Daily LInks
1. Shein investors selling stock at 30% discount. Shein’s investors are trying to sell shares in the private market at prices that value the Chinese online retailer as low as $45 billion, or a discount of around 30% to its valuation about a month back. – Read More on Reuters
2. Fashion resale gives brands sustainability and revenue boost. Consumers win, too. For brands that make high-quality, long-lasting apparel and other goods, in-house resale programs give them an opportunity to sell items twice, or even multiple times, while also keeping garments in circulation longer. – Read More on CBS
3. Post-Pandemic Sales Growth Slows at Luxury Giant LVMH. The growth in sales, while solid, is slower than recent years when LVMH benefited from a post-pandemic binge on Champagne, handbags and luxury jewelry—a trend luxury consumers called “revenge shopping.” – Read More on WSJ
4. FTC opens inquiry into Big Tech AI investments. The FTC said in a statement that it “will scrutinize corporate partnerships and investments with AI providers to build a better internal understanding of these relationships and their impact on the competitive landscape.” – Read More on Axios
5. X can’t stop spread of explicit, fake AI Taylor Swift images. Explicit, fake AI-generated images sexualizing Taylor Swift began circulating online this week, quickly sparking mass outrage that may finally force a mainstream reckoning with harms caused by spreading non-consensual deepfake porn. – Read More on ArsTechnica
6. China’s luxury goods market posts ‘robust rebound’, but post-Covid uncertainties remain. “As the market transitions to a post-Covid growth phase, uncertainties remain regarding the speed at which consumer confidence will resume and how overseas luxury shopping will evolve.” – Read More on SCMP
1. Vestiaire Collective launches crowdfunding, eyes IPO in 2025. Second-hand fashion marketplace Vestiaire Collective launched a crowdfunding campaign on Tuesday to raise at least one million euros from individual investors as the Kering-backed business aims to become profitable by year-end and potentially go public. – Read More on Reuters
2. £3,000 bracelets vs £400 sneakers: the diverging fortunes of the luxury market. Luxury’s biggest groups, such as Richemont, LVMH and Hermès, are expected to widen their lead on weaker competitors. – Read More on the FT
3. Shein’s marketplace is littered with gray-market products from top brands like Hoka. Visitors to Shein may assume that all name-brand goods are sold by authorized retailers. But, in the case of Hoka and Paul Smith, they are sold by third-party sellers that do not have a relationship with the brands or manufacturers themselves. – Read More on Modern Retail
4. RETRO READ: Unauthorized Sales of iPhone Cases at Center of New Decision, Amid Fashion’s Gray Market Fight. The court’s decision is certainly a striking one in light of fashion and luxury brands’ enduring efforts to crack down on the sale of goods outside of their networks of authorized sellers and in particular, in conditions that do not meet the ones that they and their authorized retailers observe. – Read More on TFL
5. Gucci, Prada deals on Fifth Ave. suggest a major pivot for a retail mogul. Gucci’s move this week to snap up a major retail berth on Fifth Avenue in Midtown for nearly $1 billion was the latest effort by a high-end fashion house to control its own storefront. – Read More on Crain’s
6. Italy tightens charity giving rules after influencer scandal. Italy’s cabinet is set to approve a bill demanding greater clarity from companies that link product sales to charity donations after top fashion influencer Chiara Ferragni came under fire for misleading posts about a Christmas cake. – Read More on Reuters
1. How IKEA Evolved Its Strategy While Keeping Its Culture Constant. Among other things, the company reworked its franchise agreements to ensure consistency among its global stores, and balanced global growth with localization, developing all-new supply chains. – Hear More on HBR
2. Is second-hand luxury’s new growth driver? Better than traditional luxury craft houses, resale platforms have mastered the codes of social networks and the digital language of the younger generation. Collector Square now boasts 65% to 70% of its sales online, reversing the initial trend. – Read More on Market Screener
3. RELATED READ: Rolex – Owning the Luxury Resale Opportunity. Brands want in on one of the biggest results of their strategy of consistently limiting the supply of their goods: a robust secondary market. – Read More on TFL
4. Investors Poured Millions into Her Fashion Brand. Then It All Fell Apart. Like many digital startups, Something Navy burned through cash in pursuit of growth. The company opened stores and invested in digital marketing. – Read More on the WSJ
5. Is a lack of diversity holding back the fashion industry? The inaugural Fashion Diversity, Equality and Inclusion (DEI) report found that only 9% of executive and 11% of so-called power roles, which include chief executive, chief financial officer, chair and creative director positions, are held by people of color. – Read More on the Guardian
6. How Abercrombie went from America’s most hated retailer to a Gen Z favorite. The new Abercrombie is focused on an older demographic: The twenty-something. “The brand is growing up with its customer.” – Read More on Fast Co.
