sustainability legislation, the Ecodesign for Sustainable Products Regulation (ESPR).

By 2027, every fashion item sold in the EU will be required to have a Digital Product Passport (DPP). A digital fingerprint accessible via a QR code will reveal a breakdown of the product’s materials, manufacturing details, supply chain, environmental impact, and lifecycle.

This new level of transparency gives consumers access to information that was once hidden or nearly impossible to obtain. It also provides brands with a direct channel for engagement throughout every stage of the customer journey.

Counterfeiting erodes consumer trust and brand value. A DPP enables buyers to instantly verify a product’s authenticity, boosting confidence in both primary and resale markets.

Product Authentication

Counterfeiting erodes consumer trust and brand value. A DPP enables buyers to instantly verify a product’s authenticity, boosting confidence in both primary and resale markets. The global secondhand apparel market is projected to reach $367 billion by 2029, growing nearly three times faster than the overall apparel industry.

As initiatives like Re.Uniqlo and H&M’s Pre-Loved gain traction, DPPs will help brands capture new revenue streams and own the resale journey. Bain and eBay estimate that DPPs could double a product’s lifetime value. EY’s Luxury Client Index 2025 reports that 54 percent of consumers would buy pre-owned products directly from a luxury brand. EON’s digital ID allows Coachtopia to be sold on Poshmark and already demonstrates how this model can work in practice.

Sustainability Performance

Consumers increasingly prioritize sustainability, especially in luxury, but are also skeptical about greenwashing. EY Luxury Client Index 2025 reports that nearly a third of respondents ranked sustainability among the top five factors influencing purchase. However, 24 percent say it’s not a priority because they see many brands’ sustainability as not credible or just greenwashing.

A DPP can restore credibility by providing verifiable data on a product’s lifecycle, from carbon footprint to water usage. It can also display durability scores and connect consumers to repair or recycling services, reinforcing circularity. A Mintel survey found that 51 percent of UK respondents say information about the durability of the item on the clothing item is the main factor that would influence them when buying clothes.

Product Chain

For many brands, provenance is central to their identity, yet transparency gaps remain. According to PwC’s New Generation Circular Fashion 2024 Survey, almost 40 percent of younger consumers say they lack information about how products are made.

A DPP bridges that trust gap, documenting where and how each item is produced and what materials it contains. For many French and Italian luxury brands, this stands as a hallmark of their savoir-faire. This is also the case for Calida, the Swiss lifestyle label, which will use the DPP as an effective touchpoint to reinforce its ‘Made in Europe’ positioning.

There will be no reprieve for fashion brands that fail to introduce a DPP for their products. And this isn’t just about fashion, as compliance will gradually extend to other sectors, including beauty. According to the 2025 C-Suite Sustainability Report, sustainability is the top-three executive priority, alongside technology adoption and artificial intelligence. The DPP perfectly illustrates how these priorities are converging.

Yet EU legislation should not be viewed as a regulatory hurdle but as a brand-building opportunity to strengthen consumer trust and engagement. DPPs will fundamentally transform how consumers interact with products and brands. Luxury labels, for example, can tell authentic stories rooted in sustainability and provenance. They can also create personalized digital experiences, as Balenciaga did with an exclusive soundtrack embedded in an integrated chip. Engagement like this delivers tangible results. Deloitte reported that in a DPP pilot, Prada found products enhanced with digital storytelling led to higher average customer spend.

The DPP will soon be the gateway for brands to operate in the EU, but its influence may extend globally, setting a new standard for transparency and accountability. This will create a level playing field where fashion brands can compete on more than price, using sustainability and authenticity to differentiate themselves from ultra-fast-fashion players.

Whether scanning QR codes becomes an everyday habit remains to be seen, but ultimately, it is the brand’s reputation on the line. In today’s hyper-transparent market, brands that ignore sustainability will not just fall behind; they will be called out.

Luxury Brands Chase F1

Glyn Atwal — Mon, 20 Oct 2025 04:01:00 +0000

Brad Pitt in F1 may have been this summer’s screen star, now come and gone, but there’s an interesting backstory to Formula 1 racing that may not be so obvious: luxury logos have become integral to the racing circuit. Luxury brands have always been synonymous with F1, where winning for both the F1 circuit and luxe brands depends on a synergy of skill, seamless team coordination, and constant innovation.

