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As the results season kicks in, the <keyword id="20097634" type="General" weightage="20" keywordseo="quarterly-earnings" source="keywords">quarterly earnings</keyword> numbers of several <keyword id="22405488" type="General" weightage="20" keywordseo="blue-chip-firms" source="keywords">blue-chip firms</keyword> — such as <keyword id="19906778" type="General" weightage="20" keywordseo="Infosys" source="keywords" meta.keywordsubtype="org" meta.entityname="Infosys" meta.hostid="261" meta.entityid="Infosys">Infosys</keyword> and Reliance Industries — along with <keyword id="20837523" type="General" weightage="20" keywordseo="global-trends" source="keywords">global trends</keyword> and <keyword id="20223116" type="General" weightage="100" keywordseo="trading-activity" source="keywords">trading activity</keyword> of foreign investors, will determine <keyword id="22405487" type="General" weightage="20" keywordseo="equity-market-movement" source="keywords">equity market movement</keyword> in the holiday-shortened week ahead, according to analysts. The domestic <keyword id="22405489" type="General" weightage="20" keywordseo="WPI-inflation-data" source="keywords">WPI inflation data</keyword> for June — scheduled to be announced on Monday — will also influence trading sentiments, traders said. Markets will remain closed on Wednesday for Muharram. Among major quarterly earnings to be tracked this week are from HDFC Life Insurance Company, Bajaj Auto, BPCL, JSW Steel, Asian Paints, Infosys, and Reliance Industries. "Q1 earnings will be a key focus this week as numerous companies, including heavyweights Infosys, and Reliance, are set to release their results. Additionally, <keyword id="22194639" type="General" weightage="20" keywordseo="pre-Budget-discussions" source="keywords">pre-Budget discussions</keyword> are expected to contribute to market volatility," Santosh Meena, Head of Research, Swastika Investmart Ltd, said. On the global front, a significant focus will be on China. The country is scheduled to announce its GDP and Industrial Production (IIP) numbers, Meena said. "Other global factors to watch include the speech by the US Federal Reserve Chairman, US retail sales figures, and macroeconomic data from Japan," he added. Meanwhile, IT services company HCL Tech on Friday posted a 20.4 per cent rise in consolidated net profit to Rs 4,257 crore for the June-ended quarter and gave a revenue growth guidance of 3-5 per cent for FY25 on GenAI diversification and strong operational execution. "On Monday, markets will react to India's inflation data. Key results this week include Jio Financial Services, HDFC Life, Asian Paints, LTIMindtree, Infosys, Wipro, JSW Steel, Paytm, etc. Also globally, investors will take cues from China's GDP numbers, US core retail sales data, and ECB (European Central Bank) interest rate decision," Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services Ltd, said. Retail inflation increased to four-month high of 5.08 per cent in June as food items, including vegetables, became dearer, according to government data released on Friday. Vinod Nair, Head of Research, Geojit Financial Services, said, "We expect stock-specific moves to gain traction due to the ongoing earnings season; indeed, IT will be in the limelight due to the good start to the earnings and outlook." In the week ahead, economic data like China GDP, EuroZone CPI inflation, ECB policy, and the US Fed chair speech will be watched by investors to get cues on market momentum, Nair added. On a weekly basis, the BSE benchmark jumped 522.74 points, or 0.65 per cent, while the Nifty climbed 178.3 points, or 0.73 per cent. The 30-share BSE Sensex jumped 622 points, or 0.78 per cent, to settle at a record closing level of 80,519.34 on Friday. During the day, it zoomed 996.17 points, or 1.24 per cent, to hit an all-time high of 80,893.51. The NSE Nifty surged 186.20 points, or 0.77 per cent, to settle at a record closing high of 24,502.15. Intra-day, it jumped 276.25 points, or 1.13 per cent, to hit a new lifetime peak of 24,592.20.

Trading activity to hinge on Q1 results, global trends in holiday-shortened week: analysts

