What Should Be the Innovative Strategies Used by a Start-Up Sneaker Brand? Thesis

Introduction

Problem

The pandemic has disrupted consumer behaviour in key global markets of the world, especially among young adults and Generation Z members. The paradigm shift that took place during the pandemic in relation to consumer behaviour is especially relevant for the fashion industry. As Amed et al. (2019) stated, modern consumers — especially members of Gen-Z — have very different needs for fashion products.

Thus, current members of Gen-Z focus on sustainability and conscious consumption and actively develop the culture of collaborative consumption and secondary market. These aspects largely contribute to the transformations companies need to make to remain successful, given the emerged patterns of consumer behaviour that have formed during the pandemic.

Modern researchers pay more and more attention to the development of marketing strategies in the streetwear fashion market. The increased attention of modern consumers to streetwear culture, in particular sneakers as an attribute of modern culture, requires appropriate strategies from companies. Thus, this study focuses on the consideration of important aspects of consumer behaviour within the fashion industry with a focus on Generation Z. Thus, the problem to be considered in the study is the description of appropriate strategies for marketing crosswords to Gen-Z consumers in a shift in consumer behaviour caused by the pandemic.

The problem will be addressed from the perspective of a streetwear fashion start-up aiming to begin operations in 2023 to produce and sell to the affordable luxury segment in the NA market. For an organisation seeking to begin operations in 2023, success will be based on more than an understanding of the current market trends. It should be a predictive model that capitalises on the past and current trends to predict future ones. For this project, the focus will be on the period between 2023 and 2027 because it will be vital for the formation of the foundation of the organisation.

Thus, within the chosen timeframe, the impact of the pandemic on the streetwear market, shaped by Gen-Z consumers, is projected. For many people, streetwear fashions are about more than the shoes and clothes sold but primarily about the underpinning culture and other social influences (Shukurova, 2018). Thus, a market is likely to be impacted by changes in a social environment, especially this that determines changes in aspects such as lifestyle. The problem in my company is the paradigm shift in global consumer behaviour during the pandemic within Gen-Z.

The MDS’s profile is an international sneaker streetwear fashion start-up that is to start in 2023 in the affordable luxury segment in the NA market — the US and Canada — 2023-2027. The year 2023-27 is chosen as it would be the key period in which the foundation of the start-up would be laid. Passion for design, art, and Sneakers within the Streetwear fashion industry is the personal interest behind choosing the topic. Degrees and experience in product design and advertising in international markets of North America, Asia, and the EU primarily in fashion and accessories is another supporting factor for my topic choice.

Objective / Research Questions

The main research objective is to identify some of the most innovative strategies that would help a start-up Streetwear Sneaker fashion company to be successful in the NA market. The study would be conducted in relation to how it would impact a new streetwear company entering the NA market. Under the umbrella of strategies, ‘e-commerce’ is the one that is being focused in this study. The data collected will enhance the comprehension of how much the factors that determine Gen Z consumers’ decisions have changed because of the Covid-19 pandemic as far as the sneakers market in North America is concerned.

The fashion industry defines streetwear as fashionable, casual clothing worn by followers of popular culture. According to PWC data, the global streetwear market was estimated at 185 billion dollars in 2019 (Strategy&, 2019). Notably, the COVID-19 pandemic has had a negative impact on this market, significantly reducing its size due to physical and social constraints on citizens; for this reason, the size of the streetwear market is projected to shrink from 2021 (MRW, 2022).

In particular, the modern streetwear market is developing and expanding the most active of all fashion segments, and this trend is expected to continue in the coming years. According to research conducted by Strategy& in collaboration with leading fashion media, Hypebeast footwear is the key driver of purchases in the industry (Hypebeast & Strategy&, 2019). The NA market is also the most developed in this respect, with its community focusing more on streetwear fashion than less developed markets such as Asia. A feature of this segment is also predominantly young consumers under 25 years old (Hypebeast & Strategy&, 2019). Currently, an increasing number of consumers in streetwear fashion belong to Gen-Z, born from 1997 to 2012.

Nevertheless, the company does not want to target kids who are part of Gen-Z, but only teenagers aged 15 and up, when they are beginning to make purchasing decisions and can be influenced by effective marketing strategies. In reality, the age range of this generation is broader, reaching time boundaries of 10 to 24 years old, but the focus should be set strictly on solvent teens and young adults. This group prefers to interact with brands through both online and offline channels: approximately half of consumers purchase sneakers in physical stores, while the other half in online stores (Strategy&, 2019).

The main source of influence on consumer behaviour is social media, as well as the opinion of other young people in the immediate environment (Strategy&, 2019). It is also noteworthy that the majority of streetwear consumers do not have a high income but are able and willing to spend money on their favourite products. This could be the reason why original streetwear brands are characterised by an accessible price point. New York, Toronto and Miami are three of the primary metropolitan cities characterised by Sneaker culture in the NA market, according to one of the most popular Global Sneaker journals, Complex (Engvall & Bengtson, 2013).

These aspects combined explain the focus of the present study. Therefore, the start-up company chooses to study the NA streetwear fashion market of sneakers in particular with the customer segment of age 15 and above within Gen-Z in the cities of New York, Miami, and Toronto.

The topic of the study paper is models of successful strategies used by successful start-ups during the pandemic within the existing streetwear fashion brands.

The scientific study of this topic would potentially derive forecasts of ‘the new normal’ consumer behaviour in the Streetwear fashion within Sneaker consumers, which is most likely here to stay even after the pandemic, which is of utmost relevance for any start-up Streetwear lifestyle brand attempting to tap into the most competitive market for Streetwear fashion in the world, dominated by multi-billion dollar giants like Nike, Puma, Adidas and others, with their products to the Gen-Z, defining their new ‘wants’ in the products they would like to consume.

Thus, the problem in my company is the paradigm shift in global consumer behaviour during the pandemic within Gen-Z.

The main research question is to identify the most demanding innovative strategies that would make a start-up sneaker streetwear fashion company profitable in the NA market. The following research questions will be addressed within the study:

1. What are some of the most demanding consumer behaviour changes of Gen-Z since the pandemic in 2020 for NY, Miami, and Toronto markets?
2. What are the strategies that the company would like to adopt due to the changed behaviour of consumers within the pandemic in the chosen Markets in NA — New York, Miami, and Toronto?
3. How best can ‘e-commerce’ be leveraged to maximise the profits of the company?

The methodology of this study was based on the use of an extensive literature review to judge common industry market trends from both an academic and a public perspective. Both deductive and inductive research would be used to derive new theories. Many cases and scenarios will have to be explored for the company to take a calculated risk on the investment. The research would be more based on quantitative empiricism than qualitative since the company is looking at a big market and the key problem is ‘identifying’ the upcoming consumer trends of the masses in the NA Market of New York, Toronto, and Miami.

Surveys and interviews shall also be conducted from the existing professional networks within the industry. Industry specialists like Designers, Marketing specialists in ad agencies, and Sneaker enthusiasts, e-commerce experts, start-up professionals, other individuals within Gen-Z, would be some of the focus groups for the interview and surveys.

Structure of the Work

In addition to the introduction part introducing the problem and objective of the study, this study paper has various parts that are structured to enhance the achievement of the intended purpose. The chapters that come after the introduction include:

Theoretical framework: this part plays a vital role in connecting the research to existing knowledge in the form of the theoretical background of the phenomena under study. Guided by relevant theory, this chapter introduces and describes the concepts and models used in understanding and contextualising the collection data.

Methodology: this chapter is important because it gives an in-depth description of the methods used in this study. The chapter is based on the need to justify the chosen methods, focusing on specifics such as research design, data collection, and analysis.

Analysis and transfer: this chapter is based on the understanding that the raw data from this study was not relevant in its collected form. Thus, it needed to be analysed most appropriately with the study’s objective in mind. The analysis results presented in this chapter are the partial results that are more relatable than the raw data collected during the study.

Discussion: This chapter vitally impacts the relevance of this study because it engages the analysed data to enable the audience to contextualise it and relate it to the intended application settings. Thus, it is based on identifying the primary derivatives from the data collected and recommending ways to be used to impact strategic decision-making in real-world contexts. This chapter also presents the theoretical embeddings of the collected data and critically appraises them for practical applicability.

Conclusion: This chapter presents a summarised deduction from the data collected, especially focusing on how much the research questions were answered. It is based on such summaries that the recommendations are made.

Theoretical Framework

Consumer Behaviour Shift during the Pandemic

In many industries, the COVID-19 epidemic has had a profound impact on the evolution of customer behaviour. Shifts have affected various areas of business activities, which currently characterise consumer behaviour with general trends. Lingqvist and Vainberg (2021) report that in the post-pandemic period, “behavioural trends that first appeared during the lockdown are combining with some pre-existing trends.” First of all, the spending recovery continues more actively, but it is uneven in various industries since, at the moment, consumer demands for certain categories of goods are also transforming.

There is also a boom in online shopping and e-commerce, which identifies a shift in terms of product distribution channels and communication with consumers. Additionally, extended lockdowns have shifted the focus of consumers to home-use products and services from out-of-home use ones.

Lockdowns during the pandemic have identified both a change in individual and collective consumer behaviour. First and foremost, consumers focus more on meeting basic needs, including food, shelter, and clothing (Mehta et al., 2020). These factors are explained both by the reduction in purchasing power amid the economic downturn and the increased uncertainty that arose during the pandemic. A particularly significant shift that occurred during the pandemic in relation to consumer behaviour is the change in brand loyalty patterns.

The rise of online retail and the decline in purchasing power has increased the need for the choice of brands and products for consumers. In particular, today’s buyers are more likely to brand-switch in search of the higher product value (Charm et al., 2020; Lingqvist & Vainberg, 2021; Munsch, 2018). This is especially true for the younger generation or Gen-Z consumers who have higher expectations, emphasising the importance of organic production, value and quality (Lingqvist & Vainberg, 2021; Munsch, 2018). Thus, they represent a special group of buyers with distinct characteristics of demand and consumption

Consumer Behaviour in Fashion Industry

The pandemic has also brought a number of changes directly to the fashion and streetwear industry. The modern fashion industry is primarily characterised by increased casualisation, which is positively associated with consumer interest in such categories of goods as casual footwear (Balchandani & Berg, 2021). In other words, the pandemic has boosted demand for more informal fashion and a move away from the more formal dressing. Moreover, Balchandani and Berg (2021) note that only about 30% of fashion brands have successfully weathered the pandemic crisis due to high internationalisation and focus on sustainability. This aspect identifies an additional consumer need for more sustainable production, which is especially significant for Gen-Z representatives.

Sneaker culture, in turn, is an integral part of the streetwear and fashion industry in the modern world. Currently, this market is the generator of the most interest and hype, especially 1 among younger consumers (Anyanwu, 2019; Hancock, 2019). For many, sneakers have become a unique object of the fashion industry and an “irresistible and magical totem of contemporary consumer culture” (Denny, 2020, p. 10). The sneaker market has grown 46% since 2017 and is expected to expand to $88 billion between 2019 and 2024 (PR Newswire, 2019).

In recent years, the production of sneakers has become more expensive, and manufacturers are fuelling interest in this product with various tools, which contribute to the expansion of the market and demand within it. Morency (2019) notes that in addition, the global resale market of sneakers is also experiencing exponential growth, which should be underlined. It is noteworthy that sneakers are often resold at a higher price than the original, which also contributes to the growth of this market segment. Given the increased interest of Gen-Z representatives in conscious and collaborative consumption, this trend is likely to continue to develop.

Thus, the patterns of consumer behaviour have significantly transformed during the pandemic. In particular, consumers are focusing more on conscious consumption as well as more basic needs. For the fashion industry, these shifts are associated with more casualisation of clothing trends and a greater shift away from formal clothing styles. Within the sneaker market, this factor is also relevant, as it contributes to greater development in the already popular sneaker and streetwear culture. Gen-Z brings its own characteristics to the patterns of purchasing behaviour that companies need to consider when creating business models. In particular, younger consumers show an increased interest in organic products, conscious consumption, and sustainability.

Additionally, they are actively involved in the development and growth of secondary products and the collaborative consumption market. With regard to the sneaker market, this trend is of particular importance since these products are often resold at higher prices. These shifts may be especially significant in major cities such as New York, Miami and Toronto, where young people are more in need of self-expression through style due to increased social engagement and access to fashion products.

Generation Z

For today’s young consumers, fast fashion is a source of environmental waste and negative social impact. Vladimirova et al. (2022) note that Gen-Z tends to be more conscious of consumerism and avoids excessive clothing shopping. This factor is related to the prolonged closure of physical retail shops and the reduced need for formal clothing for many, which is gradually normalising in society. Thus, while during the pandemic there was a decline in demand for all fashion products, including eco-friendly ones, there is a growing trend towards more conscious consumption practices among younger shoppers.

Slaton & Pookulangara (2021) note that today’s Gen-Z consumers are more socially active and more informed about world events. These aspects are made possible by the active development of social networks, which young people use extensively for communication and self-expression, unlike members of other, older generations. Thus, Gen-Z is more in need of following fashion trends and spreading knowledge about sustainability (2019 Resale Report, 2019).

The streetwear of consumers from this generation is characterised by simultaneous trends towards fashion relaxation and the use of more comfortable, informal tones in clothing, combined with the increasing popularity of luxury goods (Wong, 2019). Thus, Gen-Z is actively interested in high-end brands and tends to buy items from fashion houses that collaborate with mass-market brands. All these forms mixed market trends for the studied audience, but the main patterns of the industry are possible to identify: the most relevant trends in the streetwear industry for Gen-Z remain sustainable consumption, luxury, and the ability to stand out from peers in a qualitative way.

Company Presentation

The company profile is a start-up company headquartered in Toronto since 2018. The name of the start-up company is Madass Design Studio, which shall be mentioned henceforth as MDS. The company currently has 3 full-time employees with backgrounds in multidisciplinary design, Business administration, and Operations. It outsources other areas like sales channels, legals, and accounts as of now.

The company has been one which was serving as a consultancy, to big brands on product design, and art direction and now intends to tap into the market with its own brand and knowledge. The significance of this study is meant to help the MDS to position its brand with the best relevant strategies to succeed in making an MVP by 2023 in the NA market on which the investors can bank.

Methodology

Justification of the Selected Method

The methodological basis of this study is built on a quantitative empirical design to process and use numerical and non-numerical data in relation to the market of young consumers of sneakers streetwear. The study of trends in this market is a sociological analysis; hence, the research tools were chosen based on the ultimate interests of the work. In order to establish a reliable information base, it was necessary to conduct a survey aimed at obtaining information from the population. Thus, an online survey among the target audience of interest, disseminated through social media, was chosen as the most effective data collection model. The motivation for choosing a particular approach was due to the increasing accessibility of the Internet and the global use of the virtual network to share opinions and shape the information space.

Young consumers actively use the Internet, so introducing the survey questionnaire into their familiar environment using the tools available to them was seen as a feasible strategy, potentially leading to the expected results. The consumers of interest were those from the affluent Generation Z interested in the sneaker streetwear industry. It is worth clarifying that the actual age range of this generation is broader, but as the research concerned a target audience capable of buying sneakers and influencing market trends, the scope was deliberately narrowed.

The quantitative approach to the study design involved raw numerical data, in particular the use of elements of descriptive statistics — mean, frequency distribution and percentage distribution — to create judgements about the overall trends of the sample. Inferential statistics, parametric tests (ANOVA) and post hoc analysis were used for more in-depth statistical analysis to assess the significance of the hypotheses formulated. The data were visualised using graphs, histograms and tables to simplify the handling of numerical information.

Moreover, the paper also used a qualitative paradigm to conduct the research. In particular, primary data was collected not only through an online survey but also through interviews. Unlike the online survey, the interview questions were not assessed using a Likert scale and therefore, their analysis required special skills (Anjaria, 2022). Textual analysis using a narrative approach was used to explore the patterns popular among the responses. Thus, the work involved a combination of quantitative and qualitative research methods.

Research Design

The present work is based on a mixed-methods paradigm that takes advantage of two research approaches at once. Quantitative methods were used to examine the results of the online survey using inferential statistics. The design of the quantitative study was quasi-experimental in that it did not involve random assignment; instead, the questionnaire was purposely distributed to a particular community of respondents. In contrast, phenomenological qualitative methods determined the possibilities of analysing textual information obtained from respondents. Moreover, an extensive literature search was conducted for the study as part of the examination of pre-existing evidence. Sources used included academic papers, including peer-reviewed journals, textbooks, reports and books, as well as public materials such as websites and social media profiles (LinkedIn).

Data Collection

Data for the literature review was collected using digital platforms, including ScienceDirect, ResearchGate, and Google Scholar, as well as on the Google search engine. Inclusion criteria for papers were used, namely writing in English, date of publication no earlier than 2012, and author and publication authority. Authority was verified by examining additional papers that had been published by that author or authors. To maintain standards of high academic integrity, all papers were carefully cited according to the APA7 methodology.

To conduct the quantitative research, an online survey was created on the Google Forms platform. The survey was a short questionnaire consisting of fourteen multiple choice or dichotomous and ordinal questions. The link to the survey was distributed via social media such as Facebook and LinkedIn to thematic communities of users interested in sneakers streetwear culture. Specific themed communities included Sneaker Professional, Core77, New York Sneaker Exchange, Toronto Sneaker Market (Sneaker platforms), Miami Business Advertising and Marketing, International Business and Network Marketing, and Social Media Marketing (Marketing), and E-commerce Marketplace, eCommerce by Enablers, and Ecommerce Canada (E-commerce) and other platforms.

Participation in the survey was voluntary, with respondents informed of the aims of the project and giving informed consent to participate. Responses were accepted during the first two weeks of June 2022. At the end of this period, response intake was closed, and the data was exported to an MS Excel file and subjected to an initial filtering procedure. This included visual examination of the data and removal of unreadable information. The analysis involved the use of descriptive statistical tools in combination with inferential methods.

A semi-structured interview approach was used for qualitative research. The interview questions were prepared independently, depending on the focus of the experts: these were designers, marketing and e-commerce specialists. Respondents for the interviews were selected among the real-life connections of the author of this study on LinkedIn. After selecting a time and date that was convenient for them, the interviews were conducted remotely at Zoom. With the respondents’ consent, the audio during the conversation was recorded on a dictation machine and then self-transcribed into an MS Word text file for further analysis. The analysis involved reviewing all interviews, highlighting common themes and comparing their responses.

Results of the Data Collection

Figure 1 shows a snapshot of an MS Excel file that has been exported to SPSS v. 25 for statistical analysis. After removing invalid rows, the data were recorded into a numerical format to optimise use during analysis. The coding of the information was implemented according to the format presented in Table 1. At the same time, Figure 2 shows the results of collecting qualitative data from respondents and converting the audio into a text file. Detailed transcripts are shown in the Appendix.

Tab. 1: Coding scheme for online survey responses

Analysis and transfer

Data Preparation

A questionnaire was developed and distributed through social networks and professional forums to conduct a large-scale online survey among members of the population. The size of the general population was estimated by counting the total number of people in the US and Canada employed in three areas, which included e-commerce, marketing, and design: it was estimated that the general population was over 51 million people (Data USA, 2022a; Data USA, 2022b; Data USA, 2022c; IBIS, 2021; Morisson, 2021; IDA, 2021).

However, the selection of respondents for the sample included residents of only three cities, namely New York, Toronto, and Miami, as key areas for the development of the sneaker street culture market (Engvall & Bengtson, 2013). The total number of potential respondents, calculated using the number of subscribers to the social media communities where the questionnaires were distributed, was 25,000, with a total of 230 (0.92%) accepted.

The primary processing procedure of the collected data included coding to optimise statistical analysis. In particular, the verbal names were replaced by numerical designations according to the format specified in the methodology section (Table 1). In addition, the processing procedure included deleting lines where entries were unreadable or did not follow an acceptable format; in such a case, the response could not be unambiguous. Thus, after receiving 221 questionnaires at the completion time, 4.07% (n = 9) of the questionnaires were deleted after the initial filtering procedure. The final number of lines in the data set was 212.

Quantitative Research: Online Survey

To conduct an extensive online survey among members of the population of interest, a questionnaire was developed and distributed through social media and professional forums. The primary processing procedure for the collected data included coding to optimise statistical analysis. More specifically, the verbal names were replaced by numerical designations, according to the format specified in the Methodology section (Table 1).

In addition, the processing procedure included deleting lines where the entries were unreadable or did not follow an acceptable format; in such a case, the answer could not be unambiguous. Thus, after receiving 221 questionnaires at the time of completion, 4.07% (n = 9) of the questionnaires were deleted following the initial filtering procedure. The final number of lines in the data set was 212.

Descriptive analysis was initially used to identify critical trends prevalent in the sample. In terms of the gender distribution of respondents, it was found that 23.6% (n = 50) of participants identified themselves as female, with 71.7% (n = 152) as male and 4.7% (n = 10) as other genders. The results hinted at a significant preponderance of males in the sample collected, which seemed representative given the real-world statistics for sneaker culture consumers in the US (Jake, 2020). In other words, in terms of gender distribution, the sample was highly representative, and there was a statistically significant difference between the groups, as shown by Chi-square goodness of fit: χ²(2) = 151.74, p <.005.

In terms of age distribution, it was found that the majority of the sample (59.4%, n = 126) belonged to the younger age group, that is, 18 to 24 years old. However, as shown in Figure 3, the sample also included 31.1% (n = 66) of people aged 25 to 34 and 9.4% (n = 20) of respondents over the age of 35. The distribution, in this case, was not uniform, as the corresponding Chi-square was significant (p =.000).

Expanding on these results, it can be concluded that the primary audience of the online survey was young people. In the context of a scientific study, this seems to be a good signal, as the sneaker streetwear brand focuses mainly on young consumers from Generation Z. On the other hand, the presence of older and more experienced respondents in the sample was also a good sign, as it reduced some age bias and brought diversity to the responses.

To explore the potential impact of education on consumer choice, respondents’ academic experience was also analysed. The sample consisted of four groups according to work experience: high school students, college and university students, and people who indicated they had no education. Notably, the survey group had the highest proportion (37.7%, n = 80) of respondents with high school education, and people without education were a minority (5.7%, n = 12), as shown in Figure 5.

Again, the chi-square test showed statistically significant differences between groups, χ²(3) = 52.76, p <.005, from which it can be concluded that all levels of academic experience were unequally represented in the sample.

The last two questions of the demographic block of the questionnaire were designed to identify the respondent’s region of residence — USA or Canada — and professional community affiliation. Figure 6 shows the results of using descriptive statistics for the geographic sampling criterion. As can be seen, 53.8% (n = 114) of respondents lived in New York, while a minority (19.3%, n = 41) lived in Miami. Chi-square goodness of fit showed statistically significant differences on the geographical criterion: χ²(2) = 41.67, p <.005 — from which it can be concluded that, indeed, the majority of respondents were from New York. In terms of professional distribution, it was found that a large proportion of the sample (34.9%, n = 74) did not identify themselves as either shoe designers, marketing professionals or e-commerce professionals.

