Luxury, Retail, FMCG and Media News & Trends: Oct Week 4

Luxury, Retail, FMCG and Media News & Trends: Oct Week 4

Luxury, Retail, FMCG and Media News & Trends: Oct Week 4

1. Trends

UHNW Value Memories and Innovative Experiences

The latest study by Havas Media reveals a shift in the luxury market, where ultra-high-net-worth (UHNW) consumers increasingly prioritise unique, memorable experiences over traditional displays of wealth. This trend, led by “Memory Makers”—mainly Gen X and millennials—emphasises meaningful interactions, creative storytelling, and immersive experiences. These consumers seek lasting, emotionally engaging purchases, with preferences leaning toward travel, hospitality, and high-quality heirlooms like watches instead of material acquisitions. Luxury shoppers are also increasingly disengaged with conventional celebrity endorsements, instead valuing creativity and artistic storytelling throughout the consumer journey.

Takeaway: Investing more in experiential marketing and creative storytelling can help brands better engage with consumers to build meaningful connections.

 

2. Business Moves

i. Shein Launches Credit Card with Mexican Fintech

Shein, the Chinese fast-fashion leader, is set to launch its first branded credit card globally through a partnership with Mexican fintech Stori. The new Mastercard will reward users with points for purchases, offering double points for clothing bought on Shein’s website. Stori, which has rapidly grown its client base to 3 million in four years, will exclusively offer the card to new customers.

Takeaway: This development reflects Shein’s strategy to strengthen its presence in Mexico further and capitalise on the booming e-commerce market in Mexico, where over 40% of online purchases are clothing and access to credit is limited. Shein has gained significant traction in Latin America and plans to expand its operations in Mexico and Brazil.

 

ii. Cult Mia Gets US$2m More in Seed Funding

Cult Mia, a London-based luxury retail platform, raised an additional US$2 million in seed funding, bringing its total seed funding to US$5 million. This new round saw participation from notable investors like H&M Group Ventures, Fuel Ventures, and David Wertheimer (from the Chanel family). Instead of carrying major luxury labels, the brand focuses on curating independent, regionally popular brands, brands with limited international distribution and brands that are open to exclusive partnerships. It has been expanding rapidly, especially in the Middle East, its second-largest market, which has shown 413% year-over-year (YoY) growth.

Takeaway: The fresh investment will support the platform’s plans to scale globally, especially in the Middle East, where consumers have higher spending power and demand for unique, independent fashion brands. It will also enable the platform to add more brands and test new product categories, such as everyday wear, childrenswear, maternity, and homeware. It will also help the platform position itself as a unique alternative to larger competitors like Farfetch and Net-a-Porter by offering exclusive, hard-to-find brands.

 

iii. Nike Pivots Growth Towards ACG Outdoor Business

Nike is pivoting toward growth by enhancing its outdoor business, All Conditions Gear (ACG), which specialises in hiking and trail running equipment like waterproof boots and jackets. The brand plans to bolster resources across global teams while refining ACG’s strategy, structure, and operational framework in the coming months. Angela Dong, who currently oversees Greater China, will lead ACG and focus on the Chinese market. Scott LeClair has been appointed vice president and general manager for the division.

Takeaway: For luxury and retail executives, Nike’s strategy underscores the importance of adapting to market changes and exploring growth in niche segments. By targeting the outdoor gear market and emphasising strategic leadership in key regions like China, Nike exemplifies a proactive approach to capturing emerging consumer trends.

 

iv. Levi Anticipates Sale of Dockers in Six to Nine Months

Levi Strauss & Co. plans to sell its Dockers brand within six to nine months amidst strong buyer interest. The move comes as Levi continues refining its brand portfolio by discontinuing underperforming lines, such as footwear and Denizen. This sale aligns with Levi’s strategic focus on strengthening its core brand, driving growth through direct-to-consumer channels, and expanding its Beyond Yoga line.

Takeaway: Notably, Dockers now has its own management team—unlike during a previous attempt to sell the brand two decades ago—positioning it better for a potential sale. Although efforts to revive Dockers haven’t met expectations, the CFO believes a new owner could successfully reposition the brand.