<ul class="summary-list"><li>China's thrifty consumers are boosting Asian companies with wallet-friendly offerings.</li><li>Companies like Japan's Saizeriya, Yum China, and Fast Retailing have recently reported strong sales.</li></ul>China's consumers are tightening up their belts, but not everyone's a loser. Some companies are riding the frugal wave.Saizeriya, a restaurant chain from Japan — a country well familiar with a prolonged downturn — is one company making bank from China's downturn.In its fiscal year that ended August 31, <a target="_blank" class="" href="https://www.saizeriya.co.jp/PDF/irpdf001505.pdf">Saizeriya</a>, which serves Italian food at budget prices in several Asian countries, reported operating profit nearly doubled from a year ago to 14.8 billion Japanese yen, or $99.6 million.Hideharu Matsutani, the company's president, said at a Wednesday press conference that operating profit from its China operations "rose significantly," per <a target="_blank" class="" href="https://asia.nikkei.com/Business/Food-Beverage/Thrifty-Chinese-diners-bring-record-profit-for-Japan-s-Saizeriya">Nikkei.</a>Matsutani said Saizeriya is now using its strategy for Japan in the neighboring market because "conditions in China in some respects look like Japan after its economic bubble burst."There are <a target="_blank" class="" href="https://www.businessinsider.com/china-economy-heading-for-lost-decade-needs-reform-growth-japanification-2024-2">similarities</a> between <a target="_blank" rel="" href="https://www.businessinsider.com/japan-millennial-salaryman-job-wages-rent-home-ownership-birthrate-2023-5#the-typical-japanese-millennial-is-financially-conservative-having-grown-up-watching-their-countrys-lost-decade-suffer-from-a-devastating-economic-crisis-2">Japan's "Lost Decade"</a> of economic stagnation in the 1990s, after the country's asset and credit bubbles burst, and <a target="_blank" class="" href="https://www.businessinsider.com/china-economy-property-crisis-vanke-get-uglier-analyst-charlene-chu-2024-3">China's economic downturn</a> now.After Japan's asset bubble implosion, consumption in Japan witnessed a fundamental shift, as people who previously would pay for quality and convenience increasingly moved to buying discount goods, consultancy <a target="_blank" class="" href="https://www.mckinsey.com/~/media/McKinsey/Industries/Consumer%20Packaged%20Goods/Our%20Insights/The%20new%20Japanese%20consumer/The%20new%20Japanese%20consumer.pdf">McKinsey</a> wrote in a 2010 report.Chinese consumers now appear to be moving in the same direction as their Japanese peers, trading down for cheaper products — even if the trend also presents challenges for budget-friendly retailers.Still, investors appear to agree with the strategy of offering more value for money. Shares of Saizeriya listed on the Tokyo Stock Exchange are up 7.7% this year-to-date.<h2 id="fa258e48-944f-4589-9a00-fdd7e405730d">Living well but at the 'best value for money'</h2>In China, too, times have changed, and people are looking for cheaper products, including <a target="_blank" class="" href="https://www.businessinsider.com/chinese-economy-young-shoppers-looking-dupes-substitutes-pingti-fashion-travel-2024-9">dupes and substitutes.</a>"Consumers are increasingly rational and strategic, focusing on obtaining the best value for their money," said MingYii Lai, a strategy consultant at Beijing-based market research firm Daxue Consulting, told Business Insider.Shoppers are seeking high-quality experiences and products at lower costs while aiming to live well, she said.People are increasingly choosing to spend on experiences, like travel and food, rather than buying products."Economic pressures and changing priorities are driving a move towards more economical spending," said Lai.The ethos has benefited companies with budget offerings, including Yum China, which operates KFC and Pizza Hut in the country.<a target="_blank" class="" href="https://ir.yumchina.com/quarterly-results">Yum China'</a>s second-quarter operating profit grew 4%, to $266 million, from a year ago thanks to aggressive budget-friendly deals.<a target="_blank" class="" href="https://www.fastretailing.com/eng/ir/financial/summary.html">Fast Retailing</a> — the parent company of Uniqlo, known for affordable clothes — reported net profit growth of 25.6% for its full year ending August 2024 thanks to robust sales in both the domestic and international markets. Sales in Greater China grew by 9.2%, to 677 billion yen.Yum China shares are up 11% this year to date, while Fast Retailing shares are up 56% over the same period.<h2 id="af7e4a77-fdf8-44fe-9f62-eb06a273ab9e">Intense competition</h2>However, China's market is a fast and furious one — even for winners — and the country's economic downturn has created cut-throat competition with aggressive price wars.Uniqlo said on Thursday that while sales in mainland China were "strong" in the first half of its fiscal year, they were "lackluster" in the second half.Some consumers are <a target="_blank" class="" href="https://www.businessinsider.com/chinese-economy-young-shoppers-looking-dupes-substitutes-pingti-fashion-travel-2024-9">going straight to the source</a> to buy original equipment manufacturer goods or white label products to replace items in a wide range of categories — even if they're just ordinary products.The race for Chinese consumers' yuan is exemplified in the boba tea business, where an all-out price war is changing market dynamics for what is considered a still affordable indulgence in a penny-pinching era.As China's economic malaise deepened, <a target="_blank" class="" href="https://x.com/AFP/status/1835337779993256178">boba tea went from</a> premium pricing around $3.50 to $5.50 on average to as little as $1 or less over the last few years."All the players are trying to introduce low-price offers. So, either you can use a low price range, or try to be very creative in terms of pricing promotion so as to stay ahead of the market," Jason Yu, the Greater China managing director at Kantar Worldpanel, a consumer research group, told BI.In KFC's case, its marketing and pricing strategies cater to both ends of the market, with wagyu beef products at the higher end and promotions like 15 wings for under $3, <a target="_blank" class="" href="https://www.businessinsider.com/western-brands-china-kfc-mcdonalds-american-fast-food-all-in-2024-9">BI's Matthew Low</a> reported last month.As Allison Malmsten, another analyst from Daxue Consulting, told BI: "the rich are comfortable to spend, while the middle class chooses cheaper options."

