Luxury, Retail, FMCG and Media News & Trends: Sep Week 3

Luxury, Retail, FMCG and Media News & Trends: Sep Week 3

Luxury, Retail, FMCG and Media News & Trends: Sep Week 3

 

1. Business Moves

i. Miniso to Buy Shanghai-Listed Yonghui Superstores from Giant Owner

Miniso acquired a 29.4% stake in Yonghui Supermarket for RMB 6.3 billion from DFI Retail Group. The acquisition, which includes shares from both DFI and JD.com, will make Miniso the largest shareholder in Yonghui. Yonghui, a leading offline fresh produce retail chain, has struggled in recent years, with its market value dropping to one-fifth of its peak. Miniso’s plan focuses on leveraging its design and supply chain expertise to help improve Yonghui’s operations while aiming for synergies in retail channels and supply chains.

Takeaway: The move is surprising to many, given the operational differences between the two companies. However, Miniso sees it as an opportunity to support Yonghui’s transformation while enhancing its own offline retail offerings by leveraging Yonghui’s essential goods segment. The move is also expected to help the Group diversify its cyclical business risks. However, the market reflected sceptical sentiments. For DFI Retail Group, the move aims to help it reallocate capital to bolster DFI’s subsidiaries across its markets. Although DFI Retail expects a US$127 million hit to its bottom line, the sale will significantly strengthen its balance sheet, shifting from net debt to net cash.

Read the full article about Miniso’s stakes in Yonghui.

 

ii. LVMH Buys Stake in Moncler

French luxury baron LVMH acquired a 10% stake in Remo Ruffini’s holding company that controls Moncler. Ruffini remains in control and committed to Moncler’s future, with LVMH supporting his vision.

Takeaway: The deal gives it a key influence in the brand and a seat on Moncler’s board. It follows the Group’s acquisitions of brands like Fendi and Loro Piana and continues LVMH’s strategy of increasing its presence in Italian luxury.

Read the full article about LVMH’s investment in Moncler.

 

iii. Perfume Maker Vyrao Bags Funds from L Catterton, Estée Lauder

Vyrao, a London-based niche fragrance brand, secured a significant investment from Elevate Beauty, backed by L Catterton, Estée Lauder’s New Incubation Ventures and Gap magnate Bill Fisher’s family office. The funds will support Vyrao’s international expansion and product innovation focused on fragrances with neurological effects.

Takeaway: The combined portfolios of these three firms feature some of the most talked-about brands in beauty, such as cosmetics labels Dibs and Merit, fragrance house Diptyque, and British retailer Space NK. They’ve also been instrumental in some of the industry’s largest acquisitions:

  • Manzanita Capital sold the popular fragrance brand Byredo to Puig in 2022 for $1 billion.
  • Estée Lauder acquired Deciem, the parent company of the hit skincare brand The Ordinary, in 2021 for $1.7 billion after initially taking a minority stake.
  • L Catterton-backed beauty company Oddity went public in 2023 with a valuation of $2.7 billion.

This marks the first time all three firms have invested together in the same funding round. Vyrao caught L Catterton’s attention due to its attractive pricing and wide distribution network.

Read the full paid article about the fundraising for Vyrao.

 

iv. Gulf Eyewear Firm Magrabi Merges with Rivoli Group

Magrabi Retail Group, a leading Gulf eyewear firm, merged with Rivoli Group. The new entity, the Magrabi-Rivoli Enterprise, will combine the firms’ store portfolios, giving Magrabi a dominant market share across seven countries, including Saudi Arabia, UAE, and Qatar. By the end of 2024, Magrabi plans to operate over 290 stores, boosted by Rivoli’s network. Both companies see this merger as a key step toward market consolidation and global leadership, with Rivoli maintaining a minority stake and leadership role in the new venture. As part of the agreement, Rivoli will retain a minority stake in Magrabi Retail Group, with Rivoli Group’s vice chairman and managing partner, Ramesh Prabhakar, joining Magrabi’s board and serving on the investment committee. He will also continue to lead Rivoli Group.

Takeaway: This merger creates a major player in the Middle East’s fragmented eyewear market.

Read the full article about the merger between Magrabi and Rivoli.

 

 v. IKEA Tests Out Smaller Stores in China

IKEA is shifting its strategy in China by introducing smaller retail formats to adapt to the changing market dynamics, which include economic slowdown and heightened competition from local rivals. The initiative includes a 300-square-meter Plan and Order Points in Shenzhen, which is one-tenth the size of its traditional stores, and will advise customers on complex orders.

Takeaway: The Chinese retail landscape is increasingly competitive. For instance, domestic players like Red Star Macalline and Nitori Holdings offer customisation and a stronger online presence, which places pressure on IKEA’s traditional model. Despite this, IKEA is investing 6.3 billion yuan over three years to expand and enhance its logistics while lowering prices on numerous products to attract cost-conscious consumers. The company is also enhancing its digital strategy in a market where e-commerce dominates.

