Giovanni Carestia

Crash for luxury goods https://lnkd.in/eiBs5idP Crash for luxury goods

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🔍📰 Reading this article, I couldn't help but be struck once again by this line: "The company also plans to enhance Roberto Coin’s digital presence, as well as open more monobrand boutiques, some of which it will own and operate, while others will use franchise and partnership models." 💼🛍️ It's evident that this reflects an ongoing trend in the industry for brands to take more control over their distribution networks and establish direct pipelines to enhance client relationships, gradually bypassing traditional brick-and-mortar retailers. Whether you're a high-end store or a local jeweler, it's crucial to prioritize your marketing efforts and brand positioning in the marketplace, regardless of the brands you carry. 💎💰 If you're seeking solutions to achieve this, feel free to reach out to me directly or visit Gems One at the Vegas show. In just 15 minutes, we can demonstrate how you can execute a polished marketing and merchandising solution that's ready to go and can be launched in as little as 6 weeks. 🚀📈 #RetailStrategy #DirectMarketing 🔍🛒 https://lnkd.in/eNuWaxZ7

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🚨 Ray-Ban maker EssilorLuxottica acquires streetwear label Supreme for $1.5 billion in cash 👇 Supreme's current parent, VF Corporation confirmed the news on Wednesday that the popular skate brand will be added to EssilorLuxottica's portfolio of companies, which include sunglass brands Oakley & Ray-Ban. 🛹 Supreme, founded in 1994, has built a loyal following of mostly young customers by regularly dropping limited-edition clothing & accessories, as well as through collabs with other brands. The brand is extremely "culturally relevant". 🚀 Execs at Luxottica said that the move "perfectly aligns with their innovation and development journey, offering a direct connection to new audiences, languages & creativity". Supreme sells its products exclusively direct-to-consumer, an approach that will be maintained. 💰 VF Corporation bought Supreme in 2020 for $2.1 billion, and now stated they sold the brand mainly due to limited synergies between Supreme and other brands like Vans, Timberland, The North Face, etc. The fact that the stock price had been going down consistently year over year (over -80% in the last 5 years), has been a sign on the wall that tough decisions had to be made. 📊 Changes in leadership and a restructuring plan called Project Reinvent are reasons for hope. This sell-off might be another step in the bigger plan to make VF Corp healthy again, mainly by turning around Vans - which has shown disappointing figures recently. 📈 The sale of Supreme was already applauded by Wall Street as VF's price per share rose by 13% the last 24 hours. Luxottica adds Supreme's online store as well as 17 brick-and-mortar locations across the U.S., Europe and Asia to their portfolio. ✅ A smart move. Why? 1) "Luxury" has been undergoing a transformation. The industry has been giving a new face. Streetwear is becoming a huge influence for luxury brands. Pharrell at LV, Beyoncé being the new face of Tiffany, etc. The company bought the cool Supreme DNA, its customers, and its creativity going forward. 2) Economically speaking, EssilorLuxottica is diversifying its portfolio - especially in times where inflation is starting to slow down spending in the top luxury segment, it's not stupid to acquire a brand that's more affordable. 3) Supreme is one of those brands who have nailed a new style of commerce: D2C, season-less, hype drops, ... The learnings that can be applied to the new mother company are invaluable. ⭐️ If EssilorLuxottica ensures it doesn't "spoil" the original Supreme DNA with corporate culture, this is a win-win-win deal for all parties. 🕶 EssilorLuxottica is the global leader in eyewear with brands like Ray-Ban and Oakley and licenses for brands like Giorgio Armani, Burberry, Chanel, Prada, Ralph Lauren & Versace. As of 2023, EssilorLuxottica operates approx. 10,000 stores worldwide, with reported sales of €27.4 billion & net profit of €3.1 billion. ➡️ What are your thoughts? 💬

