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
The Social Media Explosion
Instagram posts by Chanel, Gucci and Louis Vuitton | Collage by BoF
As for this week's results, Facebook rarely offers more than a fleeting glimpse at Instagram's performance. Pinterest could potentially offer a Snapchat-like surprise (investors certainly think so, as the company's stock is up 10 percent since its rival's surprisingly strong earnings report last week). The platform has taken steps to build its fashion cred, including courting style influencers and introducing shoppable "pins."
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The Bottom Line: The most consequential social media news may come out of Washington rather than Menlo Park. The Federal Trade Commission is reportedly close to deciding whether to pursue an antitrust case against Facebook. Coupled with the Justice Department's recent antitrust action against Google, an FTC case has the potential to reshape the entire online economy.
Should Retailers Fear More Lockdowns?
A Louis Vuitton store in Paris during lockdown earlier this year | Photo: Daniel Korkhov
In Jaws, the mayor of the resort town being terrorised by a great white shark nevertheless opposes shutting down the beaches at the peak of the summer tourist season. We all know how that turned out. Politicians across the US and Europe are grappling with the same choice: Coronavirus cases are surging, but the holidays are approaching and many businesses are still reeling from the last round of lockdowns.
For now, there appears to be little appetite for closing stores again, even in Covid-19 hotspots. Officials are instead pinning their hopes on a vaccine, and arguing that the cost of another round of blanket lockdowns would be too high (and potentially ineffective, as the virus would almost certainly return as soon as stores reopen). The debate may not matter for retailers. A growing body of evidence shows that where cases are spiking people stay away from stores regardless of official orders.
The Bottom Line: Retailers are preparing for more lockdowns, and the changes they make will serve them well even if they aren't forced to close stores. Consumers were already shifting their holiday spending online before the pandemic, and brands that invest in e-commerce and clever order fulfilment methods will benefit from what is likely to be a mostly digital Black Friday this year.
SUNDAY READING
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TikTok’s first time sponsoring the glitzy event comes just as the US effectively deemed the company a national security threat under its current ownership, raising complications for Condé Nast and the gala’s other organisers.
BoF Careers provides essential sector insights for fashion's technology and e-commerce professionals this month, to help you decode fashion’s commercial and creative landscape.
The algorithms TikTok relies on for its operations are deemed core to ByteDance overall operations, which would make a sale of the app with algorithms highly unlikely.
The app, owned by TikTok parent company ByteDance, has been promising to help emerging US labels get started selling in China at the same time that TikTok stares down a ban by the US for its ties to China.