Daily Links

1. The fashion industry in 2020: Amid uncertainty, brands, retailers, and other fashion-industry players must act strategically to capitalize on digital opportunities, boost earnings, and address sustainability. – Read More on McKinsey

2. For the fashion industry, the fallout from the coronavirus may be just beginning: China, where the virus originated, is a major manufacturing hub for many industries, including fashion. It currently manufactures more than a third of all clothing and textiles globally, although its market share in apparel manufacturing has declined slightly over the past few years. – Read More on Fast Co. 

3. An Insider’s Guide to the Fast Fashion Industry: “I think people who buy from Boohoo think the clothes are cheap because it’s cheap material. But it’s cheap labor. People are overworked and underpaid.” – Read More in Vice

4. Fashion Nova Reportedly Spent $40 Million on Influencer Marketing in 2019: To put that in perspective, note that the No. 2 brand—Flat Tummy Co.—is said to have spent nearly $14 million. The top five is rounded out by Ciroc, Walmart, and PrettyLittleThing. – Read More on Complex

5. RETRO READ: How Fashion Nova Won the Internet and Is Transforming the Way Millennials Dress. “To paying customers, especially hard to fit ones, Fashion Nova symbolizes a revolution in terms of access to trendy, affordable clothes.” – Read More on TFL 

6. Unions press FTC to investigate Amazon’s market power: In a petition to the agency, they urged the FTC to examine alleged anti-competitive behavior on Amazon’s part, including directly and indirectly controlling product prices, tying its search rankings to the company’s own profit, price discrimination against users of competing e-commerce platforms, using data from its platforms to give it an advantage, and depressing wages in local labor markets. – Read More on Retail Dive

1. Rivals Race to Catch Nike’s Vaporfly: Competitor concerns about the shoes that might make athletes run “too fast” mounted, and World Athletics formed a group in early 2019 to study the issue. But what the governing body saw as careful deliberation, many athletes and brands saw as frustrating silence on an issue central to competition: Did Nike’s shoes provide an unfair aid that the rules had long prohibited? – Read More on WSJ 

2. What’s Holding Up Sustainable Change for Fashion Players? One of the common challenges within the fashion industry, which also applies to consumers and stakeholders, is that there is no common understanding of what a sustainable product is. – Read More on Sourcing Journal 

3. RETRO READ: The Problem with “Sustainability”? It Doesn’t Really Mean Anything. Even the FTC has “somewhat sheepishly admitted that it could not define what sustainability really means in concrete terms for marketers” or brands. – Read More on TFL 

4. How the coronavirus is affecting global fashion production, from high street brands to luxury labels: Companies and designers with factories in China are facing huge disruption to their supply chains as people are unable to return to work. “It is going to have a massive impact on the global fashion industry, far more than just in China.” – Read More on SCMP 

5. Do Luxury Houses Need Fashion Designers? Today there are still grandiose shows staged, but they largely serve as window-dressing and marketing exercises that hide the lack of ideas instead of highlighting them. – Read More on Highsnobiety 

6. RELATED READ: Can Bottega Veneta’s Daniel Lee Go Beyond the “It” Bag? Or Better Yet … Does He Need to? The full collections of garments that brands trot out every season are, more often than not, loss leaders for their beefy accessories businesses. – Read More on TFL

1. Vietnam’s fashion market is booming and attracting brands like Louis Vuitton, Uniqlo and Zara: Long a power in global textile and garment manufacturing, Vietnam is taking on a new role: a fast-growing consumer market. The next 10 years will be a ‘pivotal period for the growth of luxury shopping across the country.’ – Read More on SCMP 

2. As Victoria’s Secret’s star wanes, the lingerie market is growing more fragmented: Victoria’s Secret’s market share has declined for years — a combination of a dated approach, oversexualized images and a plethora of competition. But the number of startups and retailers vying to take a slice of the business that previously belonged to Victoria’s Secret hasn’t slowed down. – Read More on Modern Retail 

3. Can sneakers ever really be sustainable? “As long as these brands are pursuing growth, they are not creating sustainability and cannot make any claims about sustainability.” Nike and Adidas need more than recycled products if they’re serious about saving the planet. – Read More on Input

4. We bought dozens of products from AliExpress, Amazon, eBay, Walmart and Wish. Over half were suspected fakes. From MAC lipstick and Kylie Cosmetics lip kits to Nike sneakers and Valentino shoes, each product listing seemed legitimate, with some prices that compared to retail stores and official-looking advertisements. – Read More on CBC

5. What Makes a $60,000 Watch So Expensive? It can take years of research to perfect a movement’s flow, a case’s ideal weight or the optimal way to fit each component together beneath the dial. A lofty sticker price recoups such development expenses. Finally, there’s the brand name. “You’re paying for that status symbol and name recognition.” – Read More on WSJ

1. China’s Appetite for Luxury Was Waning Even Before the Virus Hit: About 10% of Chinese consumers said they were planning to reduce their luxury purchases in 2020 compared to 6% last year, according to a December survey of 1,599 affluent shoppers. – Read More on Bloomberg

2. Forever 21’s new owners face a slowdown in fast fashion: “The desire for cheap fast fashion has absolutely waned, and consumers obviously want to invest in better quality and better brands … Rental, resale, off-price — those good deals for good quality — is a complete contrast to fast fashion.” – Read More on Retail Dive

3. COUNTERPOINT: No, Forever 21’s bankruptcy does not mean that fast fashion is dying. In reality, fast fashion pioneers like Forever 21 are being replaced by faster, more digitally-fluent brands, such as  Boohoo.com, Fashion Nova, and Missguided, which debut thousands of products each week. – Read More on TFL

4. Jane Birkin: Birkin bags are now coveted luxury items that re-sell for hundreds of thousands of dollars — though the woman behind the idea never received royalties for the design. And while her association with the bag means “nothing much” to the actress and singer, she seems unfazed that her name has achieved a fame of its own. – Read More on CNN

5. How French Department Stores – including the soon-to-reopen La Samaritaine – are Courting the 1 Percent: Retailers are wooing high-spending clients with the kind of exclusive experiences previously linked with the rarefied world of haute couture. – Read More on WWD

1. How Fashion Designers Became the New Instagram Influencers: Designers like Marc Jacobs, Virgil Abloh and Donatella Versace are moonlighting as social media influencers. “The more people that tune in [to a designer’s account], the less money that brand has to spend on traditional advertising. So it can transfer over and it can have a benefit for the brand.” – Read More on the WSJ 

2. ‘The modern Goodwill’: How ThredUp positioned itself as the struggling retailer’s resale partner-in-crime. The 10-year-old company as a peer-to-peer platform for people to buy and sell men’s shirts. Three years later it adopted more of the consignment model, having people offer up their clothes which the company would then price and sell itself. – Read More on Modern Retail 

3. How Kanye’s lusted-after Yeezy 350 V2 lost its hype: “There is the potential for this brand to recover the real scarcity that’s out of control, but it won’t be easy to get there. You can’t slow it down for one year and get there the next year.” – Read More on Input 

4. Should we ration fashion? What if, for example, we could buy only a certain amount of new clothing – and then buy as much secondhand as we wanted? What if we got a tax break for ethical shopping – just as in Scandinavia the government gives a tax break to repair shops? – Read More on the Guardian 

5. Coronavirus will cost the luxury industry an estimated $40 billion: a survey of top luxury executives estimates the total hit to the industry’s sales could reach as high as €40 billion ($43.4 billion). – Read More on Quartz