Krizia Phillips

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?

26

1 Comment

Opportunity in Sales

2

It's 2020 and VF Corp (Vans, Timberland, The North Face) decides to continue to expand it's brand portfolio and beats out Carlyle, Disney, and H&M in a bid for the hottest streetwear brand of the last decade in Supreme and has a winning bid of $2.1B on ~$500m of revenue and ~10% net margins. VF Corp had a market cap of ~$50B. It's 2023 and VF decides it's consolidating it's brand portfolio and selling off Supreme, which has grown nominally since acquisition but ultimately under expectations. It finds a buyer in EssilorLuxottica for $1.5B. VF today has a market cap of ~$6.5B. To be honest, given the multiple compression in the market, credit to the Supreme brand that there wasn't a bigger loss on the exit.

69

12 Comments

When I talk to senior leaders in the fashion industry, there’s one emotion that dominates our conversations. Frustration. Leaders feel trapped when they experience: 😖 Lack of accountability and finger-pointing 😖 Inability to make decisions due to lack of empowerment 😖 Lack of leadership development & training 😖 Limited space for creativity and subjective feedback 😖 Misalignment between the team and business visions 😖 Lack of work-life balance and constant pressure of deadlines The bad news: we can’t control other people and their actions. The good news: we can control ourselves and our own perceptions of our circumstances. Much like putting different colored glasses on and changing the color of the world around us, we can put on different perception filters. The way we react to the actions of others will change depending on how we perceive them. 🆘 If we feel like our boundaries and values are being violated we’ll get into a fight mode. 🆘 If we feel that no matter how hard we try, our efforts are not being appreciated, we’ll get into victim mode and slide into self-doubt and demotivation. ✅ If we’d be able to rationalize the actions of others, we’d be willing to let go of anger and compromise. ✅ If we’d act from service to each other, we’d make sure we help each other achieve our goals. ✅ If we take each conflict, setback, and inefficiency as an opportunity to learn and improve, we encourage growth. ✅ BONUS POINTS: If we put ourselves in someone else’s shoes and step into compassion, we stop judging and getting angry. Instead, we might find joy in the process. It all starts with us. Whatever perception filter we choose, that’s how our reality will look. And if we each make sure we choose the filter that serves us, we all win. Which filter are you going to use today? What if you set a conscious intention to feel true compassion today? To your leaders, to your team, and to your peers? What would your work day look like?

34

4 Comments

The new venture, called Authentic Luxury Group, will initially focus on Authentic Brands Group owned luxury and accessible luxury names including: Barneys New York, Judith Leiber Couture, Hervé Léger and Vince. Essentially, the new luxury group plans to serve as an incubator for brand growth through strategic licensing agreements and distribution channels across #fashion, #retail, #digital, #hospitality, #realestate, #art and #travel, according to the joint venture; all related to luxury lifestyle and activities. Perhaps, we are witnessing the emergence of a new luxury powerhouse from the United States, poised to join the ranks of the prestigious luxury conglomerates that dominate the fashion and lifestyle markets from France and Italy. While these European giants have long set the standard, this could signal a shift in the global landscape. Time will reveal if this American contender lead by Authentic Brands Group Jamie Salter & Saks Richard Baker can truly redefine the luxury industry on a global scale (in my personal opinion highly feasible).

20

6 Comments

Why Some Fashion Brands Never Reach $500M. While Others Soar Past $1B? In the fashion industry, crossing the $500M and $1B sales thresholds represents two critical turning points. But not every brand makes it to these milestones (I witnessed how some brands struggle to even maintain sales levels), and the challenges differ for each group: 📈CHALLENGES FOR FASHION BRANDS BELOW $500M: 1️⃣LACK OF BRAND LOYALTY: Without a loyal customer base, companies struggle to maintain consistent sales. Consumers are bombarded with options and need more than a trendy product—they seek an emotional connection. 2️⃣OPERATIONAL INEFFICIENCIES: Scaling from a niche player to a mid-sized brand requires fine-tuned operations—especially when it comes to supply chain management, production quality, and distribution. 3️⃣UNDERINVESTMENT IN TECHNOLOGY: The digital revolution is transforming fashion, from e-commerce to data analytics. Many smaller brands lack the capital to invest in the right tech to fuel sustainable growth. 4️⃣MARKETING LIMITATIONS: Getting noticed in the fashion world is expensive. Brands under $500M often lack the budget for effective digital campaigns, influencer partnerships, and far more important efficient global reach (one of the most common problems). 📉WHAT DRIVES SUCCESS PAST $1B: 1️⃣GLOBAL MARKET EXPANSION: Brands that cross $1B leverage international markets, tailoring their approach to local cultures and preferences. 2️⃣STRATEGIC PARTNERSHIPS: Collaborating with other brands, tech firms, or even influencers at this level can drive brand visibility and customer acquisition, opening up new revenue streams. 3️⃣INNOVATION AS A CORE VALUE: From sustainability initiatives to embracing AI and virtual fashion, billion-dollar brands prioritize innovation. They lead trends, rather than follow them. 4️⃣OMNICHANNEL MASTERY: Companies that dominate both online and offline channels create seamless customer experiences, leading to higher conversions and customer retention. For those stuck under $500M, the pathway to higher revenue lies in building a scalable global, tech-savvy business model that speaks to today’s consumer demands. For those surpassing $1B, the challenge is staying agile and relevant in a fast-changing industry. #fashion #smartbusiness #growth #innovation #globalvision #management

