Lanvin Group’s Post

Just expressed a loud LOL chuckle to the comments of Mr. Chan. So much spotlight on "managers", while the numbers across the indicators that measure the latter's performance are utterly 'mediocre' (and that's a generous way to put it). Justifiably, the 'NYSE: LANV' share price does justice (forgive the redundancy) to "the efforts of [Mr. Chan and his] managers". 'Good for you', Mr. Chan, on "[o]ngoing margin improvement". Surely, noticed the price bumps in hundreds of dollars on some of the items. Arguably, a 'remarkable' display of "focused brand strategies" and "increasing operational efficiency", when the sales volumes are lagging behind. (Excuse the sarcasm.) If the decision-makers at Fosun paid a closer attention to the approaches of Arnaults, Pinaults, Rossos, and Bertelli/Pradas, whose success they so ungracefully and futilely seek to replicate, perhaps they would have noticed that it is the 'creators and artisans' who "drive companies", "drive results", and "drive profitability" (apparently Mr. Chan has a thing for "driv[-ing]") in Fashion Industry, not so much the "managers". The "provenance and heritage" of the brands in the group's portfolio are, indeed, "second-to-none", but despite (or, perhaps, because of) that acknowledgement by Mr. Chan, it appears as though the group's executive suite and the patrons at Fosun have taken the advantages of the brands' lineages for granted and, thus, have overlooked the role that the creative work around product plays in the dynamic of a fashion label's success. If managed sensibly, the group's eponymous brand alone could carry the entire portfolio like the 'magnificent seven' carries the S&P500.  It could have been an easy, quick turnaround to profitability for the female-founded, oldest operating French fashion house, if Fosun's priorities were creative directorship and craftsmanship, rather than some general management concepts. Instead, the creatively-distabilized house has been deployed as a vehicle for an ungainly chase after the successful luxury-brand conglomerates. Against the backdrop of that misplaced focus, the group's (its management's) lackluster performance and dwindling stock price appear unsurprising.

New CEO of Audemars Piguet, Ilaria Resta, Shifts Focus from Growth to Brand Reputation and Quality In a recent report by Business of Fashion, the newly appointed CEO of Audemars Piguet, Ilaria Resta, is charting a new course for the brand's growth strategy. Instead of prioritizing mere expansion in production and sales, Resta is placing paramount importance on bolstering brand reputation, ensuring impeccable product quality, and fostering a culture of innovation. Under her stewardship, growth is not the ultimate goal; rather, Resta aims to establish Audemars Piguet as the epitome of excellence in the luxury watch industry. Resta's strategic vision entails a significant shift away from merely expanding production capacity to optimizing the company's organizational structure. Despite rumors of a potential sale, the owners are committed to maintaining Audemars Piguet's independence and autonomy. In practical terms, Resta intends to introduce more intricate and sophisticated models at higher price points. She also plans to increase mark-ups on the brand's flagship models in the secondary market, aligning them with esteemed competitors like Patek Philippe and Rolex. This strategy involves direct engagement with customers, leveraging the brand's image, and possibly creating artificial scarcity to enhance desirability. Recognizing changing consumer preferences, Resta aims to introduce smaller unisex models, as the concept of gender-specific watches becomes less relevant. Additionally, she plans to expand the Code 11.59 line to attract a broader customer base, building on its current success, accounting for 11% of overall sales. To drive profits, Audemars Piguet will prioritize sales through its own boutiques, known as AP houses, over dealer networks. Resta plans to cultivate stronger relationships with top clients and brand ambassadors. Collaborations will also be strategic, focusing on fit rather than personal preference. The luxury industry grapples with the challenge of managing unsold inventory, a problem faced by conglomerates like LVMH and Kering. Finding solutions without compromising brand integrity is crucial. Amidst evolving market dynamics and cooling demand, Resta's decision to eschew aggressive production expansion appears prudent for Audemars Piguet. Early indications of this strategic shift are already apparent in the brand's latest releases. For those considering an Audemars Piguet timepiece, now may be an opportune time to make a purchase, as prices are expected to rise noticeably in the near future.

