2Jour Gazette | Edition 4 | 13 Oct - 20 Oct 2024
- Marina 2Jour
- Oct 21, 2024
- 32 min read
Updated: Nov 6, 2024
I slowly walked through the Loewe showroom, occasionally touching the dresses, shearling coats, and sweaters hung around the perimeter. Luxury boutiques have the advantage that clothing is displayed with plenty of space between items, allowing you to observe everything like in a museum, without trying to find a needle in a haystack as often happens in fast fashion stores.
Squeak. I kept walking. Another squeak. I stopped. What was that sound? I turned around. Nearby, a sales associate was following behind me, adjusting the items I had touched. Every one of his movements was accompanied by a squeak that pierced the quiet emptiness of the room.
Loewe is the trendiest brand, according to the latest Lyst ranking, yet I was the only one in the room. The emptiness and the squeaking said it all.
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Welcome to this week’s edition of 2Jour Gazette—your curated look at what’s been making waves in fashion and luxury. The week has been rich with events, ranging from one of the most important art fairs, Art Basel in Paris, to Prada’s space venture, the return of the Victoria's Secret show, and the release of a new Patek Philippe watch model, the first in 25 years. Add to that a few major ad campaigns, Reebok’s expansion into the promising supplement market, and another round of top-management changes in several brands.
However, despite these buzzy events, it feels as though the room has fallen silent. Yes, the luxury market seems to be holding its breath in uncertainty. It hit something, unseen before. Not a ground, and not a usual crisis. This current slowdown appears unlike any we’ve seen before.
Fashion CEOs are disheartened and cutting the most obvious costs. Creative directors and marketing specialists are being replaced so frequently that only a job shift journal can keep up with the constant reshuffling. But is cosmetic repair enough to tip the pendulum back in the positive direction? In this edition, I will reflect on the steps—both obvious and less so—that are more structural than cosmetic, and that could help luxury brands regain customer favor.
So, grab your favorite espresso (or perhaps a glass of champagne), settle in, and let’s explore the chic, the influential, and the simply fascinating moments from the past week.
x Marina 2Jour
• LVMH Battles Headwinds Amid Luxury Market Slowdown
• Ferragamo’s Revenues Down 9.8% for 9M 2024
• Adidas Q3 2024 Revenue Surpasses Expectations, Profit Outlook Raised
• Brunello Cucinelli: Stability Amid Waves
• Altuzarra Secures P180 Investment for Growth Expansion
• Lorenzo Serafini Named New Creative Director of Alberta Ferretti
• Tenley Zinke Named Kering Americas VP of Communications
• John Lyttle Resigns as Boohoo CEO Amid Mounting Losses
• Cutting Distractions, Connecting Genius: Moncler and Punkt Unite
• Does It Look Familiar? Patek Philippe Launches New Watch
• Gucci’s Iconic Loafer Returns—But Is the Story Enough?
• Tailored Excellence: Colin Farrell in D&G’s Sartoria Campaign
• Jake Gyllenhaal Stars Again for Ginori 1735 Porcelain
• Cartier Launches Santos de Cartier Ad with Jake Gyllenhaal
Art Basel 2024: Transforming Paris into a Global Art Stage
Art Basel Paris 2024 is underway from October 18-20, transforming Paris into a global hub for contemporary art, with exclusive previews for collectors and VIPs held on October 16-17. This year’s event spreads beyond the traditional art fair format, with 195 galleries from 42 countries showcasing contemporary art not only at the Grand Palais but also across public spaces in Paris. The event turns the city into an expansive art gallery, with iconic locations like the Avenue Winston-Churchill, the Palais-Royal, and the Institut de France featuring public installations by renowned artists such as Yayoi Kusama and Jean Prouvé.
Despite facing global economic pressures such as inflation, high interest rates, and geopolitical uncertainties, Art Basel Paris 2024 continues to be a major attraction for collectors. The 2023 Art Basel and UBS Global Art Market Report revealed that global art sales fell by 4%, from $67.8 billion in 2022 to $65 billion in 2023. While the total sales value declined, the number of art transactions increased by 4%, reaching 39.4 million transactions globally. This growth was largely driven by strength in lower-priced segments of the market, showcasing resilience despite the challenges.
Luxury Brands at Art Basel 2024
Louis Vuitton: As an associate partner of Art Basel 2024 in Paris, Louis Vuitton honors architect Frank Gehry by showcasing his iconic white fish lamp and other works inside the Grand Palais. This collaboration reinforces the brand’s long-standing relationship with Gehry, who designed the Fondation Louis Vuitton, underscoring the fusion of art and architecture that defines the brand's creative vision.
Guerlain became the first official fragrance partner of the fair. The brand celebrated by releasing a special edition of its Œillet Pourpre fragrance from the L’Art & La Matière collection. This limited-edition design, created in collaboration with French artist Julie Beaufils, is available at the Art Basel Shop.
Chanel: In partnership with the Pompidou Centre, Chanel celebrates contemporary Chinese artists through the exhibition "China — A New Generation of Artists." Chanel's contribution includes funding the acquisition of 21 new works, with a focus on female artists, expanding the museum's collection by over 20%. This initiative aligns with Chanel's long-term commitment to promoting women in the arts and building cultural bridges, further supported by its new partnership to create China’s first public library dedicated to contemporary arts.
Miu Miu: At Palais d’Iéna, Miu Miu, official event partner, presents its "Tales & Tellers" project, exploring femininity through a combination of art, fashion, and film. The project exemplifies how luxury brands increasingly engage in cultural storytelling, using art as a medium to convey deeper messages about identity and values.
For luxury brands, taking part in events like Art Basel is about more than just supporting the arts. These brands use art fairs to build a stronger connection with the cultural world and reach high-end consumers who appreciate art. By working with prestigious exhibitions and sponsoring art, they position themselves as leaders in culture, which boosts their reputation and keeps them at the top of the luxury market. In today's world, where unique experiences and personal connections are important, partnering with the art world helps brands offer something more than just products—it gives their customers a link to culture, history, and deeper meaning.
