TOP10 NEWS OF THE WEEK / 06.16.24
THE DATES OF 5 GLOBAL FASHION WEEKS ANNOUNCED FOR FALL 2024 AND 2025
The Council of Fashion Designers of America (CFDA) , The National Chamber for Italian Fashion , the British Fashion Council , the Fédération de la Haute Couture et de la Mode , and the METAVERSE FASHION COUNCIL have announced the dates for the Fall 2024 fashion weeks in New York, London, Milan, Paris, and the Metaverse - Silicon Valley - World.
The New York Fashion Week shows will be held from September 6 through September 11, organized by the Council of Fashion Designers of America. For more information, visit https://cfda.com/nyfw
The London Fashion Week is Sept. 12 through Sept. 17 by British Fashion Council https://www.britishfashioncouncil.co.uk/GLOBAL-PLATFORMS/London-Fashion-Week
Milan Fashion Week shows take place Sept. 17 through Sept. 23 by Camera Nazionale della Moda Italiana https://www.cameramoda.it/
Paris shows will be held Sept. 23 through Oct. 1 by Federation de la Haute Couture et de la Mode https://www.fhcm.paris/en
Metaverse Fashion Week is November 20 through 24 by Metaverse Fashion Council https://metaversefashioncouncil.org/magazine/tpost/k4juz950h1-metaverse-fashion-week-2024-will-take-pl
The Singularity momentum in 2024 is that starting from this year there will be 5 global fashion weeks with Metaverse Fashion Week added to the lineup of the Big Four. It will be hosted across various platforms in the Metaverse and Silicon Valley plus World. With a strong emphasis on openness and decentralization, the Metaverse Fashion Council aims to transcend the traditional "media event" approach, focusing on innovation, creativity, and a investment-oriented approach. The Metaverse Fashion Council has outlined its key objectives:
Starting from its first season in 2025, Metaverse Fashion Week will be hosted alongside New York, London, Milan, and Paris Fashion Weeks. The lineup of the five fashion weeks will have the following dates: New York has set its show dates for February 13 through February 18, London Fashion Week is February 20 through February 24, Milan is February 25 through March 3, Paris is March 3 through March 11, and Metaverse - Silicon Valley - World is March 12 through March 16.
OLD FASHION SYSTEM
MILAN'S COURT OF JUSTICE URGES LVMH AND ARMANI TO UPHOLD LABOUR LAW
Key Takeaways:
?? Luxury fashion companies must ramp up their supplier checks to uphold labor laws, urges Milan's court of justice, following investigations into worker exploitation at LVMH and Giorgio Armani units. These proposals, though not legally binding, represent a significant move by magistrates in Italy's fashion epicenter to combat what they call "a generalized manufacturing method" endangering lives for higher profit margins.
? For over a decade, Milan prosecutors have scrutinized illegal working conditions in logistics and cleaning services, now turning their focus to the luxury sector, where Italy produces half of the world's high-end goods. This year's supply chain probes revealed sweatshops near Milan where workers, often illegal immigrants, toiled in dire conditions—eating and sleeping on-site, working through nights and holidays, and operating unsafe machinery to boost output.On Monday, a Milan court appointed a special commissioner to oversee an LVMH unit producing?Dior-branded handbags. In April, a similar action was taken with an?Armani?unit.
?? Fabio Roia, president of Milan's court system, shared with?Reuters?that the proposed scheme was crafted with input from court-appointed commissioners who have assisted companies in rectifying supply chain issues in recent years.?"On Tuesday, we sent the draft proposal to Milan's police chief. Then Italy's Chamber of Fashion and other associations, as well as every company in the sector, will need to adopt it. We aim to make this happen before the summer break," he said.
The measures aim to enforce effective supplier checks. "We've noticed companies don't invest enough in their control systems. It is, first and foremost, a problem of culture, like tax evasion," Roia remarked. "Business owners unfortunately don't normally question why certain goods or services cost so little. They simply seize the chance to maximize profit. You'd think ultra-low prices would ring alarm bells. If someone offered me a Rolex watch for 50 euros, I'd be wondering where it comes from."Recent investigations reveal the stark reality: Milan prosecutors allege that one Chinese-owned supplier, by making staff work illegal 15-hour shifts, charged Dior as little as 53 euros for handbags retailing at 2,600 euros. Similarly, sub-contractors paid workers 2-3 euros an hour for 10-hour days to produce bags sold to Armani suppliers for 93 euros, then resold to Armani for 250 euros, and retailed at around 1,800 euros.
?? While LVMH has not commented, Armani maintains it has always sought to minimize abuses in its supply chain. Neither group is under investigation.
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ITALIAN SWEATSHOP PROBE IS A WAKE CALL FOR LUXURY BRANDS
Sarah Kent for The Business of Fashion: An investigation into labour exploitation in fashion’s Italian supply chains has already entangled Giorgio Armani and LVMH, accusing the companies of failing to adequately oversee their suppliers. Incoming EU regulation means such lapses in oversight could soon come with penalties of up to five percent of global revenue.
Key Takeaways:
?? The luxury industry’s claims to operate responsibly are under fire from an Italian probe into labour exploitation that has so far entangled?Armani?and?LVMH. The investigation casts a spotlight on Italian?supply chains?that high-end brands have long used to burnish their image, using “made in Italy” as a short-hand for quality, craftsmanship and ethical manufacturing. But according to investigators, some of luxury’s biggest businesses are making thousand-dollar handbags in illegal sweatshops.On Monday, a Milan court placed an LVMH subsidiary that makes bags for Dior under?court administration?for failing to ensure suppliers were meeting Italian labour standards. In April,?similar measures?were taken against an Armani unit. And the repercussions are unlikely to stop there.
