Luxury, Retail, FMCG and Media News & Trends: Jan Week 2

Luxury, Retail, FMCG and Media News & Trends: Jan Week 2

Luxury, Retail, FMCG and Media News & Trends: Jan Week 2

1. Luxury and Retail Business Deals

i. STL Buys French Label Lacroix

Christian Lacroix, the iconic French fashion label renowned for its extravagant 1980s designs, has been acquired by Spanish firm Sociedad Textil Lonia (STL) in a private transaction.

  • Context: Previously owned by the Falic Group, STL sees a synergy between its craftsmanship ethos and Lacroix’s heritage of bold, theatrical fashion.

While Lacroix himself, now 73 and focused on costume design, has endorsed the sale, STL has not disclosed plans for a new creative director or brand expansion strategy.

Takeaway: The acquisition aligns with STL’s existing portfolio, which includes Purificación García and CH Carolina Herrera, signalling its continued ambition in luxury fashion. With renewed interest in Lacroix’s vintage couture on red carpets, this acquisition positions STL to capitalise on the brand’s timeless appeal in a competitive luxury market.

 

ii. L Catterton Buys Stake in Japanese Denim Brand Kapital

L Catterton, the investment fund tied to LVMH and the Arnault family, acquired a majority stake in Japanese denim brand Kapital, known for its artisanal craftsmanship and innovative approach to vintage denim.

  • Context: Founded in 1985 by Toshikiyo Hirata, who drew inspiration from American denim culture, Kapital blends traditional Japanese techniques like Boro patchwork with US-inspired designs. Hirata’s son, Kiro, currently leads the brand’s creative direction.
  • Highlight: Kapital operates 13 stores in Japan, is distributed via 60 international retailers, and has a strong presence among high-end e-tailers.

Takeaway: This acquisition aligns with L Catterton’s strategy of investing in brands deeply rooted in product culture and founder-driven creativity, similar to its investments in APC and Our Legacy.

 

iii. EssilorLuxottica Buys AI Hearing Aid Start-up Pulse Audition

EssilorLuxottica acquired Pulse Audition, a French AI-focused startup specialising in noise reduction and voice enhancement.

Takeaway: This move bolsters the capabilities of its Nuance Audio brand, which merges eyewear and hearing aids to offer stylish solutions for consumers in the 50s and 60s with mild to moderate hearing loss. EssilorLuxottica has been on a strategic acquisition spree, with investments including med-tech, diagnostic solutions, and smart eyewear. Recent collaborations, such as with Meta and luxury brands like Jimmy Choo and Ferrari, highlight its focus on innovation and luxury integration.

 

iv. Indian Skincare Ras Luxury Raises $5m in Round Led by Unilever

India’s Ras Luxury Skincare has secured $5 million in Series A funding, led by Unilever Ventures, with participation from the Amazon Smbhav Venture Fund, Sixth Sense Ventures, and angel investors. The funds will drive retail expansion, talent acquisition, R&D, product diversification, marketing, and technology upgrades. Founded in 2017 as a direct-to-consumer (D2C) brand, Ras plans to establish 100 retail stores across India within four years, marking a significant step toward scaling its luxury skincare offering.

 

v. J.C. Penny and Sparc Group Merge to Form Catalyst Brands

J.C. Penney and Sparc Group have merged to form Catalyst Brands, a joint venture uniting six major retail banners: J.C. Penney, Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand, and Nautica. The organisation aims to leverage its combined expertise in product design, sourcing, and data analytics to drive innovation, streamline supply chains, and enhance customer relationships.

Led by Marc Rosen, former CEO of J.C. Penney, Catalyst Brands also aims to modernise and grow its heritage brands, supported by key shareholders Simon Property Group, Brookfield Corporation, Authentic Brands Group, and Shein.

Takeaway: Notably, the new entity has sold the US operations of Reebok and is exploring options for Forever 21, signalling a focused strategy on core brands and operational efficiency.

