DTC Dispatch #029

LATEST NEWS

Should the sales tax on secondhand items be eliminated?

Ikea Canada and some US retail leaders want to remove sales tax on used items. They say it's fair because these items were already taxed when sold as new. Plus, it encourages people to buy used stuff, which helps the environment by reducing waste and the resources needed for new products.

This change would make buying used goods cheaper, boosting the market for secondhand items. It's good for sellers and buyers alike.

Cutting taxes on secondhand items fits with the growing focus on sustainability. It means fewer new products are made, which reduces pollution and conserves resources. But it's important to figure out how to do this without losing too much tax revenue and to prevent cheating in the resale market.

Overall, this idea balances economic and environmental concerns and could make shopping fairer and greener.

Our take: Removing sales tax on used items, suggested by Ikea Canada and some US retail leaders, is a good idea for two main reasons: fairness and helping the environment.

First, it's fair because these items were already taxed when sold as new. So, taxing them again when resold seems unfair to buyers. Removing this tax is fair to consumers and follows good financial principles.

Second, it helps the environment. Buying used items means less demand for new products, which reduces pollution and saves natural resources. This change encourages a shift towards more eco-friendly habits and supports a circular economy where goods are reused and recycled.

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L’Oréal Presses on Beauty Tech With Advanced Bioprinted Skin Technology, Gen AI Content Lab to Augment Creativity

At Viva Technology in Paris today, L'Oréal will unveil innovations under the theme 'Beauty for Each, Powered by Beauty Tech,' reinforcing its dedication to personalized, inclusive, and responsible beauty. These innovations include advanced skin and hair diagnostics, a GenAI-powered personal beauty assistant, a GenAI Beauty Content Lab named CREAITECH for enhanced creativity, an innovative hair dryer using infrared light technology, a micro-resurfacing device for improved skincare, and a realistic technology platform for scientific research and product testing, closely resembling human skin.

Enabled by the fusion of biology, mechanics, and electronics, L'Oréal's Skin Technology more accurately replicates the diverse properties of real human skin, encompassing conditions like eczema and acne, as well as the ability to tan and heal from injury. Collaborating with startups and renowned institutes globally, L'Oréal is actively refining the technology to develop skin with sensory capabilities. This advancement in Skin Technology aims to elevate product testing standards and promote cruelty-free beauty, aligning with L'Oréal's commitment since 1989.

Our take: L'Oréal's introduction of new beauty tech at Viva Technology in Paris marks a big leap for the cosmetics industry. Their focus on personalized, inclusive, and responsible beauty shows they're tuned in to what consumers want.

The lineup of innovations, from skin and hair diagnostics to GenAI-powered beauty tools, proves their commitment to using cutting-edge tech to enhance individual beauty experiences. This emphasis on customization is especially important in an industry that's often criticized for lacking diversity.

However, we should approach these advances with caution. We need to think about privacy, the long-term effects of beauty tech on health, and how they might affect societal beauty standards.

Overall, L'Oréal's unveiling of these beauty technologies is a positive move for the industry. Their focus on personalization, inclusivity, and ethics is setting a new standard for beauty companies worldwide.

Target Fashion Sales Slip Despite Boost From DVF

Target Corp. is cautiously optimistic about growth this year, despite challenges in the consumer market.

Although its fashion segment faces ongoing difficulties, Target's apparel business improved in the first quarter. Boosted by partnerships with Diane von Furstenberg and strong performance in its All In Motion and Wild Fable brands, the retailer reported a smaller decline in apparel sales compared to the previous quarter. Additionally, Target has begun wholesaling its own brands.

Michael Fiddelke, Target's chief operating officer and chief financial officer, stated that the company will not claim victory until it achieves positive comparable sales in apparel. He expressed satisfaction with the business's momentum and strategic plans.

Fashion is just one aspect of Target's strategy. Despite a slight 0.8 percent decline in first-quarter earnings to $942 million, or $2.03 per diluted share, compared to $950 million, or $2.05 per share, a year earlier, the company remains resilient.

Earnings missed analysts' expectations by 2 cents, with an average estimate of $2.05 per share according to Yahoo Finance. Revenues for the quarter ended May 4 also decreased by 3.1 percent to $24.5 billion from $25.3 billion.

Our take: Target Corp.'s cautious optimism in the face of market challenges reflects a prudent approach to navigating uncertain times. While the fashion segment struggles persist, Target's strides in its apparel business during the first quarter signify progress. This improvement, attributed to successful partnerships and robust performance in key brands, suggests that Target is adapting to market demands and exploring new avenues for growth, such as wholesaling its own brands.

Figs will outfit hundreds of healthcare professionals at the Summer Olympics

On Monday, DTC healthcare apparel brand Figs announced a multiyear partnership with the U.S. Olympic and Paralympic Committee and the LA28 Olympic and Paralympic Games to dress hundreds of Team USA healthcare professionals.

Initially, the collaboration will see the brand outfitting over 250 medical personnel at the upcoming Olympic and Paralympic Games in Paris this summer, according to a release shared with Retail Dive. Figs will continue to provide uniforms throughout the 2028 Olympic and Paralympic Games in Los Angeles.

The limited-edition collection for the Paris games will be available for purchase on the Figs website starting in July. The styles for the Figs-sponsored USA medical team kits will feature new designs with customized trim packages and exclusive Team USA branding, the company stated.

Our take: Figs' collaboration with the U.S. Olympic and Paralympic Committee and the LA28 Olympic and Paralympic Games is a significant merging of healthcare apparel and athletic excellence.

By dressing hundreds of Team USA healthcare professionals for the upcoming Olympic and Paralympic Games in Paris, Figs demonstrates its dedication to providing top-notch apparel for frontline healthcare workers. This partnership not only highlights the brand's support for healthcare professionals but also reflects the values of unity and excellence embodied by the Olympic Games.

Inspiration, Cocreation, Exploration: Chanel’s Cometes Collective Touches Down in New York

The Cometes Collective has arrived in New York City.

Recently appointed by Chanel as global makeup artist partners to develop the brand’s makeup collections, the trio has brought their latest projects to Chanel’s New York offices.

In an extensive interview with WWD, the three artists discussed their diverse backgrounds, experiences, and sources of inspiration — showcasing their distinct styles. Valentina Li, who conceptualized the brand’s recent spring products, complemented her tweed jacket with a sharp cobalt bob; Cécile Paravina opted for a natural look, while Ammy Drammeh, the mastermind behind the summer collection, wore a striking deep metallic greige eyeshadow.

With their varied aesthetic tastes, the trio nonetheless communicates seamlessly and often finishes each other’s sentences. Chanel's decision to appoint them in 2023 was based on this synchronicity and the diversity of viewpoints they bring.

Our take: The arrival of the Cometes Collective in New York City signifies a significant moment in the world of makeup artistry and fashion.

As recently appointed global makeup artist partners for Chanel, the trio brings a fresh perspective and innovative ideas to the brand's makeup collections. Their decision to bring their latest projects to Chanel's New York offices demonstrates a commitment to collaboration and creativity.