?? As sustainability advisor Caterina Occhio wrote in an?op-ed?this week, it’s a scandal that exposes “the myth of ethical luxury.”Fashion’s most elite brands often present the industry’s worst environmental and social sins as a fast fashion problem, pitching their high prices and European supply chains as evidence of responsible practices. According to Italian police, factories manufacturing for Dior and Armani — in some cases directly and in some cases through subcontracting — were found to be operating without regard for health and safety or labour standards. Investigators found illegal and undocumented workers living and working in facilities where production went on unceasingly day and night and safety devices had been removed from machinery to allow them to operate faster, according to the contents of court documents detailed in?media reports.
As a result, the suppliers were able to slash costs. The LVMH subsidiary sanctioned this week was paying as little as €53 ($57) per unit to procure handbags that retailed at €2,600 each, according to reports on the court’s findings. Armani bags that sell for €1,800 in store, were being made by a Chinese subcontractor for?€93 a piece?and sold onto the group by a middleman at €250 each, according to the media reports.
?? LVMH did not respond to a request for comment. They will be supervised by an external commissioner until magistrates decide they have adequately addressed the lapse.
?? But failure to act could cost luxury labels their most precious asset: their good name.
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WHAT'S BEHIND THE SLOW FASHION RECESSION
Isabel Slone for The Business of Fashion: The closure of Mara Hoffman and other brands that built ethical consumption into their business models is raising questions about whether there’s room in the market for brands that put sustainability first.
Key Takeaways:
?? Not so long ago, it appeared entirely possible that mainstream consumers would willingly embrace ethical manufacturing techniques, the use of organic natural fibres and durability over price and trendiness. Many used the lockdowns as an opportunity to reconsider their life’s purpose, and slow fashion’s focus on thoughtful consumption captured the zeitgeist.But the market, never all that big to begin with, quickly became crowded with new labels, which competed with established brands touting their own, often dubious eco credentials.
?? Changes to social media algorithms prioritised large brands with big advertising budgets, making it harder for emerging designers to get their products in front of potential customers. Inflation dealt a double blow: consumers had less disposable income, so pricier ethical purchases took a backseat. It also raised the cost of adhering to slow fashion values; brands rooted in compensating workers fairly and using high-quality, natural fibres had fewer options to cut corners as their expenses soared.
?? The slow fashion model is constantly evolving, and there are still plenty of brands out there promoting ethical consumption.Even as sustainable fashion became trendy, the pressure to reduce manufacturing costs and lower prices has only intensified.“The US market is flooded with fast fashion, so people are used to paying a very low price point for relatively nice clothing,” said Elena Bridgers, who launched her slow fashion line Hera California in 2023.In April, she posted a video to Instagram where she told followers she had given up on the idea of making a living from her brand.
?? At the heart of the slow fashion ethos, there is a tension between encouraging consumers to make thoughtful purchases and buy less, and the bottom line.Investors, too, are unused to working with brands where the priority isn’t built around maximising growth and profits. Mara Hoffman and other slow fashion designers built – or aspired to build – big businesses. Others viewed their labels as passion projects, and worried outside investors would apply pressure to dilute the ethics of their brands.
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THE MYTH OF ETHICAL LUXURY
Beneath luxury’s glamorous surface lies a network of supply chains tangled with the same labour abuses as fast fashion. Brands can, and should, do better, argues Caterina Occhio for the The Business of Fashion.
Key Takeaways:
? According to LVMH’s head of image and sustainability Antoine Arnault, luxury is “sustainable by nature.”It’s a common message within the industry, where high prices and claims of artisanal manufacturing are often used as proof points for ethical and environmentally responsible operations.And yet just this week,?a Milan court?placed an LVMH unit under external supervision after an inquiry alleged that subcontractors in its supply chain had exploited workers.
?? Such findings are shocking, but hardly surprising. Though luxury brands like to position fashion’s environmental and social ills as a mass-market problem, the incidents are just the latest in a string of reports challenging the carefully cultivated perception that luxury goods are synonymous with ethical practices.The reality is that many luxury players operate more like fast fashion than they care to admit. For years now, “exclusive” goods have been produced and sold by the millions in a shift towards high-margin mass production that has come with increased pressure on manufactures and greater risks of labour exploitation.
? Rethinking Luxury’s EthicsEven as luxury players increasingly weave sustainability claims into their image-building, most are continuing to operate in much the same way they always have: leaning on prestige and heritage to side-step demands for more transparency and accountability.
?? But the world around them is changing. Global regulations are tightening, with policymakers moving to?make brands more accountable?for human rights and environmental abuses in their supply chains.?Investors are also demanding more, with sustainability-focused funds pushing businesses to address their environmental and social impact. Consumers might not always shop their values, but they also don’t want to spend $10,000 on a handbag that could be linked to sweatshop conditions.
?? As a baseline, luxury brands must adhere to strict guidelines on labour standards and human rights, enhance the efficacy of social audits, assure living wages, pursue rigorous third-party certifications to back up any sustainability claims, and foster transparent communication with stakeholders.
?? Far too many of luxury’s sustainability initiatives remain stuck in pilot mode or forgotten within a season.
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WHAT IS BUZZ WORTH?
Joan Kennedy for The Business of Fashion: Many fashion brands have prioritised manufacturing viral moments meant to create chatter online. But that alone can’t be the foundation of a brand’s marketing strategy.
?? KEY TAKEAWAYS:
?? Buzz is hugely valuable in fashion, but it can't be a brand’s priority.?? In a challenging market and saturated media landscape, many brands are re-evaluating how they make, measure and prioritise buzz.
