Luxury, Retail, FMCG and Media News & Trends: Nov Week 1

1. Business Moves

i. Amazon Pivots to Essentials to Counter Competition

Amazon is adjusting its strategy to focus on everyday essentials such as toothpaste, dish detergent, and floss. While this shift lowers the items’ average selling price (ASP), it helps drive more frequent shopping and larger cart sizes. Amazon is also leveraging its local warehouse network to deliver these products quickly

Takeaway: The move seeks to help Amazon counteract the rise of discount retailers from China, who are known for their low-priced offerings. It mirrors trends among peers back home. For instance, Walmart, the largest supermarket chain globally, and the smaller retailer Target, have also reduced prices on essential items in a competitive effort to attract price-conscious shoppers amid inflation concerns. By focusing on essentials, Amazon can establish its presence in the category of time-sensitive goods, which foreign competitors are less focused on and have low a likelihood of prioritising.

ii. Permira Buys Minority Stake in French Outwear Brand K-Way

Global investment firm Permira entered into an agreement to acquire a minority stake in French premium outerwear brand K-Way, valued at around 40%. The remaining 60% stake will remain with BasicNet, which the Boglione family leads. K-Way is recognised for its lifestyle fashion, sportswear products and windbreakers, especially its waterproof packable jacket, the “Claude”.

Permira plans to support K-Way’s expansion strategy, which includes enhancing its brand leadership in France and Italy, expanding product lines, opening new stores, and exploring international growth opportunities. The deal is expected to close by Q1 2025.

Takeaway: This partnership aligns with Permira’s focus on backing brands worldwide. The team has invested over €15 billion globally and has collaborated with brands such as Golden Goose and Dr Martens.

iii. Michele Debuts first Valentino Collection at DSM Pop-Ups

Valentino partnered with the concept store Dover Street Market (DSM) to expand its retail presence globally. The partnership involves the launch of Valentino pop-up shops curated for the “Avant les débuts” Spring 2025 collection at DSM locations in major cities, including London, Paris, New York, Singapore, Los Angeles, and Tokyo.

Takeaway: The collaboration is strategically timed with the debut of the brand’s new Creative Director, Alessandro Michele. Known for promoting avant-garde and emerging designers, DSM provides an ideal platform for Valentino’s fresh creative direction.

Michele, whose background leans heavily on high fashion and street sensibility, is expected to appeal to a younger, diverse demographic and strengthen Valentino’s global presence. His vision could rejuvenate product lines, especially in accessories and menswear, aligning with the ambitions of parent company Mayhoola and potential partner Kering. Michele’s Roman heritage and appreciation for craftsmanship are expected to guide Valentino’s evolution while preserving the brand’s rich history.

2. Marketing and Advertising

i. Google Adds Segmentation to Performance Max Asset Groups

Google Ads introduced a segmentation option for Performance Max (PMax) Asset Group performance in select accounts, offering a long-awaited granular look at campaign data. This feature enhances the monitoring and optimisation capabilities for PMax campaigns, particularly through the ability to analyse conversions, click types, device, and timing insights (“days to conversion”) across asset groups. This segmentation, accessible in the Table View, addresses previous UI challenges by allowing advertisers to break down data by specific factors like time and network type, thus supporting more precise data-driven adjustments.

Takeaway: This development means greater control and insight into campaign performance and user behaviour. The ability to segment conversions and track conversion timing empowers advertisers to optimise campaigns to achieve faster and higher-value conversions, ultimately enhancing return on ad spend (ROAS) and campaign efficiency.

ii. ChatGPT Search Engine Unveiled

OpenAI has upgraded ChatGPT with real-time search capabilities, positioning it as a direct competitor to Google’s search dominance. With this feature, ChatGPT now provides instant answers linked to live web sources. OpenAI has enhanced ChatGPT by integrating web search capabilities, allowing the AI chatbot to provide timely, link-supported answers directly from web sources. This update mirrors Google search results and Google Maps while echoing the conversational interface of other AI search tools like Perplexity. Publishers can choose to appear in ChatGPT’s search results, and OpenAI is actively engaging with content creators for feedback.

