Daily LInks
1. Sustainable fashion is finally going mainstream. There are companies that are not just focused on innovating in the realm of creating sustainable fashion but of addressing waste. The problem is that launching large efforts to facilitate textile waste processing is a very expensive proposition. – Read More on Fast Co.
2. AI is helping startups scale at a rapid pace. “Business models are changing. I see tech companies with 10, 20, 30 people and a high EBITDA automating their back office. It’s not about capital anymore. It’s about creativity.” – Read More on Fortune
3. Ex-Workers at Temu Parent Say Noncompete Penalties Crush Their Finances. Noncompetes are being used against rank-and-file workers in China. Former employees and court data suggest that PDD has enforced such agreements with particular determination to thwart potential rivals. – Read More on the WSJ
4. RELATED READ: What Does the Shifting State of Noncompetes Mean for Fashion Companies? The budding issue is the growing pushback against noncompete clauses among lawmakers and regulators. – Read More on TFL
5. The Children’s Place dodges lawsuit over ‘forever chemicals’ in school uniforms. The judge said that it is “at least plausible” that school uniforms contain PFAS, but the plaintiff has not shown the company lied or misled consumers about it in marketing materials even if they do. – Read More on Reuters
1. Here’s how fashion shoppers want to use AI. Three-in-10 respondents believe AI-trained shopping assistants can identify fashion trends better than they can. In addition, close to 23% of respondents believe AI-trained shopping assistants can help keep their wardrobe from becoming dated. – Read More on CSA
2. What’s the future for luxury online shopping? “It’s hard for the multi-brand stores when they’re left with this inventory to negotiate with labels who care so much about their reputation and value; they want to be seen as selling at full price.” – Read More on Harper’s Bazaar
3. Billie Eilish, Nicki Minaj among artists warning against AI use in music. The artists warned that the unregulated use of AI in the music industry could “sabotage creativity and undermine artists, songwriters, musicians and rightsholders,” according to the letter. – Read More on the Hill
4. A Hit Brand’s ‘One Size Fits Most’ Clothing Is Dividing America’s Teens. It is a formula that has made Brandy Melville extremely popular with a subset of teens and young adults. It has also courted controversy, including allegations of discrimination. – Read More on the WSJ
5. RETRO READ: Brandy Melville, the Controversial Brand that Sells Exactly What Tweens Want. Brandy Melville is best known for its sizing. Almost everything in the store, except for its denim and some other styles of pants, come in one size—what it calls “one size fits most.” – Read More on TFL
6. Mindset around IPOs is starting to change. The pricing of Reddit Inc.’s IPO along with the success of Astera Labs Inc.’s IPO — both in the first quarter — have increased the excitement around going-public deals. – Read More on S&P Global
1. Investors are still underestimating the long-term impact of AI. L’Oréal recently reported how an AI-powered app delivered a 63%-point uplift in the conversion rate of inquiries into sales compared with traditional counter selling methods. Launching commercially in April, the app makes personalized product recommendations to the user. – Read More on the FT
2. Shein doubles profits as it awaits IPO approval. Shein, the online fast fashion retailer founded in China, has more than doubled its profits to more than $2bn as it awaits approval for a stock market listing in New York or London. – Read More on the Guardian
3. RELATED READ: Will Shein Prompt the SEC to Adopt a New Forced Labor Certification? Attorneys for various states are looking to the United States’ stock market regulator to ensure that companies listed on U.S. exchanges – including potentially Shein – are acting in compliance with U.S. trade law. – Read More on TFL
4. Google Pledges to Destroy Browsing Data to Settle ‘Incognito’ Lawsuit. The class action, filed in 2020, accused Google of misleading users about how Chrome tracked the activity of anyone who used the private “Incognito” browsing option. – Read More on the WSJ
5. Apple, Google again lose lawsuit challenging US patent-review policy. Major tech companies have failed to convince a California federal court that the U.S. Patent and Trademark Office unlawfully implemented a rule that reduced the number of patent-validity reviews the office considers. – Read More on Reuters
1. The implosion in luxury ecommerce. The implosion at both Matchesfashion and Farfetch represent a dramatic reckoning for the luxury ecommerce sector, which until recently had been the beneficiary of some of the most powerful trends of the past decade — the era of easy money, a historic boom in luxury goods sales and Covid. – Read More on the FT
2. How fashion can afford and accelerate decarbonization. Our analysis has found that two in five brands have seen their emissions intensity increase. Only 37 percent are on track to reach their 2030 decarbonization goals. – Read More on McKinsey