?? “Buzz implies … the brand isn’t pushing the story down your throat. People are reacting and evangelising on your behalf,” said Tony Wang, founder of luxury consulting firm Office of Applied Strategy. “If you can unlock it, it’s infinitely more scalable than paid media.”
?? “Buzz is awareness, amplification and excitement,” said Lucien Pagès, founder of his namesake communications firm LUCIEN PAGES COMMUNICATION. “You need to have it, but you cannot live on buzz.”
?? "Manufacturing buzz — whether an isolated splash or plugging into particularly talked-about moments like the Cannes Film Festival or the Met Gala" — is high on brands’ agendas, said Guillaume DELACROIX, the founder of strategy and communications firm DLX.
?? In the immediate aftermath, viral moments can move items like handbags and shoes, attract a new audience or for young brands attract well-funded collaborators and sponsors for their next show, said Gia Kuan, founder of her namesake New York-based PR firm.
?? “In the conversations I have with my clients, it’s just ‘focus on who you are and on having the right positioning and a unique offering,’” said Guillaume DELACROIX. “You cannot build brand desirability on buzz … it lasts the amount of time an Instagram story is up.”
?? That data is useful for figuring out what talent to work with, or what event to do a push around, said Lissy von Schwarzkopf, chief business officer of KARLA OTTO.
?? Even the M&A market is tempering on the idea of buzz, said investor Ariel Ohana, as a more precarious financial market refocuses priorities.“Right now many buyers are saying ‘give me legacy brands, give me brands that have built perennial brand equity.’ There have been periods of time where people were only looking for what’s the most recent and buzzy brand around,” said Ohana.
?? “Brands need to focus on creating connectivity with their consumers. That’s really key in thinking about whether they need to generate a lot of buzz,’” added Alison Bringé (nee Levy), chief marketing officer of analytics platform Launchmetrics. “Is everyone your consumer? Probably not … I think that’s where we get lost.”
?? “[Buzz] creates an energy, but also an expectation,” said von Schwarzkopf. “You always need to think about what you do after.”
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THE FASHION SYSTEM IS CREAKING. WILL IT COLLAPSE?
The current formulaic, corporatized, anodyne approach to fashion is not working. The industry needs to find its courage to be creative again, writes Imran Amed in The Business of Fashion.
Key Takeaways:
?? Lately, something has not been feeling quite right in luxury fashion. First Kering, and now LVMH and CHANEL, seem to be creeping into crisis management mode.
As has been well documented, Sabato De Sarno’s creative directorship at all-important Gucci has not yet ignited industry interest. Meanwhile, customers haven’t had the opportunity to see much new product in store, hobbling Kering’s post-Covid performance. None of the other Kering brands are registering meaningful growth that can make up for this, leaving the group with a very complex multi-faceted turnaround to execute.
?? Over at LVMH, things are getting more challenging too. According to market sources, sales at Dior are flagging, which perhaps explains why the house’s March 23 men’s show in Hong Kong was “indefinitely postponed” just a few weeks before it was due to take place. Meanwhile, Fendi and Givenchy seem to be in stasis mode, while reports that Hedi Slimane is about to leave Celine following?“thorny contract negotiations”with his bosses at LVMH further complicates matters.
?? And then just last week,?Chanel suddenly lost its creative director, Virginie Viard, and in a not very Chanel way, especially for someone who had dedicated 30 years to the house.
?? Most of the brands that compete with Prada Group and Loewe for attention have backed away from high-risk, high-reward fashion driven by creativity. Now the approach is more formulaic, akin to selling luxury merch in an overpriced supermarket. Karl Lagerfeld may have predicted with his Autumn/Winter 2015 Chanel show.
?? The fashion system has also been buffeted by the sudden collapse of MATCHES and FARFETCH, and the slow but steady decline of the once-dominant luxury e-commerce behemoth YOOX NET-A-PORTER, which is a shell of its former self. The experience and assortment at Farfetch was not so different from Matches which was not so different from Net-a-Porter. This is in part because the people who bought or invested in these companies had no real. understanding of the creativity and taste required to create world-class retail. (Some of them did not understand how to manage technology either, but that’s a whole other analytical exercise.)
?? The result of all this is a fashion industry that fails to inspire customers, and not even ourselves. The current formulaic, corporatised, anodyne approach to fashion is clearly not working. This leaves me with the sinking feeling that things are about to break down. Maybe that’s what fashion needs to find its courage to be creative again.
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"MOST BRANDS ARE NOT YET ON TRACK TO DECARBONIZE, AND MANY ARE HEADING IN THE WRONG DIRECTION" - 2024 CLEAN ENERGY REPORT
?? Key Takeaways:
Stand.earth released its 2024 update to last year’s?Fossil-Free Fashion Scorecard, revealing that the world’s leading fashion companies continue to rely heavily on fossil fuels, showing insufficient progress in decarbonizing their supply chains.
?? "The 2024 Clean Energy Close Up" provides a detailed analysis of the tangible progress—or lack thereof—among 11 of the most influential global fashion brands?in reducing emissions, phasing out coal, and transitioning to renewable energy. This report measures their performance against the pathway to an equitable fossil fuel phase-out by 2030, based on publicly available data from their supply chains.
?? Troubling Emissions TrendsOne of the most alarming findings is from fast-fashion giant SHEIN, which scored just 2.5 out of 100. Shein's absolute emissions surged by nearly 50% in a single year, now exceeding the annual emissions of Paraguay. This rapid growth in emissions from Shein alone threatens to negate the progress made by more traditional brands.