The new CEO of Audemars Piguet, Ilaria Resta, Shifts Focus from Growth to Brand Reputation and Quality In a recent report by Business of Fashion, the newly appointed CEO of Audemars Piguet, Ilaria Resta, is charting a new course for the brand's growth strategy. Instead of prioritizing mere expansion in production and sales, Resta is placing paramount importance on bolstering brand reputation, ensuring impeccable product quality, and fostering a culture of innovation. Under her stewardship, growth is not the ultimate goal; rather, Resta aims to establish Audemars Piguet as the epitome of excellence in the luxury watch industry. Resta's strategic vision entails a significant shift away from merely expanding production capacity to optimizing the company's organizational structure. Despite rumors of a potential sale, the owners are committed to maintaining Audemars Piguet's independence and autonomy. In practical terms, Resta intends to introduce more intricate and sophisticated models at higher price points. She also plans to increase mark-ups on the brand's flagship models in the secondary market, aligning them with esteemed competitors like Patek Philippe and Rolex. This strategy involves direct engagement with customers, leveraging the brand's image, and possibly creating artificial scarcity to enhance desirability. Recognizing changing consumer preferences, Resta aims to introduce smaller unisex models, as the concept of gender-specific watches becomes less relevant. Additionally, she plans to expand the Code 11.59 line to attract a broader customer base, building on its current success, accounting for 11% of overall sales. To drive profits, Audemars Piguet will prioritize sales through its own boutiques, known as AP houses, over dealer networks. Resta plans to cultivate stronger relationships with top clients and brand ambassadors. Collaborations will also be strategic, focusing on fit rather than personal preference. The luxury industry grapples with the challenge of managing unsold inventory, a problem faced by conglomerates like LVMH and Kering. Finding solutions without compromising brand integrity is crucial. Amidst evolving market dynamics and cooling demand, Resta's decision to eschew aggressive production expansion appears prudent for Audemars Piguet. Early indications of this strategic shift are already apparent in the brand's latest releases. For those considering an Audemars Piguet timepiece, now may be an opportune time to make a purchase, as prices are expected to rise noticeably in the near future.

According to McKinsey’s fashion forecast analysis, the global industry will show revenue growth of 2 to 4 percent in 2024, with the luxury segment continuing to generate the majority of economic gains. LVMH led with a 9 percent increase in sales, reaching over 86 billion euros, and a net profit surpassing 15 billion euros. Hermès notably outperformed, with net profits rising by 28 percent and sales by 16 percent. There’s no doubt: the luxury sector is a tempting market to enter. But how can one do so successfully? FashionUnited takes a closer look at this question with the case study of Gilt.

What Miu Miu is Doing Right https://lnkd.in/e32V7dgQ #luxury #luxurystrategy #fashion #luxuryfashion #contentstrategy #socialmedia #shoppablecommerce #ecommerce #digitalstrategy

Post 1/2: In response to Fabi Becheri’s post: Brand performance. Caveat(s) anyone? ‘There are limitations to using year-to-date (YTD) performance as the sole indicator of trends in the fashion industry’. ‘Distinct possibility data will be scrutinized and validity potentially questioned it terms of context’. As was correctly pointed out, YTD data alone can be influenced by short-term market reactions and corrections, however would combining this with a longer-term view (FY2023) provide valuable insights into industry trends, company performance, and the effectiveness of different strategies in navigating challenging macro scenarios. Irrespective of what the numbers may say, it is clear that the luxury fashion industry is at a critical juncture, where balancing tradition with innovation in the digital era is essential. Could these very recent stock performances of major fashion groups be illustrative of the varying success the individual brands are experiencing in adapting to these challenges? - Luxury Brands: Prada Group (+13.39%) and Hermès (+0.98%) have shown resilience, while others like Moncler (-8.12%), LVMH (-14.71%), Kering (-43.19%), and FERRAGAMO (-45.11%) have faced significant declines. Could this be an indicator of the need for even established luxury brands to evolve in response to changing consumer expectations and market conditions. - Premium Brands: Ralph Lauren (+20.08%) and Tapestry (+10.14%) have performed well, indicating successful strategies in maintaining brand appeal and market relevance. Conversely, Capri Holdings Limited (-21.96%), PVH Corp. (-23.05%), Lanvin Group (-41.55%), and HUGO BOSS (-43.10%) have struggled. Mass Market Brands: Fast Retailing (+27.26%) and Inditex (+26.18%) have outperformed, showcasing the effectiveness of their strategies in blending affordability with cultural credibility. H&M Group (-8.53%) has not fared as well, underscoring the challenges in maintaining a competitive edge. Can Prada's success be attributed to the visionary leadership of Patrizio Bertelli and the dynamic partnership between Miuccia Prada and Raf Simons. Their ability to blend tradition with forward-thinking design has been crucial in maintaining Prada's status as a respected and innovative brand. This partnership exemplifies how luxury brands can balance tradition and innovation, a crucial dynamic as consumer expectations evolve. #LuxuryFashion #SustainableFashion #CircularEconomy #FashionInnovation #RetailTrends #MassMarketFashion #FashionTech #DigitalTransformation #FutureOfFashion #FashionBusiness @PradaGroup @Hermes @LVMH @Kering @Burberry @Uniqlo @Inditex @HMGroup @BestsellerCompany @FastRetailing @MiucciaPrada @RafSimons @PatrizioBertelli @ClaireWaightKeller @ChristopheLemaire @SaraLihnTran @BritishFashionCouncil @GlobalFashionAgenda @FashionRevolution @EllenMacArthurFoundation @McKinsey @Deloitte

