Daily LInks
1. Airlines Aren’t the Only Casualties of Empty Airports: Luxury brands are also dependent on purchases made in travel hubs. Last year, 6% of all global luxury sales were made in airports, according to Bain estimates. – Read More on WSJ
2. RELATED READ: Travel Retail, a Luxury Cash Cow, Down as Much as 70% in Some Hubs. For luxury brands, the risk is sizable. Coresight put airport retail sales at $44 billion in 2019, and Switzerland-based Dufry projects the value of the segment to inch towards $67 billion over the next few years. – Read More on TFL
3. How apparel retailers can deal with excess inventory: The current crisis has created a unique challenge: retailers have a huge amount of inventory in stores that they can’t sell right now, and it’s unclear just how much consumer demand there will be the rest of the year. – Read More on Modern Retail
4. The economic data is even worse than Wall Street feared: “The bottom line is that consumer spending has fallen off a cliff after being relatively solid for a prolonged period of time.” – Read More on CNBC
5. Can direct-to-consumer brands survive the COVID-19 apocalypse? Many DTC companies were in trouble before, and now, the key to surviving the downturn will be cold hard cash. Many brands have minimal revenue coming in right now, which means they’ll need to tap financial reserves to continue paying workers’ salaries, office and store leases, and marketing expenses. – Read More on Fast Co.
6. RELATED READ: How Will the Market’s Buzziest Direct-to-Consumer Brands Fair in Light of COVID-19?As “sales continue to shift from nice-to-have products to must-have products,” DTC brands are “preparing to see steep sales declines [with] COVID-19 [potentially being] what puts some of these companies out of business altogether,” various venture capitalists have projected, since most of these brands and their products “fall under the nonessential category.” – Read More on TFL
1. Retailers face another challenge during coronavirus: Handling returns. Many retailers are adjusting return windows to ease customers’ worries about getting their money back, if they shop online for clothing and other items, but longer return windows add another level of complexity to how companies are managing their businesses during the coronavirus pandemic. – Read More on CNBC
2. Preparing Your Business for a Post-Pandemic World: To make smart strategic decisions, you must understand your organization’s position in your environment. Who are you in your market, what role do you play in your ecosystem, and who are your main competitors? You must also understand where you are headed. – Read More on HBR
3. The consumer after COVID-19: “It would seem that the coronavirus is accelerating the structural changes we’ve been seeing across retail and society for the last decade — toward online interaction, toward e-commerce and away from brick and mortar, toward direct-to-consumer away from department stores.” – Read More on Retail Dive
4. Amazon was already powerful. The coronavirus pandemic cleared the way to dominance: The global health crisis has forced 250,000 US stores closed. Meanwhile, Google searches for Amazon are at near-holiday-season levels, as customer spending rises by 35% compared with the same period last year; in-store sales at Walmart skyrocketed in March. – Read More on Vox
5. From Kim Kardashian to Selena Gomez, the perceived trend for wanting to appear black shows no sign of slowing down: “As black women, we are constantly fighting for clear, authentic representation and diversity and then have to face individuals who do blackfishing, individuals who will therefore look ambiguous enough for brands to use them as emblems for diversity.” – Read More on the Guardian
1. The Asian-American Fashion Designers Who Shaped the Industry: The very first Asian-American fashion designers were pioneers such as Anna Sui, Vivienne Tam, Vera Wang and Kimora Lee Simmons — women who launched their labels in a market dominated by Calvin Klein, Bill Blass, Ralph Lauren, Michael Kors, Donna Karan and Marc Jacobs. – Read More on the New York Times
2. From McDonald’s and Disney to Crocs: These are the stocks that analysts predict can make it through what could be a historic economic downturn. Ugly footwear company Crocs saw a surge on the recently-released “Taking Stock with Teens” survey, with its highest ever springtime spot, at number 12 from number 19 last spring. – Read More on CNBC
3. Fashion and the coronavirus: survival of the fittest: Labels that fall somewhere between being a fashion and heritage brand, such as Hermès, will fare better than luxury brands that rely on bold new styles each collection. This is partly because they are far less season dependent, but also because customers are more likely to invest in a durable piece of clothing rather than an extravagant one-off. – Read More on SCMP
