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This week in fashion news: One fast fashion giant now has more repeat customers than eBay, while a luxury retailer faces an inquiry over labor exploitation.
Temu gains repeat customers
Temu is winning the repeat customers race, beating eBay, Bloomberg reported. According to a recent survey by marketing firm Omnisend, 34% of shoppers purchase an item from Temu at least once a month. Meanwhile, only 29% of the 1,000 consumers surveyed shopped that frequently on eBay.
Why this matters: Temu’s success has been quick, but not surprising. The retailer is even giving e-commerce giant Shein a run for its money. A recent YouGov report found that almost 90% of Americans had at least heard of Temu. While not all of them were customers, it showed how much the brand has grown in terms of awareness since it launched in the US in late 2022.
Dior faces the heat
An Italian maker of handbags for French fashion retailer Dior was placed under judicial administration for a year, after an inquiry claimed the brand had hired Chinese subcontractors accused of exploiting workers, Reuters reported.
Why this matters: Dior joins the ranks of fashion retailers that have come under investigation for labor-related violations in recent years. In April, an Armani subsidiary was placed under judicial administration by an Italian court because its suppliers included Chinese companies accused of labor exploitations. Similarly, Zara parent Inditex was part of a French probe in 2021 for alleged abuse of the Uyghur community in China in its supply chain.
Under Armour inks a new deal
Under Armour and USA Football have joined forces for a multiyear partnership that will run through the 2028 Summer Olympics in LA, allowing the retailer to be the exclusive uniform, apparel, and footwear partner for the men’s and women’s national teams.
Why this matters: Sports partnerships are becoming increasingly common and important for fashion retailers. In March, Nike became the official sponsor and kit provider of the German men’s national soccer team, taking over from rival Adidas. Even Kim Kardashian-founded Skims has inked partnerships with several athletes, and last year became the official underwear partner of the NBA and WNBA.