11

The Future of Next-Gen Materials: Learning from the Past, Innovating for Tomorrow Memo: To All Stakeholders in Sustainable Fashion Rachel Cernansky and Bella Webb both highlight the momentum and challenges for next-gen materials. The rise of sustainable alternatives like mushroom leather and lab-grown fibers is promising, but scaling remains the real challenge. What Can We Learn from the Past? Traditional materials like PVC-coated canvas and black nylon succeeded thanks to their durability, practicality, and affordability. PVC-type materials also offered higher margins—priced comparably to leather by linear meter—making them cost-effective for brands. In contrast, next-gen materials are engineered to emulate traits like durability, drape, and performance. Unlike the past, the push for these materials is driven by sustainability, navigating new pressures like regulations and eco-conscious consumers. Why Scaling Next-Gen Materials Is Harder 1. Supply Chain Gaps: Next-gen processes need infrastructure, still in development. 2. Cost Barriers: Without economies of scale, these materials are pricier. 3. Consumer Acceptance: Next-gen products must meet traditional standards while offering sustainability. Can There Be a “Big Bang” for Next-Gen Materials? • Technological Breakthroughs could lower costs. • Brand Leadership could set a new standard. • Regulatory Shifts might force a shift toward eco-friendly materials. Call to Action: What’s Next? • Brands: Commit to long-term material partnerships. • Investors: Support scaling infrastructure with patient capital. • Consumers: Demand sustainability as the norm. • Governments: Create policies that incentivize eco-materials and penalize unsustainable practices. Now is the time to act—let’s push forward toward a sustainable future. #Sustainability #NextGenMaterials #CircularEconomy #FashionInnovation #GLG #VogueBusiness #BOF #WWD @RachelCernansky @BellaWebb @EmmaWThorne @AaronToumazou

1

Loving this article and story Maghan McDowell Vogue Business 1. A 26-year-old Roblox player and developer spent $2 million Robux on a unique Adidas necklace, the most expensive limited-edition item ever sold on Roblox. 2. The necklace features an exclusive version of a customised, sold-out Adidas F50 boot and a customised Campus 00, both hand-customized at Adidas's headquarters. 3. The sale reflects a new revenue model for brands like Adidas, focusing on earning money from the gaming ecosystem. 4. Other fashion brands like Nike, Balenciaga, and Hugo are also embracing gaming and virtual products as part of their brand innovation strategies. WHY IS THIS SO EXCITING 💫 Last year, 62 per cent of adults and 72 per cent of children in the US played video games, with revenue expected to reach as high as $665 billion by 2030 🤩 This is a fantastic opportunity for brands to use virtual goods as a way to test consumer appetite for a product. 🎮 Gaming is the new social hangout, the new e-commerce for brands 👗 UGC is paving the way for creators to earn revenue https://lnkd.in/equ_izUm #gaming #digitaltophysical #newsocialhangout

22

How to Manage a Luxury Brand These are my considerations for re-envisioning the luxury model in fashion retail. The way forward is through iconoclastic pursuits.

1

More on the big news of the day. Season? Big news of the year.

94

6 Comments

"Recovery was certainly in the air at the September Interfiliere fair in Paris, a sentiment that gained even more momentum at the Shanghai fair. We’re witnessing not just a gradual recovery in the lingerie market, but the emergence of a truly new lingerie landscape. Innovation at every level is essential to building the sustainable 24-hour wardrobe, where lingerie becomes a seamless blend of artisanal decoration and advanced technology. This interview captures my optimism and my formula for transformation: a mix of change, energy, and pure pleasure."