Budget brands are winning in China as people turn to cheap food and fashion     

<ul class="summary-list"><li>This post originally appeared in the Insider Today newsletter.</li></ul>Hello there! An Aldi diehard tried using their weekly budget at Trader Joe's instead. <a target="_blank" href="https://www.businessinsider.com/shopping-at-trader-joes-on-budget-not-worth-aldi-better-2024-8">Here's how the two stack up</a>.In today's big story, we've unlocked a new vacation trend: <a target="_blank" href="https://www.businessinsider.com/slowcation-travel-trend-tourists-booking-longer-trips-2024-8">the "slowcation."</a>What's on deck:<ul><li>Markets: The SEC takes a shot <a target="_blank" href="https://markets.businessinsider.com/news/stocks/carl-icahn-enterprises-sec-fine-stock-pledge-disclosure-margin-hindenburg-2024-8">at a Wall Street Icahn</a>.</li><li>Tech: The companies that are <a target="_blank" href="https://www.businessinsider.com/ai-stocks-upside-boosting-profit-margins-gdp-chipotle-starbucks-bofa-2024-8">making the most of AI</a>.</li><li>Business: How to know <a target="_blank" href="https://www.businessinsider.com/pwc-hr-signs-interview-went-well-2024-8">if you actually nailed that interview</a>.</li></ul>But first, let's take it slow.If this was forwarded to you, <a target="_blank" href="https://www.businessinsider.com/subscription/newsletter/insider-today">sign up here.</a><h3 id="5170ee9c-682d-4e35-9727-49f65015aec6">The big story</h3><h2 id="bc54c5e2-803a-4458-9c8f-a377a99d8eee">What's the rush?</h2><div type="image" title="A turtle on a beach chair" height="1500" width="2000" msid="112658278" hostid="261" sizebytes="105312"></div>Taking a trip these days is all about taking your time.The "slowcation" is the hottest new trend in vacationing this summer as travelers <a target="_blank" href="https://www.businessinsider.com/slowcation-travel-trend-tourists-booking-longer-trips-2024-8">look to book longer trips with a slower pace</a>, writes Business Insider's Joey Hadden.It's hard to pinpoint what a "slowcation" entails, but it's generally about spending more time in a location than jet-setting around to maximize your Instagram feed. One report on the trend describes it as "exploring somewhere on a deeper level" and "making space mentally and physically for things to happen spontaneously."The result has been travelers taking longer trips. One luxury travel agency told Joey 11-day vacations are now the most commonly booked trips. (The irony of writing about this trend after only taking two days off from work isn't lost on me.)A catalyst for "slowcations" has been a focus on destressing. Whether it's fears over the economy, the job market, the election, or something else, Americans have plenty to be worried about. Adding a multi-stop vacation to the mix isn't the best way to unwind.<div type="image" title="Image of woman relaxing in a pool" height="1275" width="1920" msid="112658120" hostid="261" sizebytes="254884"></div>Not everyone has the luxury of a longer vacation, but you can still optimize trips.US workers, on average, <a target="_blank" href="https://www.businessinsider.com/unlimited-vacation-pto-wins-risks-2024-8">take 11 days off a year</a>, meaning a two-week vacation isn't realistic for many. But as a self-appointed expert of the short-term trip, here are some tips to make the most of your time off.Clean before you leave. Between packing, confirming trip details, and wrapping up work, you've got enough on your plate before heading out the door. But tidying up goes a long way when you finally get back home.Always book the early flight in. Not everyone's a morning person, but a late flight can cost you in the long run. You're less likely to get stuck with delays in the morning, especially in the summer when <a target="_blank" href="https://www.businessinsider.com/why-meteorologists-avoid-booking-flights-summer-afternoons-evenings-2024-7">afternoon and evening thunderstorms can lay havoc on flights</a>.Don't forget the most important meal of the day. I've skipped my fair share of breakfasts, but carving out time for it on vacation keeps me on track. The food and caffeine serves as fuel (<a target="_blank" href="https://www.businessinsider.com/dietitian-researches-ultra-processed-foods-shares-easy-breakfasts-2024-7">it doesn't have to be fancy</a>) and you can figure out what you want to accomplish for the day.Book the early flight out. I know what you're thinking: "If I'm trying to maximize my trip, shouldn't I leave as late as possible?" Flash cut to you milling around a Hudson News store at your terminal three hours before your flight because you're tired of dragging your bags around and just want to go home. First one in; first one out.Give yourself an extra day at home. If you can spare a bit more time, don't be afraid to spend it at home. Heading into work right after vacation is a great way to destroy the relaxing vibes you accrued. But knowing you have an extra day or two once you get home — I call it an "encore vacation" — makes your actual trip that much sweeter.<h3 id="142686f5-0f79-4efb-8c64-594dda8f696a">News brief</h3><h2 id="3fee77be-c70a-4e3e-b821-33200035c790">Top headlines</h2><ul><li>At the DNC, Biden finally kept his promise to be a <a target="_blank" href="https://www.businessinsider.com/biden-harris-bridge-to-future-dnc-speech-2024-8">bridge to the Democratic Party's future</a>.</li><li>US says Israel accepted a cease-fire deal — <a target="_blank" href="https://businessinsider.com/blinken-warns-hamas-may-not-get-another-chance-ceasefire-2024-8/">and warns Hamas may not get another chance to say 'yes.'</a></li><li>Who is Mike Lynch? The controversial tech tycoon is <a target="_blank" rel="noopener" href="https://www.businessinsider.com/the-life-of-mike-lynch-autonomy-hp-2017-5">missing after a superyacht disaster.</a></li><li><a target="_blank" rel="noopener" href="https://www.businessinsider.com/donald-trump-wants-elon-musk-on-his-cabinet-2024-8">Donald Trump said he'd want Elon Musk in his Cabinet</a>.</li><li>The Canadian company behind Circle K wants to buy <a target="_blank" href="https://www.businessinsider.com/7-eleven-japan-owner-takeover-bid-canadian-rival-circle-k-2024-8">7-Eleven's Japanese owner in a blockbuster deal</a>.</li><li>Serial liar George Santos pleads guilty, <a target="_blank" href="https://www.businessinsider.com/george-santos-pleads-guilty-criminal-fraud-case-2024-8">avoiding a looming criminal trial</a>.</li><li>Elon Musk's X is being sued again — <a target="_blank" href="https://www.businessinsider.com/elon-musks-x-sued-120-million-worth-of-server-parts-2024-8">this time over $120 million worth of server parts</a>.</li><li>Pelosi defends role in pushing Biden out, saying she's 'sorry' for those who are upset but <a target="_blank" href="https://www.businessinsider.com/pelosi-defends-pushing-biden-out-country-is-very-happy-2024-8">'the country is very happy.'</a></li><li>Business Insider <a target="_blank" href="https://www.businessinsider.com/business-insider-wins-murrow-award-2024-8">wins Murrow Award</a>.