Daily LInks
1. Is AI reshaping the fashion industry? AI models can be “trained by historical inventory levels and sales performance to predict future sales, businesses can make more informed decisions about what to stock and when.” – Read More on the Week
2. Can AI Fix the Retail Supply Chain? Data is a powerful tool in CPG, but it’s often siloed in organizations. GPT models can change that by helping nontechnical users analyze data to answer key business questions, relying on natural language instead of SQL or data scientists. – Read More on S&P Global
3. OMG Girlz Case Sidesteps Cultural Appropriation’s Day in Court: Former teen pop group OMG Girlz is back in a California courtroom today claiming that doll maker MGA Entertainment ripped off its name, style, and likeness. – Read More on Bloomberg
4. Bergdorf’s New ‘Conscious Closet’ Program Lets You Donate, Repair, or Resell Pre-Owned Luxury Goods: The cost of the respective services will depend on your relationship with the brand. “If it’s a long-standing client, some services come complimentary.” – Read More on Robb Report
5. Coach bags help Tapestry defy U.S. luxury gloom with forecast raise: Tapestry’s Coach handbags – which typically sell for less than $1,000 – have attracted more Gen Z and millennial consumers with collections such as Tabby and Willow, with the brand’s sales jumping 7 percent. – Read More on Yahoo
1. A $55,000 Fashion Education Now Means Learning to Make Chic Outfits for Roblox Avatars: Making money as a Roblox fashion designer isn’t easy. Millions of tops, handbags, shoes and other swag for avatars are for sale, along with vehicles, weapons and pets. Roblox takes a 30% cut of each transaction. – Read More on the WSJ
2. ChatGPT and Retail: Reality, Hype, What’s Next, and How to Prepare. Generative AI is set to have far-reaching implications for the $5.92T global ecommerce sector. The most sizable impact is expected to be seen in the areas of mobile commerce, social commerce, voice commerce, etc. – Read More on Insider Intelligence
3. The Companies Trying to Make Live Shopping a Thing in the US: Poshmark is one of many companies racing to break into the United States’ nascent live shopping market, which is estimated to bring in $32 billion in sales this year, according to the retail consulting firm Coresight Research. – Read More on the New York Times
4. Google’s AI is coming to more companies near you: Deutsche Bank AG, Uber Technologies, and a unit of Victoria’s Secret & Co are among the companies giving Google’s tools a try. – Read More on Reuters
5. A Market for Gender-Neutral Dressing Slowly Comes of Age: Sped up by social media and the influence of international celebrities like Harry Styles, nonbinary fashion is becoming more prevalent and driving retailers to figure out how to catch up. – Read More on Bloomberg
6. Reddit co-founder: The AI revolution is “bigger than the smartphone.” “All the CEOs we’re working with, even if they’re not in AI companies, it’s obvious they’re going to have to think through AI strategies, even if it’s just to help make writing code more effective or customer support more efficient, all the way to actual AI companies, which we are also investing in.” – Read More on Yahoo
1. Reformation Eyes Going Public in Testing the Limits of Eco-Friendly Fashion: Majority owned by private equity firm Permira, Reformation touts its green cred with offerings such as $200 pants made from eucalyptus trees. The company says it’s profitable and is now eying an IPO. – Read More on Bloomberg
2. Amazon begins selling toys, clothing through mobile games: The e-retailer announced a business-to-business program called Amazon Anywhere allowing video game makers to sell goods directly through their respective platforms. – Read More on Reuters
3. Is Supreme’s $2 Billion Empire Cooling Off? What’s happening in stores reverberates on the resale market. “If the hype is built by limited supply, when the supply outpaces demand, of course, it’s going to kill resale.” – Read More on the WSJ
4. Adidas to face pressure from big investor over Kanye West findings: Janne Werning, head of ESG at Union Investment, will urge Adidas to disclose the results of the investigation “here and now”, stressing that shareholders were entitled to know. He will also demand the company “transparently clean up the scandal.” – Read More on the FT