***
I also highly recommend to explore the 2023 report further (here), as it gives insights and metrics that could be used for broader understanding of markets and trends, like:
United States remains the largest art market, commanding 42% of global sales (around $27.2 billion), despite a 10% decline from 2022;
China has emerged as the second-largest market, with art sales growing by 9% to $12.2 billion, surpassing the UK, which saw an 8% decline to $10.9 billion;
This reshuffling highlights the shifting dynamics of the art world in response to changing market conditions
The auction sector was particularly hard-hit, with public auction sales dropping by 7%, while private sales at auction houses saw a slight 2% increase, as consignors sought privacy in a volatile market.
My favorite part is on online vs. offline sales. "Luxury is not supposed to be sold online" pff. I am not a huge fan of predicting statistics, as I prefer analyzing current data and focusing on general, short- or mid-term trend forecasts. The information in the report is perfectly balanced in this regard (I think I might explore it further in future editions, stay tuned).
In 2023, the online-only fine art auction market continued to see a strong preference for lower-priced transactions, while high-end sales remained predominantly offline. Here’s a breakdown:
Growth of Online Sales:
Online sales grew by 7% in 2023, now accounting for 23% of total sales in the art market. This rise in digital transactions reflects a broader trend toward online engagement, particularly among younger collectors and emerging markets.
Price Distribution in Online Auctions:
58% of the value in online-only auctions came from works priced below $50,000.
Over 95% of all online-only transactions were for pieces under $50,000.
85% of the total value in online auctions was from works priced below $250,000.
High-Priced Transactions:
Although some high-priced works sold online, the most expensive pieces were still primarily sold offline.
Offline auctions, by contrast, were dominated by high-value pieces, with the $1 million-plus segment driving a significant share of the market.
Victoria’s Secret Show: A Dull Comeback?
15 Oct 2024. The 2024 Victoria’s Secret Fashion Show, held in New York City, marked the brand’s highly anticipated return after a six-year hiatus. This year's show reflected the brand's evolving focus on inclusivity and diversity, featuring also plus-size, and transgender, models—a significant shift from its past image. The event was a blend of fashion, music, and entertainment, with performances by Cher, Lisa and Tyla. Models, including Tyra Banks, Adriana Lima, and Candice Swanepoel returned to the runway, adding flashbacks to the event.
The show emphasized the company’s shift towards a more progressive, inclusive image as part of its broader rebranding efforts. Victoria's Secret has been working to refresh its identity, moving away from its once-controversial focus on narrow beauty standards. This year’s show celebrated empowerment and body positivity, appealing to a broader audience than before.
Beyond the models and entertainment, the event showcased Victoria’s Secret’s latest lingerie collections, blending the brand’s traditional glamour with a more modern, diverse appeal (for some, there wasn’t enough diversity, according to the comments I read).
The 2024 reboot of the Victoria’s Secret Fashion Show is seen as a crucial part of the company’s efforts to regain cultural relevance, attract a wider audience, and reinforce its status as a leading lingerie brand. The success of this event will likely shape how Victoria’s Secret continues to evolve in the rapidly changing fashion industry.
I watched the show, and it felt raw. From the runway to the overall vibe (remember how the models used to light up the stage?)—it felt like a rehearsal. The same goes for the outfits—they lacked the usual glamour and celebration.
Either Victoria’s Secret was being overly cautious, or the budget was limited.
The scandal involving Victoria's Secret and its former Chief Marketing Officer, Ed Razek, erupted in 2018 after he made controversial comments during an interview. Razek expressed opposition to including plus-size and transgender models in the brand's annual fashion show, arguing that it didn’t fit the show’s "fantasy" image. These remarks sparked widespread backlash, as they were seen as out of touch with the growing demand for diversity and inclusion in the fashion industry. The controversy contributed to the brand’s declining reputation and led to significant changes in leadership and marketing strategy.
Following Ed Razek’s controversial remarks in 2018, additional allegations of misogyny, a toxic work culture, and bullying surfaced within Victoria’s Secret. Reports claimed that Razek, along with other executives, fostered an unhealthy environment for women within the company. Several employees accused Razek of inappropriate behavior, including making demeaning comments toward models. These allegations, coupled with the public's growing dissatisfaction with the brand's outdated portrayal of beauty, led to a significant decline in the company’s reputation and were pivotal in its decision to overhaul its leadership and branding.
Prada Takes Fashion to the Moon: Axiom and Prada Join Forces for Spacesuit Design
16 Oct 2024. At the International Astronautical Congress in Milan, Axiom Space and Prada unveiled their co-developed AxEMU spacesuit, designed for NASA’s Artemis III mission, which aims to return astronauts to the moon. Prada brought its expertise in materials and production processes, working closely with Axiom engineers to design the suit's outer layer, focusing on high-performance materials and innovative sewing techniques. The suit, engineered to withstand extreme lunar conditions, enhances astronaut mobility, flexibility, and comfort while offering improved protection from the moon's harsh environment.
The AxEMU features advanced technologies, including specialized gloves and coatings on the helmet visor to optimize visibility. It is designed to withstand the frigid temperatures at the lunar south pole and ensure astronauts' safety during extended spacewalks. The suit also includes life support systems, onboard diagnostics, and a regenerable carbon dioxide scrubbing system. While the suit doesn't have the Prada logo, it features signature red lines that reference Prada Linea Rossa.
Prada Linea Rossa (formerly known as Prada Sport) is a collection under the Prada brand that combines luxury fashion with high-performance, sports-inspired designs. Launched in the late 1990s, the collection is known for its use of technical materials, minimalist aesthetics, and functional pieces designed for active and urban lifestyles. The signature feature of this line is the red stripe ("linea rossa") logo, symbolizing speed, modernity, and innovation, blending style with practicality in everyday wear and sports gear.
