As we enter the New Year, 2016 but a mere one day away, we cannot help but begin hedging our bets as to which retail companies will be making it big next year, which to watch out for and which will be defunct entirely. At 24/7 Wall Street, a list has been compiled on an annual basis for the past 6 years, trying to decipher which companies are saying goodbye to us in the coming year. For 2016, a few fashion retailers fall onto the list as well. While they can be wrong in their predictions, those on the list logically have too few chances of surviving. Declining sales and losses, rising costs, mergers and company sales, market share losses and liquidation or bankruptcy are all factors used to determine the survival rate of any given retailer. While electronics and transportation means often have higher margins of failure of late, fashion retailers also fall onto these lists. There are a few that we need to make mention of:
• American Apparel: While it makes it onto one of the top fashion retailers for 2015, the coming year will not be so kind on the brand as it seems to have lost its founder and the rumors state bankruptcy has been filed. It is down to 130 stores, which cannot compete with competitors who have several thousand.
• Pacific Sunwear: One of the worst operating companies on the list of 2016 failures, it has come to investor attentions that the business’ revenue per square foot of its stores is one of the worst you can find in the market these days.
• Aeropostale: This one has survived despite the odds, but the teen retailer has been struggling and is considered among the failing companies that there are few chances of saving.
Huge department stores, which are considered fashion retailers as well, such as K-Mart and Sears, are also going out of business, these two in particular expected to merge and the K-Mart name kept instead. That will be a huge loss for it was the top competitor with the Hudson’s Bay Company in Canada.
While we mentioned the failures first, not everything is so bleak in the world of fashion business. On the contrary, there are brands that have been doing exceedingly well for the most part and we only need look at the Forbes top 10 companies, alongside Interbrand’s Top 100! So which companies make this list?
Fashion and beauty companies found amongst the top 10 most powerful fashion brands of 2015 include:
• L’Oreal Paris – Headquartered in France, this brand has been taking off beautifully!
• Burberry London – Headquartered in the United Kingdom, we see Burberry making rather large leaps and strides towards a successful label.
• Rolex – Headquartered in Switzerland, Rolex has been competing quite heavily with Cartier.
• Nike – headquartered in the United States, Nike is the top sports brand that has been making almost every top 10 or 20 list for 2015, making it the top choice to watch for in 2016.
Of course, if we are going to put our focus merely on the best fashion retailers to follow in 2016, Interbrand has the best results for us:
1. Nike: Named top riser due to its 16% increase in sales to over 23 million USD, the sports retailer has been the strongest brand for 2015 and its focus on women’s apparel, along with its collaborations with top designers has earned the company a steady reputation. It is certainly one of the fashion brands to watch for in 2016.
2. Louis Vuitton: Falling 20th among the top 100 best global brands of 2015 is Louis Vuitton with 22.25 million USD in sales, though with a slight drop in sales. After seeing a slump for a few years it is great to see Vuitton’s major comeback.
3. H&M: Another huge collaborator on this list in H&M, a multinational company that has seen a 5% rise in revenue, and lands itself right behind the high fashion retailer Louis Vuitton for a change. We expect that this will only continue in 2016, with the retailer surpassing most every brand in the market.
4. Zara: The founder of Zara is the second richest man in the world today due to his company’s innovative business strategy and ability to be flexible on a multinational context. With a 16% increase in sales, it is also viewed as a top riser, such as the likes of Nike, despite holding 30th place among the world’s best brands, wherein IT companies certainly take over the list alongside vehicle brands.
5. Hermes: The French brand comes in 41st and has seen a steep 22% rise in sales, making it a top riser and certainly a brand to watch for in the coming year.
6. L’Oreal: Another French company to top this list is L’Oreal Paris, coming in 43rd and showing a 6% rise in sales throughout the past 12 months.
7. Gucci: Falling halfway down the list at 50th is Gucci, a high fashion retailer that has really cut the score and overdone itself this year, gaining an incredible fan base and doing much in the industry for itself.
8. Adidas: A direct competitor to Nike, Adidas certainly does not do as well on a global nature but is among the top 100 best brands in the world, despite its falling sales in 2015.
9. Prada: The beauty of Prada has not gone unseen by the world, as we have noticed of late, despite its 69th ranking and lower revenue. It has, however seen a 4% rise, meaning that Prada is certainly a high fashion retailer to keep your eyes open for.
10. Burberry: Interbrand’s list also includes Burberry at number 73, showing a 5% increase and a great likelihood to come ahead in 2016. The latest fashion shows have shown an understanding of innovation in the fashion industry and we expect the fashion house to bring in the big guns pretty soon.
11. Ralph Lauren: It may fall at the 91st ranking and show a deduction in sales by 7%, but Ralph Lauren is still very effective in the world and has great potential for even more growth.
12. BOSS: The Hugo Boss label named BOSS is one of the top 100 global brands and rightfully so, showing a 3% increase in sales and the Fashion Week runway shows depicting creative minds that can come up with some very creative new designs.
More fashion brands to follow in 2016, as they will be making it big according to some speculators, are:
13. Abercrombie & Fitch: It was really falling for a while but Abercrombie made its comeback in the last 2 quarters and seems to be gaining speed once again. We are unsure when it will make the top 100 global brands, but for now we are more than happy to see the retailer that was our favorite during teenage years (and where some seriously wondered if their boyfriends were gay after taking selfies with the gorgeous models in front of the stores) is coming back pretty strong. We hope the sales make a quick turnaround.
14. Gap: The earning reports from Gap have really made us sad of late, but CEO Art Peck has given us hope of seeing a turnaround, which means we might want to spend a bit more time checking out the latest styles they have available for us come the spring season. It is still on Fifth Avenue in New York, so we are not so worried yet.
15. Adore Me: As much as we love Victoria’s Secret, we have noticed the incredible rise in fortune for its latest competition and with a company growth of 15,606%, there is really very little that could be said against the lingerie brand. We are rather excited to see where it ends up in 2016!
16. Sweaty Betty: If you love Lululemon but want something more expensive and top of the line, Sweaty Betty seems to be the right choice, particularly in London and we are wondering if it might be sweeping through Lululemon turf soon enough. While the competition was known as one of the top brands of 2015, Sweaty Betty might throw it off kilter and take its spot within the coming months.
17. Shop Jeen: This lesser known but highly successful Internet retailer has been making major strides and is expected to receive some new investments soon enough, meaning that the intriguing and sometimes controversial brand will be modifying its strategy and taking the industry by storm in 2016.
18. Topshop: It has been appearing on the Fashion Week runway shows, doing major collaborations with A-list celebrities and overall knocking down all competitors in sight, particularly in the United Kingdom. Its athleisure partnership with Beyoncé Knowles is expected to skyrocket sales and create a whole new demographic to cater to.
19. Aerie: We rather like the lingerie stores and that is why we especially want to keep an eye on them, especially those with a focus on innovation and meeting customer needs. In Aerie’s case, the need is for very real women to be showing off the pieces available by the brand, in essence creating more of a positive body image among the ladies. Sales because of the Aerie Real program have increased by 21% and that is because customers truly believe in what the company stands for.
20. Limited Too: Back in the 1990s, tween brand Limited Too was quite popular before it died out. Apparently oxygen has been fed to its ashes and new life breathed into the label that is expected to become huge once again in 2016! We cannot wait to see what they do to revamp the image.
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