CARRARA advisory’s Post

Brands, take note! Miu Miu just schooled everyone on brand loyalty by giving superfan Dr. Qin Huilan a runway moment. Here's why this is pure genius 👇 🔹Dr. Huilan wasn't just spending money, she was a vocal brand champion who showcased her Miu Miu love on social media. 🔹Miu Miu rewarded her devotion with an unforgettable experience. 🔹Now, Dr. Huilan has a story for the ages, solidifying her brand loyalty and inspiring more and more shoppers - and brands. The lesson? Experiences are the new loyalty currency. What do you think of this customer reward experience? 🎈 #BrandLoyalty #CustomerRewards #MiuMiu

Lately there have been lots of discussion about luxury groups creating in-house beauty division and the future of the beauty licensing business... so let's look at a couple of data! The three main groups that have an in-house beauty division are LVMH, Richemont (since 2023) and Kering (since 2023). The first one, despite the long standing in-house business, manages only 86% of its beauty brands in-house (e.g. Marc Jacob and Tiffany are under license with Coty), Kering has been able to bring in house 60% of the beauty brands (e.g. Gucci still in license with Coty and Bucheron with Interparfums) and Richemont is lagging behind with 40% (e.g. Montblanc and Van Cleef & Arpels still in license with Interparfums). Obviously there will still be moves in the future considering the temporary contractual boundaries, yet not all brands might move in house for several reasons (size, complexity, historical reasons...). On top, only a relatively small percentage of the brands of many of these groups do currently hold a beauty business (in-house or under license). Some brands are not relevant at all in this space, others still need to find a proper angle ... and partner. Finally, establishing an in-house beauty division might not be viable at all for other smaller groups that hold only one or few brands relevant in the beauty space. Long story short ... the beauty licensing business will continue to flourish despite the latest moves. #beautyindustry #beautycompanies #luxurygroups #luxury #licensing

In case you missed: MB&F EXPLAINS WHY CHANEL BOUGHT A 25 PERCENT STAKE After LVMH snapped up the high-end table clock maker L’Épée at the end of June, it’s CHANEL’s turn to invest in a prestigious and creative watchmaker: MB&F. MB&F stands for Maximilian Busser Büsser and Friends. It is known for its futuristic designs and three-dimensional cases and has helped L’Épée rise to stardom through audacious collaborative creations. The investments are part of CHANEL and LVMH’s strategy to forge close ties with the best and most innovative watchmakers in Switzerland and gain access to rare know-how. They represent paltry sums but they elevate the two groups to the status of benefactors of the watch industry. Read more: https://lnkd.in/dgMf3SW9

The luxury industry is poised to intersect more deeply with the entertainment world. In a recent development, François-Henri Pinault, the owner of Gucci parent company Kering and PUMA Group through his holdings at Groupe Artémis, acquired a majority stake in Creative Artists Agency, a leading talent management firm representing prominent figures such as George Clooney, Brad Pitt, and Scarlett Johansson. Meanwhile, LVMH under the leadership of Bernard Arnault, is venturing into Hollywood with a new initiative. As the largest player in the luxury sector, boasting 75 brands, LVMH aims to penetrate the entertainment realm through a collaboration with U.S.-based Superconnector Studios. This new platform will strategically integrate LVMH's products into films and TV shows, leveraging the conglomerate's extensive brand portfolio. Antoine Arnault and Anish Melwani are spearheading this endeavor, with a focus on enhancing the company's image and sustainability. Melwani, in particular, has successfully secured significant sponsorships for LVMH, including a prominent presence at the upcoming Paris International Olympic Committee – IOC Games. As Anish Melwani aptly summarizes, this venture represents an evolution, recognizing the inherent connection between luxury and entertainment, both of which are deeply rooted in culture. #media #entertainmentindustry #fashion

𝗧𝗵𝗲 𝗣𝗼𝘄𝗲𝗿 𝗼𝗳 𝗮𝗻 𝗔𝘂𝘁𝗵𝗲𝗻𝘁𝗶𝗰 𝗕𝗿𝗮𝗻𝗱 𝗣𝗿𝗼𝗺𝗶𝘀𝗲 is often dismissed by organizations incapable of building authentic brands or delivering the commitment. Your brand promise isn't just a slogan; it's a commitment that shapes every touchpoint with your consumers. Authenticity in delivering this promise is what sets market leaders apart. This means ensuring that every product experience consistently fulfills that promise for CPG brands. Top luxury brands have much to teach CPG in terms of authentic experiences. Of course, there are different market dynamics. Even though there are CPG luxury brands, much inspiration can be drawn from brands like Hermes, Dior, Prada, etc. #BrandStrategy #CPG #ConsumerTrust