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Volume Up, Value Down: The Rise of Lower Ticket Items in Jewelry In recent years, the jewelry industry has witnessed a significant shift in consumer preferences and purchasing patterns. The current economic climate, coupled with the rise of direct-to-consumer (D2C) brands, has led to the emergence of lower-priced jewelry items. This shift has not only posed challenges to manufacturers' capacity but has also highlighted the importance of delivering a meaningful difference to consumers. Escape the sea of sameness and thrive in an increasingly competitive market. D2C brands have leveraged technology and social media to build strong online presence and engage with their target. The increasing demand for lower-priced jewelry has placed considerable strain on manufacturers' capacity. Producing high-quality jewelry at affordable prices requires meticulous craftsmanship and efficient production processes. Every dollar counts in this scenario, as manufacturers need to strike a delicate balance between cost optimization and maintaining the desired level of quality. This challenge has pushed manufacturers to embrace innovative manufacturing techniques and optimize their supply chains to meet the growing demand. As the market becomes saturated with lower-priced jewelry options, standing out from the competition is crucial for brands. Simply offering affordable jewelry is no longer enough to capture consumer attention. Brands must focus on understanding their target customer base, their preferences, and aspirations. By creating unique designs, incorporating meaningful stories, or using sustainable materials, brands can differentiate themselves and offer a compelling value proposition to consumers. Building an emotional connection with customers becomes paramount in escaping the sea of sameness. Knowing your customer is essential in delivering a personalized and memorable experience, which ultimately leads to brand loyalty and higher price command. Failing to differentiate or deliver a meaningful difference can result in stagnation or even decline. A well crafted strategy well executed is paramount to any brand. #luxurybrands #jewelry #shimansky #luxuryretail #brandstrategy #diamondjewelrt

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In the maelstrom which can often surround the latest figures - and any drop in sales - from the luxury sector, the positive and calm insights of Luca Solca are always a welcome addition to the discussion. As he argues, many of the challenges facing the market are largely macroeconomic issues and sales growth is posied to return by the middle of next year. A good read, and good news at a time when many seek to be negative: https://lnkd.in/d8rzKc8a #Luxury #MarketChallenges #PositiveMindset

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🎸 Paul Smith's interview offers a fascinating insight into the evolution of the fashion system. This question is an excerpt from the interview: "How has the fashion system changed in recent years? And how has your brand changed?" Paul Smith shared his unique perspective: "The industry has changed tremendously compared to when I started. Initially, it was about bringing to life what I felt, hoping someone would like it. Now, many companies focus on #marketanalysis, #demographics, #TikTok, #celebrities, and #influencers. It's a completely different approach; the world is evolving with what I would call a 'careless' focus. #Fashion, especially post-Covid, has become more casual. While our tailored suits always do well, people are dressing more relaxed, which isn't good or bad but a fact. I still believe you can dress formally but with a twist, like a cashmere blazer with a denim shirt and blue jeans, creatively coordinating clothes without sacrificing quality and #craftsmanship." I agree with Paul Smith that fashion has undergone drastic changes, especially in market approaches and distribution channels. Today, pricing plays a crucial role, particularly in premium brands, unlike in the early 2000s. This reflects a significant shift in consumer expectations and behaviours towards perceived value and accessibility. Key aspects of this transformation include: - Importance of Direct Retail (Direct-to-Consumer): Direct connection with consumers through owned stores and online platforms has become crucial. 🛍️ - Need for Outlets: Outlets have become essential for clearing inventories and attracting bargain-seeking consumers. 🏬 Price Matters! - Decline of Multibrand Small Retailers: We've seen a decline in small multibrand stores struggling to compete with major players and online retail. 🛒 The fashion industry is constantly evolving, and to stay relevant, brands must adapt to these changes without compromising their essence and quality. What do you think about this transformation in fashion? Carlos Alonso #propellingbrands to #newHeightsofsuccess ABH CONSULTING, ABH #paulsmith #fashiondistribution #retail #wholesale #fashionwholesale #fashiongurus #Growth https://lnkd.in/dC47G-74