 

3. Partnerships

i. Chanel Partners with the Boat Race for its First Sports Sponsorship

Chanel is stepping into the world of sports sponsorship by replacing cryptocurrency firm Gemini as the sponsor of Britain’s historic Boat Race, which will now be called the Chanel J12 Boat Race. Starting April 13, 2025, this partnership marks Chanel’s first venture into sports, and the sponsorship will last until at least 2029, coinciding with the race’s 200th anniversary. The brand will also serve as the official timekeeper for the annual competition between Oxford and Cambridge Universities. The event, the oldest major sporting event in Britain, is expected to draw over two million television viewers. Chanel’s entry into sports aligns with its heritage, as founder Gabrielle Chanel had a history of designing sportswear.

Takeaway: Luxury brands increasingly invest in sports sponsorships, recognising the opportunity to enhance brand visibility and engage with diverse audiences while connecting their heritage with contemporary lifestyles. Some recent collaborations include LVMH’s sponsorships for the 2024 Paris Olympics and Formula 1.

 

ii. Zara and Nanushka Collaborate for Premium Wear and Home Furnishing

Zara is enhancing its brand by forming high-end collaborations, including its latest partnership with Hungarian fashion label Nanushka. Nanushka is owned by the Vanguards Group and the investment firm GB & Partners. The menswear line showcases tailored and oversized silhouettes made from high-quality materials, while the jewellery reflects minimalist, Bauhaus-inspired aesthetics.

Takeaway: The move aligns with Zara’s recent strategy to shift upmarket and focus on premium offerings. The partnership also sees Zara expanding further into the home decor sector, with Nanushka providing items for a collection available through Zara’s homeware division, Zara Home. It also represents Nanushka’s first foray into the home furnishings market.

 

iii. Li Ning Forms Joint Venture with Hongshan Capital

Li Ning Company announced the formation of a joint venture with Hongshan Capital to develop and operate the Li Ning brand’s business exclusively in international markets. The joint venture will see Li Ning and its founder hold 55% ownership. The venture will encompass various operations outside mainland China, including design, manufacturing, logistics, and marketing. Li Ning intends to maintain a strong focus on the domestic market while exploring international opportunities, particularly in regions like the Belt and Road Initiative.

Takeaway: Li Ning’s strategy reflects a desire to leverage Hongshan’s cross-border expertise and resources to navigate the international markets without diverting attention from its home turf, where it faces increasing competition.

For Chinese sports brands, entering the international market offers new growth opportunities while enabling firms to drive product innovation and upgrade the brand. These, consequently, boost brands’ influence and recognition in the domestic market.

In the past, sports brands have ventured into overseas markets by establishing subsidiaries, expanding channels, and exporting products. However, brands face constraints of the parent company’s resource allocation, cultural differences, and brand recognition in other countries. These factors affect their competitiveness against local brands and make achieving large-scale international expansion challenging.

The collaboration between Li Ning Group and Hongshan provides a new model for more flexible localisation opportunities, which can serve as a blueprint for brands considering similar paths.

 

4. Marketing and Advertising

i. YouTube Rolls Out Poll Stickers for Shorts and Ad Blocking

YouTube has introduced several features designed to enhance user engagement, personalisation, and control over ad placements. Key updates include:

  • Poll Stickers for Shorts: Creators can now add poll stickers to Shorts, allowing them to engage viewers directly within the video to boost engagement and visibility.
  • Enhanced Views Display: A new filter on the “Views” display shows view counts by content type (like Shorts, videos, etc.), allowing creators to better focus their content strategies based on format-specific performance.
  • Super Chat Gamification: A goal-tracking feature is being tested to gamify Super Chat revenue in live streams and Premieres. Creators can set contribution goals with rewards to drive viewer participation and revenue.
  • Ad Category Blocking: Now available directly on YouTube Studio, this feature gives creators more control over ad categories shown on their channels, though blocking ads may reduce channel revenue.

 

ii. Thread Launches Mobile Analytics

Threads launched mobile analytics. Accessible via a new chart icon on your profile, the feature provides insights into post views, engagement metrics (likes, replies, re-posts, quotes), audience demographics, and more, all accessible within a seven to 90-day timeframe.