This collaboration symbolizes the fusion of fashion and space technology, marking a significant leap in cross-industry partnerships. Prada's involvement highlights the luxury brand's commitment to innovation beyond traditional fashion. This new era of space exploration, driven by commercial ventures and collaborations, aims to push the boundaries of both industries.
I must say, wow, this is the most significant marketing event and example of audience expansion in fashion I've come across recently. With the growing interest in further space exploration, such a collaboration marks a sure win for the brand.
Rumor has it that the suit will be worn by a woman, creating a strong marketing narrative focused on breaking barriers and promoting gender equality. By highlighting female empowerment in such a major collaboration, Prada may position itself as more than just a luxury brand, but one that supports social progress. This story is not just about the technology behind the suit; it connects with today's cultural movements, like gender equality, and makes Prada more appealing to socially conscious consumers. From a marketing perspective, this may help Prada stay relevant, reach new audiences, and show that it's a brand focused on both innovation and positive change.
The AxEMU will undergo further testing, including underwater trials at NASA's facilities, before entering its final development phase in 2025 (source).
Axiom Space was founded in 2016 by Michael Suffredini and Kam Ghaffarian. The company focuses on developing the world’s first commercial space station and providing human spaceflight services. Since its inception, Axiom Space has aimed to expand the commercial space industry by creating innovative partnerships and leveraging expertise from various sectors
Reebok Ventures into the Supplement Field
15 Oct 2024. Reebok has officially entered the supplement market by launching its Reebok Performance System in partnership with Generation Joy, the parent company of Shore Magic.
The range includes Reenergize ($40), a pre-workout with creatine; Reecover ($38), a hydration formula with electrolytes; and Reebuild ($45), a whey protein and collagen powder, available in flavors like Rocket Moon Pop and Watermelon Crush. This launch aims to simplify sports nutrition with multipurpose supplements designed for a broad range of consumers from athletes tofitness enthusiasts. The collection will be available online and at select retailers in the U.S. and Canada.
The global sports nutrition market continues to expand rapidly, projected to reach $48.58 billion by 2024, with an annual growth rate of around 7.5% through 2030, driven by rising health consciousness and demand for performance-enhancing supplements (source).
Giorgio Armani Debuts Spring 2025 in New York
17 Oct 2024. Giorgio Armani's Spring 2025 show took place in New York City at the Park Avenue Armory, coinciding with the grand opening of Armani’s new Madison Avenue complex. This event marked a significant departure from Armani's traditional Milan shows, as he had showcased his collections in Milan for the past 11 years before making the shift to New York.
The 650 guests in attendance included fashion insiders, celebrities, and industry figures, witnessing Armani's collection titled "In Viaggio" (On a Journey). The show featured the designer's signature sleek tailoring with a travel theme, using a palette of beiges, greys, and blues. Accessories like woven belts, boots, and silk jackets complemented the clothing, maintaining Armani's classic style.
The move to New York underscores Armani's strong connection to the city, as he described it as a place that deeply shaped his creative imagination. The event further highlighted his expansion in the city, with the opening of the new building, which houses residential units, boutiques, and a restaurant.
2024 Nobel Prize Honors Study on How Institutions Shape Economies
You might wonder what this has to do with luxury and fashion, but there’s no mistake in this update. Like any other venture involving buying, selling, and market trends, luxury and fashion are deeply influenced by broader economic conditions. Understanding how economies function is essential to organizing these processes more effectively.
The 2024 Nobel Prize in Economic Sciences was awarded to Daron Acemoglu, Simon Johnson, and James Robinson for their research on how institutions influence the wealth and development of nations.
Their work delves into the critical role that political and economic institutions play in shaping long-term economic outcomes. One of their key contributions is the understanding of how inclusive institutions, which provide equal access to opportunities and uphold the rule of law, foster economic growth. Conversely, extractive institutions, which are designed to benefit a small elite at the expense of the broader population, hinder development and lead to long-term stagnation.
Their research offers insights into why some nations thrive while others remain impoverished, emphasizing that political power and the nature of institutions are central to economic development. This work builds on their influential book, Why Nations Fail, where they explore historical examples of countries that have shifted between inclusive and extractive institutions. You might have read it before, as it was published back in 2012 (I haven't finished reading mine yet, and this seems like a good reminder:-).
The trio's research is vital in explaining why some countries struggle with persistent inequality and underdevelopment, and it has broad implications for policy-making, highlighting the importance of building and maintaining inclusive institutions to promote sustainable growth.
PROFIT WATCH: TRACKING FINANCIAL WINS AND LOSSES
LVMH Battles Headwinds Amid Luxury Market Slowdown
15 Oct 2024. LVMH reported total revenues of €60.8 billion for the first nine months of 2024. However, the company saw a decline in the third quarter, with a 3% drop in organic growth, primarily driven by weaker demand in key markets like China and Japan. This marked the first significant quarterly revenue decline since the pandemic.
Fashion and Leather Goods division, which includes major brands like Louis Vuitton and Dior—widely rumored to be the largest revenue drivers—alongside smaller brands such as Celine, Fendi, Loewe, and Rimowa, saw a 5% decline in Q3 2024. This indicates some softness in the high-end luxury segment, although the division remains a substantial contributor to overall revenues. While the Group does not provide a detailed breakdown by brand, the Group's CFO, Jean-Jacques Guiony, mentioned during the Q&A session that Louis Vuitton sales in the third quarter were "a little bit above the average" for the Fashion and Leather Goods division, while Dior was "a little bit below."
Meanwhile, Wines & Spirits division faced an 8% decline in organic revenue due to the "normalization of demand post-COVID" and weakened performance in China, particularly for cognac. On the other hand, Japan performed strongly, with double-digit growth in the first nine months of 2024, driven by local demand and tourist spending.