3. Shein’s fast fashion comes with fast-finance risks. It gathers info on how consumers browse and what flicks their switches. It then serves up that information to around 5,000 manufacturers, who can create small-batch products sold on Shein’s platform. – Read More on Reuters
4. Is Your Company’s Data Ready for Generative AI? 80% of CDOs and data leaders agreed that gen AI would eventually transform their organization’s business environment, and 62% said their organizations were planning to increase spending on it. – Read More on HBR
5. Gwyneth Paltrow’s Goop hit with trademark lawsuit over female health products. Good Clean Love Inc. is suing Gwyneth Paltrow’s company that specializes in female and health hygiene products for allegedly selling products using a confusingly similar trademark and creating a likelihood of reverse confusion. – Read More on Fortune
1. Consumers win with EU’s Green Claims Directive, but marketers fear “greenhush” fallout. Under the Green Claims Directive, which passed the European Parliament earlier this month with an overwhelming majority, large European companies will be required to provide scientific validation before using terms such as “eco-friendly”, “biodegradable” or “sustainable”. – Read More on Reuters
2. RELATED READ: Amid Increasing Scrutiny, How Brands Can Counter the Risk of Greenwashing. Products that are marketed as sustainable without clear evidence to support these claims or where the evidence is somewhat contrary can be said to be indicative of information asymmetry – a form of market failure. – Read More on TFL
3. The AI Perils Buried in the Fine Print. “Unintended consequences, uses or customization of our AI tools and systems may negatively affect human rights, privacy, employment or other social concerns,” Google owner Alphabet wrote in its Jan. 31 annual report. – Read More on Hollywood Reporter
4. Fast Fashion Retailers Asos and Boohoo Forced to Clarify Green Claims. Asos, Boohoo Group Plc and Asda’s clothing brand George have signed formal agreements with the Competition and Markets Authority to use only “accurate and clear” green claims. – Read More on Bloomberg
5. In a Surprise Twist, Ex-Gucci Designer Alessandro Michele Takes Over at Valentino. Despite that viral magic, by the end of Michele’s tenure, sales at Kering’s Gucci were lagging behind its rivals at LVMH like Louis Vuitton and Dior, who lean on older, wealthier customers for more of their sales. – Read More on the WSJ
6. Creating a Corporate Social Responsibility Program with Real Impact. Embracing a dynamic, data-driven approach to CSR is essential for meaningful social and environmental impact. – Read More on HBR
1. Secondhand clothing on track to take 10% of global fashion sales. The U. secondhand market grew seven times faster than overall fashion retail where sales were flat in 2023 from a year earlier. – Read More on the Guardian
2. Is time running out for fast fashion? Restrictive new EU legislation now looks like a real risk for clothing companies that have been relying on a high-volume, low-price model. – Read More on the FT
3. RELATED READ: Keeping Up with the Laws of the Fashion, Beauty & Luxury Business in Europe. The European Commission’s goal for the textile sector is to create a greener, more competitive, and resilient fashion industry which respects social and environmental rules. – Read More on TFL
4. Chanel Flap Bag Now Costs More Than €10,000 in Paris. In a sign that some luxury brands are willing to keep pushing prices higher despite weakening demand, Chanel has lifted the price tag of its best-known bag to €10,300 in the French capital. That’s up about 6.2% from €9,700 earlier this year. – Read More on Bloomberg
5. Has the Luxury E-Commerce Bubble Burst? After the pandemic boom, many e-commerce platforms were overstocked and left with mountains of unsold inventory. They subsequently resorted to aggressive promotions and discounting. This pushed heavyweight brands to seek more control over their e-commerce and distribution. – Read More on the New York Times
6. Tod’s investor calls for L Catterton to raise buyout offer. Tod investor Tabor Asset Management has published an open letter calling for an increase in the price offered by L Catterton to buy 36% of the Italian luxury shoemaker, saying the price of 43 euros per share is unfair. – Read More on Reuters
1. This Startup Promised to Help Fashion Go Green. Brands Didn’t Want to Pay for It. Having misjudged how quickly the fashion industry would switch to more sustainable sourcing, Renewcell was left with a costly factory running far below capacity. – Read More on the WSJ
2. US, UK accuse China of cyberespionage that hit millions of people. American officials said that the hackers’ decade-plus spying spree compromised defense contractors, dissidents, and a variety of U.S. companies, including apparel firms. – Read More on Reuters
3. As March Madness unfolds, more brands look to get involved in NIL deals. NIL deals, which allow athletes to receive financial compensation for their name, image and likeness, have opened a new lower-cost opportunity for brands to be involved with big college sporting events like March Madness outside of traditional corporate sponsorships. – Read More on Modern Retail
