Photo: Jon Kopaloff/Getty Images for TikTok
These are the stories making headlines in fashion on Friday.Why Good Light is closingAfter five years in business, K-beauty brand Good Light is shutting down due to a lack of capital, an overcrowded market and tariff hikes. The closure comes amid K-beauty brands trending in the industry. “The cruel irony isn’t lost on me. I love that Korean culture is finally popular. But behind the headlines celebrating the K-beauty boom are indie brands like mine struggling for space,” Good Light founder David Yi wrote for Allure. {Allure}Brands react to the spread of auto-generated AI adsBrands, consumers and advertisers are pushing back against Meta, TikTok and other tech platforms nonconsentually auto-generating AI ads. Reports show that more than 50% of Gen Z consumers prefer organic, non-generative AI content from businesses. Brand founders are concerned that the lack of guardrails around generative AI ads will push customers away and make it difficult to distinguish which labels are legitimate from those that aren’t. {Modern Retail/paywalled}Ebay to cut 6% of its workforce after Depop acquisitionEbay is laying off 6% of its workforce — roughly 800 workers — following its $1.2 billion acquisition of Depop. The company said these cuts are part of a restructuring strategy. {Bloomberg/paywalled}EU eases corporate sustainability rulesThe European Union has approved a scaling back of corporate sustainability policies that required companies to address environmental and human rights risks across their supply chains. Significant changes include narrowing the number of companies required to report on environmental impact, labour practices and governance risks, removing mandatory climate transition plans and deferring civil liability to national legal systems. The decision was made to help relieve companies of administrative burden and reduce costs. {Business of Fashion/paywalled}Inside social-first brands’ growth strategiesSocial-first brands like Cakes Body and Beis are figuring out how to use viral videos to drive growth. Their social strategies include amplifying paid ads by working with a wide network of content creators, posting regularly and prioritizing organic and authentic content. Logistics-wise, social-first labels have to balance inventory forecasts with the potential of going viral and selling out. {Modern Retail/paywalled}Do you have an emerging brand you want to share with Fashionista readers? Jumpstart your business with our affordable digital offerings.
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