Daily LInks
1. The Complex Web of Production: The slippery slope may have started as a gentle decline, but things began speeding downhill this year at a breakneck pace. With the closure of airport stores run by fashion brands, such as Burberry, Prada, and Thomas Pink, along with other store closures worldwide, one of the oldest silk mills still in operation, Vanners Silk Weavers, saw their 30% decline spread over five years sharpen to a steep 70% drop this year alone. – Read More on Die Workwear
2. To Sell Luxury Online, Deep Pockets Matter More Than Ever: Big brands that have already poured cash into their e-commerce businesses are in the best position. The ideal setup for a luxury brand is to sell mostly on its own website, where margins are highest. But small labels that don’t have the money to build their own distribution system will find it harder to keep tight ownership of this important sales channel. – Read More on the WSJ
3. Authentic Brands plotting double takeover of Debenhams, Topshop-owner Arcadia Group: Authentic Brands, owner of the New York department store brand Barneys, Aeropostale, Brooks Brothers, and a handful of other brands, was in talks this weekend with the administrators of the two stricken British apparel companies. – Read More on Reuters
4. RELATED READ: Why Two Retail Giants Are Buying Distressed Mall Brands Out of Bankruptcy. Moody and Kass-Gergi note that at least “some competitors and other interested parties are already starting to quietly wonder whether the growing list of retailers under the Simon and Authentic Brands umbrella does or should at some point raise antitrust concerns,” which could prove interesting. – Read More on TFL
5. Just as Western consumers’ attitudes shifted and became more health-conscious in the wake of the Great Recession when green juices and expensive SoulCycle classes became the new indicator of luxury status, health is the new luxury in China: In preventative health, the world has come a long way since Jane Fonda first made aerobics a popular discipline in the early 1980s. Now, with a clear shift in cultural values, many consumers say they want to live healthier lives. – Read More on Jing
6. Ferrari’s next boss will need luxury credentials: Ferrari shares’ mind-boggling valuation of 45 times forward earnings rests on its cars’ status as a quintessentially Italian bling product, something former CEO Chief Executive Louis Camilleri understood well. During his time as CEO, he launched new models and kept a tight control on deliveries, with the aim of propelling Ferrari’s EBITDA margins from 33% towards Hermès International-like 38%. – Read More on Reuters
7. RETRO READ: When Should Your Company Speak Up About a Social Issue? It is impossible and impractical for companies and executives to speak out on every issue. Thus, the question for companies and C-level executives is when should you speak out? If you choose to do so, how should you prepare and position your response? – Read More on HBR
