Daily Links

1. Billionaire Maezawa Bets on Japan Apparel Brands: In a set of filings, Maezawa disclosed stakes making him the third-largest shareholder in fashion retailers United Arrows Ltd. and Adastria Co. The holdings are worth a combined 7.6 billion yen ($71 million). – Read More on Bloomberg

2. What Happens to All of the Unsold Clothes? Amazon said it is rolling out a program in France that allows its third-party merchants to give their unsold stock in Amazon warehouses directly to charity. “We hope this will drastically reduce the destruction of product, with the objective of bringing this number as close to zero as possible,” Amazon said. – Read More on WSJ

3. What will fashion shows look like post Covid-19? With the coronavirus pandemic leading to events being postponed or cancelled, people in the fashion world have been finding creative new ways to use technology. One such person is world-renowned visual designer Tupac Martir, who creates immersive mixed reality experiences and use computer generated models to display the clothes. – See More on BBC

4. RETRO READ: New French Legislation Prohibits the Destruction of Unsold Goods, Including Clothing. Thanks to sweeping new legislation, French companies are slated to be subject to more than 100 new sustainability-centric provisions, such as those that require the systematic phasing out of automatic paper receipts and single use plastic in fast food restaurants, for instance; followed by the outright ban on all single-use plastics by 2040. – Read More on TFL

5. What COVID-19 did to customer loyalty: Consumers recently have become more loyal to the brands they shop, but COVID-19 and widespread products shortages mean that they are not diversifying. A McKinsey report found that more than 75% of consumers have tried new brands, places to shop or methods of shopping so far during the pandemic. Product availability was the number one reason consumers sought out new retailers or products in the past couple months, followed by better prices and promotions. – Read More on Retail Dive

1. Sneakers, Athleisure And Post-Pandemic Chic Look Healthy: What’s kept the sneaker market moving during lockdowns? “Running was a theme among the top-performing brands year-to-date through June. Brooks had a high teens increase, Puma grew in the high singles, Hoka ONE ONE was up more than 75 percent and On Running sales more than doubled.” – Read More on PYMNTS

2. In Luxury Goods, Pandemic Shows Bigger Is Better: Analysts say the damage caused by the pandemic, coming after years of declining results for Tod’s and Ferragamo, could raise pressure on the companies to seek outside investment or sell themselves to one of the industry’s conglomerates: LVMH Moët Hennessy Louis Vuitton, Kering, Richemont or Capri Holdings. The giants control much of Italian luxury-goods production. – Read More on the WSJ

3. Here’s Why Some Fake Rolexes Are So Accurate: It’s no secret now that if you want to buy a hard-to-find Rolex stainless steel sports watch and you don’t want to spend more than £1,000, you can quite simply buy a fake. These superclone watches are accurate to the finest detail, at least, within the realms of any normal person’s expectations, and it begs the question: how can today’s fake watches be so accurate? – See More on WatchFinder (via Redef)

4. RETRO READ: What Makes a Fake a Fake? A Dive Into Rolex’s Definition of a “Counterfeit” Watch. Courts are willing to consider that the addition of non-genuine parts to genuine Rolex watches that continue to bear original Rolex trademarks falls within the bounds of the technical definition of a counterfeit as set out by U.S. trademark law since “the watches on which those trademarks appear are no longer Rolex’s product.” – Read More on TFL

5. Canada Goose Quickens China Growth to Reach Stuck-at-Home Buyers: The Toronto-based parka maker said Tuesday it is doubling its footprint in mainland China this fiscal year by adding four stores, out of seven planned openings globally. After suffering the world’s first Covid-19 outbreak, China’s economy is now rebounding faster than North America. – Read More on Bloomberg

6. Amazon to hold virtual seller conference as lawmakers examine its power over third-party merchants: The conference comes as regulators set their sights on the ways that Amazon treats and competes against the third-party sellers that now account for approximately 60% of Amazon’s physical sales. In the last quarter, Amazon said third-party sales grew 52% year over year, compared with year-over-year growth of 23% in the same period last year. – Read More on CNBC

1. Fashion businesses are no longer a worthwhile investment. Nearly every flaw in the fashion system can be traced back to a single issue: inventory. The reliance on upfront, bulk production requires time and valuable resources to be allocated before consumers are able to indicate a preference for a style. – Read More on Fortune

2. US online shopping forecast to beat 2019 total by October: American shoppers are on course to surpass total online spending in 2019 as soon as early October, analysts forecast. At current growth levels, Americans will have spent more online than they spent for all of 2019 by October 5 – with Amazon Prime Day, Black Friday, Cyber Monday and Christmas to come. “We just trained the consumer to shop in a different way. They have a habit of buying things without ever having to leave their house.” – Read More on the FT

3. Luxury brands turn from Hong Kong to mainland Chinese consumers still eager to shop: “A lot of travelers to Hong Kong are from lower-tier cities (who) don’t have access to luxury stores in their hometowns. Livestreaming is a way to reach them. Online is another way to reach them.” – Read More on CNBC

4. Mark Cross CEO Ulrik Garde Due Talks Launching a Luxury Bag During a Pandemic: “I really believe there is an urge from the luxury consumer to buy into authentic quality brands. I’m seeing the same kind of scenario from a luxury consumer in 2008 and 2009 where during that recession we saw consumers leaning more towards long-lasting products, with the right quality-to-price ratio and looking for investment pieces.”Read More on Forbes