</li></ul><h2 id="3ed77371-7965-45d0-ab02-11e56c264ba5">3 things in markets</h2><div type="image" title="Red stock market bull overlaying the American flag and stock chart candles." height="1500" width="2000" msid="112658133" hostid="261" sizebytes="145196"></div><ol><li>The stock market's showing some green flags. One signal — the 40-Day Trading Index — indicates stocks were oversold last week. Another was the recent 10:1 day, which happens when rising stocks outpace declining ones on a 10:1 ratio. Strategists at Ned Davis Research noted <a target="_blank" href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-buy-signal-bullish-indicator-selloff-rally-prediction-2024-8">these short-term indicators</a> seem to have "confirmed the bullish message" in stocks.</li><li>Carl Icahn gets hit with a fine from the SEC. The billionaire investor was fined $500,000 and his firm, Icahn Enterprise, $1.5 million for <a target="_blank" href="https://markets.businessinsider.com/news/stocks/carl-icahn-enterprises-sec-fine-stock-pledge-disclosure-margin-hindenburg-2024-8">failing to disclose billions in stock pledges</a>. The SEC's probe was sparked by a short-seller report highlighting Icahn's use of margin loans in addition to accusing the investor and his firm of <a target="_blank" href="https://markets.businessinsider.com/news/stocks/short-seller-hindenburg-research-wall-street-legend-carl-icahn-enterprises-2023-5">inflating the value of its assets</a>.</li><li>How four possible presidential election results could impact stocks. UBS conducted a market-scenario analysis for four possible election outcomes, depending on the results of the presidential contest and who wins control of Congress. Here's how the bank thinks <a target="_blank" href="https://markets.businessinsider.com/news/stocks/trump-harris-democrat-republican-presidential-election-outlooks-impact-stock-market-2024-8">the stock market will react</a>.</li></ol><h2 id="765e41a2-5560-478f-ab56-81188ef207a2">3 things in tech</h2><div type="image" title="An illustration shows a man leaning in with puckered lips to kiss a woman as the unwilling object of his affection pulls away with hands up in the air to shield her face." height="613" width="1024" msid="112658132" hostid="261" sizebytes="189898"></div><ol><li>"I'm not your dream girl — I'm literally just a girl." A female software engineer shared how her career success has made dating tricky. She said men are often intimidated by her success, or overly idealize her as their <a target="_blank" href="https://www.businessinsider.com/dating-men-as-a-female-software-engineer-is-difficult-2024-8">manic pixie dream girl</a>.</li><li>Netflix is flexing its power in its latest TV deal. Whereas it used to have to depend on media companies to get what it wanted, the tides have since changed in Netflix's favor. Its new deal with AMC Networks, the home of "Breaking Bad," <a target="_blank" href="https://www.businessinsider.com/netflix-amc-collection-license-power-content-2024-8">shows just how much leverage Netflix has</a>.</li><li>These nine companies are putting AI to work. The AI hype isn't over just yet. According to Bank of America, the tech is expected to revolutionize corporate efficiency in the next five years. It found that Starbucks, JPMorgan, and other companies are <a target="_blank" href="https://www.businessinsider.com/ai-stocks-upside-boosting-profit-margins-gdp-chipotle-starbucks-bofa-2024-8">already using AI to transform their businesses</a>.</li></ol><h2 id="d64b13eb-2cc7-434b-a868-09ee5e5e8f43">3 things in business</h2><div type="image" title="Trump and Taylor Swift" height="1334" width="2000" msid="112658134" hostid="261" sizebytes="208524"></div><ol><li>Donald, now we've got bad blood. <a target="_blank" href="https://www.businessinsider.com/donald-trump-fake-taylor-swift-ai-pictures-swifties-furious-election-2024-8">Taylor Swift's fans are furious</a> with Donald Trump after he posted photos that appeared to show Swift and her fans endorsing him for president. Many of the photos bear telltale signs of AI. Swift has yet to respond — but <a target="_blank" href="https://www.businessinsider.com/taylor-swift-could-sue-trump-fake-ai-endorsement-images-lawsuit-2024-8">she could definitely sue him</a> if she wanted to.</li><li>Can't stop thinking about that job interview? You can't always trust your gut feeling about how you did in an interview, according to longtime HR exec Michael Doolin. But body language, building a rapport, <a target="_blank" href="https://www.businessinsider.com/pwc-hr-signs-interview-went-well-2024-8">and these five other signs</a> might help put your mind at ease about how you did.</li><li>Your new favorite TV shows might feature a whole lot more product placement. Brands increasingly want to be part of filmed entertainment, and filmmakers are in search of new funding as Hollywood trims budgets. <a target="_blank" href="https://www.businessinsider.com/sonic-gods-studios-making-brand-funded-entertainment-tv-shows-2024-8">Sonic Gods Studios is bringing the two goals together</a>: It's already got one reality show on a major streamer fully financed by brand deals.</li></ol><h2 id="2ecb2379-8d98-4644-9fd1-9b90a6e64415">In other news</h2><ul><li>The top 10 holdings of the Mormon church's $55 billion stock portfolio <a target="_blank" href="https://markets.businessinsider.com/news/stocks/mormon-church-stock-portfolio-top-10-holdings-new-ai-stock-2024-8">include a new AI stock</a>.</li><li>Meet the 15 members of the $100 billion club — <a target="_blank" href="https://www.businessinsider.com/wealth-billionaires-musk-bezos-zuckerberg-net-worth-jensen-huang-waltoans-2024-8">who are jointly worth more than Google</a>.</li><li>Meta director who used to work for Elon Musk says companies without an internal AI tool <a target="_blank" href="https://www.businessinsider.com/meta-director-companies-without-internal-ai-tools-already-behind-2024-8">are 'already behind the curve.'</a></li><li>Fast-food price hikes reach 'tipping point' as chains try to reset their menus with <a target="_blank" href="https://www.businessinsider.com/fast-food-price-rises-tipping-point-value-deals-combos-mcdonalds-2024-8">value deals and combos</a>.</li><li>Why your favorite S&amp;P 500 index funds are in for <a target="_blank" href="https://www.businessinsider.com/sp500-index-funds-stock-market-valuations-cape-ratio-future-returns-2024-8">a decade from hell</a>.</li></ul><h2 id="0adfd45c-003e-439c-8082-d33eebe52fc9">What's happening today</h2><ul><li>Barack Obama speaks at the Democratic National Convention in Chicago.</li><li>Senator Bob Menendez (D-NJ) resigns. Last month, a federal jury convicted him of accepting bribes from the Egyptian government.</li><li>Lowe's and other companies <a target="_blank" href="https://markets.businessinsider.com/earnings-calendar">report earnings</a>.</li></ul>The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Jordan Parker Erb, editor, in New York. Hallam Bullock, senior editor, in London. Milan Sehmbi, fellow, in London. Amanda Yen, fellow, in New York.

