Weekend Briefing: The conflict between Nike and StockX deepens

 Weekend Briefing: The conflict between Nike and StockX deepens

Welcome to the Glossy Weekend Briefing, a rundown of the week’s must-know fashion news. As a valued Glossy reader, you will receive it in your inbox over the next few Sundays. To ensure you continue to receive this email, sign up for the Glossy Weekend Briefing here. Enjoy!

Last week, Nike escalated its dispute with StockX, which was accused of resale platform to sell fake sneakers and maintain one of the biggest conflicts in the fashion resale space. Meanwhile, the crypto market is looking risky for investors, who should be interested in crypto-curious fashion brands, and China’s ongoing Covid lockouts have affected recent earnings. of luxury brands and visions of the future. Don’t forget to subscribe to the Glossy Podcast to hear the latest episode, an interview with Frame co-founder Erik Torstensson. –Danny Parisi, sr. fashion reporter

Nike fight with StockX

On Wednesday, the feud between Nike and StockX, the resale platform worth nearly $ 4 billion, rose to new levels. Nike publicly accused StockX of selling counterfeit Nike shoes, claiming that it had purchased four pairs of shoes from StockX that were confirmed to be counterfeit.

This is a huge rise in Nike’s anti-StockX rhetoric and one clearly intended to bolster Nike’s ongoing lawsuit against StockX filed in February. Nike sued StockX for selling NFTs with the Nike brand and logo. StockX began selling these so -called Vault NFTs in January using images of real -life sneakers, most of them Nike. One of the believed fake sneakers Nike acquired from StockX was the “Patent Bred” Air Jordan 1 High OG, which was also one of the sneakers StockX sold in a Vault NFT.

In the end, the conflict resulted in a dispute over what exactly is an NFT. Nike’s argument is that StockX creates and sells a product using the trademark image that belongs to Nike. StockX argues that what it actually sells is a virtual receipt of ownership of a real pair of sneakers held in the StockX vault that users can buy and sell to each other. In particular, NFT holders never receive physical sneakers.

It’s a thin line between two definitions and one that doesn’t have much legal pattern behind it. StockX, as a marketplace where Nike products can be purchased, is allowed to use Nike to advertise it and always has, even if Nike technically has no official partnership with StockX.

But even that arrangement warrants some grumbling from brands. In 2019, Streetwear designer Jeff Staple expressed his concern to Glossy about resellers being allowed to use the branded image of the brands they sell in their advertising. it leaving brands with no control over how their brand is presented and can lead to possible confusion among consumers that the brand is officially involved.

Conflict is also interesting for three other reasons. First, StockX, and other resellers, have consistently made large claims about their ability to authenticate products, an area of ​​particular interest in products aimed at collectors of sneakers and luxury handbags or unique collections, all sold on StockX. Nike’s weakening of StockX’s ability to authenticate could lower consumers ’confidence in StockX products.

StockX’s opposition to Nike’s fake claim is even stronger. In a public statementit called Nike’s fake allegations a “panic and desperate attempt to resuscitate its lost legal case against our new Vault NFT program.”

Second, while StockX sells sneakers from all sorts of brands, it can’t be denied that Nike forms the backbone of the company. Nike is the most in-demand sneaker brand in the world and StockX is built on the strength of selling Nike sneakers.

In the past, Nike didn’t seem to pay much attention to what resellers did. But now with Nike launching its own NFTs and its own sales platform, StockX has suddenly become competitive. Nike cannot prevent StockX users from buying or selling Nike products on the market, so cases like this are Nike’s only option to reduce competition.

“Ultimately brands have no control over third -party platforms,” said Andy Ruben, CEO of branded recommerce company Trove. “In those days of retail wholesalers, if Best Buy violated Apple’s wishes, Apple would just cut them off. There was no such option in a third -party marketplace.”

Finally, Nike’s claims on fake sneakers are similar to Chanel’s claims that The RealReal cannot guarantee the authenticity of Chanel products sold on the site. Both claims signal a rift between brands and resellers. While many brands are starting to embrace the idea of ​​reselling, they are more interested in curbing home sales. Brands like Madewell, Levi’s and Patagonia have all launched their own sales programs, and even if no one is attacking a third-party platform like the way Nike or Chanel are, they are now directly competing with them for a second sale of their own clothes. .

Likewise, third -party vendors have no obligation to do what brands want, according to Ruben.

“They have no ultimate need for a brand other than the logo that certifies the product,” he said.

Crypto market crash

Panic erupted among crypto investors on Thursday morning after the sharp decline in double -digit cryptocurrencies Luna and Terra, the latter of which was a “stablecoin” intended to always sell at $ 1 per coin. By Thursday afternoon, Terra was selling for 23 cents per coin. Those who invested their money in Terra’s partner Luna lost billions of dollars in total, sending reverberations to other parts of the crypto world, causing other big currencies like of Bitcoin and stablecoin Tether sunk, as well. Tether fell 95 cents and Bitcoin fell nearly 9%, the lowest since 2020.

While it’s too early to say what the impact of Thursday’s market panic will be on the rest of the crypto world, fashion brands need to be aware. The fashion industry has wholeheartedly accepted NFTs, which are often only bought in cryptocurrency, and has even begun accepting cryptocurrency as payment, as Gucci announced on Tuesday. If other currencies collapse – especially Tether which is the largest stablecoin and provides liquidity to many other currencies – it could be bad news for all crypto -related projects invested by fashion brands. such as Nike with its NFTs or Off-White accepting crypto payments.

Fashion requires tennis

Tennis has been everywhere in fashion this week. Fabletics, Louis Vuitton, Michael Kors and Terez all launched tennis categories last week, and Sporty & Rich, UpWest and Lululemon have done the same for the past two months. Tennis companies such as Wilson and Universal Tennis have also developed a growing collection of streetwear and the latter through a partnership with Fabletics.

For Glossy this week, I look at why the fashion world has such an interest in tennis today. In part, this is simply because the game has recently become popular in the U.S. In 2020 and 2021, tennis adoption will grow by more than 20% annually, with North American CEO of Lacoste Robert Aldrich as tennis is a “socially distant sport.”

China’s lockouts have affected luxury marketing

Ongoing lockouts to curb the spread of Covid-19 in China have come out several times in luxury brands ’earnings reports this week, but the forecast is different depending on what you ask.

Holding company Tapestry, the owner of Coach and Kate Spade, says the locks have hurt Chinese sales, dropping it among its brands ’mid-teen percentage points. In response, Tapestry lowered year -round forecasts in anticipation of China’s continued loss. Meanwhile, Italian luxury brand Tod’s is also expecting losses in China but has not lowered its full-year forecast, telling investors on Wednesday that it still plans to achieve its goals regardless of its performance. in China.

On the calendar

Join us for the Glossy E-Commerce Forum in NYC tomorrow, May 16 as we gather leaders from influential brands and retailers to explore how they win customers, push sales and rethink the concept in omnichannel. If you purchase a pass, you’ll also get access to Commerce Week Town Hall which takes place almost every Tuesday at 11am EDT.

Source link

Related post