Cache Flow #08: Fashion News Roundup
January 18-24: This Week in Fashion x Tech x Resale News
In this weekly series, we feature a roundup of the latest news in fashion x tech x resale.
⏳ We want to know: on average, how long does it take for you to list an item for sale?
Decluttering closets, often driven by minimalism trends, leads to an influx of unwanted clothing that overwhelms existing disposal systems: While high-value items tend to find avenues through luxury consignment and resale platforms, the infrastructure for managing low-value textile waste is inadequate. Consequently, these garments often end up in landfills or are exported to markets in developing countries, where they can burden local waste management systems. To address this issue, experts advocate for reducing overconsumption by unsubscribing from brand communications and emphasizing quality over quantity. Additionally, community-based solutions like mending workshops and upcycling initiatives are emerging to promote slower consumption and strengthen local connections within the fashion ecosystem.
The U.S. may experience approximately 15,000 brick-and-mortar store closures in 2025, a significant increase from the 7,325 closures recorded in 2024: Factors contributing to this trend include persistent inflation and a growing consumer preference for online shopping to secure better deals. Notably, general-merchandise discount stores accounted for about 23.9% of total closures in 2024. The report also highlights that retailers unable to adapt supply chains and implement cost-cutting technologies were significantly impacted, as consumers increasingly favor convenience, competitive pricing, and efficient service.
Hugo Boss has globally implemented AI-powered product content across its e-commerce platforms: The company's Web3 & Immersive Experiences team utilizes advanced AI tools to create engaging images and videos, exemplified by an AI-generated video featuring a model in Hugo Boss attire. This initiative aligns with Hugo Boss's broader digitalization strategy, which aims to develop over 90% of its products digitally by 2025, up from approximately 65% in 2023. By integrating AI into its e-commerce content, Hugo Boss seeks to provide personalized and dynamic experiences, reinforcing its position at the forefront of technological innovation in the fashion industry.
Infinite Reality, a leading metaverse entertainment and production company, has acquired Obsess, an experiential e-commerce platform specializing in creating virtual stores for brands: This strategic move aims to enhance Infinite Reality's capabilities in immersive online shopping experiences, combining Obsess's virtual store technology with Infinite Reality's metaverse expertise. The acquisition is expected to accelerate the adoption of immersive commerce solutions, offering brands innovative ways to engage consumers in virtual environments.
Online luxury resale platforms like Fashionphile, The RealReal, and Rebag are increasingly establishing physical retail locations to enhance growth and customer engagement: Fashionphile plans to open new stores in cities such as San Francisco, Dallas, and Atlanta in 2025, aiming for a total of 14 locations by year's end. Similarly, The RealReal has expanded to 15 stores, while Rebag has launched shop-in-shops within Bloomingdale's and partnered with Walmart to offer pre-owned luxury items online. These moves reflect a recognition that certain aspects of the shopping experience, like the thrill of discovery, are difficult to replicate online
Fashion brands are increasingly diversifying into sectors like home décor and beauty to leverage customer loyalty and tap into growing markets: This shift responds to changes in consumer behavior, especially post-pandemic, where homes have become central to daily life, serving as offices, entertainment hubs, and spaces for personal connection. The home décor market, for instance, reached $749 billion in 2023 and is projected to exceed $1 trillion by 2032. Luxury brands have long embraced such diversification, and now companies like Zara and H&M are democratizing this approach, creating comprehensive ecosystems that resonate with modern consumers' aspirations.
Menlo Ventures has announced its investment in ShopMy's $77.5 million Series B funding round, co-led by Bessemer Venture Partners and Bain Capital Ventures: ShopMy addresses the rising customer acquisition costs and the increasing consumer reliance on influencer recommendations by providing a platform that integrates creator partnerships, affiliate marketing, and automation. ShopMy's automated gifting tool has processed over 190,000 product requests, and its performance-driven tools have generated 16,000 pieces of creator content with over 125 million views, achieving a cost-per-click 53% lower than Instagram ads. The company has driven more than $352 million in brand sales with a 5x return on investment, supporting 100,000 creators earning commissionable revenue.
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With love and hot girl energy,
Cache 💚