Daily LInks
1. Top influencer Ferragni fined $1.2M for misleading Christmas cake advert. Companies controlled by top Italian fashion influencer Chiara Ferragni must pay a fine of $1.18M for misleading customers over charity donations linked to sales of a Christmas cake, Italy’s antitrust authority said. – Read More on Reuters
2. States are lagging in tackling political deepfakes, leaving potential threats unchecked heading into 2024. Just three states enacted laws related to those rapidly growing policy areas in 2023 — even as the size, scale and potential threats that AI and deepfakes can pose came into clearer view throughout the year. – Read More on NBC
3. ‘No circuit split’ — Herbal Brands exhorts Supreme Court to skip Amazon reseller case. Herbal Brands opposes Supreme Court review of a 9th Cir. decision allowing the company to sue five Amazon resellers in Arizona for alleged trademark infringement. Its primary argument: The Amazon resellers are asking the justices to decide a question that the case does not present. – Read More on Reuters
4. H&M Sales Drop as Consumer Demand for Fast Fashion Wavers. Sales fell 4% in the three months through November at constant currencies, the company said Friday, in line with analysts’ expectations. – Read More on Bloomberg
5. How much did you say it costs, $40,000? I’ll take it! Luxury buyers are becoming younger thanks to social media, installment payments and resale platforms; they devour classic and exclusive articles whose greatest appeal is the fact that they are expensive. – Read More on El Pais
6. Second-hand luxury: handbag resale market tests pricing power. The bags that best hold their value tend to be those that were more expensive to start with, according to data from broker Bernstein, based on Rebag’s Clair report. – Read More on the FT
1. Where did Farfetch go wrong? “The cash burn has been too high, they will have to refinance . . . [and] if they don’t secure refinancing soon, survival may not be guaranteed.” – Read More on FT
2. Luxury slowdown prompts fears of inventory pile-up over key holiday season. Conflict in the Middle East added geopolitical uncertainty to a luxury industry outlook already clouded by inflation, with shoppers in the U.S. and Europe tightening their purse strings while expectations for a strong post-pandemic rebound in China were derailed by a property crisis. – Read More on Reuters
3. “Average customer doesn’t care terribly much about sustainability” says LVMH US head. “Sustainability is something we do not because we think our customers care – we do it because it is existential to our business.” – Read More on Dezeen
4. COVID Tested Global Supply Chains. Here’s How They’ve Adapted. The Biden Administration has continued former President Trump’s tariff policies aimed at Chinese goods, while also offering incentives that encourage American companies to bring manufacturing operations back from China. – Read More on HBS
5. The state of supply chain sustainability. Supply chain managers indicated that investors are far and away the fastest-growing source of pressure to improve their sustainability, followed by governments and international governing bodies, corporate buyers, company executives, end consumers, and current and prospective employees. – Read More on MIT
6. What It Actually Takes to Make Your Products More Sustainable. Redesigning your existing SKUs to be more eco-conscious isn’t a simple task–but it is one that businesses of all sizes can successfully navigate. – Read More on Inc.
1. European luxury labels’ distaste for discounts frustrates Farfetch ambitions. Its longer-term challenge is a drive among labels to seek greater control of their products, usually at their own retail boutiques – a strategy aimed at avoiding discounts that third party retailers like Farfetch rely on to attract shoppers. – Read More on Reuters
2. They spent big to be B Corps. Now they’re questioning the do-good corporate status symbol. An increasing number of B Corps are voicing concerns about the standards used to assess members, raising questions about rapid growth in the number and size of companies being certified. – Read More on LA Times
3. RELATED READ: Chloé Is Luxury’s First B Corp, What Does the Popular Certification Really Entail? The reality behind B Corps can be more complicated that meets the eye given that “B Corp standards are not legally enforceable, and neither a company’s board nor the company, itself, is liable for damages if it fails to meet them.” – Read More on TFL
4. Why the AI Act was so hard to pass. Unsurprisingly, OpenAI (a company known for refusing to disclose details about its work), Google, and Microsoft all lobbied the EU to water down the harsher regulations. Those attempts seemingly paid off. – Read More on the Verge
5. Rebag CEO sees ‘tension’ in luxury market. Gorra says that less spending in the firsthand luxury market directly impacts the resale market, noting “we [resale retailers] are a consequence of some of the trends that you see in the firsthand market.” – Read More on Yahoo
6. After liquidating stores, bankrupt retailers are staging a comeback. Months after shuttering 115 locations earlier this year due to its parent company Bed Bath & Beyond going bankrupt, BuyBuy Baby unveiled plans last month to reopen 11 closed locations. And, off-price department store Century 21 reopened its flagship location in New York this May. – Read More on Modern Retail
1. European Retailers Try On Second-Hand Fashion. Clothing retailers have been attracted into the second-hand market by a combination of consumer demand and sustainability concerns but, while the market is expected to grow at a fast clip in the coming years, analysts caution that profitability looks set to be challenging for now. – Read More on WSJ
2. Amazon asks federal judge to dismiss the FTC’s antitrust lawsuit against the company. In its 31-page filing made in a federal court in Washington state, Amazon pushed back, arguing the conduct that the FTC has labeled anti-competitive consists of common retail practices that benefit consumers. – Read More on ABC
