Daily LInks
1. According to his calculations, customers pay a mark-up of 10 times or more on a luxury leather bag, excluding other expenses typically borne by manufacturers. The gross margin for a luxury leather bag is generally around 80 or 85 percent. – Read More on the FT
2. RETRO READ: What Are Luxury Brands Really Selling? This association or larger brand image/ethos is to a large extent what consumers are buying when they purchase a product, and conglomerate-owned labels, in particular, know and have been pursuing this as a business model for decades. – Read More on TFL
3. Brands Are Making the Same Mistake as Amazon: Online retailers were wrong about the digital shopping boom lasting forever. But that doesn’t mean we’ll stick to IRL buying for long. – Read More on Bloomberg
4. The Laundress seeks to toss lawsuits filed over bacteria exposure: “Because [The Laundress] has tendered a full remedy for the only injury plaintiffs claim they suffered, plaintiffs’ claims are moot,” Unilever’s motion to dismiss states. – Read More on Modern Retail
5. U.S. court says French, Swiss groups cannot restrict ‘gruyere’ cheese label: The name “gruyere” can be used to label cheeses from outside of the Gruyère region of Switzerland and France, a U.S. appeals court said on Friday, in a victory for U.S. dairy groups and others. – Read More on Reuters
6. China E-Commerce Giant JD Set for $1.4 Billion Discount Spree: China’s internet firms are revving up efforts to outdo each other since Beijing began to wind back its bruising crackdown on the tech sector, spurring an abrupt surge in competition that’s spooking investors. – Read More on Yahoo
1. Judges, not lawmakers, are setting 2023’s tech policy: Technology moves faster than Congress can keep up with, and in the absence of new laws, lasting decisions about tech regulation are being determined by judges and courts across the country. – Read More on Axios
2. Green is the new black as fashion sector fast-forwards on sustainability trend: “Companies that had better production practices in place to start with, and a better contract, were the ones (that) came through the pandemic better, so there’s a recognition that that is more and more important.” – Read More on Reuters
3. The 8 Responsibilities of Chief Sustainability Officers: From anticipating regulatory trends and their implications, and preparing the completion and communications of a company’s ESG report to promoting ongoing dialogue with internal and external stakeholders in order to develop constructive, transparent relationships. – Read More on HBR
4. China’s Newest Weapon to Nab Western Technology—Its Courts: The battle over China’s acquisition of technology has raged for years. Counterfeit products and logo look-alikes are pervasive in China. Recently, Beijing has tried to crack down on domestic companies violating the IP rights of some foreign firms. – Read More on the WSJ
5. Fashion industry can cut overproduction by 15%: The global fashion industry could reduce waste and cut costs by reducing its production levels, and prioritizing quality over quantity. A new study suggests that some fashion categories are producing as much as 15% too much output, with most of that ending up in landfill. – Read More on Consultancy UK
6. Hong Kong retail sales rise in Jan, inbound tourism to add to cheer: In January, sales of jewelry, watches, clocks and valuable gifts, which before the pandemic were mostly to tourists from mainland China, jumped 23.1% from a year earlier. – Read More on Reuters
1. In trademark squatting cases, the burden shifts to companies to make their case: Companies that contend someone else has applied for a trademark inappropriately have a window during the examination process to register their opposition. Ottawa added a new criterion for challenges: that the application was made in “bad faith.” – Read More on Globe & Mail
2. Over a century since launching its famed boots, L.L.Bean sued over a ‘waterproof’ claim: L.L.Bean Inc., the famed Freeport retailer that got its start 111 years ago selling boots for wet weather, has been sued for false advertising. – Read More on Press Herald
3. Why fashion houses are getting into video games: The younger generation don’t think about it as ‘my physical life’ and ‘my digital life’. It’s just all the same. – Read More on the Guardian
4. E-commerce continues to grow in the EU. In 2022, 91% of people aged 16 to 74 in the EU had used the internet, 75% of whom had bought or ordered goods or services for private use. The proportion of e-shoppers grew from 55% in 2012 to 75% in 2022. – Read More on EuroStat
5. From condoms to cosmetics, China sales grow as lockdowns end: The world’s top consumer and luxury goods companies have seen sales grow in China since Beijing ended strict COVID-19 curbs, another sign that the world’s No. 2 economy is reviving after the pandemic. – Read More on Reuters
6. The RealReal Looks to Consign Its Way to Near-Term Profitability: With its stock trading at about $1.35 per share — after falling over 90% in the past two years — it could be argued there’s not a lot more downside for luxury resale marketplace The RealReal. – Read More on PYMNTS
1. Companies scramble to incorporate generative AI in products: Technologies like ChatGPT and image generators such as Dall-E 2 and Stable Diffusion have captured the imagination of the tech industry and beyond. – Read More on Axios
2. Can clothes ever be fully recycled? Just 1% of recycled clothes are turned back into new garments. While charity shops, textiles banks and retailer “take-back” schemes help to keep those donated clothes in wearable condition in circulation, the capabilities of recycling clothes at end-of-life are currently limited. – Read More on the BBC