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The issue of branding and storytelling vs products is a key one in the luxury market today, but the main point is very simple - brand matters more than product in the modern market. About a year ago, I wrote about how I am no longer talking to luxury brands about products (https://lnkd.in/eGurgNKD) and the point remains today. But there is a disconnect inside the brands - many brands feel they are differentiating themselves when they are not. This is because while they are externally speaking about storytelling, their internal processes are focused on products. The focus on brand and branding must permeate every aspect of the company and its processes. As myself and others have said before, excellent products are a right to play, it is your brand which sets you apart. #branding #luxury #storytelling

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"Another one bites the dust" FURLA Furla is a brand founded in Bologna, Italy in 1927 by Aldo Furlanetto and focused on leather goods and it's been a family business since then. In 2018 it reached the peak with revenues at 513 million euro, there were rumors about listing at the stock exchange or a sale to a new ownership. Then nothing happened. In 2022 revenues recorded a low of 336 million euro following a statement of Giorgio Presca, its CEO since the end of 2022. Apparently Presca inherited a very struggling brand to manage, with average product, flat communication and very little desirability. And little investments to put on the table. In an early 2024 interview published by Milano Finanza Presca highlighted that "We have renewed the collection with an innovation rate of over 70% and introducing accessories. Working on a segmentation of the offer depending on the type of market and consumer." They also introduced new categories such as the silk accessories but all this efforts probably come too late. The revamp never starts from the product. It never should. And early August came the news of formal debt restructuring, what can be defined as negotiated debt composition in order to stabilize its capital structure and revive the business... Many brands are running short of fuel after years of China intoxication and very superficial management that focused on short term growth. As I have highlighted since a long time, growth must be driven carefully in order to have a solid business, value creation and a strong brand equity which is the most strategic asset of a company. A fast turnover of managers (at least 5 CEO in the past 7 years) is never a good leverage to guarantee the execution of a business plan, and even less it is the constant change of creative direction or style of the collections. Family founders have a huge responsibility in: - carefully picking up the right managers that must be focused on the company sustainable business growth instead of their own glory - setting up a precise brand strategy well before the business plan - defining a manageable business strategy - strictly supervising its execution through a serious and professional board of directors - constantly investing in brand maintenance I will start teaching Family Luxury Business this year in an amazing university and I am doing lots of research in this sense. Family business is the asset on which the Italian economy relies the most and #fashion is a strategic industry. This winter will be very difficult for many brands. In my last newsletter (link in comments if you want to read it) I call it "the winter of their discontent". Brands are reaping the fruits of the work done in the past 10-15 years. This coming crisis is not an overnight disaster. Unfortunately it's been nurtured since a long time, growing under the laurels of a past, fleeting glory.

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The Art Deco collar in White Patent never disappoints. SAVE 30% use promo code: FANCY. www.hartmanandrose.com. Exceptions Apply #luxury #luxurypets #luxurydogcollars #luxurydog #dog #dogcollar #dogleash #dogsofinstagram #dog #dogs #dogslife #designerdogcollars #fancydogcollars

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Luxury is often mistaken for ostentatiousness. In my experience, the opposite couldn’t be any more accurate. In the luxury environment, displays of wealth are easy. Displays of elegance, on the other hand, take more skill and care to achieve. Elegance is the difference between royalty and celebrity. It is hard to teach, even harder to buy, and yet priceless once achieved. The Arslanian Group may be quiet, but our reputation in these matters precedes us. We source the most exquisite, exclusive, large rough diamonds in the world. But perhaps more importantly, we carefully craft our pieces through a lens of culture and artistic expression. Our pieces seamlessly complement those with refined, discerning tastes. Each is designed to be understated, of unmistakable high quality, and, above all, elegant.

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Check out our latest Xupes Journal article, where I spotlight the beautiful Hermès Sabot Picnic Basket Bag.

