Future+ Fridays | Issue36

1. Luxury market shift: vintage, second-hand, and rentals on the rise

What's happening: The luxury market is experiencing mixed performance, with only a few high-end brands like Hermès and Miu Miu seeing growth, most are facing challenges and worrying results as highlighted in last week's newsletter. On the other hand, the vintage, second-hand and rental luxury markets are booming, driven by Gen Z's focus on sustainability and mindful consumption. This generation is reshaping purchasing behaviour by prioritising eco-conscious choices, repurposing items, and engaging in underconsumption trends popularised on platforms like TikTok. Retailers are adapting to these shifts through collaborations, pop-up events, and rental services that align with Gen Z’s values.

TLDR:

• The market for vintage luxury items is booming, with categories like trench coats seeing a 429% year-on-year sales increase. This highlights a shift toward heritage pieces from established brands like Burberry.

• Luxury Promise is hosting a pop-up at Harvey Nichols, featuring curated selections of pre-loved luxury goods. This aligns with a broader push for circular economy experiences that attract sustainability-focused shoppers.

• The rental platform, By Rotation has also launched the largest rental pop-up in London's West End, marking its fifth anniversary. The five-story space showcases the growing appeal of upscale fashion rentals and underscores the rental market’s predicted doubling by 2030.

• By Rotation's expansion into the US and partnerships (e.g., with Net-a-Porter) underscore the scaling of the digital rental market, predicted to double by 2030.

• 83% of Gen Z have reduced non-essential spending, choosing pre-loved and rental options over new. Brands are responding with sustainability-focused partnerships, such as up-cycling initiatives and preloved platforms like Selfridges’ “Reselfridges.”

• Social media, especially TikTok, facilitates a new way for brands to engage consumers by showcasing both new and preloved items. TikTok has opened new avenues for luxury brands to sell both new and preloved items online, enhancing accessibility and tapping into the sustainability-oriented shopping preferences of younger consumers.

Why it matters: The surge in vintage, second-hand, and rental luxury underscores a significant shift in consumer behaviour, emphasising sustainability, affordability, and eco-conscious choices. Brands must adapt to appeal to Gen Z and consumers as a whole, who view sustainable practices as essential and increasingly choose second-hand and sustainable options. The evolving retail landscape presents both opportunities and challenges for luxury retailers to redefine their strategies and connect meaningfully with different generations of consumers, notably Gen Z, which is projected to account for 40% of the luxury market by 2023.

2. Kering is adopting science-based targets for nature

What’s happening: The WWF states that nature provides the world with at least US$125 trillion of value annually. To safeguard this immense value, 196 countries signed the Kunming-Montreal Global Biodiversity Framework, aiming to halt and reverse biodiversity loss by 2030. While sustainability conversations often focus on climate change and carbon emissions, biodiversity is equally crucial but receives less attention. To address this, the Science Based Targets Network (SBTN) completed a year-long pilot, from May 2023 to June 2024, with 17 global companies, including Kering, to implement science-based targets for nature.

TLDR:

• The SBTN pilot, aligned with the UN's Kunming-Montreal Global Biodiversity Framework, included major brands such as Kering, H&M and LVMH to test biodiversity strategies. These companies were chosen for participation in 2023.

• Kering, alongside GSK and Holcim, is among the first to adopt these science-based nature targets, indicating a push for more transparent and accountable sustainability efforts. While GSK and Holcim will focus on targets for freshwater, Kering’s targets are on two aspects: freshwater and lands, including, addressing supply chain impacts, such as leather tanning and textile production.

• Kering’s nature-focused targets prioritise the Arno basin in Italy, home to many leather tanneries. These initiatives encompass the company’s direct operations as well as upstream suppliers, aiming to reduce ecological impacts

• The framework incorporates community engagement and recognises Indigenous rights as essential to successful implementation.

• Broader adoption of these targets can guide industries in addressing interconnected environmental issues, aiming to halt biodiversity loss and foster sustainable practices​

Why it matters: Biodiversity is essential for maintaining ecosystems that support economies and human well-being, but it often takes a backseat to climate change in sustainability agendas. The SBTN pilot and Kering’s adoption of nature-focused targets show that brands can lead in protecting natural resources. By addressing complex supply chain impacts, like those in the Arno basin, companies can mitigate risks, build trust, and stay competitive in an era where consumers and regulations increasingly demand environmental accountability.

3. Meta to plan its own search tool to cut reliance on Google and Bing

What's happening: Meta is reportedly working on an in-house AI-powered search tool to minimise reliance on external providers like Google and Microsoft's Bing, which it currently uses to power web searches and provide real-time data for its Meta AI chatbot.