F1’s prestige, defined by values such as excellence, precision, and endurance, aligns seamlessly with those of luxury and prestige. And LVMH’s 10-year partnership has given the elite sport a fresh makeover as the title partner for the first race of the season, where it unveiled Louis Vuitton Trophy Trunks.

Fast Track Luxury

LVMH’s 10-year partnership has given the elite sport a fresh makeover. Louis Vuitton was not only the title partner for the first race of the season but also unveiled Louis Vuitton Trophy Trunks for the podium celebrations.

Brands like Louis Vuitton and TAG Heuer recognize that F1 is a fast track to growth. The sport’s global fan base has surged 63 percent since 2018, reaching 827 million. Once rooted in Europe, F1 has gone mainstream in the U.S. with races in Miami, Austin, and Las Vegas and continues to accelerate in China, where fans now top 221 million, up 37 percent year over year.

This reach comes with the aura of exclusivity. As Anne-Flore Maman Larraufie, Founder of SémioConsult, observes, “The sport’s prestige, defined by values such as excellence, precision, and endurance, aligns seamlessly with those of luxury and prestige.” According to the 2025 Global F1 Fan Survey, 70 percent of Gen Z respondents see F1 as representing a status or image that appeals to them.

A New Generation of Fans

F1 was once dominated by an older, male audience. The emotional pull of the sport is reaching new audiences. The Netflix series Formula 1: Drive to Survive and the film F1 have transformed their fan base: 43 percent are now under 35 (vs. 30 percent in 2018), while women make up 42 percent of fans (vs. 37 percent).

Today, F1 has become the new cool for a new generation of fans. For example, Christian Louboutin launched a limited-edition Racing capsule collection to coincide with the Singapore Grand Prix 2025.

Beyond the Finish Line

A key game-changer is how fans interact with F1 both on and off the track. The line between sport and entertainment is increasingly blurred. The F1 experience is not just about who crosses the checkered flag first, but celebrity culture, blockbuster music performances and social media hype.

Dua Lipa at Monaco, Lisa of Blackpink in Miami, and Garth Brooks performing at the forthcoming U.S. Grand Prix are as much a part of the sporting event as the drivers. For younger fans, this integrated ecosystem drives engagement. In the U.S., 70 percent of Gen Z respondents engage with F1 content daily, especially through streaming and social platforms.

Beauty in the Fast Lane

For prestige brands, the F1 ecosystem extends into brand discovery and expression. According to the 2025 Global F1 Fan Survey, 58 percent of Gen Z fans consider fashion and style important in their F1 fandom. F1 has become a new runway, with Lewis Hamilton (41 million Instagram followers), a brand ambassador for Dior and Lululemon.

However, it is now female beauty brands that are making an entry onto the grid. As the influence of beauty influencers declines in the U.S., China, and Europe, F1 can be an effective channel to connect with existing and future customers. As Larraufie explains: “When these brands appear in such unexpected events, it creates surprise, curiosity, and ultimately greater awareness.”

British skincare brand ELEMIS is an early mover. As the Official Skincare Partner of Aston Martin Aramco Formula One Team, it has launched four skincare collections. Co-Founder & CEO Sean Harrington describes this partnership as “mirroring innovative skincare with high-performance cars” and delivering “immersive, sensorial experiences that redefine modern luxury for a global audience.”

Beauty brands are also embracing F1 Academy, the all-female racing championship. Netflix’s F1: The Academy has raised its profile alongside the growing popularity of women’s sports.

Charlotte Tilbury was the first beauty brand to sponsor the series, reinforcing its empowerment message through its Hot Lips icon and “Makeup Your Destiny” slogan on the Charlotte Tilbury-operated by Rodin Motorsport car. More recently, Red Bull Racing partnered with Anastasia Beverly Hills for its Academy program.