3. RELATED READ: FTC Accuses Amazon of “Illegally Maintaining Monopoly Power” in New Lawsuit. One of the most striking cases to be initiated under the watch of FTC Chairwoman Lina Khan, the FTC claims that “by stifling competition on price, product selection, quality, and by preventing its current or future rivals from attracting a critical mass of shoppers and sellers, Amazon ensures that no current or future rival can threaten its dominance.” – Read More on TFL
4. Unilever Faces ‘Greenwashing’ Probe by UK Watchdog. The maker of Dove soap and Cif cleaner may have been overstating the environmental qualities of certain products through the use of “vague and broad” claims, unclear statements and natural looking images and logos. – Read More on Bloomberg
5. Can Sustainability Drive Innovation at Ferrari? “We want our car to be really highly personalized. We want our car to deliver a unique emotional experience. We want our car to be sustainable. And we want our car to be culturally relevant.” – Hear More on HBR
6. Macy’s Billion-Dollar Question: What’s More Valuable, Real Estate or the Business? The bidders haven’t spelled out their intentions with the company and its operations. Investors in years past have said Macy’s ownership of hundreds of stores and real-estate parcels was as valuable as the retail business, if not more so. – Read More on WSJ
1. Macy’s Investors Reportedly Launch $5.8 Billion Bid to Take Retailer Private. The report says these investors believe Macy’s is undervalued on the public market and have said they would raise their offer, subject to due diligence. – Read More on PYMNTS
2. The World’s Most Anonymous CEO Is About to Take Center Stage. Sky Xu, the founder of fast-fashion juggernaut Shein has managed to stay out of the spotlight despite his company’s meteoric rise. With an IPO looming, he likely won’t remain under the radar for much longer. – Read More on WSJ
3. When Push Comes to Shove, Amazon Does Cut Prices. Starting next year, its commissions on sales of cheap apparel are dropping from 17% to as low as 5%, it announced last week. The reason, while not explicitly mentioned by the e-commerce giant, is the Chinese fast-fashion retailer Shein. – Read More on Bloomberg
4. Luxury Brands Seek Discreet Ways to Move Goods During Slowdown. Off-price outlets have become increasingly popular. These outlets can shift meaningful amounts of stock while offering brands the discretion of offline prices. – Read More on PYMNTS
5. RETRO READ: As Unsold Goods Continue to Mount, the Off-Price Market is Coming into View. The result of the growing mound of unsold merchandise will be a field day for a select few: off-price retailers and resale entities. The T.J. Maxxes and Marshalls of the world and the growing number of digitally-native resale sites are being presented with “the greatest buying environment for off-price in a decade.” – Read More on TFL
6. CIOs grapple with the ethics of implementing AI. With ethical considerations around AI use increasingly top of mind, IT leaders are developing governance frameworks, establishing review boards, and coming to terms with the difficult discussions and decisions ahead. – Read More on CIO
1. The fashion world’s net-zero carbon emissions goal hinges on big brands sharing the cost. “The scale of the decarbonization challenge completely dwarfs the funds available,” says Vidhura Ralapanawe, EVP of Hong Kong-based fashion manufacturer Epic Group. – Read More on SCMP
2. Luxury stores are burst with unsold stuff. Luxury brands will never pile it high and sell it cheap because they are protective of their reputations for exclusivity. Plus, one of their old tricks for making leftover inventory vanish—burning it—has become taboo. – Read More on WSJ
3. Chanel braces for ‘tougher’ year ahead, fashion chief warns. The company’s top spenders are continuing to splash out, but high inflation in the US and Europe and record youth unemployment in China have resulted in a decline in store visits and purchases from first-time and occasional buyers. – Read More on FT
4. How tariffs on clothing discriminate against women. The tariff burden on women’s apparel was $2.77 billion more than on men’s clothing in 2015, and it’s likely grown since then. – Read More on Axios
5. Analyzing the ITC’s impending import ban on Apple watches. A limited exclusion order bars Apple from importing the infringing products into the U.S. A cease and desist order precludes Apple from continuing to sell infringing products that were previously imported. Both orders go into effect on Dec. 25. – Read More on Reuters
1. European fashion industry faces scrutiny over Uyghur labor. A “substantial volume” of clothing coming into the European Union likely contains materials sourced from Uyghur forced labor, according to a new report. – Read More on Yahoo
2. Brands are blaming Temu & Shein for poor business performance. In August, Gap’s EVP mentioned that Shein was one of several competitors “gaining share” and “compet[ing] with our customer. We have a lot to do there to keep winning in that space.” – Read More on Modern Retail
3. EU’s AI Act could exclude open-source models from regulation. The European Union’s landmark AI Act may exempt open-source models – i.e., the free and open sharing of software code, allowing anyone to contribute to upgrading it or resolving bugs – from strict regulation. – Read More on Reuters
4. Shopping for Luxury Online Has Fallen Out of Fashion. Muted e-commerce sales aren’t necessarily a bad thing for luxury brands. They still prefer customers to come to their fancy stores, which double as a marketing tool. – Read More on the WSJ
5. Shein IPO: What it could mean for the fashion industry. “When I talk about regulations, I think I’m more interested in directional positioning. For example, pushing recycling products so that recycling capabilities are more available to customers.” – Read More on Fast Co.