Slowcation is the hottest new trend in vacationing

<ul class="summary-list"><li>Fast-moving fashion micro-trends on social media can drive impulsive spending.</li><li>Keeping up can also harm people's mental health and the environment, and mess with their style.</li></ul>In the fast-moving world of TikTok and Instagram, it can feel like there's a new fashion trend every time you swipe.A novel aesthetic or "-core" circulates on social media every few weeks, prompting consumers to buy in.Sometimes, it's a dress; other times, it's a top, a skirt, or a pair of boots. If an item is on the expensive side, there will be dupe options for less.But what fits into the "<a target="_blank" class="" href="https://www.businessinsider.com/gen-z-clothing-office-siren-business-casual-fashion-2024-8">office siren,</a>" "mob wife," or "<a target="_blank" class="" href="https://www.businessinsider.com/roundup-tiktok-style-trends-barbiecore-goblincore-2022-12#still-trending-normcore-is-around-for-the-long-haul-2">normcore</a>" aesthetic one minute is soon outdated, and it's time to buy whatever's next. These things that go out of fashion just as soon as they come in are known as micro-trends."It's not sustainable for your money, it's not sustainable for your mental health, and it's not sustainable for our environment," Ylva Baeckström, a psychotherapist and senior lecturer in finance at King's Business School in London, told Business Insider."It all adds up, and it becomes extremely stressful."<h2 id="4ec37053-21a8-4502-8907-7fa409b94078">'The perfect profitability storm'</h2>Fast fashion, social media, and retailers like Shein have together created "the perfect profitability storm for the businesses and influencers using them," said Anthony Miyazaki, a marketing professor at Florida International University."It's like watching a natural symbiosis where fast fashion producers drop the products, influencers create the buzz, TikTok and Instagram facilitate the sales, and the buyers swarm the marketplace," Miyazaki said.TikTok and Instagram did not respond to requests for comment.<a target="_blank" class="" href="https://www.businessinsider.com/how-to-sell-on-tiktok-shop">TikTok Shop,</a> the app's e-commerce platform, has grown to more than 500,000 US-based sellers in eight months since launching, <a target="_blank" href="https://www.tiktok.com/transparency/en-us/shop-safety-2023-2/">according to the company's Safety Report</a> released in April. It has around 15 million sellers worldwide.On average, <a target="_blank" class="" href="https://www.businessinsider.com/tiktok-is-betting-its-future-on-e-commerce-should-it-2024-7">US users who made TikTok Shop purchases</a> spent about $67 between mid-June and mid-July, compared to around $54 over a four-week period in January, per <a target="_blank" class="" href="https://www.businessinsider.com/tiktok-shop-better-at-keeping-customers-than-temu-shein-2024-4">data</a> from Earnest Analytics, a research firm that tracks credit-card and debit-card transactions.TikTok takes a 2% commission plus 30 cents on every TikTok Shop transaction, and is planning to increase its cut to 8%, <a target="_blank" class="" href="https://www.tubefilter.com/2024/01/05/tiktok-shop-ecommerce-revenue-commission-price-hike/">Tubefilter reported</a>. The company does not disclose how much it has earned from its shopping platform, but individual sellers have been reported to have made <a target="_blank" class="" href="https://cosmeticsbusiness.com/made-by-mitchell-on-making-one-million-on-tik-tok-shop">over $1 million in a single day</a>.Sites like TikTok Shop often promote micro-trends to consumers. That has benefited the likes of the Chinese company Shein, which adds thousands of items to its store each day. It was valued at $66 billion in its latest fundraising round — an <a target="_blank" class="" href="https://www.businessofapps.com/data/shein-statistics/">increase from $5 billion</a> in 2019. (Shein also did not respond to a comment request.)The power of influencers and algorithms on spending is huge. Elysia Berman, a content creator who makes videos about fashion, told BI she is paying off a large amount of credit card debt which she built up due to a shopping addiction fueled by social media.At the start of this year, Berman owed close to $48,000 and has cut that almost in half thanks to her commitment to the "no buy year" — a trend focused on reducing spending.Berman said she believes the cycle of micro-trends is a big problem, saying she spent a lot on clothes she didn't even like or wear."Micro-trends are meaningless without an understanding of your personal style," Berman said. "If you do not know yourself and your style, you are at risk of being caught up in the endless pursuit of trendiness and overspending."<h2 id="5d5c31f2-aa71-4fd0-a913-c6e69c3e5c01">Doom-spend or save?</h2>Along with social media algorithms, micro-trends are being fueled by the cycle of<a target="_blank" class="" href="https://www.businessinsider.com/shoppers-are-doom-spending-to-cope-with-financial-stress-2023-11"> doom spending:</a> buying unnecessary stuff to feel better.<a target="_blank" class="" href="https://newsroom.transunion.com/q2-2024-ciir/">Per an analysis from the credit reporting agency TransUnion</a>, the average debt per borrower in Q2 of 2024 in the US is $6,329 — an increase from $5,947 in Q2 last year.<a target="_blank" class="" href="https://www.federalreserve.gov/econres/notes/feds-notes/a-better-way-of-understanding-the-u-s-consumer-decomposing-retail-spending-by-household-income-20241011.html">Economists at the Federal Reserve</a> earlier this month found that inflation-adjusted spending on retail goods was up across the board compared to 2018.Baeckström, the finance lecturer, said impulse buying is all about feeling control "when everything else is out of control.""You might as well splash out on something that makes you feel better right now because it's hard to think about the long term when things are feeling a bit hopeless," she said.Dan Pallesen, a licensed clinical psychologist and financial advisor, told BI that following trends is part of being human."For our ancestors, keeping up with trends was a matter of life or death," he said. This was because not being part of the in-group put us at risk of rejection and thus in danger to the elements and predators."Fast forward to today, most of us are not in physical danger if we are not part of the in-group, but we still carry the same brain above our shoulders as those ancestors," Pallesen said.<h2 id="5c649480-8542-454e-bf5f-d4055e821462">A growing problem</h2>Most people can afford a few trendy pieces. But repeated, unconscious spending can soon snowball.Bill Ryze, a certified chartered financial consultant and a board advisor at the financial-services platform Fiona, told BI that frequent impulsive purchases can lead to maxed-out credit cards and high-interest debt."Continuous spending can lead to accumulating debt that can become overwhelming," Ryze said, "which could impact mental health and overall well-being."Julie Guntrip, the head of financial wellness at <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/banking/jenius-bank-review">Jenius Bank</a>, said young people are particularly susceptible, especially when they follow influencers who make a living getting others to buy things."While it's easy to get caught up in what others are doing, it's important to remember that not everything is as it seems on social media," she said.Guntrip recommended making a budget and developing a "<a target="_blank" class="" href="https://www.businessinsider.com/deinfluencing-is-the-anti-influencer-trend-rich-with-paradoxes-2023-1">de-influencing</a>" mindset — focusing on not buying things and the dopamine hit of saving money rather than spending it needlessly.<a target="_blank" class="" href="https://www.businessinsider.com/gen-z-micro-spending-on-concert-tickets-to-collectibles-2024-10">Gen Z's interest in micro-spending</a> could signify a shift — spending small amounts on collectibles and items that reflect their personal tastes and don't break the bank."Make it trendy not to buy things," Baeckström said. "Make it trendy to think about the sustainability of your consumption patterns, for you, and for the environment, and, of course, for your money."

Micro-trends are taking over social media, and keeping up can be really expensive

Union Cabinet headed by Prime Minister Narendra Modi met in Parliament on Tuesday to approve the Union Budget ahead of its presentation by <keyword id="19956758" type="General" weightage="20" keywordseo="Finance-Minister" source="keywords">Finance Minister</keyword> <keyword id="19916618" type="General" weightage="20" keywordseo="Nirmala-Sitharaman" source="keywords">Nirmala Sitharaman</keyword>. Prime Minister Narendra Modi arrived in Parliament this morning to attend the cabinet meeting. On Monday, Prime Minister said the Economic Survey highlighted the prevailing strengths of the economy and identifies areas for further growth and progress as the government "moves towards building a Viksit Bharat". Union Ministers Amit Shah, Rajnath Singh and Pralhad Joshi were also seen arriving in the Parliament earlier for the Cabinet meeting today. At 11 am, Finance Minister Nirmala Sitharaman will present the <keyword id="20387181" type="General" weightage="20" keywordseo="Union-Budget-2024-25" source="keywords">Union Budget 2024-25</keyword>. Earlier today, Sitharaman met with President Droupadi Murmu before leaving for Parliament. This would mark Sitharaman's seventh consecutive budget and eclipses the late Moraji Desai's record of six consecutive budgets, which is likely to focus on changes in the income tax structure and improving the ease of doing business in India. Addressing the media, Minister of State for Finance Pankaj Chaudhary earlier said that the first Union Budget of the third Modi government will be based on his mantra of "Sabka Saath Sabka Vikas". Union Minister Pralhad Joshi said that this budget would accelerate the country's economic growth. "The economic growth that happened under the leadership of Prime Minister Narendra Modi, this budget and this Budget will further accelerate it. The budget that will be presented today by Nirmala ji will also help our country, which is the fastest-growing economy," Pralhad Joshi said while speaking to the media on the Parliament premises on Tuesday. The budget session of Parliament began on July 22 and, according to schedule, will end on August 12. On Monday, the economic survey presented in Parliament by finance minister Sithraman stated that in the medium term, the Indian economy can grow at a rate of 7 per cent. The economic survey stated, "In the medium term, the Indian economy can grow at a rate of 7 per cent plus on a sustained basis if we build on the structural reforms undertaken over the last decade. This requires a tripartite compact between the Union Government, State Governments and the private sector. "The survey further added that India faces a unique blend of opportunities and challenges amid global trends such as geo-economic fragmentation, a push for self-reliance, looming climate change, the rise of technology, and limited policy space. (ANI) SEE ALSO: <a href="https://www.businessinsider.in/budget/news/union-budget-2024-live-updates-finance-minister-nirmala-sitharaman-key-announcements-23-july/liveblog/111942008.cms" data-type="tilCustomLink" target="_blank">Union Budget 2024 Live Updates: PM Modi arrives in Parliament ahead of Budget 2024 presentation</a> <a href="https://www.businessinsider.in/business/news/expectations-from-union-budget-2024-25-how-will-this-budget-impact-you/articleshow/111946291.cms" data-type="tilCustomLink" target="_blank">Union Budget 2024-25: Focus on employment, skilling, MSME and middle class</a>

