Daily LInks
1. Rise of fast-fashion Shein, Temu roils global air cargo industry. The rapid rise of fast-fashion e-commerce retailers such as Shein and Temu is upending the global air cargo industry, as they increasingly vie for limited air-cargo space to woo consumers with rapid transit times, more than ten industry sources said. – Read More on Reuters
2. The music labels are still suing the internet companies. That’s a warning for the AI industry. The AI boom has been accompanied by AI lawsuits filed by content owners, which has led people to think about the parallels between the current moment and the Napster era, when digital disruption ran smack into the court system. – Read More on BI
3. California lawmakers say they expect to set the pace for AI rules. California often takes the lead with legislation to regulate tech. California lawmakers say they expect to set the pace once again on artificial intelligence. – Hear More on NPR
4. ICYMI: Digital reinvention fuels a fast-growing luxury sector. Competition to win customers may intensify if economic growth slows in 2024 (as we expect it will) and aspirational luxury consumers reduce their spending. The likely outcome: The strongest luxury brands will get even stronger. – Read More on JP Morgan
5. Customers sue Stanley, say the company failed to disclose presence of lead in tumblers. The proposed class action lawsuits, filed in Washington state come weeks after Stanley confirmed that the “sealing material” they use to secure the vacuum insulation at the base of their products contains “some lead.” – Read More on USA Today
6. RELATED READ: Stanley Cup-Maker Named in False Advertising, Fraud Lawsuit Over Lead. The plaintiffs contend that PMI “took care not to reveal its practice of using lead while continuing to market its products as safe, pure, and ideal for busy professionals to use at home and elsewhere.” – Read More on TFL
1. The British ‘King of Trainers’ Takes on the Land of Sneakers. With a fashion-first approach that the company says sets it apart from its rivals, JD Sports is doubling down on American sports retail, opening hundreds of U.S. stores even as incumbents contend with disengaged consumers. – Read More on the WSJ
2. $387 Billion Luxury Market Remains Turbulent, but There Are Bright Spots. “Advanced digital marketing, rooted in personalization, optimization and targeted outreach, stand as critical tools for connection with potential luxury buyers in meaningful ways.” – Read More on Forbes
3. Fast Fashion Is Thwarting the Resale Industry’s Dream of Circularity. Branded resale grew by 450% between 2021 and 2023. Still, the complex logistics of online resale presents both sustainability and profitability challenges. – Read More on AdWeek
4. How IP laws can be reimagined to stimulate innovation. There needs to be a paradigm shift in how intellectual property ownership is viewed and shared, to achieve this. At the moment, what IP laws do best is help large companies fence off competition. Good for the bottom line, but not for evening the playing field and innovation. – Read More on WEForum
5. Retailers demand more action from EU to resolve Red Sea crisis. European retail industry body Eurocommerce called on European Union institutions and member states to resolve the Red Sea crisis that has disrupted trade, saying in a letter to Belgium’s foreign minister that it has already had “massive impacts” on businesses. – Read More on Reuters
1. Fashion rentals find favor but platforms struggle to thrive. “That’s why we see so many different [players] popping up in the market. There is clearly some money to be made, but it has to be pitched just right.” – Read More on the FT
2. Some video game actors are letting AI clone their voices. They just don’t want it to replace them. As video game worlds get more expansive, some game studios are experimenting with AI tools to give voice to a potentially unlimited number of characters and conversations. It also saves time and money. – Read More on AP News
3. AI Briefing: How Priceline and other e-commerce companies are approaching generative AI. 50% of businesses on Amazon have used AI to manage e-commerce channels. Around 34% are using AI to help with writing and optimizing listings, 14% use it for creating marketing and social content and 7% are using it for helping with keyword and SEO research. – Read More on Digiday
4. Are Fashion Brands Finally Catering to Women Over 50? “It’s not a coincidence that as women in their 50s and 60s step into more fashion-CEO and executive-adviser roles, the companies they run want to acknowledge their power.” – Read More on the WSJ
