Daily LInks
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
1. What Luxury Brands Can Learn from Bicester Village’s Secondhand Success: Pop-ups are proving the resale market is not only an opportunity for luxury brands to support long-term sustainable goals, but retain first-time buyers who may wish to sell secondhand items and ‘upgrade’ a first-hand good down the line. – Read More on Forbes
2. Ferrari Unveils First Fashion Collection: “Ferrari wants to champion Italian excellence and the best of our country’s creativity,” said Ferrari chairman John Elkann. “Today’s fashion show in our factory and the openings of the Ferrari store and the ‘Cavallino’ restaurant in Maranello are signs of a strong and optimistic Italy, ready for growth and renewal.” – Read More on Yahoo
3. RETRO READ: Ferrari to Cut its Licensing Deals in Half as it Looks to Move its Non-Car Offerings Up the Luxury Ladder. The automaker is significantly revamping its licensing strategy, one that has enabled it to transform the luxury appeal of its name into lucrative deals with third-parties, such as Tod’s and Oakley, which readily stamp the Ferrari name and prancing horse logo on leather loafers and sunglasses. – Read More on TFL
4. Burberry’s Stricter Climate-Change Target Puts Suppliers in the Spotlight: “Most apparel supply chains are genuinely very complicated. When you add in multiple countries, when you add in more layers, when you add in more complicated processes, it adds complexity…and it’s going to be more difficult to measure your emissions.” – Read More on WSJ
5. A Retail Crusader’s Eclectic Portfolio Is Giving Malls New Hope: Jamie Salter, the CEO of Authentic Brands, has partnered with Simon Properties to purchase struggling brands such as Brooks Brothers and Forever 21. He’s betting he can turn them around—and IPO. – Read More on Bloomberg
6. The Next Part of the Sustainable Fashion Conversation Will Be About Racial Justice: A sustainable reimagining of the fashion system will only be successful if the communities most closely connected to the environmental crisis are at the center of the solutions. The sustainability movement as a whole must reckon with the ways it has failed to understand its aims. – Read More on Vanity Fair
1. A secretive corner of the equity market: As the U.S. comes out of the pandemic, J.Crew’s shares have nearly doubled in value over the last three months. The company is now part of a shadowy group of retailers — including Neiman Marcus, JCPenney and Belk — that have gone through bankruptcy and now sit in a kind of ownership purgatory, with their equity held by a disparate group of former creditors. – Read More on Axios
2. Retail forecast raised with 2021 sales now expected to top $4.44 trillion: The National Retail Federation is now forecasting that retail sales will grow between 10.5 percent and 13.5 percent to reach more than $4.44 trillion. The NRF previously forecast growth of 6.5 percent to 8.2 percent. – Read More on MarketWatch
3. As retail prices rise, companies employ jargon to disguise it: Retailers sometimes absorb some of the price increases manufacturers demand, and the rest is passed on to shoppers. When prices do inevitably rise, as they’re doing now, manufacturers and retailers both take cover behind neologisms that Wall Street understands but Main Street sometimes doesn’t. – Read More on LA Times
4. Online wholesale marketplace Faire raises $260 million, valued at $7 billion: There are an increasing number of tech companies that are helping small and medium-sized businesses grow online, offering shipping, payment, e-commerce platforms and marketing services, and making it possible to sell outside of the Amazon marketplace. – Read More on Reuters
5. Jessica Simpson Fashion Brand Owner Preparing to Sell Assets in Bankruptcy: Sequential Brands is nearing a deal to sell its majority stake in the fashion line back to the singer and offload other assets as part of a potential Chapter 11 bankruptcy filing. – Read More on Bloomberg
1. Online Sales Exploded in 2020 – but Mostly for Retail Giants: Well-known brands like Amazon and Walmart won big last year, as consumers who were new to online retail largely turned to familiar, big-name brands, and larger companies were better able to handle supply chain and shipping issues that arose during the pandemic. – Read More on Inc.
2. India’s Covid crisis has ripple effects for garment industry worldwide: India makes up about 16 percent of textile imports to the U.S. and about 5 percent of apparel and accessories. While the country constitutes a smaller fraction of imports as compared to China, it still plays a significant role in certain sectors, including raw gems, which makes it difficult to move supply chains outside the country. – Read More on NBC
3. As people move out of big cities, fashion retail follows: “This is potentially one of the most significant dispersions of income, wealth and economic opportunity and economic activity in modern history. I really can’t emphasize it enough.” – Read More on Fashionista
4. RELATED READ: The RealReal Says Apparel Sales Are Growing, as Consumers “Revision” Their Wardrobes Post-COVID. TRR has seen a “bit of a geo shift” outside of New York City and Los Angeles – which accounted for about 40 percent of TRR’s supply units pre-pandemic – with “people in Connecticut, New Jersey, and even Long Island being a little bit more active than people in Manhattan,” which could reflect an enduring exodus from cities across the U.S. – Read More on TFL
5. Most startups spend way too much on branding: Startups that invest in branding too early can end up with a muddled design or one that doesn’t quite work for the long haul because they’ve skipped the step of fine-tuning their strategy. – Read More on Fast Co.