However, the questionnaire distribution within the thematic community only suggests that the ‘Others’ category may include fashion industry influencers and interested blog readers involved in design and fashion business development. As with the geographical distribution, the professional criterion of the sample was not homogeneous, as the goodness-of-fit test (p =.006) showed a statistically significant presence of different subgroups in the sample.

Thus, descriptive statistics showed that the generated sample of 212 respondents was unequally represented across all five demographic characteristics and, therefore, diverse and inclusive. Consequently, it can be assumed that this sample was representative and can be used for parametric analysis using statistical tests. The findings based on this sample can be extrapolated to the general population, that is, all people interested in fashion, design, e-commerce and marketing, at least in the USA and Canada.

Descriptive statistics were also used to identify patterns found in the frequency distribution of responses to the main block of questions in the questionnaire. For the five questions assessed on a five-point scale, the results are presented in Table 2. It is worth clarifying that all these questions were assessed on an ordinal scale, that is, a Likert scale for which the distance between points is known (Anjaria, 2022). The criterion “5” ranked the value depending on the question but always meant the highest intensity, as if “most often”, “most strongly”, or “strongly agree”.

Tab. 2: Percentage distribution of respondents’ answers to the main block of questions

Table 3 shows that the highest proportion of respondents (26.9%, n = 57) indicated an average interest in fashion trends, while 22.2% (n = 47) stated that they follow fashion trends. This information may indicate that the sample as a whole is aware of fashion trends, and the presence of respondents in thematic communities (where the survey was conducted) confirms this, but they are not quite ready to follow the fashion trends of the time. Meanwhile, more than half of the participants (56.6%, n = 118) reported that they shop for clothes and sneakers about once or twice a month, not more often. Interestingly, 17.9% (n = 38) of respondents indicated that they buy the relevant goods on average five times a month.

Respondents also rated the importance to them of the attractiveness of the online shop’s website design. Table 2 shows that around one in two survey participants (52.4%, n = 111) considered design to be extremely important to them; conversely, the design was unimportant to 28.8% (n = 61) of respondents, of whom around one in eight identified design as an utterly unimportant criterion. The survey also included an assessment of the importance of discounts offered by the brand to the consumer. Discounts are often an incentive to make purchases and increase customer loyalty (Khai-rawati, 2020). The data shows that discounts were ‘significant’ for 24.5% (n = 52) of participants and ‘important’ for even more respondents. Meanwhile, 8% (n = 17) of people responded that brand discounts were not important at all to them. These results underscore the importance of developing an attractive design for an e-commerce brand and investing in developing a loyalty-enhancing discount system.

The final question in this five-point block was aimed at determining respondents’ willingness to purchase a new branded product if its design was unique through customisation. This could include the sale of sneakers customised at the customer’s request. In this case, the results showed that for the majority of the sample (64.2%, n = 136), design personalisation was a significant criterion; only around one in five respondents indicated a reluctance to purchase such a product.

Additional metrics from the survey included consumer preferences for shop format, online shop platform and the importance of specific attributes of the launch brand. More specifically, 59.0% (n = 125) of participants said they preferred to shop in physical shops (offline) rather than online. In addition, around a third of the sample (62.8%, n = 133) indicated that they preferred a mobile app for the website if the brand had one. Combined with previous results, this may indicate the low popularity of mobile apps for e-commerce brands.

Respondents were also asked to choose which of the start-up brand attributes they considered most important: (i) brand authenticity, (ii) targeted advertising based on community interests (environmental, diversity, social and inclusion), (iii) location, (iv) exclusive design or (v) convenience. For most respondents (37.7%, n = 80), confidence in brand authenticity was the most crucial criterion. Brand location (7.1%, n = 15) and promoting strategies (10.4%, n = 22) were the least appealing to people, as shown in Figure 7.

Finally, the shop format was also an important characteristic: online, offline or combined strategies. Figure 8 shows that for the consumer, the most acceptable format would only be the online shop in the case of a start-up brand. The results obtained have strategic implications for a brand interested in successfully entering the industry market.

A significant milestone for the analysis of the survey results was the use of inferential analysis to identify potential causal relationships in trends in consumer behaviour. The use of parametric tests allowed the results to be extrapolated to the general population.

A one-way ANOVA test was used to test for differences between different demographic groups in the choice of specific responses. The groups were divided into age (three levels), gender (three levels), occupation (four levels), academic (four levels), and region of residence (three levels), so the ANOVA test could be used to test hypotheses (Laerd Statistics, 2021). Table 3 below shows the results of the tests conducted, with asterisks indicating statistically significant results for which p was less than.05.

Tab. 3: Results of one-way ANOVA with F-criterion

As can be seen from Table 3, only four tests showed statistical significance. In more detail, this was found in the choice of the importance of regular discounts from the brand, the perceived importance of website design, and the importance of having a mobile app for the e-commerce brand. A post hoc test conducted to find locations of difference found specific differences. In particular, footwear designers and marketing professionals tended to give differential responses regarding the importance of the website to them.

Differences were also found between marketing professionals and respondents belonging to the ‘Others’ category. Footwear designers and “Others” were more likely to indicate that website design is essential to them, while marketing professionals were more likely to choose a neutral option. Changes were also observed in the desire to receive discounts from the brand: footwear designers, as well as “Others”, were more likely to want to receive discounts, in contrast to marketing specialists.

In terms of having an official mobile app for the brand, it was found that residents from Miami did not need to have such an app, as opposed to Toronto. Respondents in the Other category were also more likely to choose not to have a mobile app than those in the Marketing Specialists category. Finally, exciting statistics were found for age differences in the choice of a critical feature of the launching sneaker streetwear brand; the information is visualised in Figure 10. As can be seen, younger audiences were more likely to prefer confidence in brand authenticity, whereas comfortable designs were a priority for the adult audience (aged 35+).

Qualitative Research: Interview Findings

The second method of obtaining primary data for the purposes of this study was to interview seven expert figures in e-commerce, marketing, and design. The respondents’ profiles were found on LinkedIn, where initial communication with them was conducted, followed by a scheduled call to Zoom for a semi-structured interview. A total of seven interviews were conducted for a total duration of over 240 minutes. Table 4 contains information about each specific respondent for the qualitative research, indicates their area of professional activity, and includes a link to their LinkedIn profile.

Tab. 4: Description of the sample of respondents for the semi-structured interviews

With the respondents’ permission, each interview was recorded for further processing. The data was transcribed in their own handwriting, retaining the style of the responses (see Annexes). The analysis was based on a narrative approach, in which the basic framework for the development of the seven interviews was inferred from the list of questions (Mihas, 2019). Accordingly, the significance of this qualitative analysis was to test the assumptions and form a conceptual cloud. First of all, it should be noted that all respondents for this interview were passionate about fashion and streetwear culture, especially sneakers.

Thus, when asked to quantify their love of fashion and sneakers on a ten-point scale, they all gave answers above five; with an average score of 8 across the seven respondents, indicating a high degree of engagement with the issue studied in this paper.

Automatic textual analysis was conducted for all respondents’ answers in order to construct a tag cloud. The frequency of occurrence of each term that is represented in the cloud in Figure 11 is a minimum of thirty — in other words, respondents said the word at least thirty times during all interviews. Systemic terms that do not provide valuable response information were not included in the analysis. As can be seen from Figure 11, some of the most frequently used words were ‘fashion’, ‘sneakers’, ‘fashion’, ‘design’, ‘lifestyle’, ‘online’, and ‘pandemic’ — these terms were the foundation for developing conversation with respondents.

Notably, many of them gave similar answers to the questions. For example, when asked to assess what fashion means to them, most participants associated this term with associations such as “self-expression”, “trend”, and “comfort”. Comfort, in fact, often appeared in one form or another in respondents’ answers. More specifically, comfort was repeatedly cited as a key trend to which streetwear came during and after the pandemic. One respondent from the e-commerce industry stated that:

«I think because people have started spending more time at home and less time on some social activities… Well for obvious reasons, we’ve all been shut down at home, I think because of that people… have started spending less time on what they’re wearing»

From this quote, it is clear that comfort has become a forced trend that consumers have had to deal with. Respondents closely associated with comfort the notion of relaxation, including relaxation in clothing:

«…people’s style has become more relaxed and simple because of the pandemic… Relaxed hoodies, wide sweatpants, hats… The kind of style that’s just comfortable…»

Notably, comfort was one of the most important factors cited by experts as an attribute when choosing new clothes or sneakers to buy. Other attributes cited were a colour, shape, technological production features (availability of laces, high soles), and appropriateness to the mood of the purchase. It was for comfort that most respondents rated their favourite sneaker brand. Specifically, among the favourite sneaker brands, experts were inclined to name:

• Adidas (tendency to experiment, variety of choice, affordability, modernity, regular collaborations)
• Nike Air Max (comfort, excellent design).
• Air Jordan (brand popularity, high-top designs).
• Reebok Classic (comfort, excellent design, often chosen by female clients)

Experts’ preferences can also be extrapolated to broad consumer expectations. For example, respondents reported that among the most important consumer expectations for sneakers are uniqueness and exclusivity of design, compliance with environmental awareness and brand sustainability, and the creativity with which the company promotes the product. It is reported that creativity was actively encouraged during the pandemic when large numbers of people and companies were strapped for resources and time. One designer respondent stated that it was the impact of the pandemic that led shops to promote previously atypical product sets:

«…For example, elf kits, or anime kits. It used to be like it would be atypical to find that on some brand’s website, but now it seems like a normal occurrence…»

The introduction of foreign, particularly Japanese, culture was also mentioned by an expert respondent in the field of marketing. In particular, it was reported that:

«…I’ve started to notice more often that people have started to wear more anime and or cartoon related clothes. Yes, and a lot more of those clothes in the youth clothing category have started to appear in the shops…»

Confirmations from two experts from different industries may indicate a paradigm shift in youth sneaker streetwear culture towards foreign traditions associated with broad pop culture. Indeed, respondents repeatedly noted that pop culture is the most important predictor of fashion and, in fact, carries out its shaping or modification. Among other influences of pop culture, interviewees also cited the influence of computer graphics and neo-futurism on clothing and footwear styles, which could be expressed in bright, multi-coloured prints, the frequent use of leather and ‘cyberpunk’, as one respondent put it.

One effect of the pandemic, experts said, was also the flowering of the e-commerce industry. Participants from the industry concerned pointed out that online retailers had taken one of the most significant steps in their evolution, embraced technological advances such as an alternative universe, and seriously increased their online presence on social media. Experts not directly associated with e-commerce have pointed to the emergence of the D2C phenomenon as a replacement for the classic B2B and B2C — in which case the role of the intermediary disappears, as the presence of intermediary channels was not relevant or safe in a pandemic. It is likely for this reason that many respondents reported a significant decline in the role of physical shops in the post-pandemic period. That said, investing in e-commerce for MDS has high brand value, according to participants.

Interviewees also offered some advice on what strategies a start-up sneaker streetwear brand should use. The following key tactics were highlighted, in order of decreasing number of mentions:

• Investing in advertising and lean-digital marketing
• Investing in a pro-active omni channel online presence to identify customer base
• Creating and maintaining an environmentally conscious company image
• Creating a customer-focused community to retain a loyal customer base
• Good use of budget
• Including A/B testing to identify consumer market segments
• Focusing on researching and developing a core brand USP until the product becomes a brand image
• Outsourcing operational, complex e-commerce units to ensure business flexibility
• Creating a lean but multi-disciplinary agile team
• Reducing operating costs while providing a superior customer experience
• Establishing operational chains.

Specific tactics for investing seed capital in business development were also suggested. The main channels for spending the budget were concept development, advertising, market research, design costs and operating procedures of the business. However, among the main threats related to e-commerce or market conditions, experts were inclined to name the following options, in order of decreasing number of mentions:

• Intense competition, particularly on Amazon
• Customer confidence in a brand
• Underinvestment of funds and opportunities
• Disruption to the economic stability of the market.
• Online threats, including hacking and online fraud

As already mentioned, respondents reported a sharp decline in the role of physical shops during and after the pandemic. However, not all of them were inclined to believe that physical shops would disappear entirely in the near future. Specifically, the following responses were given to this question:

«…the pandemic has discouraged some consumers from going to public places, plus in a particular city or neighbourhood the selection in physical shops is much duller than the endless variety on online platforms…»

«…there’s less people out there, ha-ha. I think they’ve realised that they’re losing out to the online shops, because often the physical shops don’t have the stuff that’s on the website. Because they just don’t deliver them, or they don’t have their…»

«…the role of physical shops has diminished a lot… physical shops are losing ground to the online market. But there’s still a lot of people who prefer to try on clothes in offline shops, so it’s too early to say that they’re useless and there’s a global shift to electronic format…»

As a result, it is easy to postulate that the role of physical shops in the post-pandemic period has indeed shifted but is not completely inhibited. In particular, it has been seen that the role of offline retailers is shifting towards creating a gateway to introduce the consumer to the brand — such branches are not focused on the purchase that the offline consumer makes but rather invest in building trust with the customer, introducing them to the brand products and values and drawing them into the community. Finally, respondents were asked to name several successful NA start-ups they know of that have performed well in the sneaker streetwear industry. Notably, participants’ responses were not repetitive, with some failing to name specific companies and others, by contrast, naming several brands at once. Thus, among the start-ups mentioned and the strategies that led to success were the following:

• ALLbirds (USA, focus on business sustainability and awareness)
• SoleSavy (Canada, nice website design, D2C, effective communication with the customer, transparency)
• Sneaker Town (USA, bright designs, mysterious boxes, collaboration with brands)
• Pseudo (USA, environmental sustainability, quality distinction from brands, culture of transparency, sneaker technology including anti-microbial insoles and breathable materials)
• Atoms (USA, minimalism in design, high customer focus, minimalist design)
• KOIO (USA, minimalist design, focus on high quality materials, including leather sneakers, Italian production under the American brand).

Discussion

Derivatives

This research paper has explored potential strategies and practices that can be used by an emerging brand in an attempt to enter the NA market commercially successfully. Specifically, Toronto, New York, and Miami were selected as specific locations to locate brand affiliates as centres of focus for sneaker streetwear culture in the NA market (Engvall & Bengtson, 2013).

Two paradigms, quantitative and qualitative, were used simultaneously in this paper to generate primary data, and an extensive literature review was used to collect and analyse secondary data. The quantitative paradigm involved the collection of online survey data measured on dichotomous, ordinal and nominal scales. For qualitative research, seven semi-structured interviews were conducted with experts from the fashion, e-commerce and industrial design industries.

The research conducted assessed the general trends observed in the sneaker streetwear market in the post-pandemic period. The online survey found that quality is a crucial preference of young consumers, with virtual presence being an essential attribute of a successful brand. Contrary to expectations, having a mobile app for online shopping was not necessary for the majority of the audience.

Interviews with experts from the design, e-commerce and marketing industries provided the strategies necessary for successful brand development in the NA market. Key characteristics and patterns of consumer expectation were identified. The synthesis of the information gathered is not only used to put into a theoretical framework for consistency with the literature but also to form a set of valuable recommendations for the MDS.

Recommendations

The following list of recommendations is offered as an effective guide for launching successful sneaker streetwear brands in the NA market for a target audience comprising Generation Z. All recommendations were based on empirical evidence from this study.

• Investing in building an environmentally responsible brand — in a growing secondary market, this strategy seems appropriate as it creates a positive image of a sustainable brand in consumer perception.
• Investing in an omni-channel social media presence of social media accounts — is an inherent feature of modern business for young audiences. Through social media, a brand demonstrates its interest in customers and builds trust (Al-Hawary & Al-Fassed, 2022).
• Creating a unique product design — since one of the main entry barriers for MDS is to earn the customer’s attention, creating a striking design that makes the brand stand out from the big competitors is the right decision.
• Invest in training and development — the sneaker culture market is showing rapid growth, so adapting proactively to change increases brand competitiveness and resilience (Charm, 2020).
• Developing a loyalty system — young consumers do not have much money to spend on purchases but have been found to like discounts (Khairati, 2020). Develop a comprehensive loyalty system not only through discounts but also through influencer marketing, community building to create a sense of belonging, and engaging Influencers.
• Competent budgeting — in the early stages of the business, customers prefer online sales; this saves money on rent and allows for lower production costs (Lee & Huang, 2020).
• Careful business planning — working out operational procedures and creating optimal supply chains have been identified as some of the critical attributes of a successful brand, especially in the face of global uncertainty.
• The most important strategy is to establish an established connection with the consumer. You need to use as many channels as possible to stay in touch with your target audience while shaping the right selling message for your young customer. Increasing the number of channels should be realised by increasing the quality of this communication through visual images and creative advertising.
• Pay attention to pop culture trends — studies have shown that pop culture is an important predictor of sneaker culture. Keep an eye on what’s really popular with your audience and be at the forefront of creating a unique product inspired by pop culture.
• Finally, in terms of future development, consider opening a pop-up physical branch — although the role of physical shops has declined in the post-pandemic period, consumer habits are recovering (Lingqvist & Vainberg, 2021). If adequately adapted to the new environment, physical shops can maintain and increase their popularity among consumers. For this reason, try to rent space for the brand in a prestigious location, even if you rent it for a short time; this will allow you to accumulate valuable experience for the company and later consider investing in opening a regular physical shop.

Theoretical embedding

The study’s main conclusions were the understanding of the ambiguity shaping the new sneaker market culture. On the one hand, both experts and online survey respondents reported a preference for comfort when choosing sneakers, but on the other hand, they also expressed a need for shoes to have exclusive, flashy designs, which confirms the findings of the literature review (Balchandani & Berg, 2021).

Design experts have noted the development of a culture of multi-colour, neo-futuristic, and extravagant colours that hardly match the comfortable style of sneakers. The answer to this paradox can be found by analysing the products of several successful sneaker streetwear start-ups named by respondents (Figure 12). Typically, the NA companies provided a unique synthesis of sneakers, from monochrome casual models to eye-catching coloured shoes featuring multi-coloured designs with inserts.

At the same time, almost every start-up told customers about the comfort of their design: “Big Comfort” (ALLbirds), “Magical comfort meets ultra supportive design” (Atoms), and “All-Day Comfort” (Pseudo). Meanwhile, experts noted the uniqueness of sneaker design combined with brand collaboration, the comfort of the website and its minimalism, as well as high customer focus and well-established communication.

In addition, the study showed a clear focus on environmental awareness and brand sustainability. Experts from the interviews noted that many start-ups become successful by investing in these trends and creating a socially responsible brand image. These findings support the literature review findings: consumers are willing to invest in the secondary sneaker market, and therefore it is showing strong growth (Lingqvist & Vainberg, 2021; 2019 Resale Report, 2019; Munsch, 2018).

Against this background, the revealed preference of the youngest audience (Generation Z) for high-quality goods seems particularly intriguing: secondary market goods often have excellent characteristics because they are also time-tested combined with greater sustainability.

For the younger generation, social engagement is also on the rise. Research shows that members of Generation Z are more active in social media and more informed about the events around them (Slaton & Pookulangara, 2021). These findings are in good agreement with primary data analysis. In particular, among the most important strategies for developing a successful brand, experts cited the need to communicate with users online and promote accounts on the TikTok and Instagram platforms. These channels are expected to enable a brand to gain the trust and loyalty of young consumers (Al-Hawary & Al-Fassed, 2022).

The survey results confirm the current growth in sneaker culture: respondents are, on average, willing to buy a new pair 1-2 times a month, with experts in interviews often raving about sneakers as a distinctive feature of street culture. This is consistent with the signs of a growing sneaker market and, combined with the results previously discussed, also supports the fact that a secondary resale market for the sneaker is developing (PR Newswire, 2019; Morency, 2019). Thus, it can be argued that the contemporary sneaker streetwear industry is undergoing several changes related to environmental sustainability trends, collaborative consumption and the formation of uniqueness.

Another critical theme identified during the primary research is the impact of the pandemic on shaping the sneaker streetwear market. Experts stated that due to the restrictive measures, they observed a sharp decline in demand and a creative uptick in consumer behaviour due to the forced need to stay home. People were unable to visit physical shops, leading to a significant decline in their role and an increase in the role of e-commerce, which also follows from online surveys (Bin et al., 2021).

As Lingqvist and Weinberg (2021) report, there will be steady growth in e-commerce in the post-pandemic period. Users have realised how convenient shopping is, and now they cannot refuse this convenience. In addition, forced isolation has caused consumers to spend more time on themselves and their creativity, leading to a flowering of exclusive, unique designs in sneakers. For this reason, it is correct to say that the post-pandemic market has undergone a profound transformation and has become more virtual; however, physical shops are still active and adapting to the changing environment. Thus, physical shops have become a guide for the customer in getting to know the products and values of the brand.

To summarise, it should be emphasised that the primary research conducted showed a high degree of consistency with the literature and answered the research questions formulated at the outset. In particular, it was found that the main strategies for MDS development in the sneaker streetwear industry are an emphasis on environmental awareness, investment in creating a unique design and intensive but not intrusive outreach to the target audience, mainly through e-commerce channels, including social media and an omnichannel online presence.

Critical appraisal

The work done meets high standards of academic integrity and demonstrates a significant contribution to the theoretical understanding of the sneaker streetwear market. Much of the existing literature was written before or during the pandemic, and only a few papers examine industry market trends in the post-pandemic period. The present study fills this gap and provides valuable data. The combined quantitative and qualitative approach enhances the robustness of the study and provides primary data directly from those involved in the industry, including key people in the industry.

Meanwhile, the study has several limitations that are part of future practice. Firstly, a standardised approach to data analysis was not used to conduct a qualitative analysis; instead, a narrative approach was used, which has its drawbacks (Squire et al., 2018). Secondly, the sample generated consisted predominantly of respondents closely associated with the sneaker streetwear industry, so it may not have reflected the views of the general consumer. Finally, the recommendations developed would have been appropriate in the absence of significant geopolitical changes in the market, such as the new pandemic, so that they may be adopted with limitations in other contexts.

Conclusion

Summary and Answering the Research Questions

In summary, the sneakers streetwear market is changing rapidly. The COVID-19 pandemic, which has qualitatively changed consumer behaviour patterns, has been identified as the main predictor of this change. This is particularly noticeable for young people inclined towards sustainable consumption and investing in the secondary market. The paper examined data collected through an online survey, expert interviews, as well as literary evidence to investigate strategies that MDS can use to develop effectively in the NA market. Toronto, New York and Miami were selected as specific locations for the study. The paper presents a set of essential strategies and recommendations based on empirical evidence that can be applied to the most successful entry into the industry market.

In response to the research questions posed at the outset, it is worth noting that the critical changes in post-pandemic consumer behaviour for Generation Z in New York, Toronto and Miami have been a focus on a culture of awareness and environmental sustainability, a desire to combine comfort and design exclusivity, which confirms the development of creative product execution. Young consumers want to be assured of brand authenticity and are willing to invest in a brand if the values of a start-up match their perceptions. Because of this, the paper suggests some valuable strategies (see subsection Recommendations) that any start-up brand in the industry, including MDS, can use to achieve commercial success. The main areas of these strategies include building omnichannel marketing tactics, increasing online presence by creating targeted, high-quality and brand value-sharing promotions, and investing in comfort and design uniqueness. For this reason, a best practice in using e-commerce for a brand would be to build a presence based on socially relevant issues that allow young audiences to feel a sense of belonging and engagement.

