Dr. Lea Sonderegger

Get up to speed with key takeaways from Hogan Lovells' ESG webinar! Here are some notable 'sound bites' for those who couldn't join live.

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"New" Economy turning "Old": Facebook to buy Luxottica/Essilor? Facebook owner Meta has explored a multibillion-euro investment in eyewear group EssilorLuxottica, as the social media platform intensifies its push to develop smart glasses. The Silicon Valley company has considered taking a small stake in the €87bn Franco-Italian group. The move comes as Meta has been holding talks with EssilorLuxottica to deepen their existing collaboration following the successful launch of a revamped version of their “Ray-Ban Meta” smart glasses last year. Meta’s chief Mark Zuckerberg has spent billions of dollars in recent years to enter the wearable technology market, such as by creating virtual reality headsets. Meanwhile, Paris-listed EssilorLuxottica has also pushed for deals that can attract a new generation of shoppers. There is no guarantee that any investment will take place, said the people close to the talks. Meta has been working with Morgan Stanley on the matter. Just to remind everybody: this is almost a decade after Google halted production of its $1,500 Google Glass headsets over privacy concerns.  #openinnovation #innovation #disruption Mind the Bridge Financial Times

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Unlock the secrets of Piaget's groundbreaking theory and its application in education and business in our latest blog post: "Can You Apply Piaget's Theory of Education to Business?" We'll explore the stages of cognitive development and how they influence learning and decision-making, as well as some practical tips on how you can use Piaget's insights to improve teaching methods and organizational development. ⬇️ https://buff.ly/49Ric5R

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One day after EssilorLuxottica announced its deal to acquire Supreme from VF Corporation, Meta, Facebook's owner, is in talks to acquire a stake of about 5% in the eyewear company. Based on recent market value, a roughly 5% stake could be valued at around $5 billion, a relatively small for Meta, given its market value of around $1.2 trillion. EssilorLuxottica makes Meta's Ray Ban smart glasses and sales of the glasses have exceeded expectations. The devices, an important part of Meta’s hardware strategy, allow users to take photos and listen to music with the frames of their glasses, among other features. Maintaining ties with Luxottica is crucial for the success of smart glasses devices and the company’s ambitions to build the so-called metaverse, which is a term used to describe people interacting in a 3-D version of the internet simultaneously. A third generation of Ray-Ban Meta glasses, expected to include a small screen display, is expected to be ready for consumers in time for the 2025 holiday season. The allure of Luxottica’s Ray-Ban brand is important to the success of a tech device that users are expected to wear on their faces. Luxottica’s ownership of LensCrafters, the prescription-eyewear retailer, also plays a key role in selling the Ray-Ban Meta to users who require prescription lenses. The two companies began working together several years ago for the release of the first generation Ray-Ban Stories smart glasses, which went on sale in 2021. The initial device struggled to catch on with consumers, and among the glasses that were sold, only 10% of the Ray-Ban Stories were actively used by their purchasers. The second-generation Ray-Ban Meta glasses went on sale in September and have done significantly better than their predecessors. The Ray-Ban Meta glasses operate more quickly and have better cameras than their predecessor. The Ray-Ban Meta also includes nascent generative #AI technology that allows users to ask the device for information about the things in front of them, such as the breed of a cat. The Ray-Ban Meta glasses have proven popular for users who want to shoot hands-free videos of their children playing and first-person videos of themselves while going on roller coasters or riding bikes. Meta hasn’t said how well the Ray-Ban Meta glasses have sold, but CEO Mark Zuckerberg said in April that the device was doing well and that a market for that type of device was developing sooner than he would have expected. Meta sells its own devices to employees at a discount, and offers the Ray-Ban Meta glasses at a 15% discount with a limit of 3 pairs per employee. The new glasses have proven so popular internally that some employees have tried to get extra pairs from their colleagues after hitting the 3-pair limit. #strategy #technology #smartdevice https://lnkd.in/ePwG-bSc?

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Is the future of luxury clienteling written in code? At the recent 'The Future of Clienteling' panel by Beyond Digital Luxury at the Luxury Innovation Summit & Awards, industry experts agreed: AI isn't just a trend—it's a game-changer. The event, featuring insights from Bettina Sehorsch, Roberto Marino, and Olivier Jolidon, underscored that integrating AI with customer-centric strategies is key for the evolution of luxury experiences. The discussion highlighted the power of personalization through digital engagement, the need for seamless omnichannel journeys, and the crucial role of accurate data in delivering tailored services. Brands that invest in AI-driven solutions not only enhance efficiency but also elevate customer experiences, staying ahead in the competitive luxury market. What’s your take on AI’s impact on luxury clienteling? Let's discuss below. #Clienteling #LuxuryInnovation #AI #CustomerCentricity #DigitalTransformation #LIS2024 #FutureOfLuxury #BeyondDigitalLuxury

