On Mar. 15, Judge David Hurd of the US District Court for the Northern District of New York sided with Sephora on its motion to dismiss the lawsuit brought by New York resident Lindsey Finster.

The fourteen-page response stated that the plaintiff failed to “plausibly allege any of the claims contained in her complaint,” which accused Sephora of seven violations including fraud and breach of warranty over its “Clean at Sephora” designation.

The ruling stated that nowhere in Sephora’s definition of “clean” did it state that products were free of all synthetic or harmful ingredients, but rather was clear that its designation was explicitly described as containing products formulated without specific ingredients.

“Plaintiff’s complaint leaves the Court guessing as to how a reasonable consumer could mistake the ‘Clean at Sephora’ labelling and/or marketing to reasonably believe that the cosmetics contain no synthetic or harmful ingredients whatsoever,” read the judge’s ruling, adding “nowhere on the label or in the marketing materials plaintiff cites does defendant make any claim that the products are free of all synthetic or harmful ingredients.”

The ruling also stated that Finster included “a laundry list of synthetic ingredients found in ‘Clean at Sephora’ cosmetics that she claims have been known to cause irritation or other human harm,” but “does not allege that these are the same ingredients that Sephora claims are not found in its ‘Clean at Sephora’ cosmetics.”

The dismissal of Finster’s complaint included leave to amend and refile by Mar. 29.

Learn more:

Sephora Responds to Claim Its Clean Beauty Programme Is Anything But

The LVMH-owned beauty retailer asked a federal judge to dismiss a lawsuit alleging its “Clean at Sephora” designation is false advertising.

DUBAI — The last time I touched down in Dubai back in 2015, the question I was asked over and over again was whether the Emirati city-state could become a global fashion capital: could it make the leap from being a mere consumer of fashion to a creator of fashion, bringing together the critical elements of a fashion industry ecosystem, from education and design, to manufacturing, finance and technology?

Back then, the big four fashion capitals — New York, London, Paris and Milan — still dominated the industry, and it seemed like a long-shot for Dubai, better known for conspicuous consumption than industry clout, to become a fashion hub of this stature.

Eight years later, much has changed on planet fashion.

London and New York, while still on the map, have lost ground as global fashion capitals. While London continues be the training ground for the industry’s top creative talent (Chemena Kamali and Seán McGirr who debuted this season as creative directors at Chloé and McQueen, respectively, were both educated at London’s Central Saint Martins College of Art & Design), the city has been losing ground as a major fashion hub for years. Now, the implosion of Farfetch and Matches, and ongoing troubles at Net-a-Porter, have eroded London’s position as a hub for technological innovation in fashion and placed huge pressure on the city’s independent designers who rely heavily on them for scale and global distribution.

Across the pond, the challenges faced by America’s department stores have put similar pressures on New York’s independent brands. At the same time, the city’s one-time status as the industry’s commercial capital has waned, as Parisian mega-brands — Chanel, Dior, Louis Vuitton and Hermès — have surged to previously unimaginable scale.

Meanwhile, Shanghai, which had taken the leading position in the race to become the fifth global fashion capital, has become increasingly cut-off from the rest of the fashion industry amid growing geopolitical tensions, a slowing economy and a lingering sense of insularity after Covid lockdowns.

But the very notion of a fifth fashion capital may be a thing of the past. In a globalised world, the fashion industry, too, is more global than ever and the concept of fashion capitals may be shifting from a handful of citadels (which Shanghai or any other city might join) to a wider system of hubs, each with its own specialisation, orbiting one increasingly dominant centre: Paris.

Milan (and now Mumbai) specialise in offering high-quality manufacturing, London produces top creative talent, Seoul and Los Angeles churn out brand ambassadors. And Paris, truly the world’s fashion capital, is where it all comes together.

So where does this leave Dubai? That was the question on my mind as I sat down with more than a dozen fashion professionals last week — several of whom were expats who had come to Dubai for six months only to find themselves still there more than 10 years later — to learn more about life and the behind the scenes of the fashion industry in this city.