Outlook

This study is possible to expand through the utilisation of several ideas either sequentially or in parallel. Ideas for further research are to expand the sample to include a broad consumer profile. This would allow the results of the current work to be correlated with the expectations of the average young consumer. In addition, it is recommended to examine budget formation to identify the best capital expenditure strategies for MDS. It would also be helpful to include additional variables related to the secondary market industry and resale experience in the online survey.

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Appendix

Interview Transcription Andreina Chacin

[00:00:00] (Interviewer: Ashwin Madasseri Rajeev, Interviewee: Andreina Chacin Setting: Interview conducted via zoom call at 17 00 (EST) on 23 June 2022 Interviewee Profile: Associate, Marketing & Sales at McKinsey & Company, Miami, USA)

[00:00:00] Hi! Hi, I’m Ashwin, and I’m going to be interviewing you today. Andreina, initially, I would like to ask you, would you mind if I record this interview?

[00:00:31] Hi Ashwin… You want to record this for academic purposes, right?

[00:00:35] Yes, that’s how… I – I will need to transcribe it later in order to do an exploratory analysis.

[00:00:47] Yes, in that case, I don’t mind. Thanks for inviting me, by the way.

[00:00:57] You’re welcome. Let me tell you a little bit about myself before I start. As you already know, my name is Ashwin. I’m studying for a business management course. So far, I’ve been trained in India, DSK International School of Design, and uhm… and now I’m working on my dissertation in the same field. I’ve also trained in Germany and Denmark…

[00:01:24] Okay, so what is the topic of your dissertation?

[00:01:34] Thank you for this question. The aim of my project is to, um… identify market trends in streetwear for a young audience, namely Generation Z…

[00:01:52] They’re teenagers, aren’t they?

[00:01:55] Yes… Teenagers have a particular understanding of what fashion should be…these people are just growing up, and it is known that this generation should include people born after 1997 – I should say that I only consider solvent teenagers from 15 to 24-25 years old. Now I am only interested in solvent teenagers who can make a decision to buy streetwear and sneakers.

[00:02:33] Excellent!

[00:02:35] Yeah, thanks.

[00:02:30] One of the influences on such a market is the pandemic — it has indeed had a significant impact on how teenagers perceive fashion. What it means to them and what they think it should be…

[00:02:52] Can you tell me more about it?

[00:02:59] Yes, absolutely! I think it will come as no surprise to you that the pandemic has had a significant impact on the fashion market… To name but a few specific examples, the size of the industry market shrank dramatically: in 2019 it was estimated at $185,000,000,000, but a year later, by 2020… hmmm… it has shrunk substantially and continued to shrink in 2021. Do you think the streetwear market will continue to shrink in 2022 and over the coming years?

[00:03:48] I think so. If the statistics are to be believed, the trend should be down for some time yet.

[00:03:58] Have you studied statistics?

[00:04:07] A little bit. But that’s mostly my opinion. If we look at current geopolitical events all the more, a world crisis is inevitable, ha-ha.

[00:04:14] It’s sad…

[00:04:18] Well, that’s life. It’s all right, it’ll pass. What’s next for us?

[00:04:25] Great, the first question for you is what is your current role in the company?

[00:04:37] Thank you for this question. I now work in e-commerce sales at McKinsey & Company.

[00:04:52] Mmm…What do you do there?

[00:05:06] In simple terms, we study e-commerce models, look at where it can be developed, help our clients with it, and don’t just drive the evolution of online sales, ha-ha

[00:05:38] Very well, are your clients mainly business clients?

[00:05:52] Mostly yes. I would say 95% of my clients are business ones.

[00:06:08] I hear you. So, the topic of my dissertation is to study the impact of the pandemic on the development of the streetwear and trainer market. For this market the target audience is the young generation, teenagers. I think it is worth asking you how you have felt the effects of the pandemic?

[00:06:31] If we are talking specifically about market relations, I think my case is not an uncommon one, because like everyone else I felt an acute shortage of supply on the market and the supply chain disruption of goods became less and its prices became higher. I did not have any job cuts, but nevertheless I felt much less secure than I do now.

[00:06:59] I hear you. Things are better now, aren’t they?

[00:07:08] Partly. Until recent events, all was generally well.

[00:07:16] Understood. Let’s try to sort out the question. How do you feel about fashion in general?

[00:07:24] I wouldn’t say I’m too involved in this world, but nevertheless I follow fashion trends and am often inspired by new sneakers and looks, especially if they are so extravagant. It both scares me and inspires me at the same time, ha-ha.

[00:07:46] Okay. So, my first question will be…what is fashion to you?

[00:07:59] Let me think a little… for me fashion is probably an opportunity to express myself, primarily through clothes. To show who I am, how I’m feeling right now, what my mood is… And I can express all that through what I’m wearing. It can be clothes, sneakers, accessories, hats, and so on.

[00:08:38] Very good. Please tell me, on a scale of 1 to 10, how passionate are you about fashion and sneakers?

[00:08:52] I’d say about seven.

[00:08:59] Why did you choose that number?

[00:09:06] Oh, and I can tell you why I didn’t pick 10. I’m not directly a fan of the whole thing, I love cool sneakers, I follow them, but I don’t consider them my raison d’être, yeah. Likewise with fancy clothes. I like something nice to add to my life, well that’s probably the only thing that makes…sense in it.

[00:09:36] All right! What do you think about changes in consumer behaviour during the pandemic in the context of streetwear, sneakers, well in general. Maybe you were able to spot some patterns?

[00:10:11] I can say that consumer behaviour during the pandemic… I think it was a maximum drop in demand to buy clothes, because there was no elementary opportunity to get out of the house, to buy anything I guess… had to order everything online. In fact, even ordering wasn’t always possible because a lot of shops just didn’t have the product you wanted to buy.

[00:10:49] Is there a pattern you can name?

[00:11:03] Mmm… From the pattern I can say that probably before the pandemic, people probably weren’t really interested in what other people were producing online, what they weren’t selling, what brands locally existed… Well, once the quarantine came, people had a lot of free time, so I didn’t start to learn a lot of new things for myself. For example, I personally learned about some new designers, some models of sneakers that I did not know before, jumpers, and things like that…

[00:11:48] OK, I hear you. My next question is what are the e-commerce trends in your region, we are talking about Miami with you, you noticed in relation to street fashion. You can answer as a whole, both during the pandemic and after the pandemic.

[00:12:09] This is a very good question. And most importantly, you are asking this question to the right person, ha-ha. I’m sure e-commerce took a huge step, just a giant step, in the post-pandemic period. But actually, that step started during the pandemic, especially in the beginning, but then when the main restrictions had already been lifted, because many brands have created a very convenient app… I think you know about these apps, where you can try on sneakers or clothes directly on yourself, through the camera.

[00:12:59] Are you talking about an alternate reality?

[00:13:07] Yes, that’s exactly what it’s about. That is, you don’t have to go to the shop now, you can see how the item looks on you from home and decide whether or not you want to buy it. So, you press a button to order the product and in a couple of days it’s already at your home. That is the huge evolution of e-commerce. It has substantially overtaken the physical shop. That is, a person does not really need to go out now, you can sit at home and mind your own business, maybe in between work, go to the app, to the mobile app of your favourite online shop, choose a couple of things and order them… So, to say as a reward for good work, ha ha

[00:14:15] That’s a very good answer thank you Andreina!

[00:14:21] What do you think might be some of the threats or disadvantages that the company…uhm… company should address when launching the brand in the North American market? I have to say that the North American market is the biggest one for the streetwear industry. Also, let’s think of the company as some start-up that wants to open in this market and gain the confidence of the teenagers.

[00:14:47] oh, what do they want to sell?

[00:14:57] Mmm… Their main sale is streetwear, i.e., trousers, shorts, shirts, T-shirts, hoodies, and of course snickers.

[00:15:14] Yeah, I get it. So, your question is, what threats does such a company have?

[00:15:31] That’s right…

[00:15:37] Well then, the single most important issue is competition. You have to realise that the products you have listed are not exclusive, so a huge number of brands are producing them. There are giants in the street trade market and even more so in the sports trade market, I think you know very well who… Who are doing a great job and are hugely popular with a young audience. It is this competition that a start-up needs to overcome. Well apart from that, you can’t forget about advertising. You cannot create a successful brand, much less a new brand, if you just produce a good product. Yes, you can create the coolest sneakers in the whole world, but if you don’t have good advertising, you will just fail. So, you definitely need to invest not only in design, and creating exclusivity that will set you apart from the competition… You need to overcome people’s desire not to wear those sneakers. For example, if I see that there’s a cool youth brand on the market in Miami… Why should I want to buy sneakers there? I can go to an Adidas or Nike or even Puma online shop and make a selection among the huge number of sneakers there. I know for a fact that it will be inexpensive, and I know that the company will be responsible if anything happens to my sneakers. It’s a big brand, and there’s a lot of trust in it. But there’s no trust in the new brand yet… So, it will be paramount for start-ups to overcome people’s reluctance to buy from them. How can they make me buy sneakers from them? Or not sneakers, but a jumper, a hoodie, clothes, or something else… To overcome this distrust, you have to invest in good advertising… Only then the product can be launched to the masses, hopefully it will be popular there, otherwise it will definitely be a failure.

[00:18:21] Thank you so much for your great response. It is very informative. My next question is precisely on your profile topic. So maybe you can answer just as widely, ha-ha. How and what do you think is the main advantage of an e-commerce strategy for start-ups? That is, what is the best way to use e-commerce to accelerate the profits of this start-up?

[00:18:52] The main advantage of this, of course, is accessibility. People can, without leaving their home and without being distracted from their daily routine, go in at any convenient moment, for example during a lunch break or while doing household chores, to… see everything there, if a virtual fitting option is available, to try on clothes online, and accordingly order if you like them. Ideally, all of this can take only a few minutes. In the real world, if I may say so, you’d only have to leave your house in those few minutes to get in your car and drive to the shop. Does e-commerce benefit… Does e-commerce win over physical shops? 100% yes. What’s the best way to accelerate profits? It seems to me that the more people know about your brand, the more people want to buy their product. So, people need to have their ears on your name, we need to see what you produce, and ideally from what… what materials. Even if you run an advertising concept, they have to see the product. Even if the product doesn’t exist yet, think of Elon Musk who is going to produce a robot. That robot hardly exists yet, but people already see the concept and want to buy it. If you use good advertising and good positioning of the e-commerce brand, when you are sure to be able to significantly accelerate revenue generation.

[00:20:39] Great, thank you very much all right. I still have a few more questions. Imagine you have $100,000 and you are going to launch a start-up producing streetwear, sneakers and so on. Mind you, the audience would be young people, Generation Z. How would you decide to spend that budget??

[00:21:05] To begin with, I would say that it is not a lot of money to launch a successful start-up. Well, if we are limited in money, then what can we do? Of course, there are additional loans, venture capital funds, and so on, but let’s pretend we don’t have all that. The first thing for you is to create a concept plan. You must clearly understand where, on what, and when you will spend the money. Without a budget plan you can’t do anything, forget it. Well then, you’ll have operating expenses, that’s to hire an employee, pay rent for space, research materials, buy these raw materials, understand what part of that budget you want to give to advertising, well probably the most important is to do pricing strategy, because it also requires money to determine at what price you will sell your product so your client can buy it. I remind you that we are talking about a young audience who don’t have a lot of money, so to put a big price on an exclusive product, it would be wrong.

[00:23:01] Great, Andreina, great answers! Thank you. Um… Let’s have a few more questions. So, how do you think a start-up should position itself in the market in North America in terms of lean e-commerce?

[00:23:52] If a brand is pursuing a lean e-commerce strategy, I remind you that it is a strategy and not everyone adheres to it, then it has to be an extremely punctual deliverer in the face of the customer. The delivery system has to be worked out perfectly, so that the buyer always knows that he will be able to get his goods in some adequate time. Among other things, calculations have to be made as to whether there will be high demand, there has to be…there has to be a stock of goods. Because if a brand has shown an extremely successful start-up marketing campaign, has a huge number of pre-orders and then it turns out that it can’t sell that much product because it simply doesn’t exist, this will immediately undermine… undermines the credibility of the brand.

[00:25:02] Very good. The next question is what threats and disadvantages should I look out for when launching an e-commerce brand?

[00:25:28] I think a strong threat to you will be very much competition. Perhaps you will come up with something that someone else has already come up with for you. In your case, I’m absolutely certain of that. But I don’t want to upset you. Even though sneakers and clothes already exist, that doesn’t give us a ban on producing them. Who knows, maybe you can create great sneakers that can beat the market giants in every way. Quite possibly. If you’re planning to launch a start-up, you have to somehow try to calculate when the competition is fierce. You need something to stand out so that you can attract the consumer’s eye among the vast array of similar sneakers. So that they look at your shoes and realise that this is the one they want to buy.

[00:27:01] OK thanks the next question is to name the main differences between brands that start out on Amazon or on other independent marketplaces

[00:27:17] I would say that brands that load up on some big platforms like Amazon might face a lot of competition that might not be able to cope. If some independent brand creates its own platform, its own website, creates attractive advertising there, then people are more likely to be able to hear them. They will know that if there is a particular product they don’t want to find, they can always turn to that site. On Amazon the consumer is confronted with a huge range of choices. These are, of course, advantages. But, on the other hand, not all consumers are willing to spend their time choosing a product among such a large variety. In addition, do not forget that because of the variety of Amazon, the consumer may not choose what they originally wanted, but what they liked right at the moment… For example, the price was more attractive… Although the quality of the product will, for example, be worse. So, from your point of view, as an entrepreneur, you’ll lose a lot if your product comes only from Amazon…

[00:28:52] Can you name a few successful start-ups from Miami or New York or Canada that have successfully entered the streetwear market?

[00:29:08] I can give you an example of a brand from Canada. It’s SoleSavy all smth like that. Maybe you’ve heard of them?

[00:29:31] No, I haven’t heard of that brand. What is it?

[00:29:40] They have a very interesting story… You can read about it, in a nutshell, they have noticed a resale problem in the trainer market that lowers availability to new customers. You know, it’s like speculators looking to enrich themselves with trainers…It’s a very successful brand now, they’ve gone a few rounds. Even celebrities buy clothes there, streetwear, including popular ones among teenagers. And if we talk about strategy, they used… First of all, they made it so that the consumer enjoys looking at the clothes on the official website… It’s unobtrusive, but so that people understand exactly what they are selling. That is, the website has to be attractive!

[00:30:39] Great, how do you think the role of physical shops has changed now?

[00:30:45] It seems to me that the role of the physical shop has fallen very much. This is clearly visible in shopping centres. As a rule, they are becoming empty. After the quarantine came, the mall lost its functionality. The quarantine has been lifted and functionality is being restored, but perhaps not as quickly as one would like. Brands that put in physical shops have come to realise that people choose convenience, and it is much more convenient to shop online… Why leave home when I can buy goods right there. Also, people generally may not have the time to go to physical shops. Well, we are seeing these brands starting to have their own apps, their own websites, that is, they have realised the benefits of e-commerce and entered into it.

[00:31:52] OK thank you very much, is there anything else we should know?

[00:32:02] I think not, ha-ha.

[00:32:06] And would you be able to send me some information in an email that’s appropriate for my dissertation work?

[00:32:19] Yes, of course. I’ll send everything, thank you for inviting me.

[00:32:26] Thank you for taking the time for this interview!

Interview Transcription Michelle Fradin

[00:00:00] (Interviewer: Ashwin Madasseri Rajeev, Interviewee: Michelle Fradin Setting: Interview conducted via zoom call at 17 00 (EST) on 20 June 2022 Interviewee Profile: E-Commerce Strategy, New York City, US).

[00:00:00] Um… Hi Michelle, my name is Ashwin Rajeev and I’ll be interviewing you today. And I’ll be taping the interview, if that’s okay with you.

[00:00:15] Hi Ashwin, very nice to meet you, yes, of course.

[00:00:20] Michelle, I have to say that you have quite an impressive list of accomplishments on LinkedIn. I mean, you went to Yale in the same field that I did, you speak Chinese and French, and you’ve worked for major companies including PepsiCo and McKinsey and Company. Can you tell me, at the moment, what are your job responsibilities at McKinsey and Company?

[00:00:49] Ha ha, you perused my LinkedIn. Yes, indeed right now I’m working at McKinsey and Company, and I’m working on e-commerce strategies. Specifically, we’re looking at analysing how we can grow our clients’ umm… companies in order for them to increase their profits.

[00:01:08] You specifically you’re researching online promotion options, yes?

[00:01:15] Yes, exactly. That is, developing our clients through social media, search engines, and any other virtual platforms that can be used for promotion. To be more specific, specifically we’re working to improve our online sales strategies. I see it as making a lot of sense because our modern lives are surrounded by digital devices, and we just have to use them in order to grow our business.

[00:01:52] Great Michelle I agree with you.

[00:02:02] In this interview I want to talk to you about my research project. First of all, let me tell you a little bit about what it is in general. Right now, I’m um… I’m studying for a degree in business management and my thesis is to identify the market trend of streetwear for a younger audience, specifically for members of Generation Z…

[00:02:30] Sounds like an interesting topic

[00:02:35] Yeah, it’s really a very inspiring issue for me. There’s a reason I chose Generation Z in my work. The fact is that teenagers have a particular understanding of what fashion should be right now. These people are just growing up and I have to say that I’m looking at 15 to 24- to 25-year-olds. In Particular, I did some analysis and found that among people of this age the trends of conscious consumption, sustainable business development and collaborative consumption are very pervasive. Co-consumption includes sharing clothes, renting, recycling and so on. It seems like a pretty eco-smart solution, but very unclassical in terms of fashion.

[00:03:30] Yes, I agree with you Ashwin.

[00:03:35] However, Generation Z is not the only factor that I look at in my dissertation work. The second one is the pandemic. I think it will come as no surprise to you that the pandemic has had a significant impact on the fashion market, on the consumer market, and on the economy in general. To name but a few specific examples, the size of the industry market has shrunk dramatically, it’s reported to be worth $185,000,000,000 in 2019, with the year 2020… hmmm… it has shrunk substantially and continued to shrink in 2021. Against this backdrop, do you think the streetwear market will continue to shrink in 2022 and over the coming years?

[00:04:45] That’s a good question that really should be asked by people who understand statistics and economics. Um…For my part as an e-commerce person I can say that online shopping will continue to increase demand if no global disasters occur. The pandemic did bring us significant benefits, because a lot of online platforms emerged and continued to develop, and it would be strange if after the pandemic ended it all disappeared instantly. Um…On the contrary, people are used to shopping online, it’s convenient for them, so I think it will continue to develop in the future.

[00:05:59] Okay, I understand what you’re saying. How you’re the one I told you about is that my project involves Generation Z and the impact of the pandemic. We’re actually mixing it all up and getting the impact of the pandemic on the streetwear market whose target audience is the younger generation, the teenage generation. Teenagers are constantly using digital devices and social media to message, keep in touch, and just keep up to date. Obviously, in that sense, they will also use social media to…um…shop, to make online purchases. Do you think it’s logical to only use online sales strategies for teenagers?

[00:06:48] Are you asking me about whether we should do away with offline commerce for the younger generation?

[00:07:01] Yes, my question is this.

[00:07:10] I don’t think we should give up on offline commerce because teenagers are using it not only online but offline as well.

[00:07:19] You’re right about that. Studies show that about half of consumers are willing to buy products online and half spend products…spend on offline products.

[00:07:26] Yeah, I’m talking about that.

[00:07:30] Okay overall that’s all I had to tell you about the water part so let’s get to the questions.

[00:07:38] Okay, I’m in!

[00:07:42] So my first question is, what is fashion to you?

[00:07:46] What an unexpected question. Let me think… I think fashion is… um… It’s probably relevant to the general public’s behaviour.

[00:07:58] Am I correct in assuming that you’re calling it specifically a mass…um…mass phenomenon?

[00:08:06] Yes, I think it is.

[00:08:11] Okay. And please tell me how much, on a scale of ten, do you like fashion and are you into trainer culture?

[00:08:23] I think somewhere around seven.

[00:08:30] Can you explain your choice a little bit?

[00:08:35] Yeah. I’m not a big fan of fashion because I don’t follow the latest updates and trends in that market. I often wear what’s considered trendy right now, so-called fast fashion, and I also don’t mind wearing sneakers. So, I can’t say that I don’t like sneakers and fashion; I love it, but I also understand that isn’t all what I love, mm.

[00:09:02] Okay I got your message thank you.

[00:09:07] My next question is about your thoughts on changes in consumer behaviour during the pandemic in the context of streetwear, well, consumption in general – what can you say about that? Maybe you’ve noticed some patterns in that change?

[00:09:34] Again, I don’t have any specific statistics or historical data, so I’m going to refer to my personal opinion.

[00:09:43] go on Michelle, that’s exactly what it takes for me, please continue

[00:09:55] Okay, then I can say that the pandemic has forced the fashion industry to focus even more on consumer comfort because of the fact that they’ve become more at home. I see a simple connection here. You sit at home, you spend more time on yourself, and less time on your surroundings or work. Investing in yourself allows you to understand yourself more deeply, after which you simply understand what comfort you deserve and what you need to strive for.

[00:10:31] From what you’re saying it appears that the pandemic had exactly a positive effect on humanity, does it turn out that way?

[00:10:48] Rather I wouldn’t say that the pandemic was strictly negative. Certainly, it’s a great tragedy for all of humanity or all of the planet, but being a tragedy definitely has not the worst benefits.

[00:11:02] I see what you’re saying, okay, is there anything else about the pandemic?

[00:11:12] Let me think…um…I can tell you that online… online shopping has become a reality even for those who previously refused it.

[00:11:18] Maybe you have a specific example?

[00:11:21] I can definitely tell you that my elderly relatives started using online shopping to order groceries at home, and I think they even ordered some clothes. Of course, it was a forced measure because they couldn’t go to the mall and buy everything as usual. But nevertheless, they quickly got used to it.

[00:11:42] Yeah, got it. My next question is, what e-commerce trends are you seeing in your region, which is New York, in terms of trainer fashion and streetwear in general?

[00:12:05] If we’re talking about the whole picture, I can tell you that shoppers are turning more towards online shopping. I see you in the New York market as an example of how many times I’ve seen online ads and a couple of times I’ve seen online shop ads in the offline market that advertise shopping online, which is usually a cheaper shopping experience.

[00:12:35] You mean online shops offer more discounts to the consumer…um…consumers?

[00:12:52] Yeah, I mean they need to engage more of their audience somehow. That’s why they offer discounts and different bonuses to get customers to shop online specifically.

[00:13:05] OK are there any other patterns that you’ve discovered?

