Daily LInks
1. To Enjoy a Luxury Watch, You Don’t Really Need to Own It: “Something is changing in the way consumers think about and interact with luxury products. The willingness of the younger generation to embrace renting and secondhand is very high. The shift from owning to having an experience is super strong.” – Read More on the New York Times
2. Louis Vuitton to focus on department store business: French fashion house Louis Vuitton is set to beef up its menswear business as it pulls out of duty-free stores in Korea. This seems to be part of the fashion house’s strategy to maintain its brand reputation by preventing “daigou” from sweeping up products in duty free shops in downtown Seoul. – Read More on Korea Times
3. RELATED READ: What Do China’s Enduring Border Restrictions Mean for Luxury Goods Sales and the Daigou Trade? The enduring travel and border restrictions in China that were announced this week will almost certainly help spur increased activity again in the daigou industry, as luxury buyers in China are being forced to do much of their shopping at home (as opposed to during international excursions), where an often-significant gap exists between prices of luxury goods compared to when they are sold in markets, such as Italy or France, and in duty-free destinations like Hainan, an island in southern China. – Read More on TFL
4. Diamonds have gone digital: De Beers has dabbled in the lab-grown market with its Lightbox collection, but right now Céline Assimon, CEO of De Beers, aside from trying to promote the positive impact natural diamonds can have, is focusing on building De Beers’ presence on China’s fastest growing luxury platform, Tmall Luxury Pavilion. – Read More on Wired
5. Burberry CEO to join rival Ferragamo: Burberry boss Marco Gobbetti is leaving the company to take the helm of Italian luxury goods group Ferragamo, following a 4-year-tenure. – Read More on TFL
6. Amazon teams with board game distributor to sue alleged counterfeiters: “If a counterfeiter attempts to take advantage of our customers or partners like Asmodee, our Counterfeit Crimes Unit will hold them accountable through civil litigation or criminal referral to law enforcement,” Kebharu Smith, director of Amazon’s Counterfeit Crimes Unit, said. – Read More on Reuters
1. Total e-commerce sales during Amazon Prime Day surpass $11 billion, Adobe says: Total online retail sales in the United States during Prime Day were 6.1% higher than transactions generated by the 2020 event, according to Adobe Analytics. Online retail sales amounted to $5.6 billion on Monday and $5.4 billion on day two. – Read More on CNBC
2. Who Counterfeits the Counterfeiters? What the real big takeaway form Louis Vuitton’s new Nike sneakers is that no matter what your take on this collaboration is, collectively it is a big win for how far streetwear has come in terms of driving the zeitgeist. But it is also nice to see some shine being given to the original fakes. – Read More on Hidden Rsrch
3. Victoria Beckham cuts dress prices to ‘future-proof’ fashion brand: Victoria Beckham is reducing the average selling price of her dresses by almost 40% by switching to simpler silhouettes and fewer embellished fabrics, in a move that points to how the fashion industry may adapt to the disruptions to lifestyle and budget caused by the pandemic. – Read More on the Guardian
4. Retail’s evolution depends on edge computing: Today’s shoppers have become accustomed to Amazon-like e-commerce experiences and are demanding more from the brick-and-mortar stores they frequent. Edge computing is becoming a must-have. – Read More on MIT Tech Review
5. These charts show why Victoria’s Secret fired its angels — and why that might have been a mistake: after years of scandals, allegations of misconduct, and generally, the waning appeal of its stuffy, boardroom-invented fantasy of sexuality, Victoria’s Secret’s mea culpa rebrand was only a matter of time. – Read More on the Business of Business
6. Apple banks on physical stores as economies reopen: As the retail industry works out what the post-pandemic future will look like, including for consumers who have become used to ordering almost everything online, Apple is focusing both on what helped it through the pandemic, and doubling down on its pre-pandemic strategy of in-store events and experiences beyond shopping. – Read More on Reuters
1. Chinese sellers on Amazon in hot demand by VCs and e-commerce roll-ups: Chinese merchants selling on Amazon are having a moment. The scruffy exporters are used to roaming about suburban factory areas and dealing with constant cash flow strain, but suddenly they find themselves having coffee with top Chinese VC firms and investment representatives from internet giants, who come with big checks to hunt down the next Shein. – Read More on TechCrunch
2. Amazon and Walmart dominate apparel sales, but are after more fashion clout: The retail giants compete across many categories, but apparel has become an area where both have sought to gain market share. The two retailers can drive more sales if they keep up with trends, along with selling socks and basic T-shirts. – Read More on CNBC
