Daily LInks
1. UBS calls Ralph Lauren a ‘turnaround stock,’ sees fashion brand rallying 36 percent: Changes in Ralph Lauren’s business make the clothing brand a good investment coming out of the pandemic, according to UBS analyst Jay Sole. – Read More on CNBC
2. Congress should pass out-of-state e-commerce sales tax legislation, watchdog says: New laws are needed to standardize sales taxes for e-commerce businesses that operate across state lines, a new report from the federal government’s internal watchdog recommends. – Read More on The Hill
3. Wealthy consumers showing ‘greatest change in behavior,’ retail analyst says: “At the $100,000 and higher level, we are seeing really kind of reduction – real changes across the board, whether it’s related to food, health care, apparel, as you mentioned, home goods, and other big-ticket items.” – Read More on Yahoo
4. Retailers accelerate shift to forest friendly fibers at COP27: Retailers including H&M, Kering and Inditex will purchase over half a million tons of low-carbon alternative fibers for clothing and packaging to help reduce global emissions, they said Monday. – Read More on Reuters
5. Balenciaga Leaves Twitter—Will Other Brands Follow Suit? Balenciaga is the latest in an exodus of major brands and users, including Whoopi Goldberg and Shonda Rhimes. Additionally, a rising number of major corporations and advertisers have paused activity and advertising on the platform since Musk took control of the company. – Read More on Vogue
6. SPAC offerings, deals fall to pre-surge levels: “Bitter economic conditions, political unrest, repeat regulatory hits, the uncertainty of the proposed SEC rules, loudly touted examples of a few bad apples, and continued media negativity have left the SPAC market tattered and bruised.” – Read More on S&P Global
1. Carbon tax on clothes needed to cut ‘relentless’ waste in fashion industry: While there is a growing market for recycled, second-hand and repaired clothing, fast fashion continued to dominate the industry, leading to mountains of discarded clothes piling up on the beaches of Ghana or in Chile’s Atacama desert. – Read More on the Independent
2. Oil Prices, Luxury Stocks, Chinese ADRs Rise After China Eases Zero-Covid Policies: LVMH rose 2% in Paris. Kering gained 1.5%. Hermès International reversed earlier gains to decline 0.2%. Pandemic restrictions have curbed Chinese demand for luxury goods, a key source of pre-coronavirus growth for companies. – Read More on the WSJ
3. Retailers’ biggest holiday wish is to get rid of all that excess inventory: “Inventory is the most important factor. That’s usually not the case — usually it’s just a factor. Inventory is going to take on more meaning than the other metrics.” – Read More on CNBC
4. Bored Apes, Shiba Inu, Geico’s Gecko, Aflac’s Duck: Animal Brands Are Rising. In an age of technoscience rationality, branding is relying ever more heavily on the attractive power of animals. – Read More on Bloomberg
5. How Is Fashion Actually Measuring Up to Its Climate Goals? “In many cases, emissions did drop during Covid, [but] they’re really climbing back up again. It’s completely out of step with maintaining that 1.5C scenario.” – Read More on British Vogue
6. E-Commerce Giant Alibaba Reports Weak Singles Day Sales Growth: Alibaba on Friday didn’t disclose exact sales figures for the first time since it started its signature event, known as Singles Day, saying the results were in line with last year’s turnout. – Read More on the WSJ
1. Fashion’s Leather Misinformation Problem and Why “Vegan” Doesn’t Mean “Sustainable.” In the case of “plant” leathers made from pineapple leaves or coconut husks, the material cannot function properly unless it is mixed with synthetic polymers (plastic) to enhance or provide these properties. – Read More on Forbes
2. LVMH and Gagosian: Why the rumor of a buyout makes sense, even if it isn’t true. The most obvious is that LVMH and Gagosian have the same client base: monied collectors of everything from high-end fashion, luxury goods, champagne, watches and jewelry to… art. – Read More on the Art Newspaper
3. How India Plans to Reinvent E-Commerce: A little over a month ago, the Indian government’s Open Network for Digital Commerce, or ONDC, went live in Bengaluru, the country’s technology hub. – Read More on the WSJ
4. RELATED READ: Analyzing the Potential of India’s Open Network For Digital Commerce. This framework is intended to be a clear departure from the closed network of e-commerce that is existent as of now, where a seller is required to get listed on various different e-commerce platforms, and the buyers have to browse through different e-commerce platforms, in the search of a single item. – Read More on TFL
5. US retailers face slowing online growth, rising price competition in 2023: Online retail sales spiked to more than 16% of total U.S. retail sales in the second quarter of 2020 but have since tapered off to about 14.5% of total retail this year, according to estimates by the U.S. Census Bureau. – Read More on S&P Global
6. Reliance group, Adani bid for India’s debt-ridden Future Retail: Once India’s second-largest retailer, Future was dragged into bankruptcy after it defaulted on loans and its lenders rejected a $3.4 billion sale of its assets to market leader Reliance Industries amid a legal challenge by Amazon. – Read More on Reuters
