Core Insights - The streetwear brand model, which relied on hype and celebrity endorsements, is losing effectiveness, exemplified by the bankruptcy protection filing of the Italian brand group New Guards Group (NGG) [1][2] - The shift in consumer preferences, particularly among Generation Z, is moving towards brands that resonate with their cultural values rather than just hype-driven marketing [2][6] - The luxury market is experiencing a slowdown, with a projected decline in growth rates, indicating a broader challenge for both niche and major brands [7][9] Group 1: Market Dynamics - The New Guards Group, which once thrived by launching brands like Off-White, has faced significant challenges, leading to its bankruptcy protection filing and the departure of several brands seeking independent operations [1][2] - The acquisition of NGG by Farfetch for $675 million in 2019 did not sustain growth, resulting in Farfetch selling its stake to Coupang in 2023 due to NGG's underperformance [1] - The luxury goods market in China is projected to see an 18% decline in growth in 2024, reflecting a global trend of slowing sales across major luxury brands [7] Group 2: Consumer Behavior - Generation Z consumers are increasingly favoring brands that align with their personal values and cultural beliefs, moving away from the previous model of limited editions and celebrity endorsements [2][6] - The focus has shifted from exclusive products to practicality and meaningful experiences, with consumers seeking items that reflect their lifestyle [6] - The concept of "silent hits" has emerged, where products fail to generate buzz or discussion, leading to poor sales despite good design [9] Group 3: Brand Strategies - Brands like Madhappy are redefining success by emphasizing emotional health and community engagement rather than rapid product turnover or celebrity collaborations [10][12] - Madhappy's approach includes a focus on quality over quantity, with prices ranging from $175 to $300, and a commitment to social causes, resulting in a 30% year-over-year sales increase [12] - The global streetwear market is expected to grow from $2.1 trillion in 2025 to $2.576 trillion by 2030, indicating ongoing demand despite a cooling market environment [12]