Italian luxury brand Prada Group outperformed in the first half of 2024 with 18% sales growth followed by Hermès (15%) and Brunello Cucinelli (14.7%). While conglomerates LVMH (2%), Richemont (1%) and Kering (-11%) underperformed.   💡 What are these independent luxury brands doing right?   📌  Having clear vision 📌 Keeping tight control over quality   📌 Creating desirability factor 📌 Focusing on right target audience 📌 Sticking to their brand DNA and core values 📌 Maintaining creativity and innovation 📌 Limiting distribution   🤔 Going forward, is it a risky lane for luxury conglomerates?   Your thoughts ❓ #luxury #brands #success #factors #luxeanalytics

Generational shift at the top of LVMH: Toni Belloni, 69, the number 2 at the luxury group, is passing on the baton to Stephane Bianchi, 59. Arnault did say in January the head of the watches and jewelry unit would soon have new responsibilities. When we asked what exactly he'd meant after the annual results presentation, he didn't expand. Belloni spent over 2 decades at the top of LVMH, helping Arnault steer the bling ship. He'll still have some responsibilities, notably strategic missions and will be President of LVMH Italy. For Bianchi, it's quite the move. He joined LVMH in 2018 and steadily rose through the ranks. Becoming the number 2 at the second biggest market cap in Europe is no small feat. #lvmh #managementchanges

2023: Record year for LVMH Biggest fashion house conglomerate reported full year results last week. Investors were cautious about the impact an inflation and higher interest rates have on luxury buyers, that's why LVMH shares underperformed market in recent weeks and fell below 700 EUR per share. Full year results confirmed that luxury buyers are still confident and buys the biggest brands with unique heritage value. LVMH has plenty of these extraordinary companies in their portfolio such LV, Dior, Kenzo, Celine, Hublot, Rimova and many others. Biggest contributor to the record numbers were fashion houses such LV and Dior, underpinned by great performance from Sephora and whole selective retailing portfolio which grew 25% yoy. LVMH also increased full year dividend to 13 EUR per share. Shares of LVMH grew more than 12% after the Q4 results. We added LVMH shares in our portfolio couple months ago as we saw the opportunity to invest. We still like the company as great prospect for upcoming year 2024 with growing revenue and profitability + stable dividend. Juraj Krupa Finding valuable insights, event - driven investments #luxury #lvmh #investments

As seen for the beauty industry, also the watch industry leverages the licensing business model. Out of the 153 watch brands managed by the 35 companies/group we do monitor, 31% are under license agreement. However, there are a couple of difference vs the beauty industry. - Limited to Specialists. Differently from the beauty industry where many groups leverage this business model, in the watch industry this phenomenon is limited to few specialist groups. In fact, there are not so many watch “credible” brands available for acquisition, either they are already part of big groups, or they pass ownership through family generations. Thus, the easiest way to growth the portfolio of brands is either via creating new brands or through licensing brands. This is the model followed by companies such as Movado Group, Inc, Timex Group or Fossil Group, Inc.. On the other hand, groups that have or have been able to get “credible” brands in their portfolio don’t want to dilute their image and credibility via leveraging brands under license (few exceptions here). Notably, this does not mean there is no space for M&A activities, actually the opposite but this will be discussed in another post. - Fewer Licensed Brands. Establishing a brand in the watch industry is even more difficult than in the beauty space. The credibility required to be successful in this industry, especially at mid/high price points, dramatically reduce the choices of brands that can be leveraged under license. Even big and established brands such as Hermès and LVMH (though not under license) have and are still working to build their credibility in this industry, and to do so they also leverage acquisitions (e.g. Joseph Erard Holding 2013 by Hermes and L’épée 2024 by LVMH). Under this perspective talent/celebrity brands are practically not present in the industry (compared to beauty industry where they represent 10-20% of the licenses) and also some of the fashion brands struggle entering. What’s interesting is the fact that while watch & jewelry brands have the credibility to establish a beauty brand (e.g. Cartier, Bvlgari, Chopard…), the other way around does not work. Would you imagine an The Estée Lauder Companies Inc., La Prairie Switzerland or Helena Rubinstein watch? #watchindustry #beautyindustry #licensing #businessmodel #brandslicensing

Frederic Arnault to become CEO of LVMH Watches. LVMH Watches & Jewelry Simon-Jules Darthos Laura Stritt Elena de Cominges chao ROZE Antonella Marcìa Rosa Ferreiro Juan Romero Brufau Theresa Suesakul, SPHR Chloe Pan Antonia Albert Seitaro Kano Aliya-Mara Krucker #pentoz #ceo #innovation #ai #news #newsupdate #update #january #january2024 #developmentcompany #appdevelopmentcompany #innovation2024