It’s a timely move. Women now account for three in four new F1 fans, with women aged 16-24 as the fastest-growing segment. The 2025 Global F1 Fan Survey reported that 42 percent of female fans are following F1 Academy.

The Finish Line

F1 is no longer just about racing, but a cultural ecosystem where luxury, fashion, beauty and entertainment converge. Its high speed of change is reshaping how brands tell stories, connect with audiences, and deliver influence.

Brands need to be ready to take the fast lane, as a new generation of fans is already growing up with Lego’s Formula 1 collection and the imagined sound of motorsport. For brand managers, this could be music to their ears.

You’ll Need a Video Game Strategy for Next Gens

Glyn Atwal — Wed, 10 Sep 2025 04:01:00 +0000

Smart brands see online/video gaming as a shortcut to connect with young (and mercurial) consumers who are otherwise so difficult to reach. To put it into perspective, there will be $100 trillion in wealth transfer to Gen Z. For next gen marketers — and now those targeting Gen Alpha – gaming has become a go-to strategy to tap into those funds. We’re referring to the growing universe of platforms like Roblox which blend interactive gameplay, social connection and user-generated content. Games as a platform are reshaping the cultural definition of ‘play.’ One of the latest hits on Roblox is Steal a Brainrot that revolves around collecting and stealing as many Brainrots as possible. While this may sound bizarre to some, it feels completely normal to millions of young players.

Games and play by association are child’s play, but it might be surprising that video gaming represents a higher share of total media consumption than in any other age group. Video gaming is for children of all ages, and any brand executive can do the math. The Roblox 3D platform alone has more than 380 million monthly active users, growing 19 percent annually from 2021 to 2024. Minecraft grew 12 percent annually, while Fortnite followed with 10 percent. The scale is impossible to ignore.

And this is the edge of the gaming universe; the numbers are impressive. McKinsey & Co. reports that gaming accounts for the largest share of U.S. media consumption at 23 percent, compared with 21 percent for streaming and 20 percent for social media. According to Bain & Co., the global video game market reached $219 billion last year and is projected to grow by 4 percent annually through 2028. What’s more, according to Pew Research Center, 85 percent of U.S. teens report playing video games, and 41 percent say they play them at least once a day. Four-in-ten identify as gamers.

The key to tapping into gaming communities is authenticity -- the most successful brand activations don’t just show a potential customer a product. They embed the brand into core memories that they’re already creating with their friends.

Attention Immersion

The brands that play in the video gaming space know it’s not just about reach but about locking in the user’s attention. On TikTok, engagement is often measured in seconds or even milliseconds. According to Laila Nasr, Strategic Insights & Partnerships Manager at GEEIQ, “Console and PC gaming are the only digital mediums that get close to live-event levels in focus. It’s the difference between scrolling past a social media post and playing a game for hours.” Think about what this means for brands trying to reach next gens in a place they want to be.

McKinsey & Co. measures attention as valuable time spent, driven by focus and intent. Gaming’s advantage is immersion. Leaderboards matter, but the real difference is narrative. As Bain & Co. notes, “Increasingly, gamers and fans are falling in love with universes, stories, and characters rather than the entertainment format itself.”

Gamers invest in creating and co-creating digital identities. A Roblox survey found that 56 percent of Gen Z users agree that styling their avatar is more important to them than styling themselves in the physical world. As Nasr observes, “When you hang out with friends in the real world, you express yourself in specific ways, to show personality, interests, style, and so on. In social gaming environments, like Roblox and Fortnite, players do the same, but here, they’re not constrained by reality.” According to survey data reported in Bain & Co.’s Gaming Report 2025, customization and playing with friends are just as important for gamers on platforms like Fortnite, Roblox, and Minecraft. This relationship immersion leads to the most important currency of any brand: trust.

Trust by Association

According to dentsu’s 2024 State of Gaming Report, 78 percent agree that video games are where they connect with friends and meet new people. For brands, this creates a unique opening to build relationships in gaming communities rooted in authenticity.

“The key to tapping into these communities is authenticity — the most successful brand activations don’t just show a potential customer a product. They embed the brand into core memories that they’re already creating with their friends.” says Nasr.