 

2. F&B Business Deals

i. KKR Mulls Sale of Japan’s Seiyu Supermarket

US private equity firm KKR is exploring the sale of its 85% stake in Japan’s Seiyu supermarket chain, with Walmart likely selling its remaining 15% as well. The deal could be valued in the range of several hundred billion yen, with bidding already underway. Potential buyers include major Japanese retailers such as Aeon and Pan Pacific International Holdings (owner of Don Quijote), as well as investment funds. The final buyer is expected to be decided by February.

 

ii. Chinese Fast-Food Chain LXJ Explores Hong Kong Listing

Chinese fast-food chain LXJ International (Home Original Chicken) is seeking an IPO on the Hong Kong Stock Exchange to fund its supply chain enhancements, restaurant network expansion, and technology upgrades. After two unsuccessful attempts to list in Shanghai last year, the company now aims to tap into Hong Kong’s capital market. Founded in 1982 as a chicken farm, LXJ opened its first restaurant in 2002 and has since expanded to 1,404 outlets across nine provinces.

 

iii. Oriental Kopi Raises RM184m via IPO in Malaysia

Oriental Kopi, a rapidly growing Malaysian coffee chain, is set to raise RM184 million through an IPO on Bursa Malaysia’s ACE market. The funds will primarily be used for expansion, including opening 13 new cafes in Malaysia and two in Singapore and establishing a new head office, central kitchen, and warehouse. Additionally, the company plans to boost its packaged food division, which has high profit margins.

  • Context: Established in 2020, Oriental Kopi currently operates 20 cafes in Malaysia and one in Singapore. Its strong performance in 2024 saw a net profit doubling to RM57.52 million.

Takeaway: The IPO is expected to fuel further growth and improve profitability, especially through its packaged food segment, which already contributes significantly to margins. Analysts are positive about the company’s future earnings potential, with projections for strong growth in 2025 and 2026.

 

iv. Jollibee’s Milksha to Buy 70% Stake in Taiwan’s Moon Moon Food

Jollibee’s Milksha brand, known for its premium tea offerings, is set to acquire a 70% stake in Taiwanese wellness soup brand Moon Moon Food for $3.17 million. Founder and CEO Yung-Cheng Lai will retain a 30% ownership stake.

  • Context: Moon Moon Food operates 13 outlets in Taiwan and recently expanded internationally, opening its first branch in Singapore.

Takeaway: This acquisition aligns with Milksha’s strategy to enhance its leadership in Taiwan’s tea segment while expanding into the wellness and alternative healthy beverage space.

 

3. People Moves

Dr. Martens: Darren Leon McKoy has stepped down as Global Creative Director at Dr. Martens after a decade with the brand. McKoy joined in 2015 and played a pivotal role in transforming Dr. Martens from a £136 million to a £1 billion business, contributing to its bold, risk-taking approach. His departure, announced after much consideration, marks the end of a key chapter for the company as he moves on to new creative challenges.

Macy’s: Robert Chavez, former CEO of Hermès Americas, was appointed to the Macy’s Board of Directors. Chavez has vast experience in luxury retail, particularly in the ultra-luxury sector at Hermès. The move comes as Macy’s undergoes a restructuring with a focus on its luxury brands, Bloomingdale’s and Bluemercury. It is also testing new strategies at its first 50 stores.

Bata: Bata appointed Miguel Esquide as its new Chief Design Officer to drive the company’s global creative vision. Based in Padova, Italy, Esquide will oversee Bata’s core brand and its extensions (Bata RedLabel and Bata Comfit), with a focus on enhancing design and brand identity to stay relevant in today’s market.

  • Experience: Esquide has over 20 years of experience and has led footwear design and strategy at Inditex for brands like Zara and Pull&Bear. He also co-founded luxury brand 1Concept.
  • Takeaway: Bata aims to integrate design innovation into its evolution, focusing on fresh collections that combine craftsmanship and style to strengthen consumer engagement. This aligns with Bata’s broader strategy to appeal to a younger, trend-savvy audience while maintaining its legacy of quality and comfort.

