US Back-to-School Report #4: Top Trends for 2016

SEPTEMBER 6, 2016 US Back-to-School Report #4: Top Trends for 2016 1. There has been much debate over the athleisure trend and its sustainability....
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SEPTEMBER 6, 2016

US Back-to-School Report #4: Top Trends for 2016 1.

There has been much debate over the athleisure trend and its sustainability. We think athleisure is not on its way out, but rather that it is adopting a new, less-recognizable look that still maintains the trend’s functionality and comfort—and that it will play a big part in this year’s back-to-school season. Classic athleticwear from the 90s is making a comeback and boosting athleisure. Adidas and Reebok are dedicating entire marketing campaigns for their Adidas Originals and Reebok Classic brands, respectively.

2.

Known for its functionality and versatility, denim is one of this year’s biggest back-to-school trends; jeans and denim jackets are everywhere. Retailers have incorporated flexible and stretchable fabrics into denim to maintain comfort and wearability, and have noted a strong response. Pins, patches and embellishments are all trending, giving classic denim a revival with a new style. The 70s are back, too, in the form of flared jeans and Birkenstocks.

3.

Sneakers, particularly those that are hard to find or are released in small batches, are a key part of every outfit, it seems. Paired with everything from dresses to athleticwear, sneakers are driving a trend that is in line with Gen Z’s strong desire for both comfort and originality. 4. 5.

YouTube stars have a good deal of clout in dictating back-to-school trends this year. We expect these trends to continue to be relevant into the upcoming holiday season.

DEBORAH WEINSWIG, MANAGING DIRECTOR, FUNG GLOBAL RETAIL & TECHNOLOGY [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 DEBORAH WEINSWIG, MANAGING DIRECTOR, FUNG GLOBAL RETAIL & TECHNOLOGY Copyright © 2016 The Fung Group. All rights reserved. [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2016 The Fung Group. All rights reserved.

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SEPTEMBER 6, 2016

US Back-to-School Report #4: Top Trends for 2016 According to Trendalytics, a merchandise intelligence platform tracking trends, searches for “back to school” accelerate in July and peak in August. Such searches are up from last year: the week of July 10, 2016, Google searches for “back to school” were up 37.5% compared to the same week in 2015. This year’s must-have trends for school range from bomber jackets to sneakers, denim to athleticwear, and embellished backpacks to do-ityourself (DIY) school supplies. The majority of people heading back to school this fall are Gen Zers, who place a good deal of importance on their appearances and their ability to stand out from the crowd. The latest fashion trends allow for a blast from the past—in the form of vintage T-shirts, athleticwear and sneakers—to be personalized with patches, fringe and pins that suit the individual style of the 2016 Gen Zer. Athleisure Is Changing Shape While many reports are saying the athleisure trend may be on its way out, we believe it is simply changing shape.

While many reports are saying the athleisure trend may be on its way out, we believe it is simply changing shape. What is trending now is a different version of athleisure, one that still carries the same essence of what made the trend so popular in the first place—comfort and versatility. MerriamWebster defines athleisure as “casual clothing designed to be worn for both exercising and for general use.” According to this definition, athleisure is still on trend, as evidenced by the clothing being released by streetwear and sportswear brands. Streetwear brands are often expensive, and produced in only limited quantities. Thus, many fast-fashion brands are working create similar styles.

L: Public School sweatshirt dress, $695. R: Forever 21 version, $22.90. Source: Company websites

DEBORAH WEINSWIG, MANAGING DIRECTOR, FUNG GLOBAL RETAIL & TECHNOLOGY [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2016 The Fung Group. All rights reserved.

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SEPTEMBER 6, 2016 The athleisure trend has also evolved. The look is now more refined and less similar to traditional athleticwear, but the clothing still maintains its multifunctional purpose.

The athleisure trend is now more refined and less similar to traditional athleticwear, but the clothing still maintains its multifunctional purpose.

L: Kenzo sweatshirt, $228. R: Diesel sweatshirt, $120. Source: Company websites

Authentic sportswear is also coming back into the spotlight, according to research firm Stylus, with brands such as Reebok, Adidas and FUBU bringing back classic items that define the core of their brands.