Brands can build trust and engagement at a community level. For example, e.l.f. Beauty partnered on Love, Your Mind World, a Roblox game supporting teen mental health, and collaborated with Chime to launch Fortune Island: Earn. Learn. Flex, teaching financial literacy, which according to Patrick O’Keefe, chief integrated marketing officer at E.l.f. Beauty aims “to equip our community with the skills and swagger to be their best E.l.f. selves.”

Gaming platforms can be an effective virtual shop window. Vans dropped the Mixxa on Roblox before selling it anywhere else. And a source of valuable advice. Maybelline took over Roblox’s Paradise RP to demonstrate its Sunkisser Blush.

A bigger game-changer, however, is how these platforms are doubling down to create a virtual selling ecosystem. Beauty brands such as e.l.f. Beauty sell real products via Roblox while Fenty launched a shoppable game where players could unlock an exclusive shade of its Gloss Bomb lip gloss.

Gaming platforms are an ideal playground for users to discover and experiment with new products, brands, styles, and influences. For example, L’Oréal Paris lets users play around with the style and color of their avatar’s hair. Skateboarding fans can customize their own Vans shoes for their avatar. It’s a smart move. According to a Roblox survey, 84 percent say their physical style has been inspired by their avatar’s style. However, Nasr warns that success won’t come from brands simply adding a checkout button, “The winners will build experiences where shopping feels like play — where discovery feels earned, products feel native, and purchase is a natural extension of the game.”

A New Game Plan

Gaming is a medium where users commit time, focus, and emotion. As Nasr observes “Social media is saturated, but gaming offers the deeper engagement needed for brand love and loyalty to grow.” This depth of engagement also translates into conversions. YouGov data report that nearly a third of U.S. sandbox gamers agree with the statement, “I am a sucker for anything branded, even if it’s expensive,” compared with just 22.3 percent of the general population.

Creative content underpinned by strategic reasoning will be critical to successful brand activations, particularly in crafting aspirational experiences. For example, Maybelline’s Roblox game Glamhattan: Colossal Bubble (live from June 15 – October 15, 2025) invites players to explore New York neighborhoods, experiment with virtual makeup looks, unlock exclusive branded rewards, and purchase products directly in-game.

Savvy C-suite marketers understand that virtual immersion experiences drive a high level of engagement and know how brands can both disrupt and redefine the customer journey. It’s a game that brand executives can’t afford to lose. Kids don’t stop playing games when they become adults. It’s a market for life.

The Soft Power Shift: What It Means for U.S. Brands

Glyn Atwal — Thu, 04 Sep 2025 04:01:00 +0000

Emily in Paris is more than a Netflix blockbuster. It’s a global billboard for French influence, from food and fragrances to fashion. Coined by Joseph Nye, “soft power” is no longer just about geopolitics; it’s a competitive lever for brands. For U.S. companies, the question isn’t whether America is still a global soft power (it is) but how to use it more effectively in a world of shifting influence.

For U.S. brands, soft power is a valuable asset to be leveraged more effectively than competitors. U.S. brands may not be able to recreate centuries of heritage, but they can compete with cultural resonance and American-made authenticity.

International Stage

A nation’s soft power can be measured across multiple dimensions, allowing brands to draw on the distinctive attributes of their country of origin. In the 2025 Brand Finance Global Soft Power Index, Italy leads in heritage and culture, followed closely by France.

This cultural richness translates directly into brand equity, particularly for luxury houses. As Marco Calzoni, CEO of Franzi, an Italian luxury leather house founded in 1864, notes, “Owning a Franzi creation is like possessing a small piece of Italy.”

Luxury brands actively cultivate this soft power because legacy is nearly impossible to replicate. Gucci’s Garden Galleria in Florence retraces the House’s history, while Cartier’s “must-see” exhibition at London’s Victoria and Albert Museum reinforces the Maison’s imagery as a timeless icon of art and design.

Reputation Risk

The U.S. continues to top global soft power rankings, and it is no coincidence that American tech giants—Apple, Google, Microsoft, Amazon, and Nvidia—also lead Kantar’s BrandZ 2025 brand value list.

