Daily LInks
1. Great Fortunes Are Built on Great Tech. Or Handbags and Bubbly: One thing all five men at the top of Bloomberg’s Billionaires Index, including LVMH chairman Bernard Arnault, excel at is building moats around their businesses, differentiating their products and creating reputations for excellence that allow them to stave off competition and protect their profit margins. – Read More on Bloomberg
2. Rebecca Minkoff Makes Some Items Available to Rent Without a Monthly Subscription: Even before the pandemic, retailers were experimenting with tactics like options to buy now and pay later, selling secondhand items and live shopping events on social media, an approach that gained more traction during lockdown. Rental services are another one of those strategies. – Read More on the WSJ
3. Richemont’s perfect match has luxury price tag: Chairman Johann Rupert acknowledged that the $60 billion owner of Cartier had been approached by several suitors. Rupert has plenty of options, but the deal that makes the most sense will require a big concession. – Read More on Nasdaq
4. Where Fashion Stands with Asian Representation in the C-suite: The Asia Society survey also identified a pattern in corporate America where executive ranks had a significantly smaller percentage of Asian leaders in proportion to the overall number of Asian employees at the company. – Read More on Yahoo
5. Shoppers go back to stores, but retailers face challenges: The return to store shopping, highlighted in many retailers’ earnings reports in recent days, offers a big relief in part because shoppers return less when they make their purchases at the store — 8% compared with 25% for online, according to Forrester Research. And store customers tend to do more impulse buying. – Read More on AP News
1. Bezos Says Retail Is Much More Competitive Than Phone Market: “Consumers can shop at dozens of large national retailers, hundreds of regional retailers, hundreds of thousands of small retailers, both online and in-store. It’s a very healthy industry, and it’s far from a winner-take-all situation, and we’re still a small fraction of retail.” – Read More on Bloomberg
2. As masks fall out of fashion, Etsy sellers ask themselves, ‘now what?’ Last year, the pandemic turned face masks into a wardrobe staple. Sellers big and small benefited from the trend. Etsy said cloth masks had erupted into the hottest new product category on its platform last summer. In August, the company said 110,000 sellers on its marketplace had sold as many as 29 million face masks, totaling $346 million. – Read More on CNN
3. Michael Kors parent expects sales growth as luxury demand rebounds: Demand for luxury apparel and bags has rebounded as people resume traveling and begin to socialize after being stuck at home for more than a year, while a big stimulus program in the U.S. is expected to boost spending in the first half of the year. – Read More on CNBC
4. Chinese Shoppers, Stuck in China, Revive Local Malls: In 2019, Chinese consumers spent around €64 billion, or the equivalent of $77.3 billion, on luxury goods when traveling abroad, or more than twice the amount they spent at home in mainland China, according to Bain-Altagamma 2020 Worldwide Luxury Market Monitor. – Read More on the WSJ
5. RETRO READ: How a Decline in Chinese Tourists Around the World Has Hit the Luxury Sector. The coronavirus pandemic has not reduced the luxury appetite among China’s wealthy post-90s generation to travel and spend. A survey from April this year found that almost 60 percent of this group who had delayed their purchase plans would return to spending once the outbreak was over in China. And a number of luxury businesses reported a big rise in spending following the easing of lockdown restrictions in China, including jewelry brand Tiffany and fashion house Burberry. – Read More on TFL
1. American Luxury Is Finally in Vogue: Shares in Tapestry, the New York-listed holding company for labels including Coach and Kate Spade, are up 40% since the start of the year, while Michael Kors-owner Capri has gained 27%. That puts both stocks ahead of big European peers such as Hermès, LVMH Moët Hennessy Louis Vuitton and Gucci-owner Kering. – Read More on the WSJ
2. How “Buy Online, Pick Up In-Store” Gives Retailers an Edge: Customers are unlikely to go back to their old ways of shopping. As such, the “Buy Online, Pick Up In-Store” model may be a way for retailers to stay relevant in the post-pandemic world, as it provides many of the advantages of online shopping without many of the downsides of other types of digital shopping experiences. – Read More on HBR
3. Can Fabric Waste Become Fashion’s Resource? Fabric waste is rampant across the supply chain. Cheap, low-quality clothing fueled by demand for “fast fashion” has made what we wear disposable. Luxury brands must maintain an image of scarcity and exclusivity while still committing to bulk fabric orders, leading to an accumulation of unused material. – Read More on Working Knowledge