5. RELATED READ: Adidas, Execs Named in Stock Drop Lawsuit Over Yeezy Partnership. Adidas stockholders have named the company and two executives in a new securities lawsuit, accusing them of making “materially false and/or misleading” statements in connection with the Yeezy partnership that it entered into with Kanye West back in 2013. – Read More on TFL
6. Lulu who? A cult brand takes on the booming culture of “dupes.” Athleisure giant lululemon recently held a dupe swap at the Century City Mall in Los Angeles. Bring a knock-off pair, lulu said, and they’ll swap it out for the black Align High Rise Pant 25.” – Read More on CNN
1. What the Clash of Generative AI & IP Means for Businesses. AI developers may also argue that using someone else’s work as an internal database for training their generative AI tools constitutes a transformative purpose, recognized by the Supreme Court ruling where copying parts of the Java API to create a new platform for programmers was deemed transformative. – Read More on Forbes
2. RELATED READ: Legal Questions, Lawsuits Abound as AI Art Generators Continue to Gain Steam. Beyond the threshold issue of registrability, other questions center on the issue of human authorship and whether the outputs from certain AI models infringe others’ copyrighted works. – Read More on TFL
3. Chinese firms working on ChatGPT-style AI tech: The global buzz around Microsoft-backed OpenAI’s ChatGPT has spread to China, shoring up stocks in AI related firms and prompting a flurry of domestic companies to announce rival projects. – Read More on Reuters
4. Shopify eCommerce Refocus Includes AI, Recruiting Celebrity Brands like The Row: “I think we are very fortunate to be amongst the companies with the best chances of using AI to help our customers, our merchants. And that’s how we think about the usage of AI here.” – Read More on PYMNTS
5. How Zara built a $13 billion empire without traditional advertising: The company introduces 12,000 new designs annually, compared to the industry average of 2000. This approach makes it easier for ZARA to dispose of pieces that fail to gain traction, resulting in fewer time-bound sales with smaller discounts than its competitors. – Read More on Your Story
6. Industry targets fast fashion as 200,000 tons hits landfill each year: A report commissioned by those working on the stewardship scheme estimated that 52% of new clothing purchased in Australia in 2018-19 was made from polyester, which releases carbon dioxide when made and is difficult to recycle. – Read More SMH
1. He wrote a book on a rare subject. Then a ChatGPT replica appeared on Amazon: Semrush, a leading digital marketing firm, recently surveyed its customers about their use of automated tools. Of the 894 who responded, 761 said they’ve at least experimented with some form of generative AI to produce online content. – Read More on the Washington Post
2. AI Experts Aren’t Always Right About AI: Creating a system of checks and balances for artificial intelligence systems is a task for social and political scientists. – Read More on Bloomberg
3. China turnaround challenge dwarfs Adidas’ Yeezy debacle: A marketing strategy heavy on lifestyle and celebrity ambassadors rather than sportspeople and performance meant celebrities’ pullback from foreign brand endorsements left Adidas less visible in the market. – Read More on Reuters
4. How to deliver a successful ESG strategy: Since the footprint and practices of all suppliers factor into a company’s ESG metrics, it is very important to select business partners carefully. It is not sufficient to just ask potential suppliers about whether they meet certain standards and take their word for it. – Read More on VB
5. House China committee targets top clothing brands in forced labor inquiry. Reps. Mike Gallagher and Raja Krishnamoorthi, leaders of the House CCP Committee, sent letters to leaders at Nike, Shein, Temu and Adidas about possible trade law violations. – Read More on CNBC
6. What companies within and outside of the EU can expect of new European ESG regulations: The CSRD builds upon previous regulations such as the E.U.’s Non-financial Reporting Directive (NFRD) and increases the depth and breadth of organizations that are impacted. – Read More on Reuters
1. Big-Spending Chinese Shoppers Are Splurging on Luxury at Home, Not Abroad Anymore: Some 62% of luxury spending by Chinese consumers took place inside its borders in April, widening from 41% in the same month in 2019 — before Covid. – Read More on Bloomberg