Union Cabinet meets in Parliament ahead of Budget presentation

Domestic <keyword id="19910265" type="General" weightage="100" keywordseo="gold-prices" source="keywords">gold prices</keyword> have risen by 10% on a year-to-date basis on the back of the strength in global gold prices, which have surged by 18% year-to-date, driven by robust <keyword id="19894998" type="General" weightage="20" keywordseo="central-bank" source="keywords">central bank</keyword> purchases, heightened geopolitical risks, and growing expectations of a monetary policy pivot from the <keyword id="19901377" type="General" weightage="20" keywordseo="us-federal-reserve" source="keywords">US Federal Reserve</keyword>, according to the <keyword id="20195223" type="General" weightage="20" keywordseo="World-Gold-Council" source="keywords" meta.keywordsubtype="org" meta.entityname="World Gold Council" meta.hostid="153" meta.entityid="World Gold Council">World Gold Council</keyword>. The reduction in <keyword id="20069572" type="General" weightage="20" keywordseo="import-duty" source="keywords">import duty</keyword> has ignited a resurgence in gold demand across <keyword id="19895063" type="General" weightage="20" keywordseo="India" source="keywords">India</keyword>. Reports from the recently concluded India International Jewellery Show indicate a substantial increase in order bookings from retailers, particularly in preparation for the upcoming festive and wedding season. Manufacturers have noted that in some cases, orders have reached levels not seen in several years, underscoring the strong buying interest among <keyword id="21595593" type="General" weightage="20" keywordseo="jewellery-retailers" source="keywords">jewellery retailers</keyword> and consumers alike. The trend of bar and coin buying has also remained robust, with both consumers and jewellers capitalizing on the more attractive prices to stock up for future manufacturing needs. Historical analysis suggests that Indian consumer demand, encompassing jewellery and bar and coin demand, could see an additional 50 tonnes or more in the second half of 2024. This potential increase is fueled by a combination of an initial boost in consumer appetite due to the more attractive prices and a longer-term alignment of local prices with international rates. In a notable shift, domestic gold prices, which had been trading at a discount to international prices for five consecutive months, have now started trading at a premium following the <keyword id="19908389" type="General" weightage="20" keywordseo="Union-Budget" source="keywords">Union Budget</keyword> announcement. The discount had widened significantly in July, reaching a peak of around $80 per ounce in the third week of the month, driven by subdued demand and an increased supply of gold through various preferential trade agreements and unofficial channels. However, wholesalers who had inventory purchased under the old customs duty regime began selling gold at a premium to the landed cost to mitigate their losses, further supported by increased consumer demand. While the premiums have moderated recently, from $28 per ounce to around USD 5 per ounce, this shift highlights the changing market sentiment and the impact of rising international gold prices and potential inventory valuation adjustments. The changes introduced in the Union Budget, including a reduction in the long-term investment holding period and a lower tax rate, have made gold ETFs a more attractive investment option. Data from the Association of Mutual Funds in India (AMFI) reveals that net inflows into gold ETFs in July amounted to Rs 13.4 billion (approximately USD 160 million), marking the highest monthly inflows since February 2020 and an 84% increase compared to June 2024. Despite these inflows, the total assets under management (AUM) for Indian gold ETFs grew marginally by 0.3% from the previous month, reaching Rs 345 billion ($4.1 billion). This modest increase can be attributed to the 8 % fall in domestic gold prices following the import duty reduction. Year-to-date, net inflows into Indian gold ETFs have totalled Rs 45 billion ($543 million), with total AUMs rising by 48 % from a year ago. The <keyword id="19899810" type="General" weightage="20" keywordseo="Reserve-Bank-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Reserve Bank of India" meta.hostid="153" meta.entityid="Reserve Bank of India">Reserve Bank of India</keyword> (RBI) has continued its gold purchasing trend, although at a slower pace following a significant increase in June, when purchases reached 9.3 tonnes--the highest monthly total in nearly two years. Year-to-date, the RBI's gold acquisitions have totaled 44.3 tonnes, surpassing the total purchases of the past two years combined. The RBI's gold reserves have now reached a record 849 tonnes, representing 8.8% of total foreign reserves, compared to 7.5 % a year ago. In July, gold imports remained steady at $3.1 billion, maintaining the stable trend observed over the previous three months. Between April and July, imports averaged $3.2 billion, with volumes ranging between 43 and 47 tonnes during this period. The gold import bill for July 2024 was 11 % lower than the previous year, with an estimated 26% decrease in volume terms, around 47 tonnes. Despite a surge in international gold prices, domestic gold prices in India have experienced a notable decline, primarily due to the 9 % reduction in import duty announced in the Union Budget 2024-25. This policy change has led to a 6% decrease in the landed cost of gold, marking a shift in the domestic gold market dynamics.