Source: Twitter, @adidasoriginals



DEBORAH WEINSWIG, MANAGING DIRECTOR, FUNG GLOBAL RETAIL & TECHNOLOGY [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2016 The Fung Group. All rights reserved.

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SEPTEMBER 6, 2016 Denim Strengthens Again, After Leggings Trend Cools Denim and jeans are always staples for back to school, but this season, denim is one of the main points of interest for a trendy outfit. Skinny jeans are now a mature trend, according to Trendalytics, and Internet searches for them are down 1% compared to last year. Comparatively, searches for flared jeans have spiked by 20% compared to last year. Even more trendy this season are cropped flared jeans; online searches for these are up 278% compared to last year, and the trend is buzzing on social media. Skinny jeans are now a mature trend, according to Trendalytics, and Internet searches for them are down 1% compared to last year.

Source: Instagram, @paige

Denim jackets are also trending this season, with online searches for them up 31% compared to last year. Particularly trendy are the ways in which denim jackets can be personalized with pins, patches and custom embroidery. These denim staples are being paired with even more denim, as denim shirts and dresses are also very popular this season.

Source: Instagram, @urbanoutfitters DEBORAH WEINSWIG, MANAGING DIRECTOR, FUNG GLOBAL RETAIL & TECHNOLOGY [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2016 The Fung Group. All rights reserved.

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SEPTEMBER 6, 2016 In line with our opinion that athleisure is here to stay, retailers such as American Eagle Outfitters have highlighted their efforts to adopt fabrics to give denim new life within the athleisure trend. American Eagle said that it saw denim outperform knit tops and accessories in the second quarter. The company’s back-to-school and fall collections include an expansion of its signature Denim X and Flex jeans, which are said to offer “360-degree stretch.” American Eagle noted in its second-quarter earnings call that its bottoms business was stronger than ever. Abercrombie & Fitch launched a campaign based solely on denim this quarter, called “The Blues,” and the company also integrated “Epic Flex” materials into its Hollister brand jeans for a stretchier, more comfortable fit. The company launched an additional campaign for back-to-school centered on its new Epic Flex jeans. Gap Inc., inspired by the success of its Athleta brand, introduced stretch fabric across all three of its main banners (Banana Republic, Gap and Old Navy), referring to the move as “a direct lift from the active space.” Bomber Jackets a Hot Item One of fall’s biggest trends is the bomber jacket. Originally created for military pilots, bomber jackets recently gained mainstream cultural clout after they were featured on runways by Raf Simons, Helmut Lang and Vetements and were then quickly adopted by celebrities such as Kanye West and Rihanna. Trendalytics says that, based on social media buzz and online search patterns over the past six months, bomber jackets are a growing trend. Online searches for the jackets are up 148% compared to last year. Fastfashion companies H&M, Topshop and Forever 21 now offer affordable versions that are destined to be some of fall’s most popular items.

Online searches for bomber jackets are up 148% compared to last year.

Source: Instagram, @forever21

DEBORAH WEINSWIG, MANAGING DIRECTOR, FUNG GLOBAL RETAIL & TECHNOLOGY [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2016 The Fung Group. All rights reserved.

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SEPTEMBER 6, 2016 Backpacks Evolve While backpacks have always been a back-to-school staple, they are now considered to be a growing trend, according to Trendalytics. Online searches for backpacks are up 15% compared to last year, as fashion brands and social media influencers have been sporting them outside of school in leather, satin, velvet and embellished versions.

Online searches for backpacks are up 15% compared to last year.

Source: Instagram, @haileybaldwin

Source: Instagram, @zara

According to Google Shopping Data for the US from June–July 20, the following are the must-have backpack brands for this season: 1. PINK 2. Sprayground 3. Kavu

DEBORAH WEINSWIG, MANAGING DIRECTOR, FUNG GLOBAL RETAIL & TECHNOLOGY [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2016 The Fung Group. All rights reserved.

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SEPTEMBER 6, 2016 4. Fjällräven Kånken 5. Pokémon Searches for PINK brand backpacks spiked 1,000% this year compared to 2015.