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Steady at the tiller - It's a tough moment for fashion in general and the luxury industry in particular. Not only has demand remarkably slowed, for example in China, but also several luxury brands are facing a certain backlash from consumers who are turned off by extraordinary price hikes. Well, Giorgio Armani has (once again) taken a different direction. "In recent seasons, we have sacrificed some margin points to avoid raising retail prices to the levels that inflation would have dictated", says the designer and entrepreneur who recently has celebrated his 90th birthday. "We are well-prepared to manage a market slowdown without needing to maximise year-on-year profit at all costs." In FY 2023, his group has recorded a revenue increase of 6% at constant exchange rates to 2.45 bn Euros with an Ebit of 215 million Euros, hence an Ebit margin of approximately 9%. That's not stellar, but that's no reason for concern, on the contrary, says Armani: "I remain steadfast in my belief that a focus on continuity and a pragmatic, consistent approach is the only way to navigate the challenges and uncertainties that characterise today’s environment." In nautic terms: In a rough see, a firm hand on the tiller is needed. Check-out the full analysis on TextilWirtschaft. #apparel #clothing #retail #luxury #luxus #results #mode #fashion #italy #cnmi #milanfashionweek #designer #entrepreneur #branding #marketing #price #rtw #bekleidung

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You might not know the name Marcolin Spa, the Italian eyewear manufacturer, but you’ll definitely know the brands they produce frames for: Tom Ford, Christian Louboutin, adidas, BMW eyewear, Candies, Gant, 6CDS, Kenneth Cole, Marciano for Guess, Max&Co, MaxMara, Pucci, Skechers, Timberland and Tod’s. Revenues last year crept up 2% but EBITDA grew 27.9% driven by strong performance in Asia following a re-org in the region. Despite this reports have been common that PE backers PAI Partners (83% shareholders) have put Marcolin up for sale at a cool €1.3Bn. Interested parties are said to include Safilo, Marchon, Kering and EssilorLuxottica. #Marcolin insights FY23: 📈 Full Yr revenue €558m, +2% YOY 📈 Adjusted EBITDA reached 78.1 million euros (+27.9% v FY22) 📈 13m glasses sold 📈 EMEA - revenue was +1.7% - driven by the luxury segment in France, UK, Italy and Spain 📈 Americas - revenue was -4.8% - impacted by macroeconomics of the region and a declining eyewear sector 📈 Asia - revenue was +81.5% - Strongest growth came from South Korea, and the countries of SE Asia (operated by third party distributors) 🏭 Revenues by region: EMEA 47.4% Americas 39.6% ROW 5.2% APAC 7.8% Key FY23 Highlights ✅ Paid $250m for a long-term licence agreement with The Estée Lauder Companies for TOM FORD eyewear, a significant extension of the current licence agreement ✅ Acquired the the German company ic! berlin GmbH for €38.5m. The acquisition was arranged with the aim of increasing metalworking expertise and expanding the portfolio of luxury brands, strengthening the commercial position of the Group in key areas such as Asia and Europe. ✅ Signed new licence agreements with MCM and Christian Louboutin (the latter at the beginning of 2024) and the renewal and extension of licence agreements for brands already in the portfolio such as Emilio Pucci, Zegna, Max & Co, GCDS, Harley Davidson and Skechers ESG ✅ Implemented a path to sustainability in line with ESG standards (since 2021). Actions focus on various issues, including carbon emissions reduction and the circular economy. ✅ Reduced use of fossil-based materials. Increased use of innovative plastic materials. The latter include bio-based acetate, which is employed in a number of collections for some of Marcolins key Brands. For injection-molded eyewear, instead, R-PET plastic (Recycled PET) is used Employees / ED&I ✅ 57% of employees are women, 43% of whom are snr managers ✅ With the amalgamation of ic! Berlin headcount increased from 1854 to 2000 ✅ A Psychological Help Desk was launched through an online platform accredited by the Italian Health Service offering 24/7 help and support to anyone in need. The service is anonymous and available to employees and their families. ✅ Approved a new Gender Equality Policy in Nov 23 which establishes the company’s commitment to an inclusive and fair work environment, guaranteeing equal opportunities and parenting support

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The Paradox of Choice (Barry Schwartz): “There’s no question that some choice is better than none, but it doesn’t follow from that, that more choice is better than some choice.” Retail needs to enter its less-is-more era. The era of the endless aisle is over. Shoppers want to be told what to wear — and the retailers that get it right will win. Interesting reading. #BusinessStrategy #AI #Retailing

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Last November, while much of the luxury e-commerce sector was in free fall, Mytheresa’s chief executive, Michael Kliger, seemed sanguine. In the quarter ended Sept. 30, 2023, the high-end e-tailer achieved another quarter of net sales growth, preserving the streak it had maintained since its IPO in 2021. It was faring better than its competitors: The same day, FARFETCH abruptly announced it would not provide its usual quarterly results, all but confirming the company’s dire situation that eventually led to its fire sale to South Korean retailer Coupang weeks later. Experts say these multi-brand players are doing a number of things right: speaking to a specific customer and curating their assortment for them, as well as executing on the basics of retail, including customer service and managing costs and margins. Read the full story by BoF's Marc Bain and Joan Kennedy.

