Daily LInks
1. Tech is driving luxury brand engagement: Investments in digital mediums ranged from revamped websites/apps, to the use of VR, NFTs, and cryptocurrencies, to reimagined runway shows like Balenciaga’s Afterworld game in which characters were clad in the brand’s designs. – Read More on Insider Intelligence
2. Retail Real Estate Is Enjoying Its Biggest Revival in Years: More stores opened than closed in the U.S. last year for the first time since 1995, according to an analysis by Morgan Stanley, and some analysts say they expect that trend to continue this year even with recession fears rising. – Read More on the WSJ
3. Consumer discretionary remains highest risk sector in Q3: Consumer discretionary, which comprises industries with strong sensitivity to economic cycles, scored the highest on two out of three risk factors — the proportion of lowered corporate guidance and the rise in short interest. – Read More on S&P Global
4. The case for and against custom apparel: Whether it is through 3D scans or measurement-based customizations, brands are coming up with a variety of unique methods to size customers from the comfort of their own homes and sell them a made-to-order product. – Read More on Modern Retail
5. H&M, Zara’s Owner Stick With ‘Made in Myanmar’ After Coup, but Some Brands Exit: European retailer Primark, which bought garments such as raincoats and parkas from 25 factories in Myanmar, said last month it would exit, citing difficulties in ensuring the safety and rights of workers who make the clothing. – Read More on the WSJ
1. Coronavirus Pandemic Continues to Challenge the Luxury Goods Industry: Lockdown measures in China largely affect luxury goods companies purchasing high-tech goods, textiles and leather goods, cars and timepieces from Chinese suppliers. – Read More on EuroMonitor
2. Italian antitrust fine for Apple and Amazon cancelled on appeal: An antitrust win for Amazon and Apple in Italy, where an appeals court has cancelled a multimillion-dollar penalty the pair was hit with last year for alleged collusion following an investigation into the reselling of Apple and (Apple-owned) Beats kit on Amazon’s Italian e-commerce marketplace. – Read More on Yahoo
3. Seven Lessons on Dynamic Pricing (Courtesy of Bruce Springsteen): This controversy illustrates seven lessons that managers should keep in mind when adjusting prices, including the need for clear communications, longtime customers’ expectation that they deserve a discount, and the fact that high prices will raise expectations about quality and service. – Read More on HBR
4. What a circular economy means for sustainable retail: “You can design for an infrastructure that is in the works or developing. But the reality is, in order to have a financially viable circular solution, someone’s got to be at the back door of recycling and processing facilities to buy that material for reuse, for its next life, whatever that may be, and they need to be buying it consistently.” – Read More on Fortune
5. Nearshoring: After decades spent “offshoring” production the pandemic, war and climate crises have made us painfully aware of the vulnerability and impacts of our globalized supply chain. – Read More on Suston Magazine
1. Retail sector facing ‘full-on inventory crisis,’ analyst says: “We need a totally different planning– buying, planning, and allocation model in this sector going forward. The working capital disruption that this sector has faced needs evolution.” – Read More on Yahoo
2. Retailers Still Have a Lot of Extra Stuff That Shoppers Don’t Want: Americans have largely shifted their spending away from things like apparel and footwear — in favor of travel and entertainment — leaving retailers with far more merchandise than they can sell at full price. – Read More on Bloomberg
3. For Some Luxury Brands, Selling Up May Be as Important as Selling: Powerful rivals like LVMH are heavily outspending it in tech. The biggest brand owners also have more leverage to get better deals with ad agencies and landlords—an important group now that luxury companies have more of their own shops. – Read More on the WSJ
4. The New Laws Trying to Take the Anxiety Out of Shopping: If passed, many of the bills could change what you — the consumer — see on your clothing labels, or even the design of what you find on store shelves. The movement also reflects a shift away from the idea that the burden should rest primarily on shoppers to buy better and buy less. – Read More on the New York Times
5. Winners take all in global apparel, fashion, and luxury: While the luxury segment has been the longest-standing winner within the industry, a recent surge in sportswear has gained momentum as a preferred choice among premium customers. – Read More on McKinsey
1. India’s Reliance launches first in-house fashion store: The new store chain called Azorte, the first of which was launched in Bengaluru, will compete with the likes of Mango and Industria de Diseno Textil SA (Inditex)-owned Zara, and cater to millennials and Gen Z. – Read More on Reuters
