Daily LInks
1. GitHub and others call for more open-source support in EU AI law. In a paper sent to EU policymakers, a group of companies, including GitHub, Creative Commons, and others, are encouraging more support for the open-source development of different AI models as they consider finalizing the AI Act. – Read More on the Verge
2. Louis Vuitton Is Working Harder for Shoppers’ Cash. The company’s marketing bill ballooned 24% compared with last year. The cost of generating enough desire to shift €42.2B of fancy watches, handbags and champagne in the first half of 2023 was a cool €5.08B. – Read More on the WSJ
3. Tracker hidden in a skirt uncovers what can happen to our recycled clothes. Donated in November and December, the items were driven to Warwickshire, then to Southampton. They sailed separately to the United Arab Emirates, followed by Senegal, before being taken by road to Mali, in west Africa, where two thirds of the population live in poverty. – Read More on the Times
4. Gap taps top Mattel executive to be its new CEO. During his tenure with Mattel, Dickson is credited with reviving the Barbie franchise and growing the toymaker’s other top brands, including Hot Wheels and Fisher-Price, according to Mattel. – Read More on CNBC
5. Chinese fast-fashion giants make gains in US. With affordable prices, free shipping, regular discounts and flexible return and refund policies, Temu, a subsidiary of Pinduoduo Holdings, which launched in the US last year, and Shein, in 2017, are attracting a growing user base. – Read More on China Daily
6. Global breakdown: How luxury retailers’ sales stack up. Burberry Group, Hermes and Kering said they saw a spike in overall revenue during their first fiscal quarters. McKinsey expects luxury sales to “outperform” the rest of the industry in 2023 and rise 5% to 10% over the course of the year. – Read More on Modern Retail
1. Adidas Hasn’t Found a Yeezy Way Out of Its $1.3 Billion Hole. Adidas AG has begun to clear the old Yeezys from the back of its closet. The process has gone better than expected, but this doesn’t change the fact that the sportswear maker still faces a future without its former star collaborator. – Read More on Bloomberg
2. Americans Are Buying Less Bling. “We are experiencing drops with entry-price products, with online sales, with second-tier cities, which is a clear sign that the aspirational customer is not shopping as much as they used to.” – Read More on the WSJ
3. It’s high time for more AI transparency. The most powerful models out there, such as OpenAI’s GPT-4, are tightly guarded by their creators. Developers and researchers pay to get limited access to such models through a website and don’t know the details of their inner workings. – Read More on MIT Tech Review
4. The Generative AI Battle Has a Fundamental Flaw. Copyright law is ill equipped to tackle the full scope of artists’ anxieties, whether these be long-standing worries over employment and compensation in a world upended by the internet, or new concerns about privacy and personal—and uncopyrightable—characteristics. – Read More on the Wire
5. Research: How to Effectively Market Green Products. Effective sustainability messages prioritize the personal and community benefits, while technical or scientific claims are less compelling unless tied to consumer benefits. – Read More on HBR
6. Apple faces $1 billion UK lawsuit by app developers over App Store fees. “Apple’s charges to app developers are excessive and only possible due to its monopoly on the distribution of apps onto iPhones and iPads.” – Read More on CNN
1. How Digital Twins are Transforming the Fashion Design Process. Some prominent fashion brands have started utilizing digital twin technology in different ways. Adidas, for example, creates virtual replicas of its footwear and apparel to simulate how they will perform under different conditions and environments. – Read More on Medium
2. Why we speak Starbucks. Branding experts say it is also an ingenious way of forging customer loyalty. Companies that persuade people to use their own terminology create “a sense of belonging and enhanced loyalty to the brand.” – Read More on the Economist
3. China’s live-streaming e-commerce market faces major disruption as AI-powered virtual hosts lower cost of campaigns, work round the clock. New generative AI-powered virtual hosts could disrupt the jobs of more than 400,000 human live-streamers across platforms such as Alibaba Group Holding’s Taobao Live, Tencent Holdings’ WeChat, ByteDance-owned Douyin and Kuaishou Technology. – Read More on SCMP
