Why Is Streetwear The Definition Of Millennial Business?

Why Is Streetwear The Definition Of Millennial Business?

United Kingdom

3 reasons why streetwear is taking over the millennial business


Streetwear. Trendy, flashy, exclusive pieces of clothing which are made, generally, by big brands for younger generations of customers. Why should this be a business topic? Why should analysts cover marketing, sales and management strategies that companies like Gucci, Louis Vuitton and more are putting into place? Let's analyse the millennial side of the business that streetwear is famous for.

Low Costs, High Profit

In order to properly assess the market value of mens streetwear, in particular, we should analyse the general production process which companies like Supreme and OFF-White are using. Generally made out of Gildan or similar, their production value amounts for just 4% of their entire profit, meaning that a t shirt which people are paying $600 costs, with taxes and everything in between, just $10 to the actual brand. Low cost and generally low quality materials are then "overtaken" by big marketing campaigns, which are the main reason why most of these collections are being sold out in a couple of hours.

"It's limited Edition!"

Nothing screams millennial business more than personalized, exclusive items. From metallic credit cards to t shirts, the more exclusive it is, the better. With this in mind, Supreme, which only released exclusive collections since its beginning, has been leading a market that amounts for thousands and thousands of brands worldwide. Providing limited edition pieces of clothing is something which has been the foundation of this market sector and, given the results, it's very likely to remain.

The Biggest Brands Have Changed

The biggest confirmation of why streetwear has been the biggest trend of the current fashion world is the fact that every major tailoring brand has started its own streetwear line. Brands like Gucci and Louis Vuitton have indeed moved completely from classic, polite tailoring to just streetwear, increasing their profit margin by over 30% within their first 6 months operating in the sector.

To Conclude

Streetwear is a massive part of the fashion world, possibly the biggest. It is indeed a millennial market and it's here to stay so, in case you're an investor looking to expand your horizons in regards to fashion, consider looking into independent streetwear brands!

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