2. Cartier plans U.S. store expansion on strong demand for luxury: Cartier, the French maker of upscale watches and jewelry, plans to open as many as 10 stores in the U.S. in the coming years—another sign that European luxury brands are betting American demand will remain robust. – Read More on Crain’s
3. Cotton Prices Drop Amid Economic Worries, Strong Dollar Pressure: Cotton prices had been trending higher during the pandemic, surging past $1 a pound a year ago after restrictions on cotton produced in China’s Xinjiang region out of concern that forced labor is used to harvest it. – Read More on the WSJ
4. Next Warning, H&M Cuts Add to European Retail Woe as Prices Soar: Next Plc and Hennes & Mauritz AB reports added to gloom from European retailers as inflation simultaneously makes clothing more expensive and reduces consumer purchasing power. – Read More on Bloomberg
5. Did Everyone Start a Fashion Brand During the Pandemic? A sizable number of buzzy small brands were launched during the pandemic—and, amazingly, have only grown in popularity and validity since. – Read More on Vogue
1. Chinese snap up used Rolexes, Birkins to satisfy luxury cravings amid slowdown: “More and more people are now aware they can sell luxury goods for some money and the buyer side is noticing that they can get a great deal.” – Read More on Reuters
2. Snap Luxury Boss: Augmented Reality Is the Future of Fashion. “Every day we have 250 million people engaging with augmented reality on our platform. Not just to try dresses on, but also jewelry and makeup. This is how we see engaging with the real world in the future.” – Read More on PYMNTS
3. The British Pound Is Sinking—and Its Luxury Market Is Rocking as a Result: British luxury firms are seeing surges of business from dollar-touting buyers in response. – Read More on Robb Report
4. Christie’s launches ‘Department X’ as collectible sneakers, streetwear boom: The auction house on Monday announced its Department X, giving Air Jordans and Supreme skate decks their own category, alongside more traditional art. The move is the latest sign that a wave of younger collectors are redefining the collectibles world. – Read More on CNBC
5. Boohoo Issues Profit Warning as Shoppers Cut Back on Clothes: The fast fashion retailer has been hit by higher rate of returns, as UK first-half sales declined for the first time in its history. – Read More on Reuters
6. Farfetch CEO Sees Luxury Recession Resilience and China Return: Luxury-goods sales will prove resilient in the case of a global recession and demand from China will return by next year, said the head of online luxury retailing platform Farfetch Ltd. – Read More on Bloomberg
1. Demand for Luxury Products Exposes Widening Inequality in India: Household spending trends ahead of India’s main festive season are flashing warning signs of a widening chasm in demand recovery as inflation hovers around 7% and unemployment keeps on rising. – Read More on Bloomberg
2. Luxury Retailers Double Down on US Expansion, Including Moves into Smaller Markets: Ralph Lauren plans to open 250 stores through 2025, citing opportunities in and around cities like San Francisco, Seattle, and Denver. Chanel has opened 15 new locations in the U.S. since the onset of the pandemic. – Read More on Costar
3. Asia’s largest metaverse platform Zepeto ramps up global expansion: Asia’s largest metaverse platform, Zepeto, is stepping up its global expansion as it looks to compete against the Big Tech groups that are betting billions on creating avatar-filled virtual worlds. – Read More on the FT
4. Pound plunge means even higher prices for UK consumers: British consumers are likely to face a further hike in prices of clothing and homewares following the pound’s plunge against the dollar, consultants McKinsey said on Tuesday. – Read More on Reuters
5. Brands Review Data Privacy Policies After $1.2 Million Sephora Settlement: More co. are taking notice of California’s data privacy laws after the state said last month that Sephora had agreed to pay $1.2 million in penalties for alleged violations related to its targeted advertising practices. – Read More on the WSJ
1. Walmart enters the metaverse with Roblox experiences aimed at younger shoppers: The retail giant’s first foray into the virtual world will feature a blimp that drops toys, a music festival with hot artists, a bunch of different games, and a store of virtual merchandise. – Read More on CNBC
2. The top luxury categories for US luxury buyers: The top product category is footwear, followed by handbags and leather goods, cosmetics and beauty products, and fragrance. Less than 1/3 of these shoppers bought accessories such as eyewear, jewelry, and watches in the past year. – Read More on Insider Intelligence
3. How brands and retailers are actually using AR and VR. In 2022, more marketers are using augmented reality for brand engagement and sales than are still dabbling in virtual reality. – Read More on Modern Retail
4. How live shopping platforms are shaping the future of e-commerce: Even with all the convenience and access it boasts, there is one obvious absence in the online shopping experience … the curation and guidance offered during a traditional shopping trip. – Read More on Fortune
5. UK high street warned not to expect return of pre-Covid Christmas: The number of people visiting UK shops this Christmas could remain almost a fifth below pre-pandemic levels as shoppers struggle with the cost of living crisis, according to forecasts. – Read More on the Guardian
1. Gucci, Burberry Join Booming Secondhand Luxury Trade: Preowned luxury is growing in popularity, especially among young consumers, partly because in many cases it offers a chance to buy products that cost less than firsthand equivalents. – Read More on the WSJ
2. The Wrath of Kanye Threatens Sneaker Maker Adidas: Adidas AG faces a problem. Its decade-long deal with Kanye West and his Yeezy fashion label is being unwound by the musician, who is also ditching his partnership with Gap.” – Read More on Bloomberg
3. Designing an Inclusive Metaverse: Companies planning to participate in the metaverse have an opportunity to remedy some of the mistakes of Web 2.0 and a responsibility to shape an inclusive space where everyone feels represented and that they belong. – Read More on HBR
4. Fiat Chrysler gets new chance in Jeep trademark case: Fiat Chrysler received a second chance to permanently block U.S. sales of redesigned Roxor off-road vehicles made by Indian carmaker Mahindra & Mahindra Ltd, which is fighting claims that it copied the Jeep design. – Read More on Reuters
5. Could Telfar’s policy of accessibility spell doom for its popular bags? There are plenty of other Telfar products that are still exclusive. The Rainbow drop only offers the shopping bag in all sizes and colors, but no other items or bags will be available. – Read More on the Guardian
6. Beating Inflation Is Easy Online—Except for Sellers: Digital retailers initially used low prices to lure shoppers from bricks-and-mortar competitors with great success. Now there is intense competition among online players themselves to offer bargains. – Read More on the WSJ
1. Chief Metaverse Officers Are Getting Million-Dollar Paydays. Do you need one? Disney, P&G, LVMH and other big names have invested in chief metaverse officers to plot a course through the next chapter of the internet. – Read More on Bloomberg
2. Walmart’s Social Commerce Shift Lowers Walls Between Physical, Digital Retail: The shift to social is deeply rooted in connectivity and experiences that engage consumers, inspire them to be a part of something bigger and ultimately get them to buy — either in the moment online, or later on in-store after a digital inspiration. – Read More on PYMNTS
3. The top three retail and e-commerce trends set to shape 2023: Shoppers expect e-retailers to provide a sophisticated, personalized shopping experience. In contrast, personalization is not as big a deal offline. – Read More on the Drum
4. Fashion Workers Act would mandate labor protections for models, fashion industry: If signed into law, the legislation would mandate companies accept legal responsibility to act in the best interests of their hired talent, provide proper notifications about contract renewals, copies of agreements and would require agencies cap commission fees to 20% of a model’s pay. – Read More on Spectrum News
5. E-commerce is booming in B2B. But some brands in that space remain reticent to jump in fully: Before the Covid-19 pandemic, Forrester estimated the US B2B e-commerce market could reach $1.1tn, accounting for more than 12% of B2B sales by 2020. – Read More on the Drum
1. Luxury Brands’ Record Year Was More Luck Than Skill: Household wealth in China and North America swelled by 15.1% and 15.5% respectively, according to Credit Suisse. Of the 5.2 million new millionaires created around the world last year, almost half were in the U.S. and a fifth were in China. – Read More on the WSJ
2. Retail to see more bankruptcies in H2: “If consumers pull back before the holidays and really cut their spending, retailers that have expanded or brought in too much inventory are really going to feel it.” – Read More on Axios
3. India’s Reliance Retail in talks for rights of beauty retailer Sephora: Reliance Retail, run by Indian billionaire Mukesh Ambani’s conglomerate Reliance Industries Ltd is in advanced talks to get the rights for beauty retailer Sephora in India. – Read More on Reuters
4. The ‘good news is they will be regulated,’ Harvard fellow says of watchdog crackdown on BNPL lenders: The CFPB identified “several areas of risk of consumer harm” and said the industry will be subject to the same oversight as credit card companies. – Read More on CNBC
5. How TikTok became an e-commerce juggernaut in China: Since it requires livestream e-commerce transactions to be completed on the platform, this all forms a “closed loop,” where the user never strays from the app. It’s the ideal flywheel, and the envy of platform companies everywhere. – Read More on Rest of World