4. The vicious cycle of markdowns is set to expire: To eliminate liability that comes with retailers canceling and returning orders, many fashion companies are downsizing their collections, with their survival plans moving to streamlined assortments, with high sell-through at full price. – Read More on Glossy
5. Coronavirus merch: Amusing or offensive? On Instagram, pop-up T-shirt vendors are marketing COVID-19 centric design, while many pandemic-themed shirts that have proliferated on n Zazzle and Spreadshirt, sites that let users create a basic shirt with a few clicks. – Read More on WSJ
1. Independent French fashion labels use coronavirus lockdown to rethink their offerings and prepare for a new world of conscious shopping: Designers expect shoppers to behave differently post-coronavirus. “I think it’s already following a path towards consciousness, sustainability, increased respect for craft.” – Read More on SCMP
2. As Masks Go Mainstream, Fashion Designers Sense an Opportunity: “We will see this become a staple item, as well as fashion—even if to mark this as an era to remember.” Once hard to find, masks will become staples at retail, coming in fashionable patterns, an array of colors, and even in personalized versions. – Read More on Bloomberg
3. This is an economic crisis: According to experts, without significant government intervention, many young British designers and freelancers will be in trouble. “People think the system can move to e-commerce, but it’s not that easy for young designers who are not big businesses to run an e-commerce system that is sustainable for them.” – Read More on the Guardian
4. Retail sales could remain down by double digits through 2021, Fitch says: Fitch Ratings estimates that consumers’ discretionary retail spending will decline by up to 50 percent for the first half of 2020. Adding to the uncertainty is a looming recession, which some analysts think the U.S. has already entered, and mass layoffs that are happening right now. – Read More on Retail Dive
5. Hermès Reportedly Hauled in $2.7 Million in One China Store on Saturday: The Paris-based brand is said to have brought in at least $2.7 million in sales on the reopening day of its flagship store in Guangzhou’s Taikoo Hui last Saturday, as rare bags, including a diamond-studded Himalayan Birkin, were shipped to the location. – Read More on WWD
6. Warehouse workers risk COVID-19 to ship Gucci shades, face cream, sofas: Online sales amount to an understandable “survival strategy” for a sector that is important to consumers, investors and the economy, said Thomas Kochan, a management professor at the Massachusetts Institute of Technology. But staying open also creates an obligation to give workers more say in benefits and protections. – Read More on Reuters
1. Teen spending hits lowest point in nearly a decade as coronavirus concerns grow: Cosmetics spending among females slid to a 10-year low with a more than 26% year-on-year drop, while spending on handbags hit a new overall survey low. – Read More on Retail Dive
2. Brand Marketing Through the Coronavirus Crisis: People will remember brands for their acts of good in a time of crisis. Feel-good content that alleviates anxiety and promotes positive messaging will go a long way to enhancing the brand. However, companies need to show that their contributions are material and not solely for commercial benefit. Consumers recognize authenticity and true purpose. – Read More on HBR (via 2PM)
3. Covid-19 is going to make fashion’s discounting problem much worse: Middle-market designers and retailers, which were suffering most before the outbreak, “will be hit hardest, as cash-strapped shoppers trade down to the value segment for essentials and middle-class consumers turn more to heavily discounted affordable luxury and premium goods.” – Read More on Quartz
4. Outbreak Pushes Japan’s Shoppers to Finally Buy Things Online: Now that the government in Japan – where e-commerce rates have been among lowest of rich economies – is urging consumers and businesses to step up efforts to contain the coronavirus outbreak, shoppers may finally have no excuse but to embrace e-commerce and wean themselves from brick-and-mortar stores. – Read More on Bloomberg
5. Start-up market is ‘stratified’ but it’s ‘the greatest time to start a company,’ PayPal co-founder says: “This is the very best time to be either a late-stage, well-funded start-up, because the competition is thinner … [or] even better perhaps, this is the time to hunker down, go 10,000 feet below ground and build something truly amazing.” – Read More on CNBC
