Kering is selling its beauty business to L’Oréal for €4 billion ($4.3 billion). The move will give Kering a much-needed cash infusion as it carries out a turnaround under new CEO Luca de Meo, while positioning L’Oreal to become a leader in luxury fragrance and beauty. The sale marks a bold first step by de Meo, who has the challenge of revitalizing Kering’s business amid considerable uncertainty in the luxury market. And it is a major strategic move for L’Oréal, positioning it as one of the world’s top producers of luxury fragrances at a time when the category is a driving force behind beauty growth.

Gap, Reformation, Balenciaga, and Alo Yoga are expanding into new categories to futureproof their businesses amid uncertainty. As spending trends shift, fashion companies are trying to shift with them. Pushing into resilient categories like beauty and jewelry may look promising on paper, but success is not assured. Brands face considerable competition from companies with more experience, and convincing customers that new offerings deliver quality and value can be a challenge.

Luxury brands rethink China approach as downturn drags on: Labels like Versace, Valentino, and Balenciaga are dialing back discounts, telegraphing exclusivity to wealthy shoppers.

Gucci sales slid 25% in Q1: The brand’s struggles put parent company Kering in a tough spot as it attempts to navigate a slowdown in luxury goods spending.

Luxury brands shake up their creative ranks: While Gucci is betting on provocateur Demna to revitalize its brand, Versace opts for a steadier path.

Mytheresa expands China presence in long-term bet on luxury growth: While the retailer is bullish on its ability to woo big spenders, the country’s economic crisis and booming daigou industry could weigh on its near-term prospects.

To ensure your brand doesn’t fall into a bland or copycat marketing spiral, our analysts said AI should be a starting point and that the human element is essential. They also warned of conformity. Here are their insights into the risks that generative AI poses to brand originality and where the technology can help brands experiment.

Luxury spending in the US is returning to historical norms: Shoppers are increasingly focused on saving money and travel.

Social media ad spend declined in the second half of 2022, and the category will make up a shrinking slice of total digital ad spend in the US this year, according to our forecast. But brands still need a social media presence. That’s where AI and ChatGPT can help. Here are six uses for generative AI in organic social campaigns.

The personal luxury goods sector is riding a wave of high demand in the US and China, buoyed by wealthier consumers who are relatively immune to the impact of price increases. But brands will need to appeal to the rising Gen Z consumer, as well as strengthen loyalty among their most important customers.

Nike files to trademark virtual goods as metaverse inches closer to reality: Many companies have already begun experimenting with branded digital items, but some are starting to take it more seriously as buzz around the metaverse intensifies.