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BUSINESS Monday 18 February 2019
A25

Retailers, fashion brands struggle with racial insensitivity

By ANNE D’INNOCENZIO firm. “And even if massive,
Associated Press global movements like the
NEW YORK (AP) — Retail- diversity movement and
ers and top fashion brands other ‘woke’ movements
like Gucci and Prada keep don’t yet seem to be of the
apologizing for products highest importance to all
that smack of racial insen- retailers, in every segment
sitivity. and in every corner of the
The big question is: Why planet, those that think that
does it keep happening? way are most likely doing
Experts say many of these so at their long-term peril.”
fashion companies live in Adheer Bahulkar, a partner
a sort of bubble and lack at consultancy A.T. Kear-
the diversity in their staff ney, agreed, saying that
that could vet their fash- brands need to pay at-
ions. They also blame the tention to issues that might
increasing pressures facing not be noticed within their
the industry to push prod- own culture but that are
ucts from the design board “highly sensitive in another
to the stores and online in culture.”
weeks rather than months Acknowledging their mis-
without taking time to thor- takes, some companies
oughly review products. In this Feb. 21, 2018, file photo, a model wears a creation as part of the Gucci women’s Fall/Winter are now trying to rectify the
“There is such pressure on 2018-2019 collection, presented during the Milan Fashion Week, in Milan, Italy. problem.
speed that there is no time Associated Press Gucci, for instance, an-
for consideration,” said Al- protruding eyes, nose and In a statement posted on pulled an ad that featured nounced Friday it will hire a
len Adamson, co-founder red lips — that critics lik- Twitter, Gucci offered a a black child donning a global director for diversity
of Metaforce, a marketing ened to blackface. The mea culpa and said that sweat shirt with the words and inclusion, a newly cre-
firm. “When you are mov- singer and company said it planned to turn the inci- “Coolest monkey in the ated role. It also is promis-
ing this fast, there is no time they were saddened that dent “into a powerful learn- jungle.” ing to launch a scholarship
for perspective.” it was being compared to ing moment for the Gucci Experts say that companies program to cultivate di-
Just as quickly as mistakes blackface and had envi- team and beyond.” are not keeping up with the verse design talent.
are made, so too are they sioned the designs to be The latest blunders followed pace and complexity of The announcement came
amplified over social me- a nod to “modern art and apologies from Italian de- global expansion. after Gucci CEO Marco Biz-
dia as shoppers take to In- surrealism.” signer Prada, which said in “The fact is, all retailers live zarri met in New York City’s
stagram, Twitter and Face- Last week, Gucci removed December it was no longer in a global village today, Harlem neighborhood with
book to voice complaints. a sweater off the market selling a line of accessories whether they realize it or Dapper Dan, a well-known
In the latest example, Katy after complaints that the that featured a character not,” said Sonia Lapinsky, African-American de-
Perry’s fashion line this oversized collar designed with brown skin and exag- managing director in the signer, and other commu-
week pulled two types of to cover the face resem- gerated red lips. And last retail practice at AlixPart- nity members to hear their
shoes — which featured bled blackface makeup. year, Swedish retailer H&M ners, a global consulting perspectives.q

Buffett’s firm tweaks stock portfolio, adds Suncor, Red Hat

By JOSH FUNK quarterly filings. owning 14 million shares
Associated Press Buffett’s company also in- of StoneCo Ltd., which
OMAHA, Neb. (AP) — Bil- creased its relatively new is a Brazilian credit card
lionaire Warren Buffett’s investment in JPMorgan processor.q
company has taken a new Chase to 50.1 million shares,
stake in Canadian firm Sun- up from nearly 36 million
cor Energy and trimmed its shares last fall.
huge Apple stake. Berkshire also sold the 41.4
Berkshire Hathaway Inc. million Oracle shares it dis-
filed a quarterly update on closed last quarter and re-
its holdings with the Securi- vealed owning 4.2 million
ties and Exchange Com- shares of Red Hat.
mission on Thursday. IBM is in the process of buy-
The Omaha, Nebraska- ing Red Hat in a $34 bil-
based company said it lion deal that translates to
owned 10.76 million Suncor In this May 7, 2018, file photo, Berkshire Hathaway Chairman roughly $190 per Red Hat
shares at the end of last and CEO Warren Buffett smiles during an interview in Omaha, share.
year. But these quarterly fil- Neb., with Liz Claman on Fox Business Network’s “Countdown to Despite the deal an-
ings don’t make clear who the Closing Bell.” nounced at the end of
made the investments. Associated Press October, Red Hat shares
Buffett has said that invest- still held 249.6 million shares company. traded in the $170s in No-
ments of less than $1 billion of the iPhone maker. Investors follow what Berk- vember and December, so
are likely to be the work of Buffett has said he con- shire buys and sells closely Berkshire may be betting
Berkshire’s two other invest- siders Apple a consumer because of Buffett’s suc- on the deal going through
ment managers. products company with a cessful track record. Berk- instead of Red Hat’s long-
Berkshire said it sold nearly strong competitive posi- shire officials don’t gen- term prospects.
3 million Apple shares but it tion, rather than as a tech erally comment on these Berkshire also disclosed