FT : Why luxury brands no longer shun collaborations

Why luxury brands no longer shun collaborations
Partnerships provide emerging designers with a platform

Until 2000, collaborations weren’t on the cards for luxury brands. That changed when Marc Jacobs, creative director of Louis Vuitton at the time, enlisted artist Stephen Sprouse for the brand’s spring/summer 2001 collection. The graffiti-clad totes that emerged from the collaboration were a commercial success and a precursor of all the fashion link-ups to come.

Today, collaborations with artists, celebrities, influencers, streetwear labels and high-street fashion brands are the norm for luxury houses from Balenciaga to Zegna. Even luxury houses that could be considered rivals have partnered up. That was the case with Fendace, the mash-up between LVMH-owned Fendi and Capri Holding’s Versace unveiled last September, and the Balenciaga/Gucci “Hacker Project” launched earlier in the year (although in this case, the houses share Kering as a parent company). In both collections, the brands sampled and reworked the other’s signature motifs, silhouettes and logos.

“It says everything about how fashion has changed,” says fashion and retail consultant Robert Burke. “Designers now realise that they can feed off each other’s talent and creativity.”

At their core, collaborations are clever marketing ploys by brands that enjoy a similar level of commercial success and popularity. More interesting are the instances in which storied luxury houses lend their platforms and means to emerging designers.

In November 2020, Chinese designer Rui Zhou released her first short film, Emerald, the story of a rabbit with an emerald eye and the magical powers that it bestows on other creatures. The actions and thoughts of the animals, played by models clad in Zhou’s skintight knitted garments, are narrated in the style of a fairytale.

It’s a sweet and quirky story that in little more than three minutes offers a window into the aesthetic world of the emerging designer. “We never thought about doing a narrative [film] because we didn’t have a budget,” says Zhou on the phone from Shanghai, where she is based. “Then Gucci gave us this chance.”

Zhou, who founded her label Rui in 2019, was one of 15 young brands picked and financed by the Italian luxury house to create short films for a week-long digital “film festival” called GucciFest in the first year of the pandemic. The festival was followed, in September 2021, by the launch of Gucci Vault, an ecommerce concept store where products created by the same 15 designers were made available for purchase, alongside vintage Gucci items.

Described by Gucci creative director Alessandro Michele as “a space for expressive, aesthetic, and social contaminations”, Gucci Vault functions as a hyper-curated, Gucci-owned, multi-brand retailer. Effectively, Gucci is sharing its customer base with other designers, while giving them cachet by association. The emerging labels’ products are even styled with Gucci items, blurring the lines between the brands. It is perhaps the most remarkable example of how luxury labels, once territorial and closed off, have embraced a more open, collaborative and supportive ethos within the industry.

Gucci is not the only one lending a hand to younger talent. During Milan Fashion Week in February this year, Dolce & Gabbana hosted the debut show of Miss Sohee, the brand launched in 2020 by South Korean designer Sohee Park, in its Alta Moda premises. The Italian brand invited Park to use its ateliers to create accessories and lent archive fabrics that were upcycled in the collection. In the same week, Valentino showcased designer Marco Rambaldi’s catwalk show on the @maisonvalentino Instagram account as part of a larger initiative that will see the Italian brand spotlighting an emerging designer each season. Giorgio Armani lent his showspace to young Milanese designers in 2013.

These initiatives come at a time of particular need for emerging designers. The top luxury brands have increased their market share during the Covid-19 pandemic at the expense of independent brands.

London-based designer Bianca Saunders, who was part of GucciFest and Gucci Vault, describes the initiative as “a massive turning point” for her brand. Zhou says that the reverberations were felt across her business, from more Instagram engagement to increased retail orders.

For big players, lending their names to other brands comes with obvious reputational risks. What is the advantage for them? “Big brands can be very visible in amplifying small brands by giving them a helping hand and a platform, which can help consumers’ perception of them,” says Kathryn Parker, senior associate in luxury goods research at Jefferies. “When millennials and Gen Z are deciding which brands to buy from, they very much think about values rather than just products and marketing campaigns.”

Partnerships of this kind also allow luxury houses to build early relationships with promising designers who might eventually become candidates for in-house roles. In the case of Gucci Vault, they also serve to diversify the offer and price range.