?? Greenwashing and Regulatory ScrutinyComplicating the transition to clean energy is the issue of greenwashing, where some brands use marketing tactics to obscure their true environmental impact.
?? Statements from Stand.earth“The good news is that progress is happening. The bad news is that it is being undermined by dangerous pollution from ultra-fast fashion and the growing threat of greenwashing. Simply put, most brands are not yet on track to decarbonize, and many are heading in the wrong direction,” said Rachel Kitchin, Senior Corporate Climate Campaigner at Stand.earth and the report’s lead author. “These big players in the fashion industry must show leadership by rapidly phasing out fossil fuels and investing in tangible, renewable energy solutions.”
?? Signs of ProgressWhile overall progress is limited, there are encouraging signs. For instance, PUMA Group reported a significant increase in clean energy use, with 27.4% of its electricity coming from renewables across its key supplier tiers. H&M stands out for offering grants to suppliers to install rooftop solar, making it the only brand to do so. However, the company still needs to fully disclose its progress in phasing out fossil fuels and shifting to renewable energy.
?? Conclusion and Call to ActionThe fashion industry, a multi-trillion-dollar sector, is responsible for 2 to 8% of global greenhouse gas emissions, with these emissions projected to increase significantly by 2030. The Clean Energy Close Up report makes it clear: meaningful progress is essential, and the fashion industry must act now to transition to a sustainable, fossil-free future.
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"WE'RE BUILDING A HOUSE": HOW RABANNE IS USING ART INNOVATION TO LEVEL UP
Madeleine Schulz for Vogue Business: Chief brand officer Vincent Thilloy and creative director Julien Dossena on how a new digital art partnership with Art Basel is a prong in the brand’s strategy to become a fully fledged fashion house.
Key Takeaways:
?? Rabanne is on a mission: to evolve from fashion brand to maison, and its newly created Rabanne Arts Factory is a pillar of the Puig-owned brand’s strategy to do so.Launched in December in partnership with Dazed Media, the programme is geared towards supporting the next generation of digital artists. Today, the Rabanne Arts Factory announces a partnership with?Art Basel: six digital artists are in the running to win the opportunity to show at Art Basel Miami in December.?? Part of the purpose, Thilloy says, is to cater to the youth: “To galvanise the younger generation to forge a more creative and inclusive world.” The idea started three or four years ago, he says: the Rabanne team wanted to develop something to uplift younger generations
.The brand looked to digital art, in part, because of the young demographic creating work in this space. Innovation is also key. “We want to [help] emerge new talents, and new ways of expressing artistic behaviour –?the same way that César was using metal to do the sculptures.” (César was one of the artists that told Paco Rabanne he should make metal dresses.)But do young people even still care about digital art? They should, Dossena says. This parallels Rabanne’s wider rebrand, which began last year when it?dropped the ‘Paco’. The goal was to unify the brand under one vision.The Rabanne Arts Factory will continue to evolve to meet younger generations where they’re at. ?? Building the house“It’s not just about the product. It’s about: What is the purpose of Rabanne?”Might digital art play a role in this design? Perhaps, Dossena says. But it’ll be part of the process, not an automation. “It’s definitely an area we are going to explore –?but in totally the opposite way to AI. That’s why I insist on the medium aspect of [digital art]: it’s different from the finalisation of the image. It’s good to interrogate the image.”
?? Rabanne wants to communicate this message of innovation internationally, too. It’s why Art Basel was the ideal partner for this project, Thilloy says: the winner will be announced in Miami, but the fair also has a presence in Paris, Hong Kong and Basel, Switzerland (where the six finalists are announced today). It offers the artists a further-reaching platform –?and the brand, as well. (When the brand dropped ‘Paco’, part of the rationale was that it was “more international in spirit”.)?? learn more:
SINGULARITY
THE AI REPORT 2024 - AVAILABLE NOW
The Interline: Our first AI report - available to download for free - explores the transformative impact of artificial intelligence on fashion, through exclusive editorial, tech vendor profiles and interviews, and market analysis. The AI Report 2024 is designed to present an objective, grounded perspective on the role of artificial intelligence in fashion. Key topics:
领英推荐
A welcome to the AI era from?Editor-in-Chief, Ben Hanson.
A foreword from Kelly Helfman, President of MMGNET Group.
An A-Z primer of AI terms and their implications, from?The Interline team.
An exclusive interview about tools, process, and futures with our cover designer – and now Group Director for Digital Transformation & Innovation at Lanvin Group – Baris Gencel.
An in-depth look at what a radically reimagined, AI-native fashion value chain might look like by Jonathan Brun, Co-Founder & CEO Off/Script.
A deep dive into how AI is transforming some jobs and why others could be at risk, from MacKenzie Ryan, an?investigative journalist and contributor to The Guardian.
A critical analysis on whether AI will break down fashion’s barriers, or entrench existing biases, from a long-time contributor to The Interline, and?Partnerships Manager at Central Saint Martins,?Aasia D’Vaz Sterling.
A view on how, and how quickly, the next generation of talent is being prepared for a transformed working environment by?The Interline’s?News & Features Editor, Emma Feldner-Busztin.An examination of AI’s as a one-size-fits-all innovation and whether the infrastructure to support the demands of AI in all its different forms is being built to scale, by?Kevin Cochrane, Chief Marketing Officer of Vultr.
An analysis of generative AI’s impact on brands that have worked hard to replace physical processes with 2D and 3D design, by?Mark Harrop, Founder & CEO of WhichPLM?and?Goor Moshe, a Business Development and AI AdvisorA case for what corporate leadership should look like in the age of AI, by?Eric Huiza, Global CTO at Aionic Digital.A breakdown of AI’s impact on brand content – from design and development to downstream communications – from?Jessica Quillin and Bryce Quillin.