Jewelry & Watches division, which includes brands like Bulgari and Tiffany & Co., experienced a 3% decline in Q3 2024;
Selective Retailing division, which includes Sephora and DFS, saw +2% growth in Q3 2024. Despite the overall economic slowdown, Sephora performed well, driven by the expansion of its beauty offerings and global demand, particularly in Europe and the U.S;
Perfumes & Cosmetics division posted +3% growth in the third quarter.
The biggest slowdown in revenue by geographical area was seen in Asia, with a 3% decline in the first nine months of 2024 compared to the same period in 2023. Other regions remained relatively stable, following previous trends.
Other revenue trends over the bast 9m by region:
Japan showed strong momentum, with a significant 57% growth in Q1, moderating to 20% in Q3. Overall, Japan posted 36% growth for the first nine months of 2024;
Asia (excluding Japan) exhibited a sharp decline, with Q3 dropping 12%. The region had a negative growth of 16% for the first nine months of 2024, reflecting weaker demand on luxury's one of the main markets;
The US market remained relatively flat, showing 0% growth in Q3 2024, and a modest 1% increase over the first nine months, indicating cautious consumer sentiment;
Europe remained stable with a small increase of 2% in Q3, contributing to 3% overall growth for the first nine months of the year.
Find the full presentation here.
The next day, the stock market reacted with one of the sharpest share price declines of the year. It eventually almost bounced back by the end of the week. LVMH's market capitalization showed a 13.8% decline in 2024 and now stands at €311.0 billion.
Ferragamo’s Revenues Down 9.8% for 9M of 2024
15 Oct 2024. Ferragamo's Board of Directors, chaired by Leonardo Ferragamo, reviewed the company's Q3 2024 performance.
Ferragamo’s Q3 2024 revenues were €221 million, down 7.2% at constant exchange rates and 9.6% at current exchange rates compared to Q3 2023. For the nine-month period, total revenues reached €744 million, down 9.8% at constant exchange rates and 11.9% at current exchange rates. The drop was primarily due to weak performance in the Asia Pacific market and wholesale channels.
Total Revenues:
Q3 2024: €221 million (down 7.2% at constant rates, 9.6% at current rates)
9M 2024: €744 million (down 9.8% at constant rates, 11.9% at current rates)
By channel
Direct-to-Consumer:
Q3: Down 5.7% at constant rates, 7.5% at current rates
9M: Down 5.6% at constant rates, 7.9% at current rates
Wholesale:
Q3: Down 12.8% at constant rates, 14.1% at current rates
9M: Down 22.1% at constant rates, 21.0% at current rates
* DTC (Direct to Consumer) channel consists of directly operated stores (DOS) as well as e-commerce platforms of direct to customer online sales.
By geographic area
Q3 2024
EMEA: Up 1.2% at constant rates, 0.6% at current rates
North America: Down 7.9% at constant rates, 7.4% at current rates
Latin America: Up 9.0% at constant rates, down 8.2% at current rates
Asia Pacific: Down 20.5% at constant rates, 20.9% at current rates
Japan: Up 6.7% at constant rates, 3.4% at current rates
9M 2024
EMEA: Down 11.5%
North America: Down 6.4% at constant rates, 6.1% at current rates
Latin America: Down 3.3% at constant rates, 7.3% at current rates
Asia Pacific: Down 16.7% at constant rates, 18.1% at current rates
Japan: Up 3.9% at constant rates, down 5.4% at current rates
Like the majority of premium and luxury brands, Ferragamo has also shown a heavy reliance on leather goods, but footwear generates even more sales for the brand.
Ferragamo's CEO, Marco Gobbetti, highlighted the impact of the challenging macroeconomic environment, particularly in Asia Pacific, where decreasing consumer confidence is the key factor affecting sales. Low traffic has also negatively impacted the secondary and wholesale channels. While these challenges have delayed financial objectives, Gobbetti pointed to positive results in Europe, Japan, and Latin America, particularly in handbags and women's shoes. Additionally, due to these ongoing uncertainties in luxury demand, Ferragamo expects the full-year operating result to be at the lower end of analysts' estimates (source).
Adidas Q3 2024 Revenue Surpasses Expectations, Profit Outlook Raised
15 Oct 2024. Adidas reported better-than-expected results for Q3 2024, with revenues increasing by 10% on a currency-neutral basis, reaching €6.438 billion (up 7% in euro terms). Excluding Yeezy sales, currency-neutral revenues grew by 14%. The company's gross margin improved to 51.3%, up by 2 percentage points. Operating profit increased to €598 million, boosted by €50 million from Yeezy inventory sales.
As a result, Adidas raised its full-year guidance, now expecting a 10% revenue growth and €1.2 billion in operating profit (source).
Brunello Cucinelli: Stability Amid Waves
17 Oct 2024. The Brunello Cucinelli report appeared as a light at the end of the luxury tunnel. The Italian brand, despite the somewhat forgotten trend of quiet luxury—where it once led—surprised not so much by its 12.7% profit growth in 9M 2024 year-on-year with 9M 2023, but by the fact that there was practically no shift in the balance of regions or sales channels.
Just like in the same period of 2023, the key markets for the brand remain Europe (37.0%) and the USA (36.4%), while Asia contributed 26.6% of sales.
62.9% of sales are made through DTC, while wholesale accounts for 37.1%.
And while I believe that Brunello Cucinelli, like Loro Piana and perhaps to a slightly lesser extent Hermès, is not as susceptible to market fluctuations and the overall economic situation as other brands, this stability in the distribution of profit across sales channels and regions speaks to a well-balanced and thoughtful development strategy, including marketing and pricing policies. On one hand, it remains true to the strategic plan, while on the other, it considers current trends.