This genuinely supportive environment is commonplace, especially across the younger cohort. Designer Hillary Taymour of Collina Strada has built her brand around a community of friends while London-based Phoebe English launched a WhatsApp group in 2019 called Fashion on Earth to share information with other designers about sustainable practices.

Like Saunders, who has often called on fellow designer Saul Nash to choreograph her short films and shows, they are inspiring examples of this new climate. Luxury brands are just starting to catch up.

“It speaks to the psyche of fashion today,” says Burke. “There is strength in numbers and supporting each other as opposed to being in a stand-off.” 

>>> What to look at today - 4th of April 2022

Stocks rose Monday amid a rally in Hong Kong spurred by China’s move to ease a dispute with the U.S. over audits. Treasuries fell on the prospect of sharp Federal Reserve interest-rate hikes to fight inflation. Chinese tech shares in Hong Kong rose 3% after Beijing sought to modify a rule that restricts offshore-listed firms from sharing sensitive financial data with foreign regulators. That may allow the U.S. to gain full access to audits, reducing the risk of Chinese firms losing their Wall Street listings. S&P 500, Nasdaq 100 and European futures were steady, while the dollar was firm. Traders weighed the prospect of stiffer sanctions on Russia over the war in Ukraine. Some European governments are pushing for new penalties due to reports that Russian troops executed unarmed civilians in Ukrainian towns.
Oil paused a retreat sparked by the U.S. announcement of an unprecedented release of strategic reserves to fight elevated energy costs.  The Treasury yield curve is flashing more warnings that economic growth will slow as the Fed raises rates to tame stoked in part by commodities. The two-year U.S. yield has exceeded the 30-year for the first time since 2007, joining inversions on other parts of the curve. The Fed minutes later this week will shape views on the odds of a half percentage-point rate increase in May and provide key details on how the central bank will shrink its balance sheet.  A strong jobs report Friday bolstered the case for the Fed to push up borrowing costs. The U.S. added 431,000 jobs in March while the unemployment rate fell to 3.6%, near its pre-pandemic low. In China, where markets are closed for a holiday, most of Shanghai’s 25 million residents are under some form of Covid lockdown. State media also reported a new subtype of the omicron variant.
Key events to watch this week:
  • Reserve Bank of Australia rate decision, Tuesday
  • Fed Governor Lael Brainard speaks, Tuesday
  • Federal Reserve minutes, Wednesday
  • China Caixin composite and services PMI, Wednesday
  • EIA crude oil inventory report, Wednesday
  • Philadelphia Fed President Patrick Harker speaks, Wednesday
  • St. Louis Fed’s James Bullard, Atlanta Fed’s Raphael Bostic, Chicago Fed’s Charles Evans speak at separate events, Thursday
  • Reserve Bank of India rate decision, Friday

Nikkei +0,01% HangSeng +1,67% CSI +1,27% Shanghai +0,94% Shenzen +0,47%

Eur$ 1;1048 CNH 6,3698 CNY 6,3629 122,66 GBP 1,3123 CHF 0,9263 RUB 85,5480 TRY 14,6879 WTI$ 99,72 GOLD 1,919,85 BTC 46,230 -3% ETH 3500 +0,03%

S&P +0,19% Nasdaq +0,17% EuroStoxx +0,44% FTSE +0,43% Dax +0,59% SMI +0,68%

Macro :
- U.S. Recession Seen Most Likely to Start Next Year: MLIV Survey
- Morgan Stanley’s Wilson Says ‘Bear Market Rally’ in Stocks Over
- Coatue Ends Quarter Down 10% After Side-Pocketing Investor Cash
- Tiger Global’s Hedge Fund Sinks 34% This Year as Key Stocks Fall
- U.S. Navy Sends $4 Billion Wish List to Congress
- A Hundred Firms Pull $45 Billion of Deals Since War in Ukraine

