THE CHEAT SHEET

TikTok in Trouble

Beauty brands were first to strike it big with TikTok challenges, but fashion is catching up| Collage by MC Nanda for BoF

• President Donald Trump has set a November deadline for TikTok's China-based owner, ByteDance, to sell the social media platform or shut it down
• TikTok's CEO resigned last week; Walmart and Microsoft are reportedly teaming up on a bid
• Fashion has rapidly adopted TikTok as a marketing tool, with the platform's young stars appearing at fashion shows and in campaigns

The Bottom Line: Whatever the outcome of the negotiations with the Trump administration, TikTok, or at least, the platform's underlying concept, appears here to stay. Brands looking to resonate with Gen-Z will need to adjust their marketing strategies accordingly.

J.Crew Gets a New Lease on Life

A J.Crew campaign from 2013 | Source: Courtesy

• J.Crew has reached an agreement with creditors that could allow it to exit bankruptcy as soon as this week
• The retailer will swap $1.6 billion in debt for equity and renewed access to credit
• Neiman Marcus, J.C. Penney and Ann Taylor owner Ascena are among the other brands working through the bankruptcy process

Covid-19 Returns to Europe, Just in Time for Fashion Week

Chanel Autumn/Winter 2020 show at Paris Fashion Week | Source: Getty Images

• France is reporting thousands of new coronavirus cases per day, the most since lockdowns were lifted in May
• A Paris Fashion Week schedule is expected this week; Louis Vuitton and Chanel are among the brands planning runway shows, though they have not made a decision on live audiences
• On Friday, Première Vision cancelled the physical portion of its trade show, set to take place in Paris on Sept. 15-16

The surge in new Covid-19 cases in France, and potentially Italy, is a reminder that the coronavirus crisis was never really "over," even as many countries appeared to bring the pandemic under control. The timing could not be worse for luxury brands, which are planning to show up in force for fashion weeks in Paris and Milan in the second half of the month. Legally, events with under 5,000 people can proceed in France, clearing the way for conventional runway shows, in stark contrast to the US, where audiences at the few in-person New York Fashion Week shows are limited to 50 people in some cases.

Whether that remains the case if the current infection rate continues is an open question. Many international invitees were already nervous about hopping on a flight to attend shows that are no longer so important from a financial perspective that they warrant risking one's health. Americans may be unable to attend at all, given restrictions on most travel between Europe and the US.

The Bottom Line: Barring a return to the dark days of March and April, brands are unlikely to abandon their plans for September. The digital shows clearly aren't getting the job done. And many labels showing in Paris have the marketing budgets and savvy to compensate for smaller crowds and safety measures.

SUNDAY READING

Professional Exclusives You May Have Missed: 

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• The case for opening a new store right now.
• What to expect from NYFW this season.
• Where do independent fashion brands go from here?
• Why aren't more Chinese department stores going bankrupt?

The Week Ahead wants to hear from you! Send tips, suggestions, complaints and compliments to brian.baskin@businessoffashion.com. 

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