4. Forever 21 Owner Authentic Brands Plans IPO This Year: Authentic Brands Group LLC, the owner of brands such as Brooks Brothers, Juicy Couture and Forever 21, is exploring going public as soon as this year, according to people with knowledge of the matter. – Read More on Bloomberg
5. RETRO READ: Why Two Retail Giants Are Buying Distressed Mall Brands Out of Bankruptcy. “As a result of SPARC’s acquisition of these retailers, Simon – the largest shopping mall operator in America – is able to better control the occupancy rates at its shopping centers, helping to ensure their continued viability, while Authentic Brands benefits by having its retail business partner also be the landlord of many of its brick-and-mortar store locations.” – Read More on TFL
1. Uniqlo Made a Bet on Comfortable Bras. Now It’s Paying Off: Fast Retailing declined to disclose details on Uniqlo’s innerwear sales, but said the wireless bra was among the top 30 selling products in most of its markets. It’s also the fastest-growing product in the last decade within the women’s underwear segment. – Read More on Bloomberg
2. The Secret Psychology of Sneaker Color: Repetition is how you win the color game. You may see Volt and recoil, but you’ll always think “Nike.” As colors go, it is a paradigm for brand marketing. “We did a complete technology innovation study about how color showed up on HDTV and sports tracks,” said Martha Moore, a Nike vice president and creative director. “We were studying the idea of speed and what color complemented that in the vibration of the human eye.” – Read More on the New York Times
3. Reading the State of Retail in Fashion’s Quarterly Reports: As the world opens back up, most expect consumers to change again, rolling into the future instead of reverting back to where they were in early 2020. But as shoppers evolve, they are starting from an outlook that’s been shaped by a year spent closer to home for many. – Read More on Yahoo
4. From Signature Colors to Upcycling: Luxury Packaging Is Often More Powerful Than the Products. “The average consumer may not see that it’s custom, but you want to create something that no one else can copy.” In other words, pick a color that’s complex enough that it’s costly for copycats to profitably replicate en masse. – Read More on Robb Report
5. RETO READ: How Difficult is it to Successfully Claim a Color as Your Trademark? Being world-famous is not enough in many cases. Counter the CJEU’s decision in the Louboutin case with an April 2017 decision from the U.S. Patent and Trademark Office’s Trademark Trial and Appeal Board, which held the cereal giant General Mills cannot claim exclusive rights in its Cheerios yellow. – Read More on TFL
1. China Disappeared H&M From Its Internet, Splitting Fashion Industry Group: Western businesses with supply chains in Xinjiang walk a fine line. Companies are trying to avoid Beijing’s ire and at the same time take seriously allegations from human-rights groups and the U.S. and U.K. governments that authorities are committing genocide against ethnic Uyghurs and using forced labor in the northwestern Chinese region. – Read More on the WSJ
2. Gen Z’s Used Clothing Hacks Won’t Save the Earth: While #thrifthaul and #knitting have a not-insignificant 456 million and 478 million views respectively on TikTok, #Sheinhaul — in which users showcase purchases from the ultra-cheap, ultra-fast fashion store SHEIN — has 2.3 billion. Fast fashion continues to grow in sales and popularity. – Read More on Bloomberg
3. “The gaming universe can bring luxury brands to life.” Can a luxury brand easily convert its fans from metaverse to reality? “It is already the case in Southeast Asia. Gamers are waiting for digital purchases to be transformed into physical purchases … People’s desires and what they play with in their video games appear in the physical world as well.” – Read more on Luxury Tribune
4. Are Hermès, Dior and Louis Vuitton goods too cheap? Luxury labels are losing billions of dollars by failing to include the brand story in the sticker price. It is never a single product that creates extreme value. When brands create extreme value, they do it through their brand story and exceptional experience. This story-driven value component is critical for luxury brands. – Read More on SCMP
5. RELATED READ: What Do Luxury Brands’ Inflating Prices Mean for Them & for the Industry at Large? In terms of the potential for price increases going forward, brands like Hermès, Dior and even Cartier (despite the aforementioned issues) lead the pack in terms of an “unrealized pricing upside,” which Bernstein measures by combining high consumer demand, vibrant organic growth, and limited price increases in the recent past. On the other hand, Bulgari, Prada and Longines show limited potential based on these same metrics. – Read More on TFL