Keep an eye on :
- AED BB Aedifica Invests EU126M in Two Care Home Portfolios
- AGS BB : Ageas Sees RPN(I) Effect Boosting 1Q Net by EU61.6m
- AIR FP : U.S. Team Has Arrived in China to Help Fatal Jet Crash Probe
- BABA US : Watch Didi, Alibaba After China’s Plan To Give Access to Audits
- BARC LN : Barclays’s $600 Million Blunder Follows Years of U.S. Run-Ins
- BBVA SM : BBVA Agrees to Pay Merlin EU1.99b to Rebuy 662 of Its Branches
- BAYN GY : Bayer Thrombosis Drug Asundexian Shows Positive Results in Study
- CSGN SW : Credit Suisse: Can’t Estimate Virtuoso, High Income Fund Losses
- DHER GY : Delivery Hero Updates FY Outlook After 2-Month GMV, TSR Growth
- DIE BB : Belgian March Car Registrations Sink 18%; D’Ieteren Has 21.2%
- GAZP RM : U.K. May Nationalize Gazprom Local Retail Arm Within Days: Sky
- GPH LN : Global Ports Holding Says It’s Not Violating Sanctions on Russia
- HMB SS : Shein’s $100 Billion Valuation Would Top H&M and Zara Combined
- IBE SM : Iberdrola Gets U.K. Green Light for England-Scotland Power Cable
- ITX SM : Fashion Startup Shein Said to Raise Funds at $100 Billion Value
- ITX SM : Shein’s $100 Billion Valuation Would Top H&M and Zara Combined
- KPNA NA : KPN Hits 5-Year High as Regulator Likes Plan to Cut Fiber Price
- LUN DC : Lundbeck Drug Linked to Improvement for Some Migraine Sufferers
- DRLCO DC : Maersk Drilling Gets $107.5 Million Drillship Order From Shell
- MRL SM : BBVA Agrees to Pay Merlin EU1.99b to Rebuy 662 of Its Branches
- AERO SW : Montana Aerospace FY Adjusted Ebitda EU56.1M Vs. EU45M Y/y
- NESTE FH : Neste Closes EU88m Grant for Clean Hydrogen Project in Finland
- NKLA US : Nikola Slips After $1.2b Mixed Securities Shelf Registration
- NDX1 GY : Nordex Detected a Cyber Security Incident March 31
- NOVN SW : Novartis Sees at Least $1B SG&A Savings by ‘24 Amid Overhaul (1)
- PSH NA : Pershing Square Holdings March Net Performance +10.6%
- RNO FP : Renault’s Finance Company Mulls Options for Its Russian Venture
- ROG SW : Roche Covid-19 Therapy Gets FDA Priority Review
- SFOR LN : Permian Investment Raised S4 Capital Stake to 4.1%, FT Says
- SAN FP : FDA Accepts Sanofi Dupixent for Priority Review for 12 Year Olds
- SHEL LN : Shell Can’t Use Gazprom’s Ruble-Payment Method Due to Sanctions
- STLA US : FCA 1Q U.S. Total Sales Decline 14%; Retail Sales Down 13%
- TIT IM : KKR May Step Back From Bid for All Telecom Italia: Messaggero
- TIT IM : KKR Plans to Abandon Telecom Italia Deal Without Due Diligence
- TIT IM : Telecom Italia, CDP to Start Talks on Integrating Networks
- TEF SM : Telefonica Tech to Grow Through M&A, CEO Tells Expansion
- TSLA US : Tesla Notches Record, Delivering 310,048 Cars in First Quarter
- URW NA : Unibail-Rodamco-Westfield to Sell Gera Arcaden for EU116M

>>> Europe : Brokers Upgrades & Downgrades - 4th of April 2022

>>> Up
* Bayer Raised to Overweight at Barclays; PT 85 euros
* Danske Bank Raised to Market Perform at KBW; PT 130 kroner
* Just Group Raised to Overweight at Barclays; PT 125 pence
* Kingfisher Raised to Buy at Deutsche Bank; PT 335 pence
* Logitech Raised to Buy at Goldman; PT 107 Swiss francs
* Swedbank Raised to Buy at Citi; PT 170 kronor

>>> Down
* Aviva Cut to Equal-Weight at Barclays; PT 480 pence
* CareTech Cut to Hold at HSBC; PT 725 pence
* DNB Bank Cut to Underperform at KBW; PT 200 kroner
* Electrolux Cut to Hold at Handelsbanken
* Essity Cut to Hold at Handelsbanken
* Grand City Properties Cut to Underweight at Barclays
* Snam Cut to Sell at Citi; PT 4.50 euros
* Terna Cut to Neutral at Citi; PT 8 euros
* Wartsila Cut to Hold at Handelsbanken