However, U.S. brands can’t afford to be complacent as the U.S. reputation has “taken a hit,” falling four positions to rank 15th globally. This doesn’t mean consumers (and investors) will suddenly turn their backs on U.S. brands, but according to the Pew Research Center’s Spring 2025 Global Attitudes Survey, public opinion of the U.S. has dropped sharply in countries such as Mexico, Japan, and Germany.

This decline in perception poses a potential challenge for U.S. brands aiming to win over international consumers. Tourism is already paying the price with an estimated $12.5 billion loss in international visitor spending for 2025. U.S. brands must actively manage reputation risks because consumers want to trust brands and seek those that reflect their own values.

Asia’s Pulling Power

China has overtaken the U.K. in global soft power rankings and is reshaping perceptions of what “cool” looks like. South Korea has built a global industry around cultural exports, from K-pop to Squid Game to skincare. This model is inspiring China to invest heavily in their own cultural exports. The recent hype around the Labubu doll craze could be the start of something much bigger. The Economist reports that 40 percent of Pop Mart sales are outside of China, and the firm is worth three times as much as Mattel and Hasbro. With over 350 locations worldwide, Pop Mart is opening a store at the Mall of America this fall. Even C-pop has broken into the U.S. music charts, with the Chinese girl group A2O May quickly becoming a cool act to follow.

In automotive BYD, overtaking Tesla as the world’s largest electric vehicle manufacturer by volume signals a broader shift from scale to influence. While the U.S. still outperforms China in the Global Innovation Index (GII), advances in technology and innovation, such as BYD’s five-minute charging battery, are reshaping global perceptions. Once dismissed as low-cost imitators, Chinese brands are gaining legitimacy. So, what’s changed? Take a look at IShowSpeed, who is one of YouTube’s top live streamers, who describes Chinese drone technology to deliver a KFC meal in Shenzhen as “China is really different, bro”.

The Democratization of Soft Power

Nations like India and Colombia are proving that you don’t need to be a brand marketing superpower to shape perception. India’s Ayurveda wellness brands and Colombia’s terroir-based premiumization are winning global consumers on authenticity and differentiation. “Colombia’s history of craftsmanship has been overlooked due to political instability,” says Francis Gillis, President of Bribón Cigars. “Now, we’re telling our story on our terms.” Juan Camilo Rodriguez, Founder and CEO of Bribón Cigars, adds: “We’re showing what Colombian terroir really tastes like. Colombia is going through a wave of premiumization, which is helping us break into new markets like Germany.”

Shifting Brand Power on the Global Stage

The battleground is already visible with major sporting events being hosted in the Middle East. Soccer fans will not have missed that Saudi Arabia will host the FIFA World Cup in 2034. U.S. companies still have unmatched global reach, but major sponsorship deals signal soft power in action. At the 2024 UEFA EURO Championship, nearly half the global sponsors were Chinese. TCL has locked in a major sponsorship for the 2028 Los Angeles Olympics.

For U.S. brands, soft power is a valuable asset to be leveraged more effectively than competitors. U.S. brands may not be able to recreate centuries of heritage, but they can compete with cultural resonance and American-made authenticity. Examples are Frye’s, Stetson’s, Filson’s, and Shinola’s focus on American craftsmanship. If brands are playing the soft power card, executives should ask: What authentic origin story can only we tell, and how do we scale it globally? Tiffany & Co. is a compelling case of leveraging U.S. soft power by blending the nostalgic aura of Hollywood with the contemporary influence of Beyoncé and Jay-Z.

The balance of soft power is shifting. The question every brand leader should be asking is: What’s our soft power strategy?

Facing the Facts: Workforce Mental Health Decline

Glyn Atwal — Thu, 03 Jul 2025 04:01:00 +0000

Anyone who visited L.L. Bean’s Instagram page in May was met with an unexpected message: “Off The Grid.” Spoiler alert. This wasn’t a technical glitch but a call to unplug. In recognition of Mental Health Awareness Month, the family-owned U.S. brand made a simple yet powerful decision to pause all social media activity for the entire month. In their own words: “We’re taking a break from social media to spend more time outside.”