On one hand, it stays true to its strategic plan, while on the other, it adapts to current trends. For example, new fragrances from the brand will hit the market at the end of 2024—luxury perfumes now serve as a reimagined 'lipstick effect,' satisfying the appetites of still-existing aspirational customers. And why not? It’s an excellent addition to the purchases of the brand's key clients, the highly valued high spenders. Yes, I don’t have exact figures, but I’m sure of this—just look at the design and prices to understand that Brunello Cucinelli isn’t striving to be buzzy; it’s about quality and the expected, predictable design, for which the brand has a loyal clientele. It would be interesting to see a breakdown of profit between specific categories like clothing, footwear, accessories, and lifestyle products—however, the brand did not provide such information in its presentation.
See the full revenue presentation here.
BUSINESS TRANSITION BULLETIN: MERGERS, SALES & INVESTMENTS
Altuzarra Secures P180 Investment for Growth Expansion
15 Oct 2024. P180, co-founded by Brendan Hoffman and Christine Hunsicker, has taken a minority stake in Altuzarra. Hoffman, a retail industry veteran, is known for his leadership roles at high-profile companies like Vince and Wolverine Worldwide. Christine Hunsicker is the CEO of CaaStle, a pioneer in clothing rental platforms. Their investment aims to boost Altuzarra’s direct-to-consumer growth, leveraging P180 and CaaStle’s expertise in ecommerce and subscription models. Additionally, Altuzarra is launching a ready-to-wear line for Victoria’s Secret in 2025 as part of his role as their first designer-in-residence (source).
Altuzarra is a luxury women's ready-to-wear and accessories collection, launched by Joseph Altuzarra in 2008.
JOB SHIFT JOURNAL: HIRES, FIRES & TRANSITIONS
Lorenzo Serafini Named New Creative Director of Alberta Ferretti
15 Oct 2024. Aeffe has appointed Lorenzo Serafini as the new Creative Director of the Alberta Ferretti brand, following the retirement of Alberta Ferretti herself. Serafini, who joined Aeffe in 2014 as Creative Director of Philosophy di Lorenzo Serafini, will debut his first collection in February 2025. The Philosophy line will be integrated into the Alberta Ferretti brand starting Fall/Winter 2025, as part of a new strategy to strengthen the brand. Alberta Ferretti’s design consultancy contract will end in December 2024 (source).
Aeffe is an Italian fashion group that specializes in the creation, production, and distribution of high-end women's fashion, footwear, and accessories. The company owns several luxury brands, including Alberta Ferretti, Moschino, and Philosophy di Lorenzo Serafini.
Tenley Zinke Named Kering Americas VP of Communications
16 Oct 2024. Tenley Zinke has been appointed as Vice President of Corporate Communications and Community Engagement at Kering Americas, succeeding Kate Babb Shone. Zinke brings extensive experience in luxury brand communications, having previously led strategic roles at Fendi, Tiffany & Co., and Polo Ralph Lauren, as well as founding her own consultancy, Just Thinking Consulting.
Reporting to Laurent Claquin, Global Chief Brand Officer, and Ewa M. Abrams, President of Kering Americas, Zinke will manage communications and community engagement from her base in New York.
This appointment follows Laurent Claquin’s move in June 2024 from President of Kering Americas to Global Chief Brand Officer.
John Lyttle Resigns as Boohoo CEO Amid Mounting Losses
John Lyttle, the CEO of Boohoo, is stepping down amid the company's growing financial difficulties. Over the past year, Boohoo has faced a 17% drop in sales and losses reaching £160 million. Compounding these issues, the company has an outstanding debt of £325 million, which it has been attempting to refinance. However, some lenders have rejected Boohoo's requests to extend the repayment deadline, adding further pressure on its finances.
Boohoo's stock price has also suffered, reflecting declining investor confidence. The company, which owns several well-known brands including PrettyLittleThing, Nasty Gal, Debenhams, Karen Millen, and Oasis, has been pivoting toward its Debenhams marketplace model to improve profitability. This commission-only, stockless approach has seen some success, but overall revenues continue to struggle due to stiff competition from Shein and Temu, along with inflationary pressures and weakened consumer demand.
In response to these challenges, Boohoo has launched a strategic review aimed at stabilizing its business. The review includes potential asset sales and cost-saving measures, with a target of £125 million in savings. While Lyttle’s departure marks a significant leadership shift, Boohoo has not yet announced his successor. The new CEO will be tasked with steering the company through this turbulent period and finding solutions to its mounting financial problems.
Yes, even fast fashion is not immune to chalenging environment.
THE BUZZ: Marketing & Collab Chronicles
Cutting Distractions, Connecting Genius: Moncler and Punkt Unite
19 Oct 2024. Moncler unveiled its collaboration with Punkt, introducing the Moncler x Punkt. MP02 phone at the City of Genius event in Shanghai. This phone, developed as part of Moncler’s Genius program, is designed to cut through digital noise and enable more focused, intentional communication.
The MP02 phone operates on a customized version of Android and focuses on essential features like messaging, calling, and Wi-Fi connectivity, stripping away other distractions typical of modern smartphones. This minimalist design aligns with Punkt’s philosophy of simplifying technology to help users concentrate on what’s important.
The device was made available to select Moncler Genius co-creators at the event, enabling a private network to foster uninterrupted communication and collaboration among the participants. The collaboration reflects Moncler's approach of merging fashion with technology in a way that encourages creativity and focus.
Punkt, a Swiss company renowned for its minimalist approach to technology, focuses on creating devices that promote more intentional and meaningful use of tech. The MP02, running on a simplified Android system, exemplifies this ethos by offering essential smartphone functions while limiting unnecessary distractions.
Is it just me, or would this collaboration fit better with Stone Island, another brand from the Moncler Group? Dreaming of the moment I can afford the luxury of switching to such a phone, at least during vacations:)
I remembered the old collaboration between Prada and LG. Nowadays, you can relatively easily find the phone on marketplaces.