2. Inside the Delirious Rise of ‘Superfake’ Handbags: As for how the superfakes are achieving their unprecedented verisimilitude: It’s simply a combination of skillful artisanship and high-quality raw materials. Some superfake manufacturers travel to Italy to source from the same leather markets that the brands do; others buy the real bags to examine every stitch. – Read More on the NYTimes
3. Patagonia Sues Online Apparel Seller Over Alleged Trademark Infringement: In the Patagonia case, one alleged trademark-violating T-shirt features the Patagonia logo with an explicit phrase written in what’s essentially the same white typeface used for the real Patagonia nameplate. – Read More on ASI
4. Businesses in China Ask Where the Red Lines Are as Beijing Cracks Down: Foreign companies in China are walking a tightrope between their need for business intelligence to comply with proliferating U.S. sanctions and mounting concerns about the risks of carrying out the due diligence required for business on the ground. – Read More on the WSJ
5. April adds 54 more US corporate bankruptcies; 2023 filings highest since 2010: S&P Global Market Intelligence recorded 54 corporate bankruptcy petitions in April, a drop from 70 in March. Those fresh filings have pushed the year-to-date count to 236. – Read More on S&P Global
6. Rolex Certified Pre-Owned Program Rolled Out to U.S.: Select locations from the Tourneau Bucherer and Watches of Switzerland retailers will be available to offer second-hand models under this program and display a plaque indicating their participation. – Read More on Yahoo
1. In China, It’s Time to Splurge Again, and the Luxury Industry Is Relieved: “I change my handbag every day,” Ms Zhang added. “I felt that everything was meaningless during the Shanghai lockdown, so we should enjoy the present moment in time.” – Read More on the NYTimes
2. Some shelves lie empty as retailers struggle to predict demand: Supply chain issues and a reluctance to strike deals with suppliers while commodities prices are high are also contributing to erratic stocks of goods as diverse as chocolate and shampoo, with war and weather playing a part too. – Read More on Reuters
3. Implementing Sustainable Design Strategies in the Retail Environment. Purpose-driven consumers — those who choose brands based on how well they align with their values — represent the largest segment of consumers. These shoppers are willing to pay a premium for sustainability. – Read More on Retail Touch Points
4. Businesses Turn to Shopping Data to Find Their Best Customers: Set key performance indicators around variables such as propensity to spend, shopping habits and other relevant demographics. And then use data to make informed, accurate decisions about customers — with the greatest return on investment and lowest risk. – Read More on PYMNTS
5. Human Error Drives Most Cyber Incidents. Could AI Help? Although sophisticated hackers and AI-fueled cyberattacks tend to hijack the headlines, one thing is clear: The biggest cybersecurity threat is human error, accounting for over 80% of incidents. – Read More on HBR
6. Estée Lauder Shares Plunge as Asian Travel Retail Faces ‘Serious’ Headwinds: “We are going through an inventory issue, and with the profit pressure created by this high-inventory issue,” Mr. Freda added. – Read More on the WSJ
1. Ending the retailers’ crisis has a high price tag: Shrinking disposable income is making it hard for mass-market retailers to boost sales to protect margins, quashing hopes that high-street brands can copycat luxury players like Hermès and Chanel and simply hike prices to compensate for their growing cost base. – Read More on Reuters
2. RETRO READ: Luxury Brands Boast Warranties, Repair Services Amid Price Hikes, Circularity Push. There is the undeniable element of pricing. It is almost certainly not a coincidence that a number of the newly-introduced warranty/maintenance initiatives come as brands across the board have been aggressively raising their prices. – Read More on TFL
3. The New Risks ChatGPT Poses to Cybersecurity: ChatGPT is a game changer, affording hackers from all over the globe a near fluency in English to bolster their phishing campaigns. Bad actors may also be able to trick the AI into generating hacking code. And, of course, there’s the potential for ChatGPT itself to be hacked. – Read More on HBR