3. Four Companies That May Show a Path for ‘Recession-Proof’ Fashion: Since November 2022, Bottega bags also boast a “certificate of craft,” meaning buyers are entitled to lifetime warranty and unlimited repairs. – Read More on the WSJ
4. Three pandemic retail tech trends that have lost their luster: Meta don’t seem to be that confident in livestreaming’s growth. The live shopping feature on Instagram was made widely available to businesses and creators in 2020 but was just recently axed. – Read More on Modern Retail
5. Balaan accounts for nearly half of all online luxury goods sales in Korea: Balaan said Tuesday it racked up 680 billion won ($513.4 million) in transactions last year, up sharply from 315 billion won in 2021, as more people purchased luxury bags and other high-end items through the online platform. – Read More on Korea Times
6. The SPAC Fad Is Ending in a Pile of Bankruptcies and Fire Sales: At least eight businesses that went public through mergers with “blank-check” companies have sought protection from creditors. – Read More on Bloomberg
1. Why Retailers Fail to Adopt Advanced Data Analytics: Advanced analytics have been available to businesses for years and are getting better all the time, but with a few big exceptions most retailers still use very basic tools. They do this even though they understand the advantages that analytics have given their competitors. – Read More on HBR
2. Chinese E-Commerce Flourishes on U.S. Soil: Chinese e-commerce apps are making a play for Americans shopping. Affordable prices and clever use of social media have worked wonders for growth. But profitability might be harder. And political risks are still lurking in the background. – Read More on the WSJ
3. Tradition & Innovation Collide at Decentraland’s Metaverse Fashion Week: Dolce & Gabbana, Tommy Hilfiger, COACH, adidas, DKNY, Vogue Singapore, Monnier Paris, DUNDAS, Phygicode Dress in collaboration with Rubin Singer, and others lead an all-star lineup at Metaverse Fashion Week 2023. – Read More in Press Release
4. Adidas has $500 million worth of Kanye West sneakers and no good options: “What makes this so dramatic is how big it is,” said Wedbush analyst Tom Nikic, noting that the Yeezy brand was doing nearly $2 billion a year in revenue. “That’s really a big, substantial part of [Adidas’s] business — and the abruptness with which it happened” is also remarkable. – Read More on Washington Post
5. Farfetch Aims to be at Center of Luxury Brands’ Shift to Digital: The increased focus on its first-party customer data is of increasing value to brands “especially in light of increased privacy restrictions that have reduced the ability to attribute marketing performance in the overall marketing landscape.” – Read More on PYMNTS
6. Generative AI’s money game: It seems logical that if AI can conduct conversations and produce images, companies will figure out how to use it to build revenue and profits — but there’s no guarantee, and the technology could also become a money sink for early adopters. – Read More on Axios
1. From McDonald’s to Ralph Lauren, U.S. Companies Are Planning China Expansions: Many companies that are increasing their commitments to China are consumer-facing. They still view China’s enormous market as a promising long-term bet, even if sales took a hit during the zero-Covid era. – Read More on the WSJ
2. Alibaba shows limits of China’s reopening boon: Alibaba on Feb. 23 reported revenue of 248 billion yuan ($35.9 billion) in the three months to December, an increase of 2% year-on-year. Adjusted earnings rose 12% to 40 billion yuan. – Read More on Reuters
3. Malaysia to Introduce Taxes for Luxury Goods Starting This Year: Malaysia will introduce a Luxury Goods Tax starting this year for items of a certain value limit, Finance Minister Anwar Ibrahim said in a budget speech to parliament. – Read More on Bloomberg
4. What Gucci and others learnt from the metaverse: Even stepping inside a Chanel or Hermès boutique is more than many people have the nerve to do. Compared with exclusive environments like these, the metaverse is a less intimidating setting, particularly for younger consumers used to interacting and spending money virtually. – Read More on the FT
5. How online buyers of luxury collectibles reshaped auctions in an economic slump: In December in a patchily performing online-only handbags sale, Christie’s sold a two-year-old Hermès Kelly 25 for $18,900, contributing to the $779m proceeds of its 2022 global luxury auctions, the main entry point for new clients at Christie’s. – Read More on the Art Newspaper
6. How ChatGPT’s AI Will Become Useful: Despite early glitches, useful things are coming. Search boxes aren’t very conversational. Using them is like grunting words to zero in on something you suspect exists. Now a more natural human interface can replace back-and-forth conversations. – Read More on the WSJ
1. Cartier is in the sights of LVMH Moet Hennessy Louis Vuitton SE, according to Swiss paper Finanz und Wirtschaft. There are “whispers” in the luxury industry of a potential takeover of Cartier-owner Cie Financiere Richemont SA by LVMH. – Read More on Bloomberg
2. German carmakers survive first round of climate lawsuits: German carmakers made it unscathed through a series of lawsuits led by environmental groups demanding they restrict their carbon emissions, with the final ruling issued on Friday – but the battle is not over, with all plaintiffs pledging to appeal. – Read More on Reuters
3. Amendments to China’s Trademark Law – Improving IP Use and Protection: New amendments to the China trademark law seek to improve the use and protection of trademarks by tackling anti-competitive behavior and simplifying some registration procedures. – Read More on China Briefing
