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CHANEL nears USD 20 billion in sales in 2023 Sales climbed by 14.6 percent to $19.7 billion last year, with double-digit growth across its fashion, fragrance and jewellery products. Chanel also plans to expand their retail footprint in 2024 following their positive year. Chanel is the second-largest luxury brand globally behind Louis Vuitton, whose sales surpassed €22 billion in 2023. “It’s a testament to the desire for Chanel creation and the sustained investment we have made in our clients in creating the ultimate luxury experience for our clients and in supporting our people to grow and develop,” said Chanel’s global CEO Leena Nair. By region, Chanel’s growth in 2023 was led by Asia-Pacific (up 21.6 per cent), followed by Europe (up 16.4 per cent) and the Americas (2.4 per cent). “Sales increased in all markets, with double-digit growth across all categories, and momentum carried into the final quarter,” said Philippe Blondiaux, global CFO. Click on the link below to read more. #chanel #news #luxury #fashion

One company that has stood out from the rest of the luxury fashion brands is Miu Miu. An interesting article on Miu Miu able to deliver a sterling performance in a challenging luxury market. Luxury companies, including Gucci, Watches of Switzerland, and LVMH, have been facing challenges due to an economic downturn in China, resulting in decreased demand for luxury goods. However, Miu Miu, an Italian fashion giant, has been an exception to this trend. Miu Miu reported an impressive 89% growth in first-quarter sales and topped the Lyst index, a quarterly ranking of trendy fashion brands. The brand's success can be attributed to its effective use of social media, particularly TikTok. Its micro-mini skirts for Spring/Summer 2022 became a viral sensation on TikTok, leading to a surge in demand and boosting sales. The company has successfully targeted a younger demographic, particularly Gen Z in China, through its "Miu Miu girl" branding. The brand has enlisted popular Thai and K-pop stars as brand ambassadors, resonating with the desired image of a younger, rebellious intellectual persona. The company's success in tapping into Chinese fashion trends and reflecting what's on trend has contributed to its growth. However, Miu Miu acknowledges the challenges in the market environment and emphasizes the need for flexibility, agility, innovation, and investment to respond to evolving industry dynamics. Overall, Miu Miu's success is a result of its effective branding, customer loyalty, and ability to adapt to market trends, particularly through social media platforms like TikTok #miumiu #italianfashion #luxuryfashion #strategy

Some Luxury Brands Have Priced Themselves Out of Reach. Sales growth at designer fashion labels is becoming more polarized. Aggressive price moves help explain why. https://lnkd.in/e5sQPEGW #tradeguard #receivableputoptions #arputs #receivableputs #tradereceivables #accountsreceivables

Re-Hub has just released its Compass Index placing Louis Vuitton as the top luxury brand on Chinese social media platforms, followed closely behind by Gucci – which surprised many given the brand's recent challenges in the market. This is indicative of Gucci's enduring brand equity, as evidenced also by the 2024 Brand Relevance Report from RTG Consulting Group which saw Gucci ranked as highly relevant in 6 key fashion capitals in the APAC region (including Shanghai), second only to Chanel. How can luxury brands continue to appeal and stay relevant with the evolving Asian consumer? https://lnkd.in/gcSqw--4

Alright, LVMH group released its H1 2024 results yesterday. The group missed earnings by a meagrely 1%. In a world where we want growth all the time and expect the Blue Chip names like LVMH to set the tone, them missing sales and net profit estimates is seen as huge. I have been reading some articles saying the "Good Days for Luxury are Over". I will try to debunk this myth and sensational headlines. First, let us look at the immediate issues: 1. China has slowed down - not only for LVMH, but for Hermès, Kering, Richemont. Every luxury group on the planet. China is a black box, there are certainly signs that the Chinese economy may be slowing down. Interesting things to note though - LVMH Asia ex. Japan revenue went down by 14% in Q2 2024,. But guess what, Japan sales rose 57% during their period. 🙆♀️ The favourable exchange rates including YEN is causing this shift to "buy from Japan" Phenomenon 2. Price hikes - All luxury brands have gone on an overdrive when it comes to prices hikes. I know a thing or 2 about watches. An IWC Schaffhausen Pilots watch has more than doubled in Price in the past 5 years. A Jaeger-LeCoultre Reverso steel has gone up 2.5x in the past 6 years. I can name brands in leather goods (Hermès ++). Similar sights everywhere. High prices are starting to hurt. Most definitely. Watches and Jewellery is down 19% by the way!! 3. 1% revenue growth with ~8% price increase means if there were no Price hikes, the sales is 7% down. essentially, compression on Volumes. 4. Challenging Geopolitical environment and certain expectation of slowdown causing customer to exercise caution and delay purchases Now, WHY I think this is a passing phenomenon and that Luxury is still in good stead if they were to do the following, and some of the following were to come to reality: 1. UBS global Wealth Report - 9TR USD worth of wealth is going to be transferred to women within the next few years (Horizontal wealth Transfer). Millennials are going to inherit 84 TR USD in the net 2-3 decades. These are great signs in terms of sheer buying power in the hands of the right kind of consumer 2. Brands should get their act together when it comes to ESG. A recent raid by the Authorities in Italy revealed sweat shops being run outside Milan, these concerns around wages, quality of materials used, and a lot more need to be quelled by the brands 3. Price Hikes - Yikes. Simple, just control the price Hikes for god's sake! Just because COVID was a time when people were home, didn't travel, or spent on food and other experiences, all their money went to buying luxury goods. That phenomenon is over. Brands need to get back to Volume increases in the next result cycles. Over reliance on price Increases is dangerous #lvmh #richemont #luxury https://lnkd.in/d_wQPuey.