4. South Korea emerges as key battleground for global luxury brands: As the domestic luxury market grows, more luxury brands are entering Korea directly. French luxury brand Celine entered the Korean market directly in January after ending its contract with Shinsegae International. – Read More on Inside Retail
5. Rise of the Newsbots: AI-Generated News Websites Proliferating Online: NewsGuard has identified 49 news and information sites that appear to be almost entirely written by artificial intelligence software. A new generation of content farms is on the way. – Read More on NewsGuard
6. Shein, Fast Fashion Hit With Gen Z, Tries Charm to Counter Scrutiny: As you grow, people want to know more than just what product do you sell? They want to know who you are as a brand. What are your values? How are you making your clothes — what are they made out of?” – Read More on the NYTimes
1. US lawmakers push SEC to order audit of Shein IPO over Uyghur forced labor fears: A bipartisan group of two dozen U.S. representatives was calling for the Securities and Exchange Commission to halt the initial public offering of Chinese-founded fast-fashion giant Shein until it verifies it does not use forced labor. – Read More on Reuters
2. As banks fail, retail bankruptcies rise: Bankruptcies by the likes of BBBY and David’s Bridal are emblematic of larger problems, including inventory-related issues and consumer purchasing behavior. – Read More on Axios
3. Corporate ChatGPT Applications Grow Despite Legal Scrutiny. Amid the regulatory scrutiny, companies that are using or considering experimenting with ChatGPT should take precautions like drafting policies aimed at preventing employees from inputting sensitive or proprietary data. – Read More on the WSJ
4. A Conversation with UGG Founder, Brian Smith, on Building a Multi-Billion Dollar, Iconic Brand: “We waited 15 years before venturing into the mass market. The aim was to establish a strong presence in niche distribution channels.” – Read More on Thought Economics
5. Big Tech Leans on AI to Stabilize After Brutal Year: “I think that’s going to really rapidly accelerate our vision of becoming the world’s best personal assistant. I think there’s a significant business model underneath it,” Amazon’s Andy Jassy said. – Read More on PYMNTS
6. What Gen Z really wants: A report, from the Walton Family Foundation and Murmuration, paints a picture of a generation that prizes family and well-being over money-making, isn’t afraid to job-hop, and sees civic participation as vital to advancing their values. – Read More on Axios
1. Chanel boss seeks to put IPO rumors ‘to rest.” Nair said Chanel was “continuing to look at” opportunities to further consolidate its supply chain. The company acquired more than two dozen suppliers in 2021, part of a $1.1bn investment in technology, property and manufacturing. – Read More on the FT
2. SEC climate disclosure rule delayed until fall, former commissioner says: The proposed SEC rule, unveiled in March 2022, would require publicly traded companies to disclose their greenhouse gas emissions and any climate-related risks to their operations. – Read More on S&P Global
3. The lucrative clothing deals agreed upon by the US and Kenyan governments: Six new co-investments totaling $55 in the clothing industry have been agreed upon by Kenya and the US, bringing the total number of agreements secured in the past month to 20. – Read More on Insider Intelligence
4. The Shining Promise and Dashed Dreams of China’s Live Shopping Craze: The Chinese government, worried that the business was growing too big, too fast, has issued a flood of ever-evolving regulations. Celebrity hosts have abruptly disappeared from view. – Read More on the NYTimes
5. China’s online sellers are revolting against a barrage of refunds: Merchants have banded together to push back in creative ways that include suing buyers and “store-bombing” Pinduoduo-backed businesses with comments and refund requests. – Read More on Rest of World
6. Retailers are using ChatGPT to help people pick what to buy: “What makes ChatGPT unique as opposed to the existing chatbots that we have in retail at the moment is that it’s much more conversational in tone and it can remember the context.” – Read More on Modern Retail