4. OECD says global economic outlook ‘slightly better’ for 2023 but inflation risks linger: “Inflation is starting to tick down, but we are not on top of the inflation challenge yet. There is more work to be done to tackle inflation and that comes with risks.” – Read More on CNBC
5. TJX Sales Climb as Consumers Hunt for Bargains: The tightening in consumer spending is expected to be a boon for TJX and other off-price retailers as customers, wary of a potential recession on the horizon, become more sensitive to higher prices and hunt for more bargains. – Read More on the WSJ
1. Luxury stocks have the kind of momentum Big Tech did in the 2021 bull market: “Luxury stocks have been an investor favorite for a while now but the fact that the big tech stocks don’t have much wind in their sails at the moment is putting the spotlight on them, especially with the Chinese economy reopening.” – Read More on Fortune
2. Fighting Corporate Lies: “The best way to tackle greenwashing was to require companies to disclose more information, to explain what they mean when they present their climate plans or label a product in a certain way.” – Read More on the New York Times
3. Resale market for sneakers loses froth as prices tumble: Price declines are signaling that the froth has left the market, leading sneaker heads and analysts alike to wonder if the market is crashing — or just normalizing. – Read More on Axios
4. UK lawmakers clash with fund industry over plan to tackle greenwashing: The Financial Conduct Authority’s (FCA) sustainability disclosure requirements (SDR) are aimed at protecting consumers from fund managers exaggerating their climate credentials and arming savers with better information about where their money goes. – Read More on Reuters
5. Anthropic A.I. Sues AI Company for Trademark Infringement: Anthropic A.I., an artificial intelligence development and design company, is suing A.I. research and development company Anthropic, Inc. for alleged trademark infringement. – Read More on Bloomberg
6. What Luxury’s Resilience Says About Marketing in a Downturn: With strategies rooted in experiences, excitement and escapism, luxury has been buoyed by a post-lockdown desire from people to “catch up” on experiences disrupted by the pandemic. – Read More on Ad Week
1. Will Hermès Stall After a Stellar Year? Hermès will continue to occupy that sweet spot in the middle by holding its quiet luxury ground. The strategy makes sense for the affluent luxury consumer who is not social media or trend driven. – Read More on Yahoo
2. Gucci invests in first Circular Hub to power a “Circular Made in Italy.” The “Circular Hub” will aim to accelerate the circular transformation of the Italian fashion industry’s production model, through the redefinition of the entire value chain. – Read More from Kering
3. Luxury sector eyes reopening of China: “There is an incredible amount of savings that has been built up, an incredible reserve in the hands of the well-off class which wants to purchase luxury goods.” As such, the luxury market in China could jump by 30 percent this year. – Read More on Japan Today
4. Microsoft, Google, and a New Era of Antitrust: An aggressive litigation strategy can provide a potent disruption to companies deemed too powerful. But these cases also send a message to European regulators, who have stepped into a leading role on antitrust. – Read More on HBR
5. Biden admin won’t veto ITC’s Apple Watch import ban ruling: The Biden Administration has decided not to overrule a U.S. International Trade Commission decision that could block imports of Apple Inc’s Apple Watches for infringing AliveCor Inc patents related to heart monitoring. – Read More on Reuters
6. Shein Sees Its Fast Fashion Sales Eclipsing Zara and H&M Combined: Shein is reportedly telling investors that it plans to double its revenue by 2025. The online fast fashion giant also expects its gross merchandise value will rise 174% over that same time. – Read More on PYMNTS
1. From retail to transport: How AI is changing every corner of the economy. Almost a third of retail jobs could be displaced by technology by 2030 compared with 2017 levels, as automated tills, warehouse robotics and AI-based planning tools affect the UK’s biggest employer. – Read More on the Guardian
2. White Castle could face multibillion-dollar judgment in Illinois privacy lawsuit: The Illinois Supreme Court in a 4-3 decision said fast food chain White Castle System must face claims that it repeatedly scanned fingerprints of nearly 9,500 employees without their consent, which the company says could cost it more than $17 billion. – Read More on Reuters
3. U.S. lawmakers are looking to clamp down on what Senator Ron Wyden calls “trade cheats” – or countries and companies that use forced labor, steal American intellectual property or use illegally harvested commodities in their products. – Read More on Bloomberg
4. Pharrell Is Now a Celebrity Designer. Is He Fashion’s New Norm? The creative director job has “evolved away from being a designer. This is more of a marketing promotional leadership role for the brand.” – Read More on the WSJ
5. Why live-streaming e-commerce, popular in China, has yet to catch on in the U.S. Tech giants from Meta Platforms to ByteDance face challenges in cracking the live-streaming e-commerce market in the U.S., as technological gaps and a lack of charismatic talent have made it difficult for businesses to recreate the popular shopping trend in China. – Read More on SCMP
6. Virgin wins $160M in trademark dispute with Alaska Airlines: Virgin Group won its trademark case against Alaska Airlines Inc for approximately $160 million, with a judge in London ruling that it is entitled to royalties even though the U.S. airline no longer uses the Virgin brand. – Read More on Reuters