1. Chinese people spend over 1 trillion yuan on luxury goods in 2023. China’s luxury goods market witnessed 11 percent growth in 2023, reaching 607.7 billion yuan, accounting for about 22 percent of the global luxury goods market. – Read More on China Daily
2. Why AI Keeps Getting Better at Making Fake Images. “We went from these glitchy deepfakes, from 5, 6, 7 years ago, to full-time, real-time, almost at frame rate, running on my laptop, superimposing somebody’s face on mine at high-res. That is incredible.” – Hear More on the WSJ
3. Is It Time to Break Up Luxury Behemoth LVMH? LVMH is being penalized by shareholders for its disparate collection of businesses. Breaking up the behemoth could release significant value for investors, and might, incidentally, help solve the looming succession issue. – Read More on Bloomberg
4. Gildan Activewear says Browning West’s share purchase was “illegal.” Activist fund Browning West’s purchase of Gildan shares last month violated the U.S. anti-trust laws. Gildan has alleged the move was an “illegal” attempt by the U.S.-based fund to reappoint former CEO Glenn Chamandy and eventually take control of the company’s board. – Read More on Reuters
5. Four Questions to Assess the Trustworthiness of Your Company’s GenAI. Because the technology is evolving so quickly, problems reveal themselves during deployment while cultural norms around what it means to use gen AI ethically are still being debated. – Read More on HBR
6. Temu is using its lawsuit against Shein as a PR engine. The intent, it seems, was to get publications to tie in the lawsuit with its upcoming advertising plans. Indeed, publications like AdAge took the bait, publishing news stories about the contents of the suit that confirmed the advertising plans. – Read More on Modern Retail
1. China’s Scrutiny of Shein IPO Plan Shows Regulator’s Reach Widening. Shein still subject to review despite selling nothing in China. Process revives memories of Didi probe that forced delisting. – Read More on Bloomberg
2. Red Sea conflict plunges Bangladesh garment makers into the red. Bangladesh’s garment industry faces surging freight rates, longer lead times and container shortages as spillover effects from fighting in the Red Sea, just months after the sector was roiled by protests over wages and subsequent factory closures. – Read More on Nikkei
3. At Davos, ESG begins a quiet rebranding—here’s what that looks like. The WEF published a report on an initiative it’s launched to address one of the loudest attacks leveled against ESG: Those letters stand for everything, and therefore nothing, which makes it nearly impossible to establish fair, universal metrics. – Read More on Fast Co.