1. Neiman Marcus and J. Crew are among the famous stores that may not survive because of coronavirus: Neiman Marcus and J. Crew are burdened by crushing debt loads. They’re also at risk from declining market share, too many stores, limited online sales and a focus on selling discretionary items, analysts say. – Read More on CNN
2. Gen Z consumers are making companies bend to their will: Appealing to teens these days is as important as ever for businesses. Gen Z makes up 40% of global consumers today, with about $150 billion in spending power in the US alone, according to McKinsey & Company. But online culture has upended the traditional relationship between influencers and influencees. – Read More on Quartz
3. Coronavirus could spell doom for fashion brands as demand and money dry up: Fashion brands rely on sales in department stores to pay their bills. Demand for new product has disappeared, as major retail chains shuttered their stores amid the coronavirus pandemic. – Read More on CNBC
4. Millions of jobs are at risk as fashion and luxury sales fall off a cliff: Luxury good makers and retailers are expected to be amongst those hit the hardest: Sales will decrease as much as 40 percent. Shoppers are expected to gravitate even more toward discounts and low-priced retailers. – Read More on CNN
5. Social distancing is a luxury not everyone can afford:Social distancing is widely credited with slowing the spread of COVID-19. But not everyone has the luxury of working remotely; many people in blue-collar or service jobs still have to go to work outside of the home. – Read More on Fast Co.
1. Back-to-School Season in Jeopardy as Retail Imports Plunge: Some apparel makers have already canceled some orders for the summer. Gap asked suppliers to stop shipping summer product that wasn’t intended for online sales, and to stop production for fall wares. – Read More on Bloomberg
2. How Covid-19 could change fashion and retail, according to experts: “Now what we’re seeing is much more emphasis on core products that have a never-out-of-stock, trans-seasonality to them, because those can be much more profitable for retailers.” – Read More on Quartz
3. How luxury brands rode out the storm in China with digital experiences: From Lanvin and Burberry’s boundary-pushing AR and VR to Louis Vuitton and Prada’s interactive WeChat pop-ups, COVID-19 has actually been a catalyst for brands to refine online and omnichannel strategies. – Read More on TechWire
4. The luxury sector is bracing for the worst sales numbers in its history: Luxury prices have escalated rapidly in recent years but it’s hard to see price increases being sustained with so much inventory to shift. – Read More on CNBC
5. #PayUp Petition Calls for Major Fashion Companies to Pay Garment Factories: Companies withholding their payments has resulted in international garment workers being out of work with no severance, savings or access to health care. An estimated 50 million garment workers will be impacted by COVID-19. – Read More on Yahoo
6. Instagram Draws Surge in Offers of Coronavirus Masks With Potential Risks: Researchers found at least 10,450 accounts on Instagram that have popped up in the past few months selling masks, some of which appear to be scams and most of which aren’t vetted for safety or price concerns. – Read More on WSJ
7. Fast fashion speeding toward environmental disaster, report warns: The Intergovernmental Panel on Climate Change has calculated the fashion industry produces 10% of global carbon dioxide emissions every year, while it is estimated to use around 1.5 trillion liters of water annually. Meanwhile concerns have been rising about pollution, from chemical waste to microplastics. – Read More on the Guardian
1. Five consumer trends that will endure after Covid-19: Some demographics, like older consumers, may have been previously uncomfortable with buying groceries or other goods online, but the coronavirus has forced them to get comfortable. Once they fall into the new routine, and get used to the ease of delivery at their door, such shoppers may be hard-pressed to return to brick-and-mortar, experts say. – Read More on AdAge
2. Wellness Influencers Sell False Promises as Health Fears Soar: This isn’t a new problem. Before the pandemic, influencers were touting supplements as a way to lose weight, increase metabolism, lower blood pressure, and even treat cancer, sometimes without disclosing that they’d been paid for their posts. – Read More on Wired