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#luxury retail is really hurting, this is actually wild. Most of us had never heard the word #furlough until 2020. Balancing the brand equity you’ve created over many decades can be damaged very quickly by overreaching with #markdown to create #freecashflow to just keep the business moving. Only #AI can help you balance, keeping the till ringing, with your brand image. Disposing of stock timely and profitable manner, managing pricing based on #elasticity of demand and not panic, and generating margin with the #inventory you’ve already invested in. #artificialintelligence #pricing #machinelearning #retail https://lnkd.in/etQYTqU6

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The success of multi-brand platforms will depend on their ability to innovate, differentiate and provide a level of service and experience that surpasses what individual brands can offer. #Luxurybrandmanagement #luxuryunfiltered

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More thoughts on the issues which have cuased the current problems at Gucci. The brand certainly needs to make a return to being a "cultural powerhouse" and that is done by focusing on what it offers at its core - the story and feeling, not the products. In the modern luxury world, products are adornments, shoppers engage with sensation and moments. They seek experience and lifestyle. It is what Gucci used to do so well, and now has seemingly lost touch with. You can see my thoughts on this here: https://lnkd.in/g_axygak #Luxury #Gucci #Storytelling

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I gained by devoting at least one hour each day to physical exercise, including activities such as slow jogging, brisk walking, and swimming. As an entrepreneur engaged in daily work, I have to highlight the importance of maintaining optimal physical health while honing the entrepreneurial mindset for business growth. Empirical evidence on adult subjects indicates that 41.9% of men in their forties who exercise for at least one hour three days a week or more report experiencing a sense of fulfilment in their lives. #andrewtanatomisingapore #theatomiway #actushause #atomi https://lnkd.in/eXvhmRHj

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Guess appoints Andrew Rosen as CEO of Rag & Bone. The appointment comes nearly two months after Guess Inc. and WHP Global will complete the acquisition of the New York-based brand. In February, Guess and WHP Global announced a final deal to acquire Rag & Bone, which was completed in April. Under the terms of the agreement, Guess paid more than $57 million for the purchase, in addition to contributions from WHP Global, according to a press release. OptimaRetail.eu: Experts in worldwide #Retail #maintenance and #repairs - SMART FACILITY MANAGEMENT  #RetailInnovation #FutureTrends #OptimaRetail #facilityManagement #PreventiveMaintenance #ReactiveMaintenance #NewsOptimaRetail #NewsRetail #OptimaRetail

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The art and science of integrating AI into the company is akin to the structure of "atomi," which begins with "A" and ends with "I." AI constitutes both the starting point and the ultimate objective. https://lnkd.in/giQfKnAQ We do not see AI as the ultimate solution, but rather as a tool to assist in my work. AI is a valuable tool for generating more solutions and innovative ideas in my research and execution. However, the core of ideation still resides in the mindset and creativity of the team. #andrewtanatomisingapore #theatomiway

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A tale of two semesters - It’s a challenging period for luxury and luxury ecommerce in particular. Attention please: Headline numbers don’t tell the full story. Take mytheresa.com. The Munich based company led by Michael Kliger grew its net revenues in FY 23/24 that ended in June by around 10%. However, H1 was completely different from H2. In the first six months Mytheresa grew tepidly and was hardly profitable, since there was too much stock on the market that led to discounts and compressed margins. (Reminder: FARFETCH had to be rescued.) In H2, the trend turned. Revenues increased by double-digits, adjusted Ebitda reached around 5% of sales. In an interview with TextilWirtschaft, Michael says that July and August were in line. “The momentum is continuing”, he says. If you want to know what he thinks about the power of Netflix, why he is in awe of physical retail and what it takes to get an AOV of more than 700 Euros, check out the full piece by Tim Dörpmund and me below. Thanks Michael for your time. Happy Saturday! #luxury #luxus #ecommerce #fashion #branding #mode #marketing #apparel #experience #usa #germany #retail

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Today is World Mental Health Day 10/10 I am reflecting on the entrepreneurial mindset at atomi; we must define our lives by our success in the company. While we admire the Swiss way of life and the 5Cs, our focus at atomi must center on revenue, profit, and sustainability despite the pressure to adopt more academic language. As a small-to-medium enterprise, we juggle cash flow, troubleshooting, and closing deals daily. Although these tasks may seem mundane to aspiring entrepreneurs, they are crucial and increasingly vital. While we may not close multi-million dollar deals or travel in luxury, we value being ethical, honest, and genuine. We create jobs, consistently provide valuable products, and build our brand. Moreover, we contribute to national development through taxes, including GST, representing Singapore and Japan by bringing premium Japanese-made furniture and products to life here. This is a return to simplicity—embracing the core values of entrepreneurship and citizenry. We must take care of our mental health, and to all my fellow entrepreneurs, business owners, friends, sons and fathers, we have done well! www.atomi.shop #andrewtanatomisingapore #ReflectionsOfAnENTREPRENEUR #theatomiway #atomi15 #atomi #atomiLIFESTYLE #atomiFURNITURE #atomiconsultancy #WorldMentalHealthDay

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