Does It Look Familiar? Patek Philippe Launches New Watch
17 Oct 2024. Patek Philippe has launched its new Cubitus Collection, marking a significant departure from its traditional designs. This release is the brand’s first new watch line in 25 years and is intended to appeal to an urban and trendy clientele, aiming to counter the ongoing industry downturn.
The Cubitus features distinctively square-shaped cases with rounded corners, offering a bold and sporty design, a departure from Patek Philippe’s traditional round watches like the Nautilus and Calatrava. This collection taps into the growing trend for shaped models and highlights the rising popularity of the sporting luxe category, especially luxury steel watches with integrated bracelets. The collection seeks to expand the brand's audience by appealing to this fashion-forward market.
The release of the Cubitus Collection comes at a time when Swiss watch exports saw a 12.4% decline in September, marking their worst monthly performance so far this year, according to data from the Federation of the Swiss Watch Industry (source).
On the very day of the launch, there was an article in the Financial Times featuring a conversation with Thierry Stern, the president of Patek Philippe (find it here). Here are a few insights:
The Cubitus collection is a bold departure for Patek Philippe, introducing a new shaped, luxury sports watch in a market where 85% of timepieces are round. Stern has wanted to create this line for over 15 years;
Stern sees the current industry downturn as cyclical, returning to more conservative trends after the post-Covid boom, though he notes mid-range watches (priced between SFr5,000 and SFr10,000) are struggling;
The steel model is aimed at buyers aged 30-50 who are ambitious and "on the move," while the platinum Ref 5822P targets older, yet "cool" clients.
Work began four years ago, with the ultra-thin self-winding calibre 240 selected for the Cubitus. Stern and a small team, including his sons, finalized the design after a year of weekly meetings.
Despite the Cubitus launch, Stern emphasizes that Patek Philippe is not moving towards more frequent collections but rather expanding its customer base gradually.
But watch enthusiasts seem confused (I read some comments). At a glance, you could easily mistake the Cubitus for a Santos de Cartier (see further) or even a Casio. My first thought was Casio. However, the price is far from Casio, starting at £35,330.
THE LOUNGE: Campaigns, Lookbooks, Edits
Gucci’s Iconic Loafer Returns—But Is the Story Enough?
Gucci has launched a new campaign titled "THE loafer since 1953," featuring the Horsebit 1953 loafer. The campaign stars actor Pietro Castellitto and is directed by GOOFY STUDIO with photography by Heji Shein. Creative Director Sabato De Sarno and Artistic Director Riccardo Zanola have collaborated on this project, which aims to highlight the contemporary relevance of the loafer style and modern masculinity.
The campaign showcases Castellitto's style, focusing on the loafer's long-standing history and its appeal in today's fashion landscape. The Horsebit loafer has been a signature piece for Gucci since its introduction, and this campaign continues to emphasize its significance in the brand's heritage. However, heritage—and we will discuss that later—is indeed one of the tools to evoke a sense of value in purchasing a luxury item.
In the case of Gucci, I visited the website to explore more. What could make a customer feel connected to something greater than just a pair of shoes designed in 1953 is left unaddressed.
Yes, that's it with the story on the website. Are you captivated?
Yet, this is not just a pair of shoes (my interest is piqued; I want to continue reading!). Here’s what ChatGPT suggested, which could have been included in the narrative:
Gucci Horsebit loafers have a rich history and are one of the brand's most iconic designs. Here's the story behind them:
Origins and Inspiration: The Horsebit loafer was introduced by Gucci in 1953, designed by Aldo Gucci, the son of founder Guccio Gucci. The design was inspired by the world of equestrianism, which had long been a theme in Gucci’s collections due to the family’s love for horse riding. The metal horsebit detail, which resembles the bits used to control horses, became the defining feature of the loafer.
Italian Craftsmanship Meets American Style: At the time, loafers were largely casual shoes, but Gucci wanted to create something that bridged the gap between European elegance and American practicality. The result was a leather loafer that combined the comfort of a slip-on shoe with the sophistication of Italian craftsmanship, making it suitable for both formal and casual settings.
Rise in Popularity: The Horsebit loafer gained international attention quickly after its release, especially among celebrities, politicians, and fashion icons. In the 1960s, they became particularly popular in the U.S., partly because John F. Kennedy was often seen wearing them. By the 1970s, they were embraced as a status symbol for both men and women.
Cultural Influence: The Horsebit loafer has been widely recognized as a symbol of luxury and timeless style. In 1985, the shoe became so iconic that it was added to the permanent collection of the Metropolitan Museum of Art in New York. Over the years, it has been reimagined in various materials, colors, and styles, but the signature horsebit detail remains central to its design.
Is a simple pair of shoes now perceived in a different way? Do you want to take a closer look? This is a rhetorical question x
Jake Gyllenhaal Stars Again for Ginori 1735 Porcelain
Jake Gyllenhaal stars in his second campaign for Ginori 1735, the luxury Italian porcelain brand, owned by Kering, following his first appearance in early 2023. In this latest campaign, Gyllenhaal is seen celebrating the craftsmanship behind the Oriente Italiano collection, paying homage to the artisanal techniques at the historic Ginori 1735 manufacturing site in Italy. Shot by Gray Sorrenti, the campaign emphasizes the brand’s blend of heritage and modernity, with Gyllenhaal portraying a deep connection to Italian culture and artistry.
Love the artistic approach of Ginori 1735. I always explore its collections carefully and want to have it one day available at 2Jour-Concierge.com.
Cartier Launches Santos de Cartier Ad with Jake Gyllenhaal
Fruitful time for Jake Gyllenhaal, starring in the second high-profile campaigns: Cartier has launched a new Santos de Cartier campaign featuring actor. The Santos de Cartier watch, known for its distinctive square shape and visible screws, symbolizes Cartier’s pioneering spirit. The campaign highlights the watch's innovative design, blending technical precision with versatility, making it a timeless companion for every moment in life.