Searches for PINK brand backpacks spiked 1,000% this year compared to 2015.

Source: Instagram, @vspink

While not in Google’s top five list, what are known as “cartoon” backpacks are one of the newest trends. Accessory brand JumpFromPaper created a line of canvas backpacks that appear to be two-dimensional, although they are fully functional.

Source: Jumpfrompaper.com DEBORAH WEINSWIG, MANAGING DIRECTOR, FUNG GLOBAL RETAIL & TECHNOLOGY [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2016 The Fung Group. All rights reserved.

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SEPTEMBER 6, 2016 70s Styles and Athleisure Top Trends in Shoes According to Google searches this year, Birkenstocks are the top choice in footwear, and they have been one of the most popular shoe brands for the past three years; interest in the brand is up 46% year over year. The sandals have become so popular that the company is reportedly going to stop selling merchandise through Amazon due to the exorbitant amount of counterfeits that are sold on the website. The company will not authorize third-party retailers to sell Birkenstocks on Amazon, either. According to Google Shopping Data for the US from June–July 20, the musthave shoe brands for the upcoming school year are: The international market for sneakers is currently booming; sales totaled $17.2 billion in 2015 and grew by 8% year over year, according to SportsOneSource.

1.

Birkenstock

2.

Nike Jordan

3.

Chaco

4.

Under Armour Curry

5.

Adidas Yeezy Boost

The international market for sneakers is currently booming; sales totaled $17.2 billion in 2015 and grew by 8% year over year, according to SportsOneSource. It is no surprise that some of the most coveted back-toschool items are this year’s most exclusive sneakers, which include the Nike Jordan and Adidas Yeezy Boost.

Source: Highsnobiety.com

YouTube Stars More Influential in Driving Trends Viewing time for back-to-school-related YouTube videos is up more than 70% year over year. YouTube stars such as Eva Gutowski, who publishes under “MyLifeAsEva,” are promoting the newest and best back-to-school trends, particularly DIY trends that allow students to add personal twists to what otherwise might be mundane shool supplies, while saving money at the same time. Gutowski’s “School Supplies Haul 2016” video has garnered more than 3 million views at the time of writing.

DEBORAH WEINSWIG, MANAGING DIRECTOR, FUNG GLOBAL RETAIL & TECHNOLOGY [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2016 The Fung Group. All rights reserved.

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SEPTEMBER 6, 2016

This back-to-school season, we expect to see a number of throwback styles, with odes to the 70s and 90s paired with personalized touches that make the looks relevant today.

Source: YouTube

Brands are also taking note of these trends and making their own DIY videos for the back-to-school season. Target channeled college stylist Jordan O’Brien to give viewers ideas on how to spice up their dorm rooms. At the time of writing, O’Brien’s Target video had more than 1.3 million views.

Source: YouTube

This back-to-school season, we expect to see a number of throwback styles, with odes to the 70s and 90s paired with personalized touches that make the looks relevant today. Retailers are offering a wide array of items to cater to current trends that focus on individuality, comfort and versatility. We think these trends will continue throughout the holiday season and into next year. DEBORAH WEINSWIG, MANAGING DIRECTOR, FUNG GLOBAL RETAIL & TECHNOLOGY [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2016 The Fung Group. All rights reserved.

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SEPTEMBER 6, 2016 Deborah Weinswig, CPA Managing Director Fung Global Retail & Technology New York: 917.655.6790 Hong Kong: 852.6119.1779 China: 86.186.1420.3016 [email protected]

Rachael Dimit Research Associate HONG KONG: 8th Floor, LiFung Tower 888 Cheung Sha Wan Road, Kowloon Hong Kong Tel: 852 2300 4406 NEW YORK: th 1359 Broadway, 9 Floor New York, NY 10018 Tel: 646 839 7017 LONDON: 242–246 Marylebone Road London, NW1 6JQ United Kingdom Tel: 44 (0)20 7616 8988 FUNGGLOBALRETAILTECH.COM

DEBORAH WEINSWIG, MANAGING DIRECTOR, FUNG GLOBAL RETAIL & TECHNOLOGY [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2016 The Fung Group. All rights reserved.

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