Aug
 16
 2017



Ulrike

Hello,

Welcome back to The Spin! This week's takeover activities continue with the sale of Dutch fashion label Mexx. There's also the rising relevance of US Hispanic millennials, Jeff Bezos' induction into the Logistics Hall of Fame, and a look at how fake Instagram accounts can generate real sponsorship deals. Enjoy the read and feel free to share! Best, Ulrike



brands

Coming full circle. Dutch RNF Group has bought (paywall) Amsterdam-based fashion label Mexx from Turkish fashion firm Eroğlu Group. RNF owns shoe distributor Ferro Footwear and several fashion licenses. Eroğlu acquired Mexx in 2015 from private equity firm The Gores Group to expand the struggling brand into a fast fashion chain. The plan collapsed, and in 2016 sales of the former billion euro company fell to about €100 million. Between 2001 and 2012 Mexx was owned by US company Liz Claiborne.


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Hard landing. Following a smaller than expected sales forecast for fiscal 2017/2018, shares of US accessories maker Coach Inc dropped more than 13 percent. For fiscal 2016/2017 the company, which recently acquired shoe label Stuart Weitzman and handbag specialist Kate Spade, reported a 28 percent increase in net profits due to reduced promotional activity and cost reductions while sales remained at the previous year's level of $4.49 billion.





markets

Missing the mark. As major brands continue to pull back from department stores, the sector has to face the possibility that it might not be too big to fail. Over the past 30 years constant consolidation has shaped the industry, but the pool for potential takeover targets has all but dried up. Current strategies look more like patch fixes than serious game changers. Macy’s, for example, just reported its tenth consecutive quarter of lower comparable store sales, mostly caused by poor assortments and reckless promotional pricing.



Hailing Hispanics. About 40 percent of the 59 million Hispanics living in the US are millennials. These 18- to 32-year-olds control a large part of the US Hispanics' $2 trillion purchasing power, making them a serious driving force in the US economy. These customers can easily be reached on social media, since they are more active on Facebook and Instagram than non-Hispanic millennials and don’t hesitate to openly discuss brands and purchases.



Challenging China. The Chinese Ministry of Commere won't sit back, if the US starts an investigation into whether Chinese firms steal the intellectual properties of American companies. US Trade Representative Robert Lighthizer will investigate Chinese government practices that may harm American intellectual property, reigniting fears of a possible trade war. China vowed to defend its interests but did not yet specify the steps it might take.





people

High honors. Amazon founder Jeffrey Preston Bezos has been elected to the Logistics Hall of Fame. The computer scientist and online pioneer is being honored as a revolutionizer of eCommerce and logistics making Amazon a benchmark for the sector as a whole. His official induction will be on November 9 during a ceremony at the annual Logistics Hall of Fame gala in Berlin, Germany.



Turning tides. As soon as Under Armour CEO Kevin Plank quit the White House Manufacturing Council in response to President Donald Trump's slow response to white supremacist violence in Charlottesville, angry Trump supporters started calling for a boycott of UA products on social media. Walmart CEO Doug McMillan agrees that Trump missed an opportunity to bring America together. Trump responded that for every CEO that leaves he has many to take their place. Both executives had originally supported Trump.





last

The girl that wasn't there. On her Instagram profile, beach blonde influencer Alexa Rae aka calibeachgirl310 claims to be free as the ocean. The cool California girl has 51.4 thousand followers, published 74 posts and follows 44 other accounts. The only problem: She doesn’t exist. The case of the invented influencer shows how a fake account coupled with purchased followers and paid-for engagement can secure very real sponsorship deals.







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