Daily Links

1. How E-Commerce Is Penetrating the Luxury Market: Luxury brands will have to adapt to e-commerce standards, even if they are worried about losing their elite status. “In 2017, Nasdaq forecasted that 95 percent of business would be conducted via e-commerce by the year 2040.” – Read More on Entrepreneur

2. RETRO READ: Can LVMH Get Consumers to Shell Out Tens-of-Thousands of Dollars Online? There is certainly evidence that consumers are spending in significant ways online. That does not mean, however, that Louis Vuitton is willing to make its full expanse of products available to consumers by way of a single click or that LVMH’s Hublot and Zenith watch brands will follow suit … yet. – Read More on TFL

3. Cardi B, Kylie Jenner Silent as COVID Ravages Fashion Nova: California distribution center for Fashion Nova—the Instagram-friendly clothing brand promoted by Kylie Jenner, Khloe Kardashian, and Cardi B—reported at least 203 cases of COVID-19 in recent months, making it the third largest ongoing outbreak in all of Los Angeles County. – Read More on Daily Beast

4. 2020: The year that changed fashion – and not just the look. Management consultancy firm McKinsey & Company marked 2020 as the worst year on record for the fashion industry, forecasting a 90% decline in profits and a 15-30% fall in sales, compared with 2019. – Read More in the Guardian

5. China’s luxury sales estimated to grow 48% in 2020, fueled by online sales and a consumption “comeback.” Bucking the global downward streak amid the fallout from the COVID-19 pandemic, China’s luxury sales last year rose by a stunning 48 percent to around $54 billion, buoyed by a consumption comeback as travelers were unable to shop overseas, a boost in online sales and duty-free policies in South China’s Hainan Province. – Read More on Global Times

6. M&S Takes Up the Challenge of Reviving a Tired Boomer Brand: The challenge of reinvigorating tired brands is being taken up across the retail sector in the U.K. and beyond. For example, M&S’s rival Next is among the bidders for Topshop, the fashion company that became available when billionaire Philip Green’s retail empire collapsed into administration in November. – Read More on Bloomberg

1. Luxury goods sales picking up again: The luxury goods market is booming, particularly in East Asia. A large part of this is due to expenditure that would otherwise have been earmarked for foreign travel now being spent on luxury goods. But there is far more to this surprisingly resilient market than just the impact of diverting expenditure away from travel and tourism. – Read More on Business Day

2. Burberry: A Hold Until the Dust Settles. British luxury goods firm Burberry has shifted strategy in recent years in order to exercise greater control over its brand. This will benefit shareholders in the long run. – Read More on Seeking Alpha

3. Don’t buy a luxury handbag, splurge on its shares instead: Two of Britain’s most successful fund managers have taken big stakes in luxury brands to cash in on an expected surge in demand for luxury goods during lockdown, fueled by the wealthy shoppers in Asia. – Read More on the Times

4. Argentinian central bank puts cap on imported luxury goods: The Central Bank of Argentina has put a cap on imported luxury goods on January 6 in a bid to preserve dollars in the country. The rules affect purchases of products such as high-end cars and motorcycles, private jets worth over $1 million, recreational boats, beverages including champagne, whisky, liqueurs and other spirits priced above $50/liter. – Read More on Central Banking 

5. What Big Tech’s scrutiny means for luxury advertising: As governments globally call out big tech companies for being too dominant, brands and retailers are tactically diversifying their advertising beyond the major platforms. – Read More on Vogue Biz

6. RELATED READ: China is Pushing to Control Big Tech, With E-Commerce Giants Coming Under the Microscope. Newcomers like Bytedance and Pinduoduo – the latter of which has integrated social components into the traditional online shopping model to create a popular “team purchase” experience – were already eating market share from Alibaba and Tencent, and the antitrust reforms could well accelerate that trend. – Read More on TFL

1. Patagonia has had enormous success with upcycled clothing. Could other brands follow? Upcycling was once a cottage industry devoted to die-hard environmentalists, but it’s now in vogue. However, there’s a dark side to this trend as some brands are jumping on the upcycling trend without actually changing their practices. – Read More on Fast Co.

2. Crocs shares soar on raised sales outlook through 2021: The Colorado-based footwear company said it expects 2020 full-year sales to grow more than 12% to a record of roughly $1.38 billion, up from a previous range calling for 5% to 7% growth. In 2021, it’s calling for revenue growth of 20% to 25%. – Read More on CNBC

3. Kylie Jenner Cosmetics Deal Has Delivered Promise and Peril for Coty: Online sales of Kylie Cosmetics, not including the Kylie Skin business, fell 39% through October compared with the same period in 2019. Full-year 2019 sales fell 21% from the previous year, according to the firm. Those figures don’t include sales at beauty retailer Ulta, which began selling the brand in 2019, or other physical stores. – Read More on the WSJ

