Daily LInks
1. How Retailers Use Sustainability and Modern Marketing to Drive Brand Loyalty: Sustainable business practices help retailers differentiate and gain customer loyalty by offering greater transparency on individual product life cycles. – Read More on SAP
2. Inflation is cooling, but prices on many items are going to stay high for months: To protect against unpredictable price spikes, many companies have long-term contracts that set the prices they pay to operate their businesses months in advance. – Read More on CNBC
3. Block Inc. Can Keep Using Name in H&R Block Trademark Spat. A split Eighth Circuit reversed a trademark injunction won by H&R Block Inc. – Read More on Bloomberg
4. Get Ready for the Fourth Wave of E-Commerce: Brand manufacturers are developing their own DTC channels with the potential to capture large amounts of end consumer data. – Read More on Inc.
5. Almost one in three U.S. adults have purchased a luxury good in the last month: Despite inflation remaining at relatively high levels, consumers are still purchasing luxury goods, with 30% of adults purchasing at least one luxury item within the last month. – Read More on Yahoo Finance
6. Hong Kong’s retail market faces ‘slow recovery’ as surging Covid-19 cases rain on the parade of city’s open border: A recent uptick in the number of enquiries from potential shop tenants betting on a flood of mainland visitors returning will be short-lived. – Read More on SCMP
7. Prada’s Lorenzo Bertelli sets out ‘soft transition’ to new leadership: Bertelli added that the group is still assessing the feasibility of a dual listing on the Milan stock exchange, to complement the one it has in Hong Kong. – Read More on Reuters
1. Consumers Tired of Inflation Scrimp—and Splurge: People are also looking for luxury at more affordable price points in the secondhand market. “That’s allowing them to do more revenge spending than they have been doing before.” – Read More on the WSJ
2. Why K-pop rules fashion week: As South Korean pop music becomes an increasingly global obsession, and as luxury megabrands sign more and more deals with its leading stars, K-pop groups’ fanatical young followers have become a fixture. – Read More on CNN
3. RETRO READ: Fashion Brands Continue Leverage the Power of Asia’s Biggest Pop Stars. Add to LVMH’s eagerness to invest in Korean companies the interest of the fashion industry (as a whole) in the country’s biggest stars. Chanel and Fendi, for example, continue to tap K-Pop stars to appear in their campaigns and sit in the front row of their runway shows. – Read More on TFL
4. Luxury boom shows the staying power of the ultra-rich: One of the most interesting differences between the post-Covid luxury boom and the post-2008 market is that, this time around, there seems to be no worry about conspicuous consumption. Perhaps this is a hangover from the “greed is good” Trump era. – Read More on the FT
5. Big opportunities are in luxury goods that have a lot of price leverage: Beauty and luxury remain top sectors amidst growing caution on the middle- and low-income consumer, Oliver Chen, senior research analyst at Cowen. – Read More on Bloomberg
6. Inflation Isn’t Just Pinching Wallets. It’s Squeezing Handbags, Too: “Our Quarterly Handbag Promo Tracker suggests there could be demand risk in the accessory and handbag segment as the pressure of inflation creeps to higher household income brackets.” – Read More on Barron’s
1. Judge dismisses Whole Foods workers’ lawsuit over ‘Black Lives Matter’ masks: U.S. District Judge Allison Burroughs found little evidence to refute Whole Foods’ “legitimate business explanations” for strictly enforcing the dress code, and no significant evidence it targeted the plaintiffs by firing them in the summer of 2020. – Read More on Reuters
2. Adidas’ Recent Trial Loss Unlikely to Deter Brand Enforcement: The fear among large brands is that without aggressive prosecution, a once-distinctive trademark may lose its value as more and more third parties begin to use similar looking marks. – Read More on Bloomberg
3. RELATED READ: Thom Browne Beats Out adidas in Stripe-Centric Trademark Battle. At the heart of adidas’ case was its claim that consumers “are likely to assume that [Thom Browne’s] goods originate from the same source, or that they are affiliated, connected, or associated with [adidas]” when no such affiliation exists. – Read More on TFL
4. The 100 most sustainable companies of 2023 still flourishing in tumultuous times: While the average gender diversity of Global 100 boards inched upward slightly to 34%, that figure shot up from 23% to 32% for the broader universe of more than 6,000 companies analyzed. – Read More on Corporate Knights