1. Gucci Slippers, Balenciaga Belts: Inflation Hurts Cheaper Luxury Products. The pullback signals an end to the US luxury industry’s striking growth during the past 2 years. Demand was fueled by the wealthy, and an influx of new shoppers who were able to access more high-end brands thanks to pandemic savings and stimulus checks. – Read More on Bloomberg
2. Michael Kors-owner Capri cuts holiday forecasts as China recovery stalls: Luxury goods companies have managed to pass on higher costs to affluent shoppers, but China remains a sore spot as sporadic business and COVID restrictions prevent consumers from returning to high-fashion stores. – Read More on Reuters
3. Fashion-forward in the metaverse: “As more and more platforms adopt blockchain technology, it will allow for token-gated experiences, where you can bring your digital persona inside a virtual space. So as more companies adopt it, people’s wallets can become containers for them to carry around all of their assets.” – Read More on McKinsey
4. The RealReal Overhauls Consignment Structure in Quest for Profitability: In a letter to investors, the company said the update to its take-rates will “incentivize the consignment of higher-value items and limit the consignment of lower-value items, which are unprofitable.” – Read More on PYMNTS
5. Roblox Corp shares fall on wider-than-expected loss: Growth has been slowing in the videogame sector this year as more people step outdoors and reserve spending for essential items in the face of the highest inflation in decades. – Read More on Reuters
1. When Does Collaboration Become Collusion? An EU inquiry is raising questions about how a notoriously cutthroat industry can make itself more efficient and sustainable without violating antitrust regulations aimed at preventing collusion. – Read More on the New York Times
2. RELATED READ: Fashion Industry Open Letter at the Center of EU Anti-Competition Probe, Per Report. Aimed at helping the enable the industry increase “sustainability throughout the supply chain and sales calendar,” the fashion industry-wide pact and its signatories are almost certainly of interest for the EU’s anti-competition regulator due to the explicit call in the letter to refrain from discounting. – Read More on TFL
3. Ferragamo’s nine-month sales rise 13% driven by Europe: Revenues reached 921 million euros ($929 million) in the January-September period, Ferragamo said on Tuesday, with the success of the new collections for S/S 2023 “adding further confidence in the acceleration of investment in the second half of the year.” – Read More on Yahoo
4. Advertisers react to Twitter’s new ownership: L’Oreal, for one, said it had not suspended ad spending on Twitter, denying a Financial Times report from Nov. 2 that said it had. – Read More on Reuters
5. The Beauty Industry Is Defying Inflation: “This is the first time we are in a recessionist backdrop that comes after two years of restrictions,” Coty Chief Executive Sue Nabi said. “Usually recessions happen after overconsumption.” – Read More on the WSJ
1. Fast-Fashion Upstarts Are Using Shein’s Own Strategies Against It: The breakneck supply chain pioneered by Shein is allowing a new swathe of brands to make the most of operating in the colossal retailer’s slipstream. – Read More on Bloomberg
2. Retailers have a new holiday headache — people are spending their money on travel: The holiday season will test consumers’ spending priorities, especially amid inflation, as retailers try to lure back customers who bought a lot of stuff during the Covid pandemic. – Read More on CNBC
3. How American Eagle Reinvented Its Fulfillment Strategy: Should the delivery companies it acquired still serve other customers, including if they were American Eagle competitors? Ultimately, the company decided that it should, opting in effect to share its supply chain with other retailers in a bid to compete with Amazon. – Read More on HBR
4. In case you missed this: With plans to open 14 new stores, Forever 21 plots a comeback strategy. Following its bankruptcy filing in 2019, Forever 21 is rebuilding its presence throughout the U.S., while turning to collaborations, influencers and a better-curated assortment. – Read More on Modern Retail
5. The $300 Million Sneaker King Comes Undone: Prosecutors allege Michael Malekzadeh collected preorder funds from customers while knowing he couldn’t fill all the orders. Since at least 2020, he spent more than $10 million of the company’s preorder proceeds on luxury goods. – Read More on the WSJ
1. US Supreme Court to consider recommender algorithms in key internet shield case: In Gonzalez v. Google LLC, the court will determine if Google LLC’s YouTube LLC is liable for content the platform algorithmically recommends to users. – Read More on S&P Global
2. Global luxury groups confident in Chinese market: Luxury sales in China are increasingly benefitted by duty-free shopping in Hainan amid the country’s efforts to turn Hainan into an international tourism island, constructing the Hainan Free Trade Port and pursuing high-level opening-up. – Read More on Global Times
3. Customers clamor for secondhand luxury goods: With the increased popularity of e-shopping, online luxury trading platforms have emerged. The number of such platforms has risen rapidly, and they offer high growth potential and commercial value. – Read More on China Daily
