Daily Links

1. Clothing retailers set for discount battle to clear inventory glut: US apparel retailers are preparing steep markdowns to clear shelves ahead of the holiday season, as inflation pushes consumers to pull back on discretionary spending and wait for deals. “I hesitate to call it a bloodbath, but it’s going to be ugly,” said Urban Outfitters CEO. – Read More on the FT

2. Kanye West Isn’t Alone as Big Stars Seek More Say in the Brands They Back: “We’re seeing that a lot of celebrities are like, ‘Yeah, I don’t need you because I have a big enough brand that I can do it on my own.’ And they do.” – Read More on the WSJ

3. Ralph Lauren Sees Faster Growth on Pricing, New Customers: The New York-based apparel company is targeting revenue growth in the mid-to-high single digits in each of the next three fiscal years, including the current one. – Read More on Bloomberg

4. Traceability Can Enable Circularity in the Fashion Industry: Traceability can help supply chains locate inefficiencies, sort production or post-consumer waste and mitigate financial and reputational risks. It also ensures credibility and compliance. – Read More on Forbes

5. What the ‘Amazon of South Korea’ is doing in Seattle: Coupang built its own “last-mile” delivery service to cover the final leg to a customer’s doorstep that is often handled by mail carriers, making it easier for customers because “the same truck bringing me my shoes is also bringing me my lettuce, carrots and milk.” – Read More on Seattle Times

1. Big fashion can’t align its climate goals with its business model: “The concept of degrowth and alternative business models, or alternative models to growth, can be words that make [business] people uncomfortable.” – Read More on Fortune

2. China NFT and metaverse marketing requires Tiffany, other global luxury brands, to tread lightly and be creative: Unlike the rest of the world, China does not allow metaverse activities that involve crypto or trading in NFTs. Yet brands are still finding ways to be creative in the developing arena. – Read More on SCMP

3. How fast fashion can cut its staggering environmental impact: The industry needs to focus on making things that last, and so encouraging reuse; and more rapidly expanding the technologies for sustainable manufacturing processes, especially recycling. – Read More on Nature

4. ETFs are capitalizing on the luxury goods boom: “The wealthy have been little affected by the pullback in the markets — they keep buying, and luxury brands overseas are less expensive for U.S. buyers as the USD has been on a roll.” – Read More on Yahoo

5. China’s retail sales, industrial production beat expectations in August: Retail sales grew by 5.4% in August from a year ago, topping a Reuters forecast for 3.5% growth. – Read More on CNBC

6. U.S. Retail Sales Rose 0.3% in August, Showing Resilience in Face of Inflation: Consumer prices rose 0.1% in August from July and 8.3% from August last year, the Labor Department reported. After excluding volatile food and energy prices, underlying inflation pressures were broadening and building. – Read More on WSJ

1. Appraisers appreciated as worries over faux luxury items rise: The market for authenticating luxury goods has been growing in recent years due to the diversification of purchasing channels such as department stores, boutiques and outlets making use of online platforms and secondhand transactions. – Read More on Korea JoongAng

2. Mytheresa CEO on luxury spending: Customers are buying “even more luxury items, more timeless luxury items. So, the types of items they buy are at a higher price point.” – Read More on Yahoo

3. Riding Hermès to Record Revenue: Leather is still king, and given the enduring passion for Birkins and Kellys, Hermès works at capacity. Waiting lists for the products are not a function of artificial scarcity, but actual scarcity. – Read More on the WSJ

4. How ‘Dupe’ Culture Took Over Online Fashion: Influencers have an incentive to post and promote popular dupes: through Amazon’s influencer program, creators get a small percentage of sales when people purchase items with their links. – Read More on Rolling Stone

5. Fast-Fashion Giant Shein Plans U.S. Expansion as Sales Climb: Shein’s long fulfillment times have frustrated some shoppers and could become a hurdle as the company tries to sell more higher-price products with fatter profit margins. – Read More on the WSJ

6. H&M Sales Miss Estimates as Retailer Falls Behind Rival Zara: Hennes & Mauritz AB sales declined more than expected over the summer as the Swedish retailer fell further behind rival Zara amid a growing cost-of-living crisis across Europe. – Read More on Bloomberg

1. Why fast fashion is the next Big Tobacco: While faced with incriminating data points that prove every stage of its lifecycle causes devastation to our planet, fast fashion has few regulations, thus enabling behemoths like Shein to become so popular it has more U.S. app downloads than Amazon. – Read More on Fast Co. 

2. Luxury Brands Spend More on Marketing, Defying Economic Uncertainty: A number of brands attracted by the luxury sector’s profit margins have also begun attempting to move into the category, leading some more established luxury names to try to move even higher up the ladder. – Read More on WSJ

3. In new era, Ray-Ban owner extends partnership with Armani: The partnership dates back to 1988 when the parties teamed up to bring Armani-branded glasses to a global market. The move is widely seen as driving a revolution that helped to turn glasses into a fashion accessory. – Read More on Reuters

4. How the apparel industry can ADAPT to inflation: The ADAPT model offers a five-component approach to reset margin structures with bold, deliberate actions that could yield competitive advantages in a persistently inflationary environment. – Read More on McKinsey

5. What would it look like to truly transform the fashion industry from the ground up?  “The entire clothing system is based on cutting down labor [costs to] as little as possible. We’re going up against so much.” – Read More on Yahoo

1. Zara’s US Clothing Sales Help Swell Top Line as Dollar Surges: The Spanish clothing giant affirmed in June that the American market was the second-largest contributor to revenue. The US is expected to account for 10% of sales in 2022, up from 8% in 2021. – Read More on Bloomberg

2. Where Walmart, Amazon and Target are spending billions in a slowing economy: Investments made by big-spending leaders are likely to result in taking customers from weaker rivals next year, when consumer discretionary cash flow is forecast to rebound from a year-long 2022 drought and revive shopping after spending on goods actually shrank early this year. – Read More on CNBC

3. Luxury Brands Prepare for “Millennial Domination.” Plans revolve around the changing styles and increasing buying power of millennials and Gen Z customers, with Tapestry coining the term “expressive luxury” to describe the new direction for Coach. – Read More on PYMNTS

4. Rent the Runway shares sink as inflation-weary subscribers hit pause: Soaring prices of gasoline and groceries have forced shoppers to curb spending on apparel and other discretionary items, bruising sales of clothing companies that were just beginning to recover. – Read More on Reuters

5. Kanye West Is Done With Corporate America: There are obstacles to a clean break. Foremost are his high-profile, long-term arrangement with adidas to produce sneakers like the Yeezy Boost 350, which expires in 2026, and an agreement with Gap that ends in 2030. – Read More on Bloomberg