The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
THE CHEAT SHEET
What Will Raf Simons Bring to Prada?
Miuccia Prada and Raf Simons, the co-creative directors of Prada | Source: Courtesy
The Bottom Line: Prada is likely a better fit for Simons than his last gig. Where Calvin Klein was banking Simons would lead a creative and commercial resurgence, Prada's multi-year turnaround had already begun to bear fruit before his arrival.
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TikTok Avoids a Ban, But Not WeChat
The Trump administration is pressuring TikTok owner ByteDance to sell the social media platform | Source: Shutterstock
TikTok, along with its 10-second makeup transformations and Gucci challenges, came within hours of being banned in the US this weekend. The Trump administration had ordered a ban on US downloads of the popular app, only to reverse course shortly before the deadline. Going forward, Oracle and Walmart will be minority owners in a new company called TikTok Global, with Oracle hosting US user data, a key point of concern. Walmart, meanwhile, gets a leg up in reaching Gen Z customers; it says it will bring "retail capabilities" to the app.
The WeChat ban, overshadowed amid the TikTok drama, theoretically remains in place, though the app appeared to still be available in Apple's store Sunday morning. WeChat's fate may be more consequential for fashion in the long run. Sales by Western brands in the US via the service are minimal, but the app is all-important for reaching consumers in China itself. With US-China tensions continuing to worsen, it's not hard to imagine scenarios that do interfere with international commerce.
The Bottom Line: Sunday's bans only apply in America, but they inject fresh uncertainty into how the industry should approach its fastest-growing market.
Fashion Faces Pressure to Protect Garment Workers
Garment workers in Bangladesh | Source: Getty Images
For months brands and retailers have been dogged by a hashtag they'd rather not deal with: a call to #payup for orders cancelled or delayed as a result of the coronavirus crisis. The sudden pullback from manufacturers as the fashion world attempted a panicked response to the pandemic has caused havoc down the supply chain, leaving many garment workers facing a grim reality of missed wages, unemployment and destitution. The campaign has been unusually successful. Its organiser, advocacy group Remake, estimates it unlocked around $22 billion globally. Brands including Gap, Levi's and Primark have made commitments in response to its efforts.
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The Bottom Line: The campaign to pay for cancelled orders was a success, but in some ways, it was easier for brands to capitulate on a one-off response to a fast-moving crisis. Forcing change on problems that have dogged supply chains for decades will be a longer, more difficult fight.
-Sarah Kent contributed this item
SUNDAY READING
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The luxury goods maker is seeking pricing harmonisation across the globe, and adjusts prices in different markets to ensure that the company is”fair to all [its] clients everywhere,” CEO Leena Nair said.
Hermes saw Chinese buyers snap up its luxury products as the Kelly bag maker showed its resilience amid a broader slowdown in demand for the sector.
The group’s flagship Prada brand grew more slowly but remained resilient in the face of a sector-wide slowdown, with retail sales up 7 percent.
The guidance was issued as the French group released first-quarter sales that confirmed forecasts for a slowdown. Weak demand in China and poor performance at flagship Gucci are weighing on the group.