All articles tagged with #luxury industry
Jonathan Anderson made a bold debut at Paris Fashion Week for Dior by challenging traditional norms with a provocative show that included a documentary-inspired opening, short skirts, and surreal accessories, aiming to revitalize the brand amid a challenging luxury market and reconnect Dior's historic trauma-rooted identity with contemporary culture.
Giorgio Armani's heirs are instructed by his will to sell a majority stake in his namesake fashion brand, initially 15% within 18 months, likely to a French buyer such as LVMH, with subsequent divestments leading to a final sale of 54.9%, or a public offering if no buyer is found, amidst challenges in brand growth and shifting consumer preferences.
Francoise Bettencourt Meyers, L'Oréal heiress and Europe's richest woman, has seen her wealth drop by $26 billion in 2024 due to a 25% decline in L'Oréal shares, largely attributed to weak demand in China. Despite this, she continues to invest through her family firm, Téthys Invest, expanding its portfolio by 26% this year. Bettencourt Meyers remains a significant figure in French business, holding a 35% stake in L'Oréal, although she has been surpassed as the world's richest woman by Alice Walton.
Gucci's parent company, Kering SA, experienced a $9 billion market value drop due to a significant sales slump in China, signaling a broader slowdown in the luxury industry as Chinese shoppers reduce their spending on high-end products.
Gucci CEO Marco Bizzarri is stepping down after eight years as the leader of the fashion house, following a year of declining sales and the departure of Gucci's creative director, Alessandro Michele. The parent group, Kering, announced a major organizational shake-up, appointing Francesca Bellettini as the conglomerate's deputy chief executive for brand development. The management reshuffle aims to capture the growth of the global luxury market and set Kering on a path to success and profitable growth.
Swiss-Italian national Ilaria Resta will become the new CEO of Audemars Piguet beginning January 1, 2024, succeeding long-time CEO François-Henry Bennahmias. Resta's background lies primarily in the cosmetic industry, where she has led major divisions and built up global brands. Bennahmias will continue as CEO until Resta's official appointment begins next year.
The lifting of pandemic restrictions has led to a rebound in luxury spending in China, with Western brands such as LVMH, Hermès, and Brunello Cucinelli reaping the benefits. Retail sales of jewelry, gold, and silver in China soared 37.4% in March from a year earlier, with luxury spending bouncing back even faster than the country's overall economy. Analysts predict that China will be the luxury industry's key growth engine this year, with the population of middle- and high-income consumers in mainland China expected to double to 500 million by 2030. However, not all brands are benefiting equally, with Kering's muted quarterly results serving as a reminder that a rising tide in China won't necessarily lift all boats.