Luxury, Retail, FMCG and Media News & Trends: Dec Week 3
Luxury, Retail, FMCG and Media News & Trends: Dec Week 3
1. Trends
Luxury Brands Explore Crypto Payments to Diversify Client Bases
The rising value of Bitcoin and other cryptocurrencies has drawn attention from luxury brands looking to tap into new wealth pockets and enhance their appeal to younger, tech-savvy consumers. Early adopters include Gucci, Balenciaga, and Tag Heuer. Meanwhile, Printemps also partnered with the world’s largest crypto exchange, Binance, and French fintech firm Lyzi to accept crypto payments, making it the first European department store to do so.
Takeaway: This growing momentum reflects a broader strategy by brands to position themselves as forward-thinking to diversify their client bases and capture crypto investors who increasingly view luxury goods as status symbols or portfolio diversification. However, risks remain due to crypto’s volatility and its limited appeal as a mainstream payment method. At present, the payment mode is mostly symbolic, as retailers typically convert the funds back into euros or US dollars to mitigate the risks associated with price volatility.
2. Business Moves
i. Vera Wang Sells Namesake Brand to WHP
Vera Wang has sold her eponymous brand to WHP Global after 35 years but will retain her role as founder and chief creative officer while becoming a shareholder in WHP.
Takeaway: The move is aimed at enabling Wang’s brand to leverage WHP’s expansive global reach and resources, which include a portfolio generating over $7 billion in sales annually. WHP plans to scale Vera Wang’s presence, particularly in key markets like China, the Middle East, and Latin America, and expand into lifestyle categories such as hotels and experiential ventures.
ii. Capri Reportedly Explores Sale of Jimmy Choo, Versace
Capri Holdings is reportedly preparing to sell Versace and Jimmy Choo. The company is collaborating with Barclays to explore potential buyers. As a globally iconic brand, Versace may attract interest from luxury conglomerates or regional players, particularly from Asia or the Middle East, such as Dubai-based Chalhoub Group. Meanwhile, Jimmy Choo is likely to appeal to Richemont or shoe-focused groups like Tod’s. The process is still in early stages, but a sale could conclude in 2025, aided by the relatively small scale of the brands avoiding regulatory delays.
Takeaway: Analysts expect separate buyers for the two brands, given their differing dynamics. The sale is part of Capri’s efforts to streamline its portfolio and focus on reinvesting in its flagship brand, Michael Kors, which contributes the majority of its revenue ($738 million in Q2 2025 compared to $201 million from Versace and $140 million from Jimmy Choo). The move aligns with investor expectations after Capri’s merger with Tapestry was blocked. The sale reflects a broader trend of consolidation and strategic realignment in the luxury sector.
iii. Puig to Fully Acquire Charlotte Tilbury by 2031 in Extended Partnership
Puig extended its partnership with Charlotte Tilbury, with plans to fully acquire the brand by 2031. Puig initially took a majority stake in 2020, and the brand has since seen its revenue more than triple. Founder Charlotte Tilbury will gradually reduce her stake by 2030, with Puig assuming complete ownership by 2031. Charlotte Tilbury brand remains a key driver of growth for PUIG, especially in the EMEA and US markets.
iv. L’Oréal Buys Migros’ Korean Skincare Brand
L’Oréal acquired Gowoonsesang Cosmetics, a South Korean skincare brand owned by Migros’ Mibelle Group. Mibelle, which acquired Gowoonsesang in 2018, is seeking a buyer following a strategic review initiated earlier this year. L’Oréal plans to leverage its extensive experience in the Asian market to expand Gowoonsesang. While Gowoonsesang’s acquisition is in process, Migros is also in active negotiations to sell the remaining Mibelle Group, which is focused on Europe and North America. The transaction is expected to conclude in the first quarter of 2025, with strong interest from potential buyers.
Takeaway: Gowoonsesang, known for its Dr.G brand, is a leader in South Korea’s dermocosmetics market. The move positions L’Oréal to enhance its presence in the global K-beauty sector.
3. People Moves
De Beer: Jewellery brand De Beers appointed Henry Jun Liu as its Chief Marketing Officer.
- Responsibilities: Liu will focus on developing and executing the brand’s global marketing strategy, driving growth initiatives, and solidifying De Beers’ leadership position in the luxury jewellery industry.
- Experience: Liu comes from Tiffany, where he served as the Senior Global Marketing Director and successfully led several iconic experiential campaigns, exhibitions, and concept store projects.
Burberry: Burberry appointed Moncler’s APAC president, Stella King, to its board as an independent non-executive director, effective April 1.
- Experience: King has extensive experience in the luxury market, particularly in Asia and China, where Burberry is focused for growth. She previously held senior roles at Moncler and Sergio Rossi.
This appointment aligns with Burberry’s strategy to strengthen its position in Asia. Additionally, board members Fabiola Arredondo and Antoine de Saint-Affrique will retire in July after several years of service.
Hugo Boss: Frasers Group CEO Michael Murray was nominated to join the Supervisory Board of Hugo Boss, where he will leverage his retail and transformation expertise to support the brand’s future success. This follows Hugo Boss’s announcement that Stephan Sturm will replace Hermann Waldemer as chairman after the next Annual Shareholders’ Meeting. Concurrently, Andreas Kurali, former deputy CFO at Philip Morris, has also been nominated to the board. These appointments signal a shift in leadership, with Waldemer expressing confidence in Sturm’s experience and strategic vision for Hugo Boss.
