Daily Links

1. LVMH Has Powered Through the Pandemic, and China’s crackdown on excessive wealth may not change that: “Most of the luxury brands will tell you that high-net-worth individuals in China probably account for a maximum of 10 to 15% of their sales.” – Read More on Barron’s

2. China forcing fashion industry to silence concerns over ‘dirty’ cotton: The escalating conflict shows how difficult it can be for brands to satisfy demands from western consumers and human-rights groups for greater sustainability without risking open war with China, which has become more willing to wield its clout to defend its policies. – Read More on Japan Times

3. Pandemic spurs sales of luxury goods, counterfeits: There are many reasons why Koreans love luxury goods, but the biggest is scarcity. In the case of Chanel, the French high-end fashion house already raised the price tags of its luxury items three times this year ― in February, July and September ― and it is preparing for another increase in November. – Read More on Korea Times

4. Mushroom Leather Is About to Bloom for Fashion: Following a $60 million Series D funding round in March, Ecovative Design, a pioneer in mycelium material science, is planning to bring its mushroom biofabrication technology directly to fashion, footwear and accessories. – Read More on Yahoo

5. RELATED READ: As Leather Alternatives Find Fans in Fashion, Companies are Clamoring for Protection. In a nod to the mushroom-based material, MycoWorks is seeking to register the word “REISHI” for use in connection with leather goods, clothing and footwear, and upholstery, among other things. Its application is currently pending before the European Union Intellectual Property Office. – Read More on TFL

6. Retail Sales Rise, Showing Strong Consumer Demand, Higher Inflation: Sales at retail stores, restaurants and online sellers rose a seasonally adjusted 0.7% in September from the previous month, the Commerce Department said Friday. The rise in sales reflects persistently strong demand and higher consumer prices. – Read More on the WSJ

1. On-Demand Manufacturing Could Dramatically Cut Restock Times: “This idea that you can stitch together the capacity that’s needed to begin on-demand adoption at a truly enterprise scale is not going to come from a single manufacturing partner, [but] from disparate capabilities of a lot of specialized manufacturers.” – Read More on PYMNTS

2. Opinion: Luxury fashion must ditch leather to be truly ethical. The problem is that leather is the single most important driver of revenue and profits for many luxury brands, and the soft luxury goods sector at large. It is responsible for about half of sales at Kering, Hermes and Prada. – Read More on the FT

3. URBN achieves the retail-resale-rental trifecta with launch of Nuuly Thrift: URBN’s Nuuly rental service added a resale service called Nuuly Thrift, making URBN one of the first major fashion companies to house retail, resale and rental businesses under one roof. – Read More on Modern Retail

4. RELATED READ: URBN’s rental arm is not without legal woes, though … Urban Outfitters Cannot Escape Le Tote’s Trade Secret Claims Over “Copycat” Rental Venture, Nuuly. A Pennsylvania court will not toss out the trade secret misappropriation claims that Le Tote lodged against Urban for allegedly gaining access to an array of valuable information under the guise of a potential acquisition, and then abandoning the M&A talks and launching a copycat rental service of its own” using that “stolen” info. – Read More on TFL

5. AI Regulation Is Coming: For years public concern about technological risk has focused on the misuse of personal data. But as firms embed more and more artificial intelligence in products and processes, attention is shifting to the potential for bad or biased decisions by algorithms. Inevitably, many governments will feel regulation is essential to protect consumers from that risk. – Read More on HBR

6. The Steady Decline of the Facebook Brand in America: Facebook’s reputation in the U.S. has been trending downward for years, fueled by data-sharing and misinformation scandals. Yet, that’s not slowing down daily usage or negatively impacting brands that advertise on the platform. – Read More on Morning Consult

1. Not so fast! Supply bottlenecks strain fashion chains: A business model that aims to bring new styles into stores every three or so weeks and where shoppers expect to see fresh, reasonably priced merchandise on each visit is discovering its limitations. – Read More on Reuters

2. Lulu’s Fashion files for IPO: Lulu’s Fashion Lounge Holdings Inc. has filed for an initial public offering, the latest retailer seeking to tap equity markets to fuel its growth. The fast-fashion company revealed that it has been profitable this year. – Read More on MarketWatch

