Luxury, Retail and FMCG News & Trends: July Week 1

Luxury, Retail and FMCG News & Trends: July Week 1

Luxury, Retail and FMCG News & Trends: July Week 1

1. Business Moves

i. Singapore’s Aupen Collaborates with LVMH, to Shift Production to France

Singapore-based fashion brand Aupen, popular among celebrities like Taylor Swift and Olivia Rodrigo, partnered with LVMH Metiers d’Art. This partnership will provide Aupen with access to LVMH’s French production facilities, including renowned tanneries and metalwork companies. The partnership is part of Aupen’s plans to shift its entire production base to France. Despite the collaboration, LVMH will not hold any equity in Aupen, allowing the brand to remain independent. The first designs from this partnership are expected to be released in January 2025.

Read the full article about LVMH and Aupen’s partnership.

 

ii. Christian Louboutin Invests in French Hospitality

Christian Louboutin, Jean Moueix and Brookfield Asset Management are joining forces to support the Experimental Group’s expansion of hotels, restaurants, and bars in Europe. The investment makes Christian Louboutin the French hospitality group’s latest minority shareholder. Given Christian Louboutin’s creativity, intuition, multidisciplinary artistic collaborations and international reputation, his involvement is seen as a valuable asset to Experimental Group’s development. The Group plans to open new venues in Val d’Isère, Rome, and Paris by 2025, adding to its existing portfolio of over 20 locations, including hotels in major cities like London and Venice.

Read the full article about Louboutin’s investment in Experimental Group.

 

iii. Saks Owner to Buy Neiman in $2.65b Deal with Amazon Help

Hudson’s Bay Co., owner of Saks Fifth Avenue, is nearing a $2.65 billion acquisition of Neiman Marcus Group, which would combine America’s two largest high-end department store chains. Amazon and Salesforce will assist by taking minority stakes in the new entity, Saks Global. The merger aims to cut costs and increase profitability through vendor bargaining power and shared cost reductions. The combined operations will include 39 Saks stores, 36 Neiman Marcus locations, and two Bergdorf Goodman stores. Marc Metrick, CEO of Saks Fifth Avenue’s online operations, will lead the merged companies. This deal follows Neiman’s 2020 bankruptcy, which made it an attractive target. Amazon’s involvement is notable as it seeks a greater role in the luxury market. The deal may face antitrust scrutiny from regulators due to recent aggressive merger challenges.

Amazon’s focus on luxury is deemed to have more potential. This is in comparison with its attempt to compete with Chinese e-commerce giants by selling ultra-cheap goods, which risks undermining its core convenience proposition, compromise its Prime offering and raise supplier scrutiny issues. In contrast, the Saks deal leverages Amazon’s technology and logistics expertise, potentially lending credibility to Amazon’s chichi efforts. The US luxury market’s recent downturn, which affects online sales, may also provide Amazon with an opportunity to attract smaller fashion houses seeking stability.

Read the full article about the Saks-Neiman deal.

Read the full analysis of Amazon’s efforts in the luxury and discount market.

 

iv. Jay-Z Invests in Hong Kong-Based Luxury Watch Trading Platform

Hip-hop artist Jay-Z invested in the Hong Kong-based luxury watch trading platform Wristcheck. He joins other celebrities like Cristiano Ronaldo and Kevin Hart who have backed similar platforms, such as Chrono24 and Bezel. Jay-Z’s involvement comes as the pre-owned watch market struggles with a decline in values since April 2022. Founded in 2020 by Austen Chu, Wristcheck targets high-end watch buyers and sellers in Asia and offers authentication services. The company has raised $13.6 million, with other investors including Alibaba Entrepreneurs Fund, Gobi Partners GBA and K3 Ventures.

Read the full article about Jay-Z’s investment in Wristcheck.

 

v. Max Mara Inks Long-Term Fragrance Deal with Shiseido

Italian luxury fashion house Max Mara entered into a long-term partnership with Japanese cosmetics group Shiseido for fragrance development. Shiseido will have the exclusive global license to create, produce, market, and distribute Max Mara-branded fragrances, and the license will be managed by Shiseido EMEA. This collaboration aims to expand Shiseido’s global fragrance business.

Read the full article about Max Mara’s fragrance deal with Shiseido.

 

vi. Evisu Founder Makes a Comeback with a New Denim Brand

Hidehiko Yamane, founder of Evisu, returns from retirement to launch a new self-named denim brand. Yamane initially made waves in the fashion industry with Evisu through high-quality selvedge denim. After selling Evisu, valued at $500 million, he now starts fresh with five stores in Japan and a London pop-up. His new brand avoids environmentally harmful practices like selling washed jeans and focuses on longevity.

Read the full interview about Hidehiko Yamane.

 

2. People Moves: Vivienne Westwood, Mytheresa, Mulberry, Authentic and Sephora

Vivienne Westwood: Jeff Banks has been removed from the board of Vivienne Westwood in a power struggle involving Andreas Kronthaler, the creative director, and CEO Carlo D’Amario. Banks, known for his commercial approach and long-standing friendship with Westwood, was appointed shortly before her death in late 2022. The company is currently experiencing internal conflicts and uncertainty about its future direction. Banks, who was brought in to protect Westwood’s creative legacy, has been ousted due to disagreements over the brand’s direction. There has been no official comment from Banks or the company.

Mytheresa: Mytheresa appointed Dede Chan Brignoli as the president of its Greater China region, starting this month. Brignoli will oversee the German luxury e-commerce firm’s strategy, e-commerce platform, and social media in Greater China. She brings extensive experience from her previous role at LVMH as head of e-commerce for Greater China. She has also worked with luxury brands Kenzo, Rimowa, and L’Oreal in Hong Kong.

Mulberry: Andrea Baldo as appointed CEO of Mulberry, replacing Thierry Andretta who is leaving immediately. Baldo has over two decades of experience in fashion, previously led the growth of Ganni and held senior positions at Coccinelle, Marni, Diesel, and Maison Margiela. He will start at Mulberry on September 1, and will focus on enhancing the brand’s sustainability and leading it into a new chapter. The recent slowdown in luxury demand and the removal of tax-free shopping have affected Mulberry’s sales, prompting the leadership change.

Authentic: Authentic Brands Group appointed Jeff Daggett as senior vice president – head of Japan to enhance its market presence and growth in Japan. Daggett has over 30 years of industry experience from brands like Gap, Levi’s, Nike, and Vodafone. He will be based in Tokyo.

Sephora: Sherry Deng, former vice president of Canada Goose, joined Sephora as vice president of e-commerce and social commerce. Deng has extensive experience in e-commerce strategy and operations, having successfully managed the China operations for Canada Goose and held senior management positions at Under Armour and Estée Lauder. Her appointment is speculated to be related to the departure of Sephora’s former vice president, Shen Tianhong, due to the overlap in their roles.

Read the full article about Bank’s departure from Vivienne Westwood.

Read the full article about Mytheresa’s head of Greater China from LVMH.

Read the full article about Mulberry’s CEO from Ganni.

Read the full article about Authentic’s senior vice president in Japan.

Read the full Chinese article about Sephora’s VP from Canada Goose.

 

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  • Aupen
  • Wikipedia
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