Before it was an international metropolis, Dubai was a fishing village. As vice president, prime minister, minister of defence, and now absolute ruler, Sheikh Mohammed bin Rashid Al Maktoum was instrumental to this transformation, helping to create companies like Emirates Airlines, Jumeirah Group and DP World, and real estate developments like the Palm Islands, Burj Al Arab and Burj Khalifa, establishing Dubai as a global brand.

As one person said to me, Sheikh Mohamed’s original direction to close advisors developing his vision for 2020 was not to think of Dubai as a city, but to think of Dubai as a business. That pragmatic mindset is evident in everything you see and hear happening in the city.

While the city has suffered significant setbacks, notably during the financial crisis of 2008, it’s back to blistering growth, buoyed by relatively low cost of living, advantageous tax rules and its decision to remain open to the world during the pandemic. In 2020 alone, the city’s population surged by 5.6 percent, making it one of the fastest growing cities in the world, now home to more than 3.6 million people.

There’s no doubt Dubai is creaking under this growth spurt. Everything used to be 20 minutes away. Now it’s more like 60, with gridlock to rival Los Angeles.

But Dubai is extraordinarily global and diverse in a way that I have not experienced anywhere else in the world. Emiratis only make up about 10 percent of the population, with more than 200 other nationalities represented. This was fully on display one night at the ninth anniversary party for La Faubourg du Cantine, the Dubai outpost for the original Parisian restaurant which closed in 2006, where I felt like I had been parachuted into the future. Not only was there a sense of openness and optimism that is hard to find these days in New York, London and Paris, there was also a global mix of culture where multiple languages were spoken interchangeably and music by a live band veered from 90′s R&B to classic Parisian show tunes to which everybody seemed to know the words. It was a vibe.

Part way through my trip, locals began warning me that a man-made rainstorm was coming, part of a “cloud seeding” programme run by the government that brings much needed hydration to this desert city. Then I received an alert on my phone advising me to stay home on Saturday, the day I had set aside to visit the city’s two expansive shopping malls, Dubai Mall and Mall of the Emirates. The next day, I woke up and parts of the city were flooded because there were no drainage systems to handle the torrential sheets of rain.

I decided to venture out anyway as it was my last day in town. Nobody else seemed to have heeded the warnings either. When we arrived at Dubai Mall, it was almost impossible to find a parking spot and the mega brand stores were heaving with customers. Dior, Chanel and Hermès were all doing brisk business. Quiet luxury brands Loro Piana, Zegna and Brunello Cucinelli were very busy too.

For many of these luxury brands, their Dubai Mall store is their number one store in the world, while the Middle East makes up roughly 10 percent of global sales, and growing. But that doesn’t mean the customers are all locals. Of course there were Emiratis, but also lots of Russians (many of whom seemed to have moved here after the war in Ukraine broke out) Indians and Western expats. It’s no wonder that for many luxury fashion brands, Dubai is where they meet a wide and unique cross-section of their global customers in one place.

As for its place among the world’s fashion hubs, Dubai may still be mostly about luxury consumption, but it is also emerging as the dominant hub for brands keen to engage with the wider MENA region, including the high-potential Indian market, only a two hour flight away. Condé Nast has opened an office here, with expectations that it is going to take back its licences for Vogue Arabia and GQ Middle East in order to operate them directly and reap more of the profits.

There are also fashion schools, including a two year-old outpost of Istituto Marangoni and FAD which is expanding its own course offering in the Dubai Design District in the coming months. And, yes there are more and more homegrown businesses like Rami Al-Ali’s couture, The Giving Movement’s activewear, Nadine Kanso’s Bil Arabi jewellery and Sole DXB’s trade shows that are making a global fashion impact.

So, yes, while at times, Dubai can still feel like being on a different planet from the rest of the fashion world with its Blade Runner-like city-scape, giant shopping malls and man-made storms, and while its global ambitions will never be fully realised until it confronts its record on human rights, it is also a place that is constantly changing. In some ways, Dubai is a window into the future of fashion as power and wealth shift Eastwards, seeding opportunities for fashion creativity and entrepreneurship to flourish far beyond fashion’s traditional capitals.