3. Luxury-Goods Results Should Be “Exceptional.” That’s the Bad News, Says HSBC. By the second half of the year, or early 2022, sales growth may fall and possibly margins too. “Across the board, we believe the sector might be a difficult one to invest more funds in as it shows signs of a normalization after a period of exuberant top-line growth and, likely, over-earning as the recent sales surge has not been accompanied by a similar quantum of spending.” – Read More on Barron’s
4. Luxury spending is booming: High-income consumer spending, which bounced back completely in March, is 11% over pre-pandemic levels currently, per The Washington Post. This discretionary spending propels economic recovery, although it’s likely to widen disparities post-pandemic. – Read More on Biz Journals
5. Gender neutral clothes are the next big thing in fashion: Stores have good reason to roll out such collections. A December 2020 survey by global marketing and consulting firm Wunderman Thompson of 1,000 US consumers aged 16-24, 70% of those surveyed agreed or strongly agreed that gender doesn’t define a person as much as it used to. – Read More on CNN
1. Louis Vuitton-owner LVMH believes the future of retail will be mostly in-store: “We see the future being two things: being mostly retail stores, because the client experience in a retail store cannot be matched easily online. The second point is also to enrich this experience with online content.” – Read More on CNBC
2. The fashion industry’s quest to deliver on its sustainability ambitions: In the wake of the pandemic, things might be taking a turn. For the first time in decades, the global fashion industry is undergoing its most profound moment of reckoning, and some of its players are attempting a systemic transformation in the way it operates. – Read More on Fortune
3. How Cultural Merch Has Taken Over Fashion: During the pandemic, merch took on a whole new meaning. When it became clear that restrictions weren’t going to be lifted anytime soon, copping a T-shirt from your favorite spot became a way to support them through the crisis, and tap into a real-life sense of community that we all craved. – Read More on Highsnobiety
4. Million dollars no longer gets membership of top 1% wealth club – Credit Suisse: “Wealth creation in 2020 appears to have been completely detached from the economic woes resulting from COVID-19,” said Anthony Shorrocks, a consultant for Credit Suisse and the author of the report. The pandemic had an acute short term impact on global markets, but it was reversed by the end of June 2020. – Read More on S&P Global
5. Prada, Zegna Invest in Italian Cashmere Maker to Secure Supply: The fashion brands will each own 40% of Filati Biagioli Modesto SpA, which specializes in the production of cashmere as well as other “noble yarns.” Luxury brands are seeking to improve the traceability and transparency of the materials used in their products amid growing awareness among consumers on matters ranging from animal welfare to workers’ rights. – Read More on Bloomberg
6. RELATED READ: Prada is Looking to Try its Hand at Building Out a Group Again, Sources Say. Prada is also reportedly in the market for other acquisitions, namely a deal that would enable it to build a bigger group under the watch of Mr. Bertelli, along with his wife and longtime Prada creative chief Miuccia, and their son Lorenzo Bertelli, 33. – Read More on TFL
1. Livestream sales of luxury items are popular in China, but not Singapore: “[China’s] geographical vastness makes livestream shopping more appealing compared to a trudge to a physical store. On the other hand, Singapore, with its small size and great transport infrastructure, means one can access the products in person in mere minutes, hence providing neither a push nor motivation for livestream shopping.” – Read More on the CNA
2. North Face Owner Pulled Xinjiang Criticism, Then Reinstated It: After VF took down its statement, executives quickly reconsidered, according to people familiar with the matter. In less than a day, the company decided to reverse course and publicly reaffirm its concerns over Xinjiang in a new but shorter statement. – Read More on the WSJ
3. How do retailers know what will sell out? They check TikTok: Gap’s “high-rise cheeky straight” jeans and “sky-high straight” jeans saw sales surge this year as TikTok helped spur a frenzy for loose-fit “mom jeans.” Gap saw a 200 percent increase in the number of cheeky straight jeans sold online within just a day. – Read More on NBC
4. Shipping rates expected to stay high in potential profit drag for retail: UBS says a key takeaway from meetings with shipping industry experts is that supply chain pressures will remain in place for the near term as it pertains to the retail sector. – Read More on Seeking Alpha
5. Risk of forced labor in clothing industry rises due to pandemic and industry response: The commercial actions of companies during the pandemic has brought to light how many business models within the garment industry are fundamentally at odds with these commitments, and that current government regulation does not go far enough to protect the workers. – Read More on University of Sheffield
6. Business-savvy Bangladesh fabric factories take on a greener hue: Zaber and Zubair Fabrics Ltd, a supplier of home textiles to major European retailers H&M and Lidl, is one of a growing band of Bangladeshi garment factories on a mission to clean up their act – and improve their bottom lines by going greener. – Read More on Reuters