>>> Initiation
* ADP Reinstated Underweight at Barclays; PT 98 euros
* Aena Reinstated Equal-Weight at Barclays; PT 145 euros
* Air France-KLM Reinstated Equal-Weight at Barclays
* Embracer Reinstated Neutral at Goldman; PT 85 kronor
* *HEXAGON RATED NEW BUY AT BERENBERG, PT SEK155
* IAG Reinstated Overweight at Barclays; PT 210 pence
* EasyJet Reinstated Equal-Weight at Barclays; PT 705 pence
* Enav Reinstated Overweight at Barclays; PT 4.90 euros
* Fraport Reinstated Underweight at Barclays; PT 54 euros
* Lufthansa Reinstated Underweight at Barclays; PT 5.20 euros
* Ryanair Reinstated Overweight at Barclays; PT 17.60 euros
* Siemens Gamesa Reinstated Hold at Jefferies; PT 17.30 euros
* Stelrad Group Rated New Buy at Peel Hunt; PT 250 pence
* Zurich Airport Reinstated Overweight at Barclays

>>> Call
* Bayer Upgraded on Asundexian, Strong Crop Science: Barclays
* Hexagon Gets New Buy at Berenberg on Top-Line Growth Potential
* Morgan Stanley’s Wilson Says ‘Bear Market Rally’ in Stocks Over
* Snam, Terna Cut at Citi Following Relative Stock Outperformance
* Ocado Price Target Cut at Kepler Amid Uncertain Macro Outlook

WSJ : TikTok Brain Explained: Why Some Kids Seem Hooked on Social Video Feeds

TikTok Brain Explained: Why Some Kids Seem Hooked on Social Video Feeds
The dopamine rush of endless short videos makes it hard for young viewers to switch their focus to slower-moving activities. ‘We’ve made kids live in a candy store.’

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Remember the good old days when kids just watched YouTube all day? Now that they binge on 15-second TikToks, those YouTube clips seem like PBS documentaries.

Many parents tell me their kids can’t sit through feature-length films anymore because to them the movies feel painfully slow. Others have observed their kids struggling to focus on homework. And reading a book? Forget about it.

What is happening to kids’ brains?

“It is hard to look at increasing trends in media consumption of all types, media multitasking and rates of ADHD in young people and not conclude that there is a decrease in their attention span,” said Carl Marci, a psychiatrist at Massachusetts General Hospital in Boston.

Links between attention-deficit hyperactivity disorder diagnoses and screen time are subject to debate, since many factors could account for a steady rise in cases. Yet even parents whose children don’t qualify for that medical diagnosis say their kids are more distracted. Emerging research suggests that watching short, fast-paced videos makes it harder for kids to sustain activities that don’t offer instant—and constant—gratification.

One of the few studies specifically examining TikTok-related effects on the brain focused on Douyin, the TikTok equivalent in China, made by the same Chinese parent company, ByteDance Ltd. It found that the personalized videos the app’s recommendation engine shows users activate the reward centers of the brain, as compared with the general-interest videos shown to new users.

Brain scans of Chinese college students showed that areas involved in addiction were highly activated in those who watched personalized videos. It also found some people have trouble controlling when to stop watching.

“We speculate that individuals with lower self-control ability have more difficulty shifting attention away from favorite video stimulation,” the researchers at China’s Zhejiang University wrote.

A Wall Street Journal investigation found that TikTok only needs one important piece of information to figure out what you want: the amount of time you linger over a piece of content. Every second you hesitate or rewatch, the app is tracking you. Photo illustration: Laura Kammermann/The Wall Street Journal
A Wall Street Journal investigation last year found that TikTok’s algorithm figures out what users like based on the amount of time they watch each video, and then serves up more of the same. TikTok said it is now developing ways to diversify the videos its algorithm recommends to viewers.

A TikTok spokeswoman said the company wants younger teens to develop positive digital habits early on, and that it recently made some changes aimed at curbing extensive app usage. For example, TikTok won’t allow users ages 13 to 15 to receive push notifications after 9 p.m. TikTok also periodically reminds users to take a break to go outside or grab a snack.