6. Lines between men’s and women’s fashion are blurring as more retailers embrace gender-fluid style: “Retailers and brands should be looking at gender-fluid apparel as an opportunity. It absolutely can’t be ignored. It will definitely be impacting the fashion trends of the future. And the retailers and brands that are doing it now are really going to be ahead of the curve.” – Read More on CNBC
1. Fashion e-tailer About You eyes 4 billion euro valuation in Frankfurt listing: The Hamburg startup will sell new shares worth 600 million euros via a private placement as part of the offering, and invest the proceeds in international expansion and in its business-to-business technology platform. – Read More on Reuters
2. Facing regulatory threats, Amazon ups its Q1 lobbying spending to all-time high: Seattle-based Amazon spent $5.1 million on lobbying in the first quarter, up 70% from $3.0 million in 2017, an all-time high as the company prepares for new potential regulations related to antitrust and other concerns. – Read More on S&P Global
3. What Business Leaders Need to Know About China Now: In China, when you go in to either trade with China or to invest in China, because as you say, it’s a huge prize, this giant market. You have to accept that the Chinese government will have not just an initial role, but an ongoing role as co-investor, as owner of IP, as a regulator, and they take that role very seriously. – Read More on HBR
4. Amazon scrapped arbitration, but that may not help consumers: Consumer advocates are cheering Amazon’s quiet decision to stop mandating arbitration for most customer disputes. The online retail giant, like other vendors, has heretofore included in its terms of service a ban on lawsuits. – Read More on Bloomberg
5. More than 1,300 department stores closed last year — here’s how malls are scrambling to survive: To evolve with consumer demands, some malls, even pre-pandemic, started transforming from places that provided goods to places that provided experiences. The pandemic only made this shift more urgent. – Read More on Grow
1. China’s Cautious Consumers Offer Clues for Post-Pandemic World: “Consumers are not necessarily cautious, but they are definitely more conspicuous. The long queues outside the luxury goods boutiques in China’s shopping malls seem to confirm this observation.” Also, sales of luxury cars have trumped those of middle-of-the-road options. – Read More on Bloomberg
2. Letter from gen Z: Thrifting is the future of fashion. Gen Z, in particular, has evolved the concept of thrifting, and there are three main factors driving this phenomenon: the input from brands, the role of influencers and the creation of experiences. Underpinning all this is the shift in terminology. ‘Secondhand’ and ‘used’ descriptors have given way to ones such as ‘vintage.’ – Read More on the Drum
3. May corporate bankruptcy filings fall to lowest monthly total in nearly 4 years: In May, 27 new corporate bankruptcy cases were filed, the lowest monthly total since July 2017. As of May 31, the year-to-date total was 210 cases, a lower figure than all but two of the prior 11 years — 2015 and 2014. – Read More on S&P Global
4. RELATED READ: A Running List of Fashion & Retail Bankruptcies. On the heels of an array of retail bankruptcy filings that began to unfold over the course of the year in 2016, New York-based designer Bibhu Mohapatra and retailers The Limited, Wet Seal, and Payless all made headlines when they filed for Chapter 11 protection in early 2017. They were swiftly followed by a handful of additional filings by other retailers. – Read More on TFL
5. Inside IKEA’s Digital Transformation: “The DNA of IKEA doesn’t change, and it’s important that it doesn’t. Operating model wise, it means we’re adding data, increasing speed, using analytics in all our decision-making.” – Read More on HBR
1. Rent the Runway’s business is up almost 100 percent compared to their Covid low: More customers are signing up for Rent the Runway’s subscription because they “want to consume more sustainably.” Hyman also talks about the decision to expand into the resale market in addition to their traditional rental model. – See More on Bloomberg
2. Clothes for the reopening: Brands like Athleta, Target, Wilson make a big bet that all-day workout wear is here to stay. While some look forward to again having occasions to get dressed up, the apparel industry is betting consumers won’t entirely give up the jogger pants, sweatshirts and other comfortable pieces that got them through the COVID-19 pandemic. – Read More on Chicago Tribune
3. Jimmy Choo on how Covid changed fashion and why he thinks we will dress up again: “As Covid slowly dies down, we will go back to the fashion runways. People like to hear the music and see the models. In digital, the feel is different. I think the real shows will come back.” – Read More on the WSJ
4. H&M’s online second-hand shop Sellpy launches in 20 more countries: The start-up handles the entire sales process from picking up the goods from sellers’ homes, to photographing, selling and shipping. The expansion will take its number of markets to 24 after it first launched in 2014 in Sweden. – Read More on Reuters
5. RELATED READ: ‘Pre-loved’ fashion moves from niche to mainstream as retailers join the fray: Research in the US, for resale site ThredUp, suggests that 70% of women were prepared to buy secondhand fashion in 2019 compared with 45% four years earlier. It predicts that the resale market will be bigger than fast fashion by 2029 as traditional charity shops sell more items and the for-profit resale market balloons. – Read More on the Guardian