5. RELATED READ: By Focusing Almost Exclusively on Millennials and Gen Z, Fashion is Ignoring a $15 Billion Market. By 2040, ILC projects that individuals aged 50 and over will be the fashion sector’s “key consumer base.” – Read More on TFL
6. The Future of Marketing Is Intergenerational. Demographics suggest that Americans over the age of 60 will soon become a larger consumer group in terms of income than 20-to-34-year-olds, yet companies still position their brands as if the bulk of the market is people under the age of 40. – Read More on HBR
1. Digitalization: The Key to Reducing Material Waste in the Fashion Industry. For large volumes, the slightest additional percentage of fabric used represents much less waste. It is therefore essential to adopt the right technologies, with software and equipment that enable material savings to be made throughout the workflow. – Read More on Supply Chain Brain
2. How luxury lost its meaning. “Anyone can declare themselves a luxury product. But people know true luxury when they experience it. It’s personalized and exclusive, with scrupulous attention to detail.” – Read More on Telegraph
3. RELATED READING: What Are Luxury Brands Really Selling? While there are points to be made in at least some cases about the level of quality, and attention to detail and craftsmanship, and the consumer experience elements associated with high fashion and luxury goods, a non-negligible amount of this is storytelling. – Read More on TFL
4. Amazon joins companies arguing US labor board is unconstitutional. Amazon has joined rocket maker SpaceX and grocery chain Trader Joe’s in claiming that a U.S. labor agency’s in-house enforcement proceedings violate the Constitution, as the retail giant faces scores of cases claiming it interfered with workers’ rights to organize. – Read More on Reuters
5. True Religion explores a sale as maximalist, Y2K-era styles make a comeback. The company, known for its stitching and horseshoe logo, has made inroads with an entirely new customer base, and a survey conducted by the company says it has high customer loyalty. – Read More on CNBC
6. George Santos sues late-night host Jimmy Kimmel for tricking him into making videos to ridicule him. Santos, who was expelled from the House of Representatives last year after being charged with multiple counts of fraud and stealing from donors, is suing over alleged copyright infringement, fraudulent inducement, breach of contract and unjust enrichment. – Read More on AP News
1. Goldman Strategists See Stronger US Consumers Boosting Luxury Stocks. After slumping last year on concerns around subdued demand in China — a big market for the likes of LVMH and Burberry Group Plc — luxury stocks have rebounded in the past few weeks on signs of resilient earnings. – Read More on Yahoo
2. US court weighs Bulleit brand’s fame in whiskey-bottle trademark fight. The 3-judge panel expressed some skepticism of Deutsch’s argument that a higher degree of fame was required to justify a lower court’s 2022 decision that Deutsch’s Redemption whiskey bottles must be redesigned because they diluted Diageo’s Bulleit trademark rights. – Read More on Reuters
3. How ‘Buy Now, Pay Later’ Apps Are Changing as They Mature. Originally aimed at Gen Zers and Millennials, retirees and others on fixed incomes have become some of the fastest growing users of the apps, while high interest rates have killed off some entrants into the field. – Read More on Bloomberg
4. RELATED READ: What Brands Need to Know Now That BNPL is Under the Regulatory Microscope. This rapid rise in popularity of BNPL products is yet another example of innovation outpacing regulation in the retail world. Today, aspects of the BNPL sector remain unregulated and exempt from the consumer credit regime. – Read More on TFL
5. Popular online retailer Temu facing a class-action lawsuit in Illinois over data privacy concerns. The lawsuit alleges Temu violates its customer’s privacy rights by collecting private data and using “deceptive” and “unscrupulous” practices to access that data. – Read More on CBS
6. OpenAI GPT trademark application for registartion denied. “Registration is refused because the applied-for mark merely describes a feature, function, or characteristic of applicant’s goods and services.” – Read More on Boing Boing
1. Korea takes steps to curb rapid expansion of Chinese e-commerce firms. The government is set to take action against Chinese e-commerce platform operators such as AliExpress, Temu and Shein, which have been rapidly expanding their shares of the e-commerce market here by offering ultra-low prices. – Read More on KoreaTimes
2. Brands like Jolie and Lululemon are fighting off copycats through dupe swapping. To combat dupes, brands like Jolie and Lululemon have been initiating dupe swaps, where people could get a product from a premium brand for free if they turn in product from a competing brand. – Read More on Modern Retail
3. The Surprising Result of the Supreme Court Case That Allowed Slurs in Brands. Overall, this more open trademark landscape seems unexpectedly promising for the LGBTQ+ community. Nonetheless, we should remain diligent for changes in trademark uses. – Read More on Slate
4. RETRO READ: The Supreme Court Sides with Fuct, Says Bar Against “Scandalous” Trademarks is Invalid. SCOTUS pointed to the fact that the Lanham Act’s bar “on its face, distinguishes between two opposed sets of ideas: those aligned with conventional moral standards and those hostile to them; those inducing societal nods of approval and those provoking offense and condemnation.” – Read More on TFL
5. Apple to settle trade secrets lawsuit against chip startup Rivos. Apple plans to settle a lawsuit that accused tech startup Rivos of stealing its trade secrets related to computer-chip technology, according to a joint court filing on Friday in California federal court. – Read More on Reuters
6. Two Factors that Determine When ESG Creates Shareholder Value. The study found that companies with high-ability CEOs and strong ESG investments outperform others, and firms with fewer supplier ESG incidents yield higher returns. – Read More on HBR
1. The Fashion Workers Act could mean labor protection for models. State legislators amended the bill last month to require fashion companies to obtain written consent to use a model’s digital replica, as more designers and brands use artificial intelligence to supplement traditional photography. – Read More on Marketplace
2. RELATED READ: Regulating the Industry: A Running Tracker of Fashion-Focused Legislation. As the U.S. sees a rise in fashion-centric legislation, here is a running list of key domestic legislation that industry occupants should be aware of. – Read More on TFL
3. From gold medals to wardrobes, Paris Olympics to spotlight French luxury. Sports are “a space where brands have been ramping up significantly in recent years. You have the TV viewership of sporting events, which makes it a really good placement opportunity, plus the fact that sporting events have become more luxurious.” – Read More on France24
4. The Strategy Behind Temu’s Rapid Rise. It’s been pouring money into marketing, trying to become the go-to place where Americans can buy cheap goods online. Temu was the fifth biggest digital advertising spender in the final three months of 2023. – Hear More on WSJ
5. EU lawmakers ratify political deal on AI rules. Two key groups of lawmakers at the European Parliament ratified a provisional agreement on landmark AI rules ahead of a vote by the legislative assembly in April that will pave the way for the world’s first legislation on the tech. – Read More on Reuters
6. Large M&A rebound picks up in 2024 where 2023 left off. “I think 2023 was likely a trough year for M&A, and 2024 will be a year of improvement.” M&A announcements are expected to continue to pick up in 2025, getting the market back to its typical baseline level of activity. – Read More on S&P Global
1. Man City ask High Court to dismiss trademark claim from Superdry over training kit. “The average consumer seeing the Asahi logo on the Manchester City training kit (both as worn by the players and as intended to be sold and supplied to the public as replica kit) will recognize it as present thereon for the purpose of promoting Asahi Super ‘Dry’ lager.” – Read More on Yahoo
2. How Luxury Brands Are Leveraging Blockchain and AI For Business Impact. Maximizing on business impact and addressing some of the industry’s biggest challenges are key areas of focus alongside theft, traceability of counterfeit and sustainability. – Read More on Forbes
3. RETRO READ: Brands Are Looking to Revamp Their Loyalty, Rewards Efforts with Blockchain. 71 percent of U.S. consumers are active in at least one loyalty programs per month, 56 percent have at least one loyalty rewards program app on their phone, and 62 percent of consumers are willing to choose one brand over another because of its loyalty program. – Read More on TFL