Tailored Excellence: Colin Farrell in D&G’s Sartoria Campaign
The new Dolce & Gabbana Sartoria Fall-Winter ‘24 Campaign features award-winning actor Colin Farrell, directed by Gray Sorrenti. The campaign highlights Italian craftsmanship and individuality, showcasing the artistry behind bespoke pieces. It reflects the brand's heritage and commitment to Made in Italy sophistication. This campaign emphasizes the unique tailoring experience offered through their Made to Measure service.
Dolce & Gabbana's Sartoria Made to Measure service offers personalized, bespoke tailoring for men. This service allows clients to create custom garments, including suits, jackets, and formal wear, crafted from a wide range of premium fabrics. Every piece is tailored to the client's exact measurements and style preferences, ensuring a perfect fit and unique design.
Luxury Needs a Plan: Steps To Become Great Again
Confidently stepping into Loewe or any other luxury boutique was a long journey. Since my teenage years, I’ve been captivated by... By what exactly? What is luxury fashion?
Exclusivity – limited availability and reach;
High quality – no loose threads or sloppy seams, high-quality materials, which means durability and attention to detail;
Heritage and craftsmanship – long histories of tradition and expertise;
Status symbol – often applies to aspirational customers, but also to those who seek extra confirmation of belonging to a certain circle.
That all contributes to high pricing, making luxury fashion (including leather goods) an extremely high-margin business. High prices may also be considered a factor in perceiving an item as luxury.
Yes, many years ago (I feel myself old:) I aspired for luxury fashion, collecting Vogue magazines, which were extremely hard-to-buy in my hometown with each magazine costing around 20% of my student scholar. A few years after I started my professional path in politics and doing personal shopping as a side income I could afford my first luxury fashion pieces. But what kind of customer I was? Generally brands and journalists roughly divide luxury customers into two main groups:
High-Net-Worth Individuals (HNWIs): individuals with significant disposable income who are frequent buyers of luxury goods, including high-end fashion, jewelry, watches, and art. They value exclusivity and quality.
Aspirational Customers: individuals who aspire to the luxury lifestyle. They typically save or invest in fewer luxury items. Brand recognition and status symbols often play a significant role in their purchasing decisions.
There is a third group, which is rarely mentioned, but I’ll highlight it separately as I see its potential in the context of the customer base:
Mid-level professionals: individuals who generally aren’t interested in status symbols but earn enough to afford luxury items on a regular basis. The main characteristic for this group isn’t affiliation with a luxury brand, but quality. Yes, I would categorize myself in this group because, transitioning from mass-market brands like Zara to my favorite Saint Laurent jeans, I never chose luxury items to display a brand name in big letters on a t-shirt. On the contrary, I avoided items with logos, but I purchased them for their fit and quality. The idea that you can find the same quality in mass-market is misleading. No. You might get lucky once and find a needle in a haystack, but only by chance. There is a difference, and it’s obvious when you compare practically. It was obvious to me as well.
Now we’ve reached the point where luxury fashion has entered a decline. What could be the reasons? Yes, on the surface, the decline is due to the crisis in China, one of the industry's key markets. Add two wars and the election process in the USA. A volatile mix, isn’t it?
I pulled up the LVMH results from the pandemic period in 2020—fashion & leather profits were down by 5% compared to the previous year. In 2021, that figure surged by 14% compared to 2019 and by 36% compared to 2020. Yet, profits of the the pendulum in the world of luxury for the first nine months of 2024, announced last week have declined by 1%, or 5% in Q3 compared to the same period in 2023.
The current slowdown started a year ago, and it seems that the snowball continues to grow as it rolls downhill. The volume of this snowball isn’t just the current problems, which didn’t appear suddenly. Instead, they have added complexity to the existing structural issues that have been building up, exacerbated by the race for growth percentages over the last few years.
What structural issues are we talking about?
Prices have gotten too high. Yes, we’ve already mentioned that high prices are a defining feature of luxury, and anyone remotely interested in the industry knows it’s an extremely high-margin business. Very high. In other words, luxury isn’t inherently worth that much, but customers were willing to pay more—for status, for the image ingrained in their minds. Luxury is for the select few, for a certain community. At some point—and this was noticed not only by me but also by my acquaintances who had been loyal luxury consumers for years—these prices became too high, nearly doubling, especially in the typically most profitable category: leather goods. However, as leather goods prices rose, so did the prices of other items—like those Saint Laurent jeans or Prada shoes—further deepening the imbalance in profitability among categories within brands, which I’ve mentioned here. Aspirational customers started focusing on fulfilling more basic needs—is fashion important when your stomach is growling, or when you're sitting at home and not going anywhere? Mid-level professionals may have shifted to more affordable brands (have you heard that the queue is now at Polène, not Louis Vuitton?), and UHNWI… Oh, their loyalty isn’t any more stable. Some outgrow the race for trends and switch, say, to art (fashion is there too, as proven by Art Basel), while others find a new favorite brand. In this context, brands like Brunello Cucinelli, Loro Piana, and to a lesser extent Zegna and Hermès are more stable in terms of market fluctuations—they have always targeted a more niche, affluent audience. Although even Hermès, with its well-diversified profit categories (I’ve written about this), may face a challenge if, at some point, people get tired of the lottery game. Forbes posed this question 12 years ago, and nothing has changed, but what if...?
Aggressive marketing. Historically, luxury—which, before the Industrial Revolution, was true tailor-made—was available to a select few. Over time, more and more layers of society gained access to such goods as clothing, good clothing. But the idea that luxury brands continued to push was that luxury was something to aspire to, it wasn’t for everyone. A delicate play on human weaknesses. Today, in the era of social media and the constant search for new sales channels aimed at driving growth in reports, it feels as if it’s not the customer reaching for luxury, but luxury chasing the customer. And now, the same psychological game is working against the brands. The consumer is tired, the consumer doesn’t feel the exclusivity.
