Daily Links

1. How China’s Shein became more valuable than H&M and Zara combined: “What Shein has done is, it has established a new norm. It is very fast, and the products are updated much more frequently and at a higher volume than any other fast fashion brand.” – Read More on CNBC

2. Zara owner Inditex set to benefit from higher prices: The Russia-Ukraine conflict and COVID-19 lockdowns in China have added to pressures. But Inditex, best-known for the fast-to-market Zara brand which provides 71% of its sales, has staged a faster recovery than most. – Read More on Reuters

3. Why Stores Are Vital to E-Commerce Resalers: An increase in sellers brings traffic and potential customers to a store, an advantage for partner retailers and brands that run their own resale programs. – Read More on Forbes

4. Drag Queens Traverse Trademark Law: Intellectual property law hasn’t always kept up, leaving some performers embroiled in copyright and trademark battles over their acts and stage names. – Read More on Bloomberg

5. Johnny Depp Fans Buy Dior Cologne to Show Support: Dior’s decision to stick by Mr. Depp may pay off. According to online sales rankings, its Sauvage fragrance is currently the best-selling men’s cologne on both Sephora.com and Ulta.com—two of the internet’s largest beauty retailers. – Read More on the WSJ

6. Walmart is using its thousands of stores to battle Amazon for e-commerce market share: Walmart is using its stores as launch pads for delivery drones and departure locations for direct-to-fridge drop-offs, and it will soon start packing and shipping third-party sellers’ goods from stores. – Read More on CNBC

1. Prada becomes the latest fashion brand to launch NFTs: Prada, the Italian luxury fashion designer, will debut its first solo NFTs on Thursday, which will be available for 24 hours with the purchase of a physical item. – Read More on the Block

2. Capri raises profit forecast as shoppers splurge on Versace, Michael Kors: Sales at Michael Kors, Capri’s biggest brand, rose 21.8% to $1.02 billion in the fourth quarter, while Jimmy Choo’s revenue rose 25.8% and revenue at Versace jumped 34%. – Read More on Reuters

3. Russian Cash and Trade Drawn to Dubai by Low Taxes, No Sanctions: Dubai is fast becoming the international hub of choice for Russian companies and wealthy individuals seeking to run their businesses and protect their money while avoiding sanctions over the invasion of Ukraine. – Read More on the WSJ

4. Levi Strauss boosts sales outlook for next 5 years, banking on e-commerce strength: “As we continue to scale [e-commerce], that business becomes a lot more profitable,” CEO Chip Bergh said. “Before the pandemic, our e-commerce business was a money-loser.” – Read More on CNBC

5. India lines up banks for e-commerce effort to take on Amazon, Walmart: Indian e-commerce was worth more than $55 billion in gross merchandise value in 2021 and will grow to $350 billion by the end of this decade, according to government estimates. – Read More on Reuters

1. Victoria’s Secret pays sacked Thai workers $8.3m in ‘wage theft’ settlement: The agreement is the largest-ever wage theft settlement at an individual garment factory, the international workers rights group Solidarity Centre said. – Read More on the Guardian

2. China’s $100 billion startup Shein is undercutting the fast fashion industry with even cheaper clothes: Shein has benefited from Beijing scrapping export taxes for companies that ship direct to consumers, while also capitalizing on a U.S. tariff exemption on postal packages valued at $800 or less. – Read More on Fortune

3. Puig buys contemporary fragrance label Byredo: Spanish fashion and perfume company Puig said on Tuesday it has purchased a majority stake in luxury label Byredo, the latest in a string of acquisitions of niche fragrance and cosmetics labels by larger groups. – Read More on Reuters

4. Glam makeup and dressing up are back – and that’s benefiting retailers like Macy’s and Ulta: The latest round of financial results offer a more nuanced look at the economy after Walmart and Target alarmed investors with downbeat forecasts and warnings that some shoppers are becoming more price sensitive. – Read More on CNBC

5. Why Nordstrom Steamed Ahead as Old Navy Sank: It isn’t entirely surprising that higher earning consumers—who were more likely to have worked remotely during the pandemic—are now shopping for clothes that go along with their travel, socializing and back-to-office plans. – Read More on the WSJ

1. Valentino chairman says rich people’s fear of death after the COVID pandemic will spur them on to keep fueling luxury sales: “After the pandemic, rich people are more aware they are going to die and want to spend the money on luxury and more exclusive things.” – Read More on Fortune

2. Will Buy Now, Pay Later Dominate Future Retail Sales? As inflation causes retail prices to rise on most products, consumers are looking for an easy, flexible way to afford big ticket items they need or want to purchase. – Read More on the Street

3. U.S. retailers’ ballooning inventories set stage for deep discounts: At Gap Inc., a 34% spike in inventories was caused by poor sales at Old Navy and longer transit times for goods, CFO Katrina O’Connell said Thursday. – Read More on Reuters

4. Cybercriminals target metaverse investors with phishing scams: While metaverse platforms are increasing their security measures and educating consumers about fraud prevention, they say they’re not responsible for refunding money to phishing scam victims. – Read More on CNBC

5. Can Adidas Be Luxury? Balenciaga and Gucci Say Yes: According to an Adidas rep, these premium collaborations are part of a new brand strategy the company announced last year. Brian Grevy, Adidas executive board member responsible for global brands, said in March 2021 that luxury designs “inspired by Adidas and worn for status” helped create brand heat. – Read More on the WSJ

1. What To Do When the Devil Wears [Your Brand]: Managers who find themselves in a similar situation must ask the following three questions: What are the risks from such an incident? What can we do to counteract the criticism? What (if any) long-term consequences have brands suffered because of similar circumstances? – Read More on HBR

2. Nike not renewing franchise agreements in Russia: The U.S. sportswear maker has not renewed agreements with its largest franchisee in Russia, the Vedomosti daily reported, marking the latest exit by a major U.S. brand since Russian forces entered Ukraine in February. – Read More on Reuters

3. Lululemon is well-positioned to handle recession, per Morgan Stanley: The athleisure co. is supported by compelling secular tailwinds (e.g., performance/athleisure focus), a market share gain opportunity & credible future revenue drivers (e.g., international expansion, digital growth, & product innovation/expansion into new categories).” – Read More on Seeking Alpha

4. Should Luxury Brands Actually Reduce Their Dependence on China? The greater focus on improving the retail experience and enhancing digitalization efforts over the past two years has been a net positive for luxury brands. – Read More on Jing

5. Valentino Chairman on the Future of Luxury Business: While “more expensive products are more attractive than anything else” right now, lockdowns in China are proving to be a “big issue for the luxury business because we are not very clear about what the rest of the year is going to look like.” – See More on Bloomberg