4. Cartier-owner Richemont’s earnings may show the bright spot that luxury companies have been waiting for—demand from Chinese shoppers. “There are macroeconomic problems … but mainland China was double digit positive,” Richemont CFO Burkhart Grund said. – Read More on Fortune
5. Las Vegas Show ‘MJ Live’ Sues Michael Jackson Estate Over Trademark Dispute. The suit claims that estate sent cease-and-desist letters to six venues across California, Florida, Illinois, Ohio and Wisconsin, and refers to them as “intentional and wrongful interference” that was “intended to harm Plaintiff.” – Read More on THR
1. Why fashion’s oversupply problem is an environmental disaster. As many as 40% of clothes made each year – 60bn garments – are not sold. Experts say tackling such obscene waste will require radical changes in production – and legislation. – Read More on the Guardian
2. Michael Burke named LVMH Fashion Group chairman and CEO. Burke – chairman and CEO Bernard Arnault’s longest-serving lieutenant – replaces long-time Fashion Group head Sidney Toledano, who was named advisor to Arnault and will exit the company’s executive committee. – Read More on Reuters
3. Survey: GenAI Is Making Companies More Data Oriented. Substantial majorities view generative AI as the most transformational technology in a generation, that investments in the technology are a top organizational priority, and that they are increasing investment in it. – Read More on HBR
4. Some Luxury Goods Had a Better Christmas Than Others. Rich Americans are still buying Swiss watches and other luxuries, but that isn’t enough for some companies. – Read More on the WSJ
5. WallStreetBets Trademark Fight Ends in Win for Reddit, With a Warning to Creators. Dismissing the suit, U.S. District Judge Maxine Chesney concluded that Reddit established use and ownership of the WallStreetBets trademark in 2012 when Rogozinksi created the subreddit. – Read More on THR
6. Cryptocurrency like Beanie Babies, says Coinbase in US regulator’s lawsuit. The Securities and Exchange Commission has alleged the crypto exchange is flouting rules and selling unregistered securities. – Read More on the Guardian
1. China’s luxury market is bouncing back. The projected 4-6% growth is higher than what forecasters are predicting for the U.S. and Europe, with most Chinese luxury spending taking place domestically as travel outside China remains more difficult than it was pre-pandemic. – Read More on Semafor
2. On the flipside … Luxury’s Rebound Is Proving Elusive as China Gloom Adds to Warnings. Luxury stock investors are bracing for more bad news after the likes of Burberry Group and Hugo Boss fell short of already reined-in expectations and economic data from China dents the chances of a near-term rebound. – Read More on Yahoo
3. Fashion Giant Faces New IPO Hitch: China’s Cybersecurity Police. China’s powerful internet regulator is conducting a cybersecurity review of Shein’s data handling and sharing practices as the fast-fashion company seeks Beijing’s blessing for its planned initial public offering. – Read More on the WSJ
4. Gucci is cheap and eggs are pricey in Russia’s surreal economy. Just before Christmas, a sales assistant was proudly showing customers the newest handbags from Gucci, Chanel and Louis Vuitton. They were bought in Europe and carried back to Russia in the luggage of a “personal shopper.” – Read More on the Economist
5. RETRO READ: Russia May Look to the Grey Market as Supply Runs Low Amid Sanctions, Boycotts. Companies’ trademark rights and their ability to control the distribution of their coveted offerings could be threatened in the midst of the escalating sanctions being levied upon Russia and boycotts from brands that have shuttered operations. – Read More on TFL
6. Gildan Activewear says former CEO failed to disclose ties with a shareholder. Canadian apparel maker Gildan Activewear on Tuesday alleged that its former chief Glenn Chamandy failed to disclose certain fund investments and had an undisclosed relationship with a shareholder. – Read More on Reuters
1. Renting Clothes Was Supposed to Be the Future of Fashion. Then Shoppers Got Bored. StitchFix and Rent the Runway are struggling to convince Americans to make monthly payments of roughly $90 to $240 for rented clothes, with many of their consumers also complaining about a lack of diversity in styles and sizes, and availability of outfits. – Read More on the WSJ
