00:00The assortment and activation drive appreciation.
00:03Whether the benefits of 26 with events, whether it's the World Cup, the upcoming Winter Olympics,
00:08America 250, along with higher tax refunds, potentially lower rates, give consumers spending
00:15power.
00:15But yes, that lower to middle income consumer, their wage growth doesn't match what higher
00:20income consumers' wage growth is.
00:22Therefore, what are we seeing?
00:24Trade down to discounters and off-pricers, whether it's the Walmarts, the TJs, the Burlington's,
00:29or the Rosses, but you're also seeing newness take interest.
00:33And that newness, look what Gap's done, Gap partnering with Korean bands or whatever and
00:38getting interest.
00:40The music and sporting events drive interest and they're getting activation in clothing.
00:45Take a look at Victoria's Secret.
00:46The fashion show this year was updated and enhanced and modernized.
00:51Hillary's Super is put in place, whether it's new profiles of core essentials at Victoria's
00:56Secret, upgrading and updating the pink apparel.
01:00And what you've seen at Urban Outfitters, one of the only retailers with new concepts,
01:04like Nuuly, like what you have with Free People Movement.
01:08And you're seeing average unit retail selling price increases from established brands like
01:13Ralph Lauren, who now captures a broader audience, or Tapestry with Coach and how they're
01:18adding new styles into core collections.
01:20So what are retailers doing to, I call it the letter A, affordability, assortment, AI,
01:27adaptability, and advertising.
01:29That's what I'm looking for in 2020.
01:30That's a long list of things that the CEO has to oversee.
01:33Yes.
01:33And newness is at the top of the list, as you put it.
01:36How do you get that newness unless you've been in the apparel sector and unless you've
01:39been in the retail sector?
01:40Can you bring that in from some other industry?
01:42You can, but always merchants typically.
01:45You need the apparel background with it.
01:48So you need key executives who've had apparel insights or who know about manufacturing and
01:53sourcing.
01:54There's a reason why when you think of consumer, and it could be all different categories, they
01:59all focus on the same thing.
02:00How do you drive their interest?
02:02Whether it's in toys, whether it's in consumer electronics, or whether it's apparel.
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