5. How the new ESPR legislation will impact intellectual asset protection: The ESPR aims to establish a framework to improve transparency around circularity, energy performance and environmental sustainability of products among product manufacturers, dealers, importers and distributors. – Read More on OAG
6. New study suggests AI will revolutionize fashion design: The research notes the use of AI in the fashion industry has grown significantly in recent years. For example, it is already being used to personalize fashion recommendations for customers, optimize supply chain management, automate processes, and improve sustainability to reduce waste. – Read More on Just Style
1. How ‘groupist culture’ and social media are fueling South Koreans’ craze for luxury goods: Luxury goods purchases by customers in their 20s in S. Korea doubled every year, far exceeding overall luxury sales growth since 2016, while customers in their 30s became the largest contributor to luxury sales. – Read More on SCMP
2. How Price Changes Influence Consumers’ Buying Decisions: Buyers are more likely to buy now if they see a single large price decrease or a series of smaller price increases, because they’ll assume that the price will go up if they wait. – Read More on HBR
3. Renaissance in Uncertainty: The impact of a possible global recession in 2023 could differ from the impact of the 2008–09 global financial crisis. The luxury market now appears better equipped to cope with economic turbulence, thanks to a consumer base that is both larger and more concentrated on top customers who are less sensitive to downturns. – Read More on Bain
4. Apple wins appeal to keep $308 million U.S. patent verdict at bay: The U.S. Court of Appeals for the Federal Circuit on Friday affirmed a decision to throw out a $308.5 million jury verdict against Apple for allegedly infringing a patent related to digital rights management. – Read More on Reuters
5. Europe’s luxury sector looking forward to the return of big-spending Chinese tourists: “China reopening is one of the key ‘mega-themes’ for the luxury sector in 2023,” RBC Bank said in a recent note to clients. – Read More on SCMP
1. Russia’s McDonald’s successor applies for trademark in Kazakhstan: Vkusno & tochka, the Russian successor brand to McDonald’s has applied to have its trademarks registered in neighbouring Kazakhstan following the U.S. company’s exit from its market, the Kazakh government said. – Read More on Reuters
2. Allbirds Says eCommerce-Only Model Limits D2C Brands’ Growth Potential: “Being purely D2C can hinder long-term potential because reach is limited. Brands must meet consumers where they are.” – Read More on PYMNTS
3. How the young spend their money: They have thin wallets and expensive tastes. They prize convenience and a social conscience. They want shopping to be at once seamless and personal. They crave authenticity while being constantly immersed in an ersatz digital world. – Read More on the Economist
4. Resale value of Gucci, Chanel, Louis Vuitton handbags is falling: According to The RealReal’s Annual Luxury Consignment Report 2023, handbag resale prices fell 20% for Louis Vuitton, 17% for Gucci, 10% for Hermès and 9% for Chanel over the past 90 days. – Read More on CNN
5. Thinx settled a lawsuit over PFAS chemicals in its period underwear: Class members were notified of the settlement this week. As part of it, Thinx has committed to paying up to $5 million to provide reimbursement as well as making some changes to its marketing and production processes. – Read More on NPR
6. Fashion retailer Shein in talks to raise funds at lower valuation of $64 bln: The latest valuation would be nearly 36% less than the $100 billion the company was reportedly valued at in a funding round last year. – Read More on Reuters
1. Gen Z is driving luxury sales as wealthy shoppers get younger: “By 2030, younger generations (Generations Y, Z, and Alpha) will become the biggest buyers of luxury by far, representing 80% of global purchases.” – Read More on CNBC
2. J. Crew brand launches resale program, to offer vintage styles: J. Crew Group said on Tuesday it had launched a new resale program for its eponymous brand, which will offer used styles online and vintage apparel in select J. Crew stores. – Read More on Reuters
3. Luxury brands are thriving despite the economy—and what that means for marketers: Luxury brands have opened themselves through new channels—including mobile, marketplaces, social shopping, and their own e-commerce businesses. This is all about meeting consumers where they are—which, for millennials and Gen Z, is in the digital world. – Read More on Fast Co.