4. AI hype is ‘driven by marketing’ right now, says former FDIC chief innovation officer. “So much has been announced, there are so many glittering logos and great press releases, arguments on social media, things like that — but we haven’t actually seen a lot of work being done.” – Read More on Yahoo
5. How Do the White House’s A.I. Commitments Stack Up? “I’d love to see the A.I. industry agree on a standard battery of safety tests, such as the “autonomous replication” tests that the Alignment Research Center conducts on prereleased models by OpenAI and Anthropic. I’d also like to see the federal government fund these kinds of tests, which can be expensive and require engineers with significant technical expertise.” – Read More on the New York Times
6. LVMH strikes Paris Olympic Games sponsorship deal. The group will also sponsor athletes, including French swimmer Leon Marchand, and its beauty retailer Sephora will sponsor the Olympic torch relay, LVMH said. The French delegation will be dressed by one of LVMH’s “maisons.” – Read More on Reuters
1. In U.S., Regulating A.I. Is in Its “Early Days.” While there has been a flurry of activity by the White House and lawmakers over artificial intelligence, rules for the technology remain distant, lawmakers and experts said. – Read More on the New York Times
2. RELATED READ: A growing number of new AI-focused bills coming from lawmakers at the federal level are worth keeping an eye on. – Read More on TFL
3. He’s tried to ‘liberate’ colors for years. His latest: the “Barbiest pink.” The paint, dubbed “Pinkie,” is the latest salvo in Semple’s years-long campaign to “liberate” colors from legal restrictions. Semple argues that companies should not be able to limit the use of colors associated with their brands. – Read More on the Washington Post
4. Shein Spends $600,000 on US Lobbying as it Faces Washington Scrutiny. Fast-fashion giant Shein spent $600,000 on US lobbying efforts in the second quarter as it continues to face questions from lawmakers about forced labor and its opaque supply chain. – Read More on Bloomberg
5. Global retailers cash in on Barbie movie craze. “I don’t think we’ve ever seen this many brand partnerships coming out of one film,” said Jo Ashdown, managing partner at Mando-Connect. The craze stretches beyond retailers with Hyatt Hotels and Hilton offering Barbie-themed hotel suites in cities including Bogota, Colombia and Kuala Lumpur, Malaysia. – Read More on Reuters
6. AI investment is booming. How much is hype? The investment into Mistral AI is just one of many this year by venture capitalists jostling for a seat aboard the AI rocketship. In the first six months of 2023, they plowed $15.2 billion into generative AI companies globally, according to Pitchbook data. – Read More on CNN
7. Richemont Confirms China’s Diminishing Role in Luxury Retail. The industry had relied on a revival in China to offset the sluggishness in the U.S. market. However, this lifeline is no longer sustainable, as sales in the sector continue to weaken, presenting challenges for industry participants. – Read More on PYMNTS
1. Luxury goods sales in world’s two largest markets waning. The growth of the global luxury goods industry in recent years has relied heavily on the Chinese and N. American markets, but the recent weaker-than-expected sales data in the two markets suggest that the global luxury consumption boom is waning. – See More on China Daily
2. Senators look to tuck AI, social media into huge defense bill. “We’ll take our first steps of the year on AI legislation,” Schumer said in a floor speech this week. – Read More on the Washington Post
3. Bluebell takes Kering stake in move to push for change. Bluebell Capital has taken a stake in French luxury group Kering and is pushing for change, including looking at a tie-up with Cartier-owner Richemont, two sources close to the matter told Reuters on Wednesday. – Read More on Reuters
4. As Congress grapples with AI regulation, will California step up? With a gridlocked Congress, some lawmakers and tech experts see the much more agile California Legislature as a key player in the debate. Gov. Gavin Newsom said he’s starting to focus on the issue. – Read More on the SF Chronicle
5. Adidas and Ye’s Secret Battle Over a $100M Marketing Fund. Adidas alleges the rapper diverted $75M from the fund, while Ye claims the company copied his designs to make its own shoes. – Read More on Bloomberg
6. RELATED READ: No TRO for Adidas in Yeezy Case, Parties Drop Claims Over Frozen Funds. The case got its start in November 2022 when adidas sought an order of attachment from the court to prevent the $75 million that it provided to Ye’s companies in 2022, alone, for the purpose of marketing their now-defunct Yeezy partnership from being moved or commingled. – Read More on TFL
