Asia Fashion Weekly News Bulletin – ISSUE 14 Week of 12 May 2025
(1) Dior confirms leakage of customer data, urges caution among Chinese customers
Christian Dior notified some customers of a data breach revealing unauthorised access to personal information, including names and contact details, but confirmed that no financial data was compromised.
(2) Burberry to Cut 1,700 Jobs in US$127M Turnaround Push as Sales Decline Globally
Burberry plans to cut around 1,700 jobs, representing 20% of its workforce, as part of a cost-cutting initiative to reverse declining sales and restore investor confidence.
(3) Inside Gucci parent Kering’s ambitious plan to reduce water-related business risks
Kering, the parent company of Gucci, has launched its Water-Positive Strategy, requiring suppliers to reduce water use and improve wastewater quality across ten priority watersheds.
(4) Small parcels rule exemption gives respite to US customers
US customers of Chinese online retailers like Shein and Temu will benefit from reduced tariffs on small packages, dropping from 120 percent to 54 percent.
(1) Dior confirms leakage of customer data, urges caution among Chinese customers
(Photo Credit: Christian Dior/ Screenshot of the message)
French fashion house Christian Dior informed some customers via text message about a data breach involving unauthorised access to their personal information. The company discovered the breach and revealed that the external parties had accessed certain customer data, including names, gender, phone numbers, email addresses, mailing addresses, purchase amounts, and shopping preferences.
Dior assured customers that no financial information, such as bank account details or credit card data, was included in the compromised data. The text message was specifically sent to those whose information had been affected, as confirmed by Dior’s customer service.
The company urged its Chinese customers to stay vigilant and advised against opening or clicking on suspicious messages, calls, or emails from unknown sources. They also warned users not to disclose verification codes, passwords, or other sensitive information. A Dior customer service representative stated that the incident is still under investigation and that customers will be updated directly if there are any developments.
News Source: https://www.globaltimes.cn/page/202505/1333930.shtml
(2) Burberry to Cut 1,700 Jobs in US$127M Turnaround Push as Sales Decline Globally
(Photo Credit: Ssu/ Wikimedia Commons/ CC-BY-SA4.0)
Burberry has announced plans to cut around 1,700 jobs globally, which represents about 20% of its workforce. This move is part of a significant cost-cutting initiative aimed at reversing a sustained sales decline and restoring investor confidence in the iconic British luxury brand. The cuts will affect various staff, including those in offices, retail locations, and the Castleford trench coat factory, as the company aims to achieve £100 million (US$127 million) in savings by 2027.
Following the announcement, Burberry’s shares rose by up to 15% in London trading, buoyed by an earnings report that showed slightly better-than-expected results for the fiscal year ending 29 March 2025.
CEO Joshua Schulman, who took over in July, is focusing on Burberry’s British heritage and classic products like trench coats and scarves. While there is cautious optimism about the brand’s future, analysts highlight ongoing challenges such as global demand fluctuations and competition from LVMH and Kering. Schulman aims to align product offerings with a heritage-focused marketing strategy amid recent leadership changes.
News Source: https://www.btimesonline.com/articles/174273/20250514/burberry-to-cut-1-700-jobs-in-127m-turnaround-push-as-sales-decline-globally.htm#:~:text=Burberry%20announced%20Wednesday%20it%20will%20cut%20approximately%201%2C700,investor%20confidence%20in%20the%20169-year-old%20British%20luxury%20brand.
(3) Inside Gucci parent Kering’s ambitious plan to reduce water-related business risks
(Photo Credit: Shutterstock/ Dade 72)
Kering, the parent company of Gucci, recently launched its Water-Positive Strategy, which aims to address water-related business risks by requiring key suppliers, particularly tanneries, to set goals for reducing water withdrawals and improving wastewater quality. The strategy targets ten priority watersheds, starting with the Arno Basin in Tuscany, Italy, where many of its tanneries are located.
The new strategy involves collaboration with suppliers, as 83% of Kering’s water risks are outside its direct control. Strategic suppliers must declare their water stewardship strategies and commit to specific targets. This approach is notable for its emphasis on the entire value chain rather than just the company’s own operations, setting Kering apart from many other consumer goods companies.
Kering’s commitment stems from an analysis of its environmental impact, revealing that raw material processing accounts for a significant portion of its greenhouse gas emissions and water consumption. The company plans to revise its sourcing strategy to reduce reliance on water-intensive materials like cotton and leather, aiming to increase the use of recycled fabrics and invest in regenerative agriculture.
News Source: https://trellis.net/article/inside-gucci-parent-kerings-ambitious-plan-to-reduce-water-related-business-risks/
(4) Small parcels rule exemption gives respite to US customers
(Photo Credit: China Daily)
US customers of Chinese online discount retailers like Shein and Temu are benefiting from lower prices due to a reduction in tariffs on small packages. The Trump administration announced a decrease in tariffs from 120 percent to 54 percent for low-cost parcels that qualify under the de minimis exemption, which allows duty-free entry for items valued under US$800. This announcement coincided with a temporary pause in higher tariffs between the US and China.
The de minimis tax law allows inexpensive parcels to enter the US without customs inspections. Retailers such as Shein and Temu have gained popularity among US shoppers by quickly fulfilling orders at low prices. Starting 14 May 2025, a flat fee of US$100 will remain on packages, while a planned US$200 fee has been cancelled.
This reduction in tariffs is seen as a move to ease trade tensions between the US and China, allowing companies to import more goods. Estimates indicate that in 2018, over 75 percent of packages entering the US under de minimis were from China, a significant proportion that continues today.
News Source: https://global.chinadaily.com.cn/a/202505/15/WS682542e3a310a04af22bf656.html