Domestic gold prices surge 10% amid global price rally, central bank buying: World Gold Council

After a 10.2% increase last year, <keyword id="19910265" type="General" weightage="100" keywordseo="gold-prices" source="keywords">gold prices</keyword> are expected to rise another 9.9%, <keyword id="22706139" type="General" weightage="20" keywordseo="Infomerics-Ratings" source="keywords" meta.keywordsubtype="org" meta.entityname="Infomerics Ratings" meta.hostid="261" meta.entityid="Infomerics Ratings">Infomerics Ratings</keyword> said in a report, attributing largely to the <keyword id="20132853" type="General" weightage="20" keywordseo="Middle-East-crisis" source="keywords">Middle East crisis</keyword> involving Iran and Israel. The dragged <keyword id="20130144" type="General" weightage="20" keywordseo="geopolitical-crisis" source="keywords">geopolitical crisis</keyword> in the Middle East has spurred a rush into safe-haven assets such as gold. Historically, gold, as an asset, is considered a haven as it typically manages to retain or appreciate its underlying value in times of turbulence. "But this rise would now partly be offset by the reduced duty cut (in India)," said the Infomerics Ratings report. Historical trends, such as the surge during the Russia-Ukraine war, highlight gold's role as a safeguard against inflation and market instability during <keyword id="19982403" type="General" weightage="20" keywordseo="global-uncertainties" source="keywords">global uncertainties</keyword>. Prices of gold, considered safe investment bets, have seen a mild correction after the latest stellar bull run. Gold has been in demand for a considerable period, with its prices rallying to hit record highs now and then. Geopolitical conflict in West Asia that stretched for a long time, buying by several central banks, including the RBI, and physical demand, have altogether pushed gold prices northwards. Gold is a scarce commodity, and any mismatch in demand-supply conditions may invariably trigger a sharp price rise. "Gold's diverse uses, in jewellery, technology and by central banks and investors, mean different sectors of the gold market rise to prominence at different points in the global economic cycle. This diversity of demand and self-balancing nature of the gold market underpin gold's robust qualities as an investment asset," said Infomerics Ratings. Festive season buying, a weak dollar, uncertainty surrounding the US elections, and possible Fed rate cuts in September could raise prices, the report noted. In the wake of the presentation of the <keyword id="19908389" type="General" weightage="20" keywordseo="Union-Budget" source="keywords">Union Budget</keyword> on July 23, 2024, by the Finance Minister, gold prices in India declined sharply. Finance Minister Nirmala Sitharaman slashed the import duty on gold from 15% to 6% in the Budget presented on July 23. Days after the Budget, gold became cheaper by Rs 6,200 in most states of India. In the capital Delhi, the price of 10 grams of 24 carat gold came down to about Rs 69,140. "With surging demand for gold, especially as the <keyword id="19896655" type="General" weightage="20" keywordseo="wedding-season" source="keywords">wedding season</keyword> approaches, gold prices are likely to rise this financial year, driven by escalating geopolitical tensions, robust central bank buying, and expectations of <keyword id="21050688" type="General" weightage="20" keywordseo="US-Fed-rate-cuts" source="keywords">US Fed rate cuts</keyword>." Infomerics Ratings report said. In India, gold has strong cultural and religious significance. As per <keyword id="20195223" type="General" weightage="20" keywordseo="World-Gold-Council" source="keywords" meta.keywordsubtype="org" meta.entityname="World Gold Council" meta.hostid="261" meta.entityid="World Gold Council">World Gold Council</keyword>, India is one of the largest consumers of gold jewellery, accounting for about 25% of global gold demand. The demand for gold in India is primarily driven by weddings and festivals, making it an integral part of the country's culture and traditions. Touching upon regulatory structure and challenges in the gold sector, the report noted that the regulatory landscape for the gold industry in India is fragmented. "The regulatory landscape for the gold industry in India is fragmented, involving multiple circulars and notifications from various authorities such as the RBI, Ministry of Finance, Ministry of Commerce, DGFT, Customs, and others. This patchwork of regulations leads to confusion, inefficiency, and difficulty in compliance, as stakeholders must navigate through numerous documents to understand the rules," the report read.

Gold shines as demand for safe haven asset strong; Infomerics Ratings anticipates 10% price jump this year