Retailers have to take tangible metrics like productivity seriously as a red flag on employee wellbeing. Think about it: Can a disengaged retail worker in a luxury store truly deliver exceptional customer service? Can a disconnected employee at a trendy boutique contribute to a positive customer experience?

Next Gen Mental Health

Mental health is top of mind, especially among younger generations. According to Deloitte’s 2025 Gen Z and Millennial Survey, Gen Z ranked the mental health of their generation as one of their top societal concerns, second only to the cost of living, and ahead of environmental protection.

While brands like L.L. Bean are helping to destigmatize mental health, others have made it a central part of their engagement strategy to build a strong sense of community among Gen Zers. Maybelline’s Brave Together is a global program that offers support tools for those experiencing anxiety and depression. Their practical efforts include partnering with NGOs to provide a free mental health helpline. Brands like Madhappy have even made mental wellbeing integral to their identity as, “a clothing brand for a community of optimists.” Skepticism aside, that’s promising a lot.

Workplace Wellbeing

As brands become more serious about addressing mental health, there’s also a growing need to refocus on their most valuable asset: the employee.

For starters, the share of entry-level workers who said they feel positive about their employers’ business prospects fell to 43.4 percent in May, the lowest level since Glassdoor, a workplace review platform, began tracking it in 2016. Add to that, overall employee confidence is also at a record low.

According to Gallup’s latest State of the Global Workplace report, global employee engagement and wellbeing declined in 2024. McKinsey & Co. reports that quiet quitters make up between one-fifth and two-fifths of an organization’s workforce.

Employers have to take tangible metrics like productivity seriously as a red flag on employee wellbeing. Think about it: Can a disengaged retail worker in a luxury store truly deliver exceptional customer service? Can a disconnected employee at a trendy boutique contribute to a positive customer experience? It’s a wake-up call, especially considering that 78 percent of customers say a single negative interaction with a sales advisor can lead them to abandon a purchase.

According to Mind Share Partners’ 2025 Mental Health at Work Report, frontline workers in the U.S. are experiencing higher levels of burnout. In the retail sector, employees face pressure from a range of job-related challenges, from demanding customers and inflexible schedules to low pay. Industry-specific issues, such as concerns about physical security, often go unreported in employee surveys and these stressors are having a clear impact on retention. A McKinsey & Co. study found that 34 percent of frontline retail workers in the U.S. cited health and wellbeing as their primary reason for considering leaving their current job, compared to 38 percent who cited pay.

Talent Drain

Retaining retail talent is no longer just an HR concern; it’s a business imperative. A CXG study revealed that 51 percent of retail employees in the luxury sector are considering quitting. That pales in comparison to management headcount reductions. Without engaged, enthusiastic talent, in-store retail is at risk.

McKinsey & Co. data shows that, as of 2023, 72 percent of U.S. retail employees who left their jobs in the past three years have exited the industry entirely. This ongoing talent exodus has created a significant gap, making it increasingly difficult for retailers to attract talent from an ever-shrinking pool. Then there’s the issue of how a retailer ensures legacy knowledge with such a high turnover. Where are the emerging leaders needed to run the retail operation in the future? And how does a brand nurture authentic customer relations without a committed workforce?

Delivering Mental Health Support

Many brands are demonstrating their commitment to employee wellbeing. Policies on the life-work balance and flexible working agreements are increasingly becoming the norm. But is there a perception gap? According to Gallup, only 39 percent of employees in the U.S. strongly feel that someone at work cares about them—a decline from 47 percent in 2020.

This raises an important question: How can company executives meet all employees’ growing expectations around wellbeing? In a changing workplace environment, employees are increasingly seeking and demanding support mechanisms within their organizations. AXA’s 2025 Mind Health Report found that 52 percent of respondents want their company to implement mental health support.

Brands are responding. Nearly 85 percent of large U.S. employers now offer workplace wellness programs. Walmart, for example, partners with Lyra to provide up to 20 therapy or mental health coaching sessions per person, including for family members, at no cost. Some initiatives are tailored to the unique needs of specific sectors. Head Up, a global program created by L’Oréal Professionnel Paris, offers hairstylists free mental health resources.

