Will ‘drops’ yield more fashion buzz or busts?

On Sept. 4, Macy’s held its first “watch drop” as part of a plan to offer one to four exclusive, limited-edition watches every Wednesday over the next four weeks.

Macy’s will sell the watches online and in stores to celebrate a special moment in each watch brand’s history, such as an anniversary.

“Watches are a great gift. They’re even better as collectibles,” Michelle Wang-David­son, Macy’s group VP and divisional merchandise manager of watches and fashion jewelry, told Women’s Wear Daily.

The watch drop takes a page from the “drop culture” trend pioneered in the streetwear category in the U.S. by Supreme and Nike. Hyped on social media, the limited-edition releases often sell out immediately and appear later on eBay at much higher prices.

A number of fashion labels, including Givenchy, Moncler, Balenciaga, Fendi and Burberry, have also recently jumped on the drop bandwagon and have seen crowds snaking around their stores as a result. The drops build buzz with Instagram-worth moments, bring a steadier stream of newness and help brands better connect with young consumers. Barneys New York held a well-attended drop event at its Manhattan flagship last fall.

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A Women’s Wear Daily article on the trend, however, points to a number of potential risks including over-saturation as more limited-edition capsules flood the marketplace. Some retailers talking to WWD were also frustrated that the marketing focus is increasingly placed on drops rather than in-line product. Drops also tend to attract re-sellers to stores rather than loyal customers.

An article from the Business of Fashion further noted that shifting to delivering product in weekly or monthly drops requires a more agile supply chain. Developing fresh trends also often takes time, and that works against the quick sell-out nature of drops. Some market observers also question the degree to which luxury fans will continue to track and attend drop events.

Bobby Hundreds, co-founder of Californian streetwear label The Hundreds, told Business of Fashion, “Just because it works for streetwear, doesn’t mean it will work for everybody else.”

• The Watch Destination – Macy’s
• Macy’s ‘Watch-Drop’ a Play on Exclusivity – Women’s Wear Daily
• The Drop Evolves — From Streetwear to Luxury – Women’s Wear Daily
• Can Barneys tap into ‘drop’ culture? – RetailWire
• Is Luxury's Love Affair With 'Drops' More Than Marketing? – Business of Fashion