6. The Hidden Cost of Cheap Fashion Could Catch Up to Investors: For now, there is no direct threat of a regulatory crackdown. The fashion sector’s long supply chain cuts across multiple countries and sectors, including petrochemicals for fiber manufacturing, making it more complex for governments to rein in. – Read More on the WSJ
1. Banks are more ESG aware but struggle with data: A poll showed that respondents pointed to a lack of resources and education, along with difficulty measuring environmental and social progress, as the biggest challenges to putting together ESG programs. – Read More on S&P Global
2. Going green steals show for fashion industry: More than 67% of consumers said they pay attention to sustainable fashion products, while 26% would buy such products, according to a survey in 2019 by the China National Textile and Apparel Council’s Office for Social Responsibility. Only 2% said they were not interested in sustainable products. – Read More on China Daily
3. “Fashion Cannot Survive Long in an Exclusively Virtual Form”—Giorgio Armani Is Returning to the Physical Runway: “I believe there will be a return to physical shows, turned into digital experiences for the global audience. I imagine more intimate but exciting events, and in general a great freedom of expression, and this is something very positive. I believe that ‘less but better’ is the way to go, in all fields, not last as a sign of respect for the planet.” – Read More on Vogue
4. Afterpay To Debut See Now, Buy Now At New York Fashion Week: One of the main frustrations of watching NYFW shows unfold was the consumer who was watching could see things they absolutely wanted to buy right then. But unless the consumer also happened to be a corporate buyer, what was visible on the runway wasn’t for sale — and wouldn’t be in stores for several months at a bare minimum. – Read More on PYMNTS
5. How NFTs can help luxury brands reach young HNWIs: With NFTs having already attracted a global interest, luxury brands can now use these tokens to find new ways of telling their story and interacting with their clientele. Today’s wealthy consumers want to understand the story behind the products they buy, and for these products to spark a connection between them and other like-minded individuals. – Read More on The Drum
1. Three Very Different Retailers and What They Say About the U.S. Consumer: Referring to the entire apparel industry, Credit Suisse analyst Michael Binetti wrote: “We remain bullish on US apparel category sales through back to school and holiday 2021.” – Read More on Barron’s
2. European Companies, Flush with Cash, Turn to Stock Buybacks: This year has seen a slew of companies in Europe putting forward share repurchase programs, including luxury house LVMH Moët Hennessy Louis Vuitton SE, personal care company L’Oréal SA and oil major Eni Around 56 firms have released plans to buy their own shares so far in 2021. – Read More on the WSJ
3. Transparent fashion: Would you pay to know how your clothes are made? Transparency is largely the antithesis of what has helped turn the fashion industry into a $2.4 trillion business in recent decades. The sector has drawn increasing criticism for generating profits that have come at a cost further down the supply chain, which often went unseen. – Read More on CGTN
4. JD.com beats market expectations as COVID-19 boom persists: Net revenue at JD.com, China’s largest e-commerce company by revenue, rose 39% to 203.2 billion yuan ($31.57 billion) in the quarter ended March 31, topping analysts’ average estimate of 191.83 billion yuan, according to IBES data from Refinitiv. – Read More on Reuters
5. RELATED READ: With New Louis Vuitton Partnership, JD.com Inches Forward in $54 Billion Fight of Chinese Luxury Buyers. The partnership is “a creative way for Vuitton” – which sells exclusively through its own stores and e-commerce sites – “to increase its online reach in China, and deliver further growth for the brand,” all without being to a lack of control that comes with listing on a third-party platform, something that most luxury brands have traditionally shunned. – Read More on TFL
1. Walmart’s sales jumped 6 percent in the first quarter, driven by e-commerce: The question now is whether Walmart can continue its pace of growth as shopping habits start to normalize. Walmart CEO Doug McMillon said although the second half of the year “has more uncertainty than a typical year, we anticipate continued pent-up demand throughout 2021.” – Read More on the New York Times
2. Teeth Whiteners and Travel Bags Are the New Reopening Trade: With pandemic restrictions easing and life starting to return to normal, people just want to get out and shop the way they used to. If hot tubs, home cinemas and Peloton bikes were some of the best-sellers during lockdowns, a raft of more outward-facing consumer categories is starting to take their place. – Read More on Bloomberg
