In this week’s briefing, we take a look at why some brands including Pacsun and Jenni Kayne are turning to Upstate New York, including the Hudson Valley and the Catskills, for their retail and marketing activations. Also, a preview of a conversation with Zenni CTO David Ting about how he’s approaching AI.
Summer is for the Hamptons.
Every year, around this time, wealthy travelers from New York City head out to the east end of Long Island for vacations, and fashion brands follow. In the past month alone, there have been Hamptons-themed campaigns and pop-ups from brands including Balmain and Tanya Taylor.
But there’s another New York City-adjacent destination that’s becoming a go-to both for affluent travelers and the luxury and fashion brands looking to cater to them: Upstate.
Upstate New York, defined broadly as the regions north of the city like the Hudson Valley, the Finger Lakes and the Catskill Mountains, is an increasingly popular tourist destination. Monthly traffic data shows a 58% increase in domestic travel from New York City to Upstate since 2019. Regions like the Catskills and the Finger Lakes boast scenic views and attractions like wineries and luxury hotels.
And in the last month, a number of fashion brands have opened stores or experiences or run campaigns involving the region. Womenswear and home decor brand Jenni Kayne just announced the opening of an immersive brand experience called the Farmhouse in the Hudson Valley opened in mid-July. In its most recent campaign focused on baggy denim, Pacsun brought influencers to the Hudson Valley for a day of denim-related activities, also in July. In February, watch dealer Frank Adams opened a 7,500-square-foot showroom in Albany focused on Rolex and carrying other brands like Longines and Raymond Weil.
“Upstate New York is an unexpected gem and absolutely on fashion brands’ radar when it comes to a lesser known but equally good spot for luxury shopping,” said Nina Vargas, fashion brand strategist and owner of Los Angeles Fashion Multi-Media, though she lives in New York and is a frequent traveler Upstate. “It’s a well-visited and well-loved place, so it’s no wonder that it is becoming a luxury shopping destination.”
According to Vargas, there are a few hot spots that can’t be missed and are a must-stop. “Hudson is a hot spot. It is buzzing with unique, high-end shops that make you feel like you are right on trend, finding all the latest looks. Kingston’s historic Stockade District offers a very luxe shopping experience, but it leaves out the pretentiousness. Saratoga Springs is the perfect mix of posh meets relaxation,” she said.
Steven Dann, founder of his eponymous fashion boutique with stores inside and outside New York City, said the market Upstate is ripe for expansion compared to the overcrowded and competitive market that is the Hamptons.
“This leads to increased community involvement, increased popularity and less competition,” Dann said. “Because fewer premium brands operate in the Upstate, there is a chance for a distinctive market presence and brand differentiation. Weekend excursions for city people to places like the Catskills are gaining popularity. This may raise the demand for luxury shopping experiences.”
Talk of the Hamptons’ overcrowding in the retail sector has been ongoing since at least 2021 and rents have only gotten more expensive. And while the Hamptons are likely going to continue to be a shopping destination, areas like the Hudson Valley may not be far behind.
“Bottom line, the Hamptons will always be a hot spot for fashion,” Vargas said. “It will also always have a rush of people who love to shop and are willing to buy. That is appealing for brands because the clients are there and will always be there. However, everyone loves a chic hidden gem spot that becomes a not-to-miss find. That clientele becomes loyal, and you will see them over and over again. For brands, that alone becomes very appealing.”
Stat of the week
Double the profits.
That’s what David Ting, CTO of the $100 million eyewear brand Zenni was able to achieve last year after Zenni’s revenue had halved the year before. And he did it while cutting Zenni’s ad budget and throwing out many of the old methods the brand had used for years around marketing and product design. In addition, he championed using generative AI, cutting out ad channels that weren’t seeing good ROI and rethinking the brand’s approach to product imagery. Glossy will have more coverage of how Ting has transformed Zenni since his appointment in late 2022 later this week.
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