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Does the luxury sector pay proper attention to its top 1% of customers? Known by titles ranging from Very Important Clients (VICs) to High-Net-Worth Individuals (HNWIs), or Elite Clients, these consumers collectively possess a net worth of $57 trillion – greater than the combined GDPs of the US and China. Accounting for up to 40% of a luxury business’s revenue, they provide a stabilising force for the sector against economic uncertainties, and they are trendsetters and brand ambassadors. In return, they demand ultra-personalised service that acknowledges their individuality while providing global recognition. Their desire for immediate gratification means they expect exclusive products and services without delay. Getting this right is what I call The Art of Clienteling, and in this week's blog, I look at why this is so important. You can read it here: https://lnkd.in/eQcnSG4N #LuxuryConsumers #VIPs #Experience

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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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Luxury companies embrace sport to harness cultural capital If you’ve been watching the Olympics, you may have noticed that the winners receive their medals on Louis Vuitton trays. LVMH-owned CHAUMET also produced the medals, each with a small piece of metal from the Eiffel Tower. Many other LVMH-owned brands have a presence in Paris through a sponsorship deal worth an estimated € 150 million. But LVMH is not alone. Prada Group is a sponsor of China’s women’s football team. Zegna’s Thom Browne has dressed FC Barcelona; Loro Piana is the official outfitter of Juventus Football Club and Chivas Brothers has sponsored Manchester United. Tiffany & Co. has sponsored the NBA. Aston Martin F1 Team re-entered the world of Formula 1 in 2021/22 after decades’ long absence. So why is luxury embracing sport even more than before? Live viewing sets sport apart One of the biggest differences between sport and nearly every other form of entertainment – that is often streamed - is that you must watch it live to be engaged in the cultural conversation. This means that it drives a huge volume of live viewers, that is very valuable for brands. Appeal to a broader audience Embracing a wide range of sports is also a way for luxury brands to appeal to a broader, more aspirational audience. For whilst historically luxury brands were involved in moneyed sports such as sailing (Prada); polo (Ralph Lauren); and tennis (ROLEX, TISSOT), today many have embraced sports such as football and F1. Netflix documentaries have boosted sports’ appeal Netflix documentaries about particular sportsmen (eg. David Beckham) and sports (eg. Such as F1 through Drive to Survive) have increased the interest and engagement in many sports, and in some cases drawn in the female viewer. Sports stars most followed on social media Sports stars have become the new Hollywood. Cristiano Ronaldo is the most followed celebrity on social media, with greater numbers (917 million) than any Hollywood celebrity, such as Selena Gomez (688 million followers). So, sport has become one of the key ways in which luxury brands are harnessing cultural capital and I only see this trend continuing. I’d love to know what you think. Smith Square Partners #sport #fashion #luxury #culturalcapital https://lnkd.in/escmVXFB .

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What is the future of department stores? There is no doubt that these multi-brand, retail experience spaces have a key role to play in the future of the industry. But how they operate and succeed is changing - and it is an evolution which travel retail and airports can learn from. Bloomingdale's CEO Olivier Bron has implemented a strategy which includes updating stores and tailoring them to their local market, while ugrading shop-in-shops, hosting events, launching collaborations and creating opportunities for smaller brands. It seems to me that all of these are lessons which travel retail can and should learn from in a big way. We do not have the requirement of department stores to draw in footfall - airlines bring in our customers - but if we do not offer an engaging experience then why would travellers become shoppers? The bar is being raised. Read the full story: https://lnkd.in/dKJQX39F #Bloomingdales #NicheBrands #ShopperExperience #Multibrand