3. Shein overtakes Amazon as the most installed shopping app in US: The fashion retailer’s ascent is quiet because the startup, despite reportedly exceeding a $15 billion valuation, maintains an unusually low profile and doesn’t try to make itself known to the media. – Read More on TechCrunch
4. This start-up is making digital passports… for clothes: As well as reselling products, the digital ID makes it easier to repair them with the correct materials, or to recycle them when they reach the end of their lives. This approach should result in less landfill. – Read More on World Economic Forum
5. Luxury Fashion Brands Turn to Gaming to Attract New Buyers: Brands want to position themselves at the center of an industry that made $175 billion in 2020, one with an increasing number of women. A 2020 report from the Entertainment Software Association found that women account for 41 percent of all gamers in the U.S. – Read More on Wired
1. Facebook Helps Zara Owner Sell Clothes Using Video Games: Inditex is responding to the shift from physical stores to online sales by teaming up with Facebook and Instagram to develop “Pacific Game” to attract younger buyers to its Pull & Bear brand, and it’s not about clinching a direct sale but building a relationship with younger customers. – Read More on Bloomberg
2. If 2021 kills fast fashion, Hong Kong’s garment industry could come back to life: Once a major employer and trade component of Hong Kong’s economy, the remains of the rag trade is still deeply rooted in Kowloon. Imported fast fashion is fast becoming old fashioned, opening up opportunities for Hong Kong to re-establish itself as Asia’s fashion hub. – Read More on SCMP
3. China says retail sales grew 17.7% in April, missing expectations: Retail sales rose 17.7% last month from a year ago, the National Bureau of Statistics said Monday. That missed expectations of 24.9% growth in April, as “employment, household income, consumption, manufacturing investment, (the) service sector and private firms have yet to come back to the pre-Pandemic level.” – Read More on CNBC
4. Shoppers already love Chinese brands — they just don’t know it yet: The “Made in China” of cheap, brandless, low-quality stuff is ending. Chinese companies are flocking into overseas markets, but with a twist: Many of their devoted customers don’t know they’re from China. – Read More on Protcol (via Redef)
5. 1stdibs.com files for Nasdaq IPO: New York-based 1stDibs.com, which sells luxury goods like diamond accessories and vintage paintings, could seek a valuation of more than $1 billion. Its backers include Benchmark Capital, Insight Partners, T. Rowe Price Group Inc., Spark Capital and Index Ventures. – Read More on Bloomberg
1. Fashion is adapting for a post-pandemic lifestyle: As sales begin to tick back up, both men and women seem to be moving on from their lockdown looks, but aren’t simply snapping back to their pre-pandemic tastes. Businesses have been “extraordinarily cautious” about their inventory, and are now trying to pin down the post-pandemic market at a time when they can’t afford much experimentation. – Read More on Axios
2. Global luxury brands stand a better chance of weathering China’s nationalistic consumer fervor, says Credit Suisse: While young consumers are drawn by the local brands’ stronger digital and marketing capabilities, “the brand strength of international high-end brands remains high [in China], and this is because they are long-established and they have relatively better quality products.” – Read More on SCMP
3. RETRO READ: A Look at the Changing Habits of the Chinese Luxury Consumer. Chinese consumers – in a shift away from heavily branded goods to more discreet status symbols – have looked to lesser known names. As a result, “niche high-end brands, as well as bespoke products, are becoming new drivers of luxury consumption.” – Read More on TFL
4. For a number of retailers without a strong online presence, the pandemic presented a unique challenge. Stores like Aldi, TJ Maxx, Costco, Dollar General, and others depend heavily on in-person sales: Despite lower foot traffic, many of these retailers not only survived the pandemic, but are now expanding. – Read More on Qz
5. What Does Slow Fashion Actually Mean? Some brands are pushing back against mass-market retailers’ motto that “more is better,” and focusing more on “slow fashion,” producing clothes with trendless designs and premium, long-lasting quality. – Read More on Forbes
6. Ferraris for the people: luxury goods now sold in fractions. With fractional ownership, there’s no chance of hanging the painting in a buyer’s home, parking a Lamborghini in their garage or storing six bottles of Romanee-Conti wine in their cellar. But by owning at least a piece of the property — at least on paper, like the shares of a publicly listed company — anyone can now directly benefit from an increase in the item’s value, just like a wealthy collector. – Read More on France24