4. RELATED READ: Amid Pending Lawsuits Over Kardashian-Jenner Deals, Coty Finalizes Purchase of 20 Percent Stake in KKW Beauty. The draw of the Kardashian-Jenners and their sweeping follower base, which Coty spotlights in its release, noting that Kardashian “is one of the world’s highest-profile and influential consumer personalities, with 300 million followers across her personal and brand social media channels and a large global audience” (plus the very-real possibility of Kardashian-initiated litigation had Coty sought to pull out of the KKW deal) outweighs the legal drama that comes with them. – Read More on TFL

5. How personalization is transforming the luxury industry: Effective personalization in the luxury industry intersects the increasing centrality of digital marketing with the need to correctly interpret increasingly precise profiling. In order to increase the results of personalization, there must be a willingness on the part of the company to invest in online channels, but also an awareness of the high standards that luxury consumers are accustomed to in stores. – Read More on Doxee

6. In Moodsters, Jack Daniel’s IP lawsuits, SCOTUS follows old showbiz adage: On Monday, the U.S. Supreme Court let stand two high-profile intellectual property decisions by the 9th U.S. Circuit Court of Appeals, declining petitions filed by Jack Daniel’s Properties against the maker of a dog toy and by a children’s author/animator against The Walt Disney Company and Pixar. – Read More on Reuters

1. Luxury Turns From Conspicuous to Conscientious in 2021: While the affluent consumers are more shielded from economic ups-and-downs than those with less financial resources, they weren’t immune from its effects during the 2008-2009 recession. Back then, they took a hiatus from ‘shop-till-you-drop’ spending and waited till the worse was over before reentering the luxury market. The same scenario is likely to occur again. – Read More on Forbes

2. How Coco Chanel changed the course of women’s fashion: As well as revolutionizing how we dress, she helped form a new ideal of what a fashion brand could be: an all-encompassing force that could tend to all aspects of a woman’s life, from formal attire to holiday wardrobes and evening ones. – Read More on CNN

3. RETRO READ: Chanel and the Controversial Entrepreneur Who Started it All. Coco Chanel – whose image and likeness is identifiable outside of the hallowed walls of the fashion industry and whose famed quotes appear in the social media bio lines of many a millennial fashion fan – has “been front and center of the story” of Chanel, as has her “ability to spot market opportunities and then align fashion and fragrances with emerging lifestyle trends.” – Read More on TFL

4. Five changes to watch for in shopping as major retailers innovate to go “green.” More than half of consumers — 57% — say they are willing to change their purchasing behavior “to help reduce negative environmental impact,” according to a study of 18,980 consumers in 29 countries conducted by the National Retail Federation. – Read More on CNBC

5. Topshop changed the fashion industry, but now it too has been left behind: The sale of Topshop is also a symptom of our changing relationship with fashion. The trend cycle that Topshop once stoked continued to pick up speed, and more dexterous competitors started to meet the demand for increasingly faster fashion. – Read More on the Guardian

6. RELATED READ: Topshop – How the Once-Trendsetting Brand Fell Behind the Times. Arcadia’s hold on the high street has waned over the years with dozens of outlets closing nationwide, and many industry experts and past employees, alike, laying the blame at Arcadia owner and chairman Philip Green’s feet, citing lack of investment in online retailing and outdated ways of sourcing product. – Read More on TFL

1. There has been ‘10 years of innovation in 10 months,’ retail body says: “You buy online, you pick up in the store. There’s curbside pickup, now you can return products that you buy online, you can return them into the stores. That seamless integration is really becoming the rule, it used to be the exception and we’re going to see a lot more of that.” – Read More on CNBC

2. Can Nike keep its cool? It’s been a tumultuous period for Nike.” The result is one of the most challenging moments in the company’s history. It must contend not only with a radical shift in retail strategies but also the wider cultural reckoning with the intersection of race, gender and power. – Read More on the FT

3. LVMH’s jewelry and watches business: The deal, first announced more than a year ago, will help LVMH, owner of brands such as Louis Vuitton and Bulgari, to expand in jewelry, which has been one of the fastest-growing parts of the luxury goods market. – Read More on Reuters

4. RELATED READ: A Timeline Behind the Building of the World’s Most Valuable Luxury Goods Conglomerate. Since Bernard Arnault first acquired Christian Dior by buying out its parent company Boussac in 184, he has spent billions of dollars and worked doggedly to amass no less than 70 luxury brands under the umbrella of the group that is now coined LVMH Moet Hennessey Louis Vuitton. – Read More on TFL

5. U.S. Unemployment Claims Remain Elevated While Consumer Demand Boosts Goods Imports: Job losses in the past year have been particularly severe among lower-earning restaurant, hotel and mall-retail workers. Meanwhile, workers in other areas were more likely to shift to working from home and have maintained incomes to help drive demand for goods, while spending less on dining out, travel and other services. – Read More on the WSJ

6. The 20 Data Points That Defined 2020: 25% – The percentage of the public that on average currently feels comfortable doing a number of leisure activities, from dining out to going to the mall. Comfort levels have not changed dramatically in recent months, but the vaccine will likely turn the tide.  – Read More on Morning Consult