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Kering's revenue grew from approximately €1.5B in 1989 to around €30B in 2020, representing a total growth of about 1,900% over the 31-year period, or a compound annual growth rate (CAGR) of roughly 10.3%. The company experienced steady growth in the 1990s, with revenue increasing from €1.5B to €5B by 1999, indicating a CAGR of 12.8%. The early 2000s saw a significant jump in revenue, reaching €17B by 2004, driven by acquisitions such as Gucci, Printemps, and Finaref, resulting in a CAGR of 27.7% between 1999 and 2004. From 2004 to 2012, growth was more moderate, with revenue increasing from €17B to €20B, suggesting a CAGR of 2.1%. The period between 2012 and 2018 showed a more pronounced growth, with revenue rising from €20B to €30B, representing a CAGR of 7%. The final two years, 2019 and 2020, saw revenue stabilise around €30B. In summary, Kering, and other Fashion Houses, may be able to strengthen their position as leaders in the luxury goods industry and drive long-term growth across their portfolio, through introducing innovative and collaborative solutions within its ecosystem.

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Lamborghini x Balenciaga: A questionable partnership in challenging times for luxury Collaborations in the luxury world used to be a careful dance, crafted to highlight shared values and create something extraordinary. Today, many of these partnerships feel like rushed pairings, aiming for shock value rather than meaningful connections. The recent tie-up between Lamborghini and Balenciaga falls squarely into this camp – more of a head-scratcher than a masterstroke. At a time when the luxury industry is grappling with a crisis of identity and relevance, the consensus is clear: brands need to return to their roots, their DNA, and the values that made them icons in the first place. This is what future consumers are asking for – authenticity, coherence, and a sense of purpose. So why would Lamborghini, the epitome of timeless luxury, align itself with Balenciaga, a brand synonymous with controversy and shock tactics? Balenciaga has made a name for itself through provocation, whether it’s selling bags that resemble rubbish sacks or campaigns that push the boundaries of good taste. Its strategy thrives on disruption, challenging norms, and staying at the centre of attention – for better or worse. Lamborghini, on the other hand, stands for heritage, artisanal excellence, and innovative design. These are two brands that could not be more different in their approach or their values. For Lamborghini, this partnership feels like a gamble. Perhaps the goal is to attract a younger audience or to appear more relevant on social media. But at what cost? The risk is clear: alienating loyal customers, diluting brand equity, and weakening the prestige that has been built over decades. For Balenciaga, however, this collaboration is a win – gaining association with a symbol of authentic luxury adds credibility to its image and expands its reach. In a time when luxury brands are called to be more introspective and connected to their roots, this collaboration seems to run counter to what the industry needs. A more logical partnership? Bottega Veneta, a fellow Kering brand, embodies the same artisanal craftsmanship, timeless design, and understated luxury that Lamborghini champions. Together, they could have created something that felt cohesive, meaningful, and true to their shared values. The lesson here is simple: in an era where consumers value authenticity over spectacle, shock-and-awe marketing may not just fall flat – it could damage the very brand you’re trying to elevate. #LuxuryBrands #Lamborghini #Balenciaga #LuxuryIdentity #BrandCoherence #Authenticity

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A Poetic Perspective. 💙 Now that fashion weeks, trade fairs, and showrooms are about to come to an end, it’s a good time to pose a reflection or a question to the air. Fashion is, and has always been, a powerful reflection of the times we live in. All of us (even those who claim to have no interest or think it’s the most frivolous thing in the world) communicate and build our identity around our aesthetic, always tied to symbols, values, and beliefs, which we express through jewelry, accessories, garments, colors… The first impression someone gives is visual, and if one knows how to read the subtle language of the objects surrounding them, they can learn more about that person than they sometimes know about themselves. The last 40 years of history, with the rise of neoliberal capitalism, have led us to the glorification of money, power, and the belief that anything that doesn’t produce money is worthless. When beliefs become dogmas, there comes a point where the structures that seem to hold everything together begin to crack. Think of a building from which new plants start to grow through those cracks. This is a metaphor to describe the feeling I had when seeing Paolo Carzana’s collections—poetry in an era of grand special effects. It’s fascinating how the most exciting things remain those created from within, with little or almost no budget. I encourage you all to take a look at the collection. #fashion

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