5. Wall Street’s COVID Bonanza Grew From the Perfect Storm of Fear and Greed: American Airlines was able to raise $1.2 billion on July 23—from Goldman Sachs—by, somewhat incredibly, pledging as security for the loans the “American Airlines” trademark, the “aa.com” domain name, in several jurisdictions, and the airline’s gate slots at LaGuardia Airport and at Washington’s Reagan National. – Read More on Vanity Fair

6. How a pandemic upended the global diamond industry: Prices for high quality one-carat diamonds are rising steadily and are currently around 12 percent higher than at the start of the year, in contrast to still-depressed prices for lower-quality stones of the same size, data from trading platform RapNet shows. “If you are in that top end, the demand is still there because the people who go for these type of goods feel the pressure of the market downturn less.”  – Read More on Reuters

1. Flip-flop sales surge as casual and comfortable fashion wins lockdown: Searches for flip-flops have increased 53 percent since June, according to online fashion search business Lyst, a surge that is symptomatic of the new ease that has taken over our wardrobes – elasticated waists are in and flips flops are their footwear equivalent. – Read More on the Guardian

2. The Covid-19 tie-dye boom is real: Google searches for “tie dye” usually climb a little in the summer, but they hit their all-time peak this year. There were 2.5 times more searches in August 2020 than the previous peak in July 2019 (with the debut of Starbucks’ tie-dye Frappucino). Consumers are searching for tie dye at nearly triple the rate of last summer. – Read More on Quartz

3. Garment workers seen losing up to $5.8 billion in wages during coronavirus: With the pandemic leading to store closures and falling sales, many retailers cancelled orders or demanded discounts from suppliers, jeopardizing the livelihoods of tens of millions of workers in the sector. – Read More on Reuters

4. Cosmetics Brands Face Revenue Drop as Department Stores Close: Estée Lauder, Amorepacific Group Inc. and Kao Corp. are looking to manage risk and diversify how their products are sold as department stores represent a sizable share of their revenue “There will continue to be this shift over the next few years in the U.S. in terms of the mix of brick and mortar vs. online and we will manage through that.” – Read More on the WSJ

5. When Will Consumers Feel Safe? In early August, statistically significant differences between generations started to emerge for the first time, with millennials more likely to be comfortable with nearly every activity polled than Gen X and baby boomers. And while the generational gap largely remains, millennials reported statistically significant drops in comfort with regard to a few activities, including going to shopping malls, museums and concerts. – Read More on Morning Consult

6. Why China Will Become the Driving Force of Luxury: The EU and the US have a combined population of around 780 million with an aging demographic. China is home to a much younger 1.4 billion people and has a higher annual population growth than the US and Europe combined. While the average income per capita in China is still significantly lower than in the US or Europe, it’s catching up fast, and more than a hundred million new Chinese luxury consumers will enter the market over the next decade. – Read More on Jing Daily

1. Retail profits won’t rebound until 2022 at the earliest, Moody’s says: Companies in the industry remain under “extreme stress” related to COVID-19 and the ensuing closures, increased costs and other pressures, Moody’s analysts said. Even off-price retail – which has seen significant growth over the past decade –faces an outsized decline in profit as a sector without a significant e-commerce channel and with few remedies to store closures and traffic declines. – Read More on Retail Dive

2. Amazon and Mall Operator Look at Turning Sears, J.C. Penney Stores Into Fulfillment Centers: Simon Property Group Inc. has been exploring with Amazon the possibility of turning some of the property owner’s anchor department stores into Amazon distribution hubs. Amazon typically uses these warehouses to store everything from books and sweaters to kitchenware and electronics until delivery to local customers. – Read More on the WSJ

3. The luxury sector has been hit hard by the virus. And what consumers value has changed: Goods that are set to do well post-pandemic are those that might be called “quiet luxury.” “We’re already seeing the resurgence of quiet luxury and understatement, as evidenced in the more timeless aesthetics of brands such as Hermès, Prada and Bottega Veneta.” – Read More on CNBC

4. Kenya Local Design Boom Still Far Off Despite Used-Clothing Ban: The ban in March, as a measure to curb the spread of the coronavirus, supports government plans to promote the local textile and apparels industry, which the statistics agency estimates to be operating at more than 30 percent below capacity. Kenya earned about $315 million from apparel and $171 million from textiles in 2017. – Read More on Bloomberg

5. RETRO READ: Rwanda Does Not Want Our Used Clothes and is at a Standoff with the U.S. as a Result: Long viewed as a way for consumption-happy Americans to help boost the well-being – and wardrobes – of those less fortunate, the used clothing trade has put a significant rift between the U.S. and Rwanda. In recent years, Rwanda has emerged as the most aggressive country working to phase out imports of secondhand clothing and shoes. In 2016, the nation raised its per-kilogram import tax in 2016 from 20 cents to $2.50, amounting to what SMART calls “a de facto ban.” – Read More on TFL

6. Brunello Cucinelli: The Humanitarian Side Of Fashion. “ The harmony between profit and giving back accounts for one of its most meaningful humanistic moments … There is no plan to recover this money, but we view this gesture as some kind of “investment” for the benefit of Creation, its beauty and its conservation. For example, an esteemed customer of ours might become aware of it and consider this symbolic gesture as a good omen for a new and lasting new time.” – Read More on Forbes