7. Fast Fashion Report Cards Show What’s Really in Your Clothes. Polyester makes up 64% of Shein’s materials mix, 21% at H&M. – Read More on Bloomberg
1. Why China could become the luxury industry’s next sore spot. A post-pandemic U.S. splurge had already shown signs of flagging, leaving investors to pin their hopes on Chinese shoppers to sustain the months-long spending spree that has boosted the sector’s fortunes. – Read More on Reuters
2. Brand collabs overload: Are solo launches the ultimate luxury? Luxury brands such as Dunhill are opting against pursuing growth this way because they do not deem it necessary. Furthermore, the dilution of premium luxury that high-street or lower-end brand crossovers potentially create is seen as not worth the consumer-base expansion. – Read More on Jing
3. Farfetch Seeks Tech That Enriches, Evolves the Digital Luxury Experience. Farfetch is researching and developing 3D assets and experiences, such as virtual try-on, which has been working well so far with categories such as watches and sneakers. – Read More on Yahoo
4. RELATED READ: Farfetch Sheds Light on M&A, AI Tech, Resale Ambitions in New SEC Filing. In Dec. 2021, Farfetch acquired 100 percent of Allure Systems Corp and its fully owned subsidiary, Allure Systems Research France, which uses artificial intelligence to create high-quality on-model images via 360 degrees renderings, allowing retailers and brands to scale quality imagery with automation. – Read More on TFL
5. Next Gucci CEO may have toughest job in luxury. Gucci’s revenue will grow by a meagre 1.5% in 2023, according to analysts’ estimates gathered by Visible Alpha. That’s way below the 10% and 15% rise brokers are penciling in for Louis Vuitton and Christian Dior respectively. – Read More on Reuters
6. Yuga Labs’ intensifying IP takedowns spur CryptoPunk backlash. “There’s still a lot of unanswered questions in relation to copyright: What does it mean to get an NFT? What do you get when you buy an NFT?” – Read More on Blockworks
1. Taco John’s, Taco Bell Terminate ‘Taco Tuesday’ Trademark Tussle. Restaurant chain Taco John’s said Tuesday it is giving up its fight defending its trademark of the phrase “Taco Tuesday.” Fast-food giant Taco Bell filed a petition in May with the U.S. Patent and Trademark Office seeking to cancel the trademark. – Read More in the WSJ
2. A Blessing and a Boogeyman: Advertisers Warily Embrace A.I. Machine learning, a subset of artificial intelligence that uses data and algorithms to imitate how humans learn, has quietly powered advertising for years. Madison Avenue has used it to target specific audiences, sell and buy ad space, offer user support, create logos and streamline its operations. – Read More on the New York Times
3. Artist Michael Moebius Is Suing Fast Fashion Retailer Shein in a Landmark Case for Artists Going After Multinational Companies. The German artist Michael Moebius, who was recently awarded $120M in a lawsuit against hundreds of foreign companies, is taking the Chinese retailer Shein to court in a case that could set new precedents for how such companies can be sued in the U.S. – Read More on ArtNet
4. How fast-fashion behemoth Shein became so controversial. A combination of tech savvy, controlled supply chains and tariff relief have all helped Chinese online retailer Shein become a fast-fashion behemoth. – Hear More on NPR
5. It’s Barbie’s World and Consumers Are Living in It. Quiet luxury has decamped to the Hamptons for the summer. In its place is an explosion of pink, spandex, fake tan and bleached-blonde hair. Yes, Barbiecore is stronger than ever. – Read More on Bloomberg
6. Gucci CEO Marco Bizzarri to Leave in Leadership Shuffle. “We are building a more robust organization to fully capture the growth of the global luxury market,” said Pinault. “I am confident that the changes we are announcing today will set Kering on a path to success and profitable growth over the long term.” – Read More on the WSJ
1. Luxury tests limits of its immunity to downturns. In one sense, luxury is insulated from cyclical downturns. The top 5% of wealthiest shoppers who are probably less sensitive to inflation drove around 40% of global luxury sales last year. – Read More on Reuters
2. China’s new wave of ‘live commerce’ relying less on influencers. Livestreaming, including live commerce, has become deeply entrenched in Chinese social media. The livestreaming audience topped 750M viewers in December, according to Chinese research company Wind. This represents 70% of Chinese internet users. – Read More on Nikkei Asia
3. Proposed legislation could alter e-commerce purchases of low-value items and shift competition among retailers. U.S. lawmakers have asked the same questions and proposed legislation to close a trade loophole which allows goods valued under $800 to be imported free of duties and scrutiny from restrictions on forced labor. – Read More on Reuters