Great Place to Work

Despite increased corporate spending on wellbeing, there are growing concerns that such programs are not delivering meaningful outcomes. According to research reported in Harvard Business Review, “anticipated improvements in wellbeing are not being realized” which is in part explained “by a focus on the individual employee rather than the systems that affect them.”

This doesn’t mean companies should abandon these initiatives. Instead, they should rethink holistically how organizational culture can foster a positive working environment at every level. It’s no secret that culture isn’t just about “how we do things around here” but a source of competitive advantage. Ultimately, it’s about being a great place to work.

Inspiration can be drawn from the Hilton organization. Named the No. 1 Best Company to Work for in the U.S. for the second consecutive year, Hilton exemplifies a people-first culture “designed to support inclusion, wellness, growth, and purpose for its team members around the world.”

A Holistic Approach

Mental health in the workplace is complex, with no easy answers. Employees today face new and unpredictable pressures, from increasing economic uncertainty to the rapid rise of new technologies (AI being the latest perceived threat).

Executives must do more than address work-related challenges; they must make a healthy workplace culture a strategic priority by taking a holistic view of all the elements that feed into the organizational ecosystem. There are no shortcuts. “Carewashing” or “wellbeing-washing” could easily become the next “greenwashing,” and current and prospective employees will see right through it.

Investing in employee mental health is ultimately an investment in people. Brands must recognize that wellbeing is a win-win. A healthier workforce strengthens both the brand and the business.

Rimowa’s Upcycling Edge

Glyn Atwal — Tue, 24 Jun 2025 04:01:00 +0000

Upcycling is in fashion. Rimowa recently introduced its Re-Crafted service in the U.S., offering to buy their expensive, used aluminum suitcases, refurbish them, and give them a second life. More than just sustainable, Rimowa Re-Crafted has become a coveted fashion statement. Demand is currently outpacing supply, with buyers needing to sign up for notifications ahead of each new drop. Rimowa is not only showcasing its commitment to sustainability but is re-crafting its heritage with engineering excellence to create a powerful brand narrative.

Brands can lower the production costs associated with sourcing new materials by upcycling. This drives economic and environmental value, promoting resource efficiency and reducing waste. Embracing upcycling also allows brands to attract new more conscious consumers while driving that competitive edge. Today more than ever incorporating upcycling practices helps brands align with changing regulations and reduce risks associated with resource scarcity.

According to Christine Sintermann, Founder & Business Development at Biosofa, an Italian brand that produces natural furniture applying upcycling practices (such as the use of pressed cotton padding recycled from hospitality textile waste), “Sometimes, it’s worth the investment to restore or transform existing materials rather than always producing new ones. For brands, this approach can lead to unique, story-rich designs while aligning with the growing consumer demand for sustainability.” She adds, “We need to be more mindful of how we use resources, especially when it comes to managing waste. Too many materials are discarded unnecessarily when they could be given a second life. Upcycling is not just about reducing waste—it’s about rethinking value.”

Conscious Consumption

Greater consumer awareness and scrutiny are changing consumption patterns. According to Euromonitor International’s 2024 Sustainability Survey, over 60 percent of consumers seek to impact the environment positively. In response, brands in the fashion industry are becoming increasingly transparent about their environmental progress. While environmental impact dashboards may not flash on the runway, they’ve become a critical part of a brand’s image perception. For example, Tommy Hilfiger reports that its circular business models have kept over 110,000 pounds of textiles out of landfills since 2020.

And brand reputation matters (remember #Burnberry?), even as consumers face growing financial pressure to pay a premium for conscious consumption. The ‘SHEIN x Rescued’ initiative, which aims to reduce waste by upcycling deadstock fabrics, is far from an isolated case.

Beyond Sustainability

The case for brands to embrace upcycling solutions centers primarily on sustainability performance and staying ahead of regulatory pressures. As Sintermann notes, “Upcycling will play an increasing role in sustainable design, especially as regulations and consumer preferences push the industry toward circularity.” For example, The Ecodesign for Sustainable Products Regulation will require fashion companies in the EU to report on the management of excess stock and will make it illegal to destroy unsold products.