Kids have a hard time pulling away from videos on YouTube, too, and Google has made several changes to help limit its use, including turning off autoplay by default on accounts of people under 18.


Brain science
When kids do things that require prolonged focus, such as reading or solving math problems, they’re using directed attention. This function starts in the prefrontal cortex, the part of the brain responsible for decision making and impulse control.

“Directed attention is the ability to inhibit distractions and sustain attention and to shift attention appropriately. It requires higher-order skills like planning and prioritizing,” said Michael Manos, the clinical director of the Center for Attention and Learning at Cleveland Clinic Children’s.

Kids generally have a harder time doing this—and putting down their videogame controllers—because the prefrontal cortex isn’t fully developed until age 25.

Dr. Manos said the ever-changing environment of TikTok doesn’t require sustained attention. “If kids’ brains become accustomed to constant changes, the brain finds it difficult to adapt to a nondigital activity where things don’t move quite as fast,” he said.

TikTok is now allowing users to make videos as long as 10 minutes, up from the previous maximum of 3 minutes and from its initial 60-second maximum.

“In the short-form snackable world, you’re getting quick hit after quick hit, and as soon as it’s over, you have to make a choice,” said Mass General’s Dr. Marci, who wrote the new book “Rewired: Protecting Your Brain in the Digital Age.” The more developed the prefrontal cortex, the better the choices.


The infinite candy store
Dopamine is a neurotransmitter that gets released in the brain when it’s expecting a reward. A flood of dopamine reinforces cravings for something enjoyable, whether it’s a tasty meal, a drug or a funny TikTok video.

“TikTok is a dopamine machine,” said John Hutton, a pediatrician and director of the Reading & Literacy Discovery Center at Cincinnati Children’s Hospital. “If you want kids to pay attention, they need to practice paying attention.”

Researchers are just beginning to conduct long-term studies on digital media’s effects on kids’ brains. The National Institutes of Health is funding a study of nearly 12,000 adolescents as they grow into adulthood to examine the impact that many childhood experiences—from social media to smoking—have on cognitive development.

The study’s investigators are focusing now on the impact specific apps have on children’s brain development.

The results aren’t in yet. Bonnie Nagel, one of the study’s investigators and a professor of psychiatry and behavioral neuroscience at Oregon Health & Science University, said she predicts they will find that when brains repeatedly process rapid, rewarding content, their ability to process less-rapid, less-rewarding things “may change or be harmed.”

As media gets faster and more stimulating, it’s bumping up against the realities of the nondigital world, and parental expectations.

“It’s like we’ve made kids live in a candy store and then we tell them to ignore all that candy and eat a plate of vegetables,” said James Williams, a tech ethicist and author of “Stand Out of Our Light: Freedom and Resistance in the Attention Economy.” “We have an endless flow of immediate pleasures that’s unprecedented in human history.”


What you can do
Parents and kids can take steps to boost attention, but it takes effort, the experts say.

Swap screen time for real time. Exercise and free play are among the best ways to build attention during childhood, says Johann Hari, author of “Stolen Focus: Why You Can’t Pay Attention—and How to Think Deeply Again.” Dedicating after-school and weekend time for sports, play dates, family hikes or trips to the park can help focus the brain.

“Depriving kids of tech doesn’t work, but simultaneously reducing it and building up other things, like playing outside, does,” Mr. Hari said.

Practice restraint. Your child’s brain won’t inherently want to set aside a device that’s delivering entertainment, Dr. Nagel said. “When you practice stopping, it strengthens those connections in the brain to allow you to stop again next time.”

There are various ways to do that, such as scheduling regular times each day when tech isn’t used—such as at the dinner table—and by setting time limits on screen sessions.

Use tech’s own tools. TikTok has a screen-time management setting that allows users to cap their app usage. Parents can also establish screen-time limits for their kids with Family Pairing, which requires parents to create a TikTok account and link it to their teen’s.

YouTube allows parents to set time limits for younger kids. For kids using the regular YouTube app, parents can create supervised accounts using Google Family Link to manage screen time, provide take-a-break reminders and choose age-appropriate content.

Parents can also set time limits on specific apps directly from Apple and Android devices.

Ensure good sleep. Teens are suffering from a sleep deficit. Proper sleep is essential for focus and attention, which is why phones and other devices should be kept out of the bedroom at night.