Why Are Traditional Streetwear Brands Like Supreme Losing Their Cool?
Key Terms
- Streetwear: Clothing brands originating from street culture, emphasizing original design and personal expression.
- Commercialization: The mainstream business strategies adopted by streetwear brands to expand their market share.
- Brand Value: The cultural, ideological, and symbolic meanings a brand represents in consumers' minds.
- Collaboration: Streetwear brands collaborating with other brands or artists to launch co - branded products.
- Generation Z: The young generation born from the late 1990s to the early 2010s, highly influenced by social media.
Abstract
This episode of Vibrant Morning Coffee focuses on the decline of streetwear brands. It explores how once - popular brands such as Supreme, Off - White, and Vans have gradually lost their edge in the fierce market competition. The program analysis points out that over - commercialization has diluted the brand value of streetwear brands. Lack of innovation in product design and problems with the licensing model are the main reasons for their decline. Meanwhile, new trendy brands are rapidly rising with the help of K - pop stars and unique marketing methods, and outdoor sports style has become a new fashion trend. The program also discusses the encroachment of luxury brands on the streetwear market and the changing preferences of Generation Z consumers.
Insights
This episode delves deeply into the challenges faced by the streetwear industry, providing valuable references for brand operators. The rise and fall of streetwear brands not only reflect the rapid changes in fashion trends but also reveal the importance of a brand maintaining its uniqueness and cultural core during the commercialization process. In addition, the program reminds enterprises to pay attention to the needs of emerging consumer groups and flexibly adjust their market strategies to remain invincible in the fierce competition.
Opinions
01 "Commercialization is a double - edged sword"
In the pursuit of business success, streetwear brands are prone to losing themselves. Over - commercialization dilutes the core value of the brand, leading to the loss of the love of the original audience.
02 "Innovation is the key to brand survival"
Streetwear brands need to constantly innovate, maintaining the uniqueness and freshness of product design to attract consumers' attention and avoid being eliminated by the market.
03 "Be cautious with the licensing model"
When expanding into overseas markets, streetwear brands should carefully select licensing agents, standardize licensing behaviors, and avoid damaging the brand image due to trademark disputes and chaotic distribution channels.
In - depth Analysis
The Ebb of Streetwear: Why Have the Former Top Brands Fallen Behind?
Once - popular streetwear brands are now facing the dilemma of declining performance and reputation. What exactly has happened to former top brands like Supreme, Off - White, and Vans? Is it brand aging or market changes? This episode of Vibrant Morning Coffee delves deeply into the reasons for the decline of streetwear brands and explores the future development trends of the industry.
The Rise and Fall of Streetwear Brands
More than twenty years ago, streetwear brands entered China with their flamboyant personalities and unique aesthetics, quickly becoming the fashion enlightenment for young people. A Supreme T - shirt or an Off - White coat could make you stand out in the crowd. As a result, China has become an important stop for the international expansion of streetwear brands.
However, in recent years, these once - ambitious streetwear brands have fallen into trouble. As of the end of March this year, Supreme's revenue in the Asia - Pacific market decreased by 7% year - on - year, and its net profit dropped by more than 20%. Since last August, Off - White has successively closed several stores in the Chinese mainland. Vans' sales also dropped by more than 20% in the first quarter of fiscal year 2024.
Commercialization: A Blessing and a Curse
For streetwear brands, telling a good brand story is crucial. The popularity of Supreme is because its brand story and concept are deeply recognized by street culture enthusiasts. Founder James Jebbia positioned Supreme as an offline space centered around skateboarding, Hip - Hop, and street culture, attracting a large number of famous skateboarders and street artists.
The secret to Supreme's survival lies in being "cool," and one of the cores of this "coolness" is anti - commercialism. In the early days, Supreme adhered to limited - edition releases, with a one - item limit per person, creating a sense of scarcity that made queuing to buy a product a pilgrim - like consumption experience and cultural behavior.
However, since its collaboration with LV in 2017 and subsequent acquisition by VF Corporation, Supreme's "coolness" has become blurred. The mainstream commercialization strategy has shaken the values Supreme wants to convey, and the brand's appeal to its core customer base has declined. After the acquisition, Supreme lost more than 7 million followers on Instagram. After abandoning the purchase - limit strategy, the average premium ratio on the streetwear second - hand trading platform also dropped directly.
In addition, the changes in Supreme's brand collaborations and store openings have further diluted its brand value and vanguard attributes. In the past, Supreme mainly collaborated with artists or niche design brands, but later it started collaborating with mass - market brands like Levi's and even Oreo. Store locations have also shifted from areas with a strong street - culture atmosphere to core business districts.
A Nielsen report shows that in the streetwear field, nearly half of the market share is contributed by 10% of super - users. They pay more attention to the history, design concepts, and cultural attitudes of streetwear brands. By constantly abandoning its past, Supreme is losing these die - hard fans, which is also reflected in its performance.
Internal and External Troubles: Streetwear Brands Face Multiple Challenges
In addition to the problems brought about by commercialization, streetwear brands also face external challenges.
- Shift in consumption concepts: In an economic downturn, consumers have become more conservative. The wealthy class tends to buy more value - preserving and low - key luxury goods.
- Invasion of luxury brands: Luxury companies such as Givenchy have poached streetwear brand founders to serve as brand creative directors and launched co - branded shirts, sports shoes, and other products that originally belonged to the streetwear category, further encroaching on the market share of streetwear brands.
- Severe product homogenization: The lack of freshness and severe homogenization in streetwear product design have reduced the appeal to consumers. Vans has experienced a continuous decline in sales due to its over - reliance on classic shoe models and few design changes.
- Problems with the licensing model: The decline of the British brand Boylondon in China is related to the non - standard brand licensing. The American trendy sports brand Champion has also encountered many problems in licensing and distribution channels, leading to a decline in sales and reputation.
New Players Enter the Market: The Trend Never Sleeps
While traditional streetwear brands are falling behind, the trendy market has also welcomed some new players. Some brands have rapidly developed with the help of the popularity of K - pop stars and domestic artists. Generation Z, highly influenced by social media, is more likely to be attracted by unique marketing methods and hot products. For example, the British street brand Cortez, which is good at direct - mail marketing, and the New York streetwear brand Mischief, which has launched Astro Boy red boots. In addition, the outdoor sports style is rapidly rising and has become a dressing symbol for the younger generation. For example, Salomon not only actively collaborates with fashion boutiques but also has taken the stage of Paris Fashion Week through collaborations with streetwear brands.
The Future: Where Will Streetwear Brands Go?
Although the former top streetwear brands are gradually losing their luster and the concept of streetwear is becoming increasingly blurred, there will always be new protagonists in the fashion and trend world. Facing the fierce market competition and ever - changing consumer demands, streetwear brands need to constantly innovate and maintain brand uniqueness to remain invincible in the tide of trends.
The future of streetwear brands may lie in paying more attention to the inheritance of cultural cores, focusing more on the needs of young consumers, and adopting more flexible market strategies. Only in this way can they win a place in the fierce market competition and continue to lead the trend.