6. You Need a Generative AI Strategy. “The more you can start getting your organizations ready now, then you’ll be ready for the next transformation. Right now, there’s a very specific set of technology that AI is based on. That will almost certainly be different in 5-10 years.” – Hear More on HBR
1. Sustainable Raw Materials Will Drive Profitability for Fashion and Apparel Brands. Brands that act now to secure a preferred-raw-materials supply for the future can, on average, see a 6% profit uplift after five years. – Read More on BCG
2. Return of rich tourists and weak yen helps Japan escape luxury downturn. For LVMH, the world’s largest luxury group and owner of Louis Vuitton, Japan is the fastest-growing region across its 75 brands, reporting sales growth of 31% in the country in the first nine months of the year. – Read More on FT
3. Disputed landmark AI rules face crunch EU talks. If agreed, the EU’s first-of-a-kind AI Act, which was proposed by the European Commission two years ago, could serve as the benchmark for countries seeking an alternative to the United States’ light-touch approach and China’s interim rules. – Read More on Reuters
4. RELATED READ: Global AI Regulations: What to Expect From the U.S., Europe & China. The U.S. and China are vying for a foothold in the regulatory arena. President Biden, for instance, issued an executive order requiring AI manufacturers to provide the federal government with an assessment of their applications’ vulnerability to cyber-attacks, the data used to train and test the AI and its’ performance measurements. – Read More on TFL
5. Amazon Targets Shein With Fee Cuts for Cheap Apparel Sellers. Amazon.com Inc. is sharply cutting fees for merchants selling clothing priced below $20, a sign it’s hunkering down for a price war with Chinese fast-fashion upstart Shein. – Read More on Bloomberg
6. New lawsuit against university alleges NIL inequities under Title IX. The lawsuit could provide the first ruling on whether NIL activities — including funding from collectives — are subject to the federal statute requiring gender equity in college sports. It’s one of the biggest unanswered questions in the NIL era. – Read More on MarketWatch
1. The Rise of Temu’s Chinese Parent Will Reshape E-Commerce. At a time when Chinese consumers are more price-sensitive, PDD’s hybrid model gives it more direct sway over pricing—a key advantage in China. – Read More on the WSJ
2. Lawmakers ramp up scrutiny of Shein, call for proof it doesn’t use forced labor after retailer files for IPO. Rep. Blaine Luetkemeyer, R-Mo., says that Shein “warrants extreme caution from regulators, customers and investors” as the fast-fashion powerhouse sets the stage to start trading on U.S. exchanges. – Read More on CNBC
3. Apparel brands finally shift to deeper supplier relationships. Brands recognize the value of partnering with suppliers but have been slow to act. Our latest survey finds that brands are finally shifting to transform the apparel industry. – Read More on McKinsey
4. X Corp calls ‘X’ trademark lawsuit a ‘shakedown’ in dismissal bid. X told the court that its rebrand would not cause confusion with X Social Media, arguing that it has “peacefully coexisted for years with hundreds of other registered X-formative trademarks” and that no trademark owner has “exclusive rights” to the letter. – Read More on Reuters
5. Talent Management in the Age of AI: The smartest companies today are starting to redefine jobs as a collection of skills and tasks — instead of just titles — and are considering how those skills and tasks will evolve as AI advances. – Read More on HBR
1. How green hushing is leaving companies vulnerable to deep fakes. These convincing fabrications extend far beyond political mischief into the corporate world, where realistic video forgeries of corporate executives can do serious damage to their own and their company’s reputations and businesses. – Read More on Reuters
2. Breaking record after record: The stellar figures of the ‘premium’ market. Experts are not denying that there may be a slowdown, and that the party is over. “The industry is well positioned for the long term.” – Read More on El Pais
3. Europe’s world-leading artificial intelligence rules are facing a do-or-die moment. The process has been bogged down by a last-minute battle over how to govern systems that underpin general purpose AI services like OpenAI’s ChatGPT and Google’s Bard chatbot. – Read More on ABC
4. Can an AI chatbot be convicted of an illegal wiretap? Old Navy is facing a lawsuit in the Central District of California alleging that its AI chatbot participates in illegal wiretapping by logging, recording and storing conversations. – Read More on CNBC
5. RELATED READ: Court Refuses to Toss Out Chatbot-Centric Wiretapping Lawsuit Against Old Navy. Old Navy cannot escape a lawsuit accusing it of running afoul of the California Invasion of Privacy Act (“CIPA”) by way of its use of a sophisticated chatbot feature on its e-commerce site. – Read More on TFL
6. McDonald’s Crocs Merch Shows the Value of Brands With Cultural Cachet. Crocs, T-shirts, necklaces, dolls — you name it. If a company has the cool factor, consumers will buy their branded merchandise. – Read More on Bloomberg