1. The post-covid luxury spending boom has begun. It’s already reshaping the economy: Retailers are eager for the rich to spend $2.5 trillion in savings. J.Crew and Uniqlo are reaching for much higher top price points for the new items they’re introducing this season, compared with similar periods last year, competing for the high-end market. – Read More on the Washington Post
2. When Second Hand Becomes Vintage: Gen Z Has Made Thrifting a Big Business. “Thrifting has been normalized. Since so many people are doing it, it’s now seen as cooler. It’s seen as better than going to the mall. Younger people find it fun, like a game. A hunt for something unique.” – Read More on NPR
3. Poverty, pollution and profligacy – a fast-fashion horror story that will make you think twice about buying clothes: “Eighty per cent of donations leave a donation store’s floor not in the arms of individuals […] but packed into huge bales headed many places, including overseas.” – Read More on SCMP
4. RETRO READ: Rwanda Does Not Want Our Used Clothes and is at a Standoff with the U.S. as a Result. Due to the sheer volume of donated clothing in the U.S., most of these wares never make it to shelves in stateside secondhand stores. Instead, they are – or in a growing number of cases, were – shipped to Africa, India, Pakistan, and other far-flung locales, where they are sold to traders, who will then sell them to consumers. – Read More on TFL
5. Everything isn’t Gucci: Trademark law and the secondhand luxury goods market. Gone are the days of a single person selling a fake Fendi Baguette out of the trunk of a car; today, counterfeit goods are knowingly or unknowingly being sold on eBay, Poshmark, or The RealReal. – Read More on Reuters
6. RELATED READ: The Rocky Relationship Between Luxury Resale and (Some) Luxury Brands. Rhe Chanel lawsuits are striking in large part because resale companies have been able to live a relatively lawsuit-free existence. This is because the straightforward resale of luxury goods falls squarely within the bounds of the law. The First Sale Doctrine states that once a trademark owner, such as Chanel, releases its goods into the market, it cannot prevent the subsequent re-sale of those goods by their purchasers, assuming, of course, that the physical condition of the goods in question had been altered or impaired. – Read More on TFL
1. Clothes That Don’t Exist Are Worth Big Money in the Metaverse: “Because NFTs can act as a ‘digital twin’ of a real-life garment—proving authenticity and provenance—brands like Louis Vuitton and Nike are now actively investing in blockchain technology.” – Read More on Bloomberg
2. On the other hand … NFTs might not solve the authenticity problem: It is very difficult to assure anyone that what they have is the original/authentic/canonical copy. That’s true even if we agree on a convention that would anoint the copy Beeple delivered as the “real” one. – Read More on Slate
3. Not Being Amazon Is a Selling Point for These E-Commerce Players: “There is more consumer awareness than there was 10 years ago,” said Andy Hunter, Bookshop’s chief executive. “I think the Covid crisis has made people more aware of the needs of local businesses.” – Read More on the WSJ
4. Five things L Brands is doing to try to accelerate Victoria’s Secret’s turnaround: It is phasing out all of its Angels imagery. In its place will be new brand ambassadors the company has selected for their activism and accomplishments. Some of these women include soccer star Megan Rapinoe, actress Priyanka Chopra Jonas and champion skier Eileen Gu. – Read More on CNBC
5. The Original Ugly Sneaker Is Back: Remember the Isabel Marant wedge sneakers? Everyone wore them — inexplicably (and they spawned seemingly countless copies as a result). Now the designer has a new version, with an even higher heel. – Read More on the New York Times
1. Louis Vuitton Owner Embraces Google’s AI to Boost Sales: The Alphabet Inc. unit will work with luxury-goods powerhouse LVMH’s individual brands to enhance demand forecasting and inventory management and help better recommend targeted products to clients, top executives at both companies said in an interview. The companies declined to unveil the terms of the deal. – Read More on Bloomberg
2. Adidas CEO Kasper Rorsted says consumers will force fashion industry to be more sustainable: The scrutiny will force the fashion industry, which produces 8% to 10% of global carbon emissions, to become environmentally friendly, Rorsted said. “This is only the beginning, but the impact plastic has on our global environment is so negative.” – Read More on CNBC
3. Bangladesh garment industry could save $500 million a year by recycling cotton: In 2019, the South Asian nation imported about 1.6 million tons of cotton, at a cost of $3.5 billion, while producing 250,000 tons of cotton waste that could have been recycled, said new analysis from the Circular Fashion Partnership. – Read More on Reuters