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NEW SMART RING AIMS TO DETHRONE OURA WITH AN AI COACH AND CRYPTO REWARDS
Ryan S. Gladwin for Decrypt: CUDIS has started to ship its Genesis smart ring, pitching features that it hopes will set it ahead in the wearable tech space.A new smart ring is hitting the market that leverages artificial intelligence (AI) and a crypto earning feature as it guns for industry leader ōURA.
Key Takeaways:
Smart rings pack wearable tech into a factor even smaller than smart watches to measure your heart rate, count your steps, track your sleep, and other key metrics. ōURA dominates the space with a 62% market share, according to?Maia Research.CUDIS hopes it has a worthy rival in its Genesis smart ring, adding an AI-powered coach that will give you personalized health and wellness advice as well as offer a rewards program tied to a future token airdrop on the Solana blockchain.
?? Many of the features of the Cudis Genesis ring are common across wearables: tracking heart rates, steps, sleep, strain, stress, and recovery, as well as menstruation cycles. The?Oura ring?and other smart devices like the?Apple Watch?cover this territory well.
?? Cudis claims that Genesis users will receive concise, personable answers that relate to the data that you let the AI model access, providing a much more specialized path to better health. In terms of AI-generated advice, a similar offering can be found in the?Ultrahuman Ring Air, which also uses ChatGPT.
?? Cudis founder Edison Chen told Decrypt that your AI coach will understand when you are reaching a higher level of wellness and give you more advanced tips, including “authorized super supplements” that may benefit the user.Meanwhile, the company also plans to incentivize its users with a “use-to-earn” rewards program. Cudis users will be able to earn points by wearing the ring, manually testing their heart rate, and using the app, with more ways to earn points “coming soon.”“Many platforms are tracking and using users' health data but never giving rewards back to users—we believe this is not right, and people should have the right to own their own data, use and monetize their data,” the company?explained. “By building Cudis’ smart ring, we allow people to track their health data on a daily basis, assist them in monetization and sharing data with others with users' permission, and return the benefits to users.”The second round of?pre-orders opened this week, with the Genesis smart ring selling for 1.5 Solana (about $220). The device can only be purchased with cryptocurrency right now, but the company said a fiat payment option is coming. When the Cudis smart ring is broadly available, its retail price will be $349.
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"THIS IS GOING TO BE PAINFUL": HOW A.I. DEVICE FLOPPED
The New York Times: Humane’s Ai Pin was supposed to free people from smartphones, but sales have been slow. Now Humane is talking to HP and others about a potential sale.
Key Takeaways:
?? In April, reviewers brutally panned the new $699 product, which Humane had marketed for a year with ads and at glitzy events like Paris Fashion Week. The Ai Pin was “totally broken” and had “glaring flaws,” some reviewers said. One declared it “the worst product I’ve ever reviewed.”About a week after the reviews came out, Humane started talking to HP, the computer and printer company, about selling itself for more than $1 billion, three people with knowledge of the conversations said. Other potential buyers have emerged, though talks have been casual and no formal sales process has begun.
? The San Francisco company had raised $240 million from powerful Silicon Valley investors, including Sam Altman, OpenAI’s chief executive, and Marc Benioff, Salesforce’s chief executive, who valued the start-up at $1 billion based on its enormous ambition and promise. Humane spent five years building a device to?disrupt the smartphone?— only to flounder. As of early April, Humane had received around 10,000 orders for the Ai Pin, a small fraction of the 100,000 that it hoped to sell this year. On Wednesday, it asked customers to stop using the Ai Pin charging case because of a fire risk associated with its battery.
? Its setbacks are part of a pattern of stumbles across the world of generative A.I., as companies release unpolished products. Over the past two years, Google has?introduced and pared back A.I. search?abilities that recommended people eat rocks, Microsoft has trumpeted a Bing chatbot that?hallucinated?and Samsung has added A.I. features to a smartphone that were called “excellent at times and baffling at others.”
?? In October, Time magazine named the Ai Pin one of the best inventions of 2023. The next month, Humane revealed the product’s details, promoting it in?commercials.But orders were slower than expected, three people said, leading Humane to reduce plans to produce more of the devices. Ms. Bongiorno declined to comment on sales.
? In January, Humane laid off about 10 employees. A month later, a senior software engineer was let go after she questioned whether the Ai Pin would be ready by April.
?? learn more:
OPENAI DOUBLES ANNUALIZED REVENUE TO $3.4 BILLION
Shirin Ghaffary and Rachel Metz for Bloomberg
Key Takeaways:
?? OpenAI is on pace for $3.4 billion of annual revenue, Chief Executive Officer Sam Altman told the company’s staff, according to a person familiar with the matter.In an all-hands meeting Wednesday, Altman said the vast majority of that revenue — about $3.2 billion — comes from OpenAI’s products and services, according to the person, who spoke on condition of anonymity to discuss internal communications. Altman said OpenAI is also on track to generate about $200 million by offering access to its AI models through Microsoft Azure, the person said
.The Information was?first to report?the revenue figure. The outlet previously reported that annualized revenue was $1.6 billion in late 2023.OpenAI declined to comment.?? OpenAI has emerged as a driving force in the development of AI, thanks to the viral success of ChatGPT, which helped kick off the frenzy around generative AI. Earlier this year, OpenAI completed a tender offer valuing the startup at $86 billion.In recent months, OpenAI has been working to boost revenue from its AI products by selling services to enterprise customers. OpenAI has also begun training a more powerful AI model that could help it stay ahead of a growing number of well-funded rivals who are vying for the same users and businesses.?? This week, the startup hired Sarah Friar, the former chief executive of neighborhood social networking service?Nextdoor Holdings Inc., to serve as its chief financial officer, a role that has gone unfilled at the fast-growing artificial intelligence firm for two years. Friar will help OpenAI continue to invest in AI research while growing its global business, the startup said.https://lnkd.in/gdsnfGxw
ELON MUSK TO BAN APPLE DEVICES IF OPENAI IS INTEGRATED INTO OS
Bloomberg: Billionaire Elon Musk said he would ban Apple Inc.?devices from his companies if OpenAI’s software is integrated into the products at the operating system level.