Read the full article about IKEA’s small-store initiative in China.

 

2. New Openings

i. Footwear Brand Jonak Opens First Asian Store in Hong Kong

French footwear brand Jonak made its Asian debut by opening a store in Hong Kong’s K11 Musea through a partnership with Rue Madame Fashion Group (RMFG). Jonak is known for its Parisian styles and craftsmanship, targets fashion-conscious young urban women aged 25 to 45, and aims to establish a flagship presence in the Asian market.

Takeaway: The expansion will enable Jonak to tap into Hong Kong’s thriving fashion and arts scene while leveraging its position as the gateway to Asia.

Read the full article about Jonak’s expansion into Hong Kong.

 

ii. Chaumet Launches First Boutique in Thailand

French jewellery Maison Chaumet launched its first boutique in Thailand at ICONSIAM. The new boutique features a curated selection of high jewellery for Valentino and feature collections such as Joséphine, Bee My Love, and Liens.

Takeaway: The move is part of its plans to expand in Southeast Asia and follows the recent openings in Kuala Lumpur and Hanoi. It reflects the company’s intention to capture the significant commercial potential in the Southeast Asian jewellery market.

Read the full article about Chaumet’s boutique at ICONSIAM.

 

3. People Moves

i. Luxury: Fendi, LVMH, Hermés, Alberta Ferretti and Nike

Fendi: Pierpaolo Piccioli, Valentino’s former designer, is expected to take on the role of creative director at Fendi, as industry insiders reported. Piccioli significantly boosted Valentino’s reputation and increased its revenue to €1.3 billion before his departure in March 2023. His non-compete clause will conclude in September, clearing the way for his potential transition to Fendi. Piccioli’s appointment is highly anticipated.

LVMH: Christopher de Lapuente, CEO of LVMH’s selective retailing division, will retire on October 31. Sephora has expanded its global presence and revenue fivefold since he took the helm and became a leading force in prestige beauty that is innovation- and customer service-driven.

Hermés: Hermès appointed Megha Malagatti as managing director for its Indian operations. Malagatti was previously a director at L’Oréal, where she focused on beauty technology and marketing for various brands. She has held roles at Kiehl’s, Shu Uemura, Urban Decay and S.T. Dupont.

Alberta Ferretti: Italian fashion designer Alberta Ferretti is stepping down as the creative director of her brand after 43 years, although she will continue as vice president of the parent company, Aeffe. This transition marks a significant moment for the brand as it seeks to initiate a new creative direction. The company plans to conduct an internal review to enhance efficiency and improve overall performance.

Nike: Nike announced the departure of CEO John Donahoe, with longtime executive Elliott Hill stepping in to lead the company starting October 14. Hill previously held key positions at Nike before retiring in 2020. Investors reacted positively, with Nike’s stock rising significantly after the announcement. Hill is expected to accelerate product development, reintroduce innovative sneaker technology to engage consumers, and revitalise the brand as it faces declining sales and increasing competition from newer athletic brands like On and Hoka, as well as established rivals like Adidas.

Read the full article about Piccioli’s rumoured appointment at Fendi.

Read the full article about de Lapuente’s departure from LVMH.

Read the full article about Hermés’s new India MD.

Read the full article about Ferretti’s departure from Aeffe.

Read the full article about Hill’s appointment as Nike’s CEO.

 

 ii. Accessories: Montblanc

Montblanc: Montblanc appointed Giorgio Sarné as its new CEO, effective November 15, 2024. Sarné previously served as president and CEO of Stuart Weitzman and has over 20 years of luxury brand experience. This includes global roles at Veuve Clicquot and Tag Heuer. He succeeds Nicolas Baretzki, who transitioned to a role at Christian Dior Couture.

Read the full article about Montblanc’s CEO from Stuart Weitzman.

 

iii. Beauty: L’Occitane

L’Occitane: L’Occitane International announced the immediate resignation of CEO Laurent Marteau, who is leaving to pursue personal interests and other business ventures. Marteau joined L’Occitane in August 2022 and previously worked with La Prairie. The company is currently transitioning its management structure as it prepares to delist from the Hong Kong Stock Exchange, a process expected to be finalised by October 16.

Read the full article about Marteau’s departure from L’Occitane.

 

iv. F&B: Starbucks

Starbucks: Starbucks’ new CEO, Brian Niccol, appointed co-CEO Molly Liu as the sole leader of its China operations. The move is part of a broader strategy to refresh the company’s leadership and adapt to market challenges. Liu will work alongside Belinda Wong, who will remain as chair to guide innovation and development strategy in China. The company aims to stabilise operations amid rising competition as it plans to expand its store footprint by about 1,700 locations.

Read the full article about Starbucks’ leadership reshuffle in China.

 

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Image Credits:

  • Yicai Global
  • Inside Retail
  • NYTimes