[00:13:15] I can say that I guess the sites for… online shop sites have become a little bit more user friendly and visually appealing, well that again has come about because more traffic has come to them, and they needed to rebrand or redesign to be more with a nice and comfortable experience for the general consumer.

[00:13:44] Yeah, I also remembered that you started seeing more teenagers who started dressing brighter.

[00:13:53] What do you mean when you say you started dressing brighter?

[00:14:01] I mean it’s more multi-coloured sneakers and clothes, more eye-catching clothing elements, more aggressive style in general… I mean they’ve rapidly moved away from some classic monochrome fashion and become committed to a certain individualism. I can say that now more teenagers are trying to be attractive in the context of clothes and sneakers than before.

[00:14:31] Okay, and if we’re talking about the post-pandemic period. I mean right now when the pandemic is kind of over, the major restrictions have been lifted, maybe there are some patterns that you haven’t mentioned yet?

[00:14:52], I guess I wouldn’t distinguish them so clearly in terms of some patterns that happened specifically in the pandemic, some patterns that happened after the pandemic. I would say the pandemic had an impact in general and we’re seeing it now. The shop websites… yes shop websites have become more user-friendly, and they have understood the pains their customers had – previously they had read a lot of the feedback people had written. And these were written by people who were, in fact, new to these platforms: they came, they looked, and they realised what would be uncomfortable for their consumption. Accordingly, the online platforms took advantage of that and addressed all the weaknesses to increase customer loyalty.

[00:15:46] Okay. My next question is to understand what you think might be the threats or weaknesses that a start-up company should look out for when launching their brand in the North American market, and we have to remember that this is the biggest market for streetwear and trainer consumption.

[00:16:07] First and foremost of course is the competition. As it’s the most crowded market and has some of the most demanding customers, it’s going to be quite difficult for a start-up brand here. I’m not saying they shouldn’t try. Of course, they should, because this is a business, and it always involves risks. Nevertheless, entrepreneurs should be aware of the problems they may face.

[00:16:51] Okay, is there anything else?

[00:16:55], I guess so. What I can say about is that if you don’t choose the right marketing strategy and accordingly fill the web page, the entrepreneur is going to run into a lack of traffic. That was the lesson I said earlier. When pandemic helped online shops change their look and feel in order to attract customers. If a start-up ignores this, it is guaranteed to fail. And I should probably add about the phenomenon of online shopping scams.

[00:17:31] What do you mean?

[00:17:35] I’ve come across this in my practice and I’ve heard it many times from my colleagues. When customers, unscrupulous customers place orders online, get a product and use it and then return it under the excuse that it didn’t fit them. I call it online fraud, when consumers want to profit from entrepreneurs and commit unscrupulous acts. The aspiring entrepreneur has to be prepared for that.

[00:18:09] Okay, now I see what we’re talking about. What do you think is the main advantage of an e-commerce strategy for a start-up company? Perhaps you can suggest how best to use e-commerce to accelerate profits for such a company?

[00:18:31] That’s also a frequent question in my practice. You have to understand that e-commerce takes away the need to pay rent for a premises, and it’s rent that’s often one of the biggest cost items. In other words, when an entrepreneur chooses e-commerce, he or she is um… saving money. This money can be invested in further developing his business and buying advertising. Beyond that, of course, is talent management. Have you heard of that concept before?

[00:19:09] Yes, what we mean by talent management is HR practices that are designed to create a prosperous environment to attract high-competent employees.

[00:19:21] Yeah, and most importantly, those employees don’t have to be physically present where your company operates. I mean, the pandemic has taught us how to work remotely. And thank goodness for that. Now you don’t have to go to an office, as people who want to do so can work from home. Accordingly, in a start-up, you can hire remote workers who work well but don’t live in your area. This will be especially attractive if the remote workers live in regions where the salaries are lower than in your area. This way you not only hire a talented employee but also save money on salaries.

[00:20:51] Okay, that sounds like a good strategy for a start-up business. If you have, what else can you add?

[00:21:06] I think just that.

[00:21:10] Okay then moving on to the next question. Imagine a company like this now has $100,000 in capital to launch a trainer brand. How do you think that brand should spend it?

[00:21:40] For what I can say, that’s not a very large amount for a start-up, but still some capital, nonetheless. If we’re talking about the most appropriate way to spend it, I would say that… I would highlight a few points for the budget. Firstly, it’s research into the brand’s audience. A start-up needs to understand who it is working for – in your case we are talking about a young audience, Generation Z. Accordingly, you need to clearly understand their needs, know their desires, and understand what to do and where to go next. Understanding your customer is the foundation for the development of any business. You can be endlessly cool and innovative guys in the market, but you’re not going to make any profit if you don’t understand who you’re trying for.

[00:23:01] Great. So, understanding your target audience is the foundation of everything?

[00:23:07] Yes, it is. But I wouldn’t say that’s the only thing you should spend $100,000 on. The second item in that budget I would say is the need to create and populate a user-friendly and necessarily stylish website based on the results of the market research. You should bring in a competitive analysis, you can use any competitive analysis model to understand what website building patterns other brands have, especially brands in your industry. It is also recommended that you study customer feedback from other brands, i.e., customers of your competitors, to understand what it is about their website that is not satisfying the wants and needs of the consumer. Once you’ve done your research, you can invest in building that website and then you’re guaranteed to get something that will satisfy your customer. But again, that’s not all. The next item on the budget I would call creating the brand’s social media filler and its pages on the marketplaces. As we know, social media is a critical element for any modern business. A business without social media is practically a guarantee… guaranteed failure. So, you’re probably going to have to hire experienced SMM specialists who can introduce your network, and very importantly, make your profile stand out among your competitors.

[00:24:52] So, you get audience analysis, marketing followings to create a website, and creating a social network. What else should a $100,000 budget include?

[00:25:06] Again, I’m saying general things now that may not fit into a hotel budget. And you probably have to save on something because $100,000 for a start-up, as I said it’s not that much. We’ll also have to create vibrant content to populate the website and social media. It will have to be videos, photos, educational articles — you can tell your followers about how to look after your sneakers, your clothes, or what mistakes to avoid when storing them. This will be very useful content that will allow your audience to increase their trust in you.

[00:26:12] It’s also necessary to… It’s also necessary to buy traffic. I mean you’re going to have to invest in targeting ads and search engine ads… on social media, and bloggers, to get the audience to come to your channel. I think these five pillars are what any start-up, I would even say any successful start-up, should be budgeted for. If you release any of these elements when developing your business, you are almost guaranteed to lose customers.

[00:27:02] Okay Michelle, that was very valuable advice. Thank you for that.

[00:27:10] My next question is how do you think a brand should position itself in the North American market when entering the market with a lean e-commerce strategy specifically?

[00:27:32] When you say lean e-commerce — do you mean adequately using the resources and tools of the business?

[00:27:41] Yes, I mean specifically on the entrepreneur side.

[00:27:46] I would say don’t spend a lot of money buying advertising from big bloggers. It’s going to waste your budget a lot, and it’s not going to bring you the traffic you want. Instead, think about a simpler, and more reasonably priced ad that will have a much higher conversion rate.

[00:28:10] And that’s another valuable tip thank you. The next question is to identify what are the threats or shortcomings that I as an entrepreneur should look out for when launching an e-commerce brand?

[00:28:32] I would say that you have to understand that sneakers , including any shoe, is still that clothing item… that segment of merchandise that people prefer to try on before they buy. We have to realise that every foot has too many features, if we only specify a size, it might not be enough. For example, the same size can look and feel completely different on the foot in different shops. So, consumers will probably continue to buy sneakers offline until you have solved the fitting problem. Because without the fitting option, there may be significantly less shopping and more negative feedback. Also, don’t forget that competition can be very crushing. I’m referring to the case where a company purposely buys advertising in order to write negative reviews of their competitors. This will almost certainly happen. It is a natural but not very fair element of competition in the industry market. You will need to have a professional who can effectively defend your brand’s reputation against it. Think about it!

[00:29:58] Thank you very much Michelle.

[00:30:03] You’re welcome, ha ha.

[00:30:10] What do you think is the difference between brands that started out on Amazon and brands on other independent online venues?

[00:30:21] And that’s a tough question. I think that on Amazon a brand can get lost among competitors, so sometimes it’s effective to use more niche marketplaces that are used by the target audience.

[00:30:44] Okay. Do you have any examples of start-ups that have been able to tap into that marketplace?

[00:31:01] To be honest, I don’t really follow new start-ups. However, I can tell you that on Reddit, there’s a whole community dedicated to streetwear start-ups. I remember because I read about it on GQ. You can read about it if you want to. Unfortunately, I won’t be able to help you anymore on that one.

[00:31:25] Okay, there’s only a little bit left. How do you think the role of physical shops has changed over that period?

[00:31:40] I would say that the pandemic has discouraged some consumers from going to public places, plus in a particular city or neighbourhood the selection in physical shops is much duller than the endless variety on online platforms. The number of connoisseurs of online shopping has multiplied.

[00:32:12] Okay. How do you think e-commerce…uhm…has affected consumer behaviour? And will they stay after the pandemic?

[00:32:28] That was roughly the question above. I can definitely say that when the pandemic subsides, they will definitely stay. The physical shops will therefore need to change the concept, to become points of attraction for the target audience: not just selling sneakers, but having open lectures, selling coffee and so on. These are just ideas. In the online space, we should immediately look at the concept of meta-universes… It seems very appealing to the modern consumer.

[00:33:02] That’s a very interesting vision.

[00:33:06] Thank you.

[00:33:10] Do you have any other information that we should know?

[00:33:19] I think not. I think I’ve shared a lot of secrets, ha ha.

[00:33:24] Okay, thank you for that. If you don’t mind, can you send me some resources related to my thesis project?

[00:33:37] I’m sure I can. Leave me your email address and I’ll send all the materials there.

[00:33:45] Great thank you. Thank you for your time for this interview and thank you for the contribution that you made to my research. Have a good day.

Interview Transcription Andy Tamayo

[00:00:00] (Interviewer: Ashwin Madasseri Rajeev, Interviewee: Andy Tamayo Setting: Interview conducted via zoom call at 15 00 (EST) on 9 June 2022 Interviewee Profile: Creative Director at GUT, Miami, USA)

[00:00:00] Um, hi Andy, my name is Ashwin Rajeev, and first, thank you for agreeing to do this interview. It’s a very important contribution to my research project.

[00:00:16] Hi, Ashwin. That’s not a problem for me. Thank you for inviting me.

[00:00:23] Andy, tell me, would you mind if I recorded our call? University rules require me to provide a transcript of our interview with you, so your consent is critical to me.

[00:00:47] Yes, of course, what is it about? Please record our conversation.

[00:00:53] Great. Thank you again. So, uh, first of all, let me give you an introduction to what my project is all about, so you know, so you have a better idea of what it’s all about, haka.

[00:01:05] Come on, that would be great! (smiles).

[00:01:08] As you already know, I’m Ashwin. Previously I trained as an industrial designer at DSK International School of Design in eastern India and now I’m working on my dissertation in the same field.

[00:01:24] Great, cool!

[00:01:27] Ha-ha, thank you!

[00:01:28] Uh, so after that I’ve done some training in Denmark and Berlin, so I’m working on developing a global understanding in the fashion world, if I may say so.

[00:01:46] The goal of my project is to… no, let’s put it another way. From your LinkedIn profile hmm I know you love start-ups. Imagine a start-up based in Toronto. It’s a small company… currently only three people, that wants to enter the affordable luxury market in the context of streetwear. Are you familiar with the streetwear phenomenon?

[00:02:10] Yeah, sure, what’s the question, ha-ha. I like to wear comfortable and casual clothes when I’m in the mood (smiles).

[00:02:18] Great! Um so the company is going to launch in 2023 and operate in the North American market until at least 2027. In order to, uh… successful launch we need to do extensive market research. As a professional marketer, um, I’m sure you know what this is about.

[00:02:45] Of course!

[00:02:46] Great. Our company’s target audience will be Generation Z…

[00:02:48] I’m sorry… Why them?

[00:02:53] That’s the right question and thanks ha-ha for asking it (smiles)

[00:03:01] The choice of this particular age group is justified by the changing um paradigm of consumption among Z’s. People in this age group or rather let’s say erm right, people aged 15 and over in this age group have felt the acute impact of COVID-19 like everyone else. That said, research shows that there’s been a paradigm shift in consumption for young, um, solvent consumers

[00:03:35] Yeah, right, I read something about that…

[00:03:38] Right.

[00:03:40] There’s no exact and standard data, but it’s reported that among those changes is a culture of collaborative consumption, more informed product choices and a willingness to buy more expensive but higher quality.

[00:03:57] So in order to successfully commercialise er… in our market… our company needs to have a confident grasp of the trends of the target audience and hmm understand the basic requests

[00:04:15] That sounds about right (smiles)

[00:04:19] Yes!

[00:04:20] Let me summarise that um… thought. The pandemic has had an important impact on Generation Z, changing their ideals of consumption. There has been a change in the social and cultural agenda. This will probably hmmm continue in the future, so it’s vital for a start-up to own this hmmm… information. Do you agree with that?

[00:04:45] Absolutely.

[00:04:47] Good.

[00:04:48] In that sense, my research goal is to identify the basic patterns that will, uh. help my start-up to achieve high performance in the market. It’s about um… strategies and development paths.

[00:05:06] The company plans to open in the New York, Miami, and Toronto markets

[00:05:12] Great locations, you’re on the right track!

[00:05:17] Thank you, ha-ha (smiles)

[00:05:19] Including one of the research questions is understanding e-commerce strategy because…

[00:05:28]…because as we know young people are constantly using smartphones to make online purchases.

[00:05:38] Andy, can you please tell me, on what I’ve already told you about, do you have any questions?

[00:05:45] I guess not, it seems clear to me

[00:05:50] great! Then I’m almost done ha ha…anyway, the significance of my research is to contribute to the understanding of a rapidly changing marketplace. You know what I mean?

[00:06:05] Yes, absolutely.

[00:06:08] Wonderful! The consumer market from Z is going to change, and how much detail and depth we explore depends on the future development of not only my company, but the market as a whole. Sounds global, ha-ha!

[00:06:24], so fashion is changing rapidly. What would you say about what fashion is to you?

[00:06:32] In what way?

[00:06:37] Well in terms of fashion as a phenomenon. What does it mean to you? How do you hmm understand the meaning of the word fashion?

[00:06:48] Ah, I get it. I have two answers.

[00:06:52] Great!

[00:06:54] From a consumer perspective, fashion to me is a kind of intangible but tangible trend. Sort of what’s common now and popular. Fashion can be long term or fast.

[00:07:08] Right.

[00:07:09] Yeah, and from a professional perspective, fashion is some tool that helps drive consumer behaviour. For example, when I know what’s possible among a particular audience, I can use that to increase sales

[00:07:23] Oh, that’s interesting. Could you give me an umm…example?

[00:07:27] Um, let me think.

[00:07:37] Well for example if I wanted to increase traffic to the site among your generation, I mean the generation that you study, I could use memes or TikTok and that would show more growth

[00:07:52] Cool!

[00:07:54] Yeah, but I’m not gonna tell you any more secrets, haha

[00:08:00] Okay! Great, I get what fashion is to you. Now the other question:

[00:08:09] Studies show that the market for marketable clothing has undergone major changes in 2020 and shows a deficit up to the current moment. That means that the pandemic has had a serious impact on fashion consumption. Were you able to notice it yourself?

[00:08:30] More likely yes than no.

[00:08:35] What do you mean? Can you, uh, give me an example?

[00:08:40] Let me think about it. I guess so.

[00:08:41] Come on!

[00:08:43] I go to the mall quite often myself and buy fast fashion clothes when I’m in the mood

[00:09:01] Great!

[00:09:03] Yes, and as you remember, in 2020-2021 we had to use masks and live with serious restrictions, which caused my habitual shopping to be broken.

[00:09:13] Assessing that time now I realise I no longer enjoyed shopping and was in a constant state of stress when visiting malls. All those masks, checks, thermal sensors… you know what I’m talking about?

[00:09:30] Of course, it really was horrible.

[00:09:35] Exactly! So, in answer to your question, I will say that one of the effects of this pandemic on me was my personal change to offline shopping. I couldn’t enjoy it anymore.

[00:09:51] Yeah, what’s the deal with hmmm with that now? Are you still worried about that?

[00:10:01] Rather not. When COVID-19 restrictions were lifted, I quickly went back to my normal lifestyle.

[00:10:07] Okay.

[00:10:09] Great, thanks for your pandemic story. You’ve experienced it first-hand too. The fashion industry is suffering from shortages and contraction as a result of such restrictions, according to PWC. Have you noticed it in your own experience?

[00:10:27] That’s a good and complicated question. Well, I can say that really has changed and I can see that, and I would say that there’s been some serious downsizing rather there’s been some reorganisation

[00:10:43] can you say more about that?

[00:10:48] Yeah, sure, I can see that fast fashion has become more comfortable and more casual or something? We’ve lost… we’ve lost some of the swagger of this fashion and come to something that we can wear and feel comfortable in it and really be ourselves or something

[00:11:10] That’s interesting!

[00:11:13] yes and in doing so we’ve all gained valuable experience from this pandemic and realised how serious and global a disaster of this magnitude can be. Now consumers have become more conscious and more precautionary or something

[00:11:30] OK! So, you haven’t noticed the shrinking street fashion market in your example?

[00:11:35] Yes, I haven’t noticed that.

[00:11:38] Glorious. In fact, research shows that there’s been a complete collapse in consumption, if I may say so, because the paradigm of consumption and the perception of consumption has completely changed. For example, one such manifestation of this collapse is the emergence of the trend towards shared consumption. People want to share their clothes, there are sharings and clothing rentals which are becoming more and more popular. And out of these sharings people want to give away their clothes, wear them again, and use them for recycling and so on…

[00:12:20] Yeah, and that sounds great to me!

[00:12:24] Great. Andy, I need to ask a question that I didn’t ask at the beginning. Please tell me what is your professional position at GUT?

[00:12:36] Ha-ha, I’ve been waiting for that question. I’m currently working as a creative director for this company. My job is development, strategic planning, and vision for GUT. In a general sense, we develop by promoting our clients, both offline and online.

[00:12:58] can you please tell me who your company’s clients are?

[00:13:05] Well, they’re mostly business clients, meaning companies that want to increase their sales, increase their profitability, we’re talking about commercial development. And very rarely are individual entrepreneurs and individuals, businesspeople who are interested in personal promotion, but they’re a minority; it’s mostly business clients.

[00:13:25] great

[00:13:26] yep…

[00:13:29] okay. My next question for you would be quantitatively how much on a ten-point scale, where 10 is the strongest do you like fashion?

[00:13:43] ha ha, I love questions like that. Let me think about it. Hmm. I would say that as a consumer I love high-five fashion because it creates trends and allows you to make affordable more elit… elitist fashion for the younger generation and for those who don’t have as much finance. But from a professional point of view, I would say I love fashion much more, probably by nine, because fashion gives us the tools to increase sales and I get money out of it.

[00:14:25] great! And if we use the same school, how much do you love sneakers?

[00:14:30] In that case the answer would be much higher. I’d say I love sneakers by about seven.

[00:14:40] can you tell me why in this case you say um… you call seven?

[00:14:45] it’s simple. I can wear sneakers every day. I have maybe up to five different pairs of snickers, and I can wear them depending on my mood. Sneakers give me freedom, comfort, and the ability to run if I want to. I wouldn’t be able to run fast in heels.

[00:15:13] ha ha, that’s very funny. How often do you have to run for work?

[00:15:18] A lot more often than I’d actually like to.

[00:15:28] That’s a funny answer. All right, let’s move on. Do you have a favourite trainer brand?

[00:15:36] I think so. I really like Air Max. I have about six different Air Max sneakers in my wardrobe. Some of them have become, they’re over four years old. Some of them are newer, I bought them this year in the spring. I wouldn’t say I like any particular range in the Adidas brand. I just like what they do, I like their commercials, and I like the level of social responsibility that Nike approaches their product.

[00:16:25] Andy, did I understand correctly that you like Nike’ level of social responsibility?

[00:16:32] Yes, but you don’t think that’s the only thing I like. That’s including what I like about them.

[00:16:40] Okay, thank you.

[00:16:43] Okay we brought it up. I have the next question on what aspects do you pay attention to when buying new sneakers. For example, you said this spring you bought new sneakers – what were you paying attention to?

[00:16:59] Let me think. Hmm. The last time I wanted bright coloured sneakers for me the mandatory criterion is to have laces because I don’t like sneakers without laces or with velcro — it’s not for me.

[00:17:27] Is there anything else?

[00:17:30] I think so. It’s important to me that sneakers have a big sole. Not directly huge, but not insignificant. I like a medium sole, yes. I mean the important characteristics of a trainer for me is the presence of laces, a medium sole size, and a bright colour.

[00:18:00] Okay.

[00:18:00] OK, next question. Um…tell me please, did you notice any changes in the level or quality of clothing or trainer consumption during the pandemic?

[00:18:12] Like I said, personally in my experience I felt some stress about not being able to shop freely. And again, people have started, I think, to wear more comfortable and looser clothes. It’s as if we’ve given up some real luxury and have moved on to something that we feel is comfortable and doesn’t constrain our movements. Speaking of which, it’s probably around this time, I don’t have the exact data, that the emergence of over-size clothing belongs. In particular T-shirts. People, especially teenagers, began to buy and wear monotone oversize T-shirts because it made them feel comfortable and didn’t show their bodies to the public. For some people, that might be a big deal.

[00:19:10] Is there something about hmmm… sneakers?

[00:19:15], honestly, I haven’t noticed any change in the consumption of sneakers. It seems to me for some reason that sneakers are the kind of thing in clothing that doesn’t tend to change rapidly. I mean, they exist, they’re evolving, but it’s like the pandemic hasn’t affected them in any way.

[00:19:37] OK, I see what you’re saying. My next question is. How do you think pop culture affects the consumption of street fashion? That is, how does what Generation Z perceives affect their quality of clothing and trainer consumption?

[00:19:58] You can point out here that I’m not part of that generation and it’s hard for me to step into their shoes. But I look at young people, I look at bloggers, I look at people who walk on the street, and in general I can probably say that a lot of foreign culture has emerged.

[00:20:21] Wow, that’s interesting. What do you mean, can you please elaborate on that?

[00:20:25] Yeah, I’ve started to notice more often that people have started to wear more anime and or cartoon related clothes. Yes, and a lot more of those clothes in the youth clothing category have started to appear in the shops. And I haven’t seen any sneakers associated with anime culture or any other pop culture at all in Adidas or any other sports brand shops.

[00:20:47] Yeah, that’s an interesting point.

[00:20:50] And in general terms, obviously pop culture shapes fashion. Pop culture is a culture that is popular. Accordingly, people consume it, perceive it. If a large number of people are ready to accept this pop culture, then it becomes fashionable. And fashion is what gives us money.

[00:21:15] Great!

[00:21:17] okay, would you have any experience working with street fashion clients?