Quality – Chanel used to coat their bag logos in gold, but then switched to metallic plating to cut costs. Yes, the brand also cited improved durability and sustainability, but we know luxury brands are masters of storytelling, don’t we? This didn’t stop them from hiking prices, but the customer is disillusioned. On TikTok, there are numerous complaints about the current quality of bags, which have doubled in price over the past five years. Yes, the push for volume has complicated quality control and lowered the standard. Brands with their own production are more stable in this regard, but what about the others?
Public Image – I’ve mentioned that scandals, such as those involving Loro Piana, Dior, and Armani, are just the tip of the iceberg. And while the management of these brands distanced themselves from sensible conflict communication (I didn’t follow Armani's communication strategy as closely), the ripple effect of these scandals casts a shadow on the entire industry. So, does that mean those craftsmanship videos are all in vain? Is the production chain not controlled? Every scandal adds strokes to the overall perception. The consumer is no longer sure if they’re willing to vote with their wallet for brands associated with such stories.
Sounds discouraging, doesn’t it? Luxury is rapidly picking up speed as it rolls downhill. I’m one of those who believe in the timelessness of luxury. The question is about its transformation. For a long time, problems piled up but were ignored due to growing profits. In the end, what worked in the short and mid-term seems to have crumbled in the long-term strategy.
What steps could shed light at the end of the tunnel? Just like with websites, they can be divided into two parts—technical and philosophical.
Technical aspects:
Cut operational costs where possible. The devil is in the details, and while small steps might seem insignificant individually, their cumulative effect can be massive. Since I don’t know all the internal workings, I’ll point out two obvious steps I’ve noticed—return and exchange policies, as seen with Miu Miu and Prada, and free shipping on Dior cosmetics. Consumers don’t expect free shipping on a £30 item, but they may expect it for something priced at £2000. However, Dior offers free shipping on all cosmetics and charges for express delivery on fashion items. Globally, tweaking return/exchange policies and adjusting shipping costs could encourage customers to place new orders.
Revise KPIs—we’ve heard stories about immense pressure on sales associates at the Tiffany flagship store in New York. I feel that pressure everywhere—it sometimes manifests as overly pushy service and attempts to increase the transaction value, rather than listening to the customer. Other times, it’s a quick top-to-bottom, bottom-to-top glance to gauge one’s spending potential. A simple example: recently on 2Jour Concierge, we completed a relatively small order for a design company on another continent. To close the deal, we answered every single question for three months. Will this client return? I believe they’ll certainly remember the service. Of course, sales volume is important, but depending on the specifics of the boutique—such as location—it’s essential to focus on increasing repeat customer orders, which indicates loyalty building. I mentioned this in my story about the Gucci boutique
Consider client interests in service. This is especially applicable to different audiences of men and women. While women tend to value an emotional connection, men often prefer a simple and clear service with VIP perks like personalized communication activities. The same considerations should apply when building e-commerce—men and women have different triggers that drive them to purchase. For women, I created 2Jour Stylist with digital lookbooks, while for men, time-saving is the key factor ( I once wrote on an example who sells shirt better online here and how Brunello Cucinelli updates)
Develop e-commerce and omnichannel. I remember during a summer Q&A session, it was mentioned that e-commerce was not a priority for LVMH. Well, I see that has now changed. It still isn’t the top priority—and that’s how it should be—but it is becoming part of the process, and the group is actively working on developing its online presence (though it hasn’t been perfect yet). e-Commerce includes all the aspects to give the instrumens for customer to place the order, including sizing information. When it comes to omnichannel, we could learn from Gucci, but also consider the huge advantage of being a luxury group with multiple brands under one umbrella. This gives the opportunity to retain customer interest within the group by establishing strong connections with the customer
Using small opportunities to immerse customers in heritage and storytelling. I mentioned the Gucci loafer story on purpose—where the story could have been told, the chain was broken in the middle of the process. As a customer, I see a significant gap—brands invest in visible marketing but overlook the finer details
Catalogs – I’ve written a few publications on them, and while they hold huge potential and are low cost, they aren’t being effectively incorporated into client communication
Simple things, you may say. But this simple things make a significant gap in current service - I can say for sure.
Now moving to the philosophical.
Sales. Doesn't sound luxurious? Yes, it may seem too down-to-earth. But reintroducing sales after 5-6 years could not only help move remaining stock at the end of the season but also save on destruction costs, which are quite expensive. It would also attract additional buyers and increase engagement. The key is clear timelines, limited access, and using simple marketing tools like email subscriptions.
Reviewing pricing policy on supporting categories. In fashion, for most luxury brands, ready-to-wear (RTW) serves as a supporting category. I once wrote about how Saint Laurent might lose out with higher price tags, using a jumpsuit as an example, but the problem is more structural. Focusing on a single category (usually bags) makes a brand highly dependent and vulnerable to any fluctuations in purchasing power and consumer interest. Diversifying the product range makes a brand more resilient. Moreover current approach cuts away mid-level professionals.
Create scarcity. Most brands currently present six collections a year. This number could easily be reduced to four by removing one haute couture and one mid-season collection. Interest can be sustained with special capsule collections, not collaborations—there are too many of those now. This balance would create a hunger for more.
Stay innovative. There are still plenty of gaps in the market where luxury could venture, whether through unique products with high potential or full product lines. Nothing new here—curiosity, market research, and analyzing competitors are key to staying ahead of the curve.
Monitoring and addressing to controversies. Scandals paint the boldest strokes on the portrait of a brand and the industry as a whole.
Only those who are flexible and ready to change will prosper. And here I'm sure LVMH will find the way. What are your bets?
Stay tuned for the next week edition x