Xiaohongshu: Xiaohongshu (Little Red Book) added Fay Lidan Dai as Chief Strategy Officer.
- Responsibilities: Dai will oversee the company’s strategic operations. She will report directly to Xiaohongshu’s CFO, Zhang Ziqi, who took over the non-business functions after the departure of the former CFO, Yang Ruo. Before Dai’s appointment, various strategic directions at Xiaohongshu were led by different individuals, but now all will report to her.
- Experience: Dai was formerly a partner of Capital Today.
Xiaohongshu is also planning to establish a strategic investment team under Dai’s leadership that will focus on investing in hard tech sectors, particularly AI applications.
4. Marketing and Advertising
i. Xiaohongshu’s E-Commerce Offerings Gain Traction
Major brands, such as LVMH, Max Mara, and Coach, are increasingly investing in Xiaohongshu as a sales and branding tool. Xiaohongshu, known as “Little Red Book,” is a lifestyle-focused platform with over 300 million users, primarily targeting financially independent, urban women in China. Unlike discount-driven platforms, it attracts less price-sensitive consumers by emphasising aspirational and luxury lifestyles. Brands are using partnerships with influencers and experimenting with livestream hosts as “Key Opinion Sales” (KOS) to sell high-end and niche products.
Takeaway: The platform’s conversational and authentic tone contrasts with the aggressive tactics seen on competing platforms. Although historically seen as a branding tool, Xiaohongshu is making strides in e-commerce by integrating shopping functions and hiring talent from competitors. Experts predict rapid growth in its Gross Merchandise Volume (GMV), potentially reaching $100 billion by 2025. While Xiaohongshu remains a niche player, its unique positioning and growing influence in high-end e-commerce may make it a valuable channel for targeting affluent and aspirational consumers in China.
ii. ChatGPT Expands Search Feature to All Users
OpenAI rolled out ChatGPT’s real-time web search capabilities to all users globally. Previously limited to paid subscribers, this feature allows users to get fast, up-to-date answers with links to credible sources, directly within ChatGPT. The interface is designed to be user-friendly, devoid of ads, and resembles a conversational version of Google Search.
Takeaway: This positions OpenAI as a direct competitor to Google’s search dominance, especially given that its clean, conversational approach and integration of sources may appeal to users seeking straightforward, real-time information.
iii. Threads Trials Post Scheduling
Threads is launching a test for post scheduling directly within the app, responding to a highly requested feature.
- What: Users will soon be able to schedule posts by tapping a menu in the composer. While third-party tools have allowed scheduling since March 2024, this in-app feature will provide a more seamless experience.
- Benefit: The option will help social media managers plan posts more efficiently and ensure proper formatting and analytics integration.
- Implications: Although replies cannot be scheduled, the feature aligns with Threads’ goal of competing with other social platforms and improving user experience. The test will roll out soon, with further updates expected.
iv. Instagram Trials Scheduled DMs
Instagram is testing a new feature that allows users to schedule direct messages (DMs) for future delivery with select Android users.
- What: To schedule a DM, users simply create a message and long-press the send button to select the desired send time.
- Benefit: The new feature allows brands to send messages at optimal times across different time zones and plan their outreach more effectively. This feature could be valuable for maintaining timely communication with audiences, particularly as more interactions shift to DMs. However, while AI bots for DM responses are being tested, they might come across as impersonal, so brands should use them cautiously to avoid a “spammy” feel.
v. YouTube Trials Voice Replies
YouTube is testing a new feature in the US that allows selected creators to respond to comments on their videos with voice notes, with a potential wider rollout in 2025.
- What: The feature is similar to TikTok’s video replies but offers audio instead. Creators can record a voice response using the YouTube app on iOS, but this feature is currently only available on their own channels.
- Benefits: This feature is designed to boost fan engagement by offering a more personal touch compared to text replies. While YouTube already allows creators to reply with Shorts, the audio replies provide a quicker and more personal alternative.
vi. Google: Double Ads, Brand Guides and Ad Policy Updates
Google has rolled out a few updates and tests:
Double Ads: Google is testing a new feature that allows the same advertiser to appear twice on a single search results page, which contradicts its existing policy of showing only one ad per account for a given keyword. The move is being evaluated by Google to assess its impact on advertiser and user value.
- Concerns: While no immediate action is required from advertisers, the test could affect competition, ad performance, and the cost dynamics of search ads. As search ad costs have been rising, this raises concerns about whether multiple ads per keyword will lead to increased revenue or simply higher costs.
Pmax Guidelines: Google is introducing new brand guidelines for Performance Max (PMax) campaigns starting January 30, 2024.
- What: The key change is the requirement to link business name and logo assets directly at the campaign level, rather than the asset group level.
- Benefit: This shift centralises asset management and enhances control over brand representation, ensuring consistency across automated ad formats.
- Concerns: For API users, this update may disrupt workflows as the current API does not support brand guidelines-enabled campaigns, though future updates will address this.
Ad Policies: Google is updating its ad policies to address key shifts in the advertising ecosystem: the rise of privacy-enhancing technologies (PETs) and the growth of Connected TV (CTV).
- What: These changes allow advertisers to use first-party data securely while preserving user privacy, thanks to tools like on-device processing. With CTV becoming a major ad channel, the updates also provide guidance on targeting and measuring campaigns in a fragmented environment.
- Benefits: Notably, the policies prohibit deceptive ads and clarify data use requirements. Adapting to these changes helps advertisers stay competitive while aligning with privacy standards.
Discover More Industry Trends with JC
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