4. RELATED READ: Regulating the Industry – A Running Tracker of Fashion-Focused Legislation. The U.S. is seeing a rise in fashion-centric legislation that is worth keeping an eye on. – Read More on TFL
5. Efforts to Rein in AI Tap Lesson From Social Media: Don’t Wait Until It’s Too Late. Social media was more than a decade old before efforts to curb its ill effects began in earnest. With artificial intelligence, lawmakers, activists and executives aren’t waiting that long. – Read More on the WSJ
6. How judges, not politicians, could dictate America’s AI rules. The FTC could require OpenAI to pay fines or delete any data that has been illegally obtained, and to delete the algorithms that used the illegally collected data. – Read More on MIT Tech Review
1. AI learned from their work. Now they want compensation. OpenAI’s ChatGPT and image-generator Dall-E, as well as Google’s Bard and Stability AI’s Stable Diffusion, were all trained on billions of news articles, books, images, videos and blog posts scraped from the internet, much of which is copyrighted. – Read More on the Washington Post
2. ChatGPT and Deepfake-Creating Apps: A Running List of Key AI-Lawsuits. The rising adoption of AI across industries (including fashion, retail. luxury, etc.) that has come about in recent years is bringing with it no shortage of lawsuits, as parties look to navigate the budding issues that these relatively new models raise for companies and creators, alike. – Read More on TFL
3. Luxury’s China Dependency. Demand for the biggest luxury brands (such as Louis Vuitton, Chanel and Hermes) could outpace that of entry-level peers (Coach, Hugo Boss and Michael Kors), but the latter group should still record faster revenue gains and greater profitability than mass-market counterparts. – Watch More on Bloomberg
4. Can A.I. Invent? This is far more than a philosophical debate about human versus machine intelligence. The role, and legal status, of A.I. in invention also have implications for the future path of innovation and global competitiveness, experts say. – Read More on the New York Times
5. Italy’s luxury groups set aside rivalries to keep it local. Control of the supply chain has become increasingly important for luxury brands, ensuring products get to shops on time and avoiding reputational risks linked to sourcing of raw materials or labor conditions. – Read More on Reuters
6. How China’s reopening fueled a rebound in Swatch Group sales. Revenue reached four billion francs, ahead of analysts’ estimates. Sales in Hong Kong tripled while mainland China grew by double digits. – Read More on SCMP
1. Tom Ford and Savage X Fenty: Major brands giving ‘bare minimum’ are revealed in transparency ranking. The world’s largest fashion activism movement has ranked 250 different brands on how much information they share about their supply chain and environmental policies, practices and impacts. – Read More on EuroNews
2. Try Before You Buy: Exploring the Magic of AR Fashion Apps. With the rapid advancement of technology, AR fashion apps have emerged as a groundbreaking solution, merging the realms of fashion and virtual reality. These innovative apps harness the power of AR to create virtual dressing rooms that allow users to try on clothes virtually. – Read More on Medium
3. AAFA, IAF among campaigners for ‘clothing label modernization’. The organizations claim that there are now digital options, including QR code labels, that can reduce the amount of content that these standards mandate the business create. – Read More on Apparel Resources
4. RELATED READ: Companies Call on FTC to Revise Green Guides, Adopt Sustainability Definitions. On a tech note, the NRF says that “the use of QR codes or other references to web-based information to provide additional sustainability information for products.” – Read More on TFL
5. Ripple notches landmark win in SEC case over XRP cryptocurrency. Ripple Labs Inc did not violate federal securities law by selling its XRP token on public exchanges, a U.S. judge ruled on Thursday, delivering a landmark legal victory for the cryptocurrency industry that sent the value of XRP soaring. – Read More on Reuters
6. FTC Opens Investigation into ChatGPT Maker Over Technology’s Potential Harms. In a 20-page letter sent to the company this week, the agency said it was looking into OpenAI’s security practices, askING OpenAI dozens of questions in its letter, including how the start-up trains its A.I. models and treats personal data, and said the company should provide the agency with documents and details. – Read More on the New York Times