The remarks followed?a presentation?Monday by Apple Inc., when it said that customers would have access to OpenAI’s ChatGPT chatbot through the Siri digital assistant. Apple plans to roll out the capabilities as part of a suite of new AI features later this year.Musk co-founded OpenAI but had a falling-out with the San Francisco-based startup.“If Apple integrates OpenAI at the OS level, then Apple devices will be banned at my companies,” Musk wrote on X, the social network that he owns. “That is an unacceptable security violation.”Musk runs Tesla Inc. and Space Exploration Technologies Corp. He also has his own AI startup, called xAI, with its own chatbot, Grok.“Visitors will have to check their Apple devices at the door, where they will be stored in a Faraday cage,” he added, referring to a device that blocks electromagnetic fields.
"THERE IS A PERCEPTION THAT AI IS GOING TO THREATEN THE VERY NATURE OF CREATIVITY. HERE'S WHY I DISAGREE"
Lorraine Twohill, Chief Marketing Officer at Google
Key Takeaways:
?? In a recent survey,?only 32% of business leaders said that their company has broadly adopted AI. We are all still figuring out how to bring the benefits of AI to our teams—and what success even looks like.
?? With AI, we are all still testing and learning how to translate this technology into value. So now is the time when everyone can experiment and start playing around. AI tools are already available—and there’s no need for advanced training or coding knowledge to take part.
?? There is no wrong way to experiment. Identifying a specific pain point is one way companies get started—whether it’s an e-commerce retailer using generative AI to write product descriptions at scale or a graphic design platform that makes video creation faster with AI.
?? To help inspire others, we recently published?a list of how over 100 businesses use AI. We also just launched?a course?to help everyone from small businesses to nonprofits and governments use AI.
Like many of us heading to the Cannes Lions, I have a particular interest in how AI will transform marketing. There is a perception among some that AI is going to threaten the very nature of creativity. I disagree.Creatives have long embraced major technological transformations. They use them as opportunities to try new things, often long before others, and, ultimately, ignite all our imaginations. When creativity and technology intersect, we can do extraordinary things.I’m lucky enough to work alongside some of the very best creatives in the world. Even they will tell you that a blank sheet of paper can be terrifying. So put the horror of the first terrible draft on an AI. Spare yourself. Then be brilliant.AI can also save marketers countless hours. At Google, we use AI to generate several versions of an ad in the time it would have taken to create just one in the past. And we use AI to translate ad copy and deploy campaigns across 150 countries.?? Like any tool, AI has limitations. That’s why humans remain essential. When we use AI to translate ad copy, a real person reviews every single piece before it goes live. AI can enhance the brilliance and judgment of our teams, not replace it. It can help us put out better work more quickly and at scale, but not without strong human judgment. So what would I tell my business owner friend today? That this is just the starting line.?? The future of AI is not set. It will be shaped by our actions today. It’s on all of us to be curious. This curiosity is what drives amazing creativity and makes all of our work great. It’s rare that we have an opportunity to shape the future together. Today is one of these moments.?? learn more:
METAPHYSICS
HOW THE AURA BLOCKCHAIN CONSORTIUM CONVINCED LUXURY COMPETITORS TO COLLABORATE
Vogue Business: On the heels of the 40 million product mark, the unprecedented partnership between major luxury groups hopes to prepare brands for the EU’s digital product passports —?and a new way of engaging with the customer.
Key Takeaways:
?? Aura Blockchain Consortium says it has recorded at least 40 million luxury goods on its private blockchain, helping brands authenticate and trace physical products through digital identities. It now employs a total of 40 people, and counts senior execs from major brands on its board, including LVMH CIO Franck LE MOAL and Cartier international innovation director Angela Au-Yeung, among others from OTB Group, Prada Group, Van Cleef & Arpels and MAKE UP FOR EVER.
? In 2022 — a year after the Consortium was formed — European legislators announced the Ecodesign for Sustainable Products Regulation (ESPR), which will require all fashion products sold in the EU to have digital product passports (DPPs). It isn’t necessary that the information is stored on a blockchain, though it can offer an additional layer of security. While?the European Union hasn’t formally announced?what specifically will be required on the DPPs, Aura is “very close to” the EU, says Aura Blockchain Consortium CEO and general secretary Romain CarrereThere are other companies angling to be the DPP of choice for fashion, including Arianee (used by Breitling, Lacoste and Moncler)?and EON (which is not blockchain-based, and could be linked with other blockchain-based solutions). ?? Challenges aheadBrands still face numerous challenges in adopting digital product IDs — and there’s power in numbers as deadlines approach. This month, the ESPR is expected to be published in the EU’s official journal, according to Aura, with the implementation period starting as early as 2026. Then, brands will have 18 months to comply. Fashion, textiles and footwear are expected to be considered priority product categories.