 

4. Marketing and Advertising

i. Study Links SEO Ranking with ChatGPT Mentions

A recent study by Seer Interactive revealed that brands ranking on Google’s first page are more likely to be mentioned in ChatGPT’s AI-generated answers. The study indicates a strong correlation (~0.65) between Google rankings and ChatGPT mentions, with Bing rankings showing a lesser correlation (~0.5–0.6). Interestingly, backlinks and content variety had minimal impact on visibility in AI responses.

Takeaway: This suggests that optimising for traditional Google rankings may help improve brand visibility in generative AI models like ChatGPT. However, the study focuses only on the finance and SaaS industries. Notably, it also reported that while search rankings influence AI mentions, other factors like PR, partnerships, and on-page strategies might also play a role. This marks a new avenue for generative engine optimisation (GEO), distinct from traditional SEO.

 

ii. Google Ads Rolls Out PMax Budget Reallocation Trials

Google Ads introduced controlled experiments to help marketers evaluate the impact of reallocating budgets from Dynamic Search Ads (DSA) or Display campaigns to Performance Max (PMax) campaigns.

  • What: To use this, marketers can set up an experiment in Google Ads by selecting a DSA or Display campaign as a control and testing against a new PMax campaign.

Takeaway: This enables a direct comparison of results and provides data-driven insights into the effectiveness of shifting the budget toward Pmax support budget optimisation. By leveraging AI, PMax campaigns can also automatically optimise ad performance across Google properties, offering greater efficiency and potentially stronger results. This update empowers marketers to fine-tune their ad spend and maximise Return on Ad Spend (ROAS) with more confidence.

 

iii. Amazon Extends Retail Ad Service to Other Retailers

Amazon is launching a new retail ad service that allows other US retailers to leverage its advanced ad technology on their own websites.

  • What: This service enables retailers to display contextually relevant ads, customise placements, and use Amazon’s ad measurement tools. Early adopters include iHerb, Weee!, and Oriental Trading Co.

Takeaway: This move expands Amazon’s reach in the digital advertising space beyond its own marketplace and positions it to capture more digital ad market share while offering other retailers opportunities to increase ad revenue. It also helps Amazon gather valuable data, enhancing its ad targeting capabilities across a broader retail ecosystem.

 

iv. Microsoft Rolls Out Two Retail Media Ad Offerings

Microsoft is expanding its role in retail media with two new products aimed at helping retailers monetise their first-party data and enabling brands to reach shoppers across various platforms.

  • Curate for Commerce allows retailers to monetise their first-party data by partnering with non-endemic advertisers, with minimal tech investment required. Microsoft handles the advertiser relationships.
  • Sponsored Promotions by Brands (SPB) lets brands advertise across Microsoft Edge, Bing, and retail partner sites on a cost-per-sale model, streamlining campaigns across multiple retailers.

Takeaway: These tools provide precision targeting and simplify campaign management, making it easier for brands to reach customers and only pay for actual sales.

 

v. Reddit Launches AMA Ads and Business Analytics Tool

Reddit launched two new tools aimed at businesses: Reddit Pro Trends and AMA Ads.

  • Reddit Pro Trends allows businesses to track and visualise real-time conversations about their brands and industries across the platform, helping them monitor trends and identify relevant communities. Early adopters like Wayfair and the NBA have seen increased engagement.
  • The AMA Ads format enables businesses to directly promote Ask Me Anything (AMA) sessions, with features like RSVP tracking, facilitating active participation in discussions.

Takeaway: These tools are expected to help businesses leverage Reddit’s authentic user conversations for marketing and engagement, aligning with the platform’s strategy to monetize its growing user base.

 

Discover More Industry Trends with JC

For the latest industry trends or to explore new career opportunities, connect with our luxury & retail recruitment consultants for a chat. With executive search firms in Singapore and China, and operations in key business hubs like Hong Kong, you can count on our team for timely access to regional insights that can create synergy for your career and operations.

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Image Credits:

  • Walmart
  • Kapital
  • Datamation