Takeaway: The move strengthens ChatGPT’s functionality, addressing a former limitation of AI chatbots: outdated information. OpenAI’s integration of search functionality represents a significant step toward a more search-like, AI-powered ecosystem that could draw users away from Google.

iii. Meta to Develop its Own AI Search Engine

Meta is developing its own AI-driven search engine to reduce reliance on Google and Bing by integrating this new search function into its platforms, such as WhatsApp, Instagram, and Facebook.

Meta’s approach leverages real-time data sources, including Reuters content, to deliver relevant responses through its AI chatbot, Meta AI.

Takeaway: By building this independent search engine, Meta is likely aiming for greater control over its data and user engagement. This move is part of a broader trend where major tech players like Google, Microsoft, and OpenAI are intensifying efforts to lead the AI search space, which could affect traditional search traffic and impact SEO strategies as the industry matures.

iv. Google Tests Out Business Links to Enhance Search Ad

Google’s new Business Links feature, currently in the pilot stage, allows the tailoring of multiple AI-enhanced, customisable headlines to different customer intents within a single ad to boost engagement and relevance in search ads. It functions similarly to site links but with greater flexibility, allowing up to three headlines per link and optimising with Google AI to dynamically target diverse user needs in real time. Advertisers can enable or disable AI assistance, create tailored links with up to three headlines and one description each, and track link-specific performance in the Google Ads platform.

Takeaway: This development allows marketing teams to refine audience segmentation strategies and expand reach effectively in search campaigns.

v. LinkedIn launches Post Boosting for Lead Generation

LinkedIn introduced a new feature that allows businesses to boost organic posts for lead generation, turning them into targeted ads. The process is straightforward: businesses select a post, set a budget, choose targeting options, and create a lead form to capture prospect information. The feature is designed to increase visibility and drive engagement, helping brands generate leads more efficiently. Available globally in multiple languages, it offers a practical tool for companies looking to grow their audience.

Takeaway: This feature helps brands expand their reach beyond their followers and engage high-quality prospects using LinkedIn’s first-party data.

3. People Moves

Estee Lauder: Jane Lauder, granddaughter of Estée Lauder, is stepping down from her leadership role at Estée Lauder Companies, where she had served in senior positions, including as Executive Vice President of Enterprise Marketing and Chief Data Officer. Her departure follows the announcement of CEO Fabrizio Freda’s upcoming retirement in 2025. Jane Lauder, once considered a potential successor for Freda, will remain on the board and as a shareholder, offering advisory support during a critical period of business restructuring. Estée Lauder is facing challenges and is undergoing a leadership transition as part of efforts to regain its position as a global leader in prestige beauty.

Performance Group: Performance Beauty Group (PBG) appointed JuE Wong as its new CEO. Wong has a strong track record of scaling businesses globally. She has previously held top positions at Olaplex, Moroccanoil, and Elizabeth Arden, among others. She will lead the key beauty categories—lashes, brows, eyes, lips, and hair, and focus on enhancing consumer engagement, strengthening brand partnerships, and integrating technology to drive growth.

Columbia: Outdoor apparel brand Columbia Sportswear is set to unveil a fresh brand image under a revamped marketing approach led by Matt Sutton, a former global marketing director at Facebook. Sutton’s experience across digital-first brands like Framebridge and The Black Tux, combined with his social media expertise from Facebook, aligns with Columbia’s goal of integrating omnichannel strategies. Sutton is expected to reshape Columbia’s consumer engagement through innovative digital and omnichannel tactics. To support this transformation, Columbia has partnered with the creative agency adam&eveDDB across London, New York, and Los Angeles offices.

Walt Disney: The Walt Disney Company appointed James P. Gorman as Chairman of its Board of Directors, effective January 2, 2025. Gorman, who is currently Executive Chairman of Morgan Stanley, will succeed Mark G. Parker, who will step down after nine years on the Board. Gorman has been serving as Chair of Disney’s Succession Planning Committee, which is focused on identifying a new CEO. This announcement follows his decision to step down from his role at Morgan Stanley at the end of 2024. The search for a new CEO is expected to conclude by early 2026, allowing time for a smooth leadership transition before Bob Iger’s contract ends in 2026.

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Image Credits:

• Bloomberg