3. LVMH Sends Mixed Signals on Chinese Luxury Spending: LVMH management said Beijing’s new focus on wealth redistribution isn’t necessarily a bad thing for the well-heeled consumers that buy its goods. Up to 80% of luxury sales in China are made to middle-class rather than ultrarich shoppers. – Read More on the WSJ

4. Supply chain issues “not as big a factor” for luxury retail: “There are some segments of luxury, like watches and jewelry, where there’s some parts scarcity. But that’s a different supply chain challenge than the one that we’re seeing hitting toys and other mass manufactured goods.” – Read More on Yahoo

5.  Could TikTok force the fashion industry to finally acknowledge its wastefulness? Donating or selling these products at a discount would undermine the very assumption upon which the luxury industry is built — that its products are more expensive because they’re more valuable. – Read More on Mic

6. Video Games Are Becoming a High-Fashion Playground: Increasingly, gamers want their virtual characters to look good, even if their sole mission is to stay alive. So, virtual cosmetics—as in the clothes, hair, and makeup with which you customize your character—are becoming important facets. – Read More on Vogue

1. How Olivier Rousteing Made Balmain a Revolutionary Force in Fashion: For years, the fashion establishment was slow to warm to Rousteing’s reorientation of the brand. During the long lockdowns, though, as life and work across the world became screen-mediated, Rousteing’s vision started to seem more practical and naturalistic. – Read More on Vogue

2. What NFTs Can Learn from Streetwear: Crypto might be one of the most significant cultural trends of the last ten years that isn’t influenced by adolescents at all. NFTs appear to be of little interest to many teenagers. – Read More on Medium (via Adam Bomb Squad)

3. Social commerce closes in on e-commerce as preferred channel for SEA consumers: “Southeast Asia already had some of the most avid social media users in the world, and spurred by the pandemic, they’ve taken to social platforms for their shopping needs at an exhilarating pace.” – Read More on the Drum

4. RELATED READ: Brands Are Reaping Rewards, Facing Risks Due to the Rise of the Nearly $500 Billion Social Commerce Market: 44 percent of social shoppers said that they had made three or more online purchases in the past month after seeing social media posts or ads. – Read More on TFL

5. How strong missions helped companies like Marriott and Athleta survive the pandemic: The pandemic underscored just how important a company’s mission and values can be, said executives, particularly when everyone is aligned on an underlying purpose and setting their goals and initiatives accordingly. – Read More on Fortune

6. The New Balance Between E-Commerce and In-Store Shopping: Now that shoppers see e-commerce as a more viable option, the stakes are higher for in-store shopping. Shoppers may be less willing to wait, brave long drive times or parking issues, and scour through multiple retail stores for the item they need. – Read More on Forbes

1. The myth of the high-growth fashion startup. ThredUp, Poshmark, and Warby Parker have gone public this year, but their financials show how hard it is to be profitable and scale at the same time. Meanwhile, Everlane, Away, and Glossier have collectively raised upward of half a billion dollars in venture funding, so their investors may be looking for a payday soon. – Read More on Fast Co.

2. ASOS boss exits as fast fashion retailer warns on profit: The British online fashion retailer, parted ways with CEO Nick Beighton on Monday as it warned that supply chain pressures and consumers returning to pre-pandemic behavior could reduce 2022 profit by over 40%. – Read More on Reuters

3. ‘Made in the USA’ brands fight for your attention online: Apparel has a strong future in e-commerce, with people in the US buying more than 46% of their clothing and accessories online in 2020. However, domestic goods only accounted for 2.3% to 3.5% of all apparel sales in the US in 2020, according to the American Apparel and Footwear Association. – Read More on CNET

4. Michael Jordan’s Rookie Nike Sneakers Expected to Sell for at Least $1 Million: The high-end sneaker auction market has exploded in the past few years.  The sneaker resale market itself is expected to reach $30 billion by 2030, and Sotheby’s is trying to carve out the top 5% of the high-end sneakers market. – Read More on the WSJ

5. How Peloton builds a community around health and wellness to craft its brand: Peloton uses its now-famous team of instructors to connect with members. The trainers are active across social media platforms and frequently interact with members online. – Read More on CNBC