[00:21:23] no, I can’t think of any such clients.

[00:21:27] okay, have you ever worked with consumer behaviour within marketing?

[00:21:34] Yes, in my work I constantly have to analyse consumer behaviour patterns in order to target deeper and increase client sales.

[00:21:42] If it’s no secret, what exactly have you been working with?

[00:21:45] well for example, it’s about the timing of visiting specific sites, clicking on a specific button on the site, choosing under the form that consumers go to the site: it could be a phone, a tablet, or a laptop.

[00:21:57] Very good, thank you!

[00:22:00] aha!

[00:22:04] What characteristics do you think consumers, especially Generation Z consumers, expect in street trainer and apparel consumption?

[00:22:12] Well, first and foremost, it’s an investment in convenience, and uniqueness. Young people want to emphasise their individuality, so they’re willing to pay more if the product we buy is unique. In that sense, customisation is a good investment. When entrepreneurs take ready-made sneakers, for example there might be Adidas sneakers, and customise them to the customer’s individual characteristics and needs.

[00:22:39] Great!

[00:22:42] One more question. Have you noticed any changes to the offline shops?

[00:23:30] If we’re talking about the role of these shops, I wouldn’t say it’s changed too much. I’m aware of that discussion. A lot of people write that retail shops are losing their appeal, giving way to online shops. I don’t think that’s the case. I think offline shops will still be around in 10, 15 or even 40 years’ time. They will have to find a balance with virtual commerce. It’s a kind of competition. Either online or offline will win here, but what I believe more is that online and offline shops can find some balance and can continue to co-exist.

[00:22:33] Great! Would you be able to name a few popular start-ups that come to your mind when we talk about streetwear in North America?

[00:22:40] It’s a complicated issue. I recently read on Instagram about Atoms – it’s an American start-up, I think New York, set up a couple of years ago, which supplies very cool trainers. You just have to go to their website and you’ll see what I mean. They’re pretty trendy and casual outdoor wear…

[00:23:15] Okay, thank you! And what do you think of their strategies?

[00:23:18] As far as I can tell, they are investing in accessibility and uniqueness. As far as accessibility is concerned, this trend from the US creates clothes that can be worn by a large number of people: they are as simple and comfy as possible at the same time. In this way, they are not restricting, but rather expanding the audience. Of course, this brings them a profit

[00:23:42] And if we’re talking about a start-up…they’re trying to create sneakers that will make young people stand out from the crowd. I mean, that’s where people are willing to pay money to emphasise their individuality. If you look at their clothes most of the time, they seem repulsive and a little weird at first glance. But if you see them in the street, you will definitely pay attention. That’s what this brand invests in, and that’s why people who buy their shoes.

[00:24:05] Very good! I have a few more questions. How do you think e-commerce has affected consumer behaviour?

[00:24:15] well I can tell you that because of the pandemic a lot of people started buying things online. Restrictions affected their lives, and they couldn’t do regular shopping in malls. So, they invested in shopping sites, online sites that delivered clothes to their homes and gave them a discount.

[00:24:34] OK, so do you think what you’ve discovered will continue in future years, that is, after the pandemic has officially ended?

[00:24:41] I think in part. The pandemic has accustomed us to shopping online and we’ve realised the benefit in doing so. It would be strange if, as soon as the pandemic ended, people would go straight to conventional shops and forget about online shopping. As I said earlier, I think online, and offline commerce will continue to exist and evolve together.

[00:25:03] And how has that affected your professional life? I mean, have you started using any new tools?

[00:25:10] yes, that’s a good question. You have to understand that I worked in marketing before the pandemic and during the pandemic. And I’m working now. We’ve always paid a lot of attention to online commerce because online commerce is not just related to the pandemic, but rather is a result of the mass digitalisation of our society. But nevertheless, COVID-19 time, we realised that we need to use more tools for online promotion, and started investing less in outdoor advertising, in billboards and so on…

[00:25:52] OK, from that comes my next question. Do you think a brand, a modern brand should invest in online commerce and spend their capital on that?

[00:26:01] Yes, I absolutely think it should. Online marketing is an effective tool to increase sales. Only the stupid don’t see that. The internet is really something that we all use, so to ignore such a large layer of opportunity that technology gives us would be illogical in terms of brand development.

[00:26:28] Very good.

[00:26:30] I just have a couple of questions left. What online branding strategies do you see as the most successful?

[00:26:39] First of all, it’s close communication with customers. Brands should learn that they should keep in close contact with the consumer on social media. It can be Instagram, TikTok, YouTube, Facebook, and any other platform. Communication can include posting, responding to comments, reacting, and answering questions. In addition, online brand promotion should show itself to be socially responsible. In this sense it is necessary to invest in supporting socially relevant issues, such as minority issues, political issues, or cultural barriers. Well, I want to point out that the brand should not delineate the audience very rigidly, for example if the founder of the brand is a Republican, they should not ignore the interests of consumers – supporters of the Democratic party. For best results a brand needs to maintain some neutrality, you can’t play up real issues, only if they’re not sensitive issues, with some humour.

[00:27:45] Very good! Is there anything else?

[00:27:50] Yes, I think the brand in terms of online development needs to stick to its own values. It needs to be consistent. If a brand is not being consistent on social media, expressing very different points of view, supporting minorities in one post, and making fun of them in another post, that’s not acceptable to the consumer. If a brand can’t understand what it is about, how can customers trust it?

[00:28:30] Right.

[00:28:33] Okay, Andy. My last question. Is there anything else, please, that we should know from you?

[00:28:41] Well yeah, I would say keep doing what you believe in and be sincere. That’s the only way you’ll be able to build a valuable brand and grow it successfully. And make sure you don’t forget to invest in advertising campaigns. It is rightly said that it is advertising that allows you to develop your brand. Don’t think that advertising, and especially social media advertising, is frivolous. It’s the only way brands can maintain their profitability, popularity, and consumer engagement.

[00:29:20] Okay, that was a very valuable point.

[00:29:25] Yeah, do what you love and then you’ll succeed.

[00:29:31] Andy, do you have any additional materials or resources that you could email me?

[00:29:40] Yes, Ashwin, I would love to share some useful materials with you. Where can I send them to you?

[00:29:49] I’ll leave my email.

[00:29:53] Okay.

[00:29:54], so thank you Andy, for conducting the interview. It was very helpful and fascinating. I wish you every success!

[00:30:02] Thank you, good luck with your research as well!

Interview Transcription Fariba Salma

[00:00:00] (Interviewer: Ashwin Madasseri Rajeev, Interviewee: Fariba Salma Alam Setting: Interview conducted via zoom call at 10 00 (EST) on 22 June 2022 Interviewee Profile: VP Digital Product Design/ E-commerce Consultant, New York, US).

[00:00:08] Hi Fariba, my name is Ashwin. Thank you for joining me today.

[00:00:18] Thanks for inviting Ashwin, happy to be part of the interview!

[00:00:26] Great! Fariba, I have to ask, would you mind if I record this interview? I need the recording as material to further transcribe the use of the interview during my dissertation project.

[00:00:45] Yeah, sure, no problem.

[00:00:52] Great. Since I started talking about my dissertation project, let me talk a little bit more about that. Let me start with myself. I trained at an international design school in India, followed by training also in Denmark and Germany – so you could say I’m getting international experience in product design. I’m currently working on my bachelor’s thesis, in which I’m trying to study the North American market. I’m talking specifically about the US and Canada, for trends that are prevalent among the younger generation. By younger generation I mean many representatives of Generation Z. Have you heard anything about that generation?

[00:01:38] Yes, Ashwin, of course I’ve heard. If I remember correctly, Generation Z are teenagers?

[00:01:37] Well, right now they really are teenagers or young adults. The point is that Generation Z is people born after 1997. Accordingly, the oldest of them is turning 25 this year. But I want to point out that in my dissertation work, I’m not looking at the entire population of this generation, but only people who are solvent. More specifically, I’m talking about people from the age of 15 to the age of 24-25.

[00:02:11] Got it, thanks for the clarification.

[00:02:17] Okay. What exactly am I researching in this market? Imagine a start-up that sells streetwear and sneakers. You can say there’s a large number of competitors in that market, very weighty competitors – you can think of examples of Adidas, or Nike. You can think of Adidas or Nike. But I think that having stiff competition in an industry market is not a barrier to creating new companies.

[00:02:49] Okay, that sounds very optimistic, ha ha.

[00:02:54] Yes, thank you. Erm…well, the point is that the start-up being developed will be based specifically on the North American market, whose target audience is specifically members of Generation Z, I stand corrected, the paying members of that generation. I’ve already done some research which shows that teenagers now have a rather unique view of what fashion is all about. Maybe you’ve heard something about that?

[00:03:31] All I can say about that is that I was once a teenager myself, ha ha. In all seriousness, I haven’t really researched teenage fashion specifically, but I guess I can say that they like bright colours.

[00:03:47], by the way, that’s one of the characteristics of this new vision. In simple terms – the essence of the new teenage vision of fashion is that they’re practising conscious consumption, collaborative consumption, and sustainability. We see this as an environmental trend. There’s data that even shows that teens may buy more expensive clothes if they’re convinced that those clothes will be more environmentally friendly

[00:03:26] That’s an interesting concept, Ashwin.

[00:03:30] Yeah, but that’s not all. The second factor in my research is the pandemic.

[00:03:39] I’m very interested to know how you connect the pandemic and teenage consumption?

[00:03:46] Yeah, that might sound a little strange, I understand. But it’s much simpler than that. I’m convinced that you know that as a result of severe physical, social, economic constraints around the world, global and national economies have been suppressed. Commerce has definitely been affected as well, as, um… at the very least, supply chains have been disrupted, jobs have been suspended or lost and classic formats of shopping have also been rendered impossible. Perhaps you’ve felt it for yourself, Fariba?

[00:04:42] Yes, definitely. I live in New York, and that’s where I spent my lockdown. So, I know what you mean. In other words, these restrictions influenced the way teenagers started to consume, right?

[00:05:07] Yeah, something like that. Um…actually the pandemic has shrunk the market for streetwear and sneakers dramatically, and studies suggest that the shrinkage, which started back in 2020 compared to 2019, will continue. When I say contraction I mean a reduction in the size of this market, i.e., its economic parameters, well for us as consumers it is primarily a reduction in choice. Tell me please Fariba, did you notice during the pandemic some… some reduction?

[00:05:58] Hmm, to answer your question, I wouldn’t be so unequivocal. I did notice the shrinkage of the streetwear and trainer market, especially sneakers, because I remember that in the spring of 2020, I wanted to buy myself a pair of white Nike sneakers. And I definitely remember that it didn’t work out because the shop was closed for pandemic reasons. I don’t know exactly what it was, did they close because all the employees were sick, did they run out of product, or was it government orders at the time? I don’t know that. Well as a consumer I really felt the cutbacks.

[00:07:01] Can you remember?

[00:07:05] Mmm…what exactly should I remember?

[00:07:12] Can you remember how you felt when you faced this cutback?

[00:07:20] Let me think… I think it was fear… It was the fear of uncertainty and the unpredictability of the future. I remember seeing this Nike shop closed and realising that I don’t know when it will open. I don’t know when the whole world will open up like before…

[00:08:02] That doesn’t sound very reassuring. …

[00:08:07] Yes, that’s what it was at the time. Well as we realised everything opened up very relatively quickly. And the shutdown of the Nike shop and the state border and the supply chain was also quickly established… I mean the pandemic taught me a lesson that you have to be prepared for anything, but in the end everything will always be fine. By the way, it helps me even now when we are seeing huge, rampant inflation in our markets, I think, in all markets of the world. You just have to understand that it will pass…

[00:08:59] That sounds like very good advice. Okay thank you. So, I think we can get to the main points of our interview. Do you understand the general concept of my thesis work yet?

[00:09:17] Mx…. I understand you’re studying the impact of the pandemic on the market… on the North American streetwear and trainer consumption market?

[00:09:31] Yes, but particularly on the target audience of teenagers, solvent teens, ages 15 to 24.

[00:09:48] Yeah right, okay.

[00:09:52] Fariba, can you name what position you’re currently in with your current company?

[00:10:06] Right now I’m working at my company, which is just e-commerce consulting.

[00:10:19] Okay, so my first question is, what is fashion to you?

[00:10:27] Do you mean fashion as a phenomenon?

[00:10:33] Yes exactly…

[00:10:37] OK, for me, fashion… umm… fashion should be called a social phenomenon that is formed in relation to the tastes and preferences that prevail in it. I clearly distinguish between fashion and style and believe that fashion is an accepted phenomenon and dictates the basis of what people incorporate into their own style.

[00:11:42] That’s a very interesting concept. I understand you’re making a direct association between fashion and society, right?

[00:10:52] Yes, absolutely. One cannot exist without the other, society creates fashion, which creates society.

[00:11:02] Well said. Okay if I asked you to rate on a ten-point scale your love of fashion in general and sneakers what would you name?

[00:11:13] On a scale of ten… I think… I think eight.

[00:11:28] Can you um… tell me why an eight?

[00:11:38] I love fashion. I often flip through fashion magazines, or study themed publications on Instagram. I love to see how celebrities dress for all sorts of gigs including the Met Gala. I find it appealing. Well also you said about sneakers – show me one person in the world who doesn’t like sneakers, ha ha…

[00:12:11] Fair enough. Okay, our next question is about pandemics. What do you think about changes in consumer behaviour during a pandemic? Maybe you’ve noticed some patterns in that change?

[00:12:37] I can say that… I guess I’ll put it another way. I think the pandemic has significantly lowered the bar for many people who are interested in fashion and streetwear

[00:12:52] Fariba, what do you mean when you say the pandemic has lowered the bar?

(Then Fariba’s phone rang, and we briefly interrupted)

[00:14:39] Sorry…. I think because people have started spending more time at home and less time on some social activities… Well for obvious reasons, we’ve all been shut down at home, I think because of those people… People have started spending less time on what they’re wearing. For example, if I realise that I will be at home all day and I will have Zoom calls, I generally don’t have to wear a suit or look the way I might look in the office… I can look the way I am comfortable in my home while still maintaining my work functions

[00:15:52] Yeah now I see what you’re talking about. OK is there anything else?

[00:16:03] I guess all to say is that people’s style has become more relaxed and simple because of the pandemic. I noticed that it was during the pandemic that street fashion became particularly popular… You know that sporty style of clothing… Relaxed hoodies, wide sweatpants, hats… The kind of style that’s just comfortable.

[00:16:34] I think sneakers have gained even more popularity because it’s one of the most comfortable types of footwear… Yes, I can say that it was comfort that was the defining factor for the development of street fashion during the pandemic. At least I definitely felt that at my level.

[00:16:58] Okay, Fariba, I need exactly what you felt at your level… Ha ha. That’s really valuable.

[00:17:08] Ok if you think about it… because people were more at home, local brands that create unique products, clothes, shoes or any assortment… we understand that multinational companies were cut off from the global economy and couldn’t get away with making functional supplies in time… so people refused, they didn’t want to take the risk. And when you have a shop at hand which sells locally made clothes from a local designer… I think, of course, you will look in that direction

[00:17:56] Yes, I agree with you.

[00:18:00] By the way I remembered, you also talked about co-consumption – I read that somewhere too. During the pandemic, second hand goods became popular. It’s not only ecologically sound, but also economically viable. The fact is that during the pandemic, serious damage was done to the workforce. As we know, many people lost their jobs or were left in limbo. Remember that Nike shop. Did those employees get paid during the downtime? I don’t know the answer, but I do know that there were examples where employees were sent on leave and given minimum subsistence money. With limited budgets, people of course tried to find cheaper means to buy clothes. Second-hand has become the solution. You can come and choose any clothes you like, yes, they won’t be new, but they will be clean, and time tested, ha ha… And besides, you pay less money for those clothes. I think all the teams have become very popular and it’s understandable why

[00:19:11] Okay next question. My…um…what e-commerce trends have you noticed in your region in terms of trainer fashion or streetwear? Can you answer that question both in general and in the post-pandemic phase…that is, I mean at the current moment…

[00:19:33] I can tell you that relative to commerce, trainer brands and streetwear brands are increasingly resorting to… advertising their products through popular social media. If we’re talking about street commerce targeting young people in general, then of course it makes sense for them to use those platforms that are popular among young people, among teenagers… I think you can give me some examples of that yourself.

[00:19:59] Yeah, sure, ha ha. I thought you were talking about Instagram, or TikTok?

[00:20:06] Yes, I was. Those are the platforms that are showing huge growth… If you remember, TikTok really exploded during the pandemic and became mega-popular… Then that popularity fell a little bit, but nevertheless the audience of that platform has grown very dramatically compared to what it was before the pandemic. Obviously, companies, be it big brands or some local companies, will use these platforms in order to gain more popularity, attract influencers who run fashion blogs, and in general be recognizable among teenagers.

[00:20:59] OK, next question. What is the main benefit of an e-commerce strategy for start-ups? Here’s the start-up company that I told you about at the beginning of the interview… What’s the benefit of using e-commerce for it?

[00:21:21] The benefits are… that e-commerce helps reach more potential customers. Especially since the coronavirus pandemic, social media has gained a significant role in the world of commerce, fashion and the overall market. Moreover, it requires less financial cost to the company.

[00:22:01] Okay, and if we’re talking about opportunities to use commerce to accelerate profits, what can you say?

[00:22:21] mmm… To accelerate a company’s profits, it’s worth paying attention to advertising using not just targeting ads, but also attracting influencers. At the moment there are a lot of bloggers who have a large audience who will listen to them, and their choices.

[00:22:48] Great. If a company has $100,000 in capital to launch a trainer brand, how do you think the brand should spend it?

[00:23:04] I think about a third of that budget should go to advertising… Advertising is very important. It’s also important to do market research… It’s a very broad topic because market research includes your audience analysis, competitive analysis, budget planning, and so on. Mmm… If we say that this budget is entirely used for e-commerce only, i.e., we don’t specify salary expenses for design and production, then I think that the main thing here would be to develop a marketing strategy.

[00:24:09] And if that budget includes design, advertising, and established production, which do you think is most important in the early stages?

[00:24:25] It’s a tough question… It’s all important for a successful brand. But if we’re talking about the initial stages, and we don’t generally care about what happens next, I think more of the money should be devoted to advertising.

[00:24:52] Okay, my next question is how do you think a brand should position itself in the North American market based on a thrifty e-commerce strategy?

[00:25:10] You started off by saying something about environmental responsibility and collaborative consumption and so on – if you’re putting that as your brand values, meaning you want to attract an audience of young people who respect nature and are trying to help in every way, in which case you need to show that your brand is doing that. With a thrifty e-commerce context, be as transparent as possible to your audience, use only the resources you need, and report on it – the audience wants to know why you’re cool, ha-ha

[00:25:52] Great! What threats and disadvantages should I look out for when launching my brand? I mean threats specifically from an e-commerce perspective?

[00:26:12] Make sure to take care of the supply chain. It’s critical. We see the talent of Tim Cook who has created a great system, a well-established supply chain system for Apple. Try to achieve that. Read more about differentiated supply chains and supply chain strategies and management, because in an online shop the supply chain decides up to 90% of everything. If you’ve got a great design, great sales, and you’re very successful, but you can’t deliver to your customers on time or the goods come broken, that’s obviously a serious failure.

[00:27:11] Okay I get that. What’s the difference between brands starting out on Amazon’s marketplace and any other independent marketplace?

[00:27:28] Amazon gives you some protection, as a start-up you can feel under the parental protection of a big company. It gives you some security in life and maybe a more confident progression… However, when you are an independent start-up, things are much more complicated.

[00:27:53] Might that sound like advice to start a start-up specifically on Amazon?

[00:28:02] I wouldn’t give advice. It’s all individual. Everyone chooses what they want…

[00:28:11] Okay, and can you give some good examples of start-ups that have been able to tap the North American market, I mean streetwear start-ups?

[00:28:28] Yes, that’s a great question. Have you heard of the start-up Sneaker Town? Check out the website, I’m not sure if they do anything clothing related, but they sell some awesome trainers. I can’t remember if they have their own brand, but they definitely sell name brand trainers…like Adidas, Reebok, Nike…Oh, they also have a box you can order, but you don’t know what’s in there! That’s cool.

[00:29:00] Okay thank you very much, I will definitely look up for them. Do you notice any difference in the changing role of physical shops over that time?

[00:29:17] I’ve heard the popular opinion that the physical shop is dying… I can’t agree with that. I think the market is just undergoing an evolution… I mean we see humans and monkeys coexist together now even though they were once a single organism, I think with physical shops and marketplaces in a virtual environment the same thing is happening now, they are competing, but they will live on together

[00:29:52] That’s a very good analogy. Do you think the changes related to e-commerce and consumer behaviour will remain after the pandemic is over?

[00:30:04] I’m convinced that yes. It’s not something that was immediate. Those changes will definitely remain and will continue to exist with us going forward. Simply because they’re already deeply embedded in our consumer behaviour, have formed comfortable, systematic patterns, so they can become our traditions.

[00:30:41] Have you noticed any of these changes in your work?

[00:30:50] Let me think… That yes, because during the pandemic we, I think like all e-commerce agencies, realised how important it is to invest in the online environment. We are now seeing a huge number of different online tools popping up, all kinds, from meta-universes to NFTs… I think it’s extremely… it’s extremely important in your work as a professional to be able to anticipate these kinds of things and be able to adapt quickly to them

[00:31:41] Okay if you have any other information that you would like to share with us?

[00:31:52] I guess not…

[00:31:58] Fariba, can you send me any material, any resources that might be related to the topic of my dissertation work. I think you’ve already figured out what it’s about, ha-ha.

[00:31:11] Yeah, sure, Ashwin, I’ll send you some resources via email. Thanks for inviting me to your interview, it was my pleasure to participate in this

[00:31:23] Thank you for coming as well. Have a great day!

Interview Transcription Hussain Almossawi

[00:00:00] (Interviewer: Ashwin Madasseri Rajeev, Interviewee: Hussain Almossawi Setting: Interview conducted via zoom call at 18 00 (EST) on 18 June 2022 Interviewee Profile: Designer + Creative Director / Author of The Innovator’s Handbook / Nike, Adidas, Apple, Ford, Amazon, New York City, US)

[00:00:00] Hi, Hussain. My name is Ashwin and I’m doing my dissertation research on product design. First of all, let me say thank you for agreeing to take part in this interview. If you don’t mind, I’ll record it. It will make an extremely useful contribution to my research work and give me a better understanding of the market. First, I’d like to know how your day is going.

[00:00:30] Hi Aswin! Yes, that’s fine with me. Thank you for the question. It’s all good. Thank you for inviting me to participate in your interview. It’s very important and valuable to me. I remember being a student myself at the University of Illinois, where we were actively involved in project activities. So, this kind of interview was our frequent practice. For that reason, I’d love to help you.

