LUXEPLACE’s Post

The imperative of professional brand management for high-end luxury brands cannot be overstated. It serves as a linchpin in elevating company worth and ensuring sustained prosperity, even amidst economic turbulence. While stalwarts like Hermès continue to flourish despite market challenges, others such as Burberry and Kering face formidable hurdles. In essence, investing in top-tier brand management and impeccable brand communication is not merely about enhancing company valuation; it is the cornerstone of enduring commercial success and resilience in the face of market volatility and economic uncertainty. Through bespoke PR and brand communication strategies tailored to the luxury landscape, we excel in distinguishing, articulating, and solidifying luxury brands in a fiercely competitive arena, catering to the refined preferences of our discerning clientele. #PRstrategy #luxurybrands #highendLuxury #brandcommunication #publicrelations #luxurymarketing #m2maydell #empoweringluxurybrands #nilsmaydell

📉 Luxury Industry Update: LVMH's Q3 results highlight a notable slowdown, especially in the fashion and leather goods sector, which saw a 5% decline, bringing in €9.15 billion. Group sales dipped 3% overall, a contrast from the slight growth we saw in Q1 and Q2. According to CFO Jean-Jacques Guiony, brands like Louis Vuitton and Dior are facing mixed performances, with added pressure from weak consumer confidence in Mainland China. It’s eye-opening to see how external economic factors can heavily impact consumer spending in luxury. Despite these challenges, LVMH’s focus on product innovation and cost adjustments speaks to the adaptability that’s essential for resilience in luxury. As someone passionate about this sector, I’m curious to see how brands can not only recover but also innovate to maintain their allure.

Ganni A/S, the clean-cut Danish hipster #label, has named the former Balenciaga executive Laura du Rusquec to be its new #CEO in a significant shift of emphasis at the brand. Eduardo Velasco Andrea Baldo #Retail #TextileRetail #ApparelRetail #RetailNews #RetailIndustry #DailyNews #ApparelResources #FashionBrand #ApparelIndustry

Hermes continues to grow revenues and profits significantly faster than LV and Gucci in the key US and Asian markets. Hermes success underlines their superior branding, marketing and product selection compared to LV and Gucci despite their claims of a depressed luxury market or other external forces. Recent management changes and continued ineffective and inefficient marketing can no longer be ignored at LV and Gucci and the more authentic and differentiated organic methods at Hermes need to be accurately appreciated. Don’t be blinded by hollow marco excuses and finger pointing. Understanding your real customers and building your own voice is more important than ever not just fabricating another brand partnership, AI or overpriced influencer. Chapeau Hermes!

THE STRATEGY BEHIND MIU MIU'S EXPLOSIVE GROWTH The Business of Fashion by Rachel Sanderson: How did Miu Miu grow by 58 percent last year? CEO Benedetta Petruzzo breaks down the plan that has powered eye-popping acceleration in a slowing luxury market. KEY INSIGHTS Growth at Prada’s Miu Miu label is far outpacing the wider luxury market: retail sales were up 58 percent in 2023, and accelerated by 82 percent in Q4. The brand’s success is due to a product and styling revamp that speaks to a broad church of consumers, “conversational” pieces and strengthened operations. CEO Benedetta Petruzzo, who joined in 2020, is convinced Miu Miu is just starting its growth spurt. To understand the business momentum and aspirations of Prada‘s Miu Miu label, there’s no better place to start than the runway show it staged on the last day of Paris Fashion Week. Designer Miuccia Prada sent out a lineup of wearable looks, referencing life’s many stages, from girlhood to adulthood, on a cast that included Gigi Hadid, 28, and Kristin Scott Thomas, 63. Originally conceived as a youthful sibling to grown-up Prada, Miu Miu, which last week reported retail sales that were up 58 percent in 2023, has in recent years turned its little sister positioning on its head, opting for a new strategy that speaks to a broader church of customers. “The point is you can choose what you wear,” Miuccia Prada said after the show. “I have to decide every morning if I am going to dress as I was as a 15-year-old girl or the lady I am today.” The offering has become not only ageless, but increasingly genderless, too. Today’s Miu Miu aims to “speak to a universe of people,” said the brand’s chief executive Benedetta Petruzzo, herself a thirty-something, in Milan the day after Prada Group released its latest set of results. “The opening up of the casting of the runway show says a lot,” Petruzzo added. “It says: I know the rules and I will have fun subverting them. There’s a joie de vivre about it. It’s a youthful energy linked, not to age, but to attitude.” In other words, it’s more about psychographics than demographics. And while Miu Miu’s brand is still about the younger, freer, less conceptual side of Mrs Prada, the clothes and styling have changed dramatically in recent years, in part due to the arrival of super-stylist Lotta Volkova. It was during the pandemic lockdowns that the revamp started in earnest, according to executives. And last week’s results showed that the project is gaining pace: retail sales accelerated by 82 percent in the fourth quarter with strong momentum in China and the rest of Asia. EBIT margin improved to 22.5 percent of revenues. Growth, said Petruzzo, is “transversal; it’s happening across products and geographies.” Miu Miu now accounts for 15 percent of sales of Prada Group compared with 12 percent in 2022. explore more: https://lnkd.in/g6GX9-x4 #web3 #metaverse #fashion #btc #investment #ai