3. PVH may ‘pack and hold’ inventory until next spring: Calvin Klein and Tommy Hilfiger’s parent company says it may save at least some of its spring and summer inventory, possibly for next season, in order to preserve its ability to sell at full price or close to it, CEO Emanuel Chirico said. – Read More on Retail Dive
4. Virtual Catwalks and Digital Fashion: How COVID-19 is changing the fashion industry. “This is an opportunity to redefine business models and build a more sustainable, progressive future” for the fashion industry. – Read More on Forbes
5. Retail thought it was facing the apocalypse. Then came the coronavirus: “I don’t believe that brick and mortar retailing is ever going to go away, but certainly it will contract considerably and it already has.” – Read More on LA Times
6. Is it ethical to order luxury items for delivery during a pandemic? Are we putting others at unnecessary risk when we order something non-essential? On the other hand, do we as consumers have a responsibility to keep businesses, particularly small ones, afloat right now? – Read More on the National
1. In the Future, All Brands Will Be B Corps: If there’s one lasting change from this crisis, it’s that brands will have to become as much pro-social as they are pro-economic. “We expect our brands to embrace their social responsibility and act on it. Every brand should start thinking like a B Corp.” – Read More on Substack
2. Italian independent fashion labels fight for survival amid lockdown: “If [our factories] reopen soon, I might get the chance to work on a capsule collection, with a limited number of pieces. If not, I doubt we can survive skipping two seasons. Big shops do not wait for a small brand to get back, they just fill the gap with something else.” – Read More on SCMP
3. Who decides what you wear? Meet fashion’s formidable silent force: As the global buying director for Net-a-Porter, the world’s largest multibrand luxury retailer, Elizabeth von der Goltz dictates the products that Net-a-Porter buys – and therefore, what its massive pool of customers buys. – Read More on the Guardian
4. Luxury Retailers Reluctantly Slash Prices Amid Demand Plunge: Neiman Marcus has Tom Ford glasses, which usually sell for about $400, at 50% off on its website. Customers can snag a Derek Lam stripe shirtdress from Saks Fifth Avenue for $237 — 40% off the usual price. Nordstrom is offering a Salvatore Ferragamo slide sandal for $225, down from $375. – Read More on Bloomberg
5. RELATED READ: What happens to the unsold fashion merchandise sitting in stores and in warehouses across the country? Products will be put on sale but … Credit Suisse analyst Michael Binetti suspects that COVID-19 “will [also] create the greatest buying environment for off-price in a decade.” – Read More on TFL
6. Coronavirus effect: Bankruptcies won’t save retail this time. Retail has for years faced the challenges of slowing foot traffic, changing shopping patterns and online competitors that has caused a retail upheaval some analysts have deemed the “retail apocalypse.” But now, nearly every retailer and landlord is also facing the pain. – Read More on CNBC
1. Carpe DM: 60 years of the Dr. Martens boot – fashion’s subversive smash hit. While the vegan range and patterned designs have been credited with a 70% rise in profit for the brand in 2019, the 1460 remains the bestseller and it is this history that is likely to have attracted rumors in March of a potential £300m sale to a US private equity firm. – Read More on the Guardian
2. We are expecting ‘very significant topline decline’ for luxury brands in first half, analyst says: Chinese demand, which is at the center’s the high fashion/luxury economy, is expected to be down by 30 to 50 percent for the first half of 2020, per Luca Solca, senior research analyst for global luxury goods at Bernstein. – See More on CNBC
3. Rodeo Drive hotel planned by French luxury retailer LVMH: The parent company of brands such as Louis Vuitton, Givenchy and Dom Perignon recently applied for city permission to build a 115-room hotel on property it owns at the corner of Rodeo Drive and Little Santa Monica Boulevard. LVMH regards it as a long-term venture that wouldn’t open until 2025. – Read More on LA Times
4. RETRO READ: Two Decades, a Bitter Legal Battle, and More than $1 Billion Later, LVMH’s La Samaritaine is (Almost) Ready for its Debut. In light of COVID-19, however, it seems that the nearly 20-years in the making debut will inevitably be pushed back. – Read More on TFL
5. Eleven Women Over 40 Reclaiming Their Space in Fashion, From Jennifer Lopez To Celine Dion: Fortunately, thanks to increased awareness of the need for body positivity, diversity and gender equality, the world has woken up to the importance of celebrating womanhood in all its shape, sizes, ethnicities and ages. – Read More on Elle