53

2 Comments

Interesting BOF article on Rimowa, interesting watching and observing their trajectory. "Functional Luxury’: How Rimowa Keeps Growing in a Downturn After quadrupling sales in five years following LVMH’s acquisition, the German luggage maker is seeing continued momentum during rocky times for high-end shopping, including in China. CEO Hugues Bonnet-Masimbert says the brand is focusing on functionality and innovation, including its first push into the handbag category." @simonesterncarbone #simonesterncarbone #BOF "Is @LVMH Playing the Long Game in Functional Luxury? @BoF article on @Rimowa's success got me thinking about LVMH's possible strategy in the functional luxury space. Could the investment in Rimowa and the stake in @Moncler be part of a larger play? Rimowa has been killing it lately: • Sales quadrupled in 5 years 📈 • Double-digit growth even as luxury slows 💼 • Expanding beyond travel into handbags 👜Meanwhile, Moncler continues to dominate in performance outerwear. My speculation: @LVMH might be positioning itself to own functional luxury in both 'vessels' (Rimowa) and 'action' (Moncler). It's not just about looking good anymore. Today's luxury consumer wants products that perform. Rimowa's focus on durability and innovation, and Moncler's technical expertise in outerwear, both tap into this trend.Of course, this is just my theory. But the strength of these brands is undeniable. Rimowa's CEO Hugues Bonnet-Masimbert emphasizes their 'functional luxury' appeal, and it's clearly resonating in the market. What do you think? Is functional luxury the next big thing in high-end retail? #FunctionalLuxury #LuxuryStrategy #LVMH #Rimowa #Moncler"

1

Barneys Plots a Bigger Comeback Thanks to Neiman-Saks Deal. Talks include Barneys-branded home goods, outerwear lines. Contingent on negotiations, close of Saks-Neiman deal https://lnkd.in/euFeFyzJ #tradeguard #receivableputoptions #arputs #receivableputs #tradereceivables #accountsreceivables

2

Consumer insight and data is crucial for all of us as it helps us understand which brands mean the most (or least) to the consumer and how your brand stacks up with the competition. Anyone who is curious about which athletic, outdoor, casual and dress footwear brands are resonating with the consumer, read on...

12

The topic of innovation is top of mind in the performance running shoe market – especially if you ask Nike, which has been widely criticized for having a lackluster product pipeline by analysts and the Street in recent months. But for Deckers chief executive officer Dave Powers, this isn’t an issue for its star running brand Hoka. Indeed, on the product front, Hoka is driving growth and consumer acquisition through innovative updates and new introductions across a diverse assortment of footwear. Footwear News Deckers Brands HOKA Nike Dave Powers #running #hoka #runningshoe #earnings #sneakers #nike #marathon

6

Streetwear isn't out as VF Corporation said of its sale of Supreme They failed to bring the magic to social And for the exec bros suddenly talking about the creator economy - MrBeast isn’t the panacea of it The real opportunity lies in understanding & harnessing the power of everyday consumers turned creators who authentically connect, driving engagement & sales in ways traditional marketing can't It’s Renee, a stay-at-home mom raising toddlers She had ZERO followers 2 weeks ago (you can't make it up) Her 1st TT went viral 5 days ago lol It generated $208k GMV Not fake EMV (smh) earning $40k for a 10 second video seems life changing Maybe more moms will try their luck Considering our wom drives sales She also shares mom/toddler/WFH/ lifestyle items on her Amazon storefront Make no mistake, we've entered the C2M (creator-to-manufacturer) era The reason Jennifer Lopez, Rihanna, Beyonce, Charli D'Amelio, Arielle Charnas failed w/their lines... They didn’t have operators who organized around this or the right data/agile supply chain /community I was the 1st to report LY that ALL top 10 shopping apps & ecomm sites were direct from manufacturer To survive we must urgently convert cultural relevance into commerce And it's not happening on Instagram… In fact, Facebook & Insta held less than 1% market share of social shopping btwn Sept-March TikTok Shop dominated at 68% What do all the kpis influencer marketers covet so much mean when social commerce comes from the advocacy of real people You have ZERO idea Renee even exists Talent-led brands must have a digital strategy... reach is not enough no matter how much your people lie to you You must have a set of components that, when properly constructed, equip the entire value chain w/ an important class of end products: content, 1st party data, products, & community all plugged directly into agile high-end suppliers Those still stuck in the old seasonal, broadcast mentality of make > ship > promote > pray for sales will be outmaneuvered by agile operators co-creating offerings in lockstep w/REAL TIME cultural momentum + high quality speedy makers Giants like Nike - see historic $28B wipeout LW A front thong? wtaf just another day of c-suits making decisions for women Pls don't screw up Caitlin Clark's shoe line Traditional forecasting just won’t cut it—real-time data & adaptability are essential for capitalizing on trends + avoiding crushing inventory mistakes RIP mass fashion - it's been nice knowing u Single TikToks that took hours to make will now take minutes & then it will be instant to create hundreds While we blame the "fact" no one is wearing streetwear When 2B citizens are digital natives, fashion buying declines at age 35, & everyone born from this point forward is one too It's past time for the fashion industry to organize around them #thegreatfashionreset #creatortomanufacturer #communitycommerce #contentistheproduct #tiktokisthestore

61

28 Comments