It took something surprisingly small — something that's been described as "teeny tiny" and "ultra-cropped" — to propel <keyword id="19948011" type="General" weightage="100" keywordseo="Prada" source="keywords" meta.keywordsubtype="org" meta.entityname="Prada" meta.hostid="261" meta.entityid="Prada">Prada</keyword> to its place as one of the year's few luxury winners. In fact, it measures under 10 inches long. <keyword id="20885719" type="General" weightage="20" keywordseo="Miu-Miu" source="keywords" meta.keywordsubtype="org" meta.entityname="Miu Miu" meta.hostid="261" meta.entityid="Miu Miu">Miu Miu</keyword>'s micro miniskirt, which debuted in 2021 and subsequently went viral, taking over both TikTok and magazine front covers, is emblematic of the brand's show-stopping couple of years — and has no doubt helped its parent company, Prada, do what few luxury companies have been able to do this year: grow. "I think the 'miracle' at Prada is Miu Miu," Luca Solca, a senior analyst at Bernstein, told Business Insider. Thanks to <a target="_blank" href="https://www.businessinsider.com/miu-miu-revenue-jumps-93-gen-z-asia-sales-prada-2024-7">Miu Miu's hot streak</a>, as well as a series of smart business moves at Prada itself — a focus on a controlled retail pipeline and store productivity, plus some experienced new hires — the company is <a target="_blank" href="https://www.businessinsider.com/zara-inditex-pandora-thrive-amid-luxury-downturn-aspirational-consumer-trends-2024-9">bucking negative luxury trends</a>. It's selling well in Asia, its stock is up, and investors are excited. Net revenue for the first half of the year was 14% higher than in the same period in 2023 and 34% more than 2022. At luxury bellwethers LVMH and Kering, first-half sales fell 1% and 11%, respectively, compared to last year.Its stock is up more than 30% year-to-date, even more than that of <a target="_blank" href="https://www.businessinsider.com/hermes-became-ultimate-status-symbol-2024-2">Hermès, luxury's perennial market leader</a>. Along with Moncler, it's one of only two buy-rated luxury stocks at HSBC. The 111-year-old, family-run, Milanese leather goods shop turned cutting-edge fashion superhouse is now enjoying one of its greatest runs in history. <h2>The trendy little sister</h2>As any elder sibling knows well, sometimes the flashy, fun younger sister can outshine even the most well-prepared eldest. Miu Miu is doing just that. The more experimental brand has become the "It" girl of the fashion industry. It's number two on The Lyst Fashion Index, a quarterly measure of the hottest fashion brands. Searches for Miu Miu are up 47% this year on luxury resale platform The RealReal. The micro minis that stormed the runway in 2021, a sneaker collab with New Balance, and the quilted Wander bags have become must-have looks. That's translated into impressive results: <keyword id="19957111" type="General" weightage="20" keywordseo="retail-sales" source="keywords">Retail sales</keyword> were up 50% in 2023 and 86% in the first half of this year. Last quarter, website traffic was up 110% year over year, Stifel's Rogerio Fujimori reported in his July note. The brand will likely hit $1 billion in revenue this year. <div type="image" title="Miu Miu micro miniskirt" height="3109" width="4663" msid="113815737" hostid="261"></div>Part of it is the brand's messaging. "Miu Miu is resonating with consumers because of a savvy mix of product and communication marketing," Solca said. In a recent note, he highlighted the brand's events — a tennis club, literary club, and film series — that go beyond just fashion to form a "cultural aesthetic." Miu Miu has embraced stars (Sydney Sweeney and Gigi Hadid were featured in recent campaigns), which has energized its following. The brand has also managed to tap into Asian markets — one of the <a target="_blank" href="https://www.businessinsider.com/china-luxury-retail-sales-slowdown-brands-fashion-2024-7">most challenging sectors for luxury brands</a>. Again, some smart marketing has helped. The brand enlisted K-pop icons as ambassadors and dressed Chinese stars Lexie Liu, Zhao Jinmai, and Wu Yanshu. It also increased spending on Little Red Book, a social media platform in China, and threw events in Tokyo, Taipei, and Nanjing. In short — pun intended — you can't get trendier than Miu Miu right now, and being trendy is good for business. <h2>The business behind the boom</h2>But Miu Miu's popularity, as attention-grabbing as it is, is only part of the story. The brand accounted for 15% of Prada's sales last year. HSBC analysts called its growth a "(big) cherry on the cake" — the cake being Prada (which didn't respond to a request for comment from Business Insider for this story). Behind Miu Miu's Mary Jane shoes and Arcade bags is a success story at its parent company. The group's namesake line is growing, albeit at a slower and steadier pace. Prada's retail sales were up 3% in the first half of the year compared to last year and 7% in 2023. It's been among Lyst's top five hottest brands since 2022. This didn't happen by accident: In 2017, Prada committed to a turnaround strategy following a few losing yearsand a drop in profitability. At more than 100 years old, Prada hadn't entered the new millennium: Its full product line wasn't available through e-commerce, and its advertising wasn't digitized. "In 2015, the tide really turned for them," Jelena Sokolova, a senior analyst for Morningstar, told Business Insider. "They fared worse than the industry: Sales were negative for a number of years; their earnings plummeted." In response, Prada focused on retail, a channel in which it can control prices and cut back on wholesale, which now represents only 11% of sales. It made an effort to cut down on discounts — a problem that has <a target="_blank" href="https://www.businessinsider.com/how-burberry-became-fashions-biggest-fail-stock-drop-ceo-ousting-2024-8">plagued labels like Burberry</a> and Gucci and can lead to diminishing brand perception. At its retail stores, new CEO Andrea Guerra, who arrived in 2023 from LVMH, has drilled down on productivity, or how much money each square foot of retail space generates, by launching in-store installations, forming one-to-one relationships between sales associates and customers, and infusing stores with wearable pieces and collaborations. The company closed stores that weren't performing and renovated the ones that were. It's worked: Retail productivity has increased 32.5% between 2019 and 2023. <div type="image" title="Prada store" height="3333" width="5000" msid="113815742" hostid="261"></div>There has also been a slew of management changes. In 2020, the company brought on Raf Simons, heralded as one of the biggest stars in the design world, as co-creative director, sharing the title with Muccia Prada — the company's billionaire heiress who The New York Times has <a target="_blank" href="https://www.nytimes.com/2023/10/04/style/miu-miu-chanel-louis-vuitton-paris-fashion-week.html">referred</a> to as "the most influential woman in fashion." Prada now has more time to use her keen sense of design at Miu Miu. In the years following, it recruited talent from LVMH and Goldman Sachs to join its top ranks. And then there is the sheer cyclicality of fashion and the fact that, after a few years of being less-than-hot, Prada is once again on the rise. It has embraced the 1990s and Y2K aesthetic — a heyday for Prada — popular with Gen Z and was the most searched brand among the demographic on The RealReal. Hit products pushed the profitable leather goods category to revenues of more than $2 billion last year. There was a reimagining of the early 2010s it-bag, the Galleria, complete with a Scarlett Johansson-led campaign. Other handbag rereleases, like that of the Nylon, have taken off, while new purse styles like the Buckle and Arqué got callouts in last year's earnings report. That momentum gave the brand an upper hand going into the luxury downturn. "People prioritize which brands they want to spend on. With a limited budget, first, you drop the ones that were not hot to begin with," Sokolova said. <h2>Can Prada's hot streak last?</h2>Just as fashion comes in, it can come out. And Prada's story — particularly Miu Miu's rapid-fire growth — in some ways mimics that of <a target="_blank" href="https://www.businessinsider.com/gucci-sales-profit-reputation-falling-luxury-kering-michele-china-2024-5">Gucci's hype-driven rise and plummeting fall under Alessandro Michele</a>. "You kind of become a victim of your own success," Sokolova said. Both Prada and Miu Miu are susceptible to volatility, though for different reasons. Miu Miu is still relatively small, meaning its brand identity is not yet established enough to withstand the whims of consumers. CEO Guerra has acknowledged that such incredible growth can lead to a challenge. "There appears to be a glass ceiling," Solca wrote in a recent note. "Being prominent brings fatigue: after a while, consumers feel they have seen and done enough with these brands and move on." Prada, meanwhile, is more exposed in the cyclical ready-to-wear category — which makes up 32% of sales — than other brands like Gucci and YSL. But there are signs of continued growth: Miu Miu is adding 10 to 15 stores next year, while Prada is adding five to 10, the company has said. The brand's retail footprint is particularly underpenetrated in the US. The company's beauty business is still nascent. Last year, it launched skincare and makeup through a partnership with L'Oréal, and there is more money to be made in that sector. With so much control of its sales chain, the company can raise prices and limit overexposure through low-end collaborations or expansion into cheap categories. Plus, the slowdown hasn't happened yet: Miu Miu website traffic and sales continued to grow between the first and second quarters, and the company maintains it's not a flash in the pan. "This is a result of many years of work on the brand, on the products, on the people," Guerra said about Miu Miu's success on the company's most recent earnings call. Meanwhile, <a target="_blank" href="https://www.businessinsider.com/prada-white-tank-top-status-symbol-2024-2">Prada has maintained its brand value</a>. But the woman Miuccia Prada herself knows the pressure is on. "I was very nervous for this show," she told reporters backstage at the line's fashion show earlier this month about the new collection, <a target="_blank" href="https://www.nytimes.com/2024/09/20/style/prada-fendi-milan-fashion-week.html">The New York Times reported</a>. "Much more than usual." September 30, 2024 — An earlier version of this story misspelled the name of Miuccia Prada.

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