Through a close collaboration between HYPEBEAST and Strategy&, PwC’s consulting firm, intriguing, and positive news about the streetwear industry has been shared, which you don’t want to miss. This eye-opening information is divided in four main parts:
The report is split into four main articles:
- 1. Defining Streetwear details on streetwear’s origin, key cultural components and consideration of the evolution of streetwear.
- 2. Measuring Streetwear reports consumer spending habits, including how much they spend, best selling products and regional insights.
- 3. How Streetwear Communicates traces streetwear’s relationship with social media and the communication loop between consumer and brand.
- 4. How Streetwear Sells dissects streetwear’s tight-knit direct-to-consumer relationship, painting a picture of its innovative “drops” model and the burgeoning secondhand market.
The consumer survey collected a total of 40,960 respondents across the globe while the industry survey collected a total of 763 respondents from a range of industry players.
Below we can observe the ages, gender and nationalities from the participants. A strong male influence, particularly from Asia, even more specifically from South Korea.
Strategy& is a global team of practical strategists committed to help companies seize essential advantage.
HYPEBEAST is the leading online platform for men’s contemporary fashion and streetwear. Covering: fashion, footwear, arts, design, music, entertainment and lifestyle.
1. DEFINING STREETWEAR
Simply put, streetwear is fashionable casual clothes: T-shirts, hoodies and sneakers. But this surface definition of streetwear underplays a model that has single-handedly subverted the traditional fashion system by redefining its main component: exclusivity.
Streetwear emerged as an antidote to wider fashion trends, stemming from countercultures like skate, surf and hip-hop. It also opened the floodgates to a demographic that was previously “not showing” an interest in fashion: men.
The ultimate driving force behind streetwear is its spirit. Core streetwear consumers do not have limitless income to spend. What they do have is the ability to create exclusivity tied to something much more potent than money — authenticity.
Our consumer survey findings revealed that most (70%) consumer respondents like streetwear because it’s cool, while more than half (57%) consider comfortable clothes to be a key factor. Additionally, close to half (46%) place importance on exclusivity, while around a quarter value status symbol (27%) and community (24%).
2. MEASURING STREETWEAR
The current state of streetwear can be defined in four key ways:
- Original streetwear brands are characterized by an accessible price point, comfortable clothing and authenticity. At their core, these brands are driven by a very direct motivation to put a word on a T-shirt. These brands include names such as Supreme, BAPE and Stüssy, as well as newer players such as Palace. Products from these brands often resell at a high price point due to scarcity and high demand.
- Sportswear brands include leading athletic labels whose offering of athletic wear and sneakers are integral to the streetwear style. Sneakers created by brands such as adidas and Nike are cornerstones of the streetwear uniform.
- Adopted streetwear brands have incorporated streetwear trends and styles into their product offering, but their brand origin is not authentically tied to the streetwear movement. This can include luxury and mass-market brands alike.
- Luxury streetwear brands reflect the most recent emergence of brands that blur the lines between original streetwear and luxury fashion. These brands are also driven by authenticity but operate at a higher price point and diverge from the standard streetwear uniform. This includes brands such as Off-White™, AMBUSH and Vetements.
A high percentage – 56%, according to our survey – reported spending an average of $100-$300 on a single item of streetwear. Another 16% reported an average spend of $300-$500. Only 8% of consumers said they would buy items priced at $500 or more, meaning high-priced luxury items are out of reach for many of the streetwear consumers who participated in the survey.
Almost half (49%) of industry respondents said their customer’s average monthly spend was $100 to $500, which was in line with what consumers reported. These results point to the the ideal margin for targeting the streetwear audience. Many Supreme goods sit inside this sweet spot.
3. HOW STREETWEAR COMMUNICATES
And so when it comes to where streetwear followers get their style inspiration from, they want it straight from the source: musicians. A majority (65%) of consumer respondents said they regard musicians as the most credible figures in streetwear, ahead of just over half (52%) who elected industry insiders and only 32% who selected social media influencers.
When asked which factors are most important for brands, the majority (63%) of consumers indicated brand legacy, which was second only to product quality and design (81%). Another half (48%) of respondents indicated a brand’s creative director was a top factor while only 31% of respondents said social media.
4. HOW STREETWEAR SELLS MORE
When asked through which channels they’re most likely to buy streetwear products, more than half (53%) of consumer respondents indicated a physical brand store, followed by close to half (42%) who indicated a brand’s e-commerce site. About a third of respondents indicated resell sites (28%) and physical multi-brand retailers (32%) while a quarter (26%) reported multi-brand e-commerce and only 13% said social media.
The drops model has resulted in a booming secondhand market. Buyers who miss out on drops will turn to other methods of shopping, while those who successfully purchased items will often look to make a quick buck. The resale market is thus a barometer for a brand’s success.
Hope you enjoyed the read, and keep coming back here to see the latest posts about cool streetwear news.
From us to you … the Service, Styles and Smiles Crew at Lula 101