This Weekend on The BoF Podcast

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Last year, when I visited Cairo I visited a unique store concept called Maison69, the brainchild of Amir Fayo, whose underlying philosophy is to create retail and hospitality concepts rooted in culture and connection.

This week on The BoF Podcast, I sat down with Amir to discuss his unique personal history; his innovative and emotive approach to retail, and the philosophy that underpins it.

Imran Amed, Founder, CEO and Editor-in-Chief, The Business of Fashion

P.S. Limited in-person tickets remain to join us next week on March 22 at the BoF Professional Summit in New York. Save $100 off the full ticket price, using code BoFTECH100. Purchase your ticket now.

Plus, here are my other top picks from our analysis on fashion, luxury and beauty:

1. How Zara Is Beating Shein. By investing in an elevated product and shopping experience, Spanish retailers Inditex and Mango are seeing tremendous growth despite fierce competition from the likes of Temu and a cash-strapped consumer.

2. The Strategy Behind Miu Miu’s Explosive Growth. How did Miu Miu grow by 58 percent last year? CEO Benedetta Petruzzo breaks down the plan that has powered eye-popping acceleration in a slowing luxury market.

3. Nike’s Latest Sports Headache, Explained. FC Barcelona may take its on-field kit and fan merchandise in-house after falling out with Nike. Football industry executives and rival sportswear brands will be watching its next moves closely.

4. Lightning in a Bottle: Tapping Into the Niche Fragrance Boom. With independent perfume on a hot streak for investments and acquisitions, the fragrance market is only growing larger — and more competitive. Here’s what steps emerging brands need to take as they expand.

5. What’s Driving the Influencer Subscription Boom. As social media users tune out ads, content creators are putting more of their content behind a paywall. The hope is they can build a deeper connection with their followers – and make more money, too.

To receive this email in your inbox each Saturday, sign up to The Daily Digest newsletter for agenda-setting intelligence, analysis and advice that you won’t find anywhere else.

European Union governments backed a proposed law requiring large companies in the bloc to check if their supply chains use forced labour or cause environmental damage after Italy switched sides.

A ‘qualified majority’ of 15 EU countries making up 65 percent of the EU population had been required for the corporate sustainability due diligence directive to proceed to a final vote in the European Parliament, where lawmakers are expected to support it.

On Friday, 17 ambassadors from the 27 EU countries backed the law, with no votes against.

Belgium, which holds the six-month rotating presidency of the European Union, had twice tried unsuccessfully to secure EU support for the law as Germany and other EU members, including Italy, abstained.

Rome referred to complex negotiations involving also a new law on packaging waste, about which Italy has expressed some reservations, saying the right balance had now been struck. That law too was cleared on Friday.

With its economy focused on smaller companies, it was also among countries pushing for them to be largely excluded from supply chain audits.

Campaign group Anti-Slavery International praised the EU’s commitment to tackling forced labour, which it said affected over 20 million people around the world.

Lara Wolters, the EU lawmaker overseeing the law, said Friday’s endorsement was a step towards justice for people and the planet. Hubertus Heil, Germany’s centre-left labour minister, said he was also pleased.

Germany’s pro-business Free Democrats had led opposition, arguing it would burden business with excessive bureaucracy. Given it is part of the three-party governing coalition, it meant the government could not back the law.

The German Chamber of Commerce and Industry said the law would be a major burden and was impractical. Lobby group Business Europe said European companies would be exposed to litigation and put at a disadvantage to their global competitors, potentially forced to pull out of markets.

Under the CSDDD, due to enter force in 2028, large companies in the European Union will have to identify and take remedial action if they find their supply chains employ forced or child labour or damage the environment, such as through deforestation.

Fines for breaching the rules could be as much as 5 percent of a company’s global turnover.

Key to pushing the law through was a compromise on the definition of a ‘large company.’

