Plus the data behind Ganni’s discounting strategy.
Between Copenhagen Fashion Week and the rise of cult brands like Ganni, Scandi Style has grabbed the industry’s attention. Many retailers are taking inspiration from its laid back, effortless aesthetic and high-quality reputation.
As the Copenhagen shows wrapped up last week, we take a look at the driving forces behind this style and how retailers can capitalize on these trends. Plus, we crunch the numbers behind Ganni, one of the most influential Scandinavian players, and their discount strategy compared to other contemporary brands.
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The 5 key factors
1. It’s not just fashion
The growing interest in Scandinavian lifestyle philosophies, such as the Danish concept of coziness (Hygge) and the Swedish idea of ‘the right amount is best’ (Lagom), is increasingly impacting global trends across fashion, homewares, interior design and lifestyle attitudes. With consumers increasingly looking to more sustainable ways of living, IKEA’s ‘Lagom collection’ last Spring further pushed the term into the mainstream and provided product upcycling inspiration.
2. The new ‘it’ brands
Several Scandi cult brands have gained international acclaim in recent years, most notably the Danish brand Ganni leading the pack. With its ‘cool-girl’ style and affordable price points that have reached a broad audience, influencers are lining up to be a ‘Ganni Girl’. The brand currently has 693k followers on Instagram and has recently opened stores in London, New York and LA – highlighting its growing global success.
3. Influencer Engagement
Sought after for their laid-back and minimalist style approach, a number of Scandi influencers are attracting increasing amounts of attention on social media, with thousands of Instagram followers and a growing presence among the street style crowd. According to HypeAuditor, Pernille Teisbaek currently has a follower growth rate of 1.57% and an engagement rate of 1.11%. There are currently over 1.27m posts on Instagram using the hashtag #scandinavianstyle.
4. The importance of sustainability
Copenhagen Fashion Week unveiled its new Sustainability Action Plan 2020-2022 in a bid to be the industry’s sustainable capital. The new plan will require all designers participating in the official show schedule to meet 17 minimum sustainability standards from January 2023, such as zero-waste set designs as well as a pledge to not destroy any unsold clothes.
5. The growth of Copenhagen Fashion Week
International buyers are no longer limited to the four traditional fashion capitals and have a more global view on trends. As a result, Copenhagen Fashion Week is quickly becoming a key event within the fashion calendar, catapulting Scandinavian designers further into the spotlight.
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What does Ganni’s discount strategy look like?
Ganni’s online site has a disciplined discounting structure with reductions twice a year during peak sale periods. Towards the end of the year (usually the last week of December until the end of January), the brand started communicating about discounts to its customers , then again mid-year (June to July). 2020 goes against the usual trend as the promotion advertising ‘save 60% off’ is still available on its site in February. Currently 35-40% of products are reduced on its site, despite being out of the brand’s traditional sale period.
During sale periods, approximately 50% of Ganni products will be reduced online with a discount depth between 30-58% complemented by the brand’s email communications to customers.
While Ganni’s promotion has lengthened compared to previous years, its discounting strategy is still reserved compared to other contemporary brands that are lowering prices more frequently online. Looking at the current proportion and depth of discount, Maje (US) has 46% of its stock discounted at an average of 54%. While Sandro (FR) has 62% of their range reduced by 44% average.
The H&M Group’s success
In times of increasing struggle and change in the retail landscape, there has been an influx of Scandi-inspired style due to the continued growth and presence of the Swedish fashion-giant and its brands, including & Other Stories, COS and Arket. In 2018 net sales for the group were reported at SEK 210 billion, while its global growth continued into 2019 as net sales increased by 11% and by 6% in local currencies over the financial year.
& Other Stories
No. of Stores: 70
Store Markets: 19
Brand Focus: The brand regularly promotes its Stockholm Atelier and often mentions it on relevant product labels.
No. of Stores: 283
Store Markets: 42
Brand Focus: COS often collaborates with artists, studios and galleries globally to create unique brand projects and collections.
No. of Stores: 19
Store Markets: 7
Brand Focus: Focusing on lifestyle and experience, the brand recently expanded into activewear and includes in-store cafes ‘founded on the ‘New Nordic Food Manifesto’.
No. of Stores: 127
Store Markets: 19
Brand Focus: The millennial-focused brand often co-creates with its community and most recently experimented with a live-stream shopping experience.
Other retailer efforts
Other retailers are responding to this growing interest within their email communications. The streets of Copenhagen provided the backdrop to Whistles’ outerwear collection back in October, while Mint Velvet gave customers inspiration on how to get the look. For instance in one communication from Mint Velvet, the retailer advised ‘pick a concise but complementary color palette and layer up. Grey or white is a timeless base and will work with pops of color and print.’
Fall/Winter 2020 trends to capitalize on
The color palettes
Hues were varied at Copenhagen Fashion Week, spanning from warm neutrals at Ganni to playful winter brights at Stine Goya. The introduction of bold colors was uncharacteristic for traditional Scandinavian minimalism, complementing the ’80s silhouettes noted below. Neutrals and earth tones will remain important with rust orange emerging as a statement shade. Lilac is already making waves in the market. Deeper shades of purple were also prominent across collections, highlighting the longevity of the trend moving forward.
Voluminous silhouettes and ‘80s disco aesthetics reigned supreme as the puff sleeve continues to prove its staying power. Designers such as Baum und Pferdgarten incorporated volume in quilted puffer jackets, while frilled mini dresses added movement and drama at ROTATE Birger Christensen’s.
A mix of elegant and functional fabrics were the standout materials for Fall 2020. Utilitarian influences were noted at By Malene Birger alongside relaxed leather, also seen at Ganni. Designers continued to favor feminine sheer and tulle materials tied into the oversized silhouettes in their collections.
Log in to EDITED to read our Runway Overview from Copenhagen Fashion Week for a more in depth coverage of key trends.
With Scandinavian brands and retailers pioneering fashion trends and sustainable practices, all eyes are on them for best practices within the industry.
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