[00:01:02] Great Hussain, thank you very much. So, just to get you up to speed and to brief you on what um… we’re going to be talking about today, I want to tell you a little bit about myself. Erm…as you already know, my name is Ashwin, I’m studying for a business management course. So far, I’ve studied in India, DSK International School of Design, and um…, and I’ve also studied in Germany and Denmark. In other words, I have an international background in product design, so my goals are also, you could say, global, ha-ha!

[00:01:48] Great, keep going!

[00:01:54] Yes thank you. As part of my current studies, I’m doing a dissertation project for which I need to study market trends among today’s younger generation. By younger generation I mean generation Z proper. We know that people born after 1997 belong to this generation, which means the oldest members of this generation are now around 24-25 years old. But I’m not looking at the whole sample of Generation Z, I’m looking only at solvent teenagers who can make a decision to buy street clothes and sneakers on their own.

[00:02:43] Ashwin, sorry to interrupt, why did you choose to focus on this particular sample? In my normal practice I work for the general consumer and don’t focus on specific audience groups.

[00:03:04] Hussain, thanks for the question. The motivation for my research is actually existing data about how the younger generation is changing their perception of fashion. One of the predictors of this change is the pandemic, ha ha. Yes, the pandemic has indeed had a significant impact on how people, especially teenagers, perceive fashion. What it means to them and what they think it should be.

[00:03:36] Okay, now I get it. I’m sorry, carry on.

[00:03:42] The ultimate goal of my project is to create a start-up in the North American market, the essence of which is to create and sell streetwear items and sneakers. Our target audience as you’ve already realised is the younger generation of teenagers – accordingly, how much and how deeply we can study their consumer behaviour patterns depends on how much we can understand the market as a whole and achieve commercial success in the future.

[00:04:14] Yeah, you have a very valid goal.

[00:04:20] Thank you. One of the behaviours of today’s consumer is in conscious consumption and sustainability. Mmm…in other words young consumers are willing to choose more expensive clothes and sneakers if they’re convinced that it’s good for the environment. In addition, the fact that clothing and sneakers create uniqueness for the perceived personal image should not be dismissed. That is, young consumers are also willing to invest in clothing items that will make them stand out from the crowd. In this sense, increased attention should be paid… to focus specifically on streetwear because clothing and sneakers characterise the attributes of modern culture and consumer behaviour.

[00:05:13] Our start-up is going to start next year, which is 2023 and develop in the North American market until at least 2027. So, we have four years to develop our brand in order for it to show commercial success and gain consumer confidence. As you must be well aware, current fashion is particularly affected by pandemics. Although the main effects of the pandemic seem to be over, serious restrictive measures and masking have been lifted in most countries around the world, echoes of the coronavirus continue to influence the way consumers, especially younger consumers, perceive fashion on a daily basis. Thus, as one of… as one of the postulates of my research, I suggested that the pandemic continues to influence fashion now and, in the future, so it is necessary to appreciate the nature of this influence as deeply as possible, to learn some lessons from it, and to predict developments for the future. In short, so as not to bore you further, I will say that the main purpose of my research is to identify some of the most innovative strategies that help fashion start-ups succeed in the North American market.

[00:06:54] Great, I got a little lost in the middle, but thanks to your last sentence I figured it out, ha.

[00:07:06] Great, is there anything you don’t understand right now?

[00:07:14] No, I think it’s pretty obvious to me right now.

[00:07:20] Okay then let’s move on to the main questions of my interview.

[00:07:27] Hussain, I invited you in for an interview because you’re a landmark expert and professional designer working with big companies. On your LinkedIn profile it says that you’ve collaborated with Adidas, Nike, and Apple. If you… If I ask you to summarise, can you tell me what you’ve been doing in…. your workplace?

[00:08:03] That’s a tough question… In simple terms, I try to create an industrial product design that’s highly innovative, but also simple to consume and enjoyable to experience. I did work with the companies you mentioned, in fact there were many more, and in each of them I worked on a specific application, like shoe design, device design, app design, or many others. Now I’m working in my studio in New York and continuing to do industrial design.

[00:08:41] Great! Okay Hussain, please tell me, what is fashion to you?

[00:08:49] Ashwin, that’s another tough question, ha. Fashion to me is a huge field for revealing oneself through clothes, shoes, or accessories. I absolutely acknowledge that everyone wants to express themselves in different ways, all of us have that right. We as designers act as helpers in that very expression of self through our vision.

[00:09:14] That’s a great mmm… answer thank you very much. And if you try to describe fashion with adjectives, what would those adjectives be?

[00:09:24] Hmm… let me think… I think expressive, impulsive, and fickle…

[00:09:51] Great words, moving on. If I asked you to rate how much you like fashion from 1 to 10, mmm…then what would you say?

[00:10:08] If I were to rate my love of fashion from 1 to 10, I’d give it nine.

[00:10:15] Hussain, thank you for your answer. Will you tell me why you gave it a nine, why not a 10?

[00:10:28] I knew you were going to ask me that. I took one off because, frankly, I don’t keep up with all the new things in the fashion world. After all, fashion is a whole culture, and although I am a creator in it, as well as an observer I lose out. I definitely love the history of fashion, I love how an entire culture has evolved through time, I’ve read fashion in the ancient world, in the Middle Ages, and the vision of fashion of the future many times. I find it really fascinating and amazing. In today’s world we see a huge variety of styles and styles mixed together, and that variety creates a huge number of options for people to like. I’m convinced that you can tell by a person’s favourite designer whether that person has taste, ha-ha, and even get a feel for their character. Speaking about myself, for me the icon in the fashion world is probably McQueen. I can’t say I’ve learned much from him, but his épatage and out-of-the-box thinking when creating a product inspires me.

[00:12:01] Great, informative answer. I like the designer McQueen too. Okay next question, if you had to rate your love of sneakers on the same scale what would you pick?

[00:12:20] Mmm. If we’re talking about sneakers, I’d pick a score of 10. I adore sneakers for their comfort and the variety of shapes and styles to suit all tastes. Today I’m in the mood to wear white sneakers, tomorrow I want to wear black, the day after tomorrow it will be okay for me to wear bright yellow. I will be comfortable in all of them – the difference will be not only in colour, but also in how I perceive myself in a particular shoe. Sneakers in my opinion are the most interesting shoes in terms of creation and have a huge field for the craziest ideas.

[00:12:01] Thank you, I agree with you!

[00:12:10] Okay Hussain, my next question will be about your favourite brand. In fact, do you have a favourite trainer brand?

[00:12:21] Yes Ashwin, I love Nike.

[00:12:24] Can you tell me more about what it is you like about Jordans?

[00:12:30] I chose them as a favourite for a reason. First of all, you can find practically everything to the kind of fantastic models that blow your mind. Ha ha. Secondly, for me, this is the most comfortable sneaker in the world. Of course, I have worn other brands including Adidas and Puma, but the most comfortable for me are still…Jordans. And thirdly, I’m convinced that fashion has to go with comfort and the Jordans brand is a prime example of that.

[00:13:10] Okay, now I see why you love Jordan so much. Ha ha.

[00:13:18] And a little bit more about sneakers. When was the last time you bought your last pair of sneakers?

[00:13:28] Let me remember……… It must have been earlier this year – that’s when I actually bought my own sneakers.

[00:13:41] Let me guess, they were Jordan?

[00:13:47] Yes Ashwin, you’re very perceptive, ha-ha (smiles)

[00:13:56] Great. During your last purchase, what aspects did you pay attention to when choosing your sneakers?

[00:14:09] As I said earlier, the primary factor in footwear for me is comfort. It’s the most important point I pay attention to. Once a shoe is comfortable for me, I will already choose a particular colour, style, shape. I have no other universal rule when choosing sneakers – only comfort comes first. However, I can say additionally that I like some extravagance in everything, so I rarely buy monotonous models, but I prefer bright, multi-coloured, textured models to them.

[00:14:48] Great, thank you. Now we move on to the second block of our interview, which is about the impact of the pandemic. Um… According to PWC, the pandemic has had a negative impact on the streetwear and trainer market, reducing its size. The reasons for this contraction are obvious – falling demand, broken supply chains, physical social constraints on consumers. And do you think demand in the North American streetwear market will continue to shrink?

[00:15:36] To be honest, I haven’t noticed any prolonged contraction. Indeed, in the early months of the pandemic, the number of items on shop shelves was significantly lower. But that seems natural to me in the face of such…Um…tough times. However, a little less than two years have passed, and we can see that shops in general are once again as well stocked as they were in the pre-pandemic era. As for statistics, I can’t tell you specific figures, I just don’t have them. Well, I guess since the pandemic has had such a serious impact on the size of the street… on the size of the streetwear market, the numbers will still show some decline.

[00:16:21] Okay, so how have you felt the impact of the pandemic? I mean how has the pandemic affected your consumer behaviour.

[00:16:36] That’s another tough question. It’s probably ambiguous. On the one hand, I was really deprived of a lot of opportunities for regular, classic shopping, because the malls were closed, or operated very limitedly. On the other hand, having to sit at home and invest in myself allowed me to pay more attention to myself and gain a deeper understanding of my personality structure. It’s been a very smart investment, in how much I now pay attention to what I buy and what I wear. You could say that because of the pandemic I’ve become wiser, ha ha.

[00:17:10] Okay, next question. Hussain, what do you think about the change in consumer behaviour during the pandemic?

[00:17:18] Personally, I’ve noticed that during the pandemic the demand for clothing has dropped, but in my opinion, consumers have become more interested in style and fashion in general. Whereas before a lot of people didn’t even think about what interesting things they could add to their image, in a period of being forced to stay at home and using more social media, people have a desire to look at clothes in a new way.

[00:17:49] That’s interesting.

[00:17:52] Yeah. So, streetwear and trainer makers actually had more freedom after the pandemic. Freedom to express their creativity and themselves as designers. Because people want to get a show, and the designer makers are the purveyors of that show.

[00:18:20] Great, right answer, ha ha. All right, Hussain, moving on. What do you think… That’s not more accurate. You create cool products that inspire thousands of people around the world. Can you tell us what are the key factors influencing streetwear and trainer design strategies in the North American market?

[00:18:45] Mmm…. OK. I think our streetwear and sneakers design strategy are primarily influenced by the audience. It’s well known that… That fashion tends to be cyclical. That’s why we are now seeing, in a sense, a return of fashion from the end of the last century, namely the eighties and nineties. Obviously, if we just bring back the old clothes and sneakers as they used to be, that’s not going to impress anyone. It’s a bygone phase. In other words, the old design won’t interest a customer today, unless it’s a collector of old things. What products need something new to be added, for example some futuristic elements. Combining an old design with a new one always attracts and appeals to consumers. So, the answer to your question is you have to target your key audience and understand what’s going to appeal to them.

[00:19:52] Great answer and I totally agree with you. Thank you Hussain. My next question is about the influence of pop culture. Specifically, could you tell me how pop culture affects the trainer industry and street fashion in the North American market. Maybe you’ve noticed that pop culture influences your own design decisions?

[00:20:21], I think this question repeats… Partially repeats the previous question. Well okay. I would say that the influence of pop culture on style and fashion, especially street fashion, which is accessible and widely consumed, has always been huge. If we talk about the present time, today you can see all the general consumption in the media space of computer graphics. Computer graphics reminds me of a kind of Neo-futurism, a desire to embrace something high-tech and innovative… In design it is manifested in an abundance of textures in clothing, where elements of leather or just a variety of inserts of bright colours… well… i like embroidery. Well even without that futurism can be achieved with a variety of clothing accessories or even on the body. For example, it can be intricate and irregular shapes of shoes, accessories and clothing – a major hallmark of future fashion we can now see this from many clothing and footwear designers, of which West with his futuristic sneakers is probably the iconic

[00:21:40] Yeah, I know exactly what you’re talking about. My next question (not really many questions left) is about examples of some of the start-ups in the North American market. Can you name some successful start-ups that have been able to tap into that market?

[00:22:05] Ashwin, you mean sneaker streetwear start-ups?

[00:22:11] Yes, exactly.

[00:22:14] I’m afraid I can’t tell you specific brands. I do know about KOIO, though. They have very cool sales, and their website has a minimalist style. And the funny thing is that they are made in Italy, even though they are an American brand. And in order for a sneaker streetwear brand to become commercially successful in this market and gain consumer trust, it needs to have good visual content on social media. This is my personal opinion. That is, I first of all pay attention to those brands that have a good Instagram layout. Such brands know how to sell even an ordinary product very well, because they know how to sell it very attractively. So even the most conservative customer will find something here for themselves, simply because it will touch their attention… Oh, and I remember PSEUDO, they also have a fancy website and unique design, but I can’t say anything more about them.

[00:23:11] Well I understand what you’re saying.

[00:23:20] Yeah, I can also tell you that such a start-up needs to have very bold ideas. For example, an element of computer graphics emphasizes extreme shapes and colours. The strategy is to present your product not just directly to the consumer with some story and some visual content – that’s the only way for a brand to become really successful, even if there are strong giants on the market. I’ve learned myself that in this day and age it’s not enough just to be able to make good clothes and produce shoes because it’s important for the consumer to look at the product and there has to be a strong emphasis on that in terms of promoting your product.

[00:24:09] Okay the next question is how e-commerce might have affected consumer behaviour. I mean how exactly has the advent of online shopping, especially in a pandemic environment, changed the patterns of consumer behaviour?

[00:24:30] Ashwin, that’s a good question that touches on quite a few additional topics. First of all, we have to say that the advent of e-commerce has enhanced the consumer’s ability to purchase goods. We no longer have the need to go to a shop… to a physical shop and purchase goods directly on the spot, we can do it from the comfort of our homes. Mix that with the fact that we’ve been sitting at home a lot because of the pandemic, and here we have a great opportunity for the development of online shopping. Obviously, e-commerce development will continue, and it won’t stop once the pandemic wears off. Some consumers will probably return to offline shops and continue to buy goods there, with customers trained in the new behaviour understanding and probably already understanding the appeal of virtual shopping and therefore continuing to do so. I can’t say that for me the pandemic has created some kind of unambiguity, rather it has created opportunities that customers can take advantage of. In the context of market development, I can also say that a new model of the relationship between producer and customer has emerged, whereas before it was B2B or B2C, now it is D2C, when there is no intermediary between producer and customer. During the pandemic, this was particularly relevant, as many suppliers were isolated or limited in their possibilities, and therefore the producers had to deliver directly to their customers. It is also worth mentioning that the pandemic and e-commerce have influenced the emergence of new shopping formats and the development of formats in which the customer wants to see the product not only as a picture, but also as it looks in real life. This can be done through a video link with a sales consultant or through an alternate reality… either way the customer gets an enhanced experience to explore the product.

[00:26:59] Great Hussain, that’s a very broad answer. And very informative. My next question is what are the main threats you see for a start-up for selling sneakers in the industry market?

[00:27:21] Probably like for all start-up businesses mostly is strong competition. The presence of strong giants in the streetwear market, which include Adidas and Nike, puts significant pressure on new businesses both mentally and physically, so some barriers to entry are created. In addition, consumers’ demands and desires are growing. Why would a consumer buy shoes from a brand he does not know when he can buy the same shoes from a trusted Adidas? I think this is the main question that any consumer faces when he sees a new brand; for this reason, a start-up must be able to gain the trust of the customer. The most important question is how to gain that trust, and what does a start-up need to do to do that. This is not only the topic of your dissertation, but probably the fundamental question of the modern market.

[00:28:27] Can you offer at least one option?

[00:28:35] Do you have an option on how to make a successful start-up?

[00:28:41] Yes exactly that.

[00:28:43] Well the only thing I can say right now is to create a product that makes the customer unique.

[00:28:52] Great, good reference. Hussain, I just have a few questions left. So, we next question how do you think the role of physical shops has changed during the pandemic?

[00:29:13] I would say the role of physical shops has diminished a lot. E-commerce is still gaining momentum, even virtual fitting of clothes and shoes is emerging, you may have heard about that. I can say that physical shops are losing ground to the online market. But there’s still a lot of people who prefer to try on clothes in offline shops, so it’s too early to say that they’re useless and there’s a global shift to electronic format.

[00:29:51] Okay I see what you’re saying thank you. Our next question is about money, ha ha ha. Do you think if a company has $100,000 as capit… as capital to launch a trainer brand, what’s the best way to spend the money?

[00:30:20] That’s another tough question, I’m not an economist, ha. I can say that probably most of this budget should go to design, because that’s the main criterion many consumers have when buying. Not to forget the advertising… probably… advertising is incredibly important in today’s world, so don’t skimp on it. So, the two main criteria for a start-up with that kind of capital should be advertising and design.

[00:30:49] Okay. Is there anything else you’d like to add to our interview?

[00:31:01] I don’t think I have anything else to add. All your questions are answered and…. well I guess I can say create a design that you like first and invest good money in advertising, then the product will definitely pay off.

[00:31:28] Great advice thanks Hussain! Do you have any useful links to resources that would be relevant for research work?

[00:31:38] Yes Ashwin, I’d be happy to drop you some useful links in an email. Thank you very much for inviting me for the interview and good luck with your research project.

Interview Transcription Eliya J.

[00:00:00] (Interviewer: Ashwin Madasseri Rajeev, Interviewee: Eliya J. Setting: Interview conducted via zoom call at 11 00 (EST) on 14 June 2022 Interviewee Profile: Assistant footwear designer, Adidas, Miami, USA)

[00:00:00] Hi, I think we can begin. My name is Ashwin, thank you very much Eliya for agreeing to give me this interview. Will you let me record this interview?

[00:00:12] No problem, I really love talking to people. Especially if it makes sense.

[00:00:23] Great, my interview hmmm. just makes sense. I’m doing research that identifies trends in the streetwear market in North America. But first, let me tell you a little bit about myself. I have a product design background and have studied in several countries. In particular, erm… I studied in India at the DSK International School of Design, and when I studied in Denmark and Germany. Now I’m working on my dissertation, which I’m interviewing you for, and I want to do a degree in product design.

[00:01:10] Great, really great to hear that!

[00:01:17] Yes thank you.

[00:01:20] So as part of this thesis, I want to create a company that’s based in a market in North America that designs and sells streetwear and sneakers. The main audience of my start-up is the younger generation, in particular teenagers from Generation Z. I want to stress right away that I chose this generation because they are young people who are just developing, have some kind of vision of what fashion is all about, and are also capable of shaping the fashion of the future. Also, studies show that it’s the young representatives who have been influenced by the pandemic and have reorganised what fashion is.

[00:02:11] Great, I roughly understand what you’re talking about.

[00:02:17] Okay, as I said the pandemic has had a major impact on consumer behaviour. In particular, it’s pointed out that there’s been a paradigm shift which is particularly relevant to the fashion industry. More specifically, many of today’s consumers have become more conscious and willing to make more environmentally friendly purchases.

[00:03:58] I’m not quite sure what you mean yet, can you elaborate a little bit more?

[00:04:04] Yeah sorry. The point is that today’s teenagers have become focused on sustainability and special consumption. They’re not ready for fast fashion and the constant acquisition of new products, but instead they’re ready to consider a culture of collaborative consumption and the secondary market.

[00:04:30] Yeah, I see that now.

[00:04:38] Not only that has changed though, the idea of what fashion is and what it should be for today’s teenagers has also changed. There’s a particular focus on streetwear and sneakers in this context. With that in mind, I decided to create a thesis that would explore these trends in the marketplace and understand what strategies a modern start-up should use to gain credibility among teens.

[00:05:30] In other words, how do you make sneakers and clothes that will be popular among Generation Z?

[00:05:45] Yes, that’s right Eliya! You understand me perfectly.

[00:05:52] Perfect!

[00:05:55] I’ll tell you a little bit more about my start-up. I hope it doesn’t bore you too much.

[00:06:05] No, it won’t!

[00:06:10] Great. Let’s say the start-up is scheduled to launch in 2023 in the U.S. North American market, and it’s going to operate uhmm… at least until 2027. So, we have four years in which the brand has to gain consumer trust, become successful, increase sales, and get some valuable name in the industry market.

[00:06:34] Yeah, looks like a pretty workable goal.

[00:06:40] Yeah. The particular problem with all of this is that contemporary street fashion is not just fashion, it’s not just clothes or shoes, but some kind of both material culture and social values that consumers put into it. However, what exactly these values are and how they are formed remains to be seen

[00:07:15] Hmmm…Except for the focus on e-commerce. It is recognised that online commerce is the engine of commercial progress… Hmmm…That’s why online promotion and digital marketing should be used to gain the attention of consumers.

[00:07:50] Yes, I agree with you!

[00:07:58] Finally I should add that statistically speaking, the COVID-19 pandemic has significantly impacted this market.

[00:08:14] And what kind of impact are we talking about exactly?

[00:08:20] It’s good that you asked that. According to the data, the size of the industry market declined significantly in 2020 and continued to decline in 2021. The decline is expected to continue. In that regard, I have a first question for you, have you felt in your personal experience any contraction related to this?

[00:08:49] Well, I definitely noticed that there were fewer clothes in the shops, and they became more expensive. But that was in the first few months of the lockdown. Then when the supply chain stabilised a little bit, it seems to have basically become the same as it was before. Actually, I’ve read that we get used to the new realities pretty quickly and it’s hard for me to remember how it was before the pandemic, especially in the context of shopping. That said, I’ve adapted quite well to what’s called shopping during the pandemic.

[00:09:26] What do you mean by shopping during a pandemic?

[00:09:33] Ha ha. I mean shopping during serious restrictions. I think Ashwin you’ve noticed that yourself. We started buying less stuff offline, just because malls were suspended or just restricted. Apparently, they were all willing to wear masks on their faces – and you couldn’t get into the mall without a mask. Does that seem like discrimination to you? It probably was. Thank God we’ve moved on from that. Well, it made us realise that shopping malls cannot be forever, so we have to look for new ways to buy goods. For example, online sales. I think that during the pandemic, online shopping has become particularly popular because it’s safe, often cheaper, and there’s more choice. I’m no longer restricted to specific shopping malls, if I want, I can buy goods from Europe, the US, Canada, or China.

[00:10:59] Great! That seems like a serious advantage of online shopping!

[00:11:12] Yeah, you’re absolutely right, Ashwin.

[00:11:20] Okay thank you very much for your words. Now let me ask some basic questions from the interview.

[00:11:31] Yes, of course!

[00:11:38] What’s your role as an assistant shoe designer at Adidas?

[00:11:49] In my current position, I’m really an assistant, which means I assist the key designer. We work together on the key elements of the shoe, think about how to make it more appealing and increase sales.

[00:12:16] Am I correct in assuming that uh…when I look at shoes in the Adidas shop, uhm…I see your designs?

[00:12:38] Yes and no. I’m not the only assistant designer in the company, so you can see my shoes, too.

[00:12:59] That sounds interesting!

[00:13:02] Yeah!

[00:13:05] Okay, what is fashion to you?

[00:13:10] Well first of all it’s something you could wear comfortably. Fashion is about being stylish, and casual. I would say fashion is about keeping up with the times.

[00:13:30] So each era has its own fashion?

[00:13:35] Yeah, you’re absolutely right.

[00:13:40] Okay what words would you use to describe fashion? Perhaps you could pick an adjective?