TLDR:

• Meta's AI chatbot was launched in September 2023, it first partnered with Bing and then expanded a second partnership with Google for each web search capabilities.

• Meta has also made a deal with Reuters to pipe news content directly into the platform as Meta AI will summarise and link to Reuters stories.

• The company may be shifting to build an independent search engine to control data and reduce dependency on competitors.

• This move would be significant as it involves developing a complex web-crawling system akin to Google’s and Bing’s. Yet, Meta's existing data collection processes do already include web crawlers, which have been increasingly active.

• Building its own search tool would support Meta's AI growth and potentially give its applications, like Threads, more up-to-date news capabilities.

• This initiative could be aimed more at enhancing Meta's proprietary data stores rather than directly competing with major search engines.

Why it matters: Meta's move comes as competition in AI-driven search intensifies, with Apple rumoured to be developing its own search engine and OpenAI's recent launch of SearchGPT. This shift addresses a key weakness of large language models: their reliance on static datasets, which limits their ability to provide real-time answers. By building its own search tool, Meta would offer up-to-the-minute responses and reduce dependency on Google and Microsoft, especially as their dominant positions face challenges from modern AI platforms and potential regulatory shifts. With its vast user base of 4 billion people, Meta could become a main player in AI-powered search, ensuring it stays competitive as the landscape evolves.

4.  LinkedIn unveils AI hiring Assistant to transform recruitment

What's happening: LinkedIn is introducing a new AI-powered hiring assistant, expanding its toolset for recruiters and automating key aspects of the recruitment process.

TLDR:

• LinkedIn's AI hiring assistant helps recruiters by generating job postings from notes, sourcing candidates, and facilitating engagement.

• The tool is currently live with select large enterprises like Canva, Siemens, and Zurich Insurance, with plans for wider rollout soon.

• LinkedIn's hiring assistant is part of its broader integration of generative AI tools, made possible through its parent company Microsoft’s partnership with OpenAI.

• LinkedIn's AI advancements stem from its history of integrating AI in its backend, such as for connection recommendations.

• The assistant supports task automation by integrating with applicant tracking systems and using LinkedIn’s vast user data (over 1 billion users).

• Future capabilities will include interview scheduling and follow-up messaging, targeting B2B recruitment markets.

• LinkedIn also launched a new coaching feature helping users practice human skills through interactive scenarios, such as giving feedback and delivering performance reviews, with personalised feedback for improvement. Available to users with access to LinkedIn Learning Hub.

Why it matters: This development marks a significant push by LinkedIn to solidify its position as a key player in the AI-powered recruitment landscape. By automating repetitive tasks—such as scheduling interviews and sorting resumes—recruiters can focus on strategic efforts like candidate assessment and company culture alignment rather than administrative duties. As AI continues to reshape professional tools, LinkedIn's new assistant may become an essential resource for companies looking to streamline hiring processes and reduce administrative burdens. More than anything, it proves how AI can complement and improve human productivity.

5. Showcasing local and global talent at the FTA and CFDA Awards

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What's happening: In a world where institutional organisations continue to play a significant role in promoting and celebrating talent, the recent Fashion Trust Arabia (FTA) awards in Morocco and the Council of Fashion Designers of America (CFDA) awards in New York showcased their ongoing impact. These events highlighted creativity, innovation, and sustainability, bridging tradition and modernity while elevating local and global fashion talent.

TLDR:

• The Fashion Trust Arabia (FTA) held its sixth edition in Morocco, showcasing and supporting designers from the Middle East and North Africa (MENA) region.

• The FTA awards covered seven categories, including ready-to-wear, evening wear, jewellery, and accessories, emphasising innovation and craftsmanship.

• Winners received grants ranging from $100k to $200k, year-long mentorships, and unique opportunities like an internship at Huntsman Savile Row.

• The FTA was attended by celebrities such as Imaan Hammam, Natalia Vodianova, Paris Jackson, and Nicky Hilton attended.

• The CFDA awards in New York, presented by Amazon Fashion, celebrated bold creativity and sustainable innovation, with appearances from stars like Kylie Jenner and Blake Lively.

• Stuart Vevers of Coach won the Innovation Prize for Coachtopia, highlighting sustainable practices focused on upcycling and circular fashion.

• Overall, both events highlighted the blend of tradition with modernity and underscored fashion's role as a cultural and artistic platform

Why it matters: These high-profile events highlight the ongoing relevance and impact of institutional recognition in nurturing local and global fashion talent. The FTA supports regional designers with financial aid and mentoring, boosting the creative economy in MENA, while the CFDA celebrates American and international designers who push boundaries. Such awards not only reward innovation and creativity but also amplify sustainable practices in fashion, underlining a shift towards more responsible and inclusive industry values.