The rules will apply to companies that have more than 1,000 employees and a net worldwide turnover above 450 million euros ($489.9 million). The previously proposed thresholds had been 500 employees and 150 million euros.

The rules will be phased in over a year, initially applying to firms with more than 5,000 employees and 1.5 billion euro turnover.

Reporting by Philip Blenkinsop; additional reporting by Giselda Vagnoni, Holger Hansen Simon Jessop; editing by GV De Clercq, Kirsten Donovan and Christina Fincher

Learn more:

EU Parliament, Council Agree to Ban Products Made With Forced Labour

European Union Council and the European Parliament on Tuesday reached a provisional agreement to ban the entry of products made with forced labour into the European single market.

Not so long ago, Chinese e-commerce giant Shein burst onto the fast fashion scene, threatening to unseat the likes of Zara and H&M as leaders of the category. The meteoric rise of Temu too has disrupted the industry, wooing consumers with jaw-dropping low prices — such as a pair of $0 fur boots that made the rounds on fashion media this week — at a time when spending is tight.

There have been casualties. Digital retailers like Asos and Boohoo Group lost significant share, while H&M is in a protracted slump as it struggles to find the right positioning in the market.

But two fast-fashion players have been largely immune, if not emboldened, by the new competition.

This week, Zara-owner Inditex reported record sales of €35.9 billion ($39 billion) in 2023, up 10.4 percent year-on-year. Fellow Spanish retailer Mango, a fast fashion chain similar to Zara in price and trendy assortment, also hit an all-time high with sales of €3.1 billion, a 19 percent annual lift.

Both retailers have been able to stand their ground against Shein and Temu by doing the seemingly impossible: creating an elevated consumer experience around fast fashion. In practice, that means selling higher-quality clothes (relative to Shein, at least) at higher prices, and investing in physical retail, where Shein and Temu have minimal presence.

Zara in particular has undergone a concerted push upmarket. It sells $699 leather coats and $439 leather blazers, and shoppers can find cashmere sweaters and evening dresses among the usual assortment of cheap, trendy staples. In its marketing, Zara also follows in the footsteps of luxury brands, working with photographer Steven Meisel on campaign imagery, and stylist Karl Templer for its biannual premium capsules, dubbed Studio Collections. The result is a sophisticated customer interface that starkly contrasts with the chaotic, graphic-heavy online shops of Shein and Temu.

Collaborations with London-based ready-to-wear label Studio Nicholson, which yielded two collections of elevated men’s and womenswear basics, also signalled Zara’s status as a bona fide player in fashion rather than just a fast fashion retailer.

“We see [Inditex’] proposition of good quality, good value fashion resonating more strongly even in its better penetrated region,” Jefferies analyst James Grzinic wrote in a note published Wednesday. “This at a time of growing discount propositions with poorer quality garments, and a luxury end becoming less affordable to the masses.”

The far smaller Mango has taken this cue from Zara’s playbook, investing in its own creative collaborators to differentiate its products. Last summer, it released a womenswear collaboration with Los Angeles-based label Simon Miller, followed by a menswear collection designed by heritage Italian tailoring company Boglioli in the fall.

Mango’s double-digit growth is largely driven by retail expansion. While the retailer is well known in Europe, the US market has become a key growth region. Mango opened a flagship store on New York’s Fifth Avenue in 2022, where its neighbours include Armani and the celebrity hangout The Polo Bar. Around 20 of the 130 stores Mango opened last year were in the US — currently its fifth largest market — while the brand plans to add a further 30 locations in the country by 2026. It will open 500 more stores worldwide in the next two years, taking its store count to 2,700.

The expansion is expected to help the retailer generate annual sales of €4 billion and double its net profit by 2026 as a result of the expansion, CEO Toni Ruiz told investors this week.

Meanwhile, Inditex is also investing in US retail, with Zara flagships planned for Los Angeles and Las Vegas set to open later this year.

