Weekly News Roundup: Lululemon, Dover Street Market, and More
This week's important news topics that you should know about
I’ve gotten feedback that quite a few subscribers don’t receive my roundup emails. I think it’s due to the number of external links it contains and ends up in everyone’s spam folders. Moving froward I’ll be removing said links and focusing on my commentary about the topic. Most of these aren’t niche in nature so the first page of any google search will allow you to find more information on the topic if you choose to do so. If any of these resonate with you, would love to hear your opinions in the comment section.
Lululemon vs……Costco?
Lululemon is suing Costco for IP infringement, but Costco is laughing all the way to the bank. An interesting piece from The Business of Fashion reports that while Lululemon has a legitimate claim, they’re also doing themselves a disservice. As many shoppers hunker down and find smarter ways to spend their money, dupes will rise in popularity. If consumers can get the same functional quality that they’d see in a higher-priced brand for a fraction of the cost, why wouldn’t they? As amazing as Lululemon’s products are, they aren’t a logo-forward brand, so people aren’t necessarily paying for these items to show off who they’re wearing. This isn’t their first time going on offense against brands who infringe on their IP (Calvin Klein was subject to their wrath years ago) but it might’ve been better to sit this one out.
Dover Street Market Creates and Launches a Private Line
Known as one of the best in-store aggregators of streetwear and luxury fashion brands, Dover Street Market will start carrying their own private label. CEO Adrian Joffe introduced the inaugural line during Paris Men’s Fashion Week a few weeks ago. He mentioned that there will be various designers that will aid in the design and development of collections and they aim to make these items affordable. I’ve been to their stores in various cities and their selection is always incredible. The great thing is that they’ll already have a huge customer base to sell to. As long as they’re able to control costs correctly, this should do wonders for their profitability.
Michael Burke to lead LVMH Americas
A big c-suite announcement hit the headlines on Monday. Michael Burke is now set to lead LVMH Americas. Anish Melwani and Davide Marcovitch who lead the US and Latin America, respectively, will now report directly to him. Michael has a solid report card for all the brands that he’s been in charge of throughout his career. He’s been with the company after wrapping up his tenure at Dior in 1992 (LVMH didn’t acquire Dior until 2017). He’s since been in charge of major brands under their umbrella such as Louis Vuitton, Fendi, and a handful of others. He was also recently given a board seat for Tiffany’s. The move will also be great for the American employees who will become his direct reports. He’s characterized as “A charismatic, cerebral and well-rounded executive with a fun-loving streak and a ready laugh, he’s known for his ability to motivate teams, and for thriving on complexity.”1
Mango launches its first AI-powered assistant
Spanish retailer Mango has launched another AI assistant. Dubbed “Mango Stylist” it will give recommendations based on shopper preferences and also recommend full outfits. I look at this as a smarter extension of how brands use “customers also bought these items” and “shop the full look” where online customers are shown a host of items at the bottom of a particular product page. Another cool feature is that it will integrate with Iris, Mango’s customer service AI agent, so they’ll work hand in hand to enhance the customer experience. They’ve already rolled out this technology in key markets including the U.S., Italy, France, Germany, etc. It will be interesting to see which brands get AI right the first go around and those that might need several iterations. Plenty of companies in every industry are still struggling to figure out the best way to integrate AI into customer facing and/or back-office products. However, the longer it takes for them to choose and implement something, the more they risk losing future marketshare.
Shein Fined Millions by the French Government
It always puts a smile on my face when companies who choose to ignore laws set for the good of the people are held accountable. Fast fashion retailer Shien was fined €40 million by the France’s antitrust agency. “Under French regulations, the reference price for any discount is the lowest one given by a retailer during the 30 days preceding the offer. Shein infringed that rule by not taking into account previous offers, and sometimes increasing the price before applying a discount, the agency said.”2 Shein claims they had cleared this issue up when the agency approached them years ago, but clearly this wasn’t the case. The French government has passed several laws to curb fast fashion tactics and while France might not be a massive market for the company, it’s still chips away at their ability to compete in Europe. As the tariff war continues to heat up here in the states, Asia-based companies like Shein will start to feel the pressure and notice their ability to win out on price quickly fade away.
Women’s Wear Daily; EXCLUSIVE: Michael Burke to Head LVMH Americas
Reuters; France fines retailer Shein 40 million euros for misleading discounts