Jul
 25
 2019



Christopher

Hello,

Welcome to today's edition of The Spin. The financial figures being released by luxury labels this week have all been good thus far and show that Chinese customers are still very keen on these brands. And in our second consecutive story about the ills of influencers, a new study says that using them is collectively causing companies to throw more than $1 billion out the window per year. (Eek!) There's also going to be a reel about Ralph and the state of retail in the UK just sounds bleaker and bleaker. I hope it's an informative read. Best, Christopher



brands

Loving luxury. Both LVMH and Moncler posted their Q2 results yesterday and both were positive, proving that the luxury market overall is still quite healthy. Sales for the quarter across the entire LVMH group were up 15 percent thanks to intense demand for its products in China. On Tuesday Hermès also posted strong numbers boosted by good sales in China. LVMH rival Kering releases its financial report for the period today.



Phew! (thinks Pepe). Spain's Pepe Jeans Group, which owns Pepe Jeans, Hackett and Façonnable and distributes Tommy Hilfiger and Calvin Klein in Spain, has received the okay from its creditors to refinance its €230 million worth of debt. It will now be due in five years. Pepe says it plans to use the lifeline and accompanying increase in equity (paywall; translated by Google) to grow its brands, digitize and better adapt to a continuously changing business environment.



West's request. It seems that Kanye West is aiming to launch another fashion brand. His holding company has requested that the US Patent and Trademark Office grant him a trademark for the phrase "Sunday Service" so that he can sell clothing, footwear and some accessories under the name, which comes from his recent church-like events where he appears with a gospel choir. At the one at Coachella on Easter Sunday he hawked socks and sweaters emblazoned with messages such as "Jesus Walks" and "Holy Spirit," which caused some to call him out as a "real Prophet for Profit."



#ConArtists. In yet another indication that marketing via influencers is probably no longer the best route for brands, a new study estimates the cost of influencer fraud – wherein the person's followers are actually fake – and the number is staggering. It says that this deception will cost advertisers $1.3 billion in 2019 and $1.5 billion next year. Brands are estimated to spend $8.5 billion on influencer marketing this year so that's roughly 15 percent that goes directly down the toilet...





people

(Re)joining the Navy. Nancy Green, who currently serves as president of Gap Inc.'s Athleta brand, is transferring to another one that's owned by the retail conglomerate. She has been appointed president and chief creative officer of Old Navy, where she previously held the roles of executive VP, chief creative officer and interim co-leader in 2012 prior to joining Athleta the following year. She'll re-board the Old Navy ship early next month.



Designer documentary. Ralph Lauren is the subject of a full-length documentary film that will premiere on HBO on November 12. "Very Ralph" is directed and produced by award-winning filmmaker Susan Lacy and will look at Lauren's childhood in the Bronx and his 60-year career in the fashion business. Lacy tapped numerous big name industry insiders to be interviewed for the project including Anna Wintour, Calvin Klein, fashion critic Robin Givhan and the late Karl Lagerfeld.





markets

Down, down, down... Demand for commercial property in London continues to fall and thanks to the ailing physical retail sector there – the entire UK has shed (paywall) about 72,000 retail jobs in the last year according to new figures – it now stands at minus 61 on the demand gauge. However, not surprisingly, the call for industrial commercial spaces that could be converted into warehouses for online retailers has risen.





retail

Delivery debut. In a direct affront to Amazon, eBay will launch a new fulfillment service next year that will give sellers access to storage, packing and shipping services and therefore speed delivery times. Called Managed Delivery, it will only be available to high volume sellers and is meant to compete with Fulfillment by Amazon, a similar service that is already up and running. Managed Delivery is currently being trial tested in the US and Germany.







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