2. Rolex’s modest price hikes indicative of luxury sector moderation – analyst. Morgan Stanley suggested that Rolex’s decision to moderate price increases reflects a cautious approach, possibly aimed at sustaining market share gains without alienating customers sensitive to price fluctuations. – Read More on Proactive Investor
3. The RealReal Joins EON to Boost Luxury Resale Transparency. According to the release, owners of luxury fashion from EON’s partners can scan an item to access its history, including its provenance and past sales, and then get the option to consign with The RealReal. – Read More on PYMNTS
4. How companies are responding to attacks on ships in the Red Sea. India and Pakistan, for instance, are part of a big region for apparel manufacturing, but a source close to Target said the effect has been “minor” overall. – Read More on Reuters
5. Struggling Fashion House Trussardi Nears Brand, Assets Sale. After an extended marketing process that saw little demand, the brand, together with some of the group’s branches, is set to be sold to Miroglio Group. – Read More on Bloomberg
6. Inside Gucci’s Quest for Older, Richer Customers. Gucci is similarly striving to make itself a little less available, reducing its overall product range by 20% in recent months and cutting its distribution network. – Read More on the WSJ
1. Five Takeaways From the New EU Circular Fashion Strategy. The 2022 EU Strategy for Sustainable and Circular Textiles is part of a larger effort from the 27-nation bloc to establish a circular economy within all industries, reach climate neutrality by 2050. – Read More on Earth.org
2. Is A.I. the Death of I.P.? Fair-use litigation can make your head spin, not just because the claims of infringement often seem far-fetched—where is the damage to the rights holder, exactly?—but because the outcomes are unpredictable. And unpredictability is bad for business. – Read More on the New Yorker
3. Luxury Hand-Me-Downs Are Now Worth Billions of Dollars. Shoppers have splashed out $1.3 trillion on new luxury handbags, clothes, watches and jewels over the past four years alone. At least some of that stuff will find its way onto secondhand websites. – Read more on the WSJ
4. Burberry’s weakness could entice luxury shopper. Shares in Burberry are down 45% from a year ago as CEO Jonathan Akeroyd struggles to turn the £4.5B brand around quickly in a tough luxury market. Its depressed valuation is getting close to the level that may attract a potential suitor. – Read More on Reuters
5. It’s Time for the Government to Regulate AI. Here’s How. Lawmakers have a range of tools at their disposal. We have spent two decades learning the hard way what happens when tech companies have unchecked, unregulated power to swallow up markets and eliminate competition. – Read More on Politico
1. Chanel Changes the Guard Amid Weaker Luxury Demand. The company’s former Japanese head has joined the US and UK bosses in departing Chanel Ltd. — known for its No. 5 perfume, tweed jackets and mini-skirts — two years into Leena Nair’s reign as chief executive officer. – Read More on Bloomberg
2. LVMH is fed up with fake goods being sold on TikTok—so it is in talks to join forces with the video platform to stop it. The goal of working with LVMH would be to create an “elevated shopping experience,” Toto Haba, a senior executive at LVMH-owned Benefit Cosmetics, which has a presence on TikTok Shop, said. – Read More on Fortune
3. Studios’ Now-or-Never Choice: Sue AI Companies or Score a Major IP Deal. As AI generators like Midjourney are increasingly able to replicate movies frame by frame, it won’t be long until they can re-create the ‘Avengers: Endgame’ with an alternate finale. Will Hollywood just let that happen? – Read More on THR
4. AI Has a Trust Problem. Can Blockchain Help? Business uses of blockchain, like supply-chain tracking, have floundered. But some say the technology could find relevance as a tool to vet AI algorithms. – Read More on WSJ
5. Companies Should Avoid ESG/Sustainability Reports Until SEC Rule Release. With the global rise of greenwashing penalties and civil litigation, companies need to question if sustainability reports, and the broader environmental, social, and governance reports are currently worth the legal risk. – Read More on Forbes
6. Fashion retailer Boohoo put ‘Made in UK’ label on clothes made in Asia. A Panorama investigation found the company removed the original labels on T-shirts and hoodies at the retailer’s controversial factory at Thurmaston Lane in Leicester between January and October last year. – Read More on the Independent