MUST READ: WHY DESIGNERS ARE DUPING THEIR OWN DESIGNS, COTY ENJOYS UNEXPECTED SALES GROWTH

Why designers are duping their own designs

As the stigma around replicas or "dupes" fades, luxury labels are now embracing cloning their own designs via a new era of high-low collaborations, like Mugler x H&M. As Faran Krentcil writes for Business of Fashion, designers are attracted to these collaborations because they can produce items and categories that their own labels do not offer, gain greater brand visibility and access to a new customer base. To be sure, owning an authentic designer piece is an experience that can't be fully replicated with mass retailers, but these high-low collaborations continue to be an attractive opportunity for designers and retailers alike even as the rules around them relax. 

Coty enjoys unexpected 15% growth in its third quarter

Beauty company Coty has raised its full-year outlook following a 15% increase in sales to $1.29 billion for the third quarter, exceeding analyst expectations. Sales for the first nine months of the fiscal year grew by 10% to $3.2 billion, with fourth-quarter growth projected to be up in the 10% range. The company, which owns popular fragrance and cosmetics brands such as Burberry, Tiffany & Co., Chloé and Gucci Beauty, has seen an uptick in sales in China after Covid disruptions. "We are delivering on our balanced growth agenda, with strong like-for-like growth across both divisions and all regions, with growth contribution from volume, price and mix, and from our key categories including fragrances, cosmetics and bodycare," Coty CEO Sue Y Nabi said in a statement.

How resale companies are seeking profitability

Resale companies, such as The RealReal and Thredup, have gained increased popularity in recent years. However, these companies face challenges in achieving profitability, especially when it comes to the margin structure of resale. "We're not mass producing the product, so we don't have unit economics on our side...the cost of each sale is high, and so your margins need to be higher if you ever want to see a profit," Ben Hemminger, CEO of Fashionphile, told Glossy. To address these challenges, resale companies have been trying to ensure that the minimum sale price exceeds costs of business, by selling more products at higher price points. 

Alex Mill names new CEO 

Alex Mill has appointed Roxanne Stahl O'Hara chief executive officer, per WWD. Mickey Drexler, the previous CEO, will continues as chairman of the company. O'Hara brings a strong background in consumer products to the position; in the past, she worked as chief merchant at Melissa & Doug and senior vice president at J.Crew. As the CEO, O'Hara will be heavily involved with merchandising, says Drexler. "Joining Alex Mill is a full-circle moment for me," said O'Hara. "A few years ago, I came in to visit Alex and Som [Sikhounmuong, the brand's creative director] when they were designing their first women's line and I immediately fell in love with the clothes and became a loyal customer," she adds. 

The legal challenges of the fashion resale market 

With the rise in popularity of resale platforms, the luxury fashion industry has faced legal complexities related to authenticity, intellectual property rights and consumer protection. As chronicled by Nicolette Shamsian at Above the Law, Chanel filed suit in 2018 against What Goes Around Comes Around claiming they "attempted to deceive consumers into falsely believing that Defendant WGACA has some kind of approval of or relationship or affiliation with Chanel." The same year, Chanel also filed a lawsuit against The RealReal alleging they engaged in infringement, counterfeiting and unfair competition. As the industry navigates how to handle second hand resellers, it's important to consider parameters around transparency and authenticity.