Both retailers have invested heavily in the look and feel of brick-and-mortar locations, which has helped differentiate them from rivals, online and off. Zara in fact announced it would close 1,200 locations in 2020, or about a quarter of its footprint, but sales continued to grow because remaining stores were renovated and as a result have become more productive. Eighty of Mango’s existing stores were refurbished last year, according to the brand’s financial report.

Zara is testing a new store layout that’s bigger and more immersive in brand visuals; last year, it opened a 30,000-square-foot store in Rotterdam — just smaller than the average supermarket. CEO Óscar García Maceiras said the retailer will double the size of its flagship stores in Paris and Miami in 2024.

For now, retail is an outsize advantage against the Chinese e-commerce behemoths, which have yet to explore physical stores beyond Shein’s partnership with Forever 21.

The sustained growth for Inditex and Mango, despite brutal conditions across the retail sector, is a case study for other mass retailers struggling to engage their customers and losing market share to the likes of Shein and Temu.

By investing in the quality of products, retail experience and of creative identity, these two Spanish fast fashion retailers demonstrate the power of differentiation in the face of competition.

THE NEWS IN BRIEF

FASHION, BUSINESS AND THE ECONOMY

Federer-backed On disappoints with sales forecast and results. The shares tumbled as much as 19 percent in early New York trading, the most since On’s initial public offering in September 2021. On expects sales to grow at least 30 percent this year to 2.25 billion Swiss francs ($2.56 billion) or more.

Mango’s US expansion helps sales top $3 billion in 2023. Sales jumped 19 percent last year through a focus on party wear and fashion pieces for upmarket shoppers who are less sensitive to higher prices. Mango’s net profit rose to €172.1 million, from €81 million in 2022.

Inditex gets spring season boost from upmarket fashion. Sales jumped 11 percent at constant currencies in the first half of its spring season. Shares rose as much as 4.4 percent to a record high in early Wednesday trade after it reported the figures for Feb. 1 to March 11.

Zalando jumps as online fashion retailer sees return to growth. The stock jumped as much as 18.5 percent after the company also said late Tuesday it would buy back up to €100 million ($109 million) of shares, starting from March 13. The company expects a gross merchandise value of between 0 and 5 percent this year, after a 1.1 percent decline to €14.6 billion in 2023.

Dick’s Sporting Goods rises as sales surpass expectations. Comparable-store sales rose 2.8 percent for the quarter ended Feb. 3, much higher than the 0.8 percent predicted by Wall Street. The retailer issued an outlook for this fiscal year that fell in line with estimates.

Kering and Essilorluxottica possible suitors for Italy’s Marcolin, according to sources. Marcolin’s owner, private equity firm PAI Partners, is seeking a valuation of about 1.3 billion euros ($1.4 billion) for the company.

Li Ning considers taking the company private, sources say. Li is considering leading a consortium to buy out Li Ning Co Ltd, which has a market capitalisation of HK$52.85 billion ($6.8 billion). He owns slightly more than 10 percent of the company.

US retail sales rebound in February and weekly job claims fall. Retail sales rose 0.6 percent last month, the Commerce Department’s Census Bureau said. Consumer spending slowed as households grappled with inflation and higher borrowing costs.

EU probes AliExpress over possibly illegal online products. AliExpress could face a hefty fine after the European Commission on Thursday opened an investigation into dissemination of potentially illegal and pornographic materials. AliExpress said it respected all applicable rules and regulations in the markets where it operates.

Dior to show Cruise in Scotland. The gardens of Drummond Castle in Perthshire, Scotland will be host to Dior’s Cruise 2025 show. Maria Grazia Chiuri is expected to spotlight local traditions and collaborate with local artists and craftspeople.

THE BUSINESS OF BEAUTY

Hedi Slimane launches Celine beauty line. The designer is making a foray into cosmetics at the LVMH-owned megabrand-in-making. Celine’s Rouge Triomphe lipstick will debut in the autumn, with a full range of 15 satin-finished colours slated for January 2025.