The Economic Struggle of Luxury Brands Luxury fashion brands, including Burberry, Hugo Boss, Swatch Group, and Richemont, reported disappointing earnings for the first half of 2024, with significant sales declines in Asia and the Americas. Burberry's and Hugo Boss's shares dropped sharply, with both companies issuing profit warnings after reporting substantial declines in operating profits. The sector's reliance on China, which faces economic challenges like slowing GDP growth and rising luxury return rates, has exacerbated the industry's struggles. LVMH, Kering, and Hermes are set to release their earnings soon, amid an overall 30% decline in the S&P 500 Textiles Apparel & Luxury Goods Index. However, Miu Miu remains an outlier, experiencing significant growth driven by popularity in Asia and younger markets. Source: Park, A. (2024, July 23). Luxury fashion is struggling in the first half of 2024—Here’s why. | Forbes.

Chanel achieves an impressive milestone with $20 billion in sales for 2023, marking a significant triumph in the beauty industry. Here's why this achievement stands out: 1. Luxury Dominance: Chanel's exceptional sales underscore its dominance in the luxury beauty market, reflecting the brand's enduring appeal and the unwavering demand for its high-end products. #LuxuryLeader 🏆💄 2. Innovative Offerings: Chanel continues to captivate consumers with innovative make-up and skincare solutions, combining cutting-edge technology with timeless elegance to set new standards in beauty. #BeautyInnovation 🌟💅 3. Global Reach: With a robust global presence, Chanel's success in 2023 highlights its effective market strategies and ability to resonate with diverse audiences across different regions. #GlobalIcon 🌍✨ Celebrate Chanel's remarkable achievement as it sets a new benchmark in luxury beauty sales, showcasing the brand's unparalleled influence and commitment to excellence. 🎉💖 #ChanelSuccess BTW, if anyone reading this is trying to launch or grow their brand in fashion, beauty, or luxury - please check us out and inbox us. We're a pretty big deal, and we love to build empires. Best! https://lnkd.in/eaMsk-_k

Hedi Slimane, the creative director of the French luxury giant LVMH’s Celine, is leaving. The fashion industry is in trouble. And Slimane’s exit marks the latest in a flurry of high-profile departures. One of the biggest and most coveted design jobs in fashion, at Chanel, has been vacant since the summer. As brands have increased the prices of luxury goods, spending has cooled, including in the Chinese market that has long fueled sales. Companies looking to lure back customers are tapping big design talent to reinvigorate their offerings. The economic pressures and accompanying leadership changes have created a sense of upheaval in an industry that hopes customers are focused on the latest runway fashions, not the fashion labels’ balance sheets. The downturn hasn’t hit every brand. Prada, Hermès and Brunello Cucinelli reported sales growth in July. But Burberry, Hugo Boss and Cartier owner Richemont all took a hit. LVMH also reported slowing sales in July, with demand among Chinese consumers dropping. Some labels, such as Burberry and Saint Laurent, have lowered prices to appeal to more middle-class shoppers, while others are introducing smaller styles at more affordable prices. Personally i believe that the strategy to lower prices or producing smaller low price collection is dangerous. We have more examples in history with low price failure. Recently Karl Lagerfeld. A combination of to low price and wrong design made them sell their collection stock to TK Maxx.

IS THIS AN INFLECTION POINT FRO LUXURY FASHION? Imran Amed for The Business of Fashion Key Takeaways: ☀ Several fashion houses remain without creative directors, some are mired in “elevation strategies” that are not working, while others are experiencing a significant deceleration in revenue and profit growth. The latest dominoes to fall are Ferragamo and Hugo Boss. This week, the Italian luxury company and the German fashion juggernaut both reported over 40 percent declines in operating profit in the second quarter. This follows dismal results from Kering, Burberry and flat revenue at sector bellwether LVMH last week. 📈 Of course, there have been some bright spots. Prada Group this week reported an 18 percent increase in revenues, driven by a 93 percent revenue surge at Miu Miu. Last week Hermès also defied the downturn, with a sales up 13 percent, while maintaining strong profit margins. 📢 Things are so murky at the moment that Jean Jacques Guiony, the seasoned CFO of LVMH known for his steady hand, said at the conclusion of the group’s second quarter results presentation, that “we have no idea what the outlook will be. We’ll have a slightly more favourable comparison base in the second half of the year. Is it sufficient to be optimistic? I don’t know. In retail, our visibility is as good as yesterday’s sales.” 💵 Another factor often mentioned when trying to analyse what is going on in the fashion business is the significant reduction in spend by aspirational customers who binged on luxury products during the pandemic given the boost in disposable income that came from stimulus cheques and built-up savings, when there was nothing else they could spend money on. 🦄 This period is well and truly over, and these customers are now back in the world, dining out, traveling and spending on other priorities. When your closet is bursting with clothes and bags you bought during the lockdowns, and your disposable income is smaller because of the higher cost of living, and you also want to do other things that enrich your life, fashion starts to fall down the list of priorities, especially when prices have been dramatically increased, impacting the perceived value of products that are made and sold in the hundreds of thousands. LEARN MORE: https://lnkd.in/dMTQekCg #web3 #investment #ai #metaverse #fashion