?? DPPs require brands to collect all details on suppliers involved in the making of each product, and to navigate the logistics of physically attaching the identity to the product — a time-consuming task that can reveal opacity in supply chains.
?? Web3 isn’t deadSo while the DPP might provide a deadline, the uses are open-ended. This could include discounts, promotions or styling suggestions; invitations to events; digital wearables; repair records; or the option to transfer ownership —?and distribute revenue — on the secondhand market. Once ownership is transferred, brands can continue to engage with the new owner —?assuming that they are incentivised to continue scanning.Carrere is convinced that future Web3 utilities still hold water. “I am a Web3 believer,” he says.
ADIDAS'S $20K ROBLOX NECKLACE MARKS NEW ERA FOR FASHION AND GAMING
Jing Daily: adidas sells a $20,000 necklace in Roblox, GIVENCHY Beauty launches a new Pride-themed destination, and x On tap WANNA | 3D & AR Experiences’s augmented reality try-on solution.
?? Key takeaways:
?? adidas sells $20,000 necklace in Roblox
Adidas broke Roblox records with the sale of a $20,000 digital necklace to high-end collector Simon Burgess. The diamond and gold necklace, created in collaboration with 25-year-old Cleveland-based Roblox creator Jonathan Courtney, was snapped up almost instantly by Burgess in Roblox for 2 million Robux (approx. $20,000). Burgess also received a physical pair of customized F-50 Elite Laceless Fast Reborn FG Boots and Campus 00s as part of the purchase.
While this isn’t the first time a branded product has sold for big bucks on the platform (Gucci’s Dionysus bag sold for $4,000 in 2021 and a Carolina Herrera dress sold for $5,000 in 2022), this sale marks the first time a brand has profited directly from a transaction.
?? GIVENCHY Beauty launches Pride campaign in Roblox
To mark June’s Pride Month, Givenchy Beauty has given its destination on Roblox a makeover in celebration of love, acceptance, and diversity.
The reimagined virtual space features rainbows, flags, and an interactive pop-up area with curated collections of UGC wearable items designed by creators on the platform.
As brands invest deeply in bolstering their brand awareness among Gen Z and Gen Alpha, they are becoming more intentional in their approach to popular hubs like Roblox.
?? Loewe x On join AR platform WANNA | 3D & AR Experiences with virtual try-on capabilities
Coinciding with the release of its latest activewear collection, Loewe has teamed up with AR-powered platform Wanna to launch its virtual try-on (VTO) experience for the new Loewe x On Cloudtilt 2.0 sneaker. Customers can try on eight different styles of the shoe virtually via Loewe’s official website.
Jumping onto the?$56 billion augmented reality?hype, Loewe?joins the likes of Mss adoption remains a challenge.
?? The Sandbox, bem.builders, Braw Haus, and DressX have teamed up on a new fashion gaming project, coined “The Art of Runway,” combining avant-garde fashion with immersive experiences. The activation features fashion looks designed by Braw Haus artists and enhanced by DressX, which players can dress their digital avatars in, as well as style themselves via real-life photos and videos using AR. The experience launched via The Sandbox on June 3.
?? Tequila Don Julio has launched its first-ever global release of its limited-edition Don Julio 1942 expressions cask in partnership with Web3 spirits innovator BlockBar. The five expressions will go up for auction on June 20 via BlockBar’s official auction site.
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SONY'S PLAYSTATION REVEALS PLANS FOR FAMILY-FRIENDLY FALL
Jason Schreier for Bloomberg: Later this year, PlayStation will publish two games,?Astro Bot?and?LEGO?Horizon Adventures,?aiming to win over?younger players
Sony Group Corp.’s PlayStation has become famous for releasing bleak, bloody games such as?The Last of Us?and?God of War. But this fall, the gaming giant is going in a different direction — betting big on family-friendly games.Later this year, PlayStation will publish two marquee titles:?Astro Bot, a colorful platformer, and?LEGO Horizon Adventures, an adaptation of the sci-fi?Horizon?series that transforms the robot dinosaurs into Lego constructions.?Astro Bot?will be exclusive to PlayStation 5, while?LEGO Horizon Adventures?will also come to PCs and to the Nintendo Co.’s Switch.
It’s a stark contrast from previous holiday seasons, during which the console manufacturer typically spends hundreds of millions of dollars on big exclusives such as?Spider-Man?and?Ghost of Tsushima?that tell adult-focused stories. But with some major titles delayed and fewer projects in the pipeline due to a pivot to “service” games that went awry, PlayStation will look to bolster holiday console sales by reaching a new audience. The PlayStation 5, released in 2020, has so far sold 54 million units.Journalists played demos of both new games at a recent preview event in Los Angeles.?LEGO Horizon Adventures,?which offers cooperative multiplayer gameplay and simple controls, adapts the somber events of?Horizon: Zero Dawn?into a kid-friendly package. Players can dress up their characters as hot dogs. They can also pick up and hurl other Lego characters, watching them break apart in creative ways.Astro Bot?features a captivating suite of 3D-platforming stages inspired heavily by Nintendo’s?Super Mario Bros.?titles. A demo of the game showed off several worlds, each with unique mechanics. One level transformed the eponymous robot’s hands into massive, elongated fists. Another allowed the bot to turn into a dog and barrel through enemies and obstacles. Team Asobi, the Japanese studio behind?Astro Bot, previously focused on PlayStation VR games.