The Body Shop files for bankruptcy in the US and Canada. The company filed for Chapter 7 insolvency putting about 400 jobs at risk including those in a distribution centre that still holds millions of dollars-worth of stock. In Canada, 33 of the 105 shops have closed, with the loss of more than 200 jobs.

CVC’s beauty chain Douglas sets terms for a $991 million IPO. The shares are being marketed at €26 to €30 each. The offering seeks to raise about €850 million for the company through the sale of new stock.

Eli Lilly partners with Amazon to deliver Zepbound and other drugs. The drugmaker said prescriptions sent to LillyDirect Pharmacy Solutions would now be delivered by either Amazon Pharmacy or Truepill, depending on the patient’s insurance coverage and other factors.

PEOPLE

Under Armour’s founder to return as CEO. Kevin Plank will return to the company as CEO, effective April 1, succeeding Stephanie Linnartz. Linnartz will step down as president, CEO and member of the board.

Allbirds names new CEO as sales slide continues. Co-founder Joey Zwillinger is stepping down and will be succeeded by COO Joe Vernachio on March 15. Allbirds announced the news as it reported that sales fell 14.7 percent in 2023 to $254.1 million, a decline attributed to lower selling prices driven by heavy discounting.

Modes hires Simon Whitehouse as CEO. Whitehouse previously led communications firm Reference Studios and JW Anderson. He will take the reins from Aldo Carpinteri, who founded the retailer, then called Stefania Mode, in Trapani, Sicily in 1971.

Naomi Campbell gets V&A exhibition. The exhibition will open in June and is sponsored by Boss. Dresses made for Campbell by Azzedine Alaïa and Valentino will be on display.

Bernard Arnault receives highest French honour. Founder of luxury conglomerate LVMH received the Grand-Croix de la Legion d’Honneur at the Elysee Palace. It’s the highest rank in a system of government recognition that dates back to Napoleon.

Harper’s Bazaar names new executive digital director. Lynette Nylander the publication from Dazed, where she most recently served as executive editorial director. In her new role, she will oversee content and strategy for the magazine’s website, including social media and report directly to editor-in-chief Samira Nasr.

MEDIA AND TECHNOLOGY

US House passes bill to force ByteDance to divest TikTok or face ban. The bill passed 352-65, with bipartisan support, but it faces a more uncertain path in the Senate. It is unclear whether China would approve any sale or if TikTok’s US assets could be divested in six months.

Chioma Nnadi unveils first cover for British Vogue. The cover stars British actress and singer FKA Twigs. It was styled by Ib Kamara and shot by Johnny Dufort in British landmarks and locations.

Compiled by Yola Mzizi.

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Background:

Amir Fayo, the founder of 69 Group, marries brand architecture and art direction to create retail and hospitality concepts rooted in culture and connection. Best known for operating Egyptian stores Maison69 and Villa Baboushka, Fayo breaks with conventions to create immersive store experiences that resonate with consumers on an emotional level. Everything starts by not thinking of himself as a retailer.

“I don’t know how to do retail. Retail is structured. Retail is data. Retail is numbers … I connect to people, to how they feel, what makes them tick, what makes them be interested,” he says.

This week on The BoF Podcast, BoF founder and editor-in-chief Imran Amed sits down with Fayo to discuss his innovative attitude toward retail.

Key Insights:

• Fayo, who was born in Wales and raised in Egypt, says his architectural style is heavily influenced by his multicultural upbringing. “Egypt gave me a heart, the UK gave me my creativity and the US gave me my thinking process.”
• There are three pillars to how Fayo approaches a project. The first is building an environment in which people can form an emotional memory. The second is creating a sense of social intimacy. Finally, he remains focussed on the idea of elevating the everyday. ‘I want to elevate [mundane moments] to be something that people remember, that people want to come back to,” Fayo explains.
• When designing retail spaces, the idea of home is kept at the forefront. “When we started to define that code, I said, where is that space where there is no right and there is no wrong? It should be home,” says Fayo. “We’re going to design homes because homes should be welcoming. Homes should create belonging. Homes should create easy connections.”

Additional resources: