Daily LInks
1. How Major Luxury Fashion Brands Are Wooing the $2 Trillion Dollar Crypto Market: The widespread adoption of cryptocurrency, as well as the introduction of the new non-fungible tokens (NFTs) based on blockchain tech, have led to massive interest from top brands all over the world. – Read More on Forbes
2, The ultra-rich just want to splurge, travel restrictions lead to purchase of luxury goods: “What was surprising was not so much the recovery in China but the violent rebound in the United States,” remarked Erwan Rambourg a sector analyst. Compared with previous crisis recoveries, after the September 11 terror attacks or the 2008 economic crisis for example, “the feeling of guilt, the idea that it is inappropriate to buy luxury goods, disappeared.” – Read More on Economic Times
3. Increased Athletic Apparel Competition Has Lululemon Sweating: The pandemic only accelerated demand for athleisure. “This is an area that’s poised for continued accelerated growth,” with the total addressable global activewear market representing over $200 billion in revenue and is currently growing in the mid to high single digits. – Read More on PYMNTS
4. And speaking of athleisure … US footwear firm buys Sweaty Betty in $400m deal: After a year-long sale process that had been expected to fetch as much as £400m, the Michigan-based footwear manufacturer Wolverine Worldwide said it had struck a deal at a lower price with Sweaty Betty’s backers, including the LVMH-affiliated L Catterton. – Read More on the Guardian
5. Hugo Boss needs stronger legs to win fashion race: New Hugo Boss CEO Daniel Grieder unveiled plans to double revenue to 4 billion euros by 2025. The brand, whose men’s suits sell at $700-plus, was hit hard by the health crisis, losing a third of revenue last year. – Read More on Reuters
1. Can sustainable fashion be affordable? Overconsumption is a problem: by making clothes so affordable that they’re often as cheap as a cup of coffee, the industry only incentivizes unnecessary consumption and waste. Besides, most consumers around the world are likely to leave ethical concerns aside when given the choice of buying a low-price item made in a sweatshop or a pricier responsibly made product. – Read More on SCMP
2. Democratizing the luxury economy: How NFTs empower artists and creators. Non-fungible tokens, or NFTs, are the world’s first digital Veblen goods, even though they may require the suspension of disbelief among traditional economists, digital numismatists, and the collectors of life’s rarer things. – Read More on Fortune
3. RELATED READ: From Royalties to Resale Restrictions, What Would Tying NFTs to Luxury Goods Look Like? While “the tokenization of physical items is not yet as developed as their digital counterparts,” blockchain platform Ethereum states in a “use case” report that NFTs “can be used to represent ownership of any unique asset in the digital or physical realm,” and asserts that “there are plenty of projects exploring the tokenization of real estate, one-of-a-kind fashion items, and more.” – Read More on TFL
4. U.S. antitrust enforcer says merger wave means slower vetting: A huge increase in the number of mergers coming before the Federal Trade Commission for antitrust reviews is limiting its ability to investigate deals in a timely fashion, the FTC says. – Read More on Reuters
5. Morgan Stanley calls Victoria’s Secret a ‘credible turnaround story,’ thinks stock can jump 65%: Victoria’s Secret began trading as a stand-alone company Tuesday, and Morgan Stanley thinks the retailer could make a big comeback after years of declining sales. – Read More on CNBC
1. How Shein Became the Chinese Apparel Maker American Teens Love: Shein’s large number of third-party suppliers has made competition especially fierce, with some suppliers having to lower their prices to win orders. Still, the brand has won over factories with its punctual monthly payments and large volume of orders. – Read More on the WSJ
2. Chinese Shoppers Complain Bagging a Hermès Was Never Harder: Due to border closures forcing Chinese shoppers to get their handbag fixes at home rather than abroad — where value added taxes are lower — has thrown supply and demand out of balance. “There are too many rich people in China who cannot go abroad for their shopping sprees.” – Read More on Sixth Tone
3. The sneakers they’re wearing? They bought them from a Facebook post: Brands from Burberry to H&M have signed up social media stars to get their followers to shop from stories or posts by asking them to “swipe up to purchase.” The social commerce industry is expected to balloon to $50 billion from $36 billion in annual sales by 2023 in the United States. – Read More on SCMP
4. ‘Black Widow’ lawsuit challenges new distribution strategies, streaming profits: Scarlett Johansson claims that Disney breached her contract with the studio for the Marvel film by releasing it on the Disney+ streaming service at the same time as its theatrical debut, although her contract had stipulated an exclusive theatrical release for “Black Widow” and included significant payouts to the actor that were tied to the box office performance of the film. – Read More on S&P Global
5. How shapewear brands are trying to reinvent themselves: Shapewear companies, such as Kim Kardashian’s SKIMS brand, are rebranding toward inclusivity and casualness. In recent months, the shapewear category has gotten a boost as consumers head outside of their homes again. – Read More on Modern Retail
6. Retailers in tough position after CDC’s updated mask guidance: Walmart and Target’s mask stance is likely a bellwether for the broader retail industry, says Neil Saunders, managing director at GlobalData Retail. “They’re almost like competitive trendsetters in a way.” – Read More on Morning Brew
1. China’s members-only retailers flourish, despite growing pressure on bricks-and-mortar stores: Membership-only bulk retailers are growing in popularity in China’s big cities, catering to an increasingly wealthy and selective consumer population, but it is unclear whether the model has large-scale appeal due to its relatively high price points and increasing competition from e-commerce stores. – Read More on SCMP
2. Bonanza for Big Luxury Brands Points to Small, Private Casualties: Certain smaller listed brands are holding their own. Moncler has already exceeded its pre-Covid size. Burberry has too, although just barely. And Prada’s Hong Kong-listed shares shot up 12% after it released numbers showing first-half retail sales 8% ahead of pre-pandemic levels. But they are exceptions. – Read More on the WSJ
3. Regenerative agriculture won’t solve the fashion industry’s pollution problems: The average consumer buys 68 garments per year, five times more than in 1980. Sourcing the raw materials for this ever-growing industry from regenerative farms would encompass a large-scale transformation. But just because a shirt is made from regeneratively grown cotton doesn’t make it a sustainable product. – Read More on GreenBiz
4. On a similar note … Fashion’s Tech Initiatives, Alone, Won’t Solve its Sustainability Issues. The industry as a whole has increasingly looked to volume to boost their earnings, particularly as mass-market margins have dropped. This has fueled a race to the bottom in both wages and quality, which is, of course, a critical part of fashion’s sustainability problem. – Read More on TFL
5. Shares in Bernard Arnault’s luxury goods conglomerate LVMH fell by 1.4% Friday, making Arnault $2.9 billion poorer as well, but he still finished the week with an estimated net worth of $192.9 billion, $500 million ahead of Bezos. – Read More on Forbes
6. ‘Buy Now, Pay Later’ Installment Plans Are Having a Moment Again: Americans spent an estimated $20 billion to $25 billion using deferred payments in 2020, and transactions through such plans could grow 10 to 15 times by 2025, topping $1 trillion. – Read More on Bloomberg
1. The digitization of the fashion industry and what it means for brands: “There is a limit to how much [brands] can do physically without using stores and showrooms. Therefore, providing an immersive experience online is something [they] should really excel in.” – Read More on Forbes
2. The truth about fast fashion: Can you tell how ethical your clothing is by its price? Our perception of what clothing should cost – and how much of it we need – has shifted, and the correlation between price and ethics is knotty, to say the least. – Read More on the Guardian
3. RELATED READ: $20 Jeans, $800 Tees … In Fashion, Prices Are Out of Control. Widespread marketing by way of Instagram ads touting dirt-cheap fast fashion wares has led to a collective belief among consumers that these prices are how much clothing should cost, and anything above these prices reflects an unnecessary markup. – Read More on TFL
4. Etsy Adds Some Fashion to Its E-Commerce Shopping Basket: By 2024 at a rate of 39% compound annual growth rate since 2019. The other piece that’s pretty exciting about Depop is 90% of its customers are Gen Z, giving Etsy significant exposure to this age group. Something that I think can benefit the brand overall. – Read More on Motley Fool
5. Michael Kors, Versace parent Capri raises annual revenue forecast on luxury rebound: The luxury retailer, which had earlier raised its outlook in late June, expects total full-year revenue of about $5.3 billion. Analysts were expecting revenue of $5.2 billion, according to IBES data from Refinitiv. – Read More on Reuters