CRYPTO SURGE: FORTUNE 100 COMPANIES EMBRACE BLOCKCHAIN AND CRYPTO REVOLUTION
Key Takeaways:
? In an unprecedented surge, the number of cryptocurrency, blockchain, and web3 initiatives launched by Fortune 100 companies has skyrocketed by 39% year-over-year, reaching a record high in Q1
?? A recent survey of Fortune 500?executives reveals that 56% of these corporate giants are actively developing onchain projects, including consumer-facing payment applications. This burgeoning activity underscores the urgent need for clear regulatory frameworks to retain crypto talent in the U.S., realize crypto's promise of enhanced access, and solidify America's leadership in the global crypto arena.?? Finance's Trusted Names Lead the Blockchain ChargeThe most esteemed names in finance are not merely dabbling but leading the charge in blockchain innovation, creating pathways for widespread adoption:
?? Spot Bitcoin ETFs: The launch of spot bitcoin ETFs has met significant pent-up demand, with assets under management soaring to over $63 billion. Following this success, the SEC approved exchange applications to list and trade spot ether ETFs, pending S-1 approval, further enhancing access to spot crypto.
?? Onchain Government Securities: High interest rates have fueled demand for safe, high-yielding onchain T-bills, pushing the value of tokenized U.S. Treasury products up over 1,000% since early 2023, now totaling $1.29 billion. BlackRock’s tokenized US Treasury fund BUIDL, valued at $382 million, has recently overtaken Franklin Templeton’s fund to become the largest, with crypto hedge funds and market makers leveraging BUIDL as collateral for trading.? Tokenized Asset Market: Expected to hit $16 trillion by 2030, this market's size is comparable to the current GDP of the EU, marking a significant milestone in asset tokenization.?? Innovations in StablecoinsGlobal payment giants are simplifying the use of stablecoins, making them more accessible and practical:
? Small Businesses and CryptoThe grassroots adoption of crypto is also noteworthy, with small businesses—the most trusted institution in the U.S.—increasingly turning to crypto solutions. A significant 68% believe crypto can address key financial challenges, notably transaction fees and processing times.The Talent and Regulatory Imperative?? U.S. Leadership in the Crypto SpaceMaintaining U.S. leadership in crypto is crucial. A significant 79% of Fortune 500 executives express a desire to collaborate on initiatives with U.S. partners, up from 73% last year. Furthermore, 72% agree that a USD-backed digital currency is essential for keeping the U.S. economy competitive globally.
?? learn more:
VALUE PROPOSITION
GOLDE GOOSE ADMITTED TO PUBLICLY LIST IN MILAN
WWD: Borsa Italiana and Italy’s watchdog CONSOB have approved the IPO.There’s now no impediment to the initial public offering of?Golden Goose, as the admission to listing on Euronext Milan has been approved by?Borsa Italiana and Italy’s watchdog CONSOB.
Key Takeaways:
?? As reported,?the first day of trading is expected to be June 21 and?the price range of?Golden Goose?shares has been set between 9.50 euros and 10.50 euros. This implies a market capitalization of approximately 1.69 billion euros to 1.86 billion euros for the Italian company. The offer period is expected to start today and end on or around June 18. The final offer price is expected to be published on June 19.The IPO is aiming at strengthening the group’s capital structure,?allowing operating investments and reducing the company’s debt
.?? Yanmei Tang, analyst at Third Bridge, said: “Golden?Goose?has built a strong reputation in luxury sneakers, and its loyal customers have helped it stay strong over the past year and a half, even as inflation and uncertainty hit other brands hard. They broke new ground in the sneaker world by offering personalized laces as an add-on, rather than just tossing them in the box. It’s a quirky yet smart move that highlights the power of personalization.”
?? Navina Rajan, senior private capital analyst at Seattle-based PitchBook, said the listing of Golden?Goose “is another example of recovery in the PE-backed listings market, especially within the consumer beauty segment.” Rajan pointed to?Puig’s “significant” IPO,?which “added to the testing points for market sentiment,” and said that, “given the good performance of other listings so far this year such as Galderma and CVC, favourable proof points continue to add precedence for most listings from a full European IPO pipeline, where?Golden?Goose?fits the profile – a high-margin business priced within a reasonable range versus comps.”
?? Thirty percent of Golden Goose capital will be floated by the current sole shareholder of the company,?Astrum S.a.p.A. of Astrum 4 S.r.l. & C.?In 2020, the company was acquired by the private equity fund?Permira?from the Carlyle Europe buyout fund. The price tag was 1.28 billion euros.
?? From 2021 to 2023, Golden Goose reported a 23 percent compound annual growth rate in revenues and an earnings before interest, taxes, depreciation and amortization adjusted margin of around 34 percent?last year. In 2023, the company registered sales of 587 million euros, an increase of 18 percent compared with 500.9 million euros in 2022, an adjusted EBITDA of 200 million euros, increasing 19 percent, and an adjusted operating profit 149 million euros, growing 22 percent. In the first quarter of the year, revenues amounted to 148 million euros, up 11 percent compared with the same period in 2023.
?? learn more:
AI Engineer| LLM Specialist| Python Developer|Tech Blogger
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Executive Director Marketing @ AL-Amin Export Ltd | Fine Arts
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Executive Director Marketing @ AL-Amin Export Ltd | Fine Arts
8 个月#Sweater #Jumper #Cardigan Manufacturer #From Bangladesh #More affordable Price #Made by 100% Cotton ,Combed Cotton & Organic Cotton #Merino & #Blended Wool Yarn?????????
Executive Director Marketing @ AL-Amin Export Ltd | Fine Arts
8 个月#Sweater #Jumper #Cardigan Manufacturer #From Bangladesh #More affordable Price #Made by 100% Cotton ,Combed Cotton & Organic Cotton #Merino & #Blended Wool Yarn?????????