Luxury, Retail and FMCG News & Trends: July Week 2

Luxury, Retail and FMCG News & Trends: July Week 2

Luxury, Retail and FMCG News & Trends: July Week 2

1. Business Moves

i. On Launches its Largest Flagship Store on Champs Élysées

Swiss sportswear brand On is expanding its retail presence with the opening of its largest flagship store on the Avenue des Champs-Élysées in Paris just before the 2024 Paris Olympics. The new store occupies a 16,285-square-foot three-floor space that was previously a Nike store. This second Parisian store follows their first on the Left Bank and other sales points in major department stores and sports specialists in the city. On’s expansion reflects its ambition to compete with major brands like Adidas and Nike. Founded in 2010 and publicly traded since 2021, On operates 35 stores globally. It plans to open 20 more annually over the next few years, including 20 stores in Europe by 2026. It already has 20 in China and recently opened stores in Berlin and Hong Kong.

Read the full article about On’s Champs-Élysées store.

 

ii. Kering-Owned Pomellato Buys Valenza Setting Lab

Kering-owned jewellery brand Pomellato announced the acquisition of Valenza Setting Lab, a renowned stone setting laboratory. The move aims to enhance the jewellery house’s manufacturing capabilities in diamond and precious stone settings to drive international growth. The acquisition includes Valenza Setting Lab’s 24-member team, comprising its founders Marcello Monti and Gilberto Dentelli. It follows Pomellato’s 2022 acquisition of a minority stake in Italian goldsmith firm Costanzo & Rizzetto.

Read the full article about Pomellato’s acquisition of Valenza.

 

iii. Decathlon Sets Up Independent Subsidiary to Drive Global Expansion

Decathlon is launching a new subsidiary, Decathlon Pulse, to expand its global presence and drive long-term growth. Decathlon Pulse will operate independently within the group and focus on building, investing in, and acquiring innovative businesses and brands in the sports sector. This initiative aims to enhance Decathlon’s value proposition by creating new standalone businesses, investing in highly innovative companies, and acquiring forward-looking sports brands to complement the group’s core business and value proposition. Decathlon has invested nearly €400 million in partnerships and acquisitions since 2018, and Decathlon Pulse continues this strategy. Franck Vigo has over 20 years at Decathlon and will lead Decathlon Pulse as its new CEO alongside Barbara Martin Coppola as chair.

Read the full article about Decathlon Pulse.

 

iv. Ray-Ban Maker to Buy Supreme in US$1.5b Deal

VF Corporation (VFC) has sold the streetwear brand Supreme to Italian eyewear company EssilorLuxottica for US$1.5 billion in cash. The move comes after VF has owned the brand for four years since acquiring it for US$2.1 billion. Despite expanding Supreme’s presence in China and South Korea and achieving strong growth under VF, the strategic review revealed limited synergies between Supreme’s business model and VF’s integrated approach, prompting the sale. EssilorLuxottica is known for its portfolio of 80 exclusive eyewear brands like Oakley and Ray-Ban and licensing agreements with luxury brands such as Chanel and Ferrari. The company sees the acquisition of Supreme as an opportunity to expand into new markets and enhance its brand portfolio. The sale has been positively received by investors, boosting VF Corp.’s stock by nearly 7%, while EssilorLuxottica’s shares dropped by more than 4%.

Read the full article about EssilorLuxottica’s acquisition of Supreme.

 

2. People Moves

i. Global: Birkenstock, Canada Goose, Nike and Burberry

Birkenstock: Birkenstock appointed Evelyn Chua as managing director for Southeast Asia and Down Under, effective July 1. She will oversee operations in multiple countries, including Singapore, Malaysia, Indonesia, Philippines, Thailand, Vietnam, New Zealand and Australia. Chua, who has over 15 years of retail experience, will levergage online and offline strategies to grow the brand’s market presence. Chua previously served as chief commercial officer at Synagie Group, an e-commerce enabler in Southeast Asia. Her appointment aligns with Birkenstock’s international expansion plans, which include a $87 million investment in production capacity.

Canada Goose: Canada Goose appointed Alfredo Tan as the new chief digital and information officer, effective August 7. Tan succeeds Matt Blonder and will oversee the brand’s digital strategies, including sales channels, IT, digital media, marketing, consumer insights, and the company’s data and AI strategy. Tan previously served in a leadership capacity at Loblaw Companies Ltd, Meta Platforms, Rogers Sports & Media, and WestJet Airlines.

Nike: Nike made two promotions amidst innovation challenges and increased competition, particularly in the running category.

  • Tom Clarke was named senior advisor on strategic growth initiatives. Clarke previously served as president of advanced innovation.
  • John Hoke, a 30-year Nike veteran and former chief design officer, will take over Clarke’s role in advanced innovation.

Recently, Nike rehired Tom Peddie as vice president of marketplace partners to bolster its wholesale sector, following a shift to direct-to-consumer sales in 2021.

Burberry: Burberry has appointed Joshua Schulman as its new CEO and Executive Director, effective July 17. Schulman, an American with extensive experience in luxury fashion, will replace Jonathan Akeroyd. He previously held CEO positions at Michael Kors, Jimmy Choo and Coach and was President of Bergdorf Goodman at Neiman Marcus Group.

Read the full article about Birkenstock’s MD for SEA and Down Under.

Read the full article about Tom Clarke and John Hoke’s promotion.

Read the full article about Burberry’s chief executive from Coach.

 

ii. China: Vogue and Jahwa

Vogue: Rocco Liu, known for his digital success with GQ China, was appointed the new editorial director of Vogue China, succeeding the controversial Margaret Zhang. Liu, who has a strong background in digital innovation and content localisation, is expected to bring fresh leadership to Vogue China. During his tenure at GQ China, Liu transformed the GQ Lab into a significant digital media presence that could earn half a million yuan for a single social media post. His leadership style, characterised by compassion and strong industry relationships, contrasts with Zhang’s more solitary approach, which faced criticism and led to strained relationships within the Chinese market. Liu’s appointment aims to restore Vogue China’s reputation and profitability, which had suffered under Zhang’s leadership.

Jahwa: Chinese personal care and cosmetics company Shanghai Jahwa appointed Kevin Chen, former GM of Coty China, as the new head of its beauty division. The move aligns with Shanghai Jahwa’s ongoing efforts to restructure and enhance its beauty business. Chen brings extensive experience in online business and high-end beauty sectors from his previous roles at L’Oréal and Coty. His appointment follows a series of strategic changes at Shanghai Jahwa, which included organisational restructuring and a focus on high-growth, high-margin categories.

Read the full article about Vogue’s editorial director from GQ.

 

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