[00:13:56] That’s a tough question. I would say that fashion is fast-paced, dynamic, and fast-paced. Fashion is vivid, and usually not perceived by very many people in the beginning, but over time it becomes popular. Fashion is not always understood by us.

[00:14:18] Okay, and can you tell me from what you said that fashion is cyclical?

[00:14:29] Yes, fashion is definitely cyclical. But at the same time, fashion is constantly changing. I would compare fashion to a spiral. In certain places, fashion does repeat what has gone before, for example it is now fashionable to wear bright colours – this was also fashionable in the early noughties. That said, each such turn of the spiral gives us some kind of new fashion transformation. In other words, you can’t say that fashion is just repeating what it used to be, fashion is constantly changing, but it also maintains a certain cyclicality.

[00:15:34] Great. That’s a very good example. Next question, on a scale of 1 to 10, where 10 is the strongest, how much do you love fashion?

[00:15:51] Oh I would definitely say I love fashion on a 10.

[00:16:00] Wow, uhm…why such a high score?

[00:16:04] I just love to stand out from other people. And fashion helps me do that. I can buy really bright sneakers or a really bright hoodie, which is trendy right now. I’ll feel more confident when I’m out in public.

[00:16:25] Great. And on a scale of 1 to 10, how much do you like sneakers?

[00:16:34] I love sneakers and I always wear them.

[00:16:39] So…mm… some kind of score?

[00:16:40] 10 out of 10.

[00:16:46] I saw on your LinkedIn profile that you like hmmm… basketball. Am I correct in assuming that you wear sneakers not only during sports, well during everyday Um…wear?

[00:17:08] Ha ha, you’re absolutely right. I really love basketball. But I don’t wear sneakers just for basketball, although I adore my basketball sneakers. I wear sneakers every day because I see the point of it.

[00:17:23] Uhm. Sorry for asking, what’s the point of wearing sneakers for you?

[00:17:39] It’s very comfortable.

[00:17:30] Got it.

[00:17:37] What kind of shoes can you wear besides sneakers?

[00:17:47] It’s rare, but sometimes I wear heavy militaristic shoes, or light sandals if I’m going to the beach.

[00:18:05] Cool!

[00:18:10] Yeah, ha ha (smiles).

[00:18:15] Great next question… When do you buy sneakers, or rather, when was the last time you bought sneakers?

[00:18:40] Oh, it was recently. Probably within the last three months.

[00:18:59] Okay and what characteristics of sneakers have you been paying attention to?

[00:19:13] Mmmm… Last time I was wearing light-coloured and went with any outfit. I mean I wasn’t looking to stand out with sneakers, I wanted the sneakers to be a complement to my clothes. But the last time, that is, the penultimate time, I had on the contrary, very bright big, bulky sneakers. I specifically wanted the sneakers to be the centrepiece of my outfit, and add a kind of umm… cyberpunk?

[00:19:52] Wow! Can you describe them?

[00:20:00] Yeah, they were Adidas, black, pink, big soles.

[00:20:08] Sounds cool.

[00:20:10] Yeah.

[00:20:18], in other words, the main factor in choosing sneakers for you is mood?

[00:20:20] Mood?

[00:20:23] Yeah, I mean you buy sneakers based on your mood at the moment. You want something classic; you get white sneakers. You want something ultra-standout, you get bright, bulky sneakers.

[00:20:44] Yeah, you could say that ha ha! From the needs I’m looking for right now.

[00:20:50] Speaking of which, what’s your favourite brand of sneakers?

[00:20:59] Probably, as you’ve already figured out, I love Adidas and Reeboks.

[00:21:06] Well yeah, that was pretty much obvious (smiles)

[00:21:11] Why do you like Adidas specifically? Why not Nike, Puma?

[00:21:22] It’s simple. I love Adidas because they are willing to experiment. It’s Adidas that I see a huge amount of collaboration with different universes and celebrities. For example, Erm…Disney characters, Kanye West, Nicki Minaj. I see the Adidas brand being willing to give people who are classically out of touch with fashion, an opportunity to engage with that fashion, and give their… their vision of what’s cool, for other people to wear it.

[00:21:58] Perfectly correct that you like their accessibility in the brand?

[00:22:14] Not really. I like that they give opportunities to people who don’t relate to the sport. And they make sports fashionable.

[00:22:38] You recently talked about wanting sneakers to be comfortable. How do you perceive what is comfortable?

[00:22:58] For me, comfort is making sure that my foot isn’t too cramped, that the shoe doesn’t get dirty every minute, that I feel like we’re free inside the shoe.

[00:23:15] So these are purely technical features of the shoe?

[00:23:30] Well yeah.

[00:23:35] Okay, next question. We’re doing great, ha ha. You know the pandemic has affected consumer behaviour. You’ve probably noticed it in your own example or, like, other people. What exactly do you think the pandemic has affected in the consumption of streetwear and sneakers?

[00:23:59] I think because people started sitting at home more, using the internet, they simply started seeing other people in person less, which allowed them to loosen up. They started wearing more bright colours because they saw a lot of bright colours on the internet. In reality, however, in real life many people don’t wear bright clothes or sneakers, it’s more something grey, not standing out, monotonous. And the pandemic has given us bright colours, however paradoxical that may sound.

[00:25:15] That’s a very interesting concept! So, you could say that the social media that people were actively using during the pandemic essentially created a new fashion?

[00:25:34] Yes, I agree with that.

[00:25:40] You’re designing great sneakers at your current job. What…what would be the key factors that you would name, uhmm…that influence the design strategy of this beauty sneakers and apparel in the North American market?

[00:25:54] Everything is influenced by the internet.

[00:26:01] Can you elaborate on that?

[00:26:04] It’s hard to explain.

[00:26:08] I would say that it doesn’t come up with new ideas. All ideas exist in some kind of information field that every person on the planet has access to. But these ideas inspire us in different ways. And we create our design based on these inspirations. In this sense, pop culture is particularly influential.

[00:26:43] Very good that you brought up cop culture. My next question as a sprout about this is, please tell me exactly how pop culture influences trainer design and street fashion?

[00:27:03] When someone becomes very popular in the information field, it could be celebrities, characters, or just some universes, it quickly becomes trendy. So, brands, of course, want to use that to get people to buy those fashions and it makes them a profit. A good example is Kanye West and the sneakers that he creates. We know that these sneakers look weird, they are fantastic, and unique. They don’t look like sneakers in the classic sense. But they are inspiring. And what the West has created is just amazing. This is a prime example of how pop culture, or more accurately pop culture influences fashion, such as the singer and showman. If we look at the knockoff market from other countries, a lot of them are trying to replicate what Adidas and West did.

[00:28:08] Can we say that this kind of fashion is a little bit ugly?

[00:28:15] I wouldn’t say it’s ugly. It’s very appealing, for example to me. But you have to understand that for the mass consumer, new fashion trends can always seem a little bit strange. Just so you understand, as soon as KFC told me that they wouldn’t be doing a collaboration with Crocs, I immediately thought I wanted those shoes!!!

[00:28:41] Ha ha, yeah right, I remember those crocs!

[00:28:45] Yeah, so fashion isn’t ugly, it’s quite the opposite, it’s amazing!

[00:28:54] Great. Tell me please, do you know of any examples of successful start-ups in the North American market in terms of streetwear that are looking to succeed?

[00:29:07] Probably not.

[00:29:10] Okay. And so, as you know e-commerce is basically online selling and shopping in a virtual space. How do you think the advent of online commerce has affected consumer behaviour? I can see that people have started buying more products.

[00:31:41] Well first of all it shows the relevance of a particular product. The number of reviews and the quality of the reviews shows which products are popular and which products should be taken off the market because they were not too in demand. In addition, it allows you to improve the quality of the products. That is to say, it’s a great benefit for the production of goods.

[00:32:04] Okay, do you think the pandemic has had any impact on online sales strategy? Maybe on the virtual uhm… buying behaviour?

[00:32:27] I think yes. Because there have been more different picks and kits.

[00:32:36] What do you mean?

[00:32:40] I think when the pandemic happened, just t-shirts and sneakers and trousers stopped being as relevant as picks. That is, we go to an online shop, and we see a selection of clothes at once. It can be just streetwear or some creative kits. For example, elf kits, or anime kits. It used to be like it would be atypical to find that on some brand’s website, but now it seems like a normal occurrence.

[00:33:21] So you could say that the pandemic has fostered creativity in the fashion industry?

[00:33:41] Yes, I agree with that.

[00:33:45] Okay.

[00:33:50] By the way, in addition to the fact that online sales have increased creative effects, brands have also become active in the virtual space. I mean, we’re seeing some Adidas or Apple or Google start setting up accounts on TikTok or Clubhouse and other popular platforms to help promote. They have become more active in introducing their social networks and creating creative content in order to gain the trust of the young consumer.

[00:34:31] Do you think it’ll last after that? pandemic?

[00:34:40] I think so, because it’s fun!

[00:34:43] Ha ha (smiles). Great.

[00:34:50] Well, because people have realised that ordering online is much more convenient than going to shops

[00:34:59] What could be the threats to the aspiring trainer brand in the North American market?

[00:35:12] Hmmm… Let me think.

[00:35:15] Yeah, sure.

[00:35:41] I think first of all to gain consumer confidence. Because when there’s some new brand, you’re not sure yet that the quality of their fabric, their design is worth their money. Here.

[00:35:59] Lack of confidence in quality?

[00:36:01] Yeah.

[00:36:03] And how do you overcome that trust?

[00:36:14] Probably through collaborations with famous people.

[00:36:20] Okay do you see any more threats?

[00:36:25] No, I think that.

[00:36:30] OK, just disbelief. Then you think a start-up trainer brand can effectively compete with giants like Adidas, Nike and others?

[00:36:53] I think it’s difficult but possible.

[00:36:59] And what does it take?

[00:37:07] So they can create something new. To make a statement for themselves in some way. Because you could get those shoes at Adidas, but a start-up brand needs to stand out somehow. It’s certainly difficult, but it’s still possible, especially if you’re a good designer, ha ha.

[00:37:41] How do you think the role of physical shops has changed during the pandemic?

[00:37:58] Well I think there’s less people out there, ha ha. I think they’ve realised that they’re losing out to the online shops, because often the physical shops don’t have the stuff that’s on the website. Because they just don’t deliver them, or they don’t have their sizes

[00:38:21] Uh-huh, so the physical shops are losing out?

[00:38:33] Only in that respect. On the other hand, physical shops give you the opportunity to try on clothes on the spot and decide whether you want to buy them or not, whether you have to stop with your money now or not.

[00:38:57] So you can’t say that physically the shops are losing or winning anytime soon?

[00:39:10] Yeah, I don’t think any of these shops are going to disappear anytime soon because each of them have their own advantages.

[00:39:20] All right there are a few questions left.

[00:39:23] Okay.

[00:39:30] Imagine a start-up brand has $100,000 to launch their trainer shop. What do you think is the best way to spend that money?

[00:39:55] I think it’s very little, ha ha.

[00:40:01] Well it’s probably not much but imagine there’s still only so much money available. What’s the best way to spend it?

[00:40:17] Well first of all I think you have to spend the money on production, setting up production to help achieve great quality. You have to definitely buy good equipment that will last a long time and produce very good products. You have to invest in design, and also in advertising the product. The advertisement may be anything, I think it is effective to buy bloggers’ advertisements if we are talking about teenagers. If it’s not teenagers, it’s probably well-known personalities amongst adults.

[00:42:15] So the three pillars for a start-up brand are product, design and advertising?

[00:42:23] Yes exactly.

[00:42:38] Okay what fraction of that budget would you be able to spend on design?

[00:42:51] I think it would have to be quite a lot… let me think… probably 30%?

[00:43:17] 30%? Split the rest between production and advertising, yes?

[00:43:31] Well there must be some other expense items, like salaries and loans and so on, but I’m not very good at that, ha ha.

[00:43:50] Okay. If there’s anything else, you should mean you?

[00:44:10] As a professional designer, I can tell you that the best shoes or the best clothes would be the ones that you loved in production. You have to put all your creativity and all your love into the design of a product so that it finds its consumer. Experience shows us that even the strangest, most surprising, terrifying, and repulsive design can become popular. So, my advice to aspiring designers is to be honest with yourself when designing a product, and then everything will work out.

[00:45:42] Great words, Eliya!

[00:42:50] Thank you!

[00:42:54] Eliya, are there any links to valuable resources that I could read as part of my research?

[00:43:04] Right now I can’t name you anything specific, well I’ll be sure to send you those. Please leave me your email address.

[00:43:15] Okay thank you very much. And thank you for that interview. It was very fascinating and interesting.

[00:43:25] Thank you and good luck with your research!

Interview Transcription Kushal Birari

[00:00:00] (Interviewer: Ashwin Madasseri Rajeev Interviewee: Kushal Birari Interview Setting: Interview conducted via zoom call at 13 00 (EST) on 12 June, 2022 Interviewee Profile: Creative, Mother, New York, USA )

[00:00:00] Interviewer: hi Kushal.. Um, and thank you for joining. Uh, my request for the interview. Uh, with your permission, may I. Record. Uh, the um, The audio?

[00:00:17] Interviewee: Sure! Go Ahead!

[00:00:19] Interviewer: Um, thank you. So. I’m sharing a little bit about my project first so that you can best understand the questions and answer them right. A Little bit about myself. Um, I’ve got an industrial design background from. Um, The DSK ISD in product design. I was studying for three years in Pune,India. Designed a couple of watches lately in Denmark.

[00:00:44] And, uh, as you know, shared the same course in Miami Ad school, my batch being 2017-2019 basing in berlin. Um, And moving on. To my paper. First and [00:01:00] foremost.

[00:01:03] Yes.

[00:01:06] Asking you what? Is your current position in your company?

[00:01:13] Interviewee: I’m a mid-level Creative working at….

[00:01:15] Mother Ad Agency, New York

[00:01:17] Interviewer: Great! Introducing my problem.

[00:01:20] Um, the pandemic has obviously disrupted the key consumer behaviour in key global markets, as we know. Especially among young adults and Gen Z. The paradigm shift that took place during the pandemic in relation to consumer behaviour. That’s expressly irrelevant for the fashion industry. Modern consumers, especially members of Gen Z, have very different needs and expectations from the fashion industry today.

[00:01:42] Given the current patterns. Consumer behaviour that has changed during the pandemic. Modern researchers pay more and more attention to the development of marketing strategies and street wear fashion market…. the increased attention of modern consumers, to street [00:02:00] wear culture in particular sneakers as an attribute of modern culture, especially with the hip hop and pop culture in the western lifestyle among Gen-Z, Millennials demand appropriate strategies from the companies.

[00:02:08] Thus the study focuses on the consideration of important aspects of consumer behaviour within the fashion industry with a focus on gen Z, shift in consumer behaviour caused by the pandemic, being the main problem. The problem will be addressed from the perspective of street wear fashion. Startup aiming to begin operations in 2023. To produce and sell to the affordable luxury segment in the North American market.

[00:02:37] For an organisation seeking to begin its operation in 2023, success will be based more on the understanding of the current market trends, more than ,,,uh,that. It should be a predictive model that capitalises on the past and current trends to predict future ones.

[00:02:55] For this project, the focus will be on the period between 2023 and 2027 because it will be [00:03:00] vital for the formation of the foundation. For the organisation.

[00:03:05] Thus within the chosen timeframe. The impact of the pandemic on the streetwear market shaped by the gen Z consumers is projected. Uh,For many people street wear fashions are about more than just shoes and clothes, sold, uh but primarily about, the social fabric within that geographical location which is influenced by pop culture and other influencers within the social media.

[00:03:33] Thus, the market is likely to be impacted by changes,…… of the social environment. Especially the mindset changes and aspects such as lifestyle. The company’s profile is an international streetwear Sneaker fashion startup. That is to start in 2023. In the affordable luxury segment as we discussed. And in the North American market.

[00:03:55] My main Research Objective is to identify some of the most innovative strategies that can best help a [00:04:00] startup. Streetwear sneaker fashion company to be successful in the North American market in the focus geographical zones of New York, Toronto, and Miami.

[00:04:06] The study will be conducted in relation to how it would impact a new streetwear company and bring the North American market within the mentioned geographical zones.

[00:04:15] Under the umbrella of strategies. E-commerce is the one that has been focused in the study. The data collected will enhance the comprehension of how much the factors that determine gen Z’s consumer’s decisions have changed…..sorry. Changed because of the COVID 19 pandemic, as far as the sneaker market. as far as North America is concerned.

[00:04:38] I’m sure that there might have been quite a bit of info to take in, therefore I would like to hereby summarise them for better clarity.

[00:04:48] Interviewee: I guess I need that…. haha

[00:04:50] Interviewer: The company’s profile is an international Streetwear fashion start-up that is to start in 2023 in the affordable luxury segment in the [00:05:00] North American Market — the US and Canada — 2023-2027. The start-up company chooses to study the North American Streetwear fashion Market of Sneakers in particular with customer segment of age 15 and above within Gen-Z in the cities of New York, Miami, and Toronto

[00:05:16] The main problem in my company is the rapid shift in pandemic over the past several months, and the impact of that on the consumer behaviour of my target group of Gen Z from age 15 to 24 within New York, Miami , and Toronto.

[00:05:34] Interviewee: Alright.

[00:05:35] The main Research question that I am studying is to identify the most demanding innovative strategies that would make a start-up Streetwear Sneaker fashion company profitable in the NA market. Of which I’m focusing primarily on e-commerce in this paper.

[00:05:51] Okay.

[00:05:52] Interviewer: Significance – The scientific study of this topic would potentially derive forecasts of ‘the new normal’ consumer behaviour in [00:06:00] the Streetwear fashion within Sneaker consumers, which is most likely here to stay even after the pandemic, which is of utmost relevance for any start-up Streetwear lifestyle brand attempting to tap into the most competitive market for Streetwear fashion in the world, dominated by multi-billion dollar giants like Nike, Puma, Adidas and others, with their products to the Generation Z, defining their new ‘wants’ in the products they would like to consume.

[00:06:28] Now moving on to my questions….

[00:06:31] The fashion industry defines street wear as fashionable, casual clothing. worn by followers. of popular culture. According to PWC data. The global streetwear market will be demented $185 billion in 2019. Cited within a study conducted by leading streetwear fashion magazine, strategy and. Hype beast, along with PWC. Notably the COVID 19 and a pandemic has had a negative impact on this market. [00:07:00] Significantly reducing its size due to physical and social constraints to citizens for this reason. The size of this Streetwear market is projected to shrink from 2021.

[00:07:10] That being said, do you agree that the Streetwear market’s demand is still shrinking in this year, 2022 from your perspective in New York, Kushal ?

[00:07:13] Interviewee: Well, Ashwin, I do not have a clear stats on the market unlike you, but from what I can see, is my friends, and colleagues , and other peeps around still looking forward for the new drops in the Sneakers, and not much change that I have observed in the buying pattern….

[00:07:33] And… They still buy the new trendy ones , as and…when they are launched, be it from any popular brand – the Jordans, or the Yeezy’s , or the new labels like Off-White for example that’s being more and more popular these days. Off- White as you know whose creative director, and founder was the late legendary designer – Virgil Abloh.

[00:07:56] Interviewer: Correct..

[00:07:57] Interviewee: But this is just my personal [00:08:00] observation… but the stats might show differently…..

[00:08:02] Interviewer: Great ! Thank you for that piece of info Kushal! Please bear with some more info on my research, objectives, and company profile…..So that you could answer the questions that Follow……….Better?

[00:08:03] Interviewee: Sure ! Go Ahead, that works..!

[00:08:05] Interviewer: Awesome!

[00:08:05] In 2019. The North American market is also the most developed in this respect. With this community focusing more on the street wear fashion, than less developed markets such as Asia. A feature of this segment is also predominantly young consumers under 25 years old. Currently an increasing number of consumers in streetwear fashion belong to gen Z.

[00:08:32] Nevertheless, the company does not want to target kids who are part of gen Z, but only teenagers, age 15 and up. The reason being, that is when they are beginning to make purchasing decisions and can be influenced by effective marketing strategies.

[00:08:47] People lost jobs, incomes came down. Uh, a lot of people have been sitting inside their house and like, uh, getting exposed more into the media and climate change and all of that stuff. They’re reading [00:09:00] more. And now they’re understanding, oh, this shouldn’t, I should now. Reduce more than consume uh, they’re being, they’re more conscious. That’s the right word. Uh, they’re more conscious now, uh, during the pandemic, they got exposed to more, uh, international media and they’re, uh, more conscious than ever before. Uh, number three more, uh, uh, collective consumption part like, uh, startups like rent the runway have come up as you might know in New York for example.

[00:09:30] So basically it’s like a complete. uh, system collapse in the brick and mortar, uh, system of the retail supply chain and from in the fashion industry it’s com and eCommerce has obviously been the go to for most, most of the people for purchase.

[00:09:50] Uh, so the problem is the shift in pandemic.

[00:09:55] That’s the point here, a shift of consumer behaviour during the pandemic within the fashion industry. [00:10:00]

[00:10:00] And I’m focusing on sneakers.

[00:10:03] Um, my research question is what I’m trying to find out is what are, what would be some of the best strategies that a startup could apply in order to, uh, tap in, uh, to, in the, uh, in a, in the north American market, what could be one of the, what could be one of the most innovative strategies?

[00:10:29] for a startup sneaker brand,

[00:10:31] Interviewee: huh?

[00:10:33] Interviewer: To start, uh, but to be successful in the North American market.

[00:10:40] Interviewee: Oh. But it depends on the target audience. Like what exactly you are targeting….

[00:10:44] Interviewer: exactly that that is the current, uh, research question, but that can, uh, my target audience is gen Z and Millenials

[00:10:58] Interviewee: okay.

[00:10:58] Interviewer: From….. uh, 15 to [00:11:00] 24, not millennials, actually only gen Z.

[00:11:03] Okay. From 15 where they’re exposed to media when they can buy, make the buying decisions until 24. Uh, so there’s the age demographics. And, um, so that is my research question.

[00:11:19] So my first question to you directly, Kushal is like, what is fashion for you?

[00:11:26] Interviewee: what is fashion for me? Mm-hmm is basically the trend.

[00:11:31] Interviewer: How do you define fashion

[00:11:32] Interviewee: trending up front? So

[00:11:35] Interviewer: what, how would you define fashion for you?

[00:11:38] Interviewee: How would I define fashion?

[00:11:41] uh, in, in a,

[00:11:42] in a single word, it would be comforting.

[00:11:45] Interviewer: Comfort. Great. Yeah. Yeah.

[00:11:47] Interviewee: And obviously the eco friendly aspect to it,

[00:11:56] uh, and whatever is trending and comfortable.

[00:11:56] Interviewer: Right? Right. So comfort was another big, uh, [00:12:00] uh, new trend that has come it earlier. Before, before decade, it was streetwear now streetwear, and now. Coming to athleisure where you can wear casual. I mean, formals,

[00:12:14] Interviewee: yeah.

