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ANZEIGE



 Aug
 13
 2019



Caroline

Hello,

Welcome back to this new day at the Spin. All eyes are on Asia. Chinese celebrities are cutting ties with global brands that don't respect the One China concept. Meanwhile Hong Kong protesters are keeping up the demonstrations against mainland China and Wall Street is reacting nervously. In other parts of the world Nike has entered the subscription business and Amazon gets a little closer to delivering goods by drone. Enjoy the read. Best, Caroline.



markets

One China outcry... Donatella Versace was the first to apologize, then Coach, Givenchy, Asics, Calvin Klein...followed . suit. The global brands are all begging the pardon of their Chinese customers for having implied on their websites and T shirts that Taiwan and Hong Kong were independent countries. The brands have been caught up in a wave of nationalism on Chinese social media that claims there to be but one China, as represented by Beijing.


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...Hongkongers occupy the airport. Meanwhile protests in Hong Kong are now entering their third month and disrupting (paywall) one of the world's busiest airport. The demonstrators are making an impact on the tourism industry. Hong Kong, which is also battling the headwinds of a US China trade war, suffered a 0,3% economic contraction in the 3 months to the end of June. The trade war anxiety also reflected on Wall Street: yesterday the Dow slid almost 400 points.



Empty shops. Great Britain's empty shops hit their highest rate of vacancy in 4 years as of July. The national town center vacancy rate registered 10,3% last month, according to researcher Springboard's survey. Shopper footfall fell by 1,9% and it was even more dismal in shopping centers: -3,1%. The only good news: retail parks recorded a 1,2% growth. These bad statistics confirm signs of slowing households demand, which until now had held up well.



Three in charge. The 3 managing directors of indie denim label Closed are buying back (paywall, translated by Google) their shares from investment fund Genui after a 5 year partnership. The German company, specialized in jeans handmade in Italy, earns (paywall) more than $110 million in revenue. Their objective: build more international sales. Closed was launched by the French creator Francois Girbaud, the developer of the stonewashed technique.





retail

Nike joins the club... Nike, the number one sneaker retailer in the US, is entering the subscription business for juniors via the Nike Adventure Club. Parents with kids ages 2 to 10 can now order shoes on a quarterly, bimonthly or monthly basis. It turns out that the kiddie sector is the fastest growing category on Nike.com and so the company has been studying the trend for 2 years. The subscription model has a big advantage inasmuch as it is a new source of recurring revenue.



...of subscription models. Nike is late to the subscription game. Rent the runway, Rebecca Taylor, Vince Unfold, WalMart's Kidbox and Amazon's Prime wardrobe are already big fans of subscription and rightly so. According to consultant McKinsey, the subscription ecommerce market has grown by more than 100% annually since 2013. Young customers are used to the rental model, thanks to Netflix, Airbnb and others. They are also sensitive to sustainability and renting implies recycling.





tech

Last mile option. Amazon is seeking the green light from the FAA (Federal Aviation Administration) to begin drone delivery in the US. If the federal agency accepts, Prime Air Service would be able to deliver 5 pounds packages within 30 minutes via drones. The e-commerce giant is not the only one betting on this technology for the last mile delivery. UPS contacted the FAA last month to do the same and in April Alphabet obtained the right to test its own drones in Virginia.





brands

The good doc. Dr Martens' spin on its iconic silhouettes has been lucrative. For its 2019 fiscal year, revenues climbed 30% to £454,4 million and EBITDA vaulted 70% to £85 million. Vegan boots were quite the success, as were their collaborations with the Sex Pistols and designer Marc Jacobs. The British brand, beloved in the 60's by Skinheads, is now worn by the likes of David Beckham, Gigi Hadid, Pharrell Williams and Julia Roberts. The Doc is still a bit of a rebel.







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