1. China’s domestic brands boom, fueled by nationalism: Domestic brands like Li-Ning and Anta have benefited, boosted by rising nationalism, improvements in quality and a multimillion-dollar live commerce sector. Tensions with many Western countries, including the U.S., have also driven some consumers to turn to national brands. – Read More on SCMP
2. RETRO READ: A Look at the Changing Habits of the Chinese Luxury Consumer. “The uncertainty consumers in China once felt toward domestic products is gone. Local brands are challenging and beating the global competition, and consumers increasingly believe they’re comparable.” – Read More on TFL
3. Shopify’s Q2 results beat estimates as e-commerce shines: In the second quarter of 2021, Shopify reported revenues of $1.12 billion, up 57% on a year-over-year basis. – Read More on TechCrunch
4. And speaking of Shopify … the company is now allowing its merchants to sell non-fungible tokens. “At Shopify, we are making it easier for our merchants to sell NFTs directly through their stores, with one of the first being the ChicagoBullsNFT store.” – Read More on PYMNTS
5. As lockdowns ease, shoppers ‘revenge spend’ on luxury fashion and jewelry. Sales for Kering and LVMH are growing, while Cartier owner Richemont bouncing is back, too: During a call with analysts, Duplaix said Kering raised some prices on Gucci and Bottega Veneta products in the past year – a sign that consumers are willing to pay more for the brands. – Read More on SCMP
6. Walmart’s latest business: Selling its e-commerce tech to other retailers. Walmart said it will sell the technology it developed to allow shoppers to buy items online and pick up the purchases at the store. Small and midsize retailers also will be able to add products to Walmart’s online marketplace with just a few clicks. – Read More on CNBC
1. Despite the pandemic, luxury sales have been strong this year. But the big names in fashion shouldn’t let their guards down: Queues to get into Louis Vuitton stores have been snaking around the block. Waiting lists for brightly colored Rolex watches are long. Gucci sandals and Prada bucket hats are among this season’s most wanted items. – Read More on Bloomberg
2. Retailers rethink appointments as an easy bridge that can boost omnichannel sales: One retailer revealed that appointments saved their employees roughly 1,700 hours over a year because they were able to devote time to the best customers and best prospects instead of consumers who have a low chance of conversion. – Read More on PYMNTS
3. RELATED READ: Hermès Saw Surging Porcelain Sales, Increased Consumer Interest in Sustainability Amid COVID. “Now that we have started to open to the public, many of the clients still want to have an appointment and have that one-on-one time.” So, Hermès is planning to continue to accommodate clients in this way and offer appointments even after all COVID restrictions have been lifted. – Read More on TFL
4. Is the Birkin the only product that Hermès really needs? The iconic bag helped the brand outperform LVMH and Kering in early 2021 … but now it’s getting into cosmetics with Hermès Beauty. At the 2019 shareholders meeting, Axel Dumas, CEO of Hermès Group, stated that their goal is to become a comprehensive global luxury goods group, so the balanced development of various departments must surely be pleasing. – Read More on SCMP
5. Luxury goods spending spree: Why fashion firms are enjoying solid sales growth and high demand. Bernstein analyst Luca Solca reckons what was a ‘perfect storm’ for retailers last year has calmed down, and there is now “perfect sunshine for luxury goods spend.” People want to get back to more normal life, some customers have saved plenty of money during the pandemic, and many governments are pouring money into economies supporting workers. – Read More on Yahoo
6. Sustainability-linked loan supply outpaces green bonds and loans amid US surge: Global issuance of sustainability-linked loans has far surpassed that of green loans and bonds as companies in the U.S., including those in the fashion industry, rapidly embrace the instrument as an alternative to traditional environmental, social and governance debt. – Read More on S&P Global
1. As shoppers increasingly head out of their homes, e-commerce sales could slow” “There’s probably several reasons for the change in trend, including the reopening of stores and a shift to leisure activities and travel (i.e. there’s less need to order online when on vacation).” – Read More on MarketWatch
2. Chanel suit finds new fans in Gen Z channeling 90s nostalgia: This month Olivia Rodrigo, the 18-year-old singer of hits including Driver’s Licence and Good 4 U, chose a pink and black vintage version for a visit to the White House to meet the US president, Joe Biden. Global fashion search platform Lyst said that following the appearance, searches for vintage Chanel rose by 200%. – Read More on the Guardian