Takeaway: The new mobile analytics simplifies the process for marketers to track their performance directly in the app. While similar analytics have been available on the desktop version since August, this mobile version allows real-time monitoring, which is essential as more brands focus on the platform.

Threads’ user base has steadily grown, reaching 200 million monthly active users, partly fuelled by recent controversies at X (formerly Twitter), which has driven users to explore other platforms. While Threads isn’t a complete Twitter replacement, its growing user engagement and positioning as a more positive alternative make it a valuable platform for social media marketing.

 

iii. X’s ‘Radar’ Keyword Analytics Expanded to More Users

X introduced “Radar,” a new analytics feature, as part of its Premium+ offering. Radar provides advanced keyword analytics that allows users to track real-time conversation trends, helping brands quickly identify emerging topics. While the feature is only available to Premium+ users, it also includes access to tools like X Pro, Media Studio, and an AI chatbot, all ad-free.

Takeaway: This analytics upgrade could offer critical insights into audience interests and allow consolidation of social media management tools for brands that remain active on X.

 

iv. Google Performance Max Launches AI-Driven Ad Tools

Google is enhancing its Performance Max advertising platform with AI-powered tools to improve campaign efficiency and creativity. Key updates include:

  • AI-powered image generation using Imagen 3.
  • Sharable ad previews to enhance team collaboration.
  • Advanced capabilities for video creation.
  • New asset testing tools for Performance Max.
  • Enhanced tools for managing campaigns.

Takeaway: The updates support more efficient performance testing and enhance team collaboration. It also boosts the flexibility in managing multiple campaign types, with Ad Rank now prioritising between Standard Shopping and Performance Max campaigns for optimal ad serving.

 

5. People Moves

i. Luxury: Courrèges, Bally, Humanrace and Neal’s Yard

Courrèges: Adrien Da Maia, the president and CEO of Courrèges, will be stepping down on November 4, with Marie Leblanc taking over the role. This transition is part of a broader shakeup in the luxury and retail industry, characterised by numerous executive changes. Da Maia has been credited with revitalising Courrèges since 2020, establishing a solid creative direction, and successfully attracting a younger customer base, leading to impressive triple-digit growth in recent years. Leblanc, the former CEO of Victoria Beckham, is expected to continue Courrèges’ upward trajectory, focusing on innovation and customer connection.

Bally: Bally officially appointed Ennio Fontana as its new CEO following the departure of Nicolas Girotto at the end of September. Fontana previously served as managing director for brands like Dsquared2, Cavalli, and Philipp Plein. Bally, established in 1851 and creatively directed by Simone Bellotti since 2022, was recently bought over by Californian investment firm Regent LP, which also owns brands like Club Monaco and Escada.

Humanrace: Humanrace, the brand co-founded by Pharrell Williams in 2020, appointed Andrea Grilli, the previous CEO of Off-White, as its new CEO. The move comes as the company secured growth funding from One Luxury Group, which supports other high-profile beauty brands like Hailey Bieber’s Rhode beauty line. The leadership transition and new investment signal a pivotal moment for Humanrace as it seeks to expand its reach beyond skincare and body care.

Neal’s Yard: Neal’s Yard Remedies, a British brand known for its natural cosmetics, appointed Grace Oh as Chief Marketing Officer. In her new role, Oh will focus on refining brand equity and reinforcing its core values. Oh, who has 13 years of experience, was previously consulting for beauty brand Gisou. She has also held senior positions at Charlotte Tilbury and L’Oréal, where she worked across various luxury and consumer brands in regions including the UK, Paris, and Asia Pacific.

 

ii. Sports: Adidas

Adidas: Arthur Hoeld, the global sales executive of Adidas and a 26-year veteran of the brand, will leave at the end of October 2024. He will be succeeded by Mathieu Sidokpohou, who has been with Adidas for four years and previously led various European markets, during which he drove over 20% growth in the region. This leadership shift follows the earlier departure of 27-year veteran Martin Shankland, who oversaw global operations.

 

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:

  • EconoTimes
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