4. U.S. Retail Sales Fell 1.1% in December: The decline in retail spending late last year adds to signs that the U.S. economy is slowing. Hiring and wage growth eased in December, U.S. commerce with the rest of the world declined significantly in November. – Read More on the WSJ
5. Richemont, Burberry optimistic about China luxury sales: “We’re very positive about the early signs and confident in the long-term opportunity” in China, said Burberry Chief Financial Officer Julie Brown. – Read More on Reuters
1. Head to Tokyo or Seoul for the Latest Gucci and Louis Vuitton: Even with China’s sudden reopening, the market is set to remain volatile: Other countries have issued visa restrictions on Chinese travelers, and luxury executives are still deciphering spending habits and the government’s drive for “common prosperity.” – Read More on the Washington Post
2. Adidas says Berlin Fashion Week launch and co-CEO announcements are fake: Several press releases allegedly sent from Adidas about a Berlin Fashion Week launch, its treatment of workers abroad and other topics related to its business structure were fake, according to the company. – Read More on CNBC
3. Netflix results, retail sales, Davos: “While consensus views a 2023 recession as inevitable, we find ourselves contemplating the old adage: ‘Never bet against the US consumer.'” – Read More on Yahoo Finance
4. Luxury giant LVMH hits 400 billion euro in market value: “They are firing their last cartridge which is the Chinese reopening, going forward things will get tougher: tough comparisons, dollar going down.” – Read More on Reuters
5. Market-leading US companies consolidate power in era of ‘superstar’ firms: The tech antitrust bill, held up by the 2022 midterm elections, is designed to stop Big Tech companies like Apple and Amazon from favoring their own services. It would represent a reversal of a long-held laissez-faire attitude of regulators. – Read More on S&P Global
6. How Retailers Can Ready Their E-Commerce for 2023 With AI: AI can be used by online retailers to meet a range of business-specific objectives, including making first-party and measurement data from across the ad stack actionable in the buying process, and boosting e-commerce conversions. – Read More on Total Retail
1. Prada’s new chief tasked with making generational shift smoother: The group is taking decisive steps towards implementing the complex succession that will eventually lead to Lorenzo Bertelli taking over from his parents, Patrizio Bertelli and Miuccia Prada, who have led the 110-year-old retailer since the late 1970s. – Read More on the FT
2. Private equity persuades Italian luxury suppliers that bigger is better: With its tradition of sophisticated craftsmanship, Italy is home to thousands of small manufacturers that cover 50-55% of the global production of luxury clothing and leather goods, Bain calculates, against 20-25% for the rest of Europe. – Read More on Reuters
3. Alibaba Seeks to Boost Sales Abroad With Buy Now, Pay Later: The payments tie-up comes at a time when Chinese e-commerce companies are looking more abroad to bolster sluggish sales growth at home. – Read More on the WSJ
4. ‘Zillennials’ With Steady Income, Few Bills Are Prime Retail Opportunity: Sandwiched between “millennials” and “Generation Zs,” this micro-demographic born between 1990 and 2000 makes up roughly 30 million consumers of true digital natives who have never known a world without the internet and mobile phone. – Read More on PYMNTS
5. Do Crypto Prices Actually Mean Anything? A regulatory framework that is purpose-built for the technology would not change the underlying incentives for reckless and fraudulent. For the crypto industry to have a positive impact on society, we need to first overhaul how it measures progress — and success. – Read More on HBR
1. How AI technology affects global fashion industry: The AI market is forecasted to generate more than $63B by 2028 and contribute $15 trillion to the global economy. By the end of 2022, 30% of all retail sales were influenced by AI recommendations. – Read More on CGTN
2. South Koreans are the world’s biggest spenders on luxury goods: Morgan Stanley estimated South Korean total spending on personal luxury goods grew 24% in 2022 to $16.8 billion, or about $325 per capita. That’s far more than the $55 and $280 per capita spent by Chinese and American nationals, respectively. – Read More on CNBC
3. Embracing digital commerce may be retailers’ best bet for staying ahead of a fast-moving industry: Though the pandemic-induced online shopping frenzy has cooled as more people venture out again, with all of the different methods out there for digital commerce, driven in large part by livestreaming and social media, it’s time to take a look at where this industry is headed. – Read More on TechCrunch
4. Put the Nepo Babies in Charge of Luxury: Young, rich and surrounded by expensive toys, they exhibit the characteristics that high-end buyers aspire to. As long as they are qualified for the job, keeping the bling kids around has merit. – Read More on Bloomberg
5. Nike CEO touts strength in Gen Z China shopper as Covid disruptions dent regional sales: CEO John Donahoe said Thursday the company is “really focused” on Gen Z consumers in China and that the athletic apparel retailer is continuing to see strong demand in the region, even amid Covid-related disruptions. – Read More on CNBC
1. Web3 could help fashion become more sustainable: The ravenous appetite of fast fashion shoppers isn’t settling anytime soon, and fashion’s supply chain remains quite arduous on the environment. A possible step toward finding the multiple solutions needed to fix this damaging sector is, well, embracing more web3. – Read More on TechCrunch
2. Retail execs are questioning how long they can raise prices: As Wall Street presses retailers to prop up margins, only one-third of those executives interviewed in the report were “very confident” about boosting margins or holding on to the margins they have. – Read More on MarketWatch
3. Lacoste Owner Looks to Snap Up More Brands as Sales Surge: They are looking for brands that transcended borders and had at least €500 million in annual sales. Targets don’t necessarily need to be in fashion, and could be in areas like hospitality or experience, but do need to be upmarket. – Read More on the WSJ
4. The Future of Retail Isn’t Direct-to-Consumer: There’s another benefit to setting up shop in a place where you’re more likely to get local customers: Access to reliable shopper data. – Read More on Inc.
5. How the fashion industry is tackling sustainable packaging: “Consumers, investors, and regulators will grow increasingly hostile to any company, fashion or otherwise, that does not operate in a sufficiently sustainable way. The packaging used by fashion companies can have a big impact on their overall environmental footprint.” – Read More on Packaging Gateway