However, companies must evaluate the benefits of upcycling across the entire value chain. Stephanie Joy Benedetto, Founder and CEO of Queen of Raw (now Aloqia), a platform that connects sellers of unused fabric with buyers, emphasizes the importance of integrating upcycling into the broader business strategy. “Brands can lower the production costs associated with sourcing new materials by upcycling. This drives economic and environmental value, promoting resource efficiency and reducing waste. Embracing upcycling also allows brands to attract new more conscious consumers while driving that competitive edge. Today more than ever incorporating upcycling practices helps brands align with changing regulations and reduce risks associated with resource scarcity.”

Green’s Cool Edge

One game-changer is how brands have shifted from seeing upcycling as a “nice-to-have” green marketing tactic to recognizing it as a strategic branding asset. Urban Outfitters, for example, has expanded its exclusive upcycled collections under the Vintage + ReMade program. Its recent collaboration with artist Maggie McLaughlin featuring designs made from upcycled materials has nearly sold out. It is a clear message that consumers are not just demanding sustainable practices, they’re seeking distinctive, style-forward products with authentic green credentials.

Likewise, Coach pushed the boundaries of coolness with the 2023 launch of its sub-brand, Coachtopia, built around the slogan, “Have taste, love waste.” (The founder’s 2024 Ted Talk titled “Luxury, not landfill — the waste-free future of fashion” has been viewed over 500,000 times). The brand, which embodies a “world of circular craft,” introduces a distinct creative identity designed to captivate a new and younger audience who may not connect with Coach’s more traditional designs.

Upcycled Community Relationships

The marketing potential of upcycling goes beyond just the physical product and offers brands the opportunity to develop deeper emotional brand relationships. Coachtopia, for instance, has a sub-cultural personality that is “powered by community.” Similarly, Uniqlo has expanded its RE.UNIQLO STUDIO concept internationally, where sales associates guide customers through a variety of options like repairing, remaking, reusing, and recycling. This isn’t about a focus on selling new merchandise, it’s about creating personal and meaningful interactions.

Green Innovation

Creativity and innovation are both drivers and outcomes of upcycling initiatives. Material innovation has for example become a key competitive battleground in the fashion sector. Brands are driven to experiment and develop new sustainable materials which is not always easy as Sintermann notes, “Upcycled materials should not compromise durability or aesthetics.”

Yet, brands have shown that innovation can be part of the solution. Timberland, for instance, has developed ReBOTL material made from plastic bottles and HoverLite Comfort Technology crafted from recycled rubber. Strategic partnerships can facilitate effective knowledge transfer. For example, lululemon collaborated with the Australian enviro-tech startup, Samsara Eco, to launch a limited-edition Packable Anorak made from enzymatically recycled polyester.

Scaling Up

The growing demand for upcycling solutions has created a gap in the value chain. As Benedetto explains, “The biggest challenge for brands has been developing the infrastructure and technological capabilities needed to support efficient upcycling processes. Traditionally, this has required significant investment and innovation.”

Companies must refigure their value chains and create ecosystems that support a circular business model. Brands such as Ralph Lauren and Victoria’s Secret have partnered with Aloqia to meet this challenge. Sintermann reinforces this, noting, “The challenge will be scalability—integrating upcycled materials into mass production without sacrificing craftsmanship.” Hugo Boss has taken a step in this direction with the launch of Eightyards, an independent corporation focused on recycling and reusing the group’s surplus materials.

Benedetto is confident that the future of upcycling is poised for growth “because of regulatory changes, increased consumer demand, technological advancements in design and manufacturing, and collaborative efforts among brands, suppliers, and technology providers.”

Upcycling Washing

Authenticity and transparency are key to any purpose-driven strategy, as consumers will punish brands for deceptive or misleading sustainability claims. According to NIQ data, 77 percent of consumers will avoid brands that are guilty of greenwashing. Brands should not question whether they have an upcycling strategy, but whether their upcycling efforts are truly delivering value. Get it right, and brands can benefit from new profit opportunities. Get it wrong, and brand management could face a PR crisis.