4. RELATED READ: How Brands Can Navigate the NCAA Athlete Advertising Landscape. he NCAA’s adoption of an interim NIL policy is proving to be attractive to brands, including those outside of the sporting goods space. – Read More on TFL
5. Should SHEIN and Fast-Fashion Retailers Be Subject to Additional Fines? The bulk of fashion’s emissions occur during production, yet industry leaders resist changes to overproduction and design practices. – Read More on Retail Wire
6. US companies increasingly opt to reorganize in bankruptcy, not liquidate. Reorganization is becoming a more popular option for US companies seeking to address their financial challenges through bankruptcy. – Read More on S&P Global
1. China’s luxury tastes are changing. China’s $8 billion-plus second-hand luxury market is booming, and shopper preferences are shifting away from affordable, mass market luxury to less frequent but higher-end purchases. – Read More on the FT
2. The tech industry can’t agree on what open-source AI means. That’s a problem. The concept of open source was devised to ensure developers could use, study, modify, and share software without restrictions. But this doesn’t translate from software to AI neatly. – Read More on MIT Tech Review
3. Japan company beats ‘bad-faith’ trademark filer in Chinese court. For a Chinese court to revoke trademark rights on the grounds of unfair competition is “unprecedented,” said Ming Xingnan, a Chinese attorney who represented MTG in court. – Read More on Nikkei
4. Has Fashion Canceled Canceling? “None of these people” – or brands – “were ever actually canceled.” They were simply moved out of the spotlight and have since returned. – Read More on the New York Times
5. RELATED READ: A Year After Balenciaga Was Nearly Cancelled, a Look at the State of the Brand. Fast forward to March 2023, and signs of a comeback for Balenciaga and its creative director Demna – who managed to remain in his role amid the fallout, as did CEO Cédric Charbit – seemed to be quietly coming about. – Read More on TFL
6. Consumers sue Apple, taking page from US Justice Department lawsuit. At least three proposed class actions have been filed in CA and NJ federal courts by iPhone owners who claim Apple inflated the cost of its products through anticompetitive conduct. – Read More on Reuters
1. Nike’s Aging Sneaker Models Feel Heat From Upstarts. Company will reduce supply of classic shoes ahead of launches as it works to realign merchandise to better match what shoppers want to buy. – Read More on Bloomberg
2. UN adopts first global artificial intelligence resolution. The nonbinding resolution, proposed by the United States and co-sponsored by China and over 120 other nations, encourages countries to safeguard human rights, protect personal data, and monitor AI for risks. – Read More on Reuters
3. How AI Is Changing Retail. AI deployment is expected to grow nine-fold in the next two years, enhancing store analytics, loss prevention and asset protection to reduce costs and lead to higher profits. – Read More on Nasdaq
4. AI Will Transform Retail. Many retailers have used some form of AI for years in demand forecasting, supply-chain logistics, and online-shopping algorithms, but generative AI offers something new. – Read More on Barron’s
5. Tennessee becomes the first state to protect musicians and other artists against AI. The Ensuring Likeness Voice and Image Security Act, or ELVIS Act, is an updated version of the state’s old right of publicity law. While the old law protected an artist’s name, photo or likeness, the new legislation includes AI-specific protections. – Read More on NPR
1. Apple accused of monopolizing smartphone markets in US antitrust lawsuit. The U.S. Department of Justice and 15 states on Thursday sued Apple as the government cracks down on Big Tech, alleging the iPhone maker monopolized the smartphone market, hurt smaller rivals and drove up prices. – Read More on Reuters
2. Who’s the Aspirational Luxury Consumer? Many Different People. The cohort has different tastes, financial resources, purchasing habits, inclination to become a true luxury consumer and different ages and backgrounds. – Read More on Yahoo
3. What France’s crackdown on Shein and Temu means for global ultra-fast fashion. “Hopefully, [it] helps become a model or move other regulatory bodies to consider these issues and consider what the role of regulation is in addressing the challenges we’re seeing in the industry.” – Read More on the BBC
4. Shein to Market Its Unique Supply-Chain Tech to Global Brands. Under the plan, Shein would make its supply-chain infrastructure and tech available to outside brands and designers to test out new fashion items in small batches and track how popular they are with consumers. – Read More on the WSJ
5. Should Amazon be afraid of Temu? More than a third of the U.S. e-commerce market flows through Amazon. Now Temu wants to undercut its U.S. rival, delivering impossibly cheap stuff to Americans straight from factories in China. – Hear More on the Economist