Desirability is everything when it comes to long term luxury brand building. Our research has proven that over the last 10 years, the most desirable brands have consistently outperformed and outgrown the market. But measuring desirability is a challenge in itself. Large brand could benefit of an halo effect while losing attractiveness to the most advanced / trendy consumers. Conversally, small brands can have massive clout to niche audience but how to anticipate their ability to scale ? Our friends at The Business of Fashion have made an interesting attempt with the second edition of their brand magic index. Behind the well rounded (?) methodology, any measure of desirability should match our intuition: - is Gucci hotter right now than Prada and Miu Miu ? Doubt it - does Calvin Klein has more « magic » than Hermès and CHANEL ? Doubt it as well Countless of those examples would lead us to two conclusions - intuition, intuition, intuition and consumers over pseudo scientific methodologies - it’s all relative to sub-audiences, and ability to first convince a core group of consumers, than scale. One single ranking will never make the trick as all brands don’t belong to the same playing field More to come from us. Stay tuned Highsnobiety

FOR LVMH, IT'S A BATTLE FOR MARKET SHARE NOW. LET THE GAME BEGIN A shrinking market will require a renewed focus on creativity, greater innovation and a mindset shift among luxury leaders, writes Imran Amed for The Business of Fashion. 🔰 Key takeaways: ✔ This week, the fashion industry took a sharp intake of breath as LVMH reported a 5 percent decline in third-quarter sales in its core fashion and leather goods division, which includes megabrands like Louis Vuittonand Dior as well as a next tier of fast-rising billion-dollar brands like Loewe and Celine. A sharp slowdown in luxury demand has resulted in unfamiliar operational consequences after a long growth streak. Brands throughout the industry are now in cost cutting mode, reducing staff, consolidating retail operations and dialling back marketing expenses. ⚜ It’s much easier to grow a business when the entire market is growing. Now that the overall market has stalled, LVMH will have to take market share away from its competitors in order to grow. 📛 This is a significant paradigm shift that will require luxury leaders to change their mindsets. For the most part, they have not had to navigate a shrinking market before. Some of them will privately admit that the industry has become a bit complacent. By raising prices, opening new stores, expanding production and investing in marketing and communications, they have even been able to drive growth in a buoyant, expanding market. ❗ Luxury also needs to reorient its focus towards genuine quality and ethical craftsmanship, and away from mass-produced luxury merch fuelled by celebrity hype and marketing. The number of K-Pop or Thai stars in a show’s front row, and the amount of media attention they can generate amongst their fandoms, should not be a key performance indicator for this industry. Based on some comments that Bernard Arnault, LVMH’s chairman and chief executive, made last week, this is something that he seems to have already grasped, even if the industry might still be catching up. “People talk a lot about marketing, but ultimately, marketing is completely secondary. Our future customers should feel drawn to our products because of their perception of the excellence of our craftspeople, and not because we’re trying to reel them in with some classic marketing tactic based on a study of what they want,” he said at the 10th anniversary of LVMH’s Institut des Métiers d’Excellence in Paris. The luxury market has officially entered a new era. Let the games begin. LEARN MORE: https://lnkd.in/gc-W4GbU #web3 #investment #metaverse #ai #fashion #technology #crypto #paris #parisfashionweek #innovation #crypto #blockchain

I’m happy to share that I’ve started my Postgraduate in Luxury & Fashion Brand Management at FAD Institute of Luxury Fashion & Style! #LuxuryBrandManagement #Marketing #BrandManagement ##LuxuryIndustry #FashionBusiness #FashionMarketing #BrandStrategy