3. Guess sources more from India, Bangladesh to avoid tariff risks in China: Suppliers from Bangladesh and India made up a larger share of the apparel company’s purchases in fiscal year 2021, at about 23.5% and 18%, respectively. In fiscal year 2020, both were at less than 15%. – Read More on Supply Chain Dive
4. What we can learn from Germany’s approach to ecommerce innovation: One only has to look at the phenomenal rise of Vinted, the used fashion app, to realize how important mobile commerce is to German shoppers. The app achieved more than double the downloads of two of its most prominent competitors, Amazon and eBay, in 2020. – Read More on Retail Insight Network
5. RELATED READ: Vinted Raises $303 Million, Valuing the Resale Platform at $4.3 Billion. The company is “contributing to a seismic shift in the fashion market, enabling more sustainable, socially-responsible shopping habits,” noting that second-hand fashion is a “rapidly” growing part of the larger apparel market, which is expected to reach $2.2 trillion by 2025. – Read More on TFL
1. Gwyneth Paltrow’s ’90s Style Is Back. That’s Good for Goop: G. Label perpetuates that aesthetic, and for the most part it appears to be working. While the Goop website sells many other established fashion brands, clothing from G.Label drove 45% of its fashion business year to date, up 25% from the same period last year. – Read More on the WSJ
2. Armani bounces back from pandemic as sales rise 34% in first half: “The goal is to return to pre-pandemic levels by 2022, with over 2 billion euros in direct consolidated revenues,” Chairman and CEO Giorgio Armani said on Sunday in a statement announcing 2020 results and the trend for January-June. – Read More on Reuters
3. The Olympics may be mired in controversy, but for U.S. advertisers, it’s business as usual. Dick’s Sporting Goods may have found the right balance with the opening ceremony spot that features a few Olympic nods, but it was created to have relevance beyond the Games, with a print ad running in the September issue of Vogue. – Read More on Fast Co.
4. Gen Z’s ‘nowstalgia’ for Y2K fashion is leading to a thrifting explosion: Iconic fashion trends of the early 2000s like bucket hats, low-rise jeans, and babydoll T-shirts are all having a resurgence among younger consumers. This vintage renaissance has also led to an explosion in thrifting among Gen Z, and a rise in sites that sell thrifted clothing like Depop and Poshmark. – Read More on NBC
5. Luxury products boom leads Koreans to luxury company stocks: “The luxury goods market is expected to increase further until at least next year,” said Yu Jung-hyun, an analyst at Daishin Securities. The size of global luxury market, which stood at about 1 trillion euros last year, is likely to reach 1.3 trillion euros in 2022. – Read More on Korea JoongAng Daily
1. Is fast fashion catching up to real time? Shein is the fastest-growing e-commerce company in the world, and the company relies on a model called real-time fashion, which cuts the time from design to production to as little as a few days. – Read More on Marketplace
2. Fashion for Crocs continues to break records: On Thursday, the chunky shoe-maker reported record sales of $640 million in the three months to 30 June, nearly double the same period last year. And the trend shows no sign of slowing down – the firm raised its revenue outlook for the rest of the year. – Read More on the BBC
3. Secondhand luxury goods catch fancy of Chinese customers: “At present, the annual turnover of China’s secondhand luxury market is estimated to be about 30 billion yuan ($4.6 billion), accounting for 1 percent of total market cap. Therefore, the market development is still in its initial stage.” – Read More on CGTN
4. Retailers Embrace Post-Pandemic Beauty Trend, But Cosmetics Have Gone D2C: “As the pandemic begins to subside, we see consumers being more thoughtful and selective in their purchases while doing their own research on the beauty products, brands and people behind the brands.” – Read More on PYMNTS
5. The Post-COVID Future of the Apparel Industry: “After lots of reporting on COVID’s short-term impacts, we were determined to take a longer view. Using two decades of data, we found few changes in direction in apparel supply chain labor practices but big accelerations along the curves the industry has been following for years – supplier consolidation, market concentration, a mania for ever-lower wages, and so on.” – Read More on Cornell ILR
6. For the Luxury Crowd, SPACs and Suits Are So This Season: LVMH and Zegna are striking deals to reposition themselves for a post-pandemic world. They offer a window into the changing business of bling. – Read More on Bloomberg