In the fashion industry, innovation sells, but it is not the sort of innovation that most people might expect, highlightsn Gillian Diesen, Senior Client Portfolio Manager at Pictet Asset Management.
Innovation is often understood as technical innovation, i.e., new materials and new applications of existing technologies, and it is often expected in sporting goods. However, Pictet Asset Management Thematic Advisory Board members argue that the real innovation is in design and, particularly, marketing and distribution.
Recent waves in technological innovation have focused on the environmental performance of materials and components, but this has not been a decisive success factor in sporting goods, with ESG aspects showing limited consumer appeal and impact on economic performance.
Success is driven more by anticipating fashion trends and leveraging creativity. Striking the right balance between function and style, and employing the right go-to-market strategy to engage consumers, are important success factors. And finally, excellence in operations is critical.
If you would like to speak with Gillian about what benefits innovation can bring to premium brands, do please let me know.
