Daily LInks
1. Can fast fashion’s $2.5 trillion supply chain be stitched back together? Supply chains will be different in the future. Clients are already trying to shorten the time it takes for an ordered shirt to arrive in shops, boosting their flexibility in the face of demand shocks. “The last couple of weeks have shown the vulnerability of the supply chain . . . and accelerated the realization that you need to be closer to the source.” – Read More on the FT
2. Fate of Luxury Depends on China, But Continued Success There is Not Guaranteed: In 2019 Chinese consumers alone accounted for 90% of the growth in the personal luxury goods market or some €19 billion ($21 billion) in sales. They also generated 35 percent of global luxury spending. – Read More on Forbes
3. This breakdown of retail sales data shows why Amazon is leading the stock market: “In typical Internet fashion, a winner-take-most model played out with Amazon now accounting for 40 percent of US [gross merchandise volume].” In the first quarter, Amazon’s net sales jumped 26 percent year over year to $75.5 billion. Meanwhile, on April 23 Target said digital sales were up 275 percent month-to-date. – Read More on CNBC
4. Jessica Simpson, Heelys Brand Owner Casts ‘Going Concern’ Doubts: Sequential said it has enough cash to cover its operating expenses for at least a year, but can’t determine the full impact of the pandemic as retail sales in the U.S. plunge to record lows. Many retailers that carry Sequential’s brands were closed in March, April and May, denting revenues for the licensing company. – Read More on Bloomberg
5. RETRO READ: How Jessica Simpson Quietly Built a Billion-Dollar Fashion Brand. The market for celebrity fashion brands has proven a crowded one over the years, with most collections tied to famous figures fizzling out with the same frequency as they appear. How exactly did Simpson manage it? One branding expert says it has to do with the star’s ability to connect with real consumers on a real level. – Read More on TFL
6. Gucci and Louis Vuitton Reopen, but Their Best Customers Are Stuck at Home: With Chinese shoppers forced to stay at home, luxury spending inside China has surged. But luxury companies say that overall spending by Chinese customers is down when compared with their pre-pandemic shopping inside and outside the country. – Read More on the WSJ