[00:12:14] Interviewer: With sneakers, you know, because of the comfort factor, as you said, uh, that is one of the things that I have already put up and I’m researching more into that.

[00:12:23] The comfort, a lot of people are into Comfort these days,.. And it seems to be a booming industry, the hoodie, um, tees not loose fit t-shirt and everything. Um, yeah, so comfort is like a big, big factor. Yes,

[00:12:37] Interviewee: but this is focusing on sneakers, right? Yeah.

[00:12:40] Interviewer: But even for sneakers, people are looking for comfort, even when you say comfort. Now, if you’re looking for sneakers, I know that you wouldn’t go for a basketball shoe because basketball shoes are very heavy.

[00:12:54] And this thing you would look for a go for a lightweight all birds shoe or a [00:13:00] sketcher shoe, because it’s really lightweight and easy because your preferences are comfortable. So I’ve checked that point over here. So, I get that clear.

[00:13:13] So on a scale of 1 to 10, how much are you personally into fashion?

[00:13:23] Whatever fashion is.

[00:13:26] Whatever fashion is, I would say it is seven.

[00:13:30] Seven.

[00:13:32] Interviewee: Yeah.

[00:13:33] Interviewer: Great. So on a scale of one to 10, how much are you into sneakers?

[00:13:43] Interviewee: I would say again, seven.

[00:13:45] Interviewer: Seven. All right. Which would be your favourite sneaker brand and why?

[00:13:53] Interviewee: So I, I feel it’s, uh, Yeesyz….?.. yeah.. Yeezy

[00:13:59] yeah, [00:14:00] like out of the more istic design approach to it, uh, and also taking consideration into the comfort part.

[00:14:08] Interviewer: Right. So I.

[00:14:11] So probably hype a hundred Uh Huh, the hype of Kanye and the design aspect and the pop culture aspect.

[00:14:18] Interviewee: Yeah.

[00:14:18] Interviewer: Regarding hip hop culture.

[00:14:22] Interviewee: True.

[00:14:22] Interviewer: Uh, the music Yeeszies oh, that as a new Yeezys it’s a conversation starter. All of that stuff, right?

[00:14:32] Interviewee: Yeah, exactly.

[00:14:33] Interviewer: Correct. Um, so what aspect would you look into when you buy sneakers? You already answered that question, which would be comforting. Um, all right. So this is a question specific for you, which is being an immigrant from India and having spent time in Europe and [00:15:00] mm-hmm, probably other countries and, and now you are in, in New York, what, uh, and having observed the street fashion, and within your experience and expertise.

[00:15:11] If I may ask what specific, uh, pattern can you pinpoint on New York streetwear fashion or, um, sneaker fashion, for example, Berlin is trashy, you know, Berlin trashy, and this thing, what would be New York for you?

[00:15:33] Interviewee: Sorry.

[00:15:33] I, the last bit got cut

[00:15:35] Interviewer: off. Oh, sorry. Sorry for that. Yeah. So the last bit I said, like, you know, um, so as I said, you, you have spent, you come from India, you spend time in Europe. Now you are in your us, you have friends all over the place. You have worked with different clients, you have your own observations and your own perspectives.

[00:15:59] Hmm. [00:16:00] Um, now my question is what aspect or what pattern specifically within New York or North America in general, like yeah. Would you find, uh, specific to New York or North America? Okay. Which you haven’t seen in other countries of India or Europe?

[00:16:28] Interviewee: Yeah. The challenging part to Europe is like, I’ve been in those countries, but at a different timelines.

[00:16:33] Interviewer: Right. So, yeah. Yeah. But still you can generalise it in general. You can in general.

[00:16:39] Interviewee: Yeah.

[00:16:41] So, so yeah, to be very specific about what is there and what feels different here, is very. A bit vague because for me it’s a bit vague because I was there at a different time timeline, you know?

[00:16:58] Interviewer: Right.

[00:16:58] Interviewee: Wasn’t that I was [00:17:00] travelling back and forth.

[00:17:00] Interviewer: Right, right.

[00:17:01] Interviewee: To have that comparison aspect. Right, right. Uh, a lot of things have changed right now. It is that your people are more into their drops.

[00:17:12] Interviewer: Correct.

[00:17:13] Interviewee: Yeah.

[00:17:14] Like having something which is very unique,

[00:17:17] Interviewer: correct.

[00:17:17] Interviewee: That you can hold, uh, and the aftermarket of that sneaker thing. That’s what I…….

[00:17:24] Interviewer: Resale..

[00:17:25] Interviewee: Yeah. Correct. So, so that’s, that’s definitely one thing which I feel is a, although I’m not so much into this stuff.

[00:17:36] Interviewer: Of course, of course. So, sorry to bore you on that, but then I’m, I’m desperate here.

[00:17:41] Interviewee: So no,

[00:17:43] Interviewer: whatever I can,

[00:17:43] Interviewee: it’s just that the, the, that question felt because I can’t compare

[00:17:48] Interviewer: It’s okay. It’s okay. But it’s also very, for me personally, it’s also very important to get somebody’s point of view, uh, interview. Uh, who’s not much into [00:18:00] this topic or sneakers or whatever, but who still purchases Yeezy you know,

[00:18:06] Yeah. You know what I mean?

[00:18:07] Like, I, I don’t purchase Yeezys

[00:18:10] I mean, if you, but then you purchase sneakers, right? Like,

[00:18:15] Interviewee: yeah, yeah, yeah.

[00:18:16] Interviewer: Right. Sneakers, something like everyone, would probably have at least one pair more. Yeah, yeah. Yeah. Uh, so, but then it’s not necessary that like 80% people are 70% people are not into sneakers. so it’s also very important to get their point of view. What do you actually look forward to before you buy? Right ?

[00:18:40] Interviewee: That’s right.

[00:18:40] Interviewer: Yeah. Much more than people who actually are into it, so your inputs like these things are more important for me.

[00:18:48] Interviewee: Okay.

[00:18:48] Interviewer: I may ask, how long have you been in New York right now? As of now?

[00:18:53] Interviewee: Uh, it’s almost three and a half. Yes. Yes.

[00:18:58] Interviewer: Great. So is [00:19:00] there, uh, which means that you’ve been just before the pandemic and then through the pandemic? So this is a question that would probably be perfect for you. Is there anything that you have, uh, observed with in consumer shift during the pandemic

[00:19:18] Interviewee: consumer shift in, especially in the sneaker world, or in General?

[00:19:22] Interviewer: Yes.

[00:19:22] You can say in whatever you have within sneakers or within streetwear fashion or fashion or overall

[00:19:31] Interviewee: The thing is, people stopped buying, uh, expensive clothes because no one was going out, especially because everyone was just, uh, sitting at home, working from home.

[00:19:42] Interviewer: Correct.

[00:19:43] Interviewee: So mostly like, I felt that that was a decline part of like in a high-end fashion

[00:19:48] Interviewer: huh?

[00:19:49] Interviewee: Because mostly people buy like off white and stuff like that.

[00:19:53] Interviewer: Right. Right.

[00:19:55] Interviewee: It’s not for sitting at home and wearing.

[00:19:58] Interviewer: Correct. Correct.

[00:19:58] Interviewee: Also Supreme [00:20:00] yeah. It’s also a statement when you wear that to a party and something, but if parties are not happening and no one will come up.

[00:20:13] Yeah……..

[00:20:14] Interviewer: So cool. So, well, um, do you think like, you know, is there, has there been a significant change? Sh, I mean, as of now, New York is back and, you know, still people are going back to office and people are there on the streets and stuff. Right. Do you think, like right now everything is back to normal or has there been like a shift, tremendous shift,

[00:20:35] Interviewee: everything got back to normal,

[00:20:37] Interviewer: just back bounce, or ?…

[00:20:38] Interviewee: Back or shift because of the inflation, correct.

[00:20:41] The economy

[00:20:42] Interviewer: because of the war.

[00:20:46] Interviewee: Uh, so mostly. It depends on the class of people who don’t care about, uh, who is not affected by that inflation still buys it. But there were like a lot of [00:21:00] people who usually buy something which is expensive just for, because they love, uh, buying those kinds of sneakers.

[00:21:09] Interviewer: Correct.

[00:21:10] Interviewee: So, or they would be like, you know, that hype, they kind of go with the hype part of it.

[00:21:16] Interviewer: Mm-hmm

[00:21:20] Interviewee: or with that specific drop. So they usually buy those, uh, stuff. But I feel like they have stopped doing that now because people are holding onto the money. Right. Because again, there might be a recession.

[00:21:34] Interviewer: Correct? Fair enough. That’s a very important point. Um,

[00:21:40] My next question would be, uh,

[00:21:49] have you ever, ever worked with a street wear or sneaker client?

[00:21:57] Interviewee: I worked for under [00:22:00] Armour,

[00:22:01] Interviewer: right.

[00:22:01] Interviewee: And yeah, that’s it.

[00:22:03] Interviewer: Huh? Cool.

[00:22:06] Interviewee: And in India I was working for… you know wildcraft right ?

[00:22:07] Yes. Bangalore yeah. Yeah. Yes.

[00:22:12] Interviewer: Um, are you from Bangalore?

[00:22:15] Interviewee: No, I’m from Nasik

[00:22:20] Interviewer: Nasik?

[00:22:22] Interviewee: Nasik, Maharashtra.

[00:22:22] Of course…. Nasik

[00:22:24] Interviewer: Okay. Uh, so if I may ask, um, Okay.

[00:22:40] Could you elaborate a bit on the significance of pop-culture on Sneakers, and street fashion in general?

[00:22:47] Interviewee: Oh yeah, well pop-culture is big man.. so as you know New York is the Capital of pop culture where all sorts of hype happens, be it with artists, the birth [00:23:00] place of hip hop itself, as well as you know…. the skateboarding culture which was the pillar for the formation of the brand Vans for instance, amd everything that becomes a trend today, or tomorrow most probably would be beginning from New York youth culture.

[00:23:17] The leading pillar among that would…. I could say the album drops by rappers for example which has a huge influence on sneaker culture I guess. Let’s for example if there is a Kanye West , or Kendrik Lemar concert that is happening next weekend, the sneakers that he would be wearing would be on top list priority for the GenZ’ers to but without doubt, which will be by then gone viral in all social media pop culture media, press magazines which are followed by your target audience. So yeah, Artists have a huge huge impact being the key influencers to promote the drop or [00:24:00] models, or to substantially…you know associate a style within a sub culture within pop culture – such as rappers like I said. So social media and these influecers go hand in had responsible or the buying culture for GenZers here in New York for instance definitely. It’s all about the Hype…man!!!

[00:24:20] Does that answer your question ?

[00:24:22] Interviewer: Pretty much, Yes Kushal!

[00:24:24] What other behaviours do you think the consumers of (X area) are looking forward to from the streetwear sneaker brands in your perspective?

[00:24:33] Interviewee: Well, I think apart from the hype , and the glamour and glitz that th social media influences the GenZ’ers to buy products from specific brands new or old, predominantly the classics obviosuly, since as we know the sneaker market is a monopolised industry…..To answer your question, I believe today, they are looking more into accountability in general be in social aspect or in Environmental aspect , or [00:25:00] personal.. right?

[00:25:00] Interviewer: Could you elaborate a bit on that if you dont mind ?

[00:25:05] Interviewee: Well, what I meant is , you see know more than ever because they have access to social media to share their view and opinions, the young GenZ/ers are seeking answers for Climate accountability from companies for example – they are more than ever looking at the carbon footprint from companies… for example as you might know the USP of the brand all birds is a carbon neutral company which enabled them to tap into the market successfully even collaborating with giants like adidas, whic is clean signal that the consumers especially in GenZ are more aware, and conscious, and seeking more accountability.

[00:25:45] We also see from movements like metoo, Climate change conventions, programmes lke Friday for Future, brand collaborations with pride movement, BLM, etc, because brands today realise that they simply cannot survive without incorporating the human aspect [00:26:00] into the marketing campaigns of these brands, positioning them to a much friendlier one , more relative one, increasing the probablitlity they they would be sold.

[00:26:09] Interviewer: Wow, that is very insightful..!

[00:26:11] How do you think the role of physical stores have evolved during the period?

[00:26:17] Interviewee: Hmmm….. welll regarding physical stores, as we allmight have seen… they were all shut for a very long time, which was one of the key reasons for the spike in e-commerce stores, globally. I’m not sure which ones to give examples, But, I’m sure you might have come across several brands shut, because the retailers could’nt pay up the cost for the real estate. Well over the time in respect to lifestyle brands, especially streetwear, I believe they have evolved it’s purpose to serve as a digital experience outlets, rather than traditional brack and mortar style physical stores. One good example which existed ven before pandemic [00:27:00] in the Nike Innovation Lab in New York, where they display all kinds of materials, and processes, of Nike, with all kinds of visualisation into their brand experience using tech like VR/AR. Today, I’m assuming a lot more brands have adopted this model.

[00:27:17] Interviewer: Can you give some good examples of startups that have been able to tap into the market ? And their core strategy for success in the NA market?

[00:27:27] Interviewee: Uhmmm.. I might have alreasy.mentoned one for that..ALLbirds was immensely successful startup which capitalised on the consumer’s need to adopt more sustainable lifestyle. ANd this trends keeps continung , as we see more and more sneakers being developed or lets just say… enginered in this aspect- in vegan way, or… in a using recycled waste materials.. Another example maybe I have come across would be Veja, which I believe originated from Portugal, but runs more or less along the same [00:28:00] principles. Even if you just go look at kickstarter campaigns today, I’m sure you would see so many apparel, lifestyle prodcuts, such as footwear, sneakers, sunglasses, hats , and what not…..we come across a a pattern where startups are capitalising or adopting this new consumer trend of the people which is Sustainability, and a more….let’s just say…. ‘ guilt -freee’ lifestyle? And this….. is predominatntly because of the bad reputation that fast fashion holds.

[00:28:29] Interviewer: How do you think e-commerce has had an impact on the consumer behaviour side?

[00:28:35] Interviewee: Well, I’m not an e-commerce expert, but from my general observation, what I could say is that e-commerce has grown significantly over the pandemic for sure, and I believe since it has opened up new consumer target audiences, it is likely that they would keep purchasing via e-commerce due to factors such as convenience.. because you could get anything in a click [00:29:00] of a button, seamless transactions,….omnichannel presence, as you might have already seen that we can purchase products directly from Social media like Instagram for example. Therefore I believe big corporations… would be investing a lot into e-commerce and digital marketing to attract more customers.

[00:29:17] Interviewer: Do you think these changes would stay or would go to pre-pandemic patterns? In terms of e-commerce marketing strategies adopted by the companies?

[00:29:27] Interviewee: Well, I believe most of the changes are here to stay. As I already mentioned even though people have started to not wear masks, and shops reopened today in New York, and people still buy from physical stores, I’m very sure they would have already imbibed the habit of purchasng online as well, within their day to-day life, which cannot be taken away overnight. And I also believe the convenience aspect and further tech investments in e-commerce to make it look better, [00:30:00] work faster, sharper, easier, than ever will make the customers really really attrted to e-commerce lifestyle. And I believe I have read articles which states it is here to stay, and have already been accelerated years down the lan from technological standpoint.

[00:30:16] Interviewer: How best do you think the brand should spend it’s capital on digital marketing/advertising? If the company had a 100K USD Capital. In respect to the markets of New York, Toronto, Miami?

[00:30:29] Interviewee: That is a biggie! I should say Ashwin! Hmmmm….. let me just take moment to think about that…… uhmm.. well… uh, uh, quoting from your own theme of your project.. or study, This COVI pandemic has changed all aspects of corporate scheming of judments and patterns within all departments from Human resources, Design, other talents… Sales…. and ofcourse advertising.

[00:30:53] Interviewer: Correct.

[00:30:53] Interviewee: What makes it all the more challenging is that we no lnger can make use of [00:31:00] the data sets that we had before the pandemic hit….. so to make a winning marketing strategy for any agency today, is of utmost challenge with a lot of experiments, and new data analytics recieved everyday, innstead of mothy, or quarterly depending on a brand’s budget.

[00:31:18] But to specifically anser your question, it’s good that you specifically mentioned ‘digital marketing’ and not just marketing.. because that in this context would have been too vague to be honest.

[00:31:30] Today we have so much opportunity via the internet for any single person or shop or brand to promote their products from a very very lean scale.

[00:31:41] From an advertising point of view you might have to completely change the traditional playbook and start more or less from the scatch…. as difficult as it may sound. which means you will need more specific customer personas than before, and obviously a much clearer communication [00:32:00] strategy.

[00:32:00] In your case for a 100K capital, I think we definitely cannot go full on campaigning with traditional methods like outdoors, poster, billboards, etc, neither they are strategically viable, considering your target customer segment is Gen Z who depend mostly on social media for their buying decisions than others.

[00:32:19] But.. before all of that, since your commodity is not a reseller one, but your own, which means it needs to have it’s own identity or personality first and foremost. And that starts with product innovation itself! THat could be your best ad strategy as of now with this capital for your Sneaker brand startup. Because I believe you will needs a lot of funds to make your products’s USP crystal clear to stand out of the rest of your competitors, whoever they are. Once again taking the example of Allbirds brand. Once, you get your USP clear , your next [00:33:00] lean step would be to get the messaging of the USP of your product to your target audience. Now, let’s just imagine you have a killer USP, your challenge woud be identify your focus groups who relate with your product/Brand. That’s when we start talking about the communication strategies which you could kick off with A/B testing on different social media platforms with 10-15% of the budget initially. And depending on the results, you might have an idea where to invest th same amout of marketing budget which could dial up your sales. But the power of a killer USP would itself make the consumers the advocate for your brand, and a lot of money could be saved instead of spending on traditional advertising strategies. Alsooo… you know especially… since you are focusing on E-Commerce too. This would be a good mix. And later probably once you get your footprint [00:34:00] sorted more or less, and have additional funds, you could outsource it to a good social media marketing agency locally who works within NY, or…. Toronto… or inc ase if that might be out of your budget you could outsource it to a very good home country agency who handles such clients to cost cut… just saying.. but theres a lot of variables before to set I suppose.

[00:34:27] Awesome !..

[00:34:27] Well my next question is…..What kind of upcoming future e-commerce trends do you think the company can incorporate especially in the Big Apple – New York! ?

[00:34:37] Uhmmm… I will have to repeat that…. uh, I am not an e-commerce expert, but I can only answer within my knowledge of general advertising, and marketing experience… so just a heads up. I might be wrong here…

[00:34:53] But I definitely…. definitely think first and foremost as we discussed, when you might be all set [00:35:00] with the USP of the product , and a a…clear message some e-commerce strategies that you could adopt is number one… going omni channel.. which is like the basics. But also with testing later identifying where your focus groups are, and focusing on those channel particularily. For example i believe since we are talking about GenZ , the probablity that you would invest in IG campaigns are much more than on facebook, or linked-in,twitter, etc….. Just to give you an idea.

[00:35:31] Also, there is never a clear cut strategy or trends that you simply can cut,copy, and past. You will have to test it out in the market with customer-centric campaigns, and posts within your budget, and move forward with a testing, and learning kind of mindset.

[00:35:50] I also think a lot of startups do not really understand the fabric of e-commerce working, I see many brands wasting their initial bootstrapped [00:36:00] money on campaigns run all over the place within different platforms and media, but no strategy whatsoever. So I guess it comes down simply for you to identify, differentiate, sell wth a kickass message that resonate with your audience. That kind of strategy is what works within startups of humble beginnings in my opinion.

[00:36:21] Interviewer: Wow! I feel like I’m learning a lot from our conversation! Thank you so much! for these great insights and information…. Kushal….uh,

[00:36:30] All right. So this is like, you know, just to only these, these three questions, you, you may only need to answer, uh, if you’re comfortable, uh, just for the records of, to make my chart, uh, of the statistics.

[00:36:46] Okay.

[00:36:48] Between what, and what does your annual income come under?

[00:36:53] Interviewee: Mm-hmm I I’ll skip that.

[00:36:55] Interviewer: Okay, fair enough….haha

[00:36:57] What [00:37:00] would be your age?

[00:37:02] Interviewee: Oh, 30, 30.

[00:37:04] Interviewer: Perfect. Okay. Uh, great. So, and is there now that we’ve, we have like a couple of minuites more left…

[00:37:11] Before wrapping up our interview, is there anything else you would like to share that could help my study paper?

[00:37:19] Interviewee: Well, i really think you should watch Jeff Goldblum episode on sneakers,

[00:37:21] Interviewer: Jeff?

[00:37:22] Interviewee: Goldman,

[00:37:23] Interviewer: Goldman,

[00:37:25] Interviewee: uh, wait,

[00:37:32] uh,

[00:37:41] Yeah. sorry. The thing

[00:37:49] check, uh,

[00:37:51] I have sent you. Yes.

[00:37:52] Interviewer: Received. I see that. Yeah, not yet.

[00:37:59] Interviewee: Okay. [00:38:00]

[00:38:00] So this guy kind of like, he has like. Specific episodes. So this like, uh, focusing on like one episode is focusing on, oh

[00:38:11] Interviewer: yes, of course. This is Jurassic park. Yes.

[00:38:15] Interviewee: Yeah, yeah, exactly. And then, uh, the other one is like this one is specifically focusing on the sneakers part of it.

[00:38:23] Then how people kind of customize sneaker and how much people are they willing to pay for one sneaker pair if it is rare and how they kind of judge, if.

[00:38:34] Like, you know, the entire market

[00:38:36] basically

[00:38:37] Interviewer: Uhhuh. Awesome.

[00:38:38] Interviewee: Yeah.

[00:38:41] Interviewer: Amazing.

[00:38:41] Interviewee: It’s it’s like a really short episodes of like 20, 25 minuites.

[00:38:45] Interviewer: Amazing. I’m definitely gonna see. Sure

[00:38:45] Interviewee:. Yeah.

[00:38:51] Interviewer: Great. Uh, yeah. so I don’t wanna take much of your time. Um, so it’s been a pleasure meeting [00:39:00] you, uh, talking to you, um, and, uh, yeah. And thank you for the answers.

[00:39:11] And if would you have this last question? Would you have anybody else, like any one of your friends. Or colleagues who would be working in a, with a sneaker brand or like street wear this thing who could give some relevant insights, whom I can like ask for 10, 20 minutes or 30 minutes or something?

[00:39:33] Interviewee: Yeah. I I’ll let him know, like,

[00:39:36] not nothing in talk of my head right now, but I’ll, I’ll let you know.

[00:39:41] Interviewer: That would be, that would be amazing.

[00:39:43] Last, But not the least would you mind sharing any other relevant data, or articles, or any other sources within this topic that you might have access to whch could be of great help to me ?

[00:39:57] Interviewee: Sure..Sure… I will…. I [00:40:00] will email you some stuff I might have. and also some links.

[00:40:04] Interviewer: Thank you. Thank you so much for your time, for sure. Yeah.

[00:40:07] Interviewee: Thank you.

[00:40:07] I appreciate it.

[00:40:11] You’re welcome. See you.