4. Covid-19 Rent Breaks for Retailers Are Becoming the New Norm: More shopping-center owners are signing new leases where rent is tied directly to a portion of sales, at least for a period. These percentage-rent leases are especially attractive to newer retailers, offering some flexibility so that they aren’t saddled with large losses as they are starting out. – Read More on the WSJ
5. RETRO READ: From Malls to Madison Avenue: Real Estate is Getting a COVID Makeover. Among the most immediate results of that shift in power? An adoption of turnover-based leases, ones in which a link exists between the revenue a company brings in from the space it leases and the rent it pays (a trend that has adopted with increasing frequency in recent years), as well as the adoption of COVID-19 clauses aimed at specifically addressing and mitigating new risks. Another big development: shorter commercial leases. – Read More on TFL
6. U.S. businesses boost e-commerce investments even as pandemic winds down: More than half of survey respondents, or 54%, said their organizations plan to prioritize e-commerce experiences in areas such as mobile payments and online services, including buy-online, pick up in-store and curbside pickup. That is up from 31% in the second quarter of 2020. – Read More on S&P Global
1. Neiman Marcus Rides a Rebound in Luxury Shoppers: CEO Geoffroy van Raemdonck wants to focus on high-end luxury customers, including the 40% of Neiman Marcus shoppers who spend at least $10,000 a year with the chain, while also attracting new customers. – Read More on the WSJ
2. Mined diamonds to hold premium as lab-made market grows, gem expert says: “With jewelry, it’s about the emotion and building a strong brand. There’s been other options for jewelry buyers for years now with other stones … but it gets back to the whole marketing thing, that it’s a luxury item. You could ask, ‘Why do people want a $25,000 Birkin bag from Hermès? It’s not practical at all.’ But Hermès can sell as many as they want.” – Read More on S&P Global
3. “Either We All Win or We All Lose” – Gucci’s powerful message to the fashion industry: “We have decided to use our platforms and our voice because of the awareness of the Gucci brand worldwide. Like any other company or industry in the world, we need to understand it’s not even a choice – we just need to do it.” – Read More on Vogue
4. Fashion moves to the center of activist crosshairs: Rag traders have so far been largely sheltered from environmental activism. They shouldn’t be. At over 2 billion tons a year, cheap clothing production emitted 4% of global greenhouse gas emissions in 2018, according to McKinsey, and causes 20% of water pollution. – Read More on Reuters
5. Got the jab, bought the T-shirt: ‘Vaxinistas’ and the rise of pandemic merchandise. Merchandise, and in particular slogan tees and pins, has been an expression of its wearers’ values for years. Vaccine merch serves a very particular purpose: at a time of wearing your political values on your sleeve, it gives physical form to a historic moment. – Read More on the Guardian
6. Retail Sales Dropped 1.3% in May as Pandemic Shopping Habits Shifted: Americans instead are spending more on services, which account for the bulk of economic output but are largely excluded from the retail-sales report. Spending on one service—restaurants and bars—rose 1.8% last month, sending food-service sales beyond pre-pandemic levels. – Read More on the WSJ
1. How Ecosystems Can Help the Fashion Sector Gain Competitive Agility in the New Normal: The role of fashion institutions would be fundamental for the future revamp of each national industry. These would include refreshing policies and regulations, supporting SMEs in planning contingency and managing risks, offering employees and workers protection, etc. – Read More on Entrepreneur
2. The fashion industry is ignoring over 50s at its peril: “Fashion finally has become kinder to women of all shapes and sizes, and new data shows older women have more spending power than ever – so why aren’t brands catching up? – Read More on the Telegraph
3. Israel Has Become the 1st Country to Ban the Sale of Most Fur Clothing: The Israeli government has banned the sale of fur in the fashion industry, becoming the first country to outlaw the controversial clothing material that opponents say leads to the slaughter of millions of animals each year. – Read More on NPR
4. RETRO READ: Fashion or Faux Pas? The Conversation About Fur Has Become Far More Nuanced. “Fashion companies can save a lot of money and increase their profit margins by making faux fur coats and selling them at a similar price to real fur coats. The motivation is money, not altruism.” – Read More on TFL
5. Gap’s stores are closing – Can Kanye West turn its fortunes around? Analysts have blamed Gap’s mega slump on its generic clothing and a failure to capitalize on the growing demand for its mainstay of casual wear – even in a year when almost everyone was wearing jogging bottoms and a hoodie. The brand has also been tarnished by its reliance on discounts to pull in shoppers. – Read More on the Guardian
6. Amazon Faces Possible $425 Million EU Privacy Fine: A European Union privacy regulator has proposed a fine of more than $425 million against Amazon.com Inc., part of a process that could yield the biggest-yet penalty under the bloc’s privacy law, people familiar with the matter said. – Read More on the WSJ