The dangers of over-elevation. Favorite buzzword in fashion and beauty boardrooms, elevation is to be handled carefully. The Business of Fashion describes how Burberry has being straying too far in pursuit for it. Equally, many luxury brands also see their prices heavily questioned and now face slower sales. In the end, they blame China’s slow-down ...which is so much easier than acknowledging a strategic faux-pas. In fact, over-elevation disrupts a key part of the mix: the VALUE. This fine balance of quality, desirability, function and price is essential for purchase intent and conversion. Rather ironically, Chinese consumers are world-masters at recognizing this balance. Today, winning Brands are often the ones either delivering the right value (E.L.F. BEAUTY, Ralph Lauren, JACQUEMUS, Sézane, Sol de Janeiro as examples) or showcasing quality (Loro Piana and Hermès) on top of an authentic story-telling. Also interesting to notice: Burberry Beauty saw its value mix refined by Coty and is now much more successful than when it was under the full control of the Brand.   Time for all to assess strategies as the hangover of over-elevation will be lengthy and painful. #luxury #fashion #beauty #price #value #china #mix #elevation #marketingbasics Read more:

Activating brands is an exhilarating part of our business, and this one by Louis Vuitton is a great example of how it's done. By giving existing and potential customers the chance to immerse themselves in what the brand is all about, they get a real sense of what's in it for them. Louis Vuitton provides a lifestyle that is both luxurious and aspirational, solving the problem of wanting to look and feel stylish while also being practical. And let's not forget the feeling of confidence that comes with carrying a Louis Vuitton bag or wearing their clothing. What lifestyle does your brand provide? What problem does your brand solve for your customers? How does your brand make them feel? These are all important questions to consider when activating your brand. https://lnkd.in/gXCDbc5R #brandactivation #marketing #louisvuitton

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.

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.

With Burberry issuing a second profit warning last week and Gucci’s parent company Kering due to release later this week, Vogue Business discusses whether consumers are turning away from the luxury brands. I’ve posted previously about the Court interventions in Italy for Dior and Armani following allegations of poor working conditions within their respective supply chains. A WSJ investigation discovered that a Dior tote bag retailing at $2,800 was put together for as little as $57. Armani had a bag being supplied for $100 which was then sold for nearly $2,000! This has shone a light on the luxury goods market, with many consumers feeling that the fashion houses have potentially compromised their integrity, especially within their supply chains, which is starting to impact sales volumes. With more and more retailers offering the opportunity to purchase items directly from their websites, choice for the consumer has never been greater. And it is also becoming increasingly easy to delve into supply chain behaviours. Unfortunately, as fans of FARFETCH and MATCHES will tell you, the battle for sales of luxury goods is proving harder than ever. #turnaround #consumer #retail #luxurygoods