4. France’s Auction of Rolexes, Birkin Bag Shows Luxury Appetite: The second-hand items were among hundreds of goods on auction that had been seized by French customs officials as contraband. In total, the sale brought in €1.36 million, compared with the €1 million the government had hoped to raise. – Read More on Bloomberg
5. Fashion Brands Accused of Sourcing Polyester Made from Russian Oil: A new report has accused several American and European fashion chains, including Esprit, New Look and Next, of inadvertently funding Russia’s war on Ukraine for using polyester derived from Russian oil. – Read More on Forbes
6. Prada Captures the Zeitgeist for All Things ‘90s: Prada has been investing heavily — more than €200 million ($194.9 million) last year — in its digital capabilities, store network and supply chain. – Read More on the Washington Post
1. EBay’s focus on luxury to refurbished goods drives results beat: Ebay has expanded the categories on its platform to offer pre-owned sneakers and jewelry as it looks to tap steady demand from diehard collectors of high-value souvenirs such as electronics, trading cards and watches. – Read More on Reuters
2. China vs U.S.: Where should luxury fashion brands be focusing right now? China still has the potential to be a very large market and Chinese consumers are coming back to luxury goods stores – in Q3, spending was almost back to where it was one year before, despite the lockdowns over the summer. – Read More on SCMP
3. Hugo Boss Raises Outlook as Revamp Brings in Younger Buyers: New collections presented at the Milan Fashion Week propelled the brand on social media and generated strong demand, buoying Q3 results. – Read More on Bloomberg
4. US corporate bankruptcy filings rise in October: There were 37 bankruptcy filings in October, up from 31 in September. As of Oct. 31, 312 companies had filed for bankruptcy in 2022, fewer than any other comparable period going back to at least 2010. – Read More on S&P Global
5. StockX lays off more employees for second time since June: The Detroit-based reselling e-commerce platform for sneakers, handbags and other luxury goods has again turned to layoffs as executives continue to restructure the company. – Read More on Crain’s
6. Minecraft’s ‘first luxury goods collection’ features real-world $3,000 Burberry coat: Burberry and the contemporary gaming pioneer join forces on a collaboration that features a customized in-game landscape, in-game skins, and real-world wares. – Read More on Minecraft
1. Gucci Owner Kering in Advanced Talks to Acquire Tom Ford: Kering is the new front-runner in a deal for Tom Ford. The French conglomerate, which acquired Gucci back in 2001 when Mr. Ford was still at the helm, is facing off against Estée Lauder Cos, but “appears to be the front-runner now and a deal could be reached soon.” – Read More on the WSJ
2. It’s time to rethink our approach to luxury fashion: “Posh frugality is a style often aped by fashion, but it’s usually about the look rather than the sensibility. Rather than buying pieces that look pre-worn, maybe we should wear out what we own ourselves.” – Read More on the FT
3. Russian retail sales fall deeper, jobless rate rises in Sept: Russian retail sales plunged 9.8% in September in year-on-year terms after an 8.8% fall in the previous month and the jobless rate increased to 3.9% of the workforce from August’s record low of 3.8%. – Read More on Yahoo
4. What would Shein stores do to the U.S. retail apparel market? Shein’s global sales are forecast to reach $24 billion this year, up from $16 billion in 2021, moving the Singapore-based company past H&M and closer to Zara as the top-selling fast-fashion retailer. – Read More on RetailWire
5. Chinese Fast-Fashion Giant Shein Hires Former Bear Stearns Dealmaker Ahead Of IPO: Donald Tang has worked as advisor for Shein’s CEO and cofounder Chris Xu for over a year, first introduced to the company by Sequoia Capital China founding managing partner Neil Shen, a major Shein investor. – Read More on Forbes
6. Fast Fashion Waste Is Choking Developing Countries With Mountains of Trash: Less than 1% of used clothing gets recycled into new garments, overwhelming countries like Ghana with discards. – Read More on Bloomberg
1. A resale revolution: Affluent shoppers embrace secondhand shopping. Over the next five years, the resale market is projected to grow by 80% and hit $289 billion. – Read More on CNBC
2. Apple Sues Trademark Office to Register ‘Smart Keyboard’ Name: In its complaint, Apple claims that the name has developed secondary meaning, and that the PTO has granted trademark registrations for a family of Apple products under the “Smart” brand name, including “Smart Cover,” “Smart Case,” and “Smart Connector.” – Read More on Bloomberg
3. Hong Kong Sept retail sales edge up as travel rules ease: Sales of clothing, footwear and accessories in Sept. fell 7.2% on year after an 8.8% drop in Aug. Online retail sales in Sept. jumped 27.5% year-on-year in value terms, compared with a revised 21.6% growth in Aug. – Read More on Reuters
4. Chinese tech giants’ push into U.S., Europe’s markets sets up potential clash with Amazon: Pinduoduo and TikTok owner ByteDance have launched international cross-border e-commerce websites in the last few months, aiming to take a crack at selling Chinese products to foreign buyers. – Read More on CNBC
5. “The biggest risk” for sellers this holiday season: Most retail companies will issue conservative guidance when they report third-quarter earnings over the next few weeks. That could lead to fresh selling pressure in the space. – Read More on CNBC