4. Temu returns to Super Bowl ad slate as lawmaker ire swells. The company is looking to win over U.S. shoppers by being the next best “everything store” with lower prices than competitors, but lawmakers say it uses slave labor in its supply chain and spies on its customers. – Read More on CNBC
5. Three big AI trends to watch in 2024. “Small language models can make AI more accessible due to their size and affordability.” Unlike LLMs trained on vast amounts of internet data, SLMs use curated, high-quality training data. – Read More on Microsoft
6. Amazon hides cheaper items with faster delivery, lawsuit alleges. According to the complaint, nearly 98 percent of Amazon sales are of items featured in the Buy Box, because customers allegedly “reasonably” believe that featured items offer the best deal on the platform. – Read More on ArsTechnica
1. Kering’s Gucci Can Be Revived but It Won’t Go Viral. Investors are looking for the next turnaround story in luxury. Kering seems like a good fit. But with the company warning that investing in its brands will mean a decline in operating profit this year, that longed-for revival remains some way off. – Read More on Bloomberg
2. Trader Joe’s appeals dismissal of lawsuit claiming labor union violated trademark. The filing with the 9th Circuit U.S. Court of Appeals comes after a judge accused Trader Joe’s of trying to “weaponize the legal system to gain an advantage in an ongoing labor dispute” with the union. – Read More on CNBC
3. What to know about landmark AI regulations proposed in California. The bill requires mandatory testing for wide-reaching AI products before they reach users. Every major AI model, the bill adds, should be equipped with a means for shutting the technology down if something goes wrong. – Read More on ABC
4. How AI is ‘amplifying creativity’ in the fashion world. “these tools are allowing people from very different backgrounds to begin to have a foothold in the industry. And for me, that feels really new and exciting.” – Read More on the Guardian
5. Hermès looks to raise prices as wealthy shoppers continue splurging on Birkin and Kelly bags, driving sales up 21% last year. Hermès has also stuck to its classic designs and exclusive brand status within the luxury market, which has helped it create a niche of its own. – Read More on Fortune
6. Some Luxury Brands Have Priced Themselves Out of Reach. The average price of luxury goods sold online in the U.S. increased 64% between 2019 and 2024. This jump probably reflects a shrinking offer of entry-level goods as well as hefty price rises on existing products. – Read More on WSJ
1. Greenpeace says “recycling is a myth for clothing.” 93% of all reprocessed textiles come from plastic bottles and not from old clothes, meaning they still use fossil fuels, and the European Commission says less than 1% of fabric used to produce garments is converted into new clothing. – Read More on SCMP
2. Generative AI Pushed Cyber, Business Teams Closer at E-Commerce Giant Zalando. At the same time, security and other legal risks related to generative AI have been a focus for executives even as they push to experiment with the technology to create new products. – Read More on WSJ
3. The race to regulate e-commerce is just beginning. In the U.S., for example, lawmakers have proposed legislation that would lower the de minimis dollar amount (currently $800) under which e-commerce retailers can import goods duty-free and restrict certain non-market-economy countries from taking advantage of simplified trade processes. – Read More on Reuters
4. Three Shipments Yield Fake Luxury Merchandise and Jewelry with an MSRP of over $1.2M. A third shipment originating from China contained 240 units of sunglasses bearing trademarks owned by Cartier, Louis Vuitton, and Versace. The merchandise was determined to be inauthentic, such that the logos constituted counterfeit marks. – Read More on CBP
5. Luxury slowdown will continue into 2024, Gucci owner Kering says. At Gucci, full-year revenue fell by 6% to €9.87 billion, while sales at Yves Saint Lauren were down by 4%. Revenue also declined at Bottega Veneta and Kering’s other clothes-led houses like Alexander McQueen. – Read More on Yahoo
6. Amazon’s Newest Competitors Are Stepping Into Its Territory—Literally. Fast-fashion company Shein and TikTok’s shopping unit are expanding in Amazon’